POINT ARENA CITY COUNCIL
AGENDA ITEM SUMMARY
AGENDA ITEM: VIII A
MEETING DATE: 3/25/2025
TITLE
City of Point Arena Permanent Local Housing allocation Program (PLHA): OwnerOccupied Housing Rehabilitation and Accessory Dwelling Unit Loan Program
RECOMMENDED ACTION
No action required.
ANALYSIS
In 2017, the California legislature passed the "Building Homes and Jobs Act" (SB 2) which included the establishment of a permanent $75 recording fee on real estate documents starting in 2019 to help fund local government efforts to increase the supply of affordable housing. SB2 requires that 70% of the revenues collected by the fee be allocated to local governments through the Permanent Local Housing Allocation (PLHA) program. The goal of the PLHA program is to help cities and counties prioritize investments that increase the supply of housing for households earning up to 120% of the area median income. The PLHA funds are allocated annually based on the number of countywide real estate transactions and a formula prescribed under federal law for the Community Development Block Grant program.
The City of Point Arena's PLHA allocations thus far are as follows:
Calendar
Year
Funds
Formula
Allocation
Amount
Allowable Local
Administration
Amount
Activity
Delivery
Amount
Expenditure
Deadline
2019 $67,404 $3,370 $64,034 4/30/2024
2020 $103,785 $5,189 $98,596 4/30/2025
2021 $114,174 $5,709 $108,465 4/30/2026
2022 TBD 5% 95% 4/30/2027
2023 TBD 5% 95% 4/30/2028
The City plans to use PLHA funds for the following activities:
(1) rehabilitation of lower- and moderate-income owner-occupied housing; and (2) construction of new ADUs that are affordable to lower-income households and individuals where either the primary residence or the ADU are owner-occupied.
For both activities, the City will award low and/or deferred-interest loans to eligible homeowners for qualifying projects. The City will establish and implement procurement procedures that are consistent with PLHA requirements. Point Arena's PLHA ADU and Housing Rehabilitation Loan programs will be made available through an over-thecounter application process. Eligible applicants will carry out projects using PLHA funds alone or in combination with other funds. Funding recommendations made by City program committee will be taken to the City Council for final approval. The City will enter into agreements with eligible homeowners and will monitor their progress against these agreements.
Program Eligibility Income Limits Based on Household Size Set by State:
Number of Personsin Household: 1 2 3 4 5 6 7 8
Mendocino
County Area
Median Income:
$90,400
Acutely Low 9500 10850 12200 13550 14650 15700 16800 17900 Extremely Low 19000 21700 25820 31200 36580 41960 47340 52720 Very Low Income 31650 36200 40700 45200 48850 52450 56050 59700 Low Income 50650 57850 65100 72300 78100 83900 89700 95450 Median Income 63300 72300 81350 90400 97650 104850 112100 119350 Moderate Income 75950 86800 97650 108500 117200 125850 134550 143200
FISCAL IMPACT
All program costs are covered under PLHA annual allocation.
ATTACHMENTS
PLHA Community Meeting April 19, 2025
CITY MANAGER SIGNATURE
_________________________________
Peggy Ducey, Interim City Manager
PROGRAM OVERVIEW
Funding Source:
California Department of Housing and
Community Development (HCD)
Permanent Local Housing Allocation (PLHA)
Why is the City launching this program? Purpose and Goals • Preserve existing housing and prevent further deterioration by operating a no-interest forgivable loan program to eligible homeowners to fund repairs.
• Loan minimum $25,000, maximum $50,000.
Am I eligible to apply? Eligibility Criteria
• Income Limits
• Ownership & Occupancy
• Single-family or Manufactured Homes
What repairs can I have done? Eligible Activities
• Roof repair or replacement
• Foundation Repair
• Window Replacement
• Siding/Weatherproofing
• Exterior Paint
• Accessory Dwelling Unit
APPLICATION &
INTAKE
•Complete
application
•Gather all
required
documents
•Contact
Consultant to
schedule
application
intake
appointment
•Meet with
program staff to
review
application
INSPECTION &
COST ESTIMATE
•City staff
schedule home
visit
•Prepare scope
of work & cost
estimate
•Homeowner
select
contractor(s)
from prequalified list
•Homeowner
obtains quote(s)
•Homeowner
gives copy of
quote(s) to the
Consultant
SCORING & LOAN
UNDERWRITING
• Consultant
prepares loan
proposal
• City Loan
Committee
reviews and
scores loan
proposals.
•Homeowner
notified of
results
• If approved,
application sent
to loan
underwriting
• City and
homeowner sign
loan documents
CONTRACT
DOCUMENTS
•Homeowner and
contractor sign
contract for
repairs
CONSTRUCTION
PROCESS
• Contractor
obtains permit(s)
• City conducts
interim
inspections, as
needed.
• City conducts
final inspection
CLOSING
PROCESS
• Contractor
gives City copy
of final invoice
• Letter of
completion and
acceptance of
repairs signed
by City and
homeowner.
30-45 days 3 weeks 1-3 months 2 weeks
PROPOSED PROCESS