California’s housing crisis touches everyone, including people living in mobile homes, one of the state’s last affordable housing options. To help local governments support these communities, California created the Permanent Local Housing Allocation (PLHA) program under SB 2 (2017) as a major funding stream that gives cities and counties the resources they need to improve housing for their residents, including those in mobile home parks.
The grant is managed by the Department of Housing and Community Development. With an estimated $335 million available, it aims to provide eligible local governments with the resources they need for housing-related projects and programs that address unmet housing needs in their communities. Applications for this funding close on February 28, 2027, at 4 p.m.
In simple terms, it is a state program that gives local governments annual funds to boost affordable housing. In 2022 alone, nearly $466 million was available from new and leftover funds. These dollars can go towards many housing activities, including programs designed to help mobile home owners and keep their homes safe and affordable.
How PLHA Funding Helps Mobile Home Communities
Manufactured housing projects provide affordable homes for thousands of Californians. With PLHA funding, local governments have the opportunity to invest in these communities, keep residents safe, and preserve affordable housing options for the long term.
Here are the ways PLHA can support mobile home residents.
Rehabilitate Mobile Homes
Many older mobile homes need repairs to remain safe, comfortable, and liveable. Through PLHA, local governments can offer loans or grants to homeowners for critical improvements such as roofing replacements, plumbing repairs, electrical upgrades, or adding ramps and grab bars for accessibility. This type of support can reduce health and safety risks and extend the life of homes, even if they are located on rented lots or do not have permanent foundations.
PLHA funds can be used for the replacement of mobile home inventory if it falls under eligible activities such as the acquisition, rehabilitation, or preservation of affordable housing. Replacing older or substandard mobile homes with new units to maintain or increase the supply of safe, affordable housing aligns with the program’s purpose, as long as the activity complies with income targeting and other requirements outlined in the PLHA guidelines.
The funding can also be used for mobile homes if the project involves eligible activities like acquisition, rehabilitation, or preservation to provide affordable housing for low- or moderate-income households. Mobile homes are recognised as a form of affordable housing, so improvements or developments involving manufactured houses are allowed when they meet the program’s objectives and applicable regulations.
Finally, the PLHA funds can be used for mobile homes located in parks if the activity supports the development, preservation, or rehabilitation of affordable housing for income-qualified households. This includes projects within mobile home parks, provided they adhere to income limits, affordability requirements, and other PLHA program conditions.
ModWest offers comprehensive mobile home park services, supporting communities with development and management solutions tailored to affordable housing goals.
Preserve Affordability
Mobile-home parks remain one of California’s few affordable housing options, but residents often face the threat of rising costs or park closures. PLHA funds can help preserve affordability by financing park upgrades or repairs tied to affordability agreements, such as deed restrictions or covenants that keep rents stable. This ensures that low- and moderate-income households continue to have access to these homes without the fear of being displaced.
Support Homeownership Programs
Owning a mobile home can be an important step towards housing stability for families with limited incomes. PLHA allows local governments to create down-payment assistance programs or equity-sharing models to help residents purchase their homes. Funds can also be used to cover lot infrastructure improvements, such as better roads, drainage, or utility connections, enhancing the overall quality of life in mobile-home parks.
Improve Community Infrastructure
While PLHA is mainly focused on direct housing activities, it can be combined with other funding sources to improve community infrastructure within mobile-home parks. This can include upgrading water and sewer systems, installing safer electrical connections, or investing in energy efficiency measures. Such improvements protect the health and safety of residents, reduce future maintenance costs, and strengthen the community as a whole.
Requirements for Using PLHA for Mobile Homes
To successfully use PLHA funds for mobile home projects, local agencies need to meet several important requirements.
- Include Programs in the 5-Year PLHA Plan. Before funds can be spent, local governments must include mobile-home activities in their 5-year PLHA Plan. This plan should clearly outline the goals of each program, the amount of funding allocated, and how the programs will be implemented. For example, if a city wants to use PLHA for mobile-home rehabilitation, it must specify the number of units it aims to repair, the types of repairs covered, the eligibility criteria for homeowners, and how the program will operate year by year.
- Ensure Affordability Restrictions Are Met. Any project funded through PLHA must include measures to keep housing affordable for low- and moderate-income residents. For mobile-home activities, this could mean requiring deed covenants or affordability agreements that restrict rent increases, or setting repayment terms if loans are provided for home repairs. These requirements ensure that public funds create long-term benefits and prevent sudden cost increases that could displace residents.
- Submit Annual Reports by July 31. Local governments must submit an annual PLHA report by July 31 each year to remain in compliance with program rules. This report should detail the progress of funded activities, including how many mobile-home units were rehabilitated, how many households received down-payment assistance, or what infrastructure improvements were completed. Accurate reporting is critical for transparency and for maintaining eligibility for future PLHA funds.
- Keep Administrative Costs Within the 5% Cap. PLHA places a strict limit on administrative spending: no more than 5% of the total grant award can be used for program administration costs. This ensures that the majority of funds go directly to housing projects that benefit residents, rather than covering overhead or staff expenses. Local governments must plan carefully to operate within this cap while still managing programs effectively.
As you prepare your PLHA application, consider speaking with mobile home dealers, park owners, and housing experts who understand the unique advantages of mobile homes – their affordability, flexibility, and quick build times. Their insights can help shape practical programs that address real community needs, ensure compliance with state guidelines, and maximize the impact of your funding to keep mobile-home living a strong part of your local housing solutions.
Action Plan for Local Housing Agencies
If you are a city or county planner with a mobile housing project in mind, there are important steps you can take to make sure PLHA funding benefits your community effectively.
1. Review Existing PLHA Plans
Look closely at your jurisdiction’s current PLHA Plan to see if it includes programs specifically for mobile-home residents. Does it allocate funding for mobile-home rehabilitation, affordability preservation, or infrastructure improvements? If not, there is an opportunity to advocate for these critical uses in future updates.
2. Propose Practical Programs
Suggest creating rehabilitation loan or grant programs as a priority. Mobile homes often need targeted repairs to remain safe and livable, and these programs can directly address health and safety risks while extending the life of affordable units. Work with colleagues to outline clear goals, eligibility criteria, and implementation steps for these initiatives.
3. Consult Industry Experts
Talk to mobile-home developers, park owners, and housing specialists who know the unique advantages of mobile homes, such as their cost-effectiveness and rapid construction timelines. Their expertise can guide program design, ensuring funds are used efficiently and in line with technical standards and community needs.
4. Promote Transparency and Accountability
Advocate for clear and transparent reporting to track how PLHA funds are spent on mobile-home activities. Regular updates and public reports build community trust and ensure funding reaches the households that need it most.
Partnering for Affordable Mobile Home Projects
PLHA funding offers local agencies a chance to address housing needs in mobile home communities. These funds can upgrade living conditions, preserve affordability, and support residents who rely on mobile homes as their primary housing option.
ModWest is here to help turn your project goals into reality. The team brings deep expertise in mobile home development to help your projects become efficient and compliant with the funding.
Contact ModWest today to explore how we can support your next affordable mobile home initiative.