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Resolution Number 22-11-14-031 11/14/2022 RESOLUTION NO. 22-11-14-03 CITY OF SAN JUAN CAPISTRANO AUTHORIZING RESOLUTION OF THE CITY OF SAN JUAN CAPISTRANO AUTHORIZING THE APPLICATION AND ADOPTING THE PLHA PLAN FOR THE PERMANENT LOCAL HOUSING ALLOCATION PROGRAM A majority of the Council members of the City of San Juan Capistrano herby consents to, adopts, and ratifies the following resolution: A. WHEREAS, the California Department of Housing and Community Development (“HCD”) is authorized to provide up to $335 million under the SB 2 Permanent Local Housing Allocation (PLHA) 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”), HCD issued a Notice of Funding Availability (“NOFA”) dated August 17, 2022 under the PLHA Program; C.WHEREAS, the City of San Juan Capistrano (City) is an eligible Local government who has applied for program funds to administer one or more eligible activities; D.WHEREAS, HCD may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, and Standard Agreement, and other contracts between HCD and PLHA grant recipients; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Juan Capistrano as follows: SECTION 1. If the City receives a grant of PLHA funds from HCD 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, the California Environmental Quality Act, and all contracts the City may have with HCD. SECTION 2. The City 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 $1,418,712, in accordance with all applicable rules and laws. SECTION 3. The City hereby agrees to use the PLHA funds for eligible activities as approved by HCD 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 City and HCD. 2 11/14/2022 SECTION 4. Pursuant to Section 302(c)(4) of the Guidelines, the City’s PLHA Plan for the 2019-2023 Allocations is incorporated in this resolution as EXHIBIT A, and the City 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. Pursuant to the City’s certification in this resolution, the PLHA funds will be expended only for eligible Activities, the specifics of which have yet to be identified, and consistent with all program requirements. SECTION 6. The City shall be subject to the terms and conditions as specified in the Standard Agreement, the Guidelines and any other applicable SB 2 Guidelines published by HCD. SECTION 7. 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 the City, as HCD may deem appropriate. SECTION 8. Certification & Effective Date. The City Clerk shall certify to the adoption of this Resolution which shall be effective upon its adoption. SECTION 9. Custodian of Records. The documents and materials associated with this Resolution that constitute the record of proceedings on which these findings are based are located at San Juan Capistrano City Hall, 32400 Paseo Adelanto, San Juan Capistrano, California 92675. The City Clerk is the custodian of records for the record of proceedings. PASSED, APPROVED, AND ADOPTED this 14th day of November 2022. HOWARD HART, MAYOR PRO TEM CERTIFICATE OF THE ATTESTING OFFICER The undersigned, Officer of the City of San Juan Capistrano, Maria Morris, does hereby attest and certify that Resolution 22-11-14-01 is a true, full and correct copy of a resolution duly adopted at a meeting of the City of San Juan Capistrano 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: MARIA MORRIS, CITY CLERK 3 11/14/2022 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 22-11-14-03 was duly adopted by the City Council of the City of San Juan Capistrano at An Adjourned Regular meeting thereof, held the 14th day of November 2022, by the following vote: AYES: COUNCIL MEMBERS: Bourne, Taylor, Farias, and Mayor Pro Tem Hart NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Mayor Reeve ____________________________ MARIA MORRIS, CITY CLERK §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of each Affordable Rental and Ownership Housing project.1) Once funding is issued, the City will send notices to households on the OOR waiting list of the availability of funding and request submittal of proof of income. (2-5 days) 2) Review submitted income documentation to determine income eligibility. (2-4 weeks) 3) Once income qualified,City staff will inspect home for necessary home repairs, including upgrades to comply with current code, energy efficiency and weatherization improvements, accessibility improvements, and repairs for health and safety concerns and prepare work write-up for bids. (1-2 weeks) 4)Request bids from licensed contractors and homeowner selects preferred reasonable bid. (.5-1 month) 5) Loan Documents are signed, loan is secured with deed of trust or title, and contractor issued Notice to Proceed. (1-2 weeks) 6) Constructions and Progress Payments (2-4months). 