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Town reallocates PLHA funds, and conditionally backs $207,000 to Pacific Crest Commons gap
Summary
Council amended the town’s PLHA plan to revise ADU loan terms, allocate $207,272 toward Pacific Crest Commons affordable housing match and create a down‑payment assistance pilot; changes respond to low take‑up of the town’s earlier ADU loan program and HCD program constraints.
The Town of Truckee revised its Permanent Local Housing Allocation (PLHA) plan to free up funds for an affordable multifamily project and to redesign underused ADU loan offerings.
Hillary (staff) told council the town has received $286,375 of PLHA funds already earmarked for ADU low‑interest loans but has not yet had any loans completed under the existing $50,000 options. "While the town has had a handful of property owners interested in this program, we've not had anyone actually use it yet," staff said. Survey and applicant feedback indicated the prior $50,000 loan covered only a small share of ADU costs and that deed restrictions of 10–15 years were a deterrent.
To improve uptake, staff proposed revised ADU loan options: a $200,000, 20‑year loan at 1% interest with a seven‑year deed restriction limited to households at or below 60% of area median income (AMI), and a $70,000, 10‑year loan at 2% for units restricted to households at or below 120% AMI.
Because HCD requires that previously received PLHA funds be used for ADU loans, the council kept the $286,375 in the ADU program but authorized staff to revise the program guidelines. For the unspent PLHA balance, staff recommended allocating up to $207,272 as local match to Pacific Crest Commons, a 55‑unit affordable multifamily project on the former CHP site, to support an additional LGMG (Local Government Matching Grant) award. The remainder — about $138,480 — would seed a new down‑payment assistance low‑interest loan pilot capped at 120% AMI. Staff said Nevada County and the Regional Housing Authority are coordinating additional match proposals and recommended the town’s contribution to Pacific Crest Commons to help close a construction funding gap.
Council voted unanimously to adopt the amended PLHA plan, authorize staff to submit the amendment to HCD and to return with program guidelines for the revised ADU loans and the proposed down‑payment assistance pilot.
