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HomeMy WebLinkAboutResolutions - No. 2021-13RESOLUTION NO. 2021-13 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING AMENDMENT NO. 1 TO THE PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROGRAM WHEREAS, the California Department of Housing and Community Development (the "Department") was authorized to provide up to $195 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 Department issued a Notice of Funding Availability ("NOFA") dated February 26, 2020 under the Permanent Local Housing Allocation (PLHA) Program; and WHEREAS, the City of Lodi ("Applicant') was an eligible Local government applying for the program 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 Applicant applied for funding under the PLHA Program on July 30, 2020 and was awarded funds by the Department on October 23, 2020; and WHEREAS, the Applicant's PLHA application outlined that PLHA funds would be used to fund the predevelopment costs of a permanent navigation center that will assist individuals that are homeless or at risk of homelessness for each annual allocation of the five-year PLHA Program; and WHEREAS, an amendment to the PLHA Program is required when a reallocation to a different eligible activity exceeds 10 percent; and WHEREAS, Amendment No. 1 to the PLHA Program would reallocate the Applicant's first- year PLHA allocation to the construction and development of the Harmony Homes project, which would create four units of permanent supportive housing for homeless individuals and families or those at risk of homelessness; and WHEREAS, notice of the January 6, 2021 public hearing on the draft Amendment No. 1 to the PLHA Program was published on the City of Lodi website on December 22, 2020; and WHEREAS, draft Amendment No. 1 to the PLHA Program was made available for public review and comment for a period of at least seven days, commencing no later than December 30, 2020, and continuing through the date of the public hearing before the Lodi City Council on January 6, 2021. NOW THEREFORE BE IT RESOLVED BY THE LODI CITY COUNCIL THAT: 1. If Department approves the above reference Amendment, Applicant 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. 2. 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. 3. Pursuant to Applicant's certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. 4. 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. The City will retain ownership of the Harmony Homes site through a land lease agreement. 5. 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. 6. Stephen Schwabauer, City Manager, is authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, aswell as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate. Dated: January 6, 2021 I hereby certify that Resolution No. 2021-13 was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 6, 2021, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, Khan, Hothi, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None JENNIFE USMIR City Clerk 2021-13