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Page 2 of 5 <br />Professional Services Agreement with Tri-Valley Haven for shelter operating costs. <br /> <br /> <br />BACKGROUND <br />In September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the <br />Building Homes and Jobs Act, which established a $75 recording fee on real estate <br />documents, with the funds collected to be directed toward increasing the supply of affordable <br />housing. SB2 established the Permanent Local Housing Allocation (PLHA) program <br />administered by the State of California, Department of Housing and Community Development <br />(HCD). The PLHA program provides a permanent source of funding to cities and counties to <br />help meet local affordable housing needs. <br /> <br />Under the PLHA program, funding is provided through formula-based grants to entitlement <br />jurisdictions based on a formula prescribed under federal law for the Community Development <br />Block Grant (CDBG) program over a five-year period. Title 42 U.S. Code § 5306 established <br />the CDBG Entitlement Program to provide federal CDBG grant funds to entitled cities with <br />populations of at least 50,000 to develop viable urban communities for low- and moderate- <br />income persons. Over the prior five-year period (2019-2023), and based on the formula, the <br />City is or was eligible to receive an estimated $873,166 (see Table A below). The City has <br />already applied for and received PLHA funds for 2019, 2020 and 2021; the City Council is now <br />requested to authorize an application for the remaining funds for CYs 2022 and 2023. <br /> <br />Table A. City of Pleasanton Estimated Five-Year Allocation of PLHA Funds <br />City of Pleasanton Estimated Five-Year Allocation <br />2019 $ 151,089 <br />2020 $ 234,839 <br />2021 $ 258,433 <br />2022 $ 129,527 <br />2023 $ 99,278 <br />Total $ 873,166 <br /> <br /> <br />DISCUSSION <br />PLHA funds may be used for a wide range of programs, including to increase the City’s <br />affordable housing stock, as well as to address homelessness. The eligible use category <br />proposed by the City for the PLHA funding is category 301(a)(6): “Assisting persons who are <br />experiencing or at-risk of homelessness, including, but not limited to, providing rapid <br />rehousing, rental assistance, supportive/case management services that allow people to obtain <br />and retain housing, operating and capital costs for navigation centers and emergency shelters, <br />and new construction, rehabilitation, and preservation of permanent and transitional housing." <br /> <br />The City applied for three years of funding (reflecting actual 2019, 2020, and 2021 program <br />revenues) in the amount of $644,361 in October 2022, for which the City signed a Standard <br />Agreement with HCD upon receipt of the funds. As authorized through the City Council's <br />annual Housing and Human Services Grant Award process, the PLHA funds were split <br />Page 89 of 373