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Irvine Council approves PLHA amendment to fund workforce down‑payment assistance and Gateway affordable rental units
Summary
Council approved a state Permanent Local Housing Allocation amendment that earmarks roughly $1.7M over four years for a workforce down‑payment assistance program and about $2.5M over four years toward an affordable rental component (Gateway Village); staff warned of a June 30 state deadline to secure year‑2 funding.
The City Council unanimously approved an amendment May 12 to Irvine’s Permanent Local Housing Allocation (PLHA) application to secure years 2–5 of noncompetitive state housing funding from the California Department of Housing and Community Development.
Housing staff presented a two‑part approach: 60% of the available PLHA funding (an estimated $2.5 million over four years) would support a rental‑side project — the affordable portion of the Gateway Village development targeting households at 80% AMI and below — and 40% (an estimated $1.7 million over four years) would seed a workforce down‑payment assistance (DPA) program for local workers earning roughly 120–150% of area median income.
Housing Manager Hita Mosesman described the workforce DPA design as a revolving loan fund that would provide a 0% second mortgage of up to 15% of purchase price (city loan repaid on sale along with an agreed share of equity). Staff emphasized the program’s flexibility under state rules and said the city must submit the amended application by June 30 to retain year‑2 funding (roughly $1,000,000). Council members praised the plan’s blend of rental and ownership tools and approved the amendment 7–0.
The motion authorizes staff to submit the amended PLHA application and to continue refining the draft policies and procedures for the DPA program prior to implementation. Staff said the DPA would target households who typically fall outside traditional affordable housing programs and could be paired with a future housing trust to accept private donations.
Council members urged staff to return with more operational details and safeguards for equity sharing, but described the approval as an important step toward increasing housing options for local workers and creating a program that can be recycled through repayments to support future buyers.
