2020-07-15 City Council Item No. 11.1 Permanent Local Housing Allocation (PLHA) Presentation Regular MEETING - Additional Meeting MaterialsPermanent Local Housing Allocation (PLHA)
New Program –Administered by HCD
Permanent Local Housing Allocation Background
•Established as State housing funds as part of the Building Homes and
Jobs Act (SB2, 2017)
•Law established $75 recording fee on all real estate documents to fund
the PLHA program
•Program provides a source of funding to increase affordable housing
stock across the state
Permanent Local Housing Allocation Background
•Funding is estimated in five-year cycles based on projected
real estate recording fees
•Current program cycle is for 2019-2023 period
•City of Menifee Allocations:
o 2019: $251,604
o 2019-2013:$1,258,020 (estimated)
Permanent Local Housing Allocation Background
•Administrative expenses: 5% of allocation eligible for
program administration = $12,580 for 2019
o Overhead costs directly related to carrying out an eligible
activity are “activity cost” and not subject to admin cost
Eligible Activities
• Predevelopment
• Development
• Acquisition
• Rehabilitation
• Preservation of Multifamily
• Rental housing
• Accessibility modifications
• Homeownership opportunity
Proposed Activity
Homeownership opportunity
City of Menifee plans to use the PLHA funds for Down Payment Assistance
•$15,000 maximum interest-free loan
•15 years deferred
•Pay back City if:
o Transfer
o Refinance
o Move
o Sell
Application Process
1.Submit a Plan (application) to HCD by July 27, 2020
2.Grant Agreement to be executed in Fall of 2020
3.Return to Council to accept funds Fall of 2020
4.Anticipate program launch Winter of 2020
Application Requirements
1.Have an adopted and compliant Housing Element as certified by
HCD
2.Submit the most recent Housing Element Annual Progress Report
3.Adoption of Allocation Plan by City Council
Edna I. Lebrón, Sr. Management Analyst
(951) 723-3713 or elebron@cityofmenifee.us
Income Limits
Number of Persons in Household:1 2 3 4 5 6 7 8
Riverside County
Area Median
Income:
$75,300
Low Income
80%42,200 48,200 54,250 60,250 65,100 69,900 74,750 79,550