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Resolution No. 2021-045RESOLUTION NO. 2021-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE SUBMITTAL OF A PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROGRAM APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AND ADOPTING THE PLHA PLAN FOR THE PERMANENT LOCAL HOUSING PROGRAM SECTION 1. Recitals. A. On December 8, 2021. the Vernon Housing Commission voted to recommend the City Council approve and authorize the submittal of a Permanent Local Housing Allocation (PHLA) Program application to the California Department of Housing and Community Development. B. The State of California Department of Housing and Community Development (HCD) is authorized to provide up to $304 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code Section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)). C. HCD issued a Notice of Funding Availability (NOFA) dated May 3, 2021, under the PLHA. D. The City of Vernon (City) is an eligible local government that intends to apply for program funds to administer one or more eligible activities. E. HCD may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement, and other contracts between HCD and PLHA grant recipients. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 3. If the City receives a grant of PLHA funds for HCD pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, and regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts the City may have with HCD. SECTION 4. The City Council hereby authorizes and directs the City to apply for      Resolution No. 2021-45 Page 2 of 3 _______________________ a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix C of the current NOFA. SECTION 5. The City hereby agrees to use the PLHA funds for eligible activities as approved by HCD and in accordance with all Program requirements, Guidelines, other rules, and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the City and HCD. SECTION 6. In accordance Section 302(c)(4) of the Guidelines, the City Council hereby adopts the City’s PLHA Plan for the 2019 -2023 Allocations and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines. SECTION 7. The City shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB2 Guidelines published by HCD. SECTION 8. The City Council hereby authorizes the Director of Public Works to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modification thereto, as well as any other documents which are related to the Program to the PLHA grant awarded to the City, on behalf of, the City of Vernon and the City Clerk is hereby authorized to attest thereto, as HCD may deem appropriate. SECTION 9. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED AND ADOPTED this 15th day of December, 2021. _____________________________ MELISSA YBARRA, Mayor ATTEST: LISA POPE, City Clerk (seal) APPROVED AS TO FORM: ZAYNAH N. MOUSSA, Interim City Attorney      Resolution No. 2021-45 Page 3 of 3 _______________________ I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2021-45 was passed and adopted by the City Council of the City of Vernon at the Special meeting on December 15, 2021 by the following vote: AYES: 4 Council Members: Lopez, Merlo, Davis, Ybarra NOES: 0 ABSENT: 1 Council Member: Larios ABSTAIN: 0 ________________________________ LISA POPE, City Clerk (seal)      City Council Agenda Item Report Submitted by: Daniel Wall Submitting Department: Public Works Meeting Date: December 15, 2021 SUBJECT Permanent Local Housing Allocation Application to the Department of Housing and Community Development Recommendation: Adopt Resolution No. 2021-45 approving and authorizing the submittal of a Permanent Local Housing Allocation (PHLA) Program application to the California Department of Housing and Community Development and adopting the PLHA plan for the Permanent Local Housing Program. Background: On May 3, 2021, the Department of Housing and Community Development (HCD) released the Permanent Local Housing Allocation (PLHA) Program Entitlement and Non-Entitlement Formula