AGR-7012 - CITY OF LA HABRA - PERMANENT LOCAL HOUSING ALLOCATION AGREEMENT BETWEEN CITIES OF LA HABRA AND ORANGEK— o
PERMANENT LOCAL HOUSING ALLOCATION AGREEMENT BETWEEN
THE CITY OF LA I3ABRA AND THE CITY OF ORANGE
This Permanent Local Housing Allocation Agreement("Agreement") is entered into
this 20th day of July, 2020 by and between the City of La Habra, a California municipal
corporation,hereinafter referred to as ".La Habra" and the City of Orange, a California
municipal corporation,hereinafter referred to as "Orange."
RECITALS
The State of California,Department of Housing and Community Development
Department") is authorized to provide up to $195 million to cities and counties for assistance
under the SB 2 Permanent Local Housing Allocation Program Entitlement Jurisdiction
Component from the Building Homes and Jobs Trust Fund(as described in Health and Safety
Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)).
The Department issued Permanent Local Housing Allocation Final Guidelines
PLHA Program Guidelines")in October 2019.
The Department issued a Notice of Funding Availability("NOFA") dated February 26,
2020,under the Permanent Local Housing Allocation ("PLHA"). The NOFA listed Orange as
an Entitlement Local Government with a PLHA funding allocation of$607,483 for Fiscal Year
2019-2020 and a total estimated five-year PLHA funding allocation of$3,644,898 for Fiscal
Years 2019-2020 through 2023-2024.
The PLHA Program Guidelines permit eligible applicants for PLHA funds to subgrant
some or all of its PLHA funds to another entity or entities. Pursuant to PLHA Program
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.
Pursuant to a PLHA Allocation Agreement with Orange County, La Habra will be acting
as an entity under a legally binding five-year agreement to distribute PLHA funds on behalf of
certain eligible applicants of the Urban County Cities (Brea, Cypress„ La Palma, Los Alamitos,
Stanton and Villa Park).
Under PLHA Program Guidelines section 301 (c), two or more local governments may
expend PLHA funds on an eligible jointly funded project,provided the project is an eligible
activity pursuant to Health and Safety Code section 50470 (b)(2)(B)(ii)(IV) and will be located
within the boundaries of one of the local governments. The County, its.North Service Planning
Area ("SPA")Urban County Cities (Brea, Cypress„ La Palma, Los Alamitos, Stanton and Villa
Park), along with the North SPA entitlement jurisdictions (Buena Park, Fullerton, La Habra,
Orange, Placentia and Yorba Linda)will all contribute some or all of their PLHA funding to the
Buena Park and Placentia Navigation Centers.
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In order to streamline the distribution of PLHA funds to the two navigation centers,
Orange desires to designate La Habra as the Treasurer for the jointly funded project in the North
SPA. The eligible activities will benefit people who are experiencing or are at risk of
homelessness. In addition, Orange wishes to designate La Habra as treasurer pursuant to Section
7.1 of the Memorandum of Understanding for The North Orange County Service Planning Area
dated May 1, 2019 (NSPA MOU).
Under the terms of this Agreement, Orange desires to delegate to La Habra the authority
to distribute certain PLHA funds on Orange's behalf. La Habra is willing to assume the authority
to distribute certain PLHA funds on Orange's behalf under the terms of this Agreement.
Therefore, Orange and La Habra agree as follows:
1. This Agreement shall constitute the legally binding agreement between Orange
and La Habra as required under PLHA Program Guidelines for La Habra to distribute PLHA
funds on Orange's behalf.
2.Orange represents and warrants that:
a.it is eligible to submit the Five-year Plan to the Department as part of a
complete application in which it proposes to use allocated funds for at least one eligible Activity.
The Plan will detail the way it will prioritize investments that increase the supply of housing for
households with incomes at or below 60 percent of Area Median Income(AMI) and the Plan
shall have a term of five years;
b.it has adopted a Department-compliant Housing Element, and will submit
an Annual Performance Report("APR"), as required by Government Code section 65400 for
the prior year by the application deadline date, and will continue to submit its APR annually by
April 1 annually for the five year term of this agreement to ensure continued compliance; and,
c.it will submit a certification in an approved resolution with the PLHA
application allowing some of its funds to be provided to another entity pursuant to PLHA
Program Guidelines section 300(d), and that its selection process avoided conflicts of interest
and was accessible to the public. For the purposes of this paragraph, "entity"means a housing
developer or program operator; "entity" does not mean an administering local government to
whom a local government delegates its PLHA formula allocation.
