Permanent Local Housing Allocation Program (PLHA)

The Permanent Local Housing Allocation (PLHA) Program is administered by the California Department of Housing and Community Development (HCD) under the authority of the Building Homes and Jobs Act (SB 2, 2017). This act was part of a larger 15-bill housing package aimed at increasing California’s affordable housing stock and addressing the state’s housing shortage and high housing costs. The program is funded through a $75 real estate document recording fee, generating a permanent revenue stream with allocations beginning in 2019. The funds are divided, with 70 percent designated for local government housing needs and 30 percent for other state housing programs. The PLHA program provides formula-based and competitive grants to entitlement and non-entitlement local governments, respectively. Eligible uses of these funds include the predevelopment, acquisition, development, and rehabilitation of affordable rental and ownership housing, including accessory dwelling units. Funds can also support homeownership initiatives such as down payment assistance, efforts to reduce homelessness through services and transitional housing, and fiscal incentives for intergovernmental collaboration on affordable housing projects. Specific funds must be allocated for Affordable Owner-Occupied Workforce Housing (AOWH), and a minimum of 40 percent of funding is required for these activities by first-time applicants under the current NOFA. Eligibility for the formula component is limited to local governments designated under the federal Community Development Block Grant (CDBG) formula for FY 2017, with delegation allowed to other jurisdictions or regional/local housing trust funds via legally binding agreements. Competitive grants are available only to non-entitlement jurisdictions. To qualify, applicants must meet strict threshold criteria including compliance with housing element law and submission of Annual Progress Reports. Detailed five-year plans are required, specifying how funds will address local unmet housing needs and regional housing needs allocations. The 2023 Notice of Funding Availability (NOFA) includes approximately $320 million across allocations from calendar years 2021 ($59.9 million), 2022 ($132.1 million), and 2023 ($128.6 million). Applications for 2023 funds open on October 15, 2024, and must be submitted online. For 2021 funds, applicants must submit complete applications by February 28, 2025 (or April 1, 2025, for Los Angeles and Ventura counties). All 2021 funds not awarded by June 30, 2025, will revert to the Housing Rehabilitation Loan Fund for future multifamily housing projects. Submissions must include board-authorized resolutions, a detailed five-year plan, compliance documentation, and relevant certifications. Applications will be accepted and reviewed on a rolling basis until June 30, 2027. For questions, applicants are directed to email PLHA@hcd.ca.gov. Technical assistance and webinars are also available through the PLHA program website.