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Overview of the Permanent Local Housing Allocation (PLHA) Program, which provides financial assistance to local governments for housing development projects and programs. The guidelines implement and interpret Senate Bill 2, Chapter 364, Statutes of 2017.
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Permanent Local Housing Allocation (PLHA) Program – Draft Guidelines Overview Presented by: Moira Monahan & Imaez Wahid
Senate Bill 2 (Chapter 364, Statutes of 2017) • Part of a 15-bill housing package aimed at addressing California’s housing shortage and high housing costs; • Imposed a $75.00 fee on real estate recordation transactions; • Created Building Homes and Jobs Trust Fund; • Established permanent ongoing source of funding for affordable housing development.
Senate Bill 2 – Ongoing Funding Allocation • 30 percent of the moneys collected on and after January 1, 2019, is allocated for the following: • 5 percent for State incentive programs; • 10 percent for Farmworker housing; • 15 percent to California Housing Finance Agency.
Senate Bill 2 – Ongoing Funding Allocation • 70 percent of the moneys collected on and after January 1, 2019, is allocated for the Permanent Local Housing Allocation (PLHA) program • PLHA program – Provides financial assistance to local governments for housing development projects and housing-related programs to assist in addressing the unmet housing needs for their local communities.
Purpose & Scope • PLHA program guidelines: • Implement, interpret, and make specific Chapter 364, Statutes of 2017 (SB 2, Atkins) as authorized by HSC Section 50470; • Establish terms, conditions, and procedures for local governments to submit applications to the Department for funds from the PLHA program.
Program Funding Allocation Three allocation components of the PLHA program are: • Entitlement formula component per HSC 50470(b)(2)(B)(i)(I); • Non-entitlement competitive grant program component per HSC 50470(b)(2)(B)(i)(I); • Non-entitlement formula component per HSC 50470(b)(2)(B)(i)(II)
Program Funding Allocation 70 percent of the moneys collected on and after January 1, 2019, will be allocated to local governments through the following:
Permanent Local Housing Allocation PLHA program guidelines are divided into five articles: • General provisions • Program funding • Formula allocation component • Competitive allocation component • Administration
Threshold Requirements for Formula Allocation • Housing Element and APR • A Plan detailing • Use of funds for eligible activities, dollar amount and number of households per activity; • Evaluation of the needs of households at or below 60 percent AMI; • May be for a term of up to five years;
Eligible Activities for Competitive Allocation • Development of new multifamily rental housing that is Affordable to households at or below 60 percent of AMI; • 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; • Assistance to persons experiencing or At risk of homelessness, including: rapid rehousing; rental assistance, or navigation centers; new construction, rehabilitation, or preservation of permanent or transitional rental housing
Selection Criteria for Competitive Allocation Applications for the non-entitlement competitive allocation will be evaluated using the following criteria (100 points) Priority Points – 25 points
Selection Criteria for Competitive Allocation Evaluation Criteria—Maximum of 75 points
Deadlines and Funding Requirements for Formula Allocation • Standard Agreement required within 22 months; • Disbursement within 58 months; • If deadlines are not met; funds revert to Housing Rehab Loan Fund; • 100 percent disbursement permitted after Standard Agreement.
Questions/Comments/Feedback • 30-Day Public Comment Period ends on June 5, 2019, at 5:00 p.m. • Please send your questions/comments/feedback to PLHA@hcd.ca.gov
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