ADMINISTRATIVE REPORT
MEETING DATE: May 13, 2026 AGENDA CATEGORY: Consent Public Hearings TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: April 29, 2026
SUBJECT: Resolution Authorizing the City of Bakersfield Amendment to Permanent Local Housing Allocation (PLHA) 5-Year Plan
Public Hearing to receive public comments on the amended PLHA 5-Year Plan and Resolution authorizing 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 is currently eligible to receive $2,621,239 in Permanent Local Housing Allocation funding for calendar years 2022 and 2023 entitlements.
This resolution will allow the City of Bakersfield to amend the 5-Year PLHA spending plan to reallocate previously awarded PLHA funding to another eligible affordable housing activity under the PLHA program. Fifty-five percent (55%) 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 remaining forty percent (40%) will be directed toward supporting homeownership of new affordable single-family homes reserved for households making up to or below 120% AMI.
All City of Bakersfield PLHA funds will be reinvested into the City’s Affordable Housing Trust Fund (AHTF) for distribution through a Notice of Funding Availability (NOFA). Staff is recommending adoption of this Resolution, thereby authorizing the City to amend its 5-Year PLHA spending plan to increase the inventory of affordable multi-family housing developments and single-family homeownership.
FISCAL IMPACT:
The Permanent Local Housing Fund is a State Entitlement grant and the sources are from taxes collected by the state. There is no fiscal impact to the City’s General Fund.
COUNCIL GOAL:
Economic Opportunity for All
ATTACHMENT:
1. Resolution
2. Exhibit A – PLHA 5-Year Plan Amendment