Home > News > News Articles > 2019 > May > HCD Now Accepting Public Comment on the Draft Permanent Local Housing Allocation 2019 Guidelines
News Feed

HCD Now Accepting Public Comment on the Draft Permanent Local Housing Allocation 2019 Guidelines

May 10, 2019
The California Department of Housing and Community Development (HCD) recently released its Permanent Local Housing Allocation (PLHA) program draft guidelines.
 
The League encourages cities to help shape these guidelines by submitting written comments or attending a public hearing and/or webinar. The PLHA program will allocate approximately $175 million dollars per year to provide financial assistance to local governments for eligible housing-related projects and programs to assist in addressing the unmet housing needs of their local communities.
 
Public comment period ends June 5 at 5 p.m. Submit questions and comments to PLHA@hcd.ca.gov.  
 
Sacramento
May 15, 2019
1-3 p.m.
 
Department of Housing and Community Development
2020 West El Camino - Room 402 A/B
Sacramento, CA 95833
 
Register
Visalia
May 20, 2019
1- 3 p.m.
 
Tulare County Health & Human Services Agency
4031 West Noble Avenue
Plum/Apricot/Nectarine Rooms
Visalia, CA 93277
 
Register
Riverside
May 29, 2019
1:30 - 3:30 p.m.
 
Housing Authority of Riverside
5555 Arlington Avenue
Riverside, CA 92504
 
Register
Webinar
May 22, 2019
1-3 p.m.
 
Register
 
Background
 
In 2017, Senate Bill 2 authored by Senate President pro Tempore Toni Atkins created the PLHA program as part of a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. SB 2, the Building Homes and Jobs Act, establishes a $75 recording fee on real estate documents to increase the supply of affordable homes in California. Because the number of real estate transactions recorded in each county will vary from year to year, the revenues collected will fluctuate. The fees are currently estimated to generate approximately $250 million per year based on available recording document data from the last decade. HCD will use 70 percent of the estimated $250 million in revenue to provide financial assistance to local governments for the purposes of funding affordable housing.
 
Program Funding
  1. Ninety percent of the moneys available shall be allocated to cities based on the formula used to allocate Community Development Block Grant Program (CDBG) funds within California. The amount of funds awarded to each local government eligible for the entitlement formula component shall be based on the proportionate share of CDBG funds distributed in fiscal year 2017. 
    • Eighty-three percent will be allocated to entitlement jurisdictions based on the CDBG formula.
    • Seven percent will be allocated to non-entitlement areas through a competitive grant program. 
  2. Ten percent of the moneys available shall be allocated equitably among nonentitlement jurisdictions, which are not eligible for CDBG funding based on a formula outlined in the guidelines. Chart-for-PLHA.jpg
Applicants
 
The applicant and any co-applicants must have a housing element that has been adopted by the jurisdiction’s governing body by the deadline specified in the Notice of Funding Availability (NOFA) and subsequently determined to be in substantial compliance with state housing element law.
 
The applicant and any co-applicants must submit to HCD an Annual Progress Report (APR). The application must also include a plan detail explaining how the funds will be used for eligible activities to address their unmet share of their Regional Housing Need Allocation (RHNA) and other details outlined in the guidelines.
 
A list of eligible applicants can be found in Appendix A of the draft guidelines.
 
Eligible Activities
  • Low-Income Housing — Low-income multifamily housing development; capitalized reserves for permanent supportive housing; acquisition and rehabilitation of foreclosed or vacant homes and/or accessibility modifications. 
  • Moderate-Income Housing — Home rental and ownership for middle-income families and/or homeownership opportunities, including down payment assistance. 
  • Homelessness — Rapid rehousing, rental assistance, navigation centers, emergency shelters, and permanent and transitional housing. 
  • Local Matching Funds — Local or regional housing trust funds; Low and Moderate Income Housing Asset Fund. 
  • Incentives — Incentives or matching funds for permitting new housing. 
The funding allocated under the competitive allocation is limited to the following:
  1. Development of new multi-family rental housing that is affordable to households at or below 60 percent of area median income (AMI) or substantial rehabilitation of multifamily rental housing that will be affordable to households at or below 60 percent of AMI, but which is not currently restricted as affordable housing; or 
  2. Assistance to persons who are experiencing or are at risk of homelessness, including, but not limited to, rapid rehousing, rental assistance, navigation centers, new construction, rehabilitation or preservation of permanent or transitional rental housing. 
Funding Availability
 
Funds must be appropriated by the Legislature to HCD before they can be awarded. Appropriation of the funding would occur through adoption of the state budget, which must be passed by June 15 of each year.
 
Award Amounts
 
The formula allocation amounts will be announced in the NOFA. The maximum application amount and the minimum application amount for the competitive allocation will also be stated in the NOFA. The minimum and maximum amounts will be adjusted based on the amount collected in the fund.
 
For more information, visit California's 2017 Housing Package webpage.


 
© League of California Cities