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File Number: 20-326 <br />Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate <br />documents to increase the supply of affordable housing. The Act establishes the Permanent <br />Local Housing Allocation (PLHA) program administered by the California Department of Housing <br />and Community Development (HCD). The PLHA provides a permanent source of funding to cities <br />and counties to help meet affordable housing needs by increasing the supply of affordable <br />housing units. <br />Under the PLHA program, funding is provided through formula grants to entitlement jurisdictions <br />such as San Leandro based on the formula prescribed under federal law for the Community <br />Development Block Grant (CDBG) program over a five-year funding period. The City of San <br />Leandro is an entitlement jurisdiction and is eligible to receive an estimated $2.1 million, or <br />approximately $350,000 annually, over the five-year funding period. It is important to note that this <br />is only an estimate -- annual PLHA amounts are subject to change. <br />Analysis <br />The State requires entitlement jurisdictions to use PLHA program funds to increase the supply of <br />affordable housing. In order to receive PLHA program funds, the City is required to submit a <br />PLHA Five-Year Plan (“Five-Year Plan”) that has been reviewed and adopted by a resolution of <br />the City Council. Additionally, the City Council must adopt a resolution authorizing the application <br />to the CA HCD PLHA program. <br />The Five-Year Plan is based on Section 302(c)(4) of the CA HCD Guidelines issued for the <br />program in October 2019 and that are posted on the HCD website <br />(<https://www.hcd.ca.gov/grants-funding/active-funding/docs/PLHA-Final-Guidelines-11-19.pdf>). The <br />Five-Year Plan requires that the City provide in detail the manner in which allocated funds will be <br />used. The Five-Year Plan is Attachment A to this Staff Report. <br />Summary of the Five-Year Plan (including an Update on City’s Share of Alameda County <br />A-1 Bond Funding) <br />Staff recommends the City establish a five year program to use PLHA funds for the <br />predevelopment, development, acquisition, rehabilitation, and/or preservation of multi-family, <br />residential live-work, and rental housing that is affordable to Extremely low-, Very low-, Low-, or <br />Moderate-income households, including the necessary operating subsidies. The City will allocate <br />PLHA funds to multi-family rental housing either for new developments or preservation of existing <br />ones. For preservation projects, the City will prioritize existing, unregulated affordable housing or <br />regulated affordable housing developments with expiring regulatory agreements (i.e. properties <br />that are at-risk of being lost from the affordable housing supply). These eligible activities advance <br />the City’s General Plan Housing Element’s goals and objectives and the 2020-2024 Five Year <br />Consolidated HUD Plan to increase the supply of affordable rental housing options including <br />senior housing and supportive housing. <br />In Fall/Winter 2020, the Housing Division plans to solicit a Request for Qualifications <br />(RFQ) for qualified non-profit affordable housing developers to use PLHA and other <br />available City affordable housing funds such as the City Housing Trust Fund, federal <br />HOME funds, and 2016 Alameda County General Obligation Bond Measure A-1 Housing <br />Page 2 City of San Leandro Printed on 7/15/2020 <br />30