1 SAMPLE
PERMANENT LOCAL HOUSING ALLOCATION
AGREEMENT BETWEEN THE CITY OF VISALIA AND
XYZ ORGANIZATION
THIS AGREEMENT (the “Agreement”) is made this 1st day of _____, 2026, (the “Effective Date”) by and between XYZ Organization., a private, non-profit community-based organization (hereinafter “SUBRECIPIENT”), and the City of Visalia, a Charter Law city of the State of California (the “City”). The City and SUBRECIPIENT may be referred to collectively herein as the “Parties” or individually as a “Party.”
RECITALS
A. These Recitals are a material part of the Agreement and incorporated in the substantive and binding terms of the Agreement as if fully set forth therein.
B. The Permanent Local Housing Allocation (PLHA) Program was established by California housing legislation, the Building Homes and Jobs Act (SB 2, 2017), which receives 70% of the revenue generated by a $75 recording fee on real estate documents to increase the supply of affordable housing in California, and which allows operating costs for transitional housing for people experiencing homelessness.
C. The City adopted the second PLHA five-year plan on September 21, 2026, which included $XXX Dollars and 00/100 of PLHA funds for the operation of PLHA eligible activity, a PLHA project for homeless individuals.
D. SUBRECIPIENT desires to work cooperatively with the City to provide meals to Visalia homeless residents, residing at _____, and more particularly described and identified in Exhibit “A” - Project Approach, attached hereto and incorporated herein (the “Project”). Said Project will be committed to an extremely low-income “Limited Clientele”, who are homeless, in accordance with PLHA program requirements as set forth herein (the “Project”).
E. The Property is within the jurisdictional boundaries of the City. The operation of the Project will be accomplished using PLHA, and other non-city funding sources.
F. The City is vested with the authority to use PLHA funding for a variety of purposes, including providing funding to a community-based non-profit for operation of a public facility to be operated by a non-profit as transitional-bridge housing for people experiencing homelessness.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and subject to the terms and conditions hereinafter stated, Subrecipient and City agree as follows:
I. PROJECT DETAILS.
A. SUBRECIPIENT agrees to utilize the funding providing through this Agreement for purposes of operation of the Project. The Property shall be owned by Subrecipient which has contracted Subrecipient to operate the facility (_________) as the lead organization and project
2 manager. Subject to the specific terms and conditions contained herein, the following documents contain the general understanding of the parties with regards to the City’s funding for SUBRECIPIENT’s operation of the Project: “Project Detail” provided by SUBRECIPIENT to the City, which shall be incorporated herein as Exhibit A – Project Approach; (2) “Project Budget” spreadsheet provided by SUBRECIPIENT, which shall be incorporated herein as Exhibit B – Project Budget.
B. As consideration for SUBRECIPIENT’s obligations hereunder, the City shall provide PLHA funds in the amount not to exceed $XXX Dollars and 00/100, for the period of July 1, 202_, through June 30, 202_, to assist Subrecipient with operational costs of _____.
C. SUBRECIPIENT shall assist City as required to maintain compliance with the requirements of the Permanent Local Housing Allocation (PLHA) program under Chapter 364, Statutes of 2017 (SB, Atkins -hereinafter “SB 2”) as authorized by Health and Safety Code (HSC) Section 50470, which created the Building Homes and Jobs Trust Fund and the PLHA program. Subrecipient also agrees to comply with all other applicable State, and local laws, regulations, and policies governing the funds provided under this Agreement. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.
II. GRANT COMPLIANCE.
A. Restrictions Requirements. SUBRECIPIENT agrees that the Project shall be used as transitional-bridge housing, benefitting extremely low-income clientele, who are literally homeless, as per the requirements of PLHA.
B. Client Certification. The Qualified Person shall complete an “Client Certification” application, the form for which shall be provided to SUBRECIPIENT by the City, to collect the necessary information and documentation to ensure that the Qualified Person will meet the qualifying requirements stated above. Annually, SUBRECIPIENT must certify in writing to the City with appropriate supporting documentation that the income determinations required by this Section have been completed in accordance with the PLHA requirements.
C. Maintenance of the Project. SUBRECIPIENT shall maintain the Project in accordance with the custom and practice generally applicable to public facilities in the City of Visalia. Said maintenance shall include, but not be limited to, the building, sidewalks, lighting, landscaping, irrigation of landscaping, and any and all other improvements on the Property.
D. Resident Conduct. SUBRECIPIENT, its successors and assigns shall ensure that any Qualified Person residing at the Project conduct themselves in accordance with the following standards:
i. Standards of aesthetics for residents regarding use and condition of the exterior amenities of the Facility, including patios and entryways. ii. Noise standards that comply with City requirements and limits. iii. Rules related to open/recreational areas that address, at a minimum, alcoholic beverage use, and public nuisance activities.
3 iv. Parking prohibition of inoperative vehicles, boats, trucks of one-ton capacity and over, trailers and/or recreational vehicles within the complex. v. Standards of behavior for residents that could lead to eviction.
