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RES-2022-145RESOLUTION NO. 2022 - 14 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE APPLICATION AND ADOPTING THE PLHA PLAN FOR THE PERMANENT LOCAL HOUSING ALLOCATION PROGRAM A necessary quorum and majority of the members of the City Council of the City of Anaheim 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 Anaheim ("Anaheim") 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, BE IT RESOLVED THAT: 1. If Anaheim 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 Anaheim may have with the Department. 2. Anaheim 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 of $12,931,710.00 in accordance with all applicable rules and laws. 3. Anaheim 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 Anaheim and the Department. 4. Pursuant to Section 302(c)(4) of the Guidelines, Anaheim's PLHA Plan for the 2019-2023 Allocations is attached to this resolution, and Anaheim hereby adopts this PLHA Plan and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines. 5. Anaheim certifies that it was delegated as Not Applicable 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 Anaheim is submitted with the PLHA application. 6. Anaheim 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. 7. Anaheim 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. 8. Pursuant to Anaheim's certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. 9. Anaheim 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). 10. Anaheim 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 55 years. 11. Anaheim 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. 12. Housing and Community Development Director Grace Ruiz-Stepter is/are 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 Anaheim, as the Department may deem appropriate. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 2V day of December, 2022, by the following roll call vote: AYES: Mayor Aitken and Council Members Diaz, Leon, Rubalcava, Faessel, and Meeks NOES: None ABSENT: None ABSTAIN: None [One City Council vacancy] CITY OF ANAHEIM By: ASH _,IGH E. Alf N MAYOR OF THE Y OF ANAHEIM ATTEST: Y CLE K OF THE CITY OF AHEIM Signature of Approving Officer: Leigh E. Ai t , Mayor CERTIFICATE OF THE ATTESTING OFFICER The undersigned, Officer of the City of Anaheim, 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 of Anaheim 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. AT - SiL� 5;1 g Officer Theresa Bass, City Clerk 302 c 4 Plan Re, 517121 302(cy(4hAy Describe the manner in which allocated funds will be used for eligible activities. The City of Anaheim, in partnership with the Anaheim Housing Authority, will use PLHA funds to provide gap financing for the development of new affordable multifamily rental housing projects serving households earning up to 80% of Area Median Income (AMI) and belowand provide homeownership opporunities for households earning up to 150 % AMI and below. Proposed housing developments address the varying needs in Anaheim including housing for seniors, low income workers as well as families and individuals exiting homelessness. PLHA funds will be used to ensure that a diversity of housing opportunities are being offered in the City. §302(cx4XB) 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 City will use PLHA funds for gap financing on four (4) affordable housing projects which will include rental housing opportunities for households with incomes at or below 60%of AMI. The City is acquiring three motel sites and providing gap financing for an affordable mule -generational rental and homeownership opportunity project. Approximately 525 rental units will be provided to low-income households with a majority of the units serving households at 60 % or below of AMI. §302(cx4NC) Provide a description of how the Plan is consistent with the programs set forth in the Local Government's Housing Element The affordability requirements of the Plan are consistent with the affordability requirements of the Anaheim Housing Element which requires the creation of affordable housing units for Extremely Low, Very Low, Low -and Moderate income levels. Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §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 rnoderate•ficome nousehotds, including necessary Operating 5uh3+dtas §302(c)(4XE)(I) Prpv'ide a de!aded and complete description of how allocated funds will Le used for each proposed Affordable Rental Hous+ng AcGviry. The proposed Plan directs approximately WT. of the Citys PLHA funds (and 5%for administrative costs) to the development of new rental housing projects serving households earning up to 80% of AMI or below with a majority of the units serving households at 60% or below of AMI. The use of PLHA funds for the creation of affordable housing units is consistent with City's adopted Housing Element The City currently has several affordable housing projects in the pipeline that are in need of gap financing. Below ate Die projects that can utilize PLHA funds. 