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HomeMy WebLinkAbout2022-10-18; City Council; Resolution 2022-249RESOLUTION NO. 2022-249 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FUNDING PLAN FOR PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FUNDING AND AUTHORIZING THE SUBMITTAL OF A PERMANENT LOCAL HOUSING ALLOCATION FUNDING APPLICATION WHEREAS, the State of California (the "State") is authorized to provide up to $335 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)); and WHEREAS the State Department of Housing and Community Development ("Department") issued a Notice of Funding Availability ("NOFA") dated August 17, 2022 under the Permanent Local Housing Allocation {PLHA) Program; and WHEREAS, the City of Carlsbad is an eligible Local government who has applied for program funds to administer one or more eligible activities, or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation; and WHEREAS, the Department 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 the Department and PLHA grant recipients. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.If Applicant receives a grant of PLHA funds from the Department 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, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with the Department. 3.Applicant is hereby authorized and directed to receive 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 (2022) in accordance with all applicable rules and laws. 4.Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department 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 Applicant and the Department. 5.Pursuant to Section 302(c)(4) of the Guidelines, Applicant's PLHA Plan for the 2019-2023 Allocations is attached to this resolution as Attachment A, and Applicant hereby adopts this PLHA Plan and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines. 6.Applicant certifies that the City Manager is delegated by the City Council to submit an application on its behalf and administer the PLHA grant award for the formula allocation of PLHA funds, pursuant to Guidelines Section 300(c) and 300(d), and the legally binding agreement between the recipient of the PLHA funds and the Applicant is submitted with the PLHA application. 7.Applicant certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), "entity" means a housing developer or program operator, but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation. 8.Applicant certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest. 9.Pursuant to Applicant's certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. 10.Applicant certifies that, if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A),(B) and (C). 11.Applicant certifies that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with a Local government­ approved underwriting of the Project for a term of at least 55 years. 12.Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department. 13.The City Manager, or designee, is authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 18th day of October, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. MATT HALL, Mayor L �AVIOLA i"(SEAL) ~erk Services Manager Final Filing Date: October 31, 2022 at 4:00 P.M. PST Permanent Local Housing Allocation (PLHA) Formula Allocation 2022 Application for New Applicants State of California Governor, Gavin Newsom Lourdes Castro Ramírez, Secretary Business, Consumer Services and Housing Agency Gustavo Velasquez, Director Department of Housing and Community Development Program Design and Implementation, PLHA Program 2020 West El Camino Avenue, Suite 150, Sacramento, CA 95833 PLHA Program Email: PLHA@hcd.ca.gov Attachment A Legally binding agreement between Delegating and Administering Local Governments (sample provided—just click on icon in row 17, column AI) Program Income Reuse Plan describing how repaid loans or accrued interest will be used for eligible activities in Section 301. Checklist Threshold Requirement X Disclosure of Application (California Public Records Act Statutes of 1968 Chapter 1473): Information provided in the application will become a public record available for review by the public, pursuant to the California Public Records Act Statutes of 1968 Chapter 1473. As such, any materials provided will be disclosable to any person making a request under this Act. The Department cautions Applicants to use discretion in providing information not specifically requested, including but not limited to, bank accounts, personal phone numbers and home addresses. By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request. Included? X Reuse Plan X Applicant Delegation Agreement 0 X Executed Application Provide a copy of the signed application. Signature in blue ink preferred. Instructions This application form is limited to Applicants who did not apply to the 2020 and 2021 Formula Allocation NOFA Rev. 2/16/22 When opening this file, a yellow banner at the top may appear with a button that says "Enable Content". It is essential that you click this box so that the macros are enabled. Enabling macros is necessary for full worksheet functionality. Macros do not work with Microsoft's Excel version for Apple Mac. Applications must be submitted electronically to the Department’s website. Requirements for uploading the Application Workbook