Title
Recommendation to Authorize the City Manager to Execute and Modify All Documents Deemed Necessary and Appropriate to Submit an Application to Round 3, and Future Rounds, of the Prohousing Incentive Program to the California Department of Housing and Community Development;
Adoption of Resolution Authorizing the City Manager to Apply for, Accept, and Appropriate Prohousing Incentive Program Grant Funds for the Day Center Relocation Project and the Linnet Corner Supportive Services; and
Recommendation to Authorize the City Manager to Provide Funding from the Prohousing Incentive Program to the Alameda Housing Authority (AHA) in an Amount Not-to-Exceed $250,000 for the Provision of Supportive Services in the Linnet Corner Permanent Supportive Housing.
This project is statutorily exempt from further environmental review pursuant to Public Resources Code section 21080.10 (services for people experiencing homelessness), and categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (Housing and Human Services 20361840)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The State of California Prohousing Designation Program (PDP), established in 2019, creates financial incentives for jurisdictions that are compliant with state housing laws, including Housing Element requirements, and have enacted local policies that facilitate housing production. The PDP is overseen by the California State Department of Housing and Community Development (HCD). On January 2, 2024, HCD announced Round 3 of the Prohousing Incentive Program (PIP) Funds for local governments as “over the counter” grants to automatically receive a share of available funding. On November 20, 2024, City of Alameda (City) was officially designated as a Prohousing Jurisdiction under the PDP with a total of 52 points and therefore eligible to receive an estimated $1 million in State funding. Staff recommends utilizing Round 3 PIP funds to provide additional needed funds for the City of Alameda’s Day Center Services relocation project, which will provide expanded capacity for day time homeless services and emergency overnight shelter as well as fund supportive services for low-income seniors for the Alameda Housing Authority project, Linnet Corner, which is permanent supportive housing anticipated to open in 2025. Staff recommends City Council authorize the City Manager to apply for the PIP, accept and allocate funds, and execute pertinent documents.
BACKGROUND
In 2019, the California State Legislature enacted Assembly Bill 101 and established the PDP to address the statewide housing crisis. The PIP fund is designed to encourage cities and counties to obtain Prohousing Designation. The PIP Program is funded through Chapter 364, Statutes of 2017 (SB 2, Atkins), which established the Building Homes and Jobs Trust Fund (Fund). The Fund utilizes real estate transaction fees collected at a county level to establish a permanent source of funding. Five percent of annual collections are deposited in a fund to be used for the PIP incentive program. The Program awards funds based on the Eligible Applicant’s PDP Score. On August 15, 2024, HCD released the Notice of Funding Availability (NOFA) for Round 3 of the PIP.
To be eligible for grant funding for the Round 3 NOFA, completed application materials must be submitted by email to HCD by December 31, 2024. HCD Guidelines state that applications will be reviewed for completeness, eligibility, and for meeting threshold requirements. Priority will be given to eligible applicants that have not received PIP funds in prior funding rounds. Eligible applicants awarded in prior funding rounds will only be eligible to receive an award once all previously unfunded eligible applicants receive an award. HCD is expected to announce awards in April 2025.
On September 17, 2024, City Council approved relocation of the Day Center and Safe Sheltering Program to Alameda Point Building 2, Wing 3. Staff is working with an architect to finalize design drawings and develop the final cost estimate for construction. The Day Center and Safe Sheltering program include a safe place to be indoors and receive meals and social services, emergency overnight shelter, and safe parking.
Linnet Corner (also commonly referred to as North Housing Senior Apartments) is the proposed new construction of a single four-story building with 64 units. Linnet Corner affordability levels will range between 30% and 40% of the Area Median Income (AMI) and will house Senior families, individuals, and formerly homeless veterans, who are 62+ in search of affordable housing. Through a partnership with the Alameda County Health Care Services Agency and the project’s leader service provider, LifeSTEPS, onsite social services and intensive case management will be provided free of charge to all residents and will include supportive services, connections/references to healthcare or other resources, and life and job skills training.
DISCUSSION
On November 20, HCD officially designated the City as a Prohousing Jurisdiction under the PDP with a total of 52 points, making the City eligible for approximately $1 million. The PIP grant program is designed to encourage jurisdictions to obtain a Prohousing Designation by rewarding jurisdictions that pursue additional Prohousing Policies to earn a higher Prohousing Designation Score. Under the PIP Program, grants are available for a variety of planning or implementation activities related to housing and community development.
Staff selected two one-time projects to support with these PIP funds. The majority of funds, $750,000, will be allocated toward the Day Center relocation project and the remaining funds, estimated at $250,000, will fund supportive services at Linnet Corner, a new Alameda Housing Authority permanent supportive housing project for seniors.
The City is in the process of developing architectural plans for the relocation of the Day Center, overnight emergency shelter, and overnight safe parking program currently located at 431 Stardust Place. The current location must be vacated by 2028 for construction of the next phase of the RESHAP project. The Day Center relocation project is anticipated to cost up to $3 million, including all soft costs. Of this, $2 million is already funded from a $1,250,000 State earmark (2023-24 California Budget Bill Jr.) and $750,000 from the General Fund. Allocation of an additional $750,000 of the PIP funds will support completing construction and build out of the new Day Center site.