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). Funding Allocation Year .. _ 2020 2021 2022 2023 _ §302(cN4)(E)(1) Percentage of Funds Allocated for the 80.0% 80.0% 80.0% 80.0% 80.0% Proposed Affordable Rental Housing Activity §302(ex4)(E)(II) Area Median 80% 80% 80% 80% 80% TOTAL Income Level Served §302(c)(4)(E)(II) Unmet share of the RHNA at the AMI Level 54 :11 85 Note: complete for year 2019 $ 2020 only §302(c)(4KE)(II) Projected 54 31 27 413 525 Number of Households Served §302(c)(4)(E)(iv) Period of Affordability for the Proposed Affordable Rental Housing 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years Activity (55 years required for rental housing projects) 302(c 4 E 111) A description of major steps/actions and a procosed schedule for the implementation and completion of the Activity. Activity funding for 2019: Acquisition of a motel site for the purposes of creating affordable housing units approved by Resolution on December 20, 2022. Activity funding for 2020 and 2021 funds: Acquisition of two motel sites for the purposes of creating affordable housing units approved by Resolution on December 20, 2022. The City will begin the predevelopment phase in early 2023 with an anticipated completion date of 2024/2025. Activity funding for 2022 and 2023: development of an affordable housing site that will provide multi -generational affordable units. This site is currently in the planning stages and a Request for Proposals will be released in 2023/2024 and development is anticipated to be completed in 2026-2027. PLHA Page 1 302(c)(4) Plan §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high -cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. §302(c)(4KENi) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental and Ownership Housing Activity. 16% Approximiately 15% of the total allocated PHLA funds will be used to create homeownership opportunties for households earning up 150% AMI. Activifty funding for 2019: Create approximately 10 homeownership opportunties for households earning up 150%AMI. Activity funding for 2020: Create approximately 6 homeownership opportunties for households earning up 150% AMI. Acliviity funding for 2021: Create approximately 5 homeownership opportunties for households earning up 150% AMI. Acliviity funding for 2022/2023: Create approximately 72 homeownership opportunities for households earning up 150%AMI. Future PLHA allocations will also be used for homeownership and rental opportunities. Complete the table below for each proposed Affordable Rental and Ownership 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). Funding Allocation Year 2019 2020 2021 2022 2023 Ownership: Ownership Ownership Ownership Ownership Type of Affordable Housing Developme Activity nt Developm Developm Developm Developm ant ent ent ent §302(c)(4XEKti) Area Median 150% 150% 150% 150% 150% TOTAL Income Level Served §302(cx4XE)(II) Unmet share of the RHNA at AMI Level 10 6 16 $ 211 §302(c)(4)(E)(1) Percentage of Funds Allocated for Each 15% 15% t5 N 15% 15% Affordable Housing Activity §302(cX4XE)(11) Projected 10 6 5 72. 93 Number of Households Served §302(cx4)(E)(iv) Period of Affordability for the Proposed 45 4. a•. 45 Activity (55 years required for rental housing projects) §302(cx4XE)(iti) A description of major steps/actions and a proposed schedule for the implementation and completion of each Affordable Rental and Ownership Housing project. Funding activity 2019-2021: The City is currently in the process of acquiring two motel sites and in negotiations to acquire a third motel site for the purposes of creating affordable housing opportunities. Funding activity 2022-2023: This site is currently in the planning stages and a Request for Proposals will be released in 2023/2024 and development is anticipated to be completed in 2026-2027 301 a 3 Matonin onions bf funos faced into Locel a R Ponal Housin rust Funds 301 a 4 Malchi OrtiOns of ds available throw h the Low- and MWarale-Income Housm Assel Fund ursuant to subdivlslan d of HS Secti�' �A 1 i6. 307 r C rtatiiad Reserves for smicss connected to the preservaton and creation 31 now permanent SDIIPqqivelpusln . §301(a)(6) Assisting persons who are exper envng or At n5k of homelessness, inquc ing, but not limited to, ptov a rig rapid rehousing, rental assistance, supportivedra5e management services !fret allow people to obtain and retain houSmg, opera ling and Caprial costs for navigation centers and emergency shelters, and the new Construction, rehabilitation, and pre-servatian of permanent and transitional housing. 301 a 7 Accessierh ly moWiratiaris in Lower -income Owner-occu ped 7--.ausin 301 a $ Efforts to acquire and rehabilltate foreclosed or vacant Homes and a artmanu- 301 a 9 Hornrvownership opportunities. Includrn , but not Ilmited to, down payment assistance §301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project The county fiscal incentives shall be in the form of a grant or low - interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low -interest deferred loan to the affordable housing Project. PLHA Page 2 302(c)(4) Plan CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Resolution No. 2022-145 adopted at a regular meeting provided by law, of the Anaheim City Council held on the 20th day of December, 2022 by the following vote of the members thereof: AYES: Mayor Aitken and Council Members Diaz, Leon, Rubalcava, Faessel and Meeks NOES: None ABSTAIN: None ABSENT: None [One City Council vacancy] IN WITNESS WHEREOF, I have hereunto set my hand this 21st day of December, 2022. CITY C RK OF THE CITY OF ANAHEIM (SEAL)