Permanent Local Housing Allocation

In 2020, the State of California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA). Funding for this NOFA is provided pursuant to Senate Bill (SB) 2 (Chapter 364, Statutes of 2017).  SB 2 established the Building Homes and Jobs Trust Fund (Fund) and authorizes the Department to allocate 70 percent of monies collected and deposited in the Fund, beginning in calendar year 2019, to local governments for eligible housing and homelessness activities. The intent of the bill is to provide a permanent, on-going source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. The City of Napa submitted an application in 2020 and has since received their share of SB2 funds with 80% delegated to the development of Junior and Accessory Dwelling Units, 15% dedicated to homeless services, and 5% for Administrative Costs. 

The Cities of American Canyon, Calistoga, and St. Helena, and the Town of Yountville, did not submit funding requests at the time for their share of funds. The NOFA has since been released annually with the most recently version published on August 17, 2022.  These jurisdictions were notified that if they did not apply for funds under the August 17, 2022 NOFA, they would forfeit their funding allocations.  The City of Napa provides housing services to these four jurisdictions and staff has worked with each to identify an expenditure plan for each jurisdiction and develop a binding agreement that designates the City of Napa as the administrator of funds. The City of Napa will receive the 5% administrative funds allowed for each jurisdiction as well as direct activity costs to administer the program implementation. 

As part of the application, each City/Town must prepare, solicit public input, and submit a five-year plan on how the City/Town intends to use its allocation of Permanent Local Housing Allocation (PLHA) Program funds.  There are a variety of eligible activities the City may choose to utilize the funds for including:

•    The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary operating subsidies.

•    The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120-percent of area median income (AMI), or 150-percent of AMI in high-cost areas.

•    Matching portions of funds placed into Local or Regional Housing Trust Funds.

•    Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to California Health and Safety Code Section 34176(d).

•    Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing.

•    Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

•    Accessibility modifications in lower-income owner-occupied housing.

•    Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.

•    Homeownership opportunities, including, but not limited to, down payment assistance.

•    Up to 5% of the grant can be used for administrative costs.

On November 15, 2022 at or about 6:30PM, the Napa City Council will consider the PLHA Plan for each delegated jurisdiction and a renewal plan for the City of Napa. The public is invited to attend and comment on the proposed plans, the meeting will be held in the City Council Chambers at 955 School Street in Napa.  Electronic comments may also be submitted to [email protected].