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Home My WebLink AboutRESO 100801 0160085_20220923_ay16 Resolution No. 10080 Resolution of the Council of the City of Palo Alto Authorizing the Application And Adopting the PLHA Plan for the Permanent Local Housing Allocation Program A necessary quorum and majority of the council members of the City of Palo Alto (“Applicant”) hereby consents to, adopts and ratifies the following resolution: A. WHEREAS, the Department is authorized to provide up to $335 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)). B. WHEREAS the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated 8/17/2022 under the Permanent Local Housing Allocation (PLHA) Program; C. WHEREAS the City of Palo Alto 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. D. 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, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. If Applicant receives 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. SECTION 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 of $1,388,976, as stated in Appendix C of the current NOFA in accordance with all applicable rules and laws. SECTION 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. DocuSign Envelope ID: 5F229482-D580-45BB-8223-27001469CADD 2 0160085_20220923_ay16 SECTION 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. SECTION 5. The following is included at t he request of Department staff, though it is not applicable: Applicant certifies that it was delegated by _______________________ to submit an application on its behalf and administer the PLHA grant award for the formula allocation of PLHA funds, pursuant to Guidelines Section 300(c) and 300(d), and the legally binding agreement between the recipient of the PLHA funds and the Applicant is submitted with the PLHA application. SECTION 6. 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. SECTION 7. 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. SECTION 8. Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. SECTION 9. 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). SECTION 10. 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 55years. SECTION 12. 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. SECTION 12. The City of Palo Alto’s Director of Planning a nd Development Services 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. DocuSign Envelope ID: 5F229482-D580-45BB-8223-27001469CADD 3 0160085_20220923_ay16 SECTION 13. The Council finds that th e adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required. INTRODUCED AND PASSED: October 24, 2022 AYES: BURT, CORMACK, DUBOIS, FILSETH, KOU, STONE, TANAKA NOES: ABSENT: ABSTENTIONS: SIGNATURE OF APPROVING OFFICER: ________________________ Pat Burt, Mayor CERTIFICATE OF THE ATTESTING OFFICER: The undersigned, City Clerk of the City of Palo Alto, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the City Council of the City of Palo Alto, which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof. ATTEST: _________________________ Lesley Milton, City Clerk APPROVED AS TO FORM: APPROVED AS TO CONTENT: __________________________ _____________________________ Assistant City Attorney City Manager DocuSign Envelope ID: 5F229482-D580-45BB-8223-27001469CADD §301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element. Applying for PLHA funding is consistent with best practice to secure available Palo Alto-entitled state funding for City priorities. The proposed use of PLHA funds is directed toward currently unmet housing needs, including those activites that are more costly and difficult to find funding sources for. The proposed use of PLHA funds focus on low, very low, and extremely low income levels, which is consistent with current and proposed Housing Element programs to serve low and very low income households, pursuing new funding sources, as well as encouraging affordable housing production. §301(a)(1) 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. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental Housing Activity. §302(c)(4) Plan Rev. 2/16/22 §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities. The City of Palo Alto has focused the PLHA funds exclusively to Activity (1) and Activity (6) as described in the 2019 PLHA Final Guidelines Section 301(a), as these eligible activities are City priorities. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI). The PLHA funds focused on Activity (1) are dedicated to preservation of existing affordable housing units, operating subsidies for existing afforable housing units, and construction of new affordable housing units at or below 60% AMI. The PLHA funds focused for Activity (6) are dedicated to addressing the needs of people experiencing or at risk of homelessness, which are people which are at an income level of 0% through 30% AMI. Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) The City of Palo Alto has focused PLHA funds to Activity (1) as described in the 2019 PLHA Final Guidelines Section 301(a). PLHA funds would be dedicated to preservation of existing affordable housing units, operating subsidies for existing affordable units, and/or new construction of affordable multi-family rental housing at 60% AMI or less. Program income from Activity (1) would be retained within this PLHA activity account and reused for the same activities in the future. Funding Allocation Year 2019 2020 2021 2022 2023 Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). 