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Report regarding a Resolution authorizing application for, and receipt of, State Prohousing Incentive Program funds. (Pierce Abrahamson, Management Analyst II)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a Resolution authorizing application for, and receipt of, Prohousing Incentive Program funds from the State of California Housing and Community Development Department.
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BACKGROUND/DISCUSSION
In summer 2023, the City received a Prohousing designation from the State of California Housing and Community Development Department (HCD). This designation followed an application made by the City to HCD, demonstrating that it had sufficient policies and programs in place to merit the designation. The City pursued the designation because it results in priority points for various State grant applications that many of our affordable housing developers pursue, such as the Affordable Housing and Sustainable Communities (AHSC) Grant and the Infill Infrastructure Grant (IIG).
Another benefit of the Prohousing designation is that the City has access to a special allocation of State funding only available to Prohousing-designated jurisdictions. This program is called the Prohousing Incentive Program (PIP). To date, three complete PIP funding awards have been made available, and designated jurisdictions that have yet to receive a PIP award were prioritized for funding. The City received an $890,000 award during the PIP Round 2 Notice of Funding Availability (NOFA) in 2024 in the form of match funds to the City’s Affordable Housing Trust Fund.
Each Prohousing jurisdiction has a maximum formula award. Based on the City’s designation and Prohousing score, the City is eligible for a maximum award of $890,000 during Round 4, the current round with an application closing date of March 31, 2026. While designated jurisdictions who have yet to receive a PIP award will be prioritized for funding, the minimal staff time necessary to complete the simple PIP application combined with the sizeable potential award makes applying a worthwhile consideration. Within the draft PIP application, staff have summarized potential uses, in alignment with existing City goals, with the intent of returning to City Council, if awarded, before any funds are appropriated to specific eligible projects or programs. The purpose of this staff report and associated resolution is to authorize the application and the potential receipt of funds.
FISCAL IMPACT
There is no impact to the General Fund associated with adopting this resolution. Should the grant be awarded, it would likely be used to replace dollars that the City would otherwise spend from its Commercial Linkage Fee Fund (Fund 823). If awarded, staff would return to the City Council to accept and appropriate the funding.
CONCLUSION
Staff recommends that the City Council adopt a Resolution authorizing the application for, and receipt of, PIP funds from HCD.
Attachments:
1. SSF PIP Round 4 Draft Application