AHA is currently constructing at Linnett Corner, permanent supportive housing for senior families, individuals and formerly homeless veterans who are 62+. Construction of this project is scheduled to be completed in mid to late 2025 with move in as soon as November 2025. Permanent Supportive Housing requires on-site supportive services to ensure residents have access to the resources that meet their individual needs including resources to support residents with maintaining their housing. This includes providing information to residents about available services in the community including but not limited to referral and advocacy, employment placement and training, education assistance, financial and debt counseling, childcare assistance, life skills, legal services, domestic violence support, meal support services, adult day care, attendant care, medication management, peer support and advocacy. Assistance will also be provided for the many other activities that tenants need to ensure their housing success, including transportation, deposit assistance, subsidies for coursework or training, and household items that they may lack. The additional $250,000 awarded through the PIP application will support the start-up of these supportive services.
To be eligible for the PIP Program, the City is required to meet the following requirements:
• Have a certified Housing Element in compliance with the Housing Element Law (Article 10.6 of Gove. Code)
• Have submitted all required Housing Element Annual Progress Reports
• Be compliant with all applicable State and Federal housing laws
• Have an adopted resolution authorizing the application to the Prohousing Incentive Program
• A complete application as determined by HCD
Additionally, eligible applicants must use award funds towards planning or implementation activities related to housing and community development limited to activities that conform with the following eligible uses pursuant to Health and Safety Code section 50470(b)(2)(D):
• The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, or rental housing that is affordable to extremely low-, very low-, low-, and moderate-income households, including necessary operating subsidies.
• Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas.
• Matching portions of funds placed into local or regional housing trust funds.
• Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of Section 34176 of the Health and Safety Code.
• Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014.
• Assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
• Accessibility modifications.
• Efforts to acquire and rehabilitate foreclosed or vacant homes.
• Homeownership opportunities, including, but not limited to, down payment assistance.
• Fiscal incentives or matching funds to local agencies that approve new housing for extremely low, very low, low-, and moderate-income households.
Moreover, Affirmatively Furthering Fair Housing (AFFH) is state law (Chapter 958, Statutes of 2018) and a requirement for receiving and remaining a Prohousing Designated Jurisdiction. AFFH is intended to eliminate housing discrimination and reverse adverse impacts of past discriminatory housing practices leading to disparities in fair and equal housing opportunities. The treatment of unhoused individuals has inherent intersections with public agencies’ duties to AFFH. As a direct impact of unfair housing practices, black people and people with disabilities are the most likely population to experience homelessness, be rent burdened or unable to afford housing, and face the highest rates of housing discrimination. Use of PIP funds for the Day Center Relocation Project and supportive services at Linnet Corner serves AFFH to support our most vulnerable populations.
Staff recommends using PIP funds to relocate the Day Center which serves people who are unhoused with services and shelter as well as implement supportive services at Linnet Corner for seniors 62+ and formerly homeless senior veterans. Both serve vulnerable populations in Alameda and comply with the PIP Program parameters.
ALTERNATIVES
• Authorize the City Manager to execute documents necessary to apply for PIP Round 3 to fund the Day Center relocation project and supportive services at Linnett Corner for low-income seniors.
• Authorize the City Manager to execute documents necessary to apply for PIP Round 3 and provide direction for funding different projects or funding amounts. Depending on the direction and research required, this may impact staff’s ability to apply for the current Round 3 funding opportunity, which is due December 31, 2024.
• Not authorize the City Manager to apply for the PIP program.
FINANCIAL IMPACT
Two potential award amounts are determined by adding an Eligible Applicant’s base award amount with an Eligible Applicant’s bonus award amount. The City is eligible for a base award of $500,000 based on population size in addition to a bonus award based on its PDP score. The City received a PDP score of 52 points meaning that the bonus award amount would be $500,000. Therefore, the City could potentially receive $1 million in PIP award funding. Awarded jurisdictions will be announced in April 2025.
All funds will go toward one-time expenses and will not require an ongoing financial commitment from the City. There is an opportunity to apply for additional PIP funding each year to further support community development for low-income vulnerable Alameda residents.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda 2040 General Plan Housing Element Goal 1 “Provide an ample supply of housing to meet the existing and projected housing needs,” and specifically actions to apply for funding sources that facilitate the construction of housing for lower income households in Alameda.
This action is also consistent with the Housing Element’s Strategic Plan priorities #HH3 - Further the preservation, rehabilitation, or construction of affordable housing in Alameda, and #HH8 Streamline housing production.
This action also aligns with the City Strategic Plan Priority to House All Alamedans and End Homelessness, specifically project HH2b for Sheltering: Safe Parking, Emergency Supportive Housing, Warming Shelter, Day Center.
ENVIRONMENTAL REVIEW
This action is not a project subject to environmental review under CEQA.
Additionally, this project is statutorily exempt from further environmental review pursuant to Public Resources Code section 21080.10 (services for people experiencing homelessness), and categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and 15061(b)(3) (Common Sense).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute and modify all documents deemed necessary and appropriate to submit an application to Round 3, and future rounds, of the Prohousing Incentive Program to HCD; adopt a resolution to authorize the City Manager to apply for, accept, and appropriate PIP grant funds for the Day Center Relocation Project and the Linnet Corner supportive services; and authorize the City Manager to provide funding from the PIP grant to the Alameda Housing Authority in an amount not-to-exceed $250,000 for the provision of supportive services in permanent supportive housing.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
By,
C’Mone Falls, Housing and Human Services Manager
Andre Fairley, Management Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Draft Prohousing Incentive Program Application
2. HCD Prohousing Designation Program Award Letter