CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 30, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AGREEMENT TO DELEGATE PERMANENT LOCAL
HOUSING ALLOCATION FUNDS TO THE COUNTY OF RIVERSIDE
DEPARTMENT OF HOUSING AND WORKFORCE SOLUTIONS TO
ADMINISTER AFFORDABLE HOUSING PROJECTS AND PROGRAMS
FOR THE CITY OF PALM SPRINGS
FROM: Scott C. Stiles, City Manager
BY: Housing and Community Development
SUMMARY:
This action seeks City Council approval to enter into an Agreement with the County of Riverside Department of Housing and Workforce Solutions. Under the Agreement, the City will delegate Permanent Local Housing Allocation (PLHA) funds to the County of Riverside to administer affordable housing projects and programs on behalf of the City of Palm Springs for Allocation Years 2024-2028.
RECOMMENDATION:
1) Approve the Agreement with the County of Riverside, Department of Housing and Workforce Solutions to delegate Permanent Local Housing Allocation funds to the County of Riverside to administer affordable housing projects and programs for the City of Palm Springs; and,
2) Authorize the City Manager or their designee to execute the Agreement, including making minor, non-substantive changes and to sign all documents necessary.
BACKGROUND:
In 2017, Governor Brown signed into law the Building Homes and Jobs Act (SB 2) to address the State's housing shortage and high housing costs. SB 2 established a $75 recording fee on real estate documents to provide a permanent source of funding to all local governments in California to help cities and counties implement plans to increase the affordable housing stock. The program created by SB 2 is the Permanent Local Housing Allocation Program, or PLHA. Allocations to local government were based on the 2017 Federal Community Development Block Grant formula for California. The total
City Council Staff Report
September 30, 2026 -- Page 2
PLHA Agreement
formula component allocation anticipated for Palm Springs over the five-year term of the Agreement (Allocation Years 2024-2028) is $843,356.
On July 9, 2020, the City Council approved the first delegation of PLHA funds to the County of Riverside, Department of Housing and Workforce Solutions, who has been administering the funds for use within the city of Palm Springs.
STAFF ANALYSIS:
PLHA funds can be utilized in a number of ways that help increase the supply of housing for households at or below 60% of area median income: assistance to affordable owner- occupied workforce housing; assist persons experiencing or at risk of homelessness; facilitate housing affordability; and promote projects and programs to meet the local governments unmet share of Regional Housing Needs Allocation (RHNA).
The PLHA program allows local governments to delegate their PLHA allocations to another local government to administer the PLHA funds on its behalf subject to a legally binding agreement between the parties and funds are expended for eligible activities. It is requested that the City Council approve, and authorize the City Manager to execute, the Agreement.
The City Council approved the first delegation of PLHA funds in 2020. The City allocation for PLHA funds was $1.1 million. Those funds were delegated to the County and were leveraged to provide the City with $3.1 million from the County’s pooled PLHA funds. The County used the PLHA funds to provide first-time homebuyer loans to Palm Springs residents and contributed $3 million in pooled PLHA funds towards the Aloe Palm Canyon development.
For the current PLHA allocation, the County will agree to expend no less than the amount allocated to the City within the City’s limits over the term of this Agreement. Palm Springs' allocation for the five-year term of the Agreement is anticipated to be $843,356.
As proposed, the County of Riverside anticipates utilizing the PLHA funds for the following eligible activities:
Rental Activities which the State defines as predevelopment, development, acquisition, rehabilitation, preservation costs, necessary operating subsidies, or any combination thereof, for Multifamily Housing.
Affordable Owner-Occupied Workforce Housing Activities which include homeownership opportunities, such as down payment assistance.
The County would also be responsible to enter into the Standard Agreement for PLHA, submitting all required PLHA reports to the City and State of California, including Progress Reports, Budget Reports, and Close-Out Reports. It should be noted that the PLHA program is not the same program as the First-Time Homebuyer Program currently in City Council Staff Report
September 30, 2026 -- Page 3
PLHA Agreement
development as part of the housing programs addressing the Section 14 requests.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(b)(5) of the CEQA Guidelines, approval of the PLHA agreement constitutes an organizational or administrative activity of government that will not result in either a direct or reasonably foreseeable indirect physical change in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Housing.
FISCAL IMPACT:
There is no direct fiscal impact to the General Fund. The City will be able to leverage its PLHA allocation to receive affordable housing services provided by the County of Riverside.
REVIEWED BY:
Department Director: Jay Virata
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Draft Agreement for PLHA Allocation Palm Springs