Here is an aerial view of the Grand Gateway District with the district outlined. City Council recently accepted $763,253 in Permanent Local Housing Allocation state funding, with about $441,789.15 dedicated to housing assistance with low-income residents of a proposed 114-unit affordable housing project in the district. Photo courtesy of the City of West Sacramento.

WEST SACRAMENTO, CA (MPG) – The West Sacramento City Council approved a resolution at its Feb. 19 meeting that will provide additional funding for affordable housing efforts in West Sacramento.

By passing resolution 25-15, the council authorized staff to apply for state Permanent Local Housing Allocation (PLHA) Program funding that the city is eligible to receive and adopted the related affordable housing five-year plan. The city was notified in an October 2024 Notice of Funding Availability (NOFA) from the California department of Housing and Community Development that it was eligible to receive a total of $763,253 made available in current years 2021, 2022 and 2023.

The Building Homes and Jobs Act of 2017 created the Permanent Local Housing Allocation program to increase the affordable housing supply and provided a permanent source of revenue for funding through a $75 recording fee on real estate documents.

West Sacramento Economic Development and Housing Department Housing Manager Raul Huerta said that staff recommended using 55% ($419,789.15) of the funding to support the affordable housing component of the Grand Gateway Master Plan, specifically for obtaining housing in a 114-unit project proposed for the development.

“This would be available to households at or below 30% of area median income, 50%, 60% and perhaps 80% of median area income,” Huerta said.

The other activity proposed by staff was to provide 40% ($305,301.20} of Permanent Local Housing Allocation funding to assist affordable housing homeownership opportunities by providing grants up to $30,000 to qualified low-income owner-occupied residences. Huerta said these would be extended to existing contracts with nonprofit organizations providing home repairs to similar homeowners.

The final use of Permanent Local Housing Allocation funding was dedicating 5% for program administration. All three activities were included in resolution 25-15.

Huerta said that three written public comments were received and replied to on the proposal. The first commenter asked clarification on the five years that the funding covered while the third came from Legal Services of Northern California requesting more detail on some aspects of the affordable housing component of the five-year plan.

“The second comment staff received was from a resident who requested the city stop spending local money for low-income housing as the commenter believed this would create a magnet for low-income families and refugee camps,” Huerta said, a comment to which one council member could be heard saying “hmmm.”

Councilwoman Norma Alcala asked if the 5% administrative fee was normal. Huerta said it was, with some jurisdictions charging anywhere from 10 % to 20% while others were as low as 1%.

Legal Services of Northern California also questioned the 5% figure, asking it to be reduced and the difference spent on affordable housing. Huerta said given the amount of reporting requirements for the Permanent Local Housing Allocation program, staff felt 5% was needed.

Alcala also asked if the city maintained a wait list of residents applying for affordable housing. Huerta said the city doesn’t own or manage affordable housing but facility developers do keep lists.

“As they get applicants approved, they maintain that waiting list for each individual project,” he added.

In response to another Alcala question, Huerta estimated a typical affordable housing size for a family in West Sacramento would be a three-bedroom, two-bathroom house “north of $2,500” in monthly rent. Typical affordable rents, he added, should not be more than 30% of a family’s monthly income.

West Sacramento City Manager Aaron Laurel said families often struggle with a much higher percentage of their income going toward housing, even as high as 50%.

“That really stresses the importance of regulated, affordable housing to keep it at a truly affordable level,” Laurel added.

Resolution 25-15 passed the council 5-0.