Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director
Andy Flores, Management Analyst
Subject:
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CONSIDERATION OF A RESOLUTION AUTHORIZING THE APPLICATION FOR AND RECEIPT OF CYCLE 2 SENATE BILL 2 PERMANENT LOCAL HOUSING ALLOCATION GRANT FUNDS AND APPROVING THE PROPOSED FIVE-YEAR PLAN
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Summary:
The City has received Permanent Local Housing Allocation (PLHA) grant funds since 2021 and has continued to use these funds for approved activities consistent with the PLHA Guidelines and the City’s Cycle 1 five-year plan. Specifically, the City has used Cycle 1 funding to provide street outreach, engagement, and case management services to individuals experiencing homelessness within the City. These services connect individuals with housing resources, supportive services, and assistance to obtain and maintain stable housing.
On July 16, 2026, a Notice of Funding Availability was released for Cycle 2, covering calendar year allocations from 2024 through 2028. The available allocations are $132,693 for 2024 and $142,394 for 2025, totaling $275,087. Allocations for 2026 through 2028 remain to be determined but are estimated to range from $120,000 to $150,000 annually. Including the 2024 and 2025 allocations, total Cycle 2 funding could range from $635,087 to $725,087. All estimated figures are subject to change and may be proportionally updated to reflect annual funding allocation adjustments.
Background:
Senate Bill 2 (SB 2), enacted in 2017, established an ongoing funding source for affordable housing and eligible homelessness activities through the PLHA program, administered by the California Department of Housing and Community Development.
The City has received PLHA funds since 2021 under Cycle 1, covering calendar year allocations from 2019 through 2023. The City has successfully carried out its five-year plan by supporting street outreach, engagement, and case management services for individuals experiencing homelessness. PLHA funding has helped sustain these services, strengthen connections with local service providers, and connect participants with housing resources, essential services, and assistance to obtain and maintain stable housing.
Implementation of the plan has had a positive impact on the City of San Clemente by supporting a consistent and coordinated response to homelessness. Through ongoing engagement and individualized assistance, the program has helped address barriers to housing and provided a dependable resource for vulnerable residents. The proposed Cycle 2 plan would build on this foundation and continue supporting these services through allocations for calendar years 2024 through 2028.
Discussion:
PLHA funding has supported the City’s ongoing efforts to address homelessness through street outreach, engagement, and case management services under Homeless Assistance Activities - §301(a)(6) of the Cycle 1 PLHA Guidelines. These services provide a consistent point of contact for individuals experiencing homelessness and help connect them with housing opportunities, health and behavioral health services, and other essential resources. Through regular engagement, staff build relationships with participants, assess individual needs, and coordinate assistance to address barriers to obtaining and maintaining stable housing. The program has positively impacted the community by supporting a coordinated response to homelessness and strengthening connections between individuals, City staff, and local service providers. Continued outreach allows staff to follow up with participants, assist them in navigating available resources, and support progress toward housing stability. This approach also provides a resource for responding to community concerns and coordinating assistance for vulnerable residents.
PLHA funding has provided a fiscal benefit by offsetting eligible personnel and service delivery costs associated with operating the program. This dedicated funding source helps reduce the amount of other City resources needed to sustain outreach and case management services. It also supports continuity in program operations and allows the City to plan for service delivery over multiple years, subject to annual funding availability. Staff proposes continuing these services under the Cycle 2 five-year plan for calendar year allocations from 2024 through 2028. Maintaining Homeless Assistance Activities - §301(a)(3) as the funding priority would build on the City’s existing program, preserve established relationships with participants and service providers, and continue directing resources toward individuals experiencing homelessness with incomes at or below 60 percent of Area Median Income.
Considerations Identified by Staff:
Staff considered the importance of maintaining continuity in the City’s street outreach, engagement, and case management services, along with the fiscal benefit of using PLHA funds to offset eligible program costs and reduce reliance on other City funding sources. Continued funding would support consistent participant follow-up, preserve relationships with individuals experiencing homelessness, and maintain coordination with local and regional service providers. While the 2024 and 2025 allocations total $275,087, allocations for 2026 through 2028 remain to be determined, requiring expenditure projections and service levels to remain aligned with actual funding availability and the City’s approved budget. Staff will continue documenting eligible expenditures, services provided, and participant outcomes to meet grant reporting requirements and evaluate program effectiveness. Staff also recognizes that progress toward stable housing depends on the availability of affordable housing, appropriate placements, and supportive services that meet individual needs. Continuing Homeless Assistance Activities - §301(a)(3) under the Cycle 2 plan would sustain the City’s established approach while allowing staff to adjust program expenditures to reflect annual funding allocations and community needs.
Council Options:
• Adopt Resolution No. 26-169 which will, (1) authorize the submission of the application and proposed five-year plan for Cycle 2 PLHA grant funds, (2) authorize the City Manager or their designee to execute the application and related forms, (3) accept revenues in the amount of $275,087 from PLHA to revenue account no. 027-000-33492, and (4) authorize a related budget appropriation in the amount of $275,087 to expenditure account 027-821-43890.
• Adopt Resolution No. 26-169 with modifications.
• Continue the item and direct staff to provide additional information. Note that continuing the item may result in reduced funding allocations due to a delayed application submission.
• Do not adopt Resolution No. 26-169 and provide alternative direction to staff. Declining to authorize the application for Cycle 2 PLHA grant funds will require the City to evaluate other funding sources and/or adjust the services supported by these funds.
Environmental Review/Analysis:
The proposed action is not a “project” pursuant to Section 15378 of the California Environmental Quality Act (CEQA) Guidelines because it involves organizational, administrative, and governmental planning activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment.
Fiscal Impact:
Approval would have a positive fiscal impact by providing $275,087 in PLHA grant funding, consisting of $132,693 for calendar year 2024 and $142,394 for calendar year 2025, to offset eligible costs associated with the City’s street outreach, engagement, and case management program. This funding would reduce reliance on other City resources while supporting continued service delivery. Up to 5 percent of each annual allocation may be used for eligible administrative costs associated with the program. This amount is included within the allocation and reduces the funding available for direct program services by the amount used for administration.
Allocations for 2026 through 2028 are estimated to range from $120,000 to $150,000 annually, resulting in potential total Cycle 2 funding of $635,087 to $725,087, including the 2024 and 2025 allocations and any administrative costs. All estimated figures are subject to change and may be proportionally updated to reflect annual funding allocation adjustments.
Potential Action(s):
recommendation
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-169, which would:
1. Authorize submission of the application and approve the proposed five-year plan for Cycle 2 PLHA grant funds;
2. Authorize the City Manager or their designee to execute the application and related forms;
3. Accept PLHA grant revenues totaling $275,087 into Revenue Account No. 027-000-33492; and
4. Authorize a related budget appropriation of $275,087 to Expenditure Account No. 027-821-43890.
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Attachment:
1. Proposed Resolution No. 26-169
Exhibit A - Proposed five-year plan (§302(c)(4) Plan)
Notification:
None.