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Council designates $36,253 in PLHA funds for South Bay Housing Trust formation, with fallback for rapid rehousing
Summary
Hermosa Beach approved participation in the Permanent Local Housing Allocation program, tentatively allocating an estimated $36,253 to the South Bay Regional Housing Trust Fund to support affordable housing planning and leveraging; council approved alternate uses — rapid rehousing and case management — should the trust not launch.
Hermosa Beach City Council voted 4–1 on Feb. 25 to accept an estimated $36,253 in Permanent Local Housing Allocation (PLHA) funds and to designate the amount to the South Bay Regional Housing Trust Fund as seed money for future affordable housing projects.
PLHA funds flow to local jurisdictions through the county as part of California’s Building Homes and Jobs Act, which created a small recording fee to raise money for housing. Planning Manager Alexis Orpiza told council the city’s allocation is estimated at $36,253 and that staff is recommending the funding be committed to the South Bay Cities Council of Governments’ new joint powers housing trust — a regional vehicle intended to act as a source of matching funds for affordable housing development.
Council members pressed staff on the “estimated” nature of the allocation and on alternatives in case the South Bay Housing Trust cannot launch or accept funds. Staff and the city attorney explained the resolution allows the City Manager some flexibility to reallocate the funds to approved local programs if the trust is not able to receive them, and the resolution includes specified alternatives. Under the motion, if the trust is not able to use the funding within the required timeframe staff may instead allocate up to half the amount to rapid rehousing and the remainder to case‑management services for people who are unhoused.
The council moved this item with a second and debated whether to make this an annual consent item in future years. Council member Mike DeToy asked whether the item could be treated routinely in future cycles; staff said that could be an operational decision after the first year. Council member Pro Tem Seaman voted no; the motion passed 4–1.
Outcome: Council adopted a resolution accepting PLHA funds and directing staff to participate in the South Bay Regional Housing Trust Fund, with contingency language allowing reallocation to local rapid‑rehousing or case‑management programs if needed; vote 4–1 (Seaman no). Staff will pursue grant application steps and return as required for approvals.
