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BACKGROUND In September 2017, the California Legislature approved Senate Bill 2 (SB2), known as the Building Homes and Jobs Act, which established a $75 recording fee on real estate documents, with funds collected to be directed to increase the supply of affordable housing. SB2 established the Permanent Local Housing Allocation program administered by the State of California, Department of Housing and Community Development. The PLHA program provides a permanent source of funding to cities and counties to assist in meeting local affordable housing needs. Under the PLHA program, funding is provided through formula-based grants to entitlement jurisdictions based on a formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a 5-year period. Title 42 U.S. Code § 5306 established the CDBG Entitlement Program to provide federal CDBG grant funds to entitled cities with populations of at least 50,000 to develop viable urban communities for low- and moderate-income persons. The City, as a CDBG entitlement jurisdiction since 1994, is eligible to receive an estimated amount of$906,534 over a 5-year funding period (see table below). Note that this total is only an estimate and annual PLHA amounts are subject to change based on the amount of document recordation fees collected; it is currently unknown how much actual revenue the State collected in calendar year 2022 and will collect in 2023. City of Pleasanton Estimated Five-year Allocation 2019 $151,089 2020 234,839 2021 258,433 2022 131,086 2023 131,087 $906,534 DISCUSSION The City applied for 3 years of funding (reflecting actual 2019, 2020 and 2021 program revenues) amounting to $644,361 in October 2022, and in May 2023 signed a Standard Agreement with HCD after the City was awarded the $644,361 PLHA funds. PLHA funds may be used for a wide range of programs, including programs to increase the city's affordable housing stock, as well to address homelessness. The eligible use category the City has selected for the City's PLHA fund allocation is category 301(a)(6): "Assisting persons who are experiencing or at-risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and new construction, rehabilitation, and preservation of permanent and transitional housing". Page , of