E. Maintenance and Operations. SUBRECIPIENT agrees to serve as the Property manager/Project operator for the Project. SUBRECIPIENT shall obtain City’s approval, which shall not be unreasonably withheld, if SUBRECIPIENT arranges for a third party to serve as the Property manager/Project operator. SUBRECIPIENT and its agents or assigns will comply with or otherwise implement the following Property management/Project operation activities:
i. Subrecipient shall comply with all development standards, city codes, and ordinances. Buildings and premises, including paint/siding, roofs, windows, fences, parking lots, landscaping, and electrical systems shall be kept in good repair. Premises shall be kept free of junk and debris.
ii. Subrecipient shall provide a regular program for the control of infestation by insects, rodents, and other pests.
iii. Where conditions are attributable to normal wear and tear, SUBRECIPIENT shall make repairs and arrangements necessary to put and keep the premises in as good condition as required by law.
iv. SUBRECIPIENT shall maintain all electrical, plumbing, heating, and other facilities in good working order.
v. SUBRECIPIENT shall maintain the Public Facility in reasonably weather tight condition and good exterior appearance.
vi. SUBRECIPIENT shall remove graffiti within forty-eight (48) hours of it having been observed and/or reported.
vii. SUBRECIPIENT shall provide overnight access for the Visalia Police Department to SUBRECIPIENT’s maintenance and management staff in person, by telephone, or email. Such numbers shall be provided to the Visalia Police Department dispatch center and updated promptly as changed.
viii. SUBRECIPIENT shall establish and conduct a regular program of routine maintenance for the facility. Such program shall include, but not necessarily be limited to, regular inspections of common areas, restrooms, and other similar activities that typically require attention at periodic intervals, but not necessarily continuously. ix. The name and phone number of SUBRECIPIENT or SUBRECIPIENT’s contracted Property management/Project operator shall be posted in a prominent location at the front of the property.
x. SUBRECIPIENT shall maintain decorative planting in a manner that does not obstruct or diminish lighting and visibility throughout the complex and common areas.
4 xi. SUBRECIPIENT shall manage the complex in a manner that does not permit inoperative vehicles, boats, trucks (one-ton capacity and over), trailers and/or recreational vehicles to be parked in the facility.
III. DEFAULT AND REMEDIES
A. Failure to Perform. Failure by SUBRECIPIENT to duly perform, comply with, or observe any of the conditions, terms, or covenants of this Agreement shall constitute a breach of this Agreement, such failure having continued uncured for thirty (30) days after receipt of written notice thereof by SUBRECIPIENT from City. Alternatively, if the breach cannot reasonably be cured within thirty (30) days, SUBRECIPIENT shall not be in breach so long as SUBRECIPIENT is diligently undertaking to cure such breach and such breach is cured within ninety (90) days.
B. Notice of Default and Opportunity to Cure. For any breach of this Agreement, City shall give written notice to SUBRECIPIENT of any breach of the Agreement by specifying:
i. The nature of the event or deficiency giving rise to the breach of the Agreement.
ii. A date, which shall not be less than thirty (30) calendar days from the date of receipt of the notice, by which such action to cure must be taken. The City has the sole discretion to determine whatever additional reasonable time, up to ninety (90) days, is needed to cure.
C. Remedies. Upon the occurrence of a breach of the Agreement, and a failure to cure said breach within the time specified, the City's obligation to disburse funds shall terminate, and City may also, in addition to other rights and remedies permitted by the Agreement or applicable law, proceed with any or all of the following remedies in any order or combination City may choose in its sole discretion:
i. Terminate this Agreement, in which event City funds previously disbursed shall become due and payable within thirty (30) days, including any loan payments that may have otherwise been forgiven pursuant to Section I(C) herein. ii. Bring an action in equitable relief seeking the specific performance by Borrower of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of said terms and conditions, and/or seeking declaratory relief. iii. Pursue any other remedy allowed by law or in equity.
D. Hardship Exemption. If SUBRECIPIENT cannot comply with the requirements of this Agreement for any reason, SUBRECIPIENT may request City to alter SUBRECIPIENT’s obligations hereunder on terms acceptable to City, but no such request may be made later than thirty (30) days after City has delivered to SUBRECIPIENT notice of a breach or violation of this Agreement. SUBRECIPIENT must deliver the request in writing to City. The request must set out the reasons why SUBRECIPIENT cannot comply with this Agreement and must describe any hardship to SUBRECIPIENT that compliance would cause. City is under no obligation to grant any relief and may proceed with its remedies under this Section III, at law and in equity,
5 despite SUBRECIPIENT’s request or the hardship involved. The relief, if any, is to be determined by City in its sole discretion.
E. Right of Contest. SUBRECIPIENT shall have the right to contest in good faith any claim, demand, levy, or assessment, the assertion of which would constitute a breach of the Declaration hereunder. Any such contest shall be prosecuted diligently and, in a manner, non- prejudicial to City or the rights of City hereunder.
