TO: ADAM PIRRIE, CITY MANAGER
FROM: MELISSA VOLLARO, RECREATION AND HUMAN SERVICES DIRECTOR
DATE: FEBRUARY 25, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
RESOLUTION APPROVING PARTICIPATION IN THE LOS ANGELES COUNTY PERMANENT HOUSING ALLOCATION PROGRAM AND DEDICATING THE CITY’S YEAR 5 FUNDS IN THE AMOUNT OF $60,687 TO THE CITY OF POMONA HOPE FOR HOME SHELTER AND ACCESS CENTER (FUNDING SOURCE: PERMANENT LOCAL HOUSING ALLOCATION FUNDS)
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SUMMARY
In 2017, Governor Brown signed Senate Bill 2 (SB 2), which established a $75 recording fee on real estate documents to increase the supply of affordable housing. The bill established the Permanent Local Housing Allocation (PLHA) program administered by the California Department of Housing and Community Development (HCD). The PLHA program provides a permanent source of funding to cities and counties to help meet the need for affordable housing and increase the supply of affordable housing units. Additionally, State law allows local agencies to expend the funding to assist in their efforts to prevent or reduce homelessness in their communities.
PLHA program funding is awarded as grants to jurisdictions based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program. Each jurisdiction is required to submit how it intends to allocate its PLHA program funds each year.
Staff recommends the City Council adopt a Resolution (Attachment) approving participation in the PLHA Program and dedicating 2025-26 PLHA funding to the City of Pomona’s Hope for Home Shelter and Access Center to enhance the City’s support for its unhoused community members.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, APPROVING PARTICIPATION IN THE LOS ANGELES COUNTY PERMANENT HOUSING ALLOCATION PROGRAM; and
B. Authorize the City Manager to enter into a contract with the City of Pomona in the amount of $60,687 for homeless support services.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
In September 2020, the City Council took action to dedicate its Year 1 (2020-21) allocation in the amount of $94,274 to the San Gabriel Valley Regional Housing Trust (SGVRHT) to support eligible affordable and permanent supportive housing in the San Gabriel Valley. Additionally in July 2021, the City Council again took action to dedicate its Year 2 (2021-22) allocation in the amount of $146,531 also to the San Gabriel Valley Regional Housing Trust (SGVRHT) to support eligible affordable and permanent supportive housing in the San Gabriel Valley.
In 2022-23 and 2023-24, the City of Claremont was not eligible to receive PLHA funding due to not having a certified Housing Element. However, since the certification of the City’s Sixth Cycle Housing Element in September 2024, the City is eligible to receive the PLHA Year 5 funding. The City of Claremont’s allocation for 2025-26 is $60,867, notably down from previous years. This is a result of a decrease in real estate transactions and a reduction in the amount of recording fees received by the State.
Since the funding will continue to fluctuate each year, and is significantly reduced from past years, staff recommends that the 2025-26 funding be allocated to our local emergency shelter, Hope for Home and the Access Center operated by the City of Pomona.
The staff cost to prepare this report and administer this program is estimated at $1,634 and is included in the operating budget of the Recreation and Human Services Department.
ANALYSIS
The Permanent Local Housing Allocation is a grant program funded by California State Property Transfer Fees resulting from the passage of Senate Bill 2 in 2017. This funding is based on the formula prescribed under federal law for the Community Development Block Grant program, and this is the fifth year these funds have been awarded. The City is required to indicate how it intends to allocate its PLHA program funds.
Since the allocation is much lower than previous years and the demand for emergency shelter beds has increased, staff recommends using the 2025-26 funding to secure two additional emergency shelter beds at the Hope for Home Shelter operated by the City of Pomona at an annual cost of $43,800. Additionally, the remaining funds of $17,067 would be allocated to the City of Pomona for its Access Center, which provides the following services for our unsheltered community members: access to meals, shower and laundry facilities, lockers, a mailroom, and a dog kennel. The allocation of Claremont’s PLHA funding requires the City to enter into an agreement with the City of Pomona for these services and would enhance the City’s support for its unhoused community members.
LEGAL REVIEW
The proposed Resolution has been reviewed and approved as to form by the City Attorney.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Melissa Vollaro
Recreation and Human Services Director
Attachment:
Resolution