Item Number: 13
City Council / Board of Directors
Written Communication
Meeting of: December 2, 2025
Submitted By:
Alex Jauregui, City Planner
Subject:
Budget Amendment - Round 4 and 5 Permanent Local Housing Allocation (PLHA) Program
Recommendation:
That the Honorable City Council approve Resolution No. 25-083, authorizing an amendment to the annual budget for Fiscal Year 2025/2026 to reflect an additional appropriation of revenues and expenditures in the amount of $958,251.00.
Fiscal Impact:
Acting in accordance with the staff recommendation will increase both revenue and expenditures under the Fiscal Year (“FY”) 2025/2026 annual budget by $958,251.00. This funding has no match requirement and is provided in the form of a direct payment with reporting requirements. Administrative costs are not allowed to exceed five percent of the Grant amount. Resolution No. 25-083 (Attachment A) would increase the revenue and expenditure amounts of the following accounts:
Account Amount Adjusted
2704020-43110-20591 (REVENUE) Year 4 $542,468.00
2704020-52300-20591 (EXPENSE) Year 4 $542,468.00
2704020-43110-20592 (REVENUE) Year 5 $415,783.00
2704020-52300-20592 (EXPENSE) Year 5 $415,783.00
Total $958,251.00
Strategic Plan Goal:
Utilizing PLHA Program funds will comply with the City of Victorville 2023-2026 Strategic Plan by addressing Goal A (Financial Sustainability), Goal C (Community and Economic Development), and Goal D (Reduce Homelessness) as follows:
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Goal A. Financial Sustainability – This goal aims to foster fiscal health through disciplined long-term planning, cost control, increased revenues, and cost recovery.
The PLHA Program is a State funding source that can be utilized for the operation of a navigation center (i.e. City Wellness Center) that provides interim housing and support services for homeless and at-risk populations. The City Council approved a 5-Year Plan in 2021 (Attachment C), which allocates the PLHA funding to the Wellness Center for construction and/or operational activities to address the subject Strategic Plan goal.
Goal C. Community and Economic Development – This goal is intended to support the economic vitality and preservation of the community for all its members. PLHA funding addresses this goal by providing resources to local governments for housing- related projects and programs that assist in addressing the unmet housing needs of local communities, and thereby supports the preservation of the community by providing services that connect the unhoused to housing. Goal D. Reduce Homelessness – Strategies 3 and 4 of the Strategic Plan call for expansion on the existing homelessness outreach network to effectively engage the homeless community in services as well as an evaluation of the effectiveness of coordination of homelessness services. The subject PLHA funding helps implement these strategies by providing additional funding to ensure the ongoing operation and sustainability of the City’s Wellness Center.
Background:
On August 17, 2022, and later amended on October 18, 2022, the State of California’s Department of Housing and Community Development (“HCD”) issued a Notice of Funding Availability (“NOFA”) announcing the grant opportunity for entitlement and non- entitlement local governments under the Permanent Local Housing Allocation (“PLHA”) program. Funding for this NOFA is provided pursuant to Senate Bill (“SB”) 2 (Chapter 364, Statutes of 2017). SB 2 established the funding source and authorizes HCD to allocate 70 percent of monies collected, beginning in calendar year 2019, to local governments for eligible housing and homelessness activities.
The intent of SB 2 was to provide a permanent, on-going source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. Based on eligible activities contained within the NOFA and the City’s goals for addressing rising homelessness, the City prepared an application and adopted a 5-Year Plan in 2021 through Resolution No. 21- 110 (Attachment C). This enabled the City to obtain and use the PLHA funds for the development and operation of the “Wellness Center", a navigation shelter offering interim housing and supportive services for individuals experiencing or at-risk of homelessness.
Under this formula, the City has already been awarded three previous year awards, $632,770 for Round 1, $983,520 for Round 2, and $1,082,334 for Round 3. Round 1 funds were utilized for pre-development design and engineering for the Wellness Center campus. Round 2 funds were utilized for capital construction costs for the campus, and 4 4
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Round 3 funds are currently being utilized to offset the operational costs of the Wellness Center. With the acceptance of Program Years 4 and 5, the City of Victorville is expected to receive $3,656,875 in this first five year span, which is less than our original estimate of $3,796,620.
To be eligible for PLHA funding, cities and counties must have a certified General Plan Housing Element and must file all required annual Housing Element Annual Progress Reports with HCD. The City of Victorville has met these prerequisites.
Discussion:
On August 7, 2025, HCD issued an award announcement for the City’s fourth and fifth year award, totaling $958,251 (Attachment B). In accordance with the approved 5-Year PLHA Plan, these funds will be used for operational costs associated with the Wellness Center, with administration costs not to exceed 5% of the award amount or $47,912.55.
The City Council previously authorized the application for PLHA Program funding for the first five-year period and authorized the City Manager to execute all necessary applications and documents to facilitate receipt and utilization of PLHA funds (Attachment C). Therefore, staff recommends approval of Resolution No. 25-083 (Attachment A) to amend the current fiscal year budget, which will allow for the utilization of these funds.
Prepared By:
Sarah St. Louis, Management Specialist
William Lamas, Homelessness Solutions Manager
Attachments: A. Resolution No. 25-083, PLHA Budget Amendment B. PLHA Round 4 and 5 Award Letter
C. Resolution No. 21-110, 5-Year PLHA Plan