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Home My WebLink AboutFunding Availability for Navigation Center/Homeless Shelter 10/8/2019 FUNDING -= �-�U N I NG AVAILABILITY LITY FOR A NAVIGATION CENTER/ HOMELESS SHELTER City Council Study Session October 7, 2019 S � S r $ $ J Issue Background ► On September 3, Councilmember Posey submitted an H item to: ► "Direct the City Manager and Community Development Director, along with the City Attorney to report back to the City Council with a plan on how the City can ensure that the City is able to use the SB 2 funds that would be allocated to HB for homelessness prevention activities, including providing funding for a Navigation Center locally or regionally." ► City Council discussion included an interest in understanding additional funding sources for a navigation center/ homeless shelter ► This study session is in response to Council direction to report back on possible funding sources, including SB 2 funds, to apply toward homelessness solutions /o - 7 09- /Ciit/.4,� ��7//.5�� ir�,sc�nJ ��T�-�✓,r�=� 1 10/8/2019 What is SB 2? Governor Brown signed the Building Homes and Jobs Act (SB 2) in 2017 SB 2 establishes a $75 recording fee on real estate documents to increase the supply of affordable homes in California Because the number of real estate transactions recorded in each county will vary from year to year, the revenues collected will fluctuate Each eligible city can receive SB 2 funds through various application processes SB2 funding recapture... SB 2 Funds - Revenue Allocation Year 1 SB 2 Year 1 SB 2 Homelessness Planning Grants Funds Year 1 State-Administered State-Administered 50%Planning Grants' 50%homelessness programs '5%for Technical Assistance in coordination with CPR Year 2 and Beyond Locally Administered State-Administered 70%Affordable Housing 15%middle-income rental 5%production incentive 10%farmworker housing Permanent Local Housing Allocation 2 10/8/2019 SB2 - Year 1 Funding Eligibility Overview To Qualify For SB2 Funds ► Planning Grant Eligibility (50% of all Year 1 SB2 Funds) ► Have an HCD-compliant housing element ► Have submitted a recent Annual Progress Report ► Demonstrate a nexus to accelerating housing production ► Demonstrate that the application is consistent with State Planning Priorities ► Homeless Funding Eligibility (50% of all Year 1 S132 Funds) ► Funding distributed to counties, large cities, and continuum of care (COC) agencies ► In Orange County, funding eligibility criteria required entities to have a State HCD compliant Housing Element SB2 - Year 1 Funding Eligible SB2 Funding Uses ► Planning Grant Funding Eligible Uses ► Updates to general plans, community plans, local planning related to implementation of sustainable communities strategies, or local coastal plans ► Updates to zoning ordinances No. Environmental analysis that eliminate the need for project-specific review ► Municipal process improvements that expedite local planning and permitting ► Homeless Funding Uses ► $53.3M generated Statewide ► $1.9M distributed to Orange County and COC ► $1.2M allocated by North County SPA for two navigation centers ► Funds procured through a competitive application process 3 10/8/2019 County of Orange Service Planning Areas Orange County SPA's \ S�rvlc�rlonnlnq A,w� TOO. - (riuvw `.. .o...moo. SB2 - Year 1 Fundinp Planning Grant Program Process / Timeline $625K is available to Huntington Beach, if we are eligible to apply Technical assistance Beginning early 2019 NOFA release March 2019 Over-the-counter period 8 months from NOFA release date,ending on November 30,2019 Awards Beginning summer 2019 and ongoing with potential for supplemental round 4 10/8/2019 SB2 - Year 2+ Funding Permanent Local Housing Allocation (PLHA) ► State estimates that $165M available for the PLHA program annually 83% (estimated $138M) will be made available to local governments that receive a Community Development Block Grant (CDBG) allocation utilizing the same formula Huntington Beach is a CDBG entitlement city If Huntington Beach is eligible for this funding, we could receive -$481 K/year Of note, if we are eligible, additional S132 PLHA