Permanent Local Housing Allocation (PLHA) Program

Background

In 2017, Governor Brown signed Senate Bill 2 (SB 2), titled the "Building Homes and Jobs Act," which was adopted in conjunction with other housing legislation. This law specifically establishes a permanent ongoing source of funding dedicated to promoting and facilitating affordable housing development. The source of funding is secured through a fee that is imposed at the time of recording for every real estate instrument, paper, or notice for each single real estate transaction on a parcel of property. Sales of single-family homes are exempt from this fee. The fee of $75 became effective January 1, 2018.

The State Department of Housing and Community Development (HCD) administers the SB 2 Permanent Local Housing Allocation (PLHA) program. The revenues collected for the PLHA program will be used to implement planning policies and facilitate the production of affordable housing and homelessness prevention programs throughout California. Under this grant program, local governments that are entitlement cities and receive Community Development Block Grant (CDBG) funding are eligible for this grant funding. As an entitlement City, San Juan Capistrano's PLHA funding allocation will be based upon the federal formula used to allocate CDBG funding. 

Eligible PLHA activities include, but are not limited to, the following:

1. Acquisition and development costs for affordable, multi-family rental housing;
2. Acquisition, development, rehabilitation, or preservation costs for affordable rental and ownership housing;
3. Assisting persons experiencing or at risk of homelessness, including rapid re-housing, rental assistance, operating and capital costs for emergency shelters, and creation and preservation of permanent and transitional housing;
4. Accessibility modifications in lower-income, owner-occupied housing; and
5. Homeownership opportunities, including down payment assistance.

To be eligible for grant funds, the local government agency must have:

1. A certified and compliant Housing Element;
2. Completed the Annual Progress Report (APR) on the Housing Element and submitted the APR to HCD, per state law.

The City of San Juan Capistrano is compliant with both of these requirements.

PLHA Five-Year Plan 

The PLHA program requires the preparation of a Five-Year Plan (for funds generated in 2019-2023) outlining the proposed use of these funds. The City Council approved the five-year plan on October 4, 2022, for the following activities:

1. 32% for rehabilitation of housing owned and occupied by households earning less than 120% of the area median income.
2. 47% for assisting persons experiencing or at risk of homelessness, including rapid re-housing and support services.
3. 16% for accessibility modifications in lower-income, owner-occupied housing.
4. 5% for administrative tasks associated with the PLHA funding.

As the City of San Juan Capistrano's population and the need for more affordable housing and homeless assistance continue to grow, the City amended the five-year plan to allocate additional funds to activities to address homelessness prevention programs, the growing homeless population, and evenly distribute the remaining funds between rehabilitation and accessibility improvements for lower income owner occupied households. The revised plan reallocated funds as follows:

1. 21% for rehabilitation of housing owned and occupied by households earning less than 120% of the area median income.
2. 55% for assisting persons experiencing or at risk of homelessness, including rapid re-housing and support services.
3. 19% for accessibility modifications in lower-income, owner-occupied housing.
4. 5% for administrative tasks associated with the PLHA funding.

The City Council adopted the PLHA Five-Year Plan Amendment (PDF) on June 17, 2025.