Agenda Item #16.1
For Council Meeting of: October 13, 2026
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: MEGAN BASINGER, DIRECTOR OF HOUSING AND COMMUNITY SERVICES SUBJECT: APPROVAL OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FUNDS AND ADOPTION OF THE 2024–2028 PLHA PLAN AGENDA ACTION: RESOLUTION
RECOMMENDATION
The Housing and Community Services Department recommends that the Council: 1) conduct a public hearing regarding the proposed Permanent Local Housing Allocation Program application and 2024–2028 PLHA Plan; and 2) by resolution, approve the submittal of an application to the California Department of Housing and Community Development for formula allocations of $487,369 for 2024 and $522,044 for 2025, as part of a five-year allocation of up to $3,046,056 and adopt the 2024–2028 PLHA Plan. This item has no impact on the current fiscal year budget.
EXECUTIVE SUMMARY
On July 16, 2026, the California Department of Housing and Community Development (HCD) released the Permanent Local Housing Allocation (PLHA) Program 2024–2028 Formula Allocation Notice of Funding Availability. The PLHA Program is funded by revenues generated under Senate Bill 2, enacted in 2017, which established an ongoing source of funding for housing-related projects and programs. As a formula-allocation recipient, the City of Santa Rosa is eligible to receive up to $3,046,056 over the five-year period. To apply for the 2024 and 2025 allocations of $487,369 and $522,044, respectively, HCD requires the City Council to conduct a public hearing, adopt a five-year PLHA Plan, and authorize submission of the application.
GOAL
This item relates to Council Goal #5 - Plan for and Encourage Housing for All and Reduce Homelessness by expanding access to more affordable housing opportunities for low-income households.
BACKGROUND/PRIOR COUNCIL REVIEW
The PLHA Program was created through Senate Bill 2, which established a $75 recording fee on certain real estate documents to provide an ongoing source of funding for local governments to increase the supply of affordable housing. PLHA Program requirements identify eligible activities such as the predevelopment, development, acquisition, rehabilitation, and preservation of multifamily rental housing affordable to households earning up to 120 percent of area median income (AMI). Program guidelines allow applicants to use up to five percent of each allocation for program administration.
The City was previously awarded $4,012,612 of PLHA program funds under its 2019-2023 NOFA. These funds are administered by the Housing Authority of the City of Santa Rosa and have been committed to four (4) affordable housing projects totaling 196 units that are in varying stages of development.
ANALYSIS
The PLHA Program is administered by HCD and provides an ongoing source of grant funding for eligible housing-related activities. As a formula-allocation applicant, the City is eligible to apply for up to $3,046,056 over the 2024–2028 period. The City may use up to five percent of the grant proceeds, or approximately $152,303, for program administration.
Although PLHA formula funding is noncompetitive, HCD requires the City to submit an application and an adopted five-year PLHA Plan using the resolution template provided by HCD. The City must also execute a Standard Agreement and comply with the PLHA Program Guidelines. HCD requires the Mayor to execute PLHA Program documents unless the City has delegated that authority to another designated officer by ordinance.
Pursuing this grant opportunity and being awarded up to $3,046,056 in PLHA grant funds will assist with the creation and maintenance of affordable housing in Santa Rosa and will assist the City in addressing the community’s housing needs, a top Council priority. Additionally, PLHA grant funds allow the City to increase the funding resources made available to affordable housing developers and strengthen the competitiveness of those developments for additional funding resources such as federal and state tax credit financing.
FISCAL IMPACT
Approval of this action will have no impact on the General Fund or the current fiscal year budget. If awarded, PLHA funds will be recognized and appropriated through the applicable City budget process and used only for eligible activities identified in the adopted PLHA Plan and permitted by the PLHA Program Guidelines.
ENVIRONMENTAL IMPACT
Pursuant to CEQA Guidelines Sections 15378(b)(4) and 15378(b)(5), the recommended action is not a project subject to the California Environmental Quality Act (CEQA) because it consists of applying for governmental funding, adopting a funding plan, and undertaking related administrative activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment. Approval of the application and PLHA Plan does not approve or commit the City to a particular housing development or other physical activity. Any future project receiving PLHA funding will be subject to separate environmental review under CEQA, as applicable. In the alternative, the recommended action is exempt pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that the action will not have a significant effect on the environment.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Notice of the public hearing was published in the Press Democrat on October 2, 2026.
ATTACHMENTS
Attachment 1 – draft PLHA Plan
Resolution
Exhibit A – 2024–2028 PLHA Plan
PRESENTER(S)
Angela Morgan, Program Specialist II
APPROVAL OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FUNDS AND ADOPTION OF THE 2024–2028 PLHA PLAN PAGE 3 OF 3