Title
Report regarding a Resolution amending Resolution 188-2023 authorizing the City of South San Francisco to submit a 5-Year Plan amendment to the State of California to receive and administer the City’s Entitlement of Permanent Local Housing Allocation (PLHA) Funds and to enter into all required agreements to receive PLHA Funds. (Elia Moreno, Management Analyst I)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a Resolution amending Resolution 188-2023 authorizing the City of South San Francisco to submit a 5-Year plan amendment to the State of California to receive and administer the City’s Entitlement of Permanent Local Housing Allocation (PLHA) Funds and to enter into all required agreements to receive PLHA Funds.
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BACKGROUND
In 2017, the California State Legislature enacted Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act, which established a permanent funding source for affordable housing and homelessness-related services. The PLHA program, administered by the California Department of Housing and Community Development (HCD), is funded by a real estate transaction recording fee.
On July 22, 2020, the City Council approved a resolution authorizing an application for the City’s entitlement of PLHA funds and to enter into all required agreements to receive PLHA funds. The City submitted its initial PLHA 5-Year Plan to HCD, which was subsequently approved by HCD. The City’s total estimated allocation under the program is not to exceed $1,307,880 over the five-year period.
To date, the City has received $217,980 in PLHA funds for Year 1 (2019) and $338,809 for Year 2 (2020). These funds have been committed to a predevelopment loan to Rotary Plaza, Inc. to support an affordable housing development located at 500 and 522 Linden Avenue. The City has been awarded $372,849 for the Year 3 (2021) allocation, though these funds have not yet been received. City staff intend to apply for the Year 4 (2022) and Year 5 (2023) allocations in conjunction with the submittal of the amended 5-Year Plan to HCD.
DISCUSSION
On December 13, 2023, the City Council adopted Resolution 188-2023, amending the City's PLHA 5-Year Plan to allow all allocations to be used for Activity 2. However, since the adoption of this resolution, City staff have identified additional housing programs and activities that align with the goals and objectives of the PLHA and would further benefit the community’s housing needs.
Additionally, PLHA regulations require that substantial amendments to the 5-Year Plan must be approved by the local governing body and submitted to HCD for review and acceptance. It is also required that at least forty percent (40%) of the PLHA allocations be directed toward Affordable Ownership Workforce Housing (AOWH).
The Year 3 (2021) total of $372,849 will support various programs. The total amount is divided into the following categories:
• $223,709.40 Economic Advancement Center
• $100,000.00 Minor Home Repair Program
• $49,139.60 Reimbursement for Preservation Activities
Economic Advancement Center
The City of South San Francisco established the Economic Advancement Center (EAC) in 2021 to promote economic stability and support housing security for local households. The EAC enhances income opportunities and provides access to social services that support housing, employment, and entrepreneurship, helping residents connect to resources that can prevent displacement and ensure long-term housing stability. As part of the City’s efforts to increase affordable housing and reduce barriers to housing stability, the EAC serves as a collaborative hub housing the City’s Promotores program, JobTrain Inc., and the Renaissance Entrepreneurship Center. These organizations work together to provide services to San Mateo County residents, including individuals who are homeless or at risk of homelessness, by helping them secure housing, increase income, find stable employment, and grow small businesses. The proposed amendment would allocate funding to support the ongoing operating costs of the EAC. This proposal is eligible under Activity 6 - Assisting persons who are experiencing or at risk of homelessness.
Minor Home Repair Program
To fulfill the City’s requirement of allocating 40% of designated funds toward Affordable Ownership Workforce Housing (AOWH), supporting the rehabilitation of affordable ownership housing through a Minor Home Repair Program. The Minor Home Repair program is designed to provide South San Francisco’s elderly and low-income homeowners with home safety assessments, safety plans, and home safety repairs and modifications. Skilled technicians will perform a variety of repair activities, including, but not limited to, accessibility modifications, debris removal, fence repair, exterior painting, light yard work, heating repair, door repair and placement, energy sufficient measures, etc. The intent of the program is to improve health and safety for the low-income and elderly homeowners in South San Francisco with an outreach effort focusing on the veterans, people with disabilities, Black, Indigenous, and People of Color (BIPOC) communities. This proposal is eligible under Activity 2 - The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing.
City Reimbursement for the Preservation of Two Below Market Rate Units
To further satisfy the City's 40% AOWH allocation requirement, $49,139.60 from the Year 3 (2021) allocation will be used to reimburse the City for its efforts in preserving units within the City's Affordable Housing program. Following the unsuccessful marketing and sale, the City Council authorized the purchase of two Below Market Rate (BMR) units to ensure they would not be sold at market rate on January 10, 2024, and on October 23, 2024. To preserve long-term affordability, the City intervened by acquiring title to the properties, adjusted the resale prices, and resold the units to eligible income households. City staff is now proposing to use PLHA funding to reimburse the City for a portion of the financial subsidy provided to preserve the affordable units. This proposal is eligible under Activity 2 - The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing.
FISCAL IMPACT
There is no impact on the City’s General Fund. All proposed activities will be funded through the City’s PLHA entitlement allocation.
CONCLUSION
Staff recommends that the City Council adopt a Resolution amending Resolution 188-2023 authorizing the City of South San Francisco to submit a 5-Year Plan amendment to the State of California to receive and administer the City’s Entitlement of Permanent Local Housing Allocation (PLHA) Funds and to enter into all required agreements to receive PLHA Funds.