The Carson City Council has unanimously greenlit the redistribution of a state grant specifically earmarked for affordable housing initiatives.
City officials cited the move as a correction to rectify a discrepancy in the state’s Department of Housing and Community Development (HCD)’s original standard agreement percentages for the grant.
However, the adjustment is set to channel more than $1 million ($1,429,030) towards assisting first-time homebuyers in Carson with down payment.
“HCD made an error in the original standard agreement percentages,” a spokesperson for the city said. “Therefore, the city was allowed to reallocate the percentages and amend the five-year plan.”
The state’s permanent local housing allocation (PLHA) grant, administered by the state’s Department of Housing and Community Development (HCD), helps local governments address housing needs within their communities.
Senate Bill 2, enacted in 2017, established the Building Homes and Jobs Trust Fund and authorized the department to provide up to $304 million to help cities and counties address unmet housing needs.
The funds allocated through PLHA can be used for activities such as the development of affordable housing, emergency shelters and transitional housing. Local governments play a key role in deciding how to utilize these funds based on their specific housing challenges.
However, they are required to submit a five-year plan to the HCD on the program allocation and receive approval from the agency.
The PLHA funding fluctuates year by year based on the varying revenue derived from real estate transactions, the spokesperson said.
HCD estimated that Carson will be able to receive total allocations of $2,488,380 over a five-year period ending in 2023.
“Because revenues for 2019 and 2020 have already been collected, Carson will receive $414,730 for 2019 and $644,619 for 2020 (actual amounts),” the spokesperson said. “Based on HCD’s estimate, this would leave Carson with $1,429,031 for years 2021, 2022, and 2023.”
Under the original five-year expenditure plan, which the Carson City Council adopted on Dec. 7, 2021, funds are evenly distributed between three activities.
Under the city’s initial plan, 33.33% of the grant will support first-time homebuyer programs, 33.33% will be allocated to the rehabilitation and preservation of affordable ownership housing, and another 33.33% will be set aside to people experiencing or at risk of homelessness.
On Feb. 7, 2023, the Carson City Council agreed to set aside $50,000 for deferred loans for the PLHA-funded Single-Family Housing Rehabilitation Program, which provides financial assistance to low and moderate income owners of single-family dwellings to improve their homes.
On Oct 3, 2023, the panel allocated $353,116 of the money to support the rehabilitation and preservation of affordable ownership housing. Furthermore, on Nov. 7, 2023, the city council designated $276,486.67 of the PLHA grant for rental assistance to prevent homelessness and to help pay interim housing for qualified Imperial Avalon Mobile Estate residents once they relocate.
The PLHA grant can be used by qualified Imperial Avalon residents for up to $2,500 a month in rental assistance once they relocate, Carson Mayor Lula Davis-Holmes previously told the Breeze.
Each qualified household can get up to $15,000, the mayor said, adding that she encourages the residents to apply for this income-based grant as soon as possible to secure their additional funding.
The city now aims to modify the five-year plan by canceling the first-time home buyer program for the 2019 and 2020 allocations, city staffer said.
Instead, it intends to allocate the remaining PLHA grant, totaling $429,746.33, to the rental assistance program for homelessness prevention and rehabilitation, as well as the preservation of affordable ownership housing.
In addition, the city will reallocate the remaining funds, which come to up to $1,429,030, to the first-time home buyer program for down payment assistance.
To amend its original allocation plan, the city council is required to hold a public hearing to solicit public input, before re-submitting its funding allocation to HCD for approval.
After the reallocation, 50% of the money, or $529,674.50, which come from the city’s 2019 and 2020 allocations, will go towards rehabilitation of owner-occupied single family homes, the spokesperson said.
Another 50% of the city’s 2019 and 2020 allocations, also $529,674.50, will be allocated to homeless prevention for families meeting the 30% AMI, or those households earning less than 30% of the area median income.
The remaining money, which come from the city’s PLHA allocations for 2021, 2022 and 2023, totaling $1,429,030, will be directed towards assisting first-time home buyers with down payment support, the spokesperson said.
The funds cover the period from 2019 to 2023, the spokesperson said. However, no money from the PLHA grant has been used thus far.
