For Economic Development Committee November 19, 2026
TO: Honorable Economic Development Committee Members
FROM: Christina Taylor, Community Development Director
Title
Permanent Local Housing Allocation (PLHA) Program – 2023 Funding Allocation, Eligible Activities, and Direction on Proposed Uses
Body
BACKGROUND
The Permanent Local Housing Allocation (PLHA) Program was established through Senate Bill 2 (SB 2), the Building Homes and Jobs Act of 2017, which created a permanent funding source for affordable housing through recording fees on certain real estate transactions. Administered by the California Department of Housing and Community Development (HCD), the program provides funding to eligible local governments for affordable housing development, preservation, homeownership assistance, and homelessness-related activities.
In 2022, the City of Rialto adopted a Five-Year PLHA Plan and corresponding resolution; however, the City's Housing Element had not yet received HCD certification, preventing the City from meeting the program's eligibility requirements. Consequently, the City did not execute a PLHA Standard Agreement with HCD, and its 2022 allocation was forfeited.
Following certification of the City's Housing Element in 2026, HCD notified the City on June 16, 2026, that its 2023 PLHA allocation of $392,796 remained available. In response to staff's subsequent inquiry, HCD confirmed that because no Standard Agreement had been executed and the previous Five-Year Plan was invalid, the City must apply as a new applicant and submit a new Five-Year PLHA Plan and all required supporting documentation.
The City must submit its application by February 28, 2027, to secure the available 2023 funding.
ANALYSIS/DISCUSSION
Available Funding and Homeownership Requirement
The City has $392,796 available through its 2023 PLHA formula allocation. Under the current New Applicant application requirements, at least 40% of the allocation requested must be dedicated to el...
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