Blogpost
2.6 minute read
September 28, 2026
The California Department of Housing and Community Development (HCD) has launched the 2024–2028 Permanent Local Housing Allocation (PLHA) Formula Allocation cycle.
For jurisdictions that participated in the first PLHA cycle, the program will look familiar—but simply updating the last application will not be enough. Cycle 2 introduces a new Five-Year Plan, reorganized eligible activities, and new considerations for transitioning from existing PLHA activities to the next funding cycle.
What Is Changing in PLHA Cycle 2?
One of the most visible changes is how HCD organizes eligible uses of PLHA funding. The previous eligible activities have been consolidated into three primary categories:
- Rental Activities: generally serving households up to 120% of Area Median Income (AMI), or 150% of AMI in High-Cost Areas
- Affordable Owner-Occupied Workforce Housing Activities: generally serving households up to 120% of AMI, or 150% of AMI in High-Cost Areas
- Homelessness Assistance Activities: serving households up to 30% of AMI
The consolidation is intended to simplify the program, but jurisdictions will still need to determine how existing and proposed programs fit within the new framework.
Cycle 2 also requires jurisdictions to develop a new Five-Year PLHA Plan for the 2024–2028 allocation period, addressing proposed activities, implementation, affordability, and consistency with the jurisdiction’s Housing Element. Jurisdictions must also explain how they will prioritize investments that increase the supply of housing for households at or below 60% of AMI. Housing Element compliance and submission of the applicable Annual Progress Report (APR) remain threshold requirements.
Start With Strategy, Not the Application
For many jurisdictions, the biggest Cycle 2 challenge may not be completing HCD’s application workbook. It will be making the decisions that come first: What should PLHA fund over the next five years? How do existing programs fit within the new framework? What local housing needs should receive priority? And what will be needed to turn the Five-Year Plan into successful programs and projects?
Those questions are particularly important for jurisdictions still administering Cycle 1 funding. The new NOFA generally restricts requesting disbursement of Cycle 2 funds for an activity until previously awarded Cycle 1 funds for that same activity have been fully disbursed and expended, unless HCD approves a waiver. That makes coordination between the two cycles an important part of implementation planning.
Harris Can Help Navigate PLHA Cycle 2
Harris & Associates works with local governments to turn housing funding requirements into practical, implementable programs. For PLHA Cycle 2, that can include evaluating eligible uses and local priorities, developing the Five-Year Plan, coordinating required approvals, preparing application materials, communicating with HCD, and supporting ongoing program administration and compliance.
The new cycle is an opportunity to do more than meet another funding deadline. With the right planning, jurisdictions can navigate the new requirements efficiently while directing PLHA resources toward programs and projects that make a meaningful difference in local housing affordability.
If your jurisdiction is beginning to plan for PLHA Cycle 2, Harris can help sort through the complexities, streamline the application process, and position your PLHA funding to advance local housing priorities.
