Title
Report regarding a resolution authorizing the City’s re-application to and continued participation in the California Department of Housing and Community Development Prohousing Designation Program. (Pierce Abrahamson, Housing Programs Analyst and Stephanie Skangos, Senior Planner)
Recommendation
Staff recommends that the City Council adopt a resolution