Permanent Local Housing Allocation (PLHA) Application

 

Public Comment Period Through December 14, 2021, Board of Supervisors’ Meeting

In September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate documents to increase the supply of affordable housing. The Act establishes the Permanent Local Housing Allocation (PLHA) program administered by the California Department of Housing and Community Development (HCD). The PLHA program provides a permanent source of funding to counties and cities to help meet the unmet need for affordable housing and increase the supply of affordable housing units.

Under the PLHA program, funding is provided through formula grants to entitlement jurisdictions based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a five-year funding period, as well as through a competitive grant program to non-entitlement jurisdictions. The County of Santa Clara, like the Cities of Cupertino, Gilroy, and Santa Clara, are entitlement jurisdictions, and, cumulatively, as noted in the table below, are eligible to receive an estimated $9,755,958 for the five-year funding period, 2019–2023.

Consortium Member 2019 Allocation 2020 Allocation Estimate for 2021-2023 Total
County of Santa Clara $736,733 $1,145,111 $2,538,554 $4,420,398
City of Cupertino $165,510 $257,254 $570,296 $993,060
City of Gilroy $244,259 $379,654 $841,641 $1,465,554
City of Santa Clara $479,491 $745,278 $1,652,177 $2,876,946
Total $1,625,993 $2,527,297 $5,602,668 $9,755,958

The estimated amounts for years 2021–2023 may change, since funding for PLHA is generated through a fee on real estate transactions, which may fluctuate from year to year.

On December 14, 2021, the Board of Supervisors for the County of Santa Clara will consider approval of an application to the PLHA program and approval of a PLHA Consortium, which will form a partnership with the cities of Cupertino, Gilroy, and Santa Clara on the administration of the PLHA program.

The State requires entitlement jurisdictions to use PLHA funds to increase the supply of affordable housing. To receive PLHA funds, as part of its PLHA application, the County, for the Consortium, is required to submit a five-year PLHA Plan (Plan), described in the PLHA Guidelines at section 302(c)(4), which describes the manner in which allocated funds will be used for eligible activities selected by the Consortium; the way the local government will prioritize investments that increase the supply of housing for households at or below 60 percent of area median income (AMI); how the Plan is consistent with the programs set forth in the County’s Housing Element; and evidence that the Plan was authorized and adopted by resolution by the City Council and that the public had an adequate opportunity to review and comment on its content. A full list of eligible activities may be found in the State PLHA Guidelines posted at: https://www.hcd.ca.gov/grants-funding/active-funding/plha.shtml.

The following titles in bold are the required elements of the County’s 302(c)(4) Plan

§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.

The County of Santa Clara and Cities of Cupertino, Gilroy and Santa Clara (PLHA Consortium) will use the PLHA funds for three (3) Eligible Activities identified below. The County, as the administering jurisdiction of the PLHA Consortium, has an existing over-the-counter Notice of Funding Availability for multifamily housing rental projects and is working on a Request for Proposals from eligible non-profits for shelter operations, safe park program administration, homelessness prevention and basic needs for unsheltered individuals . PLHA funds for the three Eligible Activities will be included in one or more of these existing procurement strategies, with eligible applicants carrying out programs and developments using PLHA funds, alone, or in combination with other funds. The PLHA Consortium members will advise the County on the proposed uses of their cities’ funds in accordance with the PLHA Plan and Consortium agreement. In addition, the County will utilize one or more staff review committees, depending on the type of program or development being reviewed. The County’s Continuum of Care will coordinate with the PLHA Consortium to ensure that projects funded are consistent with existing Quality Standards. Funding recommendations made by staff and committees will be taken to the County Board of Supervisors for final approval. The County will enter into agreements with subrecipients and housing developers and monitor their progress against these agreements.                                                                                      

§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).                                                                       

The Santa Clara County PLHA Consortium will prioritize investments of PLHA funds to increase the supply of affordable and supportive housing for households earning up to 60% AMI by including the Eligible Activity described in Section 301(a)(1) - funding the development of multifamily rental housing projects designed to be affordable to households earning up to 60% of AMI as a source of funds in the County's over-the-counter Supportive Housing Development Notice of Funding Availability. This is an existing process that has yielded the financing of 35 housing development projects and resulted in 3,662 new apartments across the County. Forty-eight percent (48%) of the PLHA Consortium’s PLHA allocation will be allocated to this activity, as we recognize the growing need for this type of investment within our community, particularly as the PLHA Consortium starts to plan for the next Regional Housing Needs Allocation cycle. The Consortium will also prioritize investments that increase the supply of housing for households earning up to 60% AMI by including the Eligible Activity described in Section 301(a)(2) - investing in rental and homeownership opportunities for residents for whom this option is typically out-of-reach. Thirty percent (30%) of the PLHA Consortium’s PLHA allocation will be allocated to this Eligible Activity. Overall, the County intends that more than 70% of the Consortium's total five-year allocation will benefit households at 60% AMI and below.                            

§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 County’s PLHA Plan is consistent with its Housing Element, including but not limited to the following: 4.04.02 - County Housing Bond Fund / 2016 Measure A $950 Million Affordable Housing Bond Fund (Housing Bond), which seeks ways to use bond proceeds to leverage additional local, state and federal funds to support the development, operation and services of affordable and supportive housing; 4.04.10 - Office of Supportive Housing works collectively to develop new housing for special needs groups and implement the Housing Bond; 4.05.08 -  Mental Health Services Act Housing Program, which creates housing units; 4.05.10 - Department of Alcohol and Drug Services program, which maintains residential beds, transitional housing unit beds, and outpatient slots that would have otherwise been lost when Bay Area Services Network funding terminated; 4.08.02 and 4.08.03 - Destination: Home and Keys To Housing: A 10 Year Plan to End Chronic Homelessness in Santa Clara County, which, through collaboration with partners and stakeholders, led to the development of the 2020 - 2025 Community Plan to End Homelessness and most recently HEADING HOME, a community-wide campaign to end family homelessness by 2025; and 4.08.14 - County Homeless Facilities, which works towards ending homelessness by increasing permanent supportive housing opportunities in the County.                                              

Public Comment Period

The public comment period runs from December 3, 2021, through the December 14, 2021, Board of Supervisors’ meeting.

Public comments are encouraged. These comments may be submitted in advance of the Board of Supervisors’ December 14, 2021, meeting, to Diana Castillo, Senior Management Analyst, at [email protected] or 408-278-6416.

Pursuant to California Government Code section 54953(e), meetings of the Board of Supervisors will be held by teleconference only. No physical location will be available for this teleconference meeting; however, members of the public will be able to participate by written and spoken public comments, and online streaming will continue as normal. The meeting agenda can be found here.

Meetings are livestreamed and spoken public comments may be made during the meeting, or in writing in advance of the meeting by submitting them via email to [email protected]. Further instructions for accessing the teleconference are available online at: https://board.sccgov.org/meetings-board-supervisors-and-board-policy-committees. Those requiring accommodation for these meetings should notify the Clerk of the Board's Office 24 hours prior to the meeting at (408) 299-5001 or [email protected]

Five Year PLHA Allocation Plan

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