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CC – Item 3B – Public Hearing to Adopt Resolution No. 2026-11, Authorizing an Amendment to the CA Department of Housing and Community Development Permanent Local Housing Allocation (PLHA) Program Five-Year PlanROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR X COUNCIL FROM: BEN KIM, CITY MANAGER DATE: MARCH 10, 2026 SUBJECT: PUBLIC HEARING TO ADOPT RESOLUTION NO. 2026-11, AUTHORIZING AN AMENDMENT TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROGRAM FIVE-YEAR PLAN SUMMARY In 2022, the California Department of Housing and Community Development (HCD) awarded the City $1,983,626 in PLHA funds for housing -related projects and programs that assist in addressing the unmet housing needs of the City. As part of the process, the City adopted a PLHA Program Five -Year Plan, which outlined the City's strategy to carry out activities that will increase the affordable housing supply. During that time, the City intended to allocate funds for new homeownership units. To date, the funds have not been expended and although the amendment period for the 2019, 2020, and 2021 PLHA allocations have expired, HCD is authorizing the City a one-time exception to amend the Five -Year Plan. The City's adopted PLHA Program Five -Year Plan established how the 2019 through 2023 allocations would be used in accordance with PLHA program requirements. To ensure the City expends the funds to increase the supply of affordable housing in the City, the PLHA funds must be reassigned to other eligible activities. The HCD PLHA Guidelines provide ten eligible activities that a City may elect for their five-year plan. After reviewing the list of eligible activities, staff is proposing to reallocate the funds to the following: Activity 2 - Assist with development of the Marshall/Hart Projects. The Marshall Hart Projects will consist of a new residential development with for -sale residential units, some of which would be offered at an affordable housing cost to households with incomes at or below 150 percent of the Area Median Income. AGENDA ITEM 3.11 City Council Meeting March 10, 2026 Page 2 of 3 2, Activity 9 - Support Homeownership Assistance Program, including down payment assistance. The Homeownership Assistance Program will provide financial assistance to qualified homebuyers with household incomes at or below 150 percent of the Area Median Income in the form of a zero -interest, deferred loan with no monthly payments, which may be used to cover a portion of the down payment and eligible closing costs associated with the purchase of a primary residence. These activities are eligible under the PLHA program and align with the City's current housing priorities, including the City's Housing Element. The amendment updates the allocation of funds to reflect current project feasibility and implementation timing. STAFF RECOMMENDATION That the City Council: 1. Conduct the Public Hearing and take any public comments; 2. Adopt Resolution No. 2026-11 (Attachment "A") authorizing the amendment to the PLHA Program Five -Year Plan ("Attachment B"); and 3. Authorize the Mayor or her designee to execute a Standard Agreement, any amendments, and all other related program documents with HCD PLHA Program. FISCAL IMPACT There is no impact to the City's General Fund. Administrative costs associated with the program implementation will be funded using the allowable administrative portion of the PLHA grant consistent with HCD's program guidelines. Any required budget amendments related to this item will be incorporated into the Mid -Year Budget process in March. ENVIRONMENTAL ANALYSIS This agenda item does not constitute a project under the California Environmental Quality Act ("CEQA"), and it can be seen with certainty that it will have no impact on the environment. As such, this matter is exempt under CEQA. STRATEGIC PLAN IMPACT The amendment aligns with the City's Strategic Plan Mission of "Rosemead provides quality programs, services, and support that builds community, increases opportunity, and makes Rosemead a great place to live, work, and play." City Council Meeting March 10, 2026 Page 3 of 3 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process, which includes publication in the Rosemead Reader, and posting of the notice at the six public locations on February 26, 2026. Prepared by: Deborah Sottek Contract Housing Consultant Submitted by: Lily alenzuela Director of Community Development Attachment A: Resolution No. 2026-11 Attachment B: PLHA Program Five -Year Plan Attachment A Resolution No. 2026-11 RESOLUTION NO. 2026-11 A RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AMENDING THE PERMANENT LOCAL HOUSING ALLOCATION PROGRAM (PLHA) FIVE-YEAR