To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
SUBJECT:
title
Authorize the Auditor Controller to Create a Dedicated, Interest-bearing Trust Account for the Permanent Local Housing Allocation (PLHA)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize Auditor Controller to create a dedicated, interest-bearing trust account in compliance with the PLHA grant to receive and disburse eligible funds and receive re-payments on loans issued through the PLHA grant.
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SOURCE OF FUNDING:
State of California Permanent Local Housing Allocation (PLHA) grant
DISCUSSION:
Humboldt County applied for and received grant money from the State of California Permanent Local Housing Allocation (PLHA) grant. To receive these funds, the county must set up an interest-bearing checking or savings account insured by the federal or state government (See attachment, Page 8, section 4.B). Staff is asking that your Board authorize the Auditor to set up an account as required by the funder.
The county applied for and received a 5-year allocation. Humboldt County has been awarded $344,448 for the first year. The estimated 5-year allocation may not exceed $2,066,693. This fund provides compliance with Exhibit D (7) (a) which states “PLHA loan and any interest thereon shall be repaid to the Local government’s PLHA account. The Local government shall reuse the repayments consistent with the Eligible Activities per Section 301 of the guidelines…” Eligible uses of these funds include 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. Other eligible uses are outlined in Exhibit A of the attached PLHA Standard Agreement.
FINANCIAL IMPACT:
The costs to prepare the grant are borne by the existing General Fund allocation. Grant funds will provide reimbursement for eligible programs, projects, and administration associated with this grant. Loan repayments will be deposited into the PHLA fund and used in accordance with eligible activities as per the standard agreement.
Expenditures related to the PLHA grant will be expended in the Planning & Building Department - Advanced Planning Unit (budget unit 1100-282). Funding for the grant is made available through the State of California Department of Housing and Community Development. The first year award is $344,448, and staff will return to your Board with a supplemental budget agenda item when the department receives the funding. The 5-year allocation for the grant may not exceed $2,066,693.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by seeking outside funding sources to benefit Humboldt County needs, protecting vulnerable populations, and creating opportunities for improved safety and health.
OTHER AGENCY INVOLVEMENT:
Department of Health and Human Services.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to authorize the PHLA account. This is not recommended because it does not align with the requirements of the Standard Agreement and jeopardizes the ability to obtain the grant funds.
ATTACHMENTS:
Contract 20-PLHA-15161
PREVIOUS ACTION/REFERRAL:
Board Order No.: I. 1.
Meeting of: July 14, 2020
File No.: 20-828