Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond J. Hodges, Director of Housing
Subject: Permanent Local Housing Allocation Funding Application
RECOMMENDATION:
title
Adopt a resolution:
A) Approving, adopting, and authorizing the President of the Board of Supervisors and the Clerk of the Board to execute a resolution substantially in the form of Attachment A as required by the California Department of Housing and Community Development (“CA HCD”) approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2022 and 2023 funding years of the State Permanent Local Housing Allocation (“PLHA”) Program; and
B) Representing and certifying that if the County of San Mateo Department of Housing (“DOH”) receives a grant of PLHA funds from the CA HCD pursuant to the May 12, 2025 PLHA amended Notice of Funding Availability (“PLHA NOFA”), provided at Attachment B, that DOH will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA program, as well as any and all contracts DOH may have with the CA HCD; and
C) Authorizing and directing the Director of the DOH or designee(s) to submit a grant application, substantially in the form provided at Attachment C, for the PLHA funds in an amount not to exceed $1,831,715 as soon as the CA HCD determines the County’s Housing Element is in substantial compliance or upon such date as the prerequisites for the application are met, and to award such funding to qualified service providers through a NOFA or an over the counter process that meets the requirements of PLHA regulations, with adjustments to be made to individual awards on a pro rata basis once final allocations have been confirmed by the CA HCD; and
D) Authorizing the Director of the DOH or designee(s) to execute the PLHA Program application, the PLHA standard agreement and any subsequent amendments or modification thereto, as well as any other documents which are related to the program or the PLHA grant awarded to applicant, as the CA HCD may deem appropriate; and
E) Authorizing the Director of the DOH, or designee(s), acting in consultation with the County Attorney, to negotiate and execute any and all agreements, documents, certificates and amendments with awardees of PLHA funding as may be necessary and advisable and within the scope of funding received pursuant to this resolution; and
F) Authorizing the Director of the DOH, or designee(s), acting in consultation with the County Attorney, to negotiate and execute any and all agreements, documents, certificates and amendments with three additional awardees of PLHA 2021 funding outlined in Attachment D as may be necessary and advisable and within the scope of funding received pursuant to this resolution.
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BACKGROUND:
The Permanent Local Housing Allocation (“PLHA”) Program, which is administered by the State of California Department of Housing and Community Development (“CA HCD”), is authorized to provide up to $335 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)). The County of San Mateo, through its Department of Housing (“DOH”), is an eligible local government that has applied for and received a five-year PLHA formula estimated allocation not to exceed $7,257,300 program funds to administer to one or more eligible activities.
The PHLA allocation was determined following the approvals by this Board on May 19, 2020 under Resolution No. 077442, which authorized and directed the DOH to develop and submit an application to CA HCD for PLHA 2019 funds on behalf of the County. On June 21, 2020, the Board approved Resolution No. 077602, which authorized and adopted the initial 2019-2023 PLHA Plan.
On October 18, 2022, the Board of Supervisors approved Resolution No. 079228, which authorized and directed the DOH to develop and submit an application to HCD for PLHA 2020 and 2021 funds on behalf of the County and also approved an amended 2019-2023 PLHA Plan, which was subsequently approved by the CA HCD. The amended 2019-2023 PLHA Plan, in accordance with the County’s Housing Element, provides funding for PLHA Activity number 1, “The 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”; and PLHA Activity number 6, “Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.”
On December 29, 2023, the CA HCD issued a NOFA for PLHA calendar year 2022 and 2023 funds.
On May 12, 2025, the CA HCD released an amended version of the December 29, 2023, Notice of Funding Availability (“PLHA NOFA”). As part of the application requirements, CA HCD is requiring applicants to obtain a Governing Board Authorizing Resolution that substantially conforms to CA HCD’s form. The CA HCD form resolution is submitted with this memorandum as Attachment A.
As a pre-requisite for applying for PLHA funds, CA HCD requires that jurisdictions demonstrate a substantially compliant housing element and submittal of the applicable Annual Progress Report(s). Therefore, the DOH intends to submit an application as soon as the County has met these prerequisites. DOH seeks authorization to apply for calendar year 2022 and 2023 PLHA funds for an amount not to exceed $1,831,715.00 ($1,036,938.00 from Calendar Year 2022; and $794,777.00 from Calendar Year 2023 funds). Among other purposes, the funds will be used to assist persons experiencing or at risk of homelessness and to increase or preserve the supply of housing for extremely low to moderate-income households.
In addition to applying for 2022 and 2023 PLHA funds, DOH is seeking approval for PLHA funding commitments totaling Two Hundred and Fifty-Two Thousand Six Hundred and Seventy-Three Dollars and Seventy-Four Cents ($252,673.74) of 2021 PLHA funds to Community Overcoming Relationship Abuse (CORA) for capital improvements of their safe house emergency shelters ($84,224.58) and to amend and increase the amount of FY25-26 PLHA funding previously allocated to Samaritan House in support of their shelter operations ($84,224.58) and LifeMoves in support of their Haven House shelter operations ($84,224.58) as a result of an Over-the-Counter solicitation process made possible primarily by a one-time infusion of COVID-era funding which supplanted previous PLHA allocations.
DISCUSSION:
The requested Board actions will authorize the County’s submissions and implementation of PHLA funds received for eligible activities. Staff therefore recommends that the Board authorize the Director of DOH, or their designee, to apply for, to approve and accept PLHA funds, to execute the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as agreements and other documents necessary to award PHLA funds within the scope of funding received, as set forth in the resolution accompanying this memorandum. The recommended actions include adopting an additional resolution in the form required by the CA HCD, provided at Attachment A.
Authorizing these actions now will allow DOH to timely apply for these PLHA funds without having to seek this Board’s authorization again once the County’s Housing Element receives substantial compliance. The PLHA application must be submitted by February 2026.
The calendar year 2022 and 2023 PLHA funds received in connection with these actions will be deployed in accordance with the County’s previously amended five-year PHLA Plan which identifies housing, community development, and economic development needs throughout the County.
The County Attorney has reviewed and approved the resolution as to form.
COMMUNITY IMPACT:
These funds are designed to improve the quality of services provided for persons experiencing homelessness and to support the construction of new affordable housing units for lower-income residents of San Mateo County, one of the most expensive housing markets in the State.
FISCAL IMPACT:
The amount of the PHLA grant would be $1,831,715.00 in calendar year 2022 and 2023 funds. These funds are provided through a state program so there is no Net County Cost.