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HomeMy WebLinkAboutItem 24 - Application for Prohousing Incentive Program Grant Funds') Community Development Agency www.santa-ana.org/community-development Item # 24 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 17, 2024 TOPIC: Application for Prohousing Incentive Program Grant Funds AGENDA TITLE Application for the State of California Department of Housing and Community Development Prohousing Incentive Program RECOMMENDED ACTION 1. Adopt a resolution authorizing the City Manager to apply for up to $1 million in grant funding from the State of California Department of Housing and Community Development (HCD) Prohousing Incentive Program. RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING APPLICATION FOR, AND RECEIPT OF, PROHOUSING INCENTIVE PROGRAM FUNDS 2. If awarded Prohousing Incentive Program grant funding from HCD, authorize the City Manager to execute an agreement with the State of California, in the form of HCD's "Standard Agreement," for receipt of the Prohousing Incentive Program grant funding for an amount up to $1 million, and any other documents required by HCD to secure the grant, if approved, as to form by the City Attorney. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The Prohousing Incentive Program (PIP) is intended to increase participation in HCD's Prohousing Designation Program by pairing the designation with an impactful award grant. This PIP complements the Prohousing Designation Program by encouraging cities and counties to earn the Prohousing designation. In 2019, Assembly Bill 101 (AB 101) created the Prohousing Designation Program, managed by HCD. This noncompetitive program requires jurisdictions to meet State of California (State) housing laws and Housing Element requirements, as well as adopt or propose local policies that support Prohousing goals, ultimately earning them the designation of a "Prohousing city." On October 15, 2024, the City Council adopted a resolution authorizing the submission of an application for the Prohousing Designation Program to obtain this designation from HCD. Application for Prohousing Incentive Program Grant Funds December 17, 2024 Page 2 On August 15, 2024, HCD issued a Notice of Funding Availability (NOFA) for the third round of the HCD PIP (PIP Round 3). To be eligible for the PIP Round 3, jurisdictions must have received their Prohousing designation by December 31, 2024. The application deadline for the PIP Round 3 is also December 31, 2024. Afterward, HCD will evaluate applicants who meet the program's threshold requirements and rank them based on their Prohousing Designation score. For this round, approximately $8 million in funding is available, and awards can be used for planning and implementation activities related to housing and community development. Eligible applicants will receive a base award based on population size (for cities with populations between 300,000 and 749,999, this amount is $1,000,000). In addition, applicants may qualify for a bonus award of up to $500,000, calculated by multiplying their Prohousing Designation score by $10,000. For instance, a jurisdiction with a Prohousing Designation score of 35 could receive a bonus of $350,000, in addition to the base award. The application for the PIP program must include a resolution approved by the City Council (Exhibit 1). Additionally, before funds can be awarded, the City of Santa Ana (City) must meet several requirements: it must have adopted a compliant Housing Element, submitted a legally sufficient Annual Progress Report, obtained the Prohousing Designation, and complied with relevant State and Federal housing laws. For PIP Round 3, the City is applying for $1 million in funding and a bonus award to support the development of affordable rental and ownership housing. These funds will be directed toward projects that aim to increase the supply of affordable housing units, in line with the City's commitment and requirements in the Housing Element. The funds will be used for development activities related to affordable housing, ensuring that the City remains in compliance with State and Federal housing requirements while advancing local housing goals. This application, which supports Santa Ana's pursuit of a Prohousing city designation, will help fund critical housing initiatives, fostering long-term growth and stability within the community. FISCAL IMPACT If approved by HCD, the City would be eligible to receive a minimum of $1,000,000 in HCD PIP funds. Those funds would be recognized at a later date. However, there is no fiscal impact associated with this item. EXHIBIT(S) 1. Resolution Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nunez, City Manager EXHIBIT 1 RESOLUTION NO. 2024-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING APPLICATION FOR, AND RECEIPT OF, PROHOUSING INCENTIVE PROGRAM FUNDS WHEREAS, pursuant to Health and Safety Code 50470 et. seq., the California Department of Housing and Community Development ("Department") is authorized to issue Guidelines as part of an incentive program (Prohousing Incentive Program or "PIP" or "Program"); and WHEREAS, the City Council of the City of Santa Ana desires to submit a PIP grant application package ("Application"), on the forms provided by the Department, for approval of grant funding for eligible activities toward planning and implementation activities related to housing and community development as a result of meeting eligibility criteria including but not limited to Prohousing Designation; and WHEREAS, the Department has issued Guidelines and Application on August 2024 in the approximate amount of $8,000,000 for PIP. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: SECTION 1. The City Manager or the City Manager's designee is hereby authorized and directed to submit an Application to the Department in response to the NOFA and to apply for the PIP grant funds in a total amount not to exceed $1,000,000; SECTION 2. In connection with the PIP grant, if the Application is approved by the Department, the City Manager or the City Manager's Designee is authorized and directed to enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement ("Standard Agreement") for the amount of $1,000,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the PIP grant, the Applicant's obligations related thereto, and all amendments thereto; and SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the Guidelines, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the Guidelines and in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to Resolution No. 2024-XXX Page 1 of 2 EXHIBIT 1 use the funds for eligible uses and allowable expenditures in the manner presented and identified in the approved Application. SECTION 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this 17th day of December, 2024. Valerie Amezcua Mayor APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney g (&', 4 a �t-t 4, (4—�t Andrea Garcia -Miller Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2024-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 12024. Date: City Clerk City of Santa Ana Resolution No. 2024-XXX Page 2 of 2