F. Remedies Cumulative. No right, power, or remedy given to City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to City by the terms of any such instrument, or by any statute or otherwise against SUBRECIPIENT and any other person. Neither the failure nor any delay on the part of City to exercise any such rights and remedies shall operate as a waiver of such right or remedy, nor shall any single or partial exercise by City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
IV. GENERAL PROVISIONS
A. Notices, Demands and Communications between the Parties. Any approval, disapproval, demand, document or other notice ("Notice") which any party may desire to give to the other parties under this Agreement must be in writing and may be given by any commercially acceptable means, including, but not limited to email and/or via overnight courier, to the party to whom the Notice is directed at the address of the Party as set forth below, or at any other address as that Party may later designate by Notice.
To City: City of Visalia, Finance Department
Attention: Housing Division
707 W. Acequia Avenue
Visalia, CA 93291
(559) 713-4460
[email protected]
To SUBRECIPIENT: XYZ Organization
Attention: _______
123 Main Street
Visalia, CA 93291
Any Notice shall be deemed received immediately if delivered by hand, on the third day from the date it is postmarked if delivered by first-class mail, postage prepaid, upon receipt of verification of receipt if sent via email, and on the next business day if sent via nationally recognized overnight courier. Notices sent by a Party's attorney on behalf of such Party shall be deemed delivered by such Party.
B. Compliance with Chapter 364, Statutes of 2017 (SB 2, Atkins – hereinafter “SB 2”) as authorized by Health and Safety Code (HSC) Section 50470, which created the Building Homes and Jobs Trust Fund and the PLHA program. SUBRECIPIENT must provide transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8255(b)(8).
6 C. Records Maintenance. SUBRECIPIENT shall retain all records pertinent to the Project and activities and expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement or after the resolution of all State audit findings, whichever occurs later. SUBRECIPIENT shall maintain data documenting resident eligibility for housing and/or services provided. Such data shall include, but not be limited to, resident name, address, income level, ethnicity, and description of housing and/or services provided. Reporting to City by SUBRECIPIENT of compliance with this provision shall be accomplished by delivering the initial “Income Certification” application/form which shall be provided to SUBRECIPIENT by the City. Thereafter, ongoing monitoring shall also include submission of annual audits, review of partner agreements, review of cash flows, reserves and capital improvements as requested by City. In addition, SUBRECIPIENT shall, if requested by City, provide to City a report or any other documentation relative to partnerships agreements, operational statements, including cash flow, reserves and capital improvements, occupancy, Resident composition, and such other matters as City shall reasonably request to ensure compliance.
D. Assignment, Transfers and Successors. For purposes of this Agreement, "Transfer" shall mean any sale, assignment, or transfer, whether voluntary or involuntary, of any rights and/or duties under this Agreement, and/or any interest in the Project or the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, a partnership interest, a leasehold interest, a security interest, or an interest evidenced by a contract by which possession of the Project is transferred.
i. No Transfer shall be permitted without the prior written consent of the City.
ii. The approval of transfers by SUBRECIPIENT to another legal entity wholly controlled and managed by SUBRECIPIENT shall be permitted by the City and approval of said transfer shall not be reasonably withheld.
F. Severability. In the event any term or provision of this Agreement is deemed to be in violation of law, null and void, or otherwise of no force or effect, the remaining terms and provisions of this Agreement shall remain in full force and effect.
G. Parties Not Co-Venturers. Nothing in this Agreement is intended to, or does, establish the City and SUBRECIPIENT as partners, co-venturers or principal and agent with one another.
H. Warranties. City expresses no warranty or representation to SUBRECIPIENT as to fitness or condition of the Property or the Project, other than those specifically contained in the Purchase and sale Agreement between the Parties.
I. Attorney’s Fees. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the party prevailing in any such action shall be entitled to recover against the party not prevailing, its reasonable attorney’s fees and costs incurred in such action.
7 K. Indemnification Regarding Project. SUBRECIPIENT agrees to indemnify, protect, hold harmless and defend (by counsel reasonably satisfactory to City) the City, and its respective Council members, officers and employees from all liability arising out of the Project, the Property, and SUBRECIPIENT’s operation of the Project, to the extent that such liability arises from the acts or omissions of SUBRECIPIENT, its subcontractors or guests. This provision shall survive expiration and/or termination of this Agreement.
L. Governing Law. This Agreement shall be interpreted under the laws of the State of California.
IN WITNESS WHEREOF, Purchaser has executed this Agreement, effective the day and year first set forth above.
SUBRECIPIENT
Dated: _____________________ By:________________________________
Its: _____________, Chief Executive Officer
CITY OF VISALIA
Dated: ______________________ By: _____________________________
Its: Leslie Caviglia, City Manager
APPROVED AS TO FORM
By: ____________________________
City Attorney