AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: COLLEEN T. DOAN
COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT:
title
RESOLUTION APPROVING YEAR FIVE PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION GRANT PROGRAM
summary
Summary:
Los Angeles County (County) was awarded funding in 2020 through the State’s five-year Permanent Local Housing Allocation (PLHA) grant program. The Los Angeles County Development Authority (LACDA) was designated to facilitate and oversee implementation of funded activities. Under its Urban County Agreement with LACDA, the City of Signal Hill elected to participate in the PLHA program by requesting local funds for alternate local activities supporting the implementation of the 6th Cycle Housing Element, as well as the County’s selected Eviction Defense Program.
The City previously submitted applications for Year One through Year Four PLHA grant funds, all of which have been approved. The City is currently working with its workforce housing development partner to receive funds for Year One through Year Three; funds for Year Four are pending release by the County. Staff recommends the City Council approve the resolution to apply for the Year Five PLHA grant funds.
Strategic Plan Goal(s):
Goal No. 3 Economic and Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core.
Goal No. 5 High Functioning Government: Strengthen internal communication, recruitment, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING YEAR FIVE PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION PROGRAM BY AUTHORIZING THE MAYOR, OR HIS/HER DESIGNEE, TO SIGN A REIMBURSABLE CONTRACT WITH THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY (LACDA) ACTING ON BEHALF OF THE COUNTY OF LOS ANGELES
body
Fiscal Impact:
The City’s Year Five funding request is $31,874. If approved by the County, the total PLHA funding requested to date would be $342,325, allocated as follows:
• Year One: $65,482
• Year Two: $101,780
• Year Three: $95,383
• Year Four: $47,806
• Year Five: $31,874
These funds would continue to support site assessment, remediation of property development constraints, and assistance with property acquisition for housing sites identified to meet the City’s 6th Cycle Regional Housing Needs Assessment (RHNA) allocation of 517 units. Additionally, the funding would help accelerate the production of affordable housing, potentially enhancing future opportunities to receive housing-related funding. The City would track the funds in the Planning Grants Fund (241), with monies transferred to the General Fund (100) as eligible expenditures are incurred.
Background and Analysis:
State Housing Mandates
Housing policy has been a long-standing priority in California. Over the past half-century, the State Legislature has enacted numerous measures requiring local governments to adequately plan for housing needs in their communities. Municipalities are also required to prepare and update their General Plans, which include mandated elements, such as the Housing Element. The Housing Element is the only General Plan element required to be certified by the State every eight years. To receive State certification, the Housing Element must include a plan to accommodate each municipality’s State-mandated RHNA allocation, which is stratified into the following categories:
• Affordable - very low;
• Affordable - low;
• Moderate; and
• Above moderate.
The State holds cities accountable for production within the eight-year cycle, in addition to having zoning in place to accommodate the allocation. More recently, the State has adopted an aggressive approach enforcing Housing element compliance, including measures that limit or remove local governments’ land use control authority if requirements are not met.
Loss of Redevelopment Funding
Historically, the City used redevelopment funds to acquire properties, assess site development constraints, and remediate and prepare sites for affordable housing development. The Community Redevelopment Law (Health & Safety Code §33400 et seq.) required cities to set aside 20% of their redevelopment funds for the development of affordable housing. The redevelopment program was a significant tool utilized to increase the amount of affordable housing. The City successfully used its share of past redevelopment funding to develop a total of 305 affordable units at Sea Breeze Manor, Las Brisas, and Zinnia as well as moderate income housing at East Village and Signal Hill Village. In 2011, the State dissolved redevelopment agencies. Despite the loss of this critical funding tool, the State continues to require that local governments meet State-mandated housing goals, including the production of affordable housing.
Adoption of the 6th Cycle Housing Element Update
The City Council adopted the 6th Cycle Housing Element, certified by the Department of Housing and Community Development in 2022. The Housing Element period is from October 15, 2021, to October 15, 2029. The City’s required number of additional housing units stands at 517 total units across all income categories, more than three times the previous allocation. The table below illustrates the percentage of units required in each income category.
PLHA Funding Program
In 2020, the State Department of Housing and Community Development initiated the PLHA grant funding program offered under SB2 Building Homes and Jobs Act. The PLHA provides approximately $195 million of funding assistance over a five-year period for eligible housing and homelessness activities. Funds are dependent on the volume of real estate activity and associated recording fees collected. LACDA, on behalf of the County, oversees the Eviction Defense Program and serves as the administrator for alternate local activities.
Recommendation
On December 3, 2024, the City received an Award Letter Notice for Year Five of PLHA program totaling $31,874 (Attachment A). The City’s Year Five funding request builds upon the alternate activities pursued during Year One through Year Four, in support of the identification of necessary predevelopment activities (Attachment B). The PLHA program is expected to extend beyond the initial five-year term.
Staff proposes the following alternate activities for Year Five:
• Assisting with property remediation including assessments, actions, and costs; and
• Financially assisting with property acquisition negotiations and costs.
If approved by the County, the City’s total PLHA funding to date would be $342,325. In addition to PLHA funds, staff will continue to pursue additional grant funding to further the City’s efforts to deliver affordable housing.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachments:
A. Notice of Award
B. Letter of Intent and Grant Application
C. Resolution