funds are available through the OC COC if Huntington Beach partners with other cities in the Central SPA Notice of Funding Availability (NOFA) of SB2 PLHA funds is anticipated to be released any day SB2 - Year 2+ Funding PLHA Funding Process / Eligibility Criteria To access PLHA S132 funds, agencies will be required to submit an application to the State HCD detailing how funds will be used to address the following: To meet the unmet share of the regional housing needs allocation To increase the supply of housing for households at or below 60% annual median income (AMI) ► To be eligible for S132 PLHA funds, participating agencies must have an adopted and compliant housing element as certified by State HCD ► In addition, eligible agencies must submit their most recent Housing Element Annual Progress Report per Government Code Section 65400 5 10/8/2019 SB2 - Year 2+ Funding PLHA Funding Eligible Uses 1. The predevelopment,development,acquisition,rehabilitation,and preservation of multifamily,residential live-work,rental housing th extremely low,very low,low,and 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%of AMI,or 150%of AMI in high-co 3. Matching portions of funds placed into local or regional housing trust funds. e. Matching portions of funds av a ow and Moderate Income Housing I i i,i i sion(d)of Section 34176 and Safety Code. 5. C ed reserves for services connected to the creation of new permanent supportive housing,including but not limited to,develop rough the Veterans Housing and Homelessness Prevention Bond Act of 2014. 6. Assisting persons who are experiencing or at-risk of homelessness, includi providing rapid rehousing, rental assistance, navigation centers, emergen shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. This activity may include using PLHA funds for continued assistance to households assisted with California Emergency Solution and Housing (CESH) Program funds. 7. ssibitity modifications. a. Efforts to a d rehabilitate foreclosed or vacant homes. v. Homeownership opportunities,1 "led to,down payment assistance. 10. Fiscal incentives or matching funds to local agencies that approve new housing for extremely low,very low,low,and moderate-i holds. SB2 Funding Overview Potentially Available SB2 Funds For HB Funding Type I Year 1 SB 2 Homelessness Funds $0* Year 1 SB 2 Planning Grants $625,000 Year 2 Et Beyond: PLHA $481,000** 5-Year Cumulative PLHA Funds: $2.405M** *It is difficult to know if HB had been eligible to submit an application whether the application would have been competitive. The County expressed a preference for collaboration which put the North SPA at an advantage. **This number will fluctuate depending on the actual amount of real estate transactions that occur from year to year. 6 10/8/2019 Accessing SB2 Funding Requires An HCD-Compliant Housing Element Staff engaged HCD to determine the process to obtain an HCD compliant Housing Element Based on input from HCD, the following project timeline has been prepared by staff: Prepare draft HE Amendment Now-10/10/19 ®Send to HCD for informal review(30 days) 10/10/19-11/10/19 ®Revise Draft HE Amendment 11/11/19-11/22/19 Submit to HCD for 60-day review/concurrent 60- 11/25/19 1/23/20 day noticed public review a) Stakeholder meeting b) CC study session c) Direct mail/email notification d) Post on website,social media,CM newsletter, ®Obtain HCD finding of compliance letter 1/23/20 City Council Public Hearing 2/3/20 HCD Funding Sources to address Homelessness Funding Program Total Amount Supportive Housing Multifamily Housing Program $77 million 2019 Veterans Housing fr Homeless Prevention Program $75 million 2018 Multifamily Housing Program $47 million in 2015 - $1.5 billion in SB 3 funds No Place Like Home $91 million in 2020 competitive funds for large counties Emergency Solutions Grants Available to communities that do not receive directly from HUD California Emergency Solutions It Housing $29 million in 2019 7 10/8/2019 Other Possible Funding Sources To Address Homelessness ► CA Department of Health Care Services ► Whole Person Care Pilot Program ► ACA Section 2703 Health Home Program ► Mental Health Services