HomeMy WebLinkAboutAgenda Report - June 3, 2020 C-18AGENDA ITEM c-|6
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AGENDA TITLE:
MEETING DATE
PREPARED BY:
Adopt a Resolution of the City of Lodi City Council Authorizing the City
Manager to Draft a 2020 Permanent Local Housing Allocation (PLHA) Grant
Application to the California Department of Housing and Community
Development for Permanent Homeless Shelter Project - Predevelopment
Phase ($2,017,590)
June 3, 2020
Patrice Clemons, Community Development Block Grant Specialist
RECOMMENDED ACTION: Adopt a Resolution of the City of Lodi City Council Authorizing
the City Manager to Draft a 2020 Permanent Local Housing
Allocation (PLHA) Grant Application to the Catifornia
Department of Housing and Community Development for Permanent Homeless Shelter Project -
Predevelopment Phase ($2,01 7,590)
BACKGROUND INFORMATION: The California Department of Housing and Community
Development released a Notice of Funding Availabitity (NOFA) in
February 2020 for the Permanent Local Housing Allocation
Program. This grant program provides funds to local governments for housing-related projects and
programs that assist in addressing unmet housing needs in their local communities. The application
deadline is July 27,2020.
ln 2017 Governor Jerry Brown signed a package of housing bills aimed at addressing California's
housing shortage and high housing costs. This legislation package included Senate Bitt (SB) 2,
the Building Homes and Jobs Act, which established a $75 recording fee on real estate documents to
increase the supply of affordable homes in California and to address other urgent housing issues.
Under SB 2 the revenue from these recording fees is deposited into the established the Building Homes
and Jobs Trust Fund. Beginning in 2019 seventy (70) percent of the monies collected and deposited
into this fund are allocated to the Permanent Local Housing Allocation (PLHA) program to support
locally administered affordable housing.
ln February 2020 lhe Department of Housing and Community Development (HCD) announced the
availability of approximately $195 million in funding for the entitlement and non-entitlement local
government formula component of the PLHA program Notice of Funding Availability (NOFA). All
entitlement and non-entitlement local governments are eligible for an allocation of PLHA funds on an
annual basis for up to five-years. For entitlement jurisdictions (including the City of Lodi), the amount of
funding allocated is based on the jurisdiction's share of the total Community Development Block Grant
(CDBG) allocation in California. For Fiscal Year 2019-2020, the City of Lodi is eligible to receive
$336,265 PLHA funding. Over the five-year period, the City is eligible to receive a maximum of
$2,017,590 in PLHA funds, based on estimated annual allocations over the next five years. This five-
year maximum allocation is an estimate provided by HCD; actual funding amounts over the five-years
will be issued by HCD on an annual basis. PLHA grants are non-competitive; however, there are
threshold requirements that must be met in order for funding to be approved (e.9. the jurisdiction must
have an adopted Housing Element that is in compliance with state law and must submit a complete
PLHA application with all required information).
bauer
APPROVED
City Manager
06-03-20 Permanent Local Housing Allocetion (PLHA) Grant Application
Page 2 of 2
Projects proposing to use PLHA funding must help local governments achieve one or more of the
following objectives:
. lncrease the supply of housing for households at or below 60% of area median income. lncrease assistance to affordable owner-occupied workforce housing. Assist persons experiencing or at risk of homelessness. Facilitate housing affordability, particularly for lower- and moderate-income households. Promote projects and programs to meet the local government's unmet share of regional housing
needs allocation
The City of Lodi, along with many cities in California, began facing a homeless crisis in 2017. The City's
unsheltered homeless grew to 139 individuals in 2019, as measured by the County's Point-ln-Time
Count, though local social service providers projected thatthe real numbercould be up to 100 more. ln
response to this crisis, the Lodi Committee on Homelessness (LCOH) mobilized to find resources and
greater collaboration among social services agencies. Additionally, the City of Lodi Police Department
created a new Homeless Liaison Officer position to provide street outreach to find housing and services
for the unsheltered homeless population in Lodi. While this program experienced success in assisting
more than 100 unsheltered homeless to find resources and housing, severely chronically homeless still
face obstacles and need solutions that go beyond the resources provided in the City's program. The
LCOH, in collaboration with several local and regional homeless experts, identified that a permanent
low-bar shelter with supportive services would be critical to assisting the City's unsheltered homeless
population. Services would include case management, physical health, mental health, food, personal
care, transitional housing, job preparation, and more.
ln light of the above, the City of Lodi intends to pursue PLHA grant funding for the maximum amount of
$2,017,590, which includes the first allocation of $336,265 for Fiscal Year 2019-2020, for
predevelopment, infrastructure and site improvements for a permanent low-bar homeless shelter. As
part of the grant application, City staff will prepare a PLHA plan that outlines anticipated project details,
costs, and schedule over the five-year period. That plan will be presented to the City Council and the
public for review and approval at an upcoming City Council meeting, prior to the grant application due
date of July 27,2020.
The City of Lodi anticipates using Local Early Action Planning (LEAP) grant program funds for the
planning phase of this permanent homeless shelter project including 1) identifying appropriate sites,2)
conceptual designs, and 3) preliminary environment studies, and 4) creating a business and operational
plan. The City of Lodi plans to submit an application for LEAP funds in June 2020; which is also a non-
competitive grant. Assuming an award of LEAP funds for project planning, the City's PLHA funds will be
focused on implementation of actual onsite improvements.
Staff is requesting approval of a resolution in support of drafting the PLHA grant application to HCD;
and staff will return to City Council for review and approval of the PLHA Plan, as required by HCD, and
subsequent approval of a resolution in support of submittal of the PLHA grant application to HCD.
FISCAL IMPACT:There is no fiscal impact for consideration of adoption of the Resolution.
The City will apply for $2,017,590 to support predevelopment of a
permanent homeless shelter in Lodi. There is no obligated City match for
this grant program.
Funding for preparation of the grant application is available within the 2019-
20 Community Development Department budget.
FUNDING AVAILABLE
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Attachment: Resolution
Andrew Keys
Andrew Keys, Deputy City Manager/lnternal Services Director
John R. De[[a Monica, Jr.
John R. Della Monica Jr.
Community Development Director