Council approves PLHA pilot to provide short‑term rental assistance to extremely low‑income households

City staff presented proposed guidelines for a pilot rental assistance program funded with South Pasadena’s Permanent Local Housing Allocation (PLHA) funds and the council approved the guidelines on Oct. 15.

Eduardo Lazaraga, senior management analyst in the housing division, told the council that South Pasadena’s PLHA allocation for the current funding year is $53,352, and staff recommended allocating 86% (about $46,000) for direct rental assistance and 14% (about $7,300) for supportive case management. Under the proposed pilot, eligible households would be renters residing in legal units in South Pasadena with incomes at or below 30% of area median income who can show a verifiable economic hardship (for example, job loss, reduced hours, or medical expenses). The assistance would cover future rent only, paid directly to landlords, at a level equal to 40% of the household’s monthly rent. Staff noted income limits by household size; for example, a one‑person household would qualify at up to $31,850 per year under the thresholds used in the staff report.

Using 2023 census data as an estimate, staff said roughly 1,200 South Pasadena households could potentially fall under the income thresholds the program uses, but emphasized that the estimate relied on census aggregates and the actual demand will be clearer once the application period opens. With the available funding, staff estimated the pilot could serve roughly six to 10 households for at least six months. Staff proposed a first‑come, first‑served application process but told council the order could be changed to prioritize groups such as seniors or families with children if the council so directed.

Staff described planned outreach (city website, social media, printed materials and partnerships with community and faith‑based organizations) and said staff will finalize forms and partner organizations and then return with a budget amendment and reimbursement agreement to set up accounting for expenditures. The council voted to approve the pilot program guidelines unanimously.

Public comment urged program administrators to keep eligibility rules flexible and to consider automatic adjustments or “circuit breakers” if the pilot attracts few applicants under strict criteria. Staff said many eligibility rules derive from the grant program and that the pilot structure permits staff to monitor take‑up and, if necessary, repurpose funds after a public hearing. Council members said they supported the pilot approach and asked staff to track results and return with a midpoint progress report.