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Resolution amending Resolution 188-2023 authorizing the City of South San Francisco to apply 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 agreement to receive the PLHA funds.
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A necessary quorum and majority of the City of South San Francisco City Council herby consents to, adopts and ratifies the following resolution:
WHEREAS, the State of California (the “State”) Department of Housing and Community Development (“Department”) is authorized to provide up to $304 million under the SB 2 Permanent Local Housing Allocation (PLHA) Program Formula Component from the Building Homes and Job Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statues of 2017 (SB2)); and
WHEREAS, the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated May 3, 2021 under the Permanent Local Housing Allocation (PLHA) Program; and
WHEREAS, the City of South San Francisco (“Applicant”) 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 South San Francisco City Council approved Resolution 94-2020 at its Regular City Council meeting on July 22, 2020 authorizing the City to apply to the State to receive and administer the City’s PLHA entitlement program funds and to enter into all required agreements to receive the PLHA funds; and
WHEREAS, Council approved Resolution 205-2022 at its Special City Council meeting on November 16, 2022 amending its 5-Year Plan for its PLHA entitlement; and
WHEREAS, Council approved Resolution 188-2023 at its Regular City Council meeting on December 13, 2023 amending its 5-Year Plan for its PLHA entitlement; and
WHEREAS, the City has seen a high need for affordable housing as evidenced by data gathered and conclusions drawn in the City’s Housing Element; and
WHEREAS, the City Council, at its April 10, 2024 Regular Meeting amended the 5-Year Plan to allow staff to use the first 2 years of PLHA funds designated for Activity 1 as described as “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;” 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 South San Francisco that it hereby consents to, adopts, and ratifies the following resolution:
1. If Applicant received 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.
2. 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 $1,307,880 in accordance with all applicable rules and laws.
3. 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.
4. Pursuant to Section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for the 2019-2023 Allocations is attached to this resolution, 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.
5. 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.
6. 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.
7. Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements.
8. 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).
9. Applicant certifies that, if funds are used for the development of 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.
10. Applicant shall be subject to the term and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.
11. The City Manager 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.
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