TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute the Permanent Local Housing Allocation Program Application, Standard Agreement, and any documents and subsequent amendments or modifications thereto, with the California Department of Housing and Community Development, to accept and expend Permanent Local Housing Allocation Program grant funds in the amount of $17,560,704, over a five-year period. (Citywide)
DISCUSSION
In September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate 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 (HCD). The PLHA provides a permanent source of funding to cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing units. HCD released its first Notice of Funding Availability for these funds on February 26, 2020.
Under the PLHA, funding is provided through formula grants to entitlement jurisdictions based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a five-year funding period, as well as through a competitive grant program to non-entitlement jurisdictions. The City of Long Beach (City) is an entitlement jurisdiction, and is eligible to receive an estimated $17,560,704, or approximately $3 million annually, over the five-year funding period. It is important to note that this is only an estimate, since annual PLHA amounts are subject to change. This is because funding for the PLHA is generated through a fee on real estate transactions, which may fluctuate from year to year. It is estimated that the City will receive first-year funds of approximately $2,926,784 in October 2020 (FY 21).
The State requires e...
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