The Permanent Local Housing Allocation (PLHA) Program is administered by the California Department of Housing and Community Development (HCD) and was created as part of Senate Bill 2 (SB 2), also known as the Building Homes and Jobs Act, signed into law in 2017. This program is designed to provide ongoing funding to eligible local governments in California to support housing-related projects and programs aimed at addressing the unmet housing needs of their communities. The PLHA is funded through a $75 fee collected on real estate documents, which varies annually based on the volume of recorded real estate transactions.
The PLHA program supports two types of funding: formula allocations and competitive grants. Formula allocations are distributed to entitlement and non-entitlement jurisdictions using a methodology similar to that of the federal Community Development Block Grant (CDBG) program. Competitive grants are available exclusively to non-entitlement jurisdictions and are awarded based on a rigorous application and selection process. These grants prioritize activities that assist individuals who are experiencing or at risk of homelessness.
Eligible activities under the PLHA include predevelopment, development, acquisition, rehabilitation, and preservation of both rental and ownership housing for low- to moderate-income households, including Accessory Dwelling Units (ADUs). The program also supports rapid rehousing, rental assistance, supportive and case management services, navigation centers, emergency shelters, and other homelessness assistance activities. Additional uses include funding for accessibility modifications, down payment assistance, and matching local investments into housing projects or housing trust funds.
Applicants must meet several threshold requirements including having a compliant Housing Element, submitting required reports such as the Annual Progress Report (APR), and providing a detailed five-year plan outlining how funds will be used. Applications must include descriptions of activities, target populations, funding allocations, implementation schedules, and affordability terms. Projects involving homeownership or rental development must include legal agreements such as deeds of trust and regulatory agreements to ensure compliance and long-term affordability.
The most recent PLHA Notice of Funding Availability (NOFA) opened applications for a new round of competitive funding, with submissions due by July 22, 2025. Funding awards and the opening date for application submissions are determined by annual NOFA releases, with the PLHA program being recurring. The program is not offered on a rolling basis; rather, it follows specified application windows and evaluation periods.
All inquiries regarding the program, including reporting and compliance questions, should be directed to the State Grant Management at PLHASGM@hcd.ca.gov. The main office is located at 651 Bannon Street, Sacramento, CA 95811, with additional offices in Sacramento at 9342 Tech Center Drive. The Department emphasizes equitable geographic distribution of funds and requires local governments to prioritize housing for households earning at or below 60% of Area Median Income (AMI).
