Permanent Local Housing Allocation (PLHA) Program – Draft Guidelines Overview Presented by: Imaez Wahid
Senate Bill 2 (Chapter 364, Statutes of 2017) • Part of a 15-bill housing package aimed at addressing California’s housing shortage and high housing costs; • Imposed a $75.00 fee on real estate recordation transactions; • Created Building Homes and Jobs Trust Fund; • Established permanent ongoing source of funding for affordable housing development.
Senate Bill 2 – Ongoing Funding Allocation • Twenty percent of all moneys collected and deposited in the BHJTF on and after January 1, 2019, be expended for AOWH. • 30 percent of the moneys collected on and after January 1, 2019, is allocated for the following: 5 percent for State incentive programs; 10 percent for Farmworker housing; 15 percent to California Housing Finance Agency.
Senate Bill 2 – Ongoing Funding Allocation • 70 percent of the moneys collected on and after January 1, 2019, is allocated for the Permanent Local Housing Allocation (PLHA) program • PLHA program – Provides financial assistance to local governments for housing development projects and housing-related programs to assist in addressing the unmet housing needs for their local communities.
Program Funding Allocation Three allocation components of the PLHA program are: – Entitlement formula component per HSC 50470(b)(2)(B)(i)(I); – Non-entitlement competitive grant program component per HSC 50470(b)(2)(B)(i)(I); – Non-entitlement formula component per HSC 50470(b)(2)(B)(i)(II)
Program Funding Allocation 70 percent of the moneys collected on and after January 1, 2019, will be allocated to local governments through the following: 70 percent of the moneys collected on and after January 1, 2019 90 percent will be allocated Entitlement formula component per HSC based on the formula used 50470(b)(2)(B)(i)(I) under Federal law to allocate CDBG funds within California. Non-entitlement competitive grant program component per HSC 50470(b)(2)(B)(i)(I); 10 percent of the moneys will Non-entitlement formula component per HSC be allocated equitably among 50470(b)(2)(B)(i)(II) non-entitlement jurisdictions.
Program Funding Allocation TEN PERCENT OF MONEY ALLOCATED EQUITABLY AMONG NON-ENTITLEMENT JURISDICTIONS Funding allocated in proportion to Funding for non-entitlement each non- entitlement jurisdiction’s formula component divided by the share of the total worst-case number of local governments housing need in California’s non - eligible for the non-entitlement entitlement areas, based upon the formula component most recent HUD CHAS.
Eligible Activities for Formula Allocation Eligible Activities 1. Predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary Operating subsidies. 2. Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. 3. Matching portions of funds placed into local or regional housing trust funds. 4. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. 5. Capitalized Reserves for Services connected to the preservation and creation of new Permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014.
Eligible Activities for Formula Allocation Eligible Activities 6. Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. A. This activity may include subawards to Administrative Entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program funds for rental assistance to continue assistance to these households. B. Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6). An Applicant allocated funds for the new construction, rehabilitation, and preservation of Permanent supportive housing must incorporate the core components of Housing First, as provided in WIC Section 8255, subdivision (b).
Eligible Activities for Formula Allocation Eligible Activities 7. Accessibility modifications. 8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. 9. Homeownership opportunities, including, but not limited to, down payment assistance. 10 . Matching Funds invested by a county in an Affordable housing development project in a city within the county, provided that the city has made an equal or greater investment in the project. The county and the city investments must be in the form of grants or low-interest deferred loans to the project.
Threshold Requirements for Formula Allocation • Housing Element and APR • A Plan detailing – Use of funds for eligible activities, dollar amount and number of households per activity; – Evaluation of the needs of households at or below 60 percent AMI; – May be for a term of up to five years;
Eligible Activities for Competitive Allocation • Development of new multifamily rental housing that is Affordable to households at or below 60 percent of AMI; • Substantial rehabilitation of multifamily rental housing that will be Affordable to households at or below 60 percent of AMI, but which is not currently restricted as Affordable housing; • Assistance to persons experiencing or At risk of homelessness, including: rapid rehousing; rental assistance, or navigation centers; new construction, rehabilitation, or preservation of permanent or transitional rental housing
Selection Criteria for Competitive Allocation Applications for the non-entitlement competitive allocation will be evaluated using the following criteria (100 points) Priority Points – 25 points Criteria Description Points Priority If the applicant is a County that has a population of 200,000 or less 5 Points within the unincorporated areas of the County Prior If the applicant did not receive an award based on the formula 5 Award specified in 42 USC, Section 5306 in 2016 Applications to assist persons experiencing or at risk of homelessness, including but not limited to, through programs providing rapid rehousing, or rental assistance, or operating Assistance 15 for assistance to navigation centers shall receive all points OR Homeless Applications for the new construction, rehabilitation, or 15 Persons preservation of permanent or transitional rental housing in which all or a portion of the units are restricted to occupancy 15 by tenants who are homeless or at risk of homelessness shall receive all points Total Points 25
Selection Criteria for Competitive Allocation Evaluation Criteria — Maximum of 75 points Criteria Description Points Community Applicants will receive up to a maximum of 30 points based Need on the rate of households experiencing the most severe housing need according to the most recent HUD CHAS dataset in the Applicant Local government. Applicants will 30 receive points in proportion to this percentage Applicant Applicants with prior experience administering local, state or Administrativ federal affordable housing or community development e Experience programs or who partner with an entity with prior experience 15 in the implementation of local, state or federal affordable housing or community development programs Sponsor experience in affordable housing development and ownership OR Demonstrated 30 Program Operator experience (for non-development Capacity activities) Total Points 75
Deadlines and Funding Requirements for Formula Allocation • Standard Agreement required within 22 months; • Disbursement within 58 months; • If deadlines are not met; funds revert to Housing Rehab Loan Fund; • 100 percent disbursement permitted after Standard Agreement.
Questions/Comments/Feedback • 30-Day Public Comment Period ends on June 5, 2019, at 5:00 p.m. • Please send your questions/comments/feedback to PLHA@hcd.ca.gov
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