REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: SHIN AE CHOI, Real Estate Finance Specialist II
Housing Finance Division
SUBJECT
Title
***RESOLUTION - Authorizing application for and acceptance of funding from the Permanent Local Housing Allocation (PLHA) Program of the California Housing and Community Development Department for the development of affordable multi-family and single-family housing, owner-occupied home rehabilitation, and down payment assistance to benefit low- and moderate-income persons, and authorizing the City Manager, or designee, to sign all necessary implementing documents. (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends the City Council approve the resolution authorizing submission of an application for and acceptance of the City of Fresno’s fifth and final funding allocation from the Permanent Local Housing Allocation (PLHA) Program. Staff further recommends authorizing the City Manager, or designee, to sign all necessary implementing documents as approved by the City Attorney’s Office.
EXECUTIVE SUMMARY
The City of Fresno (City) is eligible to receive its fifth and final PLHA funding allocation for Calendar Year 2023, totaling $2,239,084. These funds will support affordable multi-family and single-family housing development, owner-occupied home rehabilitation, and down payment assistance for low- and moderate-income households. To receive these funds, the City must submit a streamlined application to the California Department of Housing and Community Development (HCD). This funding is part of the City’s adopted 5-Year PLHA Plan and aligns with the City’s Housing Element goals.
While this is the final PLHA allocation under the City’s current 5-Year Plan, staff are beginning preparations for a new PLHA application cycle anticipated later this year.
BACKGROUND
On December 29, 2023, HCD released the Notice of Funding Availability (NOFA) for the 2024 PLHA Program Local Government Formula Component, funded by Senate Bill 2 (SB 2), which imposes a real estate document recording fee to support affordable housing programs. The NOFA was thereafter amended on October 15, 2024, January 15, 2025, and May 12, 2025.
Since 2019, the City of Fresno has received four PLHA allocations totaling $17,454,985, with a five-year cap of approximately $20,445,618. This fifth allocation of $2,239,084 completes the City’s five-year entitlement.
Yearly PLHA allocations received:
• 2019: $3,407,603
• 2020: $5,296,470
• 2021: $5,828,601
• 2022: $2,921,311
• 2023 (current): $2,239,084
On August 20, 2020, City Council approved the City’s PLHA 5-Year Plan focusing on affordable housing development, home rehabilitation, and down payment assistance for low- and moderate-income households. On April 21, 2022, the Plan was amended to increase the income eligibility limit to 80% AMI to address rising construction costs. These changes do not alter the Plan’s core goals.
To access the 2023 allocation, the City must submit a streamlined application to HCD. Staff seeks Council authority to submit this application and accept the funding.
ENVIRONMENTAL FINDINGS
This resolution is not considered a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environmental review.
LOCAL PREFERENCE
Local preference is not applicable since this resolution supports a State funding application.
FISCAL IMPACT
This action will not impact the City’s General Fund. Approval allows the City to receive $2,239,084 in PLHA grant funds for CY 2023, completing the City’s five-year PLHA funding cycle.
Attachment:
Resolution - 2024 PLHA NOFA