and required supporting documentation, including naming conventions, are described in the application instructions available at https://www.hcd.ca.gov/grants-funding/active-funding/plha.shtml. All applicable information must be received by HCD no later than 4:00 p.m. on: Monday, October 31, 2022 Applications must be on the Department’s forms and cannot be altered or modified by the Applicant. Excel forms must be in Excel format and 'save as' .xls or .xlsx. Do not 'save as' .xlsm or .pdf format. If you encounter problems with the application, please fill out the Application Support worksheet and email the entire workbook to Application Support at AppSupport@hcd.ca.gov and PLHA@hcd.ca.gov General Instructions Additional instructions and guidance are given throughout the Formula Allocation Application in "red" text and in cell comments. Guideline references are made with "§" and the corresponding guideline section number. "Yellow" cells are for Applicant input. Failure to provide the required attachments and documentation will disqualify your application from consideration. Required attachments are indicated in "orange" throughout the Supplemental Application. Failure to provide the required attachments and documentation may disqualify your application from consideration. Electronically attached files must use the naming convention in the PLHA Application. For Example: "App1 Payee Data" for Applicant 1 Payee Data Record/STD. 204. Threshold items are indicated in "blue" cells. Applicant must complete the following worksheets in the PLHA Formula Allocation Application. Formula Allocation Application "Red" shaded cells indicate the Sponsor has failed to meet a requirement of the program. Application and Adopting the PLHA Plan (2019-2023 Allocations) Reso Electronic File Name App1 TIN Pursuant to section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for 2019-2023 allocations is attached to this resolution, and Applicant certifies compliance with all public notice, comment, and hearing requirements in accordance with the Guidelines. Document Description 302(c)(4) Plan Legislative Contacts PLHA Page 2    Instructions & Checklist Eligible Applicant Type: Entitlement. Local Government Recipient of PLHA Formula Allocation: Carlsbad 2020 PLHA NOFA Formula Allocation Amount: Zip Code: Contact Name: City: Phone: Address: Address: 1200 Carlsbad Village Drive Contact Email: mandy.mills@carlsbadca.gov City: 92008 San DiegoState: Carlsbad scott.chadwick@carlsbadca.govAuth Rep. Email: Title: Director, Housing & Homeles Contact Phone: Carlsbad State: $272,582 2020 NOFA Allowable Local Admin (5%):$13,629 Eligible Applicants §300 §300(a) and (b) Eligible Applicants for the Entitlement and Non-Entitlement formula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306 and Non-entitlement local governments. Applicant: City of Carlsbad County: 92008 Auth Rep Name: Scott Chadwick City:Carlsbad CA Zip: Zip Code: 2022 PLHA NOFA Formula Allocation Amount:$466,244 2022 NOFA Allowable Local Admin (5%):$23,312 Yes §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. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. No File Name: Pursuant to section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for 2019-2023 allocations is attached to this resolution, and Applicant certifies compliance with all public notice, comment, and hearing requirements in accordance with the Guidelines. No App1 TIN Application and Adopting the PLHA Plan (2019-2023 Allocations) Reso Included?§301(a) Eligible activities are limited to the following: File Name: Uploaded to HCD? Yes Uploaded to HCD?Yes Yes File Name: §302(c)(4) Applicant certified in the Resolution submitted with this application that the application include a Plan in accordance with §302(c)(4)? Applicant Delegation Agreement Legally binding agreement between Delegating and Administering Local Governments (sample provided—just click on icon in row 17, column AI) Yes §302(c)(5) Applicant certified in the Resolution submitted with this application that the Plan submitted is for a term of five years (2019-2023). Local Governments agree to inform the Department of changes made to the Plan in each succeeding year of the term of the Plan.Yes §302(c)(6) Applicant certified in the Resolution submitted with this application that it will ensure compliance with §302(c)(6) if funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects. Yes§302(c)(4)(D) Applicant certified in the Resolution submitted with this application that the Plan was authorized and adopted by resolution by the Local Government and that the public had an adequate opportunity to review and comment on its content. Yes §302(c)(3) Applicant certified in the Resolution submitted with this application that, if the Local Government proposes allocation of funds for any activity to another entity, the Local government’s selection process had no conflicts of interest and was accessible to the public. §302(c)(2) Applicant certified in the Resolution submitted with this application that submission of the application was authorized by the governing board of the Applicant. Eligible Activities, §301 Title: 92008 Yes §302(a) The Applicant's Housing Element and Delegating Local Government's Housing Element (if applicable) was/were adopted by the Local