Title
Planning and Building Department, Affordable Housing Unit, recommending the Board approve and authorize the Chair to sign a budget transfer amending the Fiscal Year 2024-25 Budget, transferring $40,000 to the Housing Unit to pay for County Counsel services, and administration, monitoring, and compliance of the Permanent Local Housing Allocation Program Funds. (4/5 vote required)
FUNDING: State Senate Bill 2 (Chapter 364, Statutes of 2017) Permanent Local Housing Allocation Program Competitive Component from the Building Homes and Jobs Trust Fund.
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DISCUSSION / BACKGROUND
The State of California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) dated October 14, 2022, for the Non-Entitlement Local Government Competitive Component Grant for the Permanent Local Housing Allocation (PLHA) Program.
In response to the 2022 NOFA, the Board adopted Resolution 155-2023 to authorize submittal of a 2022 PLHA project application for an allocation of up to $3,150,000 of the PHLA Program funds for an acquisition loan to the development partnership of the Diamond Village Apartments, an 81-unit affordable multifamily workforce housing development in Diamond Springs
A Special Revenue account was created to deposit $150,000 of the grant funds for County costs associated with administering, monitoring and compliance relating to the project.
This transfer will allow for funds from the Special Revenue account to be transferred over into the Affordable Housing Unit to cover the expenses incurred for administering, monitoring, and compliance for the grant for Fiscal Year (FY) 2023-24 and FY 2024-25. Additionally, there was work completed by County Counsel related to the procurement of this grant and the expenditures incurred by County Counsel need to be reimbursed as well by the Planning and Building Department. Grant money was not received until the third quarter of FY 2024-25 and thus will be used to pay back the General Fund for expenses incurred in FY 2023-24.
ALTERNATIVES
The Board may deny the budget transfer and the Housing Unit and County Counsel will not receive reimbursement until the FY 2025-26 Formal Budget Adoption for expenses incurred in FY 2023-24 and FY 2024-25.
PRIOR BOARD ACTION
October 10, 2023 (Legistar file 23-1776, Item No. 18), the Board accepted the grant award for PLHA Grant funding in the amount of $3,150,000 for eligible activities for costs in support of the Diamond Village 81-unit affordable housing project located in Diamond Springs; and adopted Resolution 155-2023 PLHA Grant Program application to the State of California Department of Community Development for funding.
May 21, 2024 (Legistar file 24-0883, Item No. 35), the Board authorized the Director of the Planning and Building Department to execute the Standard Agreement with the State of California Department of Housing and Community Development for the amount of $3,150,000 upon execution through June 30, 2026.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
If this Budget Transfer is approved, the department will have a reduced use of the County's Discretionary Transient Occupancy Tax (DTOT). If the Budget Transfer is not approved, the DTOT will need to cover costs related to this matter until the FY 2025-26 Formal Budget Adoption.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Safe and Healthy Communities
Priority: Develop a continuum of support and housing opportunities for unhoused individuals
Action Item: Develop a comprehensive plan for affordable housing opportunities
CONTACT
Karen L. Garner, Director
Planning and Building Departmen