Council OKs city role to pass roughly $400,000 in state PLHA funds to Mallard Apartments

The Placerville City Council on May 13 authorized the city manager to negotiate and execute a loan agreement and affordable housing regulatory agreement to pass approximately $400,000 in Permanent Local Housing Allocation (PLHA) funds to Mallard Apartments LP.

City staff said the staff report initially used an incorrect acronym (CPLHA) and that the correct program is the state Permanent Local Housing Allocation (PLHA). Staff said the Mallard Apartments project is fully entitled and underway, making it the recommended recipient under the grant criteria. Staff noted another affordable housing developer (Jamboree Housing) also applied for funds but that Mallard Apartments better met the criteria for these particular funds.

A Mallard Apartments representative attended the meeting but did not provide substantive remarks at the council table. During debate, one council member raised concerns about market distortion that can occur when public funds are channeled through government entities to private developers; other speakers argued that local affordable housing needs make use of available state funds appropriate.

The council approved the staff recommendation on a roll-call vote: Council member Carter — aye; Council member Noe — aye; Vice Mayor Gottberg — aye; Mayor John Clerici — aye. The staff report said the funds originate from a state program (SBT-two program referenced in the staff report) and that the city’s resolution would be amended to reference the correct PLHA acronym before final execution.