File #: 20-327    Version: 1 Name: CA HCD Permanent Local Housing Allocation Program Standard Agreement (Reso)
Type: Resolution - Council Status: Passed
In control: City Council
Meeting Date: 7/20/2020 Final action: 7/20/2020
Enactment date: 7/20/2020 Enactment #: Reso 2020-086
Title: City of San Leandro City Council RESOLUTION Authorizing the City Manager to Apply for, Receive, if Awarded a PLHA grant, and Execute a Standard Agreement with the State of California, Department of Housing and Community Development for funding from the Permanent Local Housing Allocation Program.
Sponsors: Tom Liao
Related files: 20-326, 20-328

Title

City of San Leandro City Council RESOLUTION Authorizing the City Manager to Apply for, Receive, if Awarded a PLHA grant, and Execute a Standard Agreement with the State of California, Department of Housing and Community Development for funding from the Permanent Local Housing Allocation Program.

 

Body

 

A Majority of the City Council Members of the City of San Leandro, a municipal corporation organized as a Charter City under the laws of the State of California (“Applicant”) hereby consents to, adopts and ratifies the following:

 

WHEREAS, the Department is authorized to provide up to $195 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)); and

 

WHEREAS the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated February 26, 2020 under the Permanent Local Housing Allocation (PLHA) Program; and

 

WHEREAS Applicant is an eligible Local government applying for the program to administer one or more eligible activities; and

 

WHEREAS the Department may approve funding allocations for the 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; and

 

WHEREAS, the Permanent Local Housing Allocation Application was presented to the City of San Leandro City Council; and

 

WHEREAS, the City Council is familiar with the contents thereof; and

 

WHEREAS, the City Manager recommends approval of said agreement.

 

NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as follows:

 

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.

 

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 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.                     Applicant certifies that it 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;

 

5.                     Applicant certifies that its selection process of these subgrantees will be accessible to the public and shall avoid any conflicts of interest;

 

6.                     Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements;

 

7.                     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);

 

8.                     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 55 years.

 

9.                     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.

 

10.                     Jeff Kay, Applicant’s 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.