7) Final payment authorized by household and issued. (1 week).10§302(c)(4)(E)(iv) Period of Affordabilityfor the Proposed Activity (55 yearsrequired for rental housing projects)30y30y30y30y30y260§302(c)(4)(E)(ii) Projected Number ofHouseholds Served33211TOTAL§302(c)(4)(E)(ii) Unmet share of theRHNA at AMI LevelNote: complete for years 2019, 2020,2021 only878786§302(c)(4)(E)(ii) Area Median IncomeLevel Served80%80%80%80%80%§302(c)(4)(E)(i) Percentage of FundsAllocated for Each Affordable HousingActivity55%35%35%25%15%Type of Affordable Housing ActivityOwnership: RehabilitationOwnership: RehabilitationOwnership: RehabilitationOwnership: RehabilitationOwnership: RehabilitationSection 301(a)(2): The rehabilitation of affordable ownership housing, that meets the needs of a growing workforce earning up to 120% AMI. Specifically, the City will use funds to supplement the Owner-Occupied Rehabilitation (OOR) program which is funded by HOME and CDBG. The City's OOR Program provides 0% interest loans to lower income households city wide for necessary home repairs, including upgrades to comply with current code, energy efficiency & weatherization improvements, accessibility improvements, & repairs for health & safety concerns. The PLHA funds will allow the City to preserve the units occupied & affordable to lower income households from dilapidation & households needing to relocate. Additionally, the program could be expanded to assist households making 81% - 120% AMI which would assist rehabilitations needed for households in an income category not currently assisted. Reuse Plan: The funds which are used for 0% interest loans will be reused in the same manner as originally allocated, with at least 30% being used to continue the outreach & assistance to persons who are experiencing or at risk of homelessness services (Section301(a)(6)), & 70% being used for certain households & uses of the OOR program (Section 301(a)(2) & Section 301(a)(7)). 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 20192020202120222023§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 inhigh-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental and Ownership Housing Activity.Enter Percentage of Funds Allocated for Affordable Owner-occupied Workforce Housing 32%§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.The use of the PLHA funds for Mercy Housing services is consistent with The City of San Juan Capistrano's Housing Element Program 21. Place-Based Improvements, which identifies the City’s desire to maintain and expand the service contract with Mercy Housing Living Centers to ensure homelessness outreach and assistance efforts continue in the community so long as there remains unsheltered persons within the City. Additionally, the use of PLHA funds for the OOR program is consistent with Program 8. Owner Occupied Rehabilitation Program and Program 16. Residential Rehabilitation as both programs seek to preserve existing housing stock within the San Juan Capistrano jurisdiction and provide assistance to lower income households which may not be able to afford necessary improvements without assistance.Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301))§302(c)(4) PlanRev. 2/16/22§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.Section 301(a)(2): The rehabilitation of affordable ownership housing, that meets the needs of a growing workforce earning up to 120% AMI. Specifically, the City will use funds to supplement the Owner-Occupied Rehabilitation (OOR) program which is funded by HOME & CDBG. TheCity's OOR Program provides 0% interest loans to lower income households city wide for necessary home repairs, including upgrades to comply with current code, energy efficiency & weatherization improvements, accessibility improvements, & repairs for health & safety concerns. ThePLHA funds will allow the City to preserve the units occupied & affordable to lower income households from dilapidation & households needing to relocate. Additionally, the program could be expanded to assist households making 81% - 120% AMI which would assist rehabilitationsneeded for households in an income category not currently assisted. Section301(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 allowpeople to obtain & retain housing, operating & capital costs for navigation centers & emergency shelters, & the new construction, rehabilitation, & preservation of permanent & transitional housing. Specifically, the City currently contracts with Mercy Housing to provide ongoing citywideoutreach & assistance to persons who are experiencing or at risk of homelessness, including, but not limited to rapid rehousing, rental assistance, & providing supportive/case management services that allow people to obtain & retain housing. The PLHA funding will allow these servicesto continue, & expand in the future through services with Mercy Housing, similar consultants, or an inhouse housing staff member. Section 301(a)(7): Accessibility modifications in lower-income owner-occupied housing for households with incomes of no more than 60% AreaMedian Income (AMI). Specifically, the City's OOR program assists households which make less than 80% AMI, including households which make less than 60% AMI, the PLHA funds add a funding source to assist with accessibility improvements for all low income households.Reuse Plan: The funds which are used for 0% interest loans will be reused in the same manner as originally allocated, with at least 30% being used to continue the outreach & assistance to persons who are experiencing or at risk of homelessness services (Section301(a)(6)), and 70%being used for certain households & uses of the OOR program (Section 301(a)(2) & Section 301(a)(7)).