Agenda Item Wording:
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Public Hearing and 5-year PLHA Plan approval. Public Hearing to adopt the Permanent Local Housing Allocation Program (PLHA) 5-year Plan, authorize submission of the Plan to the California Department of Housing and Community Development (HCD), appropriate PLHA funding, and approve Resolution 2026-60.
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Agenda Date: 09/21/2026
Prepared by: Margie Perez, Housing Specialist, margie.perez@visalia.gov <mailto:margie.perez@visalia.gov>, (559) 713-4460; Nichol Ritchie, Finance Manager, nichol.ritchie@visalia.gov <mailto:nichol.ritchie@visalia.gov>, (559) 713-4379; Renee Nagel, Finance Director, renee.nagel@visalia. <mailto:renee.nagel@visalia.>gov, (559) 713-4375
Department Recommendation:
Staff recommends that Council:
1.Conduct a public hearing, allowing an opportunity for citizens to comment on the proposed 5-year PLHA Plan;
2. Adopt the proposed 5-year PLHA Plan and appropriate PLHA funding for FY 25/26, 26/27, & 27/28. FY 28/29 & 29/30 will be appropriated with the next two-year budget;
3. Authorize the City Manager or their designee to enter into contracts necessary to implement the 5-year PLHA Plan;
4. Authorize staff to submit the final 5-year PLHA Plan to HCD; and 5.Approve Resolution 2026-60.
Summary:
The proposed Permanent Local Housing Allocation (PLHA) 5-year Plan for Fiscal Years (FY) 2025/26 through FY 2029/30 was reviewed and discussed by Council on September 8, 2026, with an opportunity provided to the public to comment. At that meeting, Council directed staff to move forward with the 5-year PLHA Plan as presented. The California Department of Housing and Community Development (HCD) PLHA guidelines require a 10-day public comment period with public noticing and a subsequent public hearing to ensure the public has an adequate opportunity to review and comment on the content of the 5-year PLHA Plan.
Staff is returning with the final draft 5-year PLHA Plan for Council to conduct a public hearing, consider adoption of the Plan, and authorize its submission to HCD.
Background Discussion:
The Permanent Local Housing Allocation Program (PLHA) was created by housing legislation passed in 2017 to address the shortage of affordable housing in California. This program receives 70% of the revenue generated by a new $75 recording fee on real estate documents; therefore, the annual revenue from the fee will fluctuate based upon the number of real estate transactions each year.
Annually funds are appropriated by the Legislature as part of the State budget act, the California Department of Housing and Community Development (HCD) will issue a Notice of Funding Available (NOFA) detailing each jurisdiction’s PLHA allocation. The initial response to the NOFA is an online application, which must include a 5-year Plan detailing the manner in which these funds will be used for eligible activities, in accordance with program guidelines. Upon approval of this initial online application, the funding will be made available on an annual basis, in accordance with the approved 5-year Plan.
PLHA NOFA: The Calendar Year (CY) 2024-2028 (FY 2025/26 - FY 2029/30) PLHA NOFA was released on July 16, 2026. The 5-year CY 2024-2028 PLHA NOFA is an Over-the-Counter application and will remain open throughout the 5-year term. At this time, jurisdictions can request funds for FY 2025/26 and FY 2026/27 allocations. Due to a delay at the State level associated with revisions to PLHA program requirements, the FY 2025/26 allocation was not made available during that fiscal year and is therefore being released concurrently with the FY 2026/27 allocation.
Resolution Requirements: The 5-year PLHA Plan application must include an authorizing resolution. The Mayor must be listed as the Authorized Representative on the City’s resolution and all application materials submitted under the PLHA NOFA.
The Resolution should use the 5-year estimate of funding rather than a specific annual allocation amount, as listed in Appendix B of Attachment B - CY 2024-2028 PLHA NOFA to reduce the need for updated resolutions during the period of the Standard Agreement.
HCD will execute a Standard Agreement for the entire 5-year 2024-2028 Allocation Cycle and, as such, the jurisdiction’s required resolution shall include a 5-year estimate of PLHA formula allocations, as the maximum funding amount. Please Note: The total of the actual allocation amounts for the 5-year Allocation Cycle may be lower, and all disbursements will be based on the actual allocation amounts. If it is determined after the final allocation has been calculated that a jurisdiction’s actual 5-year total exceeds the original estimate, a new resolution will be required to reflect the actual total.
Administration Cap: The PLHA administration cap is set at 5% of the annual allocation.
Eligible Activities:
All PLHA activities are required to address housing needs of low-income citizens of Visalia and planned activities must be limited to those eligible under program guidelines. The original ten eligible activities have been consolidated into the following three activity categories:
• Rental Activities (Up to 120% AMI)
o Development or rehabilitation of affordable multi-family rental housing.
o Match funds for Local or Regional Housing Trust Fund.
• Affordable Owner-Occupied Workforce Housing Activities (Up to 120% AMI)
o Development or rehabilitation of affordable single-family housing.
o Development or rehabilitation of an Accessory Dwelling Unit (ADU).
o Acquisition and rehabilitation of foreclosed or vacant properties.
o Accessibility modifications to owner-occupied housing.
o Downpayment assistance.
• Homelessness Assistance Activities (Up to 30% AMI)
o Rapid rehousing, rental assistance, case management, and motel vouchers.
o Operating and capital costs for navigation centers and emergency shelters.
o Development, rehabilitation, and preservation of permanent and/or transitional housing.
o Capitalized reserves of permanent supportive housing.
PLHA Proposed 5-Year Plan
PLHA allows up to 5% for administration. Staff recommends using the remaining PLHA funding to assist persons experiencing homelessness or at-risk of homelessness and focus on activities which are established as high priorities for the City but currently have no other significant source of funding available from City sources. To minimize the need for budget amendments resulting from fluctuations in the annual allocations, HCD recommends that the Plan identify funding by percentage of the annual allocation. This reduces the need for minor budget adjustments during the 5-year contract term and streamlines the subsequent annual applications for funding. Table 1: Proposed PLHA Funding by Percentage shows the proposed activities to receive funding by percentage and Table 2: Estimated PLHA Funding by Activity shows the proposed amounts for each activity in this 5-year Plan. *Please note that years 3, 4, and 5 (FY 2027/28, FY 2028/29, and FY 2029/30) are estimated based on current City of Visalia housing permit issuance.
*Years 3, 4, and 5 are estimated based on current City of Visalia housing permit issuance.
The approved Plan may be reallocated among eligible activities with minor amendments for changes of less than 10% of each activity’s allocation, or major amendments which will require proper notice, a public hearing, and final approval from the Council and HCD. This will allow adjustments to the Plan during the 5-year contract term to achieve the best allocation of this resource for housing needs in the City of Visalia.
Discussion of Proposed Activities:
• Administration (5%) - The PLHA administration cap is set at 5% of the annual allocation. The average PLHA administration annual allocation is estimated at $27,000 to manage the PLHA program.
• The Visalia Navigation Center (65%) - The proposed PLHA Plan includes 65% of the annual allocation to Community Services Employment and Training, Inc. (CSET) for the Visalia Navigation Center operating costs. The average PLHA annual allocation is estimated at $353,000. The Visalia Navigation Center is a 20,000 square foot facility that provides transitional housing with robust on-site services including enhanced case management, trauma informed care, rapid rehousing services, housing search, landlord mitigation, mental health services, substance abuse prevention, financial literacy, life skills workshops, and job training/placement, to assist individuals experiencing homelessness transition into permanent housing placement.
• Seasonal Temporary Emergency Shelter (15%) - The proposed PLHA Plan includes 15% of the annual allocation to the Visalia Homeless Center to operate a seasonal temporary emergency shelter also referred to as a Warming Center. The average PLHA annual allocation is estimated at $82,000. The seasonal Warming Center provides overnight shelter to people experiencing homelessness during the winter months between December through March of each year.
• Eden House Bridge Housing (15%) - The proposed PLHA Plan includes 15% of the annual allocation to Kings View for the preservation of Eden House a transitional bridge housing project. The average PLHA annual allocation is estimated at $82,000. Eden House is a transitional bridge housing project that provides up to 12 months of transitional housing to those awaiting a permanent housing unit.
Public Comment Period:
PLHA guidelines require a 10-day public comment period to allow the public adequate opportunity to review the draft 5-year PLHA Plan, public noticing, and holding a public hearing to provide the public an opportunity to comment on the 5-year PLHA Plan. The 10-day public comment period for review of the draft 5-year PLHA Plan began on September 11, through September 21, 2026. During the 10-day public comment period the draft plans were available for public review on the City’s website at www.visalia.gov. Public notices were published on City’s social media outlets, and in the Visalia Times Delta on September 11, 2026. Public notices were also included in Kings/Tulare Homeless Alliance and the Community Coalition email listservs. Tonight’s public hearing is the final step in the public comment period.
Fiscal Impact including annual maintenance and operating costs: Approval of this item will appropriate PLHA funds as proposed in the 5-year PLHA Plan. The City of Visalia’s annual allocation of PLHA funding is projected to generate a total of approximately $2.72 million to meet the housing needs of low-income Visalia residents over five years, with average annual projected funding of approximately $543,000.
Prior Council Action:
● July 20, 2020: 5-year PLHA Plan for FY 20/21 - FY 24/25
● December 3, 2024: Work session and Council direction on the development of the 5-Year PLHA Plan for FY 2025/26 - FY 2029/30
● September 8, 2026: Council review and direction on draft 5-year PLHA Plan for FY 2025/26 - FY 2029/30
Alternatives: None recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to:
1. Conduct a public hearing, allowing an opportunity for citizens to comment on the proposed 5-year PLHA Plan;
2. Adopt and appropriate the proposed 5-year PLHA Plan;
3. Authorize the City Manager or their designee to enter into all contracts as listed in the 5-year PLHA Plan;
4. Authorize staff to submit the final 5-year PLHA Plan to HCD; and
5. Approve Resolution 2026-60.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 09/21/2026
Attachments:
Attachment A - Resolution 2026-60
Attachment B - CY 2024-2028 PLHA NOFA
Attachment C - CY 2024-2028 PLHA Guidelines
Attachment D - PLHA Survey Results
Attachment E - PLHA Proposed 5-year Plan Tables
Attachment F - Sample Subrecipient Agreement
Attachment G - PLHA 5-year Plan PowerPoint
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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