3. La Habra is authorized to distribute PLHA funds on Orange's behalf attributable
to Orange for activities eligible for PLHA funds up to 100% of the amount to be received by
Orange from the Department which is, in Fiscal Year 2019-2020, the amount of$577,109 and
through 2023-2024 at the Department-published PLHA Allocation amounts for Orange in each
fiscal year. The Deparhnent currently estimates the PHLA Allocation for Orange for Fiscal
Years 2019-2020 through 2023-2024 is $3,644,898 (includes 5% allowable administrative cost).
In the event actual PLHA Allocations for these cities during the Five-year PLHA Plan period
differ from the current estimate, Orange's total payments under this Agreement shall not exceed
4,756,592.
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4.In addition, La Habra is also authorized to distribute non-PLHA funds committed
by Orange for funding of the Buena Park and Placentia Navigation Centers, under the NSPA
MOU.
5.La Habra shall submit a written invoice to Orange annually, on a form approved
by Orange, in a total amount of the percentage allocation of PLHA funds set forth in Section 3
herein, which for fiscal year 2019-2020 is $607,483. In addition, the invoice will also include
the non-PLHA funds committed by Orange for the funding of the Buena Park and Placentia
Navigation Centers,under the NSPA MOU.
6.In addition to any other act necessary to administer PLHA funds for Buena Park
consistent with PLHA Program Guidelines, Buena Park and Placentia may: subcontract with
service providers to provide services at the Buena Park Navigation Center for people who are
experiencing or are at risk of homelessness. The services provided by subcontractors may
include but are not limited to the following: 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 in a manner consistent with the Housing First
practices described in California Code of Regulations, title 25, section 8409, subdivision(b)(1)-
6) and in compliance with Welfare and Institutions Code section 8255, subdivision(b)(8). Any
subcontract for the new construction,rehabilitation, and preservation of permanent supportive
housing shall incorporate the PLHA Program Guidelines components of Housing First, as
provided in Welfare and Institutions Code section 8255, subdivision(b).
7. At all times during the term of this Agreement Orange and La Habra shall be in
compliance with PLHA Program Guidelines, including but not limited to:
a.maintaining a Department-compliant Housing Element; and,
b. submitting to the Department by April 1 of each year a Housing Element
APR as required under Government Code section 65400 on Orange's prior year Housing
Element activities.
8. During the term of this Agreement Orange shall:
a.. approve a Plan consistent with PLHA Program Guidelines.
b.annually ensure activities being undertaken with PLHA funds continue to
comply with PLHA guidelines.
c.In succeeding years, obtain the approval of the Department for any
amendments made to the Plan, as set forth in Section PLHA Program Guidelines section
302(c)(5); and,
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d.submit to the Department annual PLHA year-end annual report beginning
in 2021 pursuant to Health and Safety Code section 50470 (b)(2)(B)(ii)(III) each year by July 31
for the term of the Standard Agreement.
9. Beginning no later than July 10, 2021, La Habra shall submit annual fiscal year-
end project status reports to Orange to assist in the County's completion of annual PLHA year-
end reports on Orange's behalf.
10. On Orange's behalf, La Habra shall (until replaced as Treasurer):
a.administer and act as Treasurer of the PLHA funds awarded to Orange
attributable to Orange for fiscal years 2019-2020 through 2023-2024 and any program income
generated from the expenditure of such funds. La Habra shall be entitled to recover its
reasonable costs associated with serving in the capacity of administrator and Treasurer as
provided in section 7.1 of the NSPA MOU.
b.cooperate with Orange, including its subcontractors, in the application for
and administration of Orange's PLHA funds;
c.once an invoice is submitted by the cities of Placentia and Buena Park for
expenses incurred for operations of the navigation centers by the subcontractors, La Habra will
process the invoice and issue a check to Placentia and Buena Park for reimbursement of
expenses. La Habra will provide Orange backup documentation to support payments issued to
Placentia and Buena Park for the distribution of PLHA awarded funds to the jointly funded
project's no more than one year prior to commitment of funds pursuant to PLHA Program
Guidelines section 304 (d);
d. provide a description of activities undertaken and targeted beneficiaries,
number and demographics of clientele serviced, household incomes, as well as the status of
reaching its activity goals annually to assist Orange in end of year report of accomplishments;
e.issue a close out report to Orange within 60 days of the La Habra's
cessation of services under this Agreement; and,
f.maintain documentation of its records related to this Agreement and La
Habra's use of PLHA funds, including but not limited to financial records and program files,
throughout this Agreement and for a minimum of five years after this Agreement terminates.