20 §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §302(c)(4)(E)(i) Percentage of Funds Allocated for the Proposed Affordable Rental Housing Activity 40.0% 20.0% 20.0% 20.0% 20.0% §302(c)(4)(E)(ii) Area Median Income Level Served 60% 60% 60% 60% 60% 124 TOTAL 372 §302(c)(4)(E)(ii) Unmet share of the RHNA at the AMI Level Note: complete for years 2019, 2020, 2021 only The City of Palo Alto has an ongoing need for funds to support preservation of existing affordable units, operating subsidies for existing affordable units, and to construct new affordable multi-family rental housing. The City anticipates receiving an ongoing year over year series of requests for financial support for these activities, especially given the need to meet the City's Regional Housing Needs Allocation and to also not lose existing affordable housing units. The City of Palo Alto proposes to use PLHA funds for these activities as soon as possible, as well as on an ongoing basis. This City will provide necessary documentation of activity eligibility as part of submitting the HCD Request for Funds. 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years §302(c)(4)(E)(iv) Period of Affordability for the Proposed Affordable Rental Housing Activity (55 years required for rental housing projects) 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years §302(c)(4)(E)(ii) Projected Number of Households Served 4 4 4 4 4 124 124 The City of Palo Alto has focused PLHA funds to Activity (6) as described in the 2019 PLHA Final Guidelines Section 301(a). Palo Alto, in partnership with LifeMoves, is developing an emergency shelter with the capacity to serve over 300 individuals annually with on-site support services. The City proposes use of PLHA funds to support operational expenses for the shelter. The emergency shelter is a low barrier shelter. LifeMoves will operate the emergency shelter and will provide intensive, customized case management for clients including counseling, employment and housing search services with the goal of paving a dignified path to self-sufficiency. The City also proposes use of PLHA funds for street outreach to help area individuals and households access the shelter and on-site support services. All individuals and households accessing serves are presumed to be at an income level of 30% AMI or below. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity. PLHA Page 1 302(c)(4) Plan Attachment 1 - City of Palo Alto PLHA Five-Year Funding Plan for the Entitled PLHA 2019-2023 Allocations DocuSign Envelope ID: 5F229482-D580-45BB-8223-27001469CADD 2023 Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). 2019 2020 10.00% 20.00% §302(c)(4)(E)(i) Percentage of Funds Allocated for the Proposed Activity 50.00% 60.00% 60.00% 60.00% 60.00% Emergenc y Shelter Operating Emergenc y Shelter Operating Emergenc y Shelter Operating Funding Allocation Year 2019 2020 2021 2022 2023 2021 2022 Street Outreach Street Outreach Street Outreach TOTAL30% 30% 30% 30% 30%§302(c)(4)(E)(ii) Area Median Income Level Served 30% 30% The City of Palo Alto proposes to use PLHA funds for street outreach as soon as possible, including in support of the opening of the Homekey emergency shelter in July 2023, as well as on an ongoing basis. This City will provide necessary documentation of the street outreach activity eligibility as part of submitting the HCD Request for Funds. The City of Palo Alto proposes to use PLHA funds for emergency shelter operating expenses as soon as July 2023 or beforehand, as well as on an ongoing basis. This City will provide necessary documentation of the emergency shelter operational expenses eligibility as part of submitting the HCD Request for Funds. §302(c)(4)(E)(ii) Unmet share of the RHNA at AMI Level Note: complete for years 2019, 2020, 2021 only 0 0 0 0 0 0 0 0 0 0 0 30% 30% 30% Emergenc y Shelter Operating Emergenc y Shelter Operating 20.00% 20.00% 20.00% Type of Activity for Persons Experiencing or At Risk of Homelessness 150 1500 §302(c)(4)(E)(iv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) 0 0 0 0 0 0 0 0 0 0 §302(c)(4)(E)(ii) Projected Number of Households Served 150 150 150 150 150 150 150 150 150 Street Outreach Street Outreach §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. PLHA Page 2 302(c)(4) Plan DocuSign Envelope ID: 5F229482-D580-45BB-8223-27001469CADD Certificate Of Completion Envelope Id: 5F229482D58045BB822327001469CADD Status: Completed Subject: Complete with DocuSign: Resolution 10080 (PLHA application) Source Envelope: Document Pages: 5 Signatures: 4 Envelope Originator: Certificate Pages: 2 Initials: 0 Vinhloc Nguyen AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Vinhloc.Nguyen@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 10/24/2022 6:03:13 PM Holder: Vinhloc Nguyen Vinhloc.Nguyen@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Albert Yang Albert.Yang@CityofPaloAlto.org Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 97.126.28.155 Signed using mobile Sent: 10/24/2022 9:00:10 PM Viewed: 10/25/2022 8:03:56 AM Signed: 10/25/2022 8:04:11 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 10/25/2022 8:04:12 AM Viewed: 10/25/2022 12:38:58 PM Signed: 10/25/2022 12:39:04 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Patrick Burt pat@patburt.org Mr Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 98.37.159.0 Sent: 10/25/2022 12:39:06 PM Viewed: 10/25/2022 3:45:44 PM Signed: 10/25/2022 3:46:00 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lesley Milton Lesley.Milton@CityofPaloAlto.org City Clerk City Clerk Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 10/25/2022 3:46:01 PM Viewed: 10/25/2022 4:10:15 PM Signed: 10/25/2022 4:10:23 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/24/2022 9:00:10 PM Certified Delivered Security Checked 10/25/2022 4:10:15 PM Signing Complete Security Checked 10/25/2022 4:10:23 PM Completed Security Checked 10/25/2022 4:10:23 PM Payment Events Status Timestamps