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File Number: 22-536 documents to increase the supply of affordable housing. The Act establishes the Permanent Local Housing Allocation (PLHA) program administered by the California Department of Housing and Community Development (CA HCD). The PLHA provides a permanent source of funding to cities and counties to help meet affordable housing needs by increasing the supply of affordable housing units. Under the PLHA program, funding is provided through formula grants to entitlement jurisdictions such as San Leandro based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a five-year funding period. The City of San Leandro applied to and received its 2019 allocation (Year 1 of the 5-year period) in the amount of $349,960 and committed the funds to the 15101 Washington Avenue affordable housing development that will construct 72 affordable rental housing units, including over 20 permanent supportive housing units for unhoused individuals. CA HCD PLHA Program thresholds require the City have a Housing Element certified by CA HCD and that the City submit the Annual Progress Report on Housing Element activities (the City’s last APR was submitted for calendar year 2021). Additionally, the City adopted Resolution No. 2020-087 on July 20, 2020 for the PLHA Five-Year Plan (“Five-Year Plan”) after public review and a public hearing. Analysis The State requires entitlement jurisdictions to use PLHA program funds to increase the supply of affordable housing. The City’s PLHA Five-Year Plan was based on guidance provided in Section 302(c)(4) of CA HCD Guidelines issued for the PLHA program in October 2019 and that are posted on the HCD website (https://www.hcd.ca.gov/permanent-local-housing-allocation). The Five-Year Plan is posted at the following location on the City’s website (https://www.sanleandro.org/303/State-Plans-Reports). The City of San Leandro is a PLHA entitlement jurisdiction, and the Resolution attached to this staff report, if adopted, will allow the City to receive its 2020 and 2021 allocations for a total of $1,142,542. CA HCD will enter into a Standard Agreement with the City for this grant funding. Once a recipient for these funds is selected, the City will submit a request for disbursement. The Five-Year Plan established a program to use PLHA funds for predevelopment, development, acquisition, rehabilitation, and/or preservation of multi-family, residential live-work, and rental housing that is affordable to Extremely low-, Very low-, Low-, or Moderate-income households, including the necessary operating subsidies. The City proposes to allocate the 2020 and 2021 PLHA funds for the acquisition and rehabilitation costs associated with the purchase of the Nimitz Motel located at 555 Lewelling Blvd. The proposed plan for the first five years after acquisition is to operate it as a drop-in navigation center and overnight shelter for San Leandro residents experiencing homelessness. After five years, the plan is to transition the property into permanent supportive housing. Current Agency Policies ·FY 2020-2024 Consolidated Plan submitted to the Department of Housing and Urban Page 2 City of San Leandro Printed on 9/28/2022