CITY OF MENIFEE
SUBJECT: Permanent Local Housing Allocation Program Grant MEETING DATE: March 18, 2026
TO: Mayor and City Council
PREPARED BY: Edna I. Lebrón, Senior Management Analyst
REVIEWED BY: Orlando Hernandez, Community Development Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Accept Year five of the Permanent Local Housing Allocation Program Grant from the California Department of Housing and Community Development in the amount of $165,325 for Menifee’s First Time Homebuyers Down Payment Assistance Program; and
2. Adopt a budget amendment resolution amending the Fiscal Year 2025/2026 budget, appropriating $165,325 of grant funds in revenue and expenditures; and
3. Authorize the City Manager to execute all other necessary grant-related documents thereof to receive the Permanent Local Housing Allocation Program Grant.
DISCUSSION
On July 15, 2020, the City Council authorized staff to apply for the Permanent Local Housing Allocation (PLHA) grant funds and approved a five-year expenditure plan for the City’s estimated $1.2 million formula allocation from the California Department of Housing and Community Development (HCD). The approved use of PLHA funds included homeownership opportunities, such as down payment assistance.
On August 4, 2021, the City Council accepted the first PLHA funds allocation in the amount of $251,604, and the City received the full allocation in March 2022. On November 16, 2022, the City Council accepted the second allocation of funding totaling $391,071, which was fully received in November 2022.
On November 6, 2024, the City Council accepted the third and fourth PLHA funds allocations totaling $646,059. The City received these funds in full in January 2025.
The City has since received formal notification of a fifth allocation in the amount of $165,325.
Consistent with the approved application, these funds would continue to support the City’s First-Time Homebuyer Down Payment Assistance Program.
PLHA Rounds 5
March 18, 2026
3 2
0 3
The Down Payment Assistance Program provides low-income, first-time homebuyers with a no- interest, deferred-payment loan of up to $100,000 to cover down payment assistance and/or closing costs. Through this program, the City continues to promote and sustain strong neighborhoods by expanding access to homeownership opportunities for its residents.
The City of Menifee, in partnership with Neighborhood Housing Partnership Services, Inc. (NPHS), has successfully assisted 10 low- to moderate-income residents in becoming homeowners and is currently processing one additional application.
TABLE 1: PLHA PROGRAM ALLOCATION
Allocation
Year
Budget
YR
Appropriation
Grant
Amounts
Less 5%
Admin
Down
Payment
Assistance
Amount
Expended
Balance Expenditure
Deadline
Year 1 7/1/2019 $251,604 $12,580 $239,024 $239,024 $0 4/30/2024 Year 2 7/1/2020 $391,071 $19,554 $371,517 $371,517 $0 4/30/2025 Year 3 7/1/2021 $430,361 $21,518 $408,843 $389,459 $19,384 4/30/2026 Year 4 7/1/2022 $215,698 $10,785 $204,913 $0 $204,913 4/30/2027 Year 5 7/1/2023 $165,325 $8,266 $157,059 $0 $157,059 4/30/2028 Totals $1,454,059 $72,703 $1,381,356 $1,000,000 $381,356
STRATEGIC PLAN OBJECTIVE
Thriving Economy
FISCAL IMPACT
The fiscal impact for the acceptance of the grant is $165,325 in both revenue and expenditures, to be recognized in fiscal year 2025/2026. The State grant revenue budget would be increased within the Grant Fund (2301-441002) and there would be an appropriation of expenditures to the Permanent Local Housing Allocation Program grant for professional services and down payment assistance (2301-CDD-PLNG-17054-Various) as outlined in Table 1 below.
Description Object Code Amount
Grant Revenue 441002 $165,325.00
Administration 652800 $ 8,266.00
Down Payment Assistance 658045 $157,059.00
The City’s PLHA Program would be fully grant-funded and allocated through HCD. There is no required match by the City through the Grant Program.
ATTACHMENTS
1. Grant Award Notification Letter
2. Signed PLHA Agreement with HCD
3. Grant Summary Report
4. Budget Amendment Resolution – Fund 2301