Component Notice of Funding Availability (NOFA). Under this formula, the City of Vernon’s funding allocation (FA) is $392,000 of the total $304 million available to local jurisdictions (Applicants). The PLHA program was established to assist local governments fund housing-related projects and programs to address the unmet housing needs in their communities. The application is due December 31, 2021. The Vernon Housing Commission at its December 8, 2021 meeting voted to recommend the City Council approve and authorize the submittal of a Permanent Local Housing Allocation (PHLA) Program application to the California Department of Housing and Community Development. Eligible Activities HCD has identified a wide range of activities eligible under this program and requests that the applicant provide a plan (Plan) outlining their intended eligible activities. 1. Predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing; 2. Predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, which includes accessory dwelling units (ADUs); 3. Matching funds to be placed local or regional housing trust funds; 4. Matching funds for the Housing Asset Fund; 5. Capitalized reserves for services connected to the preservation and creation of new permanent supportive housing; 6. Assisting person who are experiencing or at risk of homelessness via Rapid Rehousing, rental assistance, street outreach, and supportive services; 7. Accessibility modifications for lower-income owner-occupied housing; 8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments; 9. Homeownership opportunities (I.e. down payment assistance); and 10. Fiscal incentives in the form of a grant or low-interest loan If awarded, the City plans to use this funding towards homeownership opportunities including, but not limited to, a down payment assistance program. Threshold Requirements HCD communicated that this is a low-barrier funding opportunity. As such, Applicants will generally receive their funding allocations so as long as they submit a complete application that meets threshold requirements. Applicants must have submitted their updated Housing Element by the application deadline and have subsequently determined to follow state Housing Element law. Applicants must also submit to HCD the Annual Progress Report (APR). The completed application must include authorization from the governing body (via Resolution) to submit an application. In addition to the Plan detailing how allocated funds will be used for eligible activities, a description of the methods by which the applicant will prioritize investments that will increase housing stock for households with an income at or below 60% area median income (AMI) is also required. The Plan should also demonstrate consistency with the applicant’s Housing Element. The Plan shall be in effect for five (5) years. Plan years are based on the year during which the funds were accrued by the state (2019-2023). After Applicants have been awarded their first year FA, they must demonstrate all threshold requirements continue to be met in subsequent years. HCD approval will be required for any amendments during the term. The City of Vernon has a funding allocation under this grant and can adequately demonstrate its ability to undergo projects that are considered eligible activities. If awarded, the City of Vernon plans to use this funding towards homeownership opportunities. Next steps include deliberating with necessary stakeholders to design a program to provide homeownership opportunities. Resolution No. 2021-45 will approve and authorize the Director of Public Works to apply for PLHA funding and, if awarded, will allow the Director to enter into, execute, and deliver a Standard Agreement with the State of California and any and all other documents required to evidence and secure PLHA Program funds. Pursuant to the PLHA Program Final Guidelines Section 302 (4)(D), on November 25, 2021, the public hearing notice was posted at City Hall and published in the Los Angeles Wave (Huntington Park Bulletin) (Attachment 1). Fiscal Impact: There is no fiscal impact associated with this report. If the City's PLHA application is accepted, Vernon will be awarded a funding allocation of $392,000. Attachments: 1. Resolution No. 2021-45 2. PLHA - Notice of Public Hearing 3. Appendix C of PLHA NOFA 4. PLHA PLAN 5. PLHA Program Application City of Vernon NOTICE OF CITY COUNCIL PUBLIC HEARING The City Council of the City of Vernon will conduct a public hearing, which you may attend, at Vernon City Hall, City Council Chamber, 4305 Santa Fe Avenue, Vernon, CA 90058, on Tuesday, December 7, 2021,at 9:00 a.m.