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Council approves PLHA five‑year plan amendment to fund homeownership assistance and property rehabs
Summary
Council approved an amendment to the city’s five‑year Permanent Local Housing Allocation (PLHA) plan and a related budget increase. The amendment directs PLHA funds toward homebuyer assistance, owner‑occupied rehabilitation and rehabilitation/transfers of city‑owned single‑family homes under PLHA rules.
Jennifer Figueroa presented a proposed amendment to the City’s five‑year PLHA plan and a request to increase corresponding budget appropriations. Figueroa said PLHA funds derive from the Building Homes and Jobs Act (SB 2) and the program provides formula, noncompetitive funds for jurisdictions to address affordable housing.
Figueroa outlined staff recommendations for how to allocate PLHA funds across multiple years: proposed uses included owner‑occupied rehabilitation for accessibility and health‑and‑safety work, first‑time homebuyer down‑payment assistance for households up to 120% of AMI, and use of a portion of funds to rehabilitate three city‑owned single‑family homes (Birchwood Way, Shadow Park Drive and Cody Court). The staff report presented two disposition options for the city‑owned homes: (1) sell to first‑time homebuyers at or below 80% of AMI (sale price could be below market depending on HUD price limits and appraisal) or (2) transfer properties to a nonprofit by RFP for affordable rental use restricted for 55 years under PLHA rules. Staff recommended pursuing an RFP for the Birchwood site (adjacent to a city rental property) and selling the other two homes to first‑time buyers.
Figueroa also said allocations would include reasonable administrative costs (5% per PLHA rules) and that HCD had been engaged to confirm timing and deadlines; staff said 2020 funds would be available in April and the city would have 36 months to expend them. Council members asked about program mechanics and timelines and staff said the housing division planned to bring a revised first‑time homebuyer program to the loan committee.
After discussion, council voted to approve the PLHA five‑year plan amendment and the related budget appropriation increase. Roll call showed the item passed with a 4‑0 vote.
Why it matters: the amendment retools how the city will use PLHA funds—shifting resources into a mix of ownership assistance, owner‑occupied rehab and rehabilitation or transfer of city properties—and begins the administrative steps to access and spend several years of PLHA allocations.
Source and context: presentation and Q&A with housing staff (Jennifer Figueroa) during the public hearings segment.
