TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Permanent Local Housing Allocation (PLHA) Funding Application.
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RECOMMENDATION
recommendation
1) Open a Public Hearing to receive input on the City of Chino Permanent Local Housing Allocation (PLHA) program application; 2) Adopt Resolution No. 2025-004, authorizing the submittal of an application for funding under the State of California PLHA program; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Upon award of the State funds, the City will come back to Council to accept the funds, approve the agreement, set up the Grant Fund, and allocate the revenue and expenditures. There are funds allocated by PLHA, in the amount of $804,163 upon acceptance of the City’s application.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
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BACKGROUND
The California Department of Housing and Community Development (HCD) has announced the release of funding under the Permanent Local Housing Allocation (PLHA) program pursuant to Senate Bill 2 (2017). The grant is funded from monies deposited into the State of California Building Trust fund from recording fees collected through real estate transactions and is made available to help local jurisdictions increase the supply of affordable homes in California.
The total allocation available to the City of Chino is $804,163. Eligible projects include the pre-development, development, acquisition, rehabilitation, and/or preservation of affordable multi-family housing, residential live-work or other rental housing including ADU’s, matching funds for local or regional housing trust funds, assisting persons experiencing or at-risk of homelessness, removing accessibility barriers in low-income housing, and creating affordable homeownership opportunities.
Eligible jurisdictions are required to 1) submit an application to HCD, inclusive of a five-year plan that describes how awarded PLHA program funds will be utilized to offset costs associated with the implementation of programs identified in the City’s Housing Element, and 2) adopt a resolution authorizing the acceptance of PLHA program funding and certifying that all such funds will be used in a manner consistent with and in compliance with all applicable State and Federal statutes, rules, regulations, and laws, including without limitation all PLHA program rules.
On January 13, 2025, the PLHA application and five-year plan was presented to the City Council Housing Committee. The Housing Committee supported staff’s proposed plan and directed staff to present the plan to the full City Council for consideration. On February 8, 2025, a public notice was published in the Chino Champion announcing the availability of the application and five-year plan for public review and comment for a 10-day period concluding with tonight’s public hearing. The public notice, 10-day public comment period and tonight’s hearing fulfills requirements to seek and consider public comment. As of the posting of the agenda for tonight’s meeting, no comments have been received.
ISSUES/ANALYSIS
The proposed Five-Year PLHA plan is consistent with the City’s goals for responsible long-range planning as well as programs and policies contained in the City's 2021-2029 Housing Element. The City's housing goals and policies include expanding the affordable housing stock through new construction and rehabilitation as well as promoting various types of housing opportunities including services to address the needs of our unsheltered population.
Staff have identified two priorities for utilizing PLHA program funds. The first priority is to assist families with children enrolled in the Chino Valley Unified School District (CVUSD) that have been identified under the McKinney-Vento Homeless Assistance Act as families that are homeless or at-risk of becoming homeless. As of the preparation of this report, 23 such families have been identified by CVUSD staff. Assistance will consist of long-term rental assistance (6 months or more) and/or associated housing placement costs, coupled with comprehensive case management services aimed at preparing the families for unsubsidized housing. These support services will be provided by the Community Services, Parks and Recreation Department staff in partnership with CVUSD support staff, local non-profit organizations and public service agencies. An amount not to exceed $482,498 (60% of available funds) will be allocated to this priority.
The second priority, for which no less than $321,665 (40% of available funds) will be allocated as required by PLHA program requirements, to provide 2-3 low-income homebuyers with affordable homeownership opportunities through down payment loan assistance programs. These opportunities will be provided through the development of affordable single-family homes on undeveloped and/or under-developed infill lots within the City in partnership with for-profit and/or non-profit affordable housing developers.
Both programs outlined above target those populations most in need in our community and are sustainable in the long-term through continued PLHA funding, potentially coupled with City Affordable Housing funds should a gap in State funding occur. These programs will enhance existing local housing and community services programs by expanding rental assistance and case management services, as well as offering homeownership opportunities that are not currently available.
Attachments - PLHA 5 Year Plan
Resolution 2025-004