§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).All clients who receive assistance at San Juan Capistrano City Hall with supportive services including rapid rehousing, rental assistance, and supportive/case management services, who are homeless, or at risk of homelessness will have household incomes of no more than 60%. Therequested funding for this activity for the five-year plan totals 46% ensuring nearly half the investments assist in supplying housing for households with incomes at or below 60% AMI. Additionally, the City's OOR program has assisted 25 households over the past five years, of which 20have earned less than 60% AMI. Therefore, it is anticipated that 80% of the beneficiaries of the OOR program will be households that make less than 60% AMI. The requested funding for this activity for the five-year plan totals 49%, 80% of this being used for households making lessthan 60% AMI totals 39%; this combined with the 46% used for supportive services to persons who are experiencing or at risk of homelessness totals 85%, thereby prioritizing the investment in the supply or preservation of housing for households with incomes at or below 60%. Further,the City will monitor the use of funding to ensure households making less than 60% AMI are a priority and adjust if necessary.EXHIBIT A §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.1) Once funding is issued, the City will send notices to households on the OOR waiting list of the availability of funding and request submittal of proof of income. (2-5 days) 2) Review submitted income documentation to determine income eligibility. (2-4 weeks) 3) Once income qualified,City staff will inspect home for necessary accessibility improvementsand prepare work write-up for bids. (1-2 weeks) 4) Request bids from licensed contractors and homeowner selects preferred reasonable bid. (.5-1 month) 5) Loan Documents are signed, loan is secured with deed oftrust or title, and contractor issued Notice to Proceed. (1-2 weeks) 6) Constructions and Progress Payments (2-4 months). 7) Final payment authorized by household and issued. (1 week).10§302(c)(4)(E)(iv) Period of Affordabilityfor the Proposed Activity3030303030260§302(c)(4)(E)(ii) Projected Number ofHouseholds Served22222TOTAL§302(c)(4)(E)(ii) Unmet share of theRHNA at AMI LevelNote: complete for years 2019, 2020,2021 only878786§302(c)(4)(E)(ii) Area Median IncomeLevel Served80%80%80%80%80%§302(c)(4)(E)(i) Percentage of FundsAllocated for the Proposed Activity30.00% 25.00% 15.00% 10.00% 5.00%Section 301(a)(7): The rehabilitation of affordable ownership housing, that meets the needs of a growing workforce earning up to 80% AMI. Specifically, the City will use funds to supplement the OOR program (described above) for accessibility improvements. The PLHA funds will allow the City to preserve the units occupied and affordable to lower income households from dilapidation and households needing to relocate. Reuse Plan: The funds which are used for 0% interest loans will be reused in the same manner as originally allocated, with at least 30% being used to continue the outreach and assistance to persons who are experiencing or at risk of homelessness services (Section301(a)(6)), and 70% being used for certain households and uses of the OOR program (Section 301(a)(2) & Section 301(a)(7)).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).Funding Allocation Year 20192020202120222023§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.See attached scope of work for first two years. Years 3-5 will include Emergency Housing Cost Assistance program which will issue grants of up to $4,000 for housing costs (including, rent, mortgage, or utilities (gas, water, trash, sewer, electric)) after documentation of need and emergency situation is received and approved. §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity.Enter Percentage of Funds Allocated for Affordable Owner-occupied Workforce Housing16%6m6m6m6m233§302(c)(4)(E)(iv) Period of Affordabilityfor the Proposed Activity (55 yearsrequired for rental housing projects)6m6m6m6m6m60215022260§302(c)(4)(E)(ii) Projected Number ofHouseholds Served151451 1502 1TOTAL§302(c)(4)(E)(ii) Unmet share of theRHNA at AMI LevelNote: complete for years 2019, 2020,2021 only87878630%30%30%30%30%30%§302(c)(4)(E)(ii) Area Median IncomeLevel Served30%30%30%30%30%30%30%30%30.00% 15.00% 15.00% 30.00% 20.00% 25.00%§302(c)(4)(E)(i) Percentage of FundsAllocated for the Proposed Activity5.00%5.00% 15.00% 10.00% 10.00% 25.00% 10.00% 10.00%Supportive/Case Management ServicesRapid RehousingRental Assistance (term of six months)Supportive/Case Management ServicesRapid RehousingRental Assistance (term of six months)Type of Activity for Persons Experiencing or At Risk of HomelessnessSupportive/Case Management ServicesRapid RehousingSupportive/Case Management ServicesRapid RehousingRental Assistance (term of six months)Supportive/Case Management ServicesRapid RehousingRental Assistance (term of six months)202220222022202320232023Complete 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).Funding Allocation Year 20192019202020202020202120212021§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 navigationcenters and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity.Section301(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. Specifically, the City currently contracts with Mercy Housing to provide ongoing citywide outreach and assistance to persons who are experiencing or at risk of homelessness, including, but not limited to rapid rehousing, rental assistance, and providing supportive/case management services that allow people to obtain and retain housing. The PLHA funding will allow these services to continue, and expand in the future through cervices with Mercy Housing, similar consultants, or an inhouse housing staff member.