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Placerville accepts conditional $1.05 million state housing award for Middletown Apartments

Placerville City Council · January 27, 2026

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Summary

The council authorized the city manager to accept a conditional $1,050,000 award from the California Department of Housing and Community Development (CPLHA) to support construction of the 100% affordable Middletown Apartments, with the award noted as conditional and embargoed pending the state's public announcement.

The Placerville City Council on Jan. 27 authorized staff to accept a conditional $1,050,000 award from the California Department of Housing and Community Development under the Competitive Permanent Local Housing Allocation (CPLHA) program for the Middletown Apartments, a planned 100% affordable rental project targeting households at or below 60% of area median income.

Carol Kendrick, director of development services, said the funding — administered through HCD and backed by SB 2 (Building Homes and Jobs Act) revenue — was conditionally awarded on Dec. 25, 2025. Kendrick said the award includes the full grant amount plus up to 5% for administrative costs, requires no local match, and is currently under embargo until HCD or the governor’s office issues the public announcement. Staff said the city may use the award letter to support applications to tax credit and bond allocation programs (TCAC and CDLAC) while completing required steps to accept the award.

Council action authorized the city manager to execute the standard agreement and related documents, certify compliance with program requirements including uniform multifamily regulations, and appropriate the $1,050,000 in the city budget. Kendrick noted that after the agreement is fully executed and pre‑disbursement conditions are met, the city will process requests for funds tied to construction milestones and supporting documentation.

A public commenter commended the city for pursuing affordable housing and linked the grant to local needs such as shelter demand; councilmembers praised staff outreach and the competitive application. The council approved the staff recommendation on a roll call vote.