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, Senior Management Analyst
Housing Finance Division
SUBJECT
Title
***RESOLUTION - Approving the submission of the Permanent Local Housing Allocation (PLHA) 5-Year Plan amendment to the California Housing and Community Development Department (HCD) for the Owner-Occupied Home Rehabilitation to increase the Area Median Income (AMI) threshold and authorizing the City Manager, or designee, to sign all necessary implementing documents. (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends that the City Council adopt the resolution authorizing submission of the Second Amendment to the Five-Year Permanent Local Housing Allocation (PLHA) Plan. This amendment increases the income eligibility threshold for the Owner-Occupied Home Rehabilitation Program (mobile-home repair program) from 60% to 80% of the Area Median Income (AMI) for the 2022 and 2023 formula allocations. Staff further recommends authorizing the City Manager, or designee, to execute all necessary implementing documents.
EXECUTIVE SUMMARY
The City of Fresno has submitted applications for five consecutive years of Permanent Local Housing Allocation (PLHA) funding, totaling $19,693,069 since 2020. PLHA funds support a range of housing initiatives, including affordable multifamily and single-family housing development, owner-occupied home rehabilitation (mobile-home repair program), and down payment assistance for low- and moderate-income households.
This action represents the Second Amendment to the City’s Five-Year PLHA Plan. The amendment increases the income eligibility threshold for the Owner-Occupied Home Rehabilitation Program (mobile-home repair program) from 60% to 80% of Area Median Income (AMI) for the 2022 and 2023 funding allocations. This change aligns the program with the broader PLHA Plan and provides greater flexibility to serve Fresno mobile-home owners experiencing significant repair needs, particularly those exceeding the current 60% AMI limit.
BACKGROUND
Since 2020, the City of Fresno has participated in the Permanent Local Housing Allocation (PLHA) Program, which provides formula-based funding from the California Department of Housing and Community Development (HCD) to support a variety of housing initiatives. While the City previously amended its PLHA Plan to raise the income eligibility threshold to 80% of Area Median Income (AMI) for multifamily and single-family new construction, the threshold for the Owner-Occupied Rehabilitation (mobile-home repair) Program remained at 60% AMI.
In recent years, Fresno has seen an overall increase in household income levels. However, many households at or below 60% AMI continue to face financial hardship and require assistance with critical home repairs. Additionally, households just above this threshold, (classified as moderate-income) are also financially vulnerable and often unable to afford necessary rehabilitation work. By increasing the income eligibility threshold to 80% AMI, the City can expand access to mobile-home rehabilitation assistance for both low- and moderate-income homeowners.
This amendment applies specifically to the 2022 and 2023 PLHA allocations. Aligning the Owner-Occupied Home Rehabilitation (mobile-home repair) Program with the broader PLHA Plan ensures consistency in program administration and enhances the City’s ability to serve a wider range of residents in need.
Once the City submits this amendment and HCD approves, the new income limits will go into effect.
ENVIRONMENTAL FINDINGS
This resolution does not constitute a project under the California Environmental Quality Act (CEQA) and is therefore exempt from environmental review pursuant to CEQA guidelines.
LOCAL PREFERENCE
Local preference is not applicable.
FISCAL IMPACT
Approval of this action will have no impact on the City’s General Fund. It authorizes an amendment to the City’s Five-Year PLHA Plan for the 2022 and 2023 allocations, increasing the income eligibility threshold for the Owner-Occupied Home Rehabilitation Program from 60% to 80% of Area Median Income (AMI).
Attachment: Resolution Approving Five-Year PLHA Plan Amendment