PLAN WHEREAS, the State of California ("State"), Department of Housing and Community Development ("Department") is authorized to provide up to $296 million under the Senate Bill (SB) 2 Permanent Local Housing Allocation ("PLHA") 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)); and WHEREAS, the State HCD issued a Notice of Funding Availability ("NOFA") dated October 15, 2024 under the PLHA Program; and WHEREAS, the City of Rosemead is an eligible local government who has applied for program funds to administer one or more eligible activities; and WHEREAS, Resolution No. 2022-61 was adopted by the City Council on November 8, 2022, authorizing the submittal of an application and associated PLHA Program Five -Year Plan for the predevelopment and acquisition of rental/ownership housing; and WHEREAS, the City Council desires to approve the amendments to the City's PLHA Program Five -Year Plan to reallocate the 2019 through 2023 PLHA funds to support the predevelopment and development costs of the Marshall/Hart Project under Activity 2 and to establish homeownership opportunities under Activity 9; and WHEREAS, the City Council desires to approve the amendment to the PLHA Program Five -Year Plan and to submit to State HCD in accordance with the PLHA Program requirements. THE ROSEMEAD CITY COUNCIL HEREBY RESOLVES AS FOLLOWS: SECTION 1: If the City receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it 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 City may have with the Department. SECTION 2: City is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix B of the current NOFA $2,059,428 in accordance with all applicable rules and laws. SECTION 3: City hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules, and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the City and the Department. SECTION 4: Pursuant to Sections 302(c)(4) and 302(c)(5) of the Guidelines, City's PLHA Plan Amendment for the 2019-2023 Allocations is attached to this resolution, and City hereby adopts this PLHA Plan Amendment and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines. SECTION 5: City certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest. SECTION 6: City certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), "entity" means a housing developer or program operator, but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation. SECTION 7: Pursuant to City's certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. SECTION 8: The City Council certifies that funds used for the acquisition, construction or rehabilitation of for -sale housing projects or units within for -sale housing projects, the City shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in PLHA Guidelines Section 302(c)(6)(A), (B) and (C). SECTION 9: The City shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department. SECTION 10: The City Manager or his or her designee is authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to City, as the Department may deem appropriate. SECTION 11: This Resolution shall take effect immediately upon adoption. PASSED, APPROVED AND ADOPTED this 10"' day of March, 2026. ATTEST: Sandra Armenia, Mayor APPROVED AS TO FORM: Rachel H. Richman, City Attorney Ericka Hernandez, City Clerk 2 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2026-11 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 10`h day of March, 2026, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: 3 Ericka Hernandez, City Clerk Attachment B PLHA Program Five -Year Plan Permanent Local Housing Allocation (PLHA) Formula Allocation Notice of Funding Availability (NOFA) October 15, 2024 2024 Application for 5 -Year Plan Amendment State of California Gavin Newsom, Governor Business, Consumer Services and Housing Agency Tomiquia Moss, Secretary Department of Housing and Community Development Gustavo Velasquez, Director Program Design and Implementation, PLHA Program 651 Bannon Street, Sacramento, CA 95811 Email: PLHA(o)hcd.ca.gov Website: Permanent Local Housing Allocation Program (PLHA) Allocation Years New & Streamlined Submission Deadline 5 -Year Plan Amendment Submission Deadline Year 1 (2019) n/a n/a Year 2 (2020) n/a n/a Year 3 (2021) 02/28/2025 06/30/2025 Year 4 (2022) 02/28/2026 06/30/2026 Year 5 (2023) 02/28/2027 06/30/2027 End of Document a (ap o c E& v c Q o c o c n qQ a o '�-� d E m v m wo y cd -may {cps $ wa E E o 0 Ea 90 0 f J cW a° c c «c u c E c 0_ � O m� y O U yAe� 5 `o rn c No IS TLL 2a am nE R 3 EQii E Em co r w L a ap ..Zc Wac _W ,�poy W Z v g a c V > a m a 3 r m>> p �° qua o w o o a M E�v c >> c v �_n n m o Q �a me pL W O c o O 0 E c nU 5 C o G = n u d QW;O a A avd m o NOO C q H W4d C U o Q d g C N O U m d L z. 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