Financial records related to this Agreement or the La Habra's use of PLHA funds shall be
developed and maintained in accordance with generally accepted accounting principles. La
Habra shall make its records related to this Agreement and La Habra's use of PLHA funds
accessible to the Department and Orange upon request. The rights and obligations of the parties
and the Department under this subdivision shall survive the Agreement's termination.
11. The term of this agreement is five years, beginning on July l, 2020 and ending on
June 30, 2025.
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12. La Habra Indemnification.
a.La Habra shall indemnify, hold harmless, and defend with counsel
approved in writing by Orange, Orange and its officers, agents, elected and appointed officials,
and employees against all liability, claims, losses, demands and actions for injury to or death of
persons or damage to property arising out of or alleged to arise out of or in consequence of this
Agreement including attorneys' fees,provided such liability, claims, demands, losses or actions
are due to the acts or omissions of La Habra, its officers, agents or employees in the performance
of this Agreement.
b. La Habra shall indemnify, hold harmless, and defend with counsel
approved in writing by Orange, Orange and its officers, agents, elected and appointed officials,
and employees against.any liability, claims, losses, demands, and actions including attorneys'
fees incurred by Orange as a result of a determination by the Department that activities
undertaken by La Habra under the Agreement failed to comply with any laws,regulations, or
policies applicable thereto.
c.The rights and obligations of the parties under this paragraph shall survive
the Agreement's ternunation.
13. Orange Indemnification.
a.Orange shall indemnify, hold hartnless, and defend with counsel approved
in writing by La Habra, La Habra and its officers, agents and employees against all liability,
claims, losses, demands and actions for injury to or death of persons or damage to property
arising out of or alleged to arise out of or in consequence of this Agreement including attorneys'
fees,provided such liability, claims, demands, losses or actions are due to the acts or omissions
of Orange, its officers, agents or employees in the performance of this Agreement.
b. Orange shall indemnify, hold harmless, and defend with counsel approved
in writing by La Habra, La Habra against any liability, claims, losses, demands, and actions
including attorneys' fees incurred by La Habra as'a result of a determination by the Department
that activities undertaken by Orange under the Agreement failed to comply with any laws,
regulations, or policies applicable thereto.
c.The rights and obligations of the parties under this paragraph shall survive
the Agreement's termination.
14. La Habra or Orange may terminate this Agreement immediately without penalty
for cause or after 30 days' written notice without cause. Cause for the purposes of this paragraph
includes,but is not limited to, any material breach of contract, any misrepresentation or fraud, or
the Department's determination Orange is no longer eligible for PLHA funds.
15. Notices or other communications which may be required or provided under the
terms of this Agreement shall be given as follows:
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Oran e La Habra
City of Orange City of La Habra
300 E. Chapman Ave. 110 E. La Habra Blvd.
Orange, CA 92866 La Habra, CA 90631
Attention: City Manager Attention: City Manager
All notices shall be in writing and deemed effective when delivered in person or
deposited in the United States mail, first class,postage prepaid and addressed as above.
Notwithstanding the above, the Parties may also provide notices by facsimile transmittal, and
any such notice so given shall be deemed to have been given upon receipt during normal
business hours or, in the event of receipt after business hours, on the following business day.
Any notices, correspondence, reports and/or statements authorized or required by this
Agreement, addressed in any other fashion shall be deemed not given.
15. This Agreement may be executed in two or more counterparts, each of which
shall be deemed original,but all of which together shall constitute but one and the same
instrument.
La Habra has caused this Agreement to be executed by its City Manager and attested by
its City Clerk; Orange has caused this Agreement to be executed its City Manager each having
been duly authorized by their City Councils respectively.
City of La Habra, a municipal Attest:
corporation in the State of California
9
By: B
Name: Ji Sadro N : Laurie Swin CMC
Title: City ana er Title: City C erk
Date: t Date:
App orved o Form:
By: Date: '`
Richud . Jo s, City Attorney
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City of Orange, a municipal
corporation in the State of California
7 %'2/Z o
By: Date:
Name:
i c -7-a
Title: City Manager
Attest
By: Date: o ° o
Name
1 i Q P.,GGn
Title: City Clerk
Approved as to Form:
By: Date: ,- l7
Name: (I/, G'• t M/N
St,Q r }Sst
Title: City Attorney
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