Act ► Special Needs Housing Program ► CA Department of Social Services ► Bringing Families Home Program ► Home Safe Program ► Housing 8 Disability Advocacy Program Questions Et Feedback 8 10/4/2019 LIM FUNDING AVAILABILITY FOR A NAVIGATION CENTER/ HOMELESS SHELTER City Council Study Session October 7, 2019 $ $ $ $ Ad $ k v is 1 \ 'r III rw�3 Issue Background ► On September 3, Councilmember Posey submitted an H item to: No. "Direct the City Manager and Community Development Director, along with the City Attorney to report back to the City Council with a plan on how the City can ensure that the City is able to use the SB 2 funds that would be allocated to HB for homelessness prevention activities, including providing funding for a Navigation Center locally or regionally." ► City Council discussion included an interest in understanding additional funding sources for a navigation center/ homeless shelter ► This study session is in response to Council direction to report back on possible funding sources, including SB 2 funds, to apply toward homelessness solutions SUPPLEMENTAL COMMUNICATION Meeong Dade. /o v 7' 1 10/4/2019 What is SB 2? ► Governor Brown signed the Building Homes and Jobs Act (SB 2) in 2017 ► SB 2 establishes a $75 recording fee on real estate documents to increase the supply of affordable homes in California Because the number of real estate transactions recorded in each county will vary from year to year, the revenues collected will , fluctuate Each eligible city can receive SB 2 funds through various application processes SB2 funding recapture... SB 2 Funds - Revenue Allocation Year 1 SB 2 Year 1 - SB 2 Homelessness Planning Grants Funds Year t State-Administered State Administered 50%Planning Grants' 50%homelessness programs '5%for Technical Assistance in coordination with OPR Year 2 and Beyond Locally Administered State-Administered 70%Affordable Housing t 5%middle-income rental 5%production incentive 10%farmworker housing Permanent Local Housing Allocation 2 10/4/2019 SB2 - Year 1 FundinQ Eligibility Overview To Qualify For SB2 Funds ► Planning Grant Eligibility (50% of all Year 1 SB2 Funds) ► Have an HCD-compliant housing element ► Have submitted a recent Annual Progress Report ► Demonstrate a nexus to accelerating housing production ► Demonstrate that the application is consistent with State Planning Priorities i Homeless Funding Eligibility (50% of all Year 1 SB2 Funds) Funding distributed to counties, large cities, and continuum of care (COC) agencies In Orange County, funding eligibility criteria required entities to have a State HCD compliant Housing Element SB2 - Year 1 Funding Eligible SB2 Funding Uses ► Planning Grant Funding Eligible Uses Updates to general plans, community plans, local planning related to implementation of sustainable communities strategies, or local coastal plans ► Updates to zoning ordinances ► Environmental analysis that eliminate the need for project-specific review ► Municipal process improvements that expedite local planning and permitting ► Homeless Funding Uses $53.3M enerated Statewide $1.9M distributed to Orange County and COC $1.2M allocated by North County SPA for two navigation centers Funds procured through a competitive application process 3 10/4/2019 County of Orange Service Planning Areas Orange County SPA's S—.-Plan.,.,Alma, AL SB2 - Year 1 Funding Planning Grant Program Process / Timeline ► $625K is available to Huntington Beach, if we are eligible to apply Technical assistance Beginning early 2019 NOFA release March 2019 Over-the-counter period 8 months from NOFA release date,ending on November 30,2019 Awards Beginning summer 2019 and ongoing with potential for supplemental round 4 10/4/2019 SB2 - Year 2+ Funding Permanent Local Housing Allocation (PLHA) State estimates that $165M available for the PLHA program annually 83% (estimated $138M) will be made available to local governments that receive a Community Development Block Grant (CDBG) allocation utilizing the same formula Huntington Beach is a CDBG entitlement city If Huntington Beach is eligible for this funding, we could receive -$481 K/year Of note, if we are eligible, additional SB2 PLHA funds are available through the OC COC if Huntington Beach partners with other cities in the Central SPA Notice of Funding Availability (NOFA) of S132 PLHA funds is anticipated to be released any day a SB2 - Year 2+ Funding PLHA Funding Process / Eligibility Criteria l► To access PLHA S132 funds, agencies will be required to submit an application to the State HCD detailing how funds will be used to address the following: To meet the unmet share of the regional housing needs allocation To increase the supply of housing for households at or below 60% annual median income (AMI) To be eligible for S132 PLHA funds, participating agencies must have an adopted and compliant housing element as certified by State HCD In addition, eligible agencies must submit their most recent Housing Element Annual Progress Report per Government Code Section 65400 5 10/4/2019 SB2 - Year 2+ Funding PLHA Funding Eligible Uses 1. The predevelopment,development,acquisition,rehabilitation,and preservation of multifamily,residential live-work,rental housing th - extremely low,very low,low,and moderate-income households,including necessary operating subsidies. 7. Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120%of AMI,or 150%of AMI in high-co 3. Matching portions of funds placed into local or regional housing trust funds. 4. Matching portions of funds a e ow and Moderate Income Housing Asset Funds pur ion(d)of Section 34176 .Health and Safety Code. - s. C ed reserves for services connected to the creation of new permanent supportive housing,including but not limited to,develop u rough the Veterans Housing and Homelessness Prevention Bond Act of 2014. 6. Assisting persons who are experiencing or at-risk of homelessness, includi providing rapid rehousing, rental assistance, navigation centers, emergen shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. This activity may include using PLHA funds for continued assistance to households assisted with California Emergency Solution and Housing (CESH) Program funds. 7. sibiliry modifications. a. Efforts to a d rehabilitate foreclosed or vacant homes. A"•'- •. Homeownership opportunities,1n 'ted to down payment assistance. 10. Fiscal incentives or matching funds to local agencies that approve new housing for extremely low,very low,low,and moderate-i ld households. SB2 Funding Overview Potentially Available SB2 Funds For HB Funding Type Year 1 SB 2 Homelessness Funds $0* Year 1 SB 2 Planning Grants $625,000 Year 2 It Beyond: PLHA $481,000** 5-Year Cumulative PLHA Funds: $3.655M** LLi*It s difficult to know if HB had been eligible to submit an application whether the i,. on would have been competitive. The County expressed a preference for tion which put the North SPA at an advantage. umber will fluctuate depending on the actual amount of real estate ons that occur from year to year. 6 10/4/2019 Accessing SB2 Funding Requires An HCD-Compliant Housing Element ► Staff engaged HCD to determine the process to obtain an HCD compliant Housing Element ► Based on input from HCD, the following project timeline has been prepared by staff: Prepare draft HE Amendment Now-10/10/19 ®Send to HCD for informal review(30 days) 10/10/19-11/10/19 ®Revise Draft HE Amendment 11/11/19-11/22/19 Submit to HCD for 60-day review/concurrent 60- 11/25/19-1/23/20 day noticed public review a) Stakeholder meeting b) CC study session c) Direct mail/email notification d) Post on website,social media,CM newsletter, ®Obtain HCD finding of compliance letter 1/23/20 City Council Public Hearing 2/3/20 Other Possible Funding Sources To Address Homelessness ► HCD Funding P. No Place Like Home Program P. Veterans Housing a Homelessness Prevention Program ► Housing for a Healthy California Program ► California Emergency Solutions Housing Program ► Emergency Solutions Grant Program ► CA Department of Health Care Services P. whole Person Care Pilot Program ► ACA Section 2703 Health Home Program ► Mental Health Services Act P. Special Needs Housing Program I. CA Department of Social Services P. Bringing Families Home Program ► Home Safe Program ► Housing Et Disability Advocacy Program 7 Questions 8: Feedback