(or as soon thereafter as the matter can be heard), to: Consider adoption of a resolution approving and authorizing the submittal of a Permanent Local Housing Allocation Program (PLHA) application to the California Department of Housing and Community Development and adopting the PLHA Plan for the Permanent Local Housing Program. The proposed resolution will be available for public review on the City’s website once the agenda for the meeting is posted or from the City Clerk at CityClerk@ci.vernon.ca.us or 323-583-8811, ext. 546. Please send your comments or questions to: Daniel Wall, Director of Public Works City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 (323) 583-8811 Ext. 305 Email: dwall@ci.vernon.ca.us If you challenge adoption of the proposed resolution or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323)583-8811 ext. 546. The hearing may be continued, adjourned, or cancelled and rescheduled to a stated time and place without further notice of a public hearing. __________________________________ Lisa Pope, City Clerk Posted: November 22, 2021 Publish:November 25,2021 4305 Santa Fe Avenue Vernon, CA 90058 (323) 583-8811 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Appendix C Estimate of Five-Year PLHA Allocation for Entitlement and Non-Entitlement Local government Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Alameda $3,352,590 Alpine County $408,390 Alhambra $2,793,768 Alturas $475,835 Aliso Viejo $715,062 Amador City $395,168 Anaheim $12,931,710 Amador County $805,115 Antioch $2,365,410 American Canyon $704,612 Apple Valley $1,725,366 Anderson $622,622 Bakersfield $10,385,412 Angels $487,737 Baldwin Park $2,929,068 Arcata $1,056,372 Bellflower $3,081,744 Artesia $814,372 Berkeley $7,761,504 Arvin $831,563 Buena Park $2,215,452 Atwater $949,257 Burbank $2,863,092 Auburn $719,158 Camarillo $812,124 Avenal $627,912 Carlsbad $1,635,492 Benicia $848,754 Carson $2,488,380 Biggs $424,261 Cathedral City $1,699,338 Bishop $502,283 Cerritos $655,278 Blue Lake $409,715 Chico $2,342,088 Brawley $906,940 Chino $1,496,190 Butte County $2,000,572 Chino Hills $1,063,710 Calaveras County $1,238,865 Chula Vista $6,356,898 Calexico $1,222,996 Citrus Heights $1,876,554 Calimesa $532,699 Clovis City $2,193,654 Calipatria $462,611 Compton $4,618,320 Calistoga $511,540 Concord $2,932,710 Capitola $630,557 Corona $3,492,018 Carmel-by-the-Sea $491,704 Costa Mesa $3,171,486 Chowchilla $662,295 Cupertino City $993,060 Clearlake $875,203 Daly City $3,070,926 Coalinga $618,655 Davis $1,817,544 Colfax $432,196 Delano City $1,950,744 Colusa $515,507 Downey $3,121,674 Colusa County $500,961 El Cajon $3,872,292 Corcoran $683,453 El Centro $1,475,988 Corning $555,180 Elk Grove $2,638,722 Crescent City $485,092 El Monte $5,083,752 Del Norte County $844,787 21 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Encinitas $936,264 Dinuba $889,749 Escondido $5,057,466 Dixon $692,710 Fairfield $2,345,460 Dorris $399,135 Fontana $5,886,732 Dos Palos $496,994 Fountain Valley $867,648 Dunsmuir $432,196 Fremont $3,846,960 El Centro $1,297,051 Fresno $20,445,618 El Dorado County $2,879,974 Fullerton $4,130,712 Etna $403,103 Gardena $1,979,262 Eureka $1,125,138 Garden Grove $5,966,058 Exeter $586,917 Gilroy City $1,465,554 Farmersville $589,562 Glendale $5,202,150 Ferndale $426,906 Glendora City $781,548 Firebaugh $572,371 Goleta $564,090 Fort Bragg $641,136 Hanford $1,772,808 Fort Jones $415,004 Hawthorne $3,676,914 Fortuna $651,715 Hayward $3,910,410 Fowler $486,414 Hemet $2,415,216 Glenn County $641,136 Hesperia $3,034,662 Grass Valley $813,049 Huntington Beach $3,290,970 Greenfield $839,497 Huntington Park $3,910,068 Gridley $555,180 Indio City $2,735,772 Grover Beach $727,093 Inglewood $4,414,656 Guadalupe $606,754 Irvine $4,547,862 Gustine $441,452 Laguna Niguel $920,484 Hidden Hills $428,228 La Habra $2,333,202 Hollister $1,081,498 Lake Forest $1,326,420 Holtville $495,671 Lake Elsinore $1,491,162 Humboldt County $2,066,693 Lakewood $1,625,082 Huron $597,497 La Mesa $1,132,854 Imperial $548,568 Lancaster $4,169,130 Imperial County $1,043,148 Livermore $1,251,240 Indian Wells $532,699 Lodi $2,017,590 Industry $393,581 Lompoc $1,362,162 Inyo County $622,622 Long Beach $17,560,704 Ione $452,032 Los Angeles $157,317,438 Jackson $524,764 Lynwood $3,788,322 King City $805,115 Madera $2,533,914 Kings County $980,995 Menifee $1,509,624 Lake County $1,450,450 Merced $3,112,314 Lakeport $475,835 Milpitas City $1,431,570 Lassen County $612,043 Mission Viejo $1,240,098 Lemoore $871,235 22 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Modesto $5,818,482 Lincoln $1,219,029 Montebello $1,900,548 Lindsay $703,289 Monterey $698,514 Live Oak $537,988 Monterey Park $1,913,226 Livingston $653,038 Moreno Valley $6,178,854 Loomis $490,382 Mountain View $1,539,306 Los Banos $1,129,105 Napa City $1,909,260 Loyalton $405,747 National City $2,359,146 Madera County $1,643,522 Newport Beach $1,017,678 Mammoth Lakes $490,382 Norwalk $3,556,572 Maricopa $400,458 Oakland $22,226,850 Marina $945,290 Oceanside $3,894,906 Mariposa County $770,732 Ontario $5,520,108 Marysville $662,295 Orange $3,644,898 McFarland $676,841 Oxnard $6,950,574 Mendocino County $2,099,753 Palmdale $4,674,384 Merced County $1,865,687 Palm Desert $1,027,836 Modoc County $458,644 Palm Springs $1,153,422 Mono County $462,611 Palo Alto $1,388,976 Montague $412,359 Paradise $561,576 Mount Shasta $539,311 Paramount City $2,629,182 Napa County $859,334 Pasadena $5,616,456 Nevada City $473,190 Perris City $2,799,192 Nevada County $1,837,916 Petaluma $1,106,142 Orange Cove $608,076 Pico Rivera $2,033,838 Orland $555,180 Pittsburg $1,906,098 Oroville $822,306 Placentia $1,288,644 Pacific Grove $712,546 Pleasanton City $906,534 Palos Verdes Estates $580,305 Pomona $6,410,670 Parlier $801,148 Porterville $2,056,524 Pismo Beach $597,497 Rancho Cordova City $1,712,196 Placer County $2,730,542 Rancho Cucamonga $2,702,856 Placerville $664,940 Rancho Santa Margarita $608,376 Plumas County $727,093 Redding $2,020,884 Plymouth $404,425 Redondo Beach $784,980 Point Arena $404,425 Redwood City $2,086,314 Portola $452,032 Rialto $3,586,716 Rancho Mirage $1,032,569 Riverside $9,732,750 Red Bluff $744,284 Rocklin City $807,828 Rio Dell $474,513 Rosemead $2,059,428 Rio Vista $577,661 Roseville $1,880,196 Riverbank $732,382 Sacramento $14,142,402 San Benito County $727,093 23 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Salinas $6,041,082 San Joaquin $471,868 San Bernardino $9,732,162 San Juan Bautista $455,999 San Clemente $1,134,240 San Juan Capistrano $1,418,712 San Diego $34,741,098 Sand City $402,838 San Francisco $52,308,210 Santa Cruz County $3,395,713 San Jose $26,091,876 Scotts Valley $622,622 San Leandro $2,099,760 Shasta County $1,721,544 San Marcos City $1,915,068 Shasta Lake $613,366 San Mateo $2,051,364 Sierra County $405,747 Santa Ana $16,822,236 Siskiyou County $852,722 Santa Barbara $2,718,654 Solano County $769,410 Santa Clara $2,876,946 Soledad $725,770 Santa Clarita $3,529,554 Sonora $548,568 Santa Cruz $1,588,464 South Lake Tahoe $994,219 Santa Maria $4,400,826 St. Helena $534,021 Santa Monica $3,285,096 Suisun City $928,099 Santa Rosa $4,165,950 Susanville $559,147 Santee $806,244 Sutter County $698,000 Seaside $1,158,744 Sutter Creek $471,868 Simi Valley $1,742,142 Taft $543,278 South Gate $4,327,920 Tehama $393,581 South San Francisco $1,307,880 Tehama County $1,120,113 Stockton $10,268,580 Trinidad $396,491 Sunnyvale $3,198,138 Trinity County $729,738 Temecula $1,640,358 Truckee $627,912 Thousand Oaks $1,776,240 Tulare County $3,501,506 Torrance $2,666,244 Tulelake $411,037 Tulare $1,910,598 Tuolumne County $1,453,095 Turlock $1,859,124 Ukiah $778,667 Tustin $2,313,270 Vernon $392,259 Union City $1,523,610 Wasco $813,049 Upland $1,667,022 Weed $459,966 Vacaville $1,443,000 Westmorland $436,163 Vallejo $3,032,214 Wheatland $432,196 San Buenaventura $2,144,634 Williams $485,092 Victorville $3,796,620 Willits $553,857 Visalia $3,784,890 Willows $561,792 Vista $2,453,292 Winters $532,699 Walnut Creek $830,694 Woodlake $539,311 Watsonville $2,175,090 Yolo County $819,661 West Covina $2,332,578 Yountville $486,414 Westminster $3,063,462 Yreka $612,043 24 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount West Sacramento $1,420,074 Yuba County $1,634,265 Whittier $2,299,140 Woodland $1,493,934 Yorba Linda $639,174 Yuba City $1,866,840 Alameda County $5,603,190 Contra Costa County $13,021,068 Fresno County $9,860,088 Kern County $12,962,064 Los Angeles County $66,150,756 Marin County $4,353,426 Monterey County $3,890,280 Orange County $7,632,984 Riverside County $23,977,026 Sacramento County $16,324,956 San Bernardino County $20,754,846 San Diego County $11,879,796 San Joaquin County $7,861,158 San Luis Obispo County $5,235,012 San Mateo County $7,257,300 Santa Barbara County $3,418,722 Santa Clara County $4,420,398 Sonoma County $5,396,358 Stanislaus County $6,929,892 Ventura County $5,158,494 25 PERMANENT LOCAL HOUSING ALLOCATION PROGRAM PLAN §302(c)(4) Plan Rev. 5/14/21 §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities. With this funding, the City of Vernon plans to implement afirst-time homebuyers' downpayment assistance program. Staff will develop eligibility criteria, which will include income and credit threshold requirements. Funds secured through this grant will be disbursed to qualifying individuals that are first-time homebuyers who meet eligibility critieria. With this funding, the City will provide and require that applicants undergo afirst-time homebuyer educational program to learn the details of the homebuying process, including but not limitied to real estate and mortgage terminology, financial readiness, and fair housing policy. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI). The City of Vernon will develp a comprehensive application for its down payment assistance program. The application will apply additional weight to applications for households with incomes at or below 60 percent of Area Median Income to increase housing supply for this demograpic. Additionally, the City will continue to seek out additional financial resources that can be leveraged with this funding to assist households within this demographic. §302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government's Housing Element. The City of Vernon owns much of the housing within the City. Program 18 of the City's draft Housing Element calls for aCity-owned Housing Disposition Study. Afirst-time homebuyers' down payment assistance program would be an important component in the dispostion of city-owned housing. The Housing Element contemplates diversified home ownership, and afirst-time homebuyers' down payment assistance program would help ensure that ownership opportunites are available to a broad cross section of the population in the region. Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate- income households, including necessary Operating subsidies. §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high -cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. §301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing. §301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. §301 a 8 Efforts to ac uire and rehabilitate foreclosed or vacant homes and a artments. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. PLHA Page 1 302(c)(4) Plan PERMANENT LOCAL HOUSING ALLOCATION PROGRAM PLAN §301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project. PLHA Page 2 302(c)(4) Plan