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Affirm submission of the 2023 Permanent Local Housing Allocation (PLHA) Five-Year Plan Amendment in the amount of $560,188; Adopt a resolution authorizing submission of the PLHA Amendment; and Authorize the County Administrator, pending County Counsel concurrence, to execute any allocation award and other grant-related documents necessary to accept the award
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Chief of Probation recommends that the Board affirm submission of the 2023 Permanent Local Housing Allocation (PLHA) Five-Year Plan Amendment in the amount of $560,188; Adopt a resolution authorizing submission of the PLHA Amendment; and Authorize the County Administrator, pending County Counsel concurrence, to execute any allocation award and other grant-related documents necessary to accept the award.
SUMMARY/DISCUSSION:
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, it included the Building Homes and Jobs Act (SB 2, 2017), which established a $75 recording fee on real estate documents to increase the supply of affordable housing as well as homeless housing programs in California. Through this funding, the State created the Permanent Local Housing Allocation grant program (PLHA) with the purpose of providing a permanent source of funding to all local governments in California to assist with increasing affordable housing stock or homeless housing programs.
On February 26, 2020, the California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) for PLHA in the amount of $195 million and on June 23, 2020 the Board of Supervisors approved the submission of the PLHA grant application for an amount of $769,410 for a five-year term to 1) Provide Homeless Prevention and Rapid Rehousing services to individuals who are under the supervision of the Probation Department and at risk of or currently experiencing homelessness and 2) Assist one low-income, working household annually through a Down-Payment Assistance Program in partnership with the Solano County Housing Authority.
The Probation Department expressed interest in this grant opportunity to support the department’s housing efforts. Retaining an ability to support housing needs for Probation is critically important because their client population faces more barriers to housing stability and self-sufficiency than the general population. For example, the Prison Policy Initiative (PPI) conducted a 2018 study indicating that formerly incarcerated people are 10 times more likely than the general public to face homelessness. PPI also reports that unemployment for formerly incarcerated people in the United States is nearly five times higher than the general population, and when formerly incarcerated people do obtain jobs, they are reportedly often the most insecure and lowest paying positions. This provides a reported income that often puts this group below the poverty line and at extreme risk of homelessness.
In December 2023, HCD issued a NOFA (Attachment B) for the 2023 PLHA Local Government Formula Component for approximately $296 million in remaining, and still unrequested, CY 2020 and 2021 funds as well as new CY 2022 funds. In order for Probation to continue utilizing these funds a five-year amendment application (Attachment C) is required.
The Probation Department is seeking to utilize the grant to provide Homeless Prevention and Rapid Rehousing services to individuals who are under their supervision and at risk of or currently experiencing homelessness. Examples of eligible services include paying costs to enter transitional housing programs, providing first month’s rent and deposit to move into a permanent unit, supporting temporary rental assistance, or preventing a household from losing their housing by paying back-rent or paying off utility arrearage. This will support the department in ensuring that the length of stay in housing is not shortened due to the anticipated reduced budget, and additionally it will provide a more flexible housing fund to support new and permanent housing opportunities and programs that have not been available to the Department. Though Probation’s traditional housing destinations can vary based upon available programs, sober living environment housing is typically their primary housing provider because they work with destabilized clients with challenging barriers to self-sufficiency, including criminal histories which can impede eligibility for other types of housing services. Though this is the most common program utilized by Probation, the Department has indicated an ongoing need for additional housing program options including Housing First and Low Barrier programs to support those that may struggle with addiction. The intended use of the PLHA grant would both help fill the projected gap in housing funds for the upcoming fiscal year, and it would also provide a wider variety of housing programs to support the unique needs of each Probation client facing housing instability.
Probation is seeking to utilize the PLHA program to allow the department to continue providing housing assistance to its clients who face a much higher risk of homelessness and barriers to economic, social, and financial stability. On a longer-term basis, Probation is seeking to pursue new opportunities to continue developing housing assistance programs because there are currently no such programs dedicated to the reentry population or former offenders in Solano’s local Homeless Continuum of Care, Housing First Solano. This opportunity supports efforts to continue in this direction.
FINANCIAL IMPACT:
The PLHA amendment would provide up to $186,729 annually for three years in funding for Homeless Prevention and Rapid Rehousing services to individuals experiencing or at risk of homelessness and who are under the supervision of the Probation Department. The PLHA award would also serve one working, low-income household each year over a three-year term to become a homeowner. The 5-year Plan Amendment totals $560,188 over a three-year period, which is the remaining balance of the original five-year term amount of $769,410. Appropriations and revenue associated with PLHA funds will be reflected as an adjustment during the FY2024/25 midyear budget presentation. There are no anticipated impacts to the General Fund.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2024/25 Adopted Budget.
ALTERNATIVES:
The Board may choose not to adopt the resolution authorizing the PLHA amendment application. However, this is not recommended as not applying for PLHA would lead to Probation facing a reduced ability to provide housing assistance to clients experiencing or at risk of homelessness. Additionally, less funding would be available to support a Down Payment Assistance program for working households in the Family Self-Sufficiency program.
OTHER AGENCY INVOLVEMENT:
Probation will collaborate with the County Administrator’s Office on this project and County Counsel will review all necessary documents as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION