Agenda

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C. 65

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	May 17, 2022

Contra

Costa

County

Subject:

Adopt Resolution No 2022/175 Authorizing Application to State Local Housing Trust Fund Program for $5 Million and Committing $5 Million Matching Funds

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/17/2022

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Amalia Cunningham, 925-655-2881

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: May 17, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2022/175 to authorize the County to submit a State Local Housing Trust Fund grant application for $5 million, and COMMIT $5 million in Measure X Local Housing Trust Fund as a match, to support permanent affordable housing for extremely low income households (income no more than 30-50% Area Median Income) and very low income households (income no more than 50% Area Median Income).

FISCAL IMPACT:

This recommendation would reserve $5 million from the previously-approved Measure X housing allocation of $10 million (Year 1) as a one-time match for the State's Local Housing Trust Fund program, leaving $5 million to allocate on other eligible activities for Year 1. It would need to be set aside for the duration of the grant evaluation period and, if the grant application is successful, expended as part of the grant activities. If the competitive grant is not approved, the $5 million from Measure X would become available once again for locally-eligible activities.

BACKGROUND:

On November 16, 2021, the Board of Supervisors approved a Local Housing Trust Fund (LHTF) as part of the Measure X Allocation Plan. (The Board is asked to codify the establishment of the LHTF by resolution as a separate item on the May 17, 2022 Board agenda.) Leveraging scarce local dollars was a key factor in the formation of the LHTF. The Board's action identified building permanent affordable housing for households with incomes of no more than 50% Area Median Income (AMI) as the top priority. Grantwriting to augment the fund is specified as an eligible use. Since that time, an interdepartmental staff team has been meeting to plan community engagement and outreach and ultimately develop guideline recommendations to bring to the Board this summer.

Meanwhile, in April 2022, the State of California released a Notice of Funds Available for its Local Housing Trust Fund Grant Program (Program), which is a competitive matching grant with a focus on providing housing for extremely low and very low income households. At least 30% must be spent towards units reserved for households earning no more than 30% AMI; the balance net of allowed administrative costs will be spent towards units reserved for households earning no more than 50% AMI. The Program maximum award is a one-time $5 million, and applicants must show capacity to match the award. Since the LHTF was created with $10 million in Year 1 and $12 million in Year 2, the County has the ability to match if the Board determines to set aside $5 million of the initial allocation to match the grant if received. If received,

the total amount for affordable housing for extremely low and very low income households would be $10 million ($5 million LHTF and $5 million State grant), leaving $5 million for additional funding for any other locally-eligible activities as ultimately determined by the Board. Applicants are allowed up to 5 percent of Program Funds and additionally up to 5 percent of Matching Funds for administrative expenses. If the grant application is not successful, the $5 million match would return to the LHTF for all eligible activities.

If the grant is received and the new set-aside amount of $10 million is available for affordable housing for income-targeted households, the County would then make funding recommendations and awards through a public process such as the established annual awards cycle for State and Federal housing funds administered by the Department of Conservation and Development, and approved by the Board of Supervisors in a public hearing. The State would then provide funds to the County for the approved projects on a reimbursement basis. Funds may not be awarded to a project in a jurisdiction that is not in compliance with the Housing Element cycle in effect at the time.

Resolution No. 2022/175 contains the State-required language to authorize the grant application, and must be accompanied by Attachment 1 per the State's requirements.

CONSEQUENCE OF NEGATIVE ACTION:

If the Resolution is not adopted and the commitment of a matching $5 million is not made, the County would not be able to submit an application for the State's Local Housing Trust Fund Program.