Permanent Local Housing Allocation 2024–2028 Formula
Allocation Five-Year Plan
City Council – October 13, 2026
1 • The 2017 Building Homes and Jobs Act established a $75 recording fee on real estate documents
• California Department of Housing and Community
Development (HCD) allocates the revenue to jurisdictions in five-year cycles
• The funding must be used to address unmet housing
needs
Permanent source of funding for affordable housing
Permanent Local Housing Allocation (PLHA)
2 • On July 16, 2026, HCD released a Notice of Funding Availability for the second five-year cycle of PLHA funding
• HCD guidelines require the City to develop a plan that describes how the PLHA funds will be used over the next five years • On September 16, 2026, the LBCIC conducted a public hearing on the proposed plan and recommended that City Council adopt the plan and authorize its submission to HCD
Long Beach Community Investment Company Public Hearing
7 • The funds supported four affordable rental housing developments • Combined total of 371 new units
The City received $16.9 million for the first 5-year cycle PLHA First Cycle Funding
3 Alamitos on 4th St. Senior Housing, Mercy Housing The Armory Senior Housing, Linc To receive PLHA funds for this cycle, the City must adopt a plan that describes:
The City is expected to receive up to $12.8 million for the second 5-year cycle
PLHA Second Cycle Funding
4 How funds will be used to address unmet housing needs How investments will prioritize households earning at or below 60% of the Area Median Income (AMI)
How the plan aligns with the City’s Housing Element
• Provided to affordable housing developers as loans through competitive Notice of Funding Availability (NOFA) process
• NOFAs will seek projects that include units for households earning up to 60% AMI
• While PLHA allows up to 150% AMI, projects serving households above 80% AMI are likely not financially feasible in the overall affordable housing funding landscape
95% of funds: Development of new affordable rental
housing for households up to 150% AMI
Proposed Expenditure Plan for PLHA Second Cycle Funding 5 5% of funds: Eligible administration costs
• Long Beach has a severe shortage of affordable housing • Housing Element Program 1.6 requires the City to provide loans to developers to develop affordable housing units to help meet the City’s affordable housing goals
Overwhelming need to develop more affordable housing units Plan Alignment with the City’s Certified Housing Element 6 • PLHA guidelines require that the public be given at least 10 days to review and comment on the proposed Plan
• City staff posted the plan on the Community Development website on August 27, 2026
• Notified residents and stakeholders of the opportunity to review and comment on the plan leading up to the LBCIC
public hearing on September 16, 2026
• Newspaper postings in the Press Telegram (English) and La Opinion (Spanish)
• Email notifications
Public Comment Period
7 Adopt a Resolution approving the PLHA 2024–2028 Formula Allocation Five-Year Plan and authorizing the City Manager, or designee, to execute the Application, Standard Agreement, and any documents and subsequent amendments or modifications thereto, with the California Department of Housing and
Community Development, to accept and expend PLHA Program grant funds in an amount not to exceed $12,840,025 over a five-year period. (Citywide)
Recommendation
8 Thank you Stephanie Harper
Development Project Manager
Community Development Department
[email protected]
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