Government’s governing body by the application submittal date subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585. Yes §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. State: CA Address: Mandy Mills City Manager 1200 Carlsbad Village Drive Yes Threshold Requirements, §302 §302(b) Applicant or Delegating Local Government has submitted the current or prior year's Annual Progress Report to the Department of Housing and Community Development pursuant to Government Code Section 65400. Yes §300(d) If Applicant answered "Yes" above, has the Applicant attached the legally binding agreement required by §300 (c) and (d)? A sample agreement can be found by double clicking on the icon to the right Local Government Formula Allocation for New Applicants Rev. 2/16/22 1200 Carlsbad Village Drive §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)(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)(7) Accessibility modifications in Lower-income Owner-occupied housing. §301(a)(6) Assisting persons who are experiencing or At-risk of homelessness, including, but not limited to, providing rapid re-housing, 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 th new construction, rehabilitation, and preservation of permanent and transitional housing. §301(a)(5) Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing. §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. Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to a Local Housing Trust Fund or to another Local Government, the Applicant (for which information is required below) is the Local Housing Trust Fund or administering Local Government. The PLHA award will be made to the Applicant (upon meeting threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement. The 302(c)(4) Plan template worksheet requires first choosing one or more of the Eligible Activities listed below. If "Yes" is clicked, the 302(c)(4) Plan worksheet opens a series of questions about what precise activities are planned. Some specific activities, such as providing downpayment assistance to lower-income households for acquisition of an affordable home, could be included under either Activity 2 or 9. Please only choose one of those Activities; don't list the downpayment assistance under both Activities. If the PLHA funds are used for the same Activity but for different Area Median Income (AMI) level, select the same Activity twice (or more times) and the different AMI level the Activity will serve. Please enter the percentage of funds allocated to the Activity in only the first Activity listing to avoid double counting the funding allocation. For each year (2019-2023), allocations must equal 100% annually including the allowable administrative costs of up to 5%. 2021 PLHA NOFA Formula Allocation Amount:$423,678 2021 NOFA Allowable Local Admin (5%):$21,184 Uploaded to HCD? §300(d) Is Applicant delegated by another Local government to administer on its behalf its formula allocation of program funds? CA YES YES YES YES YES YES YES YES YES YES SAMPLE -Legally Binding Agreement PLHA Page 3 Formula Allocation Application I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - ' ' ' ' ' P" ' ' ' ' Signature Date Certifications Applicant agrees to adhere to §503, Reporting.Yes Applicant agrees to adhere to §502, Cancellation/Termination. Scott Chadwick Authorized Representative Printed Name City Manager Title Yes On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block. YesApplicant agrees to adhere to §501, Audits/Monitoring of Project Files. YesApplicant agrees to adhere to §500, Accounting Records. No Administration §302(c)(7) Applicant certified in the Resolution submitted with this application that it will ensure that the PLHA assistance is in the form of a low-interest, deferred loan to the Sponsor of the Project, if funds are used for the development of an Affordable Rental Housing Development. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with the Local government-approved underwriting of the Project for a term of at least 55 years. Yes File Name:Reuse Plan Program Income Reuse Plan describing how repaid loans or accrued interest will be used for eligible activities in Section 301. Narrative uploaded to HCD?No §302(c)(8) Has Applicant attached a program income reuse plan describing how repaid loans or accrued interest will be reused for eligible activities specified in Section 301? PLHA Page 4 Formula Allocation Application I I I I I I I I I I I I I Emergency Shelter Operating Supportive/ Case Manageme nt Services 0§302(c)(4)(E)(ii) Projected Number of Households Served §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity. §302(c)(4)(E)(ii) Unmet share of the RHNA at AMI Level Note: complete for years 2019, 2020, 2021 only 0 000000000000 0 30% 30% 30% Emergency Shelter Operating Supportive/ Case Manageme nt Services 80.00% 20.00%60.00% 20.00% 15.00% Type of Activity for Persons Experiencing or At Risk of Homelessness Emergency Shelter Operating Emergency Shelter Capital Costs Supportive/ Case Manageme nt Services 30% 30%TOTAL30% 30% 30% 30% 30% 30% §302(c)(4)(E)(ii) Area Median Income Level Served 30% 30% 2021 2021 2021 50.00% 30.00% 15.00% Emergency Shelter Capital Costs Emergency Shelter Capital Costs §302(c)(4)(E)(i) Percentage of Funds Allocated for the Proposed Activity 80.00% 15.00% 50.00% 30.00% 15.00% Emergency Shelter Capital Costs Emergency Shelter Operating Supportive/ Case Manageme nt Services Emergency Shelter Capital Costs Funding Allocation Year 2019 2019 2020 2020 2020 2023 20232022 2022 2022 The City of Carlsbad is proposing to utilize 100% of its PLHA funding to support services that assist people who are experiencing homelessness or are at-risk of homelessness. The PLHA funds will be directed to emergency shelters within the City of Carlsbad, and shelters located in adjacent communities that provide shelter and services to Carlsbad residents. Additionally, the PLHA funds will support the City's Homeless Response Plan team in carrying out outreach, case management, and housing navigation services. PLHA funds will also be allocated to rental assistance, for a period of six months, to case-managed individuals experiencing homelessness or at-risk of homelessness. Lastly, the PLHA funds are expected to support Catholic Charitie's La Posada de Guadalupe shelter expansion project. La Posada is presently the only congregate shelter facility located in the City of Carlsbad, and only offers shelter to single males. The goal of the expansion project is to increase the overall number of beds, while establishing new access for women and children. Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). §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's Housing Element contains two programs that specifically align with the application and use of PLHA funds. Program 2.13 "Housing for Persons Experiencing Homelessness" Program 3.1. "Pursue State and Federal Funding" In addition to the City's 2021-2029 Housing Element programs, the City's Community Development Block Grant Consolidated Plan, has assigned the highest priority to two activities: - Increase the supply of affordable housing units - Provide supportive services for the homeless, lower-income residents, and persons with special needs §302(c)(4) Plan Rev. 2/16/22 §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities. The City of Carlsbad is proposing to utilize 100% of its PLHA funding to support services that assist people who are experiencing homelessness or are at-risk of homelessness. The PLHA funds will be directed to emergency shelters within the City of Carlsbad, and shelters located in adjacent communities that provide shelter and services to Carlsbad residents. Additionally, the PLHA funds will support the City's Homeless Response Plan team in carrying out outreach, case management, and housing navigation services. PLHA funds will also be allocated to rental assistance, for a period of six months, to case-managed individuals experiencing homelessness or at-risk of homelessness. Lastly, the PLHA funds are expected to support Catholic Charitie's La Posada de Guadalupe shelter expansion project. La Posada is presently the only congregate shelter facility located in the City of Carlsbad, and only offers shelter to single males. The goal of the expansion project is to increase the overall number of beds, while opening availability to women and children. §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 Carlsbad's Inclusionary Housing policy has successfully created over 2,000 affordable homes for lower-income residents throughout the City. Additionally, the Inclusionary Housing Ordinance generates revenue, by way of development in-lieu fees, for new affordable housing activities. The City's Housing Trust Fund has been an instrumental tool in funding gaps for new housing projects, including those that set-aside units for extremely low-income households (30% AMI) and those with special needs (seniors, veterans, homeless). The City has experience in leveraging available funding, including CDBG, HOME, Housing Trust funds, and Tax-Exempt Bond Financing to support the acquisition and rehabilitation, preservation, and construction of affordable housing units. Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §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. PLHA Page 5 302(c)(4) Plan §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §302(c)(4)(E)(iv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A City of Carlsbad City Council has prioritized homelessness as one of its top city goals. In setting this goal, the City Council directed staff to develop a work plan to achieve a set of specific objectives and committed a significant investment of over $2.6 million to fund various activities, such as outreach, housing navigation, portable toilets, motel vouchers, case management, dedicated to reducing and ending homelessness. The PLHA funding would contribute to this ongoing effort and enable the City to reduce its general fund subsidies. PLHA Page 6 302(c)(4) Plan Organization:Email:Contact Phone: Application Development Team (ADT) Support Form Rev. 2/16/22 Please complete the "yellow" cells in the form below and email a copy to: AppSupport@hcd.ca.gov. and PLHA@hcd.ca.gov. A member of the Application Development Team will respond to your request within ASAP. Full Name:Date Requested:Application Version Date: Justification: Issue #Program Name & Tab Section Cell# Update/Comment Urgency ADT Status Status Date 2 1 3 4 6 5 7 8 10 9 11 12 14 13 15 16 18 17 19 20 22 21 23 24 25 PLHA Page 7    Application Support I I I I I I I