Funding and Eligibility


PERMANENT LOCAL HOUSING APPLICATION (PLHA)

In September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate documents to increase the supply of affordable housing. The Act establishes the Permanent Local Housing Allocation (PLHA) program administered by the California Department of Housing and Community Development (HCD). The PLHA provides a permanent source of funding to cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing units. HCD released its first Notice of Funding Availability for these funds on February 26, 2020.
Under the PLHA, funding is provided through formula grants to entitlement jurisdictions based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a five-year funding period, as well as through a competitive grant program to non-entitlement jurisdictions. The City of Menifee is an entitlement jurisdiction and is eligible to receive an estimated $1.2M or approximately $251,604 annually, over the five-year funding period. It is important to note that this is only an estimate since annual PLHA amounts are subject to change. This is because funding for the PLHA is generated through a fee on real estate transactions, which may fluctuate from year to year. According to HCD, the City will receive first-year funds October 2020.
The State requires entitlement jurisdictions to use PLHA funds to increase the supply of affordable housing. In order to receive PLHA funds, the City is required to submit a PLHA Plan (Plan) detailing the manner in which allocated funds will be used; a description of the way the Local government will prioritize investments that increase the supply of housing for households at or below 60 percent of AMI; a description of how the Plan is consistent with the programs set forth in the City’s Housing Element; and evidence that the Plan was authorized and adopted by resolution by the City Council and that the public had an adequate opportunity to review and comment on its content.
The City of Menifee’s public comment period runs from July 4, 2020 through July 14, 2020.

Public comments are encouraged and should be submitted to publiccomments@cityofmenifee.us or  Edna I. Lebrón, Sr. Management Analyst at elebron@cityofmenifee.us 
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CDBG Funding
Federal regulations require that CDBG funds be used for eligible activities that meet one of 3 national objectives:
  • Aid in the prevention or elimination of slums or blight
  • Benefit to low and moderate income persons
  • Meet a need having a particular urgency
The City of Menifee uses its annual CDBG allocation to fund projects and activities undertaken by city departments and community-based service providers specifically to address the housing and community development needs of low and moderate income persons in the City of Menifee.

CDBG funding can be used for a variety of activities to meet HUD statutory goals including but not limited to the following items:

1. Decent Housing
  • Assisting homeless persons obtain affordable housing
  • Assisting persons at risk of becoming homeless
  • Retention of affordable housing stock
  • Increasing the availability of affordable permanent housing in standard condition to low-income and moderate-income families, particularly to members of disadvantaged minorities without discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability
  • Increasing the supply of supportive housing which includes structural features and services to enable persons with special  needs (including persons with HIV/AIDS) to live in dignity and independence; and that is accessible to job opportunities.
2. A Suitable Living Environment
  • Improving the safety and livability of neighborhoods
  • Increasing access to quality public and private facilities and services
  • Reducing the isolation if income groups within areas through spatial deconcentration of housing opportunities for lower income persons and the revitalization of deteriorating neighborhoods
  • Restoring and preserving properties of special historic, architectural, or aesthetic value
  • Conservation of energy resources
3. Expanded Economic Opportunities
  • Job creation and retention
  • Establishment, stabilization and expansion of small business (including micro businesses)
  • The provision of public services concerned with employment
  • The provision of jobs to low-income persons living in areas affected by those programs and activities or jobs resulting from carrying out activities under programs covered by the plan
  • Access to capital and credit for development activities that promote long-term economic and social viability of the community
  • Empowerment and self-sufficiency for low-income persons to reduce generation poverty in federally assisted housing and public housing

CDBG Eligibility
The City of Menifee will only consider funding proposals for CDBG eligible activities that serve primarily low and moderate income persons residing in the City of Menifee. Funded activities or facilities must be available to all eligible persons in the general public. Not more than 15% of these funds can be used for public service projects.

Eligible CDBG Activities
Please note this list is not inclusive of all types of activities that may be eligible under the CDBG Program:
  • Acquisition, construction or rehabilitation of neighborhood facilities for public use*
  • Acquisition, construction or rehabilitation of facilities for persons with special needs* (e.g. homeless persons, battered spouses, frail elderly, disabled adults, abused children, etc.)
  • Rehabilitation of housing units for low-moderate-income persons*
  • Economic development activities that create full-time jobs for low- and moderate-income persons
  • Health care and substance abuse services
  • Child care and after-school programs
  • Transitional housing and supportive services for the homeless
  • Crime prevention activities
  • Parks, playgrounds, and recreational facilities
  • Senior and disabled centers, except 24-hour care facilities
  • Removal of architectural barriers, which restrict mobility of persons with disabilities
*Please note that applicants for capital project funding must own the property to be assisted.

Ineligible CDBG Activities
Please note this list is not inclusive of all types of services that may be ineligible under the CDBG Program:
  • General government expenses
  • Political activities
  • Religious activities
  • Purchase of construction equipment
  • Purchase of equipment*, fixtures, motor vehicles, furnishings, or other personal property that is not an integral structural fixture
*Equipment is defined as nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more.