Community Development Department
Housing and Neighborhood Services Bureau
411 West Ocean Boulevard, 3rd Floor, Long Beach, CA 90802 562.570.6949
California Department of Housing and Community Development, Permanent Local Housing Allocation (PLHA) Formula Allocation 2024 - 2028
Five-Year Plan
Eligible Applicant Type: Entitlement
Local Government Recipient of PLHA Formula Allocation: Long Beach Five-Year 2024-2028 Allocation Cycle Estimate*: $12,840,025 Five-Year 2024-2028 Allowable Local Admin (5% of
Allocation):
$642,001
*The 2024-2028 Formula Allocation includes funding from revenue collected from 2024 through 2028, available to the City of Long Beach beginning July 2026 to February 2032. The total of the actual allocations at the end of the Five-Year Allocation Cycle may be lower, and any disbursements made will be based on the actual allocation amounts not the estimated amount. §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The City of Long Beach will use PLHA funds to provide gap financing for the development of new affordable multifamily residential rental housing projects serving households earning up to 150% of the Area Median Income (AMI).
Attachment A
§302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).
PLHA funds will be made available to affordable housing developers through a competitive Notice of Funding Availability (NOFA) process. Each NOFA will seek development proposals that include new affordable housing units for households with incomes at or below 60% of AMI. The City has extensive experience with this model. Approximately 80% of the City's current pipeline of upcoming affordable housing units are restricted for households earning at or below 60% AMI. §302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.
Providing funding for affordable housing and assisting in new construction of affordable housing is one of the key policies in the City’s Certified Housing Element. In particular, Program 1.6, Affordable Housing Development Assistance requires the City to provide loans to developers (gap financing) to encourage the development of affordable housing units to facilitate the housing production and affordability goals set forth in the 2021 - 2029 RHNA.
Activities Detail
§301(a)(1) PLHA Formula Rental Activities (Up to 120% AMI or 150% AMI in High-Cost Areas). §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental Housing Activity.
The proposed Plan directs 95% of the City’s PLHA funding to the development of new affordable rental housing projects serving households earning up to 150% AMI, with prioritization for projects serving households earning up to 60% AMI.
The remaining 5% of the City's PLHA funding will be used for eligible administration costs. Use of PLHA funds for this unmet housing need is consistent with the City’s Adopted 2021-2029 Certified Housing Element, Program 1.6, Affordable
housing Development Assistance. The City currently has a pipeline of proposed projects needing financial gap assistance. These projects serve a variety of household types and income levels from 30% to 80% AMI, with most units serving households earning at or below 60% AMI. One or more of the projects can utilize PLHA funds.
Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2024-2028 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the highest AMI to be served.
Funding Allocation Year 2024 2025 2026 2027 2028 Total
Type of Rental Activity
Development
of Affordable
Multifamily
Rental
Housing
Development
of Affordable
Multifamily
Rental
Housing
Development
of Affordable
Multifamily
Rental
Housing
Development
of Affordable
Multifamily
Rental
Housing
Development
of Affordable
Multifamily
Rental
Housing
§302(c)(4)(E)(i) Percentage of Funds Allocated for
the Proposed Affordable Rental Housing Activity 95% 95% 95% 95% 95% §302(c)(4)(E)(ii) Area Median Income Level Served
Note: Enter the maximum AMI % allowed 150% 150% 150% 150% 150% §302(c)(4)(E)(ii) Unmet share of the RHNA at the AMI
Level
Note: Complete for years 2024 through 2028
2,874 2,874 2,874 2,874 2,874 14,370
§302(c)(4)(E)(ii) Projected Number of Households
Served 50 50 50 50 50 250
§302(c)(4)(E)(iv) Period of Affordability for the
Proposed Affordable Rental Housing Activity
(55 years mandatory for Multifamily Rental
Housing Projects)
55 55 55 55 55
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
The City will issue a competitive NOFA for the development of affordable multifamily residential rental housing projects for a minimum of 30 calendar days. A review period will immediately follow, where highly qualified City staff will review all
proposals, and the most successful projects will be identified. Selected projects must demonstrate that they have the capacity to secure other funding sources (i.e. tax credits, county funds, state funds, etc.). The City’s Housing Commission (The Long Beach Community Investment Company) will approve a loan to the selected developer who will then receive a commitment of PLHA funds for the purposes of gap funding. When the developer has secured all necessary financing for a project, the City will enter into an Affordable Housing Loan Agreement with the developer for a residual receipts loan. The loan will be secured by a Deed of Trust and accompanied by a detailed Regulatory Agreement. City staff will monitor construction and coordinate the conversion to permanent financing following the completion of construction. The City has well trained and experienced monitoring staff that will conduct the annual covenant monitoring process after a project is placed in service. Developers that demonstrate shovel-readiness will be funded first. It typically takes three to four years to complete a project from NOFA release to occupancy. The City will likely issue one to two NOFAs each year to maintain an ongoing pipeline of projects in development.
Total Percentage of Funds Allocated Calculator (2024 - 2028) 2024 Allocation
- Year 1
2025 Allocation
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Year 5
Admin
Requested 5% Admin Requested 5% Admin Requested n/a Admin Requested n/a Admin Requested n/a Funds
Allocated 95% Funds Allocated 95% Funds Allocated n/a Funds Allocated n/a Funds Allocated n/a Total
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