ADMINISTRATIVE REPORT
MEETING DATE: January 22, 2025 AGENDA CATEGORY: CONSENT - Resolutions TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: January 8, 2025
SUBJECT: Resolution Authorizing the City of Bakersfield's Application and Five-Year Plan Amendment for
Permanent Local Housing Allocation (PLHA) Program Funding in the amount of $5,581,895 and Five-Year Plan Amendment
RECOMMENDATION:
Staff recommends adoption of the resolution.
BACKGROUND:
In 2017, the California Legislature enacted the Building Homes and Jobs Act (SB 2), which established a $75 recording fee on all real estate documents, creating a permanent ongoing source of revenue for local governments to address the shortage of affordable housing in their communities. With this new revenue source, the Permanent Local Housing Allocation (PLHA) was established, providing up to $296 million in State funding for the development of new affordable multifamily rental housing and single- family homes.
On October 15, 2024, the State Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) for the PLHA program, identifying entitlement awards for the City of Bakersfield and other eligible local jurisdictions. The City of Bakersfield is currently eligible to receive $5,581,895 in Permanent Local Housing Allocation Funding from CY 2021, CY 2022, and CY 2023 entitlements.
This resolution will allow the City of Bakersfield to apply for PLHA funding and amend the City of Bakersfield’s Five-Year PLHA spending plan to reallocate previously awarded PLHA funding to another eligible affordable housing activity under the PLHA program.
Sixty percent (60%) of this PLHA entitlement funding will be directed toward construction loans for the development of new multifamily rental housing reserved for households making no more than 60% of the local Area Median Income (AMI), and the remining forty percent (40%) will be directed toward the construction of new affordable single-family homes reserved for households making up to or below 120% AMI.
All affordable housing construction loans funded by the City of Bakersfield’s PLHA will be reinvested into the City of Bakersfield’s Affordable Housing Trust Fund (AHTF).
It is important to note that PLHA entitlement funding awards will not be disbursed to the City of Bakersfield by the HCD until the application is determined to have met all threshold requirements, including a compliant Housing Element that has been approved by HCD.
As of December 23, 2024, HCD has rejected the City of Bakersfield’s 6th Cycle (2023-2031) Revised Draft Housing Element and has requested substantial revisions to the Housing Element draft for the City to comply with State Housing Element Law.
No award will be made until deficiencies are addressed to the satisfaction of HCD. Once the Housing Element has been approved, City staff will submit any additional items State requires to obtain a complete PLHA application package if needed.
Staff is recommending adoption of this Resolution, authorizing the City to apply for PLHA funding and amend the City of Bakersfield’s Five-Year PLHA spending plan to increase the inventory of affordable multi-family housing developments and single-family homes within the City of Bakersfield.
FISCAL IMPACT:
No fiscal impact.
COUNCIL GOAL:
Safety and Resilience
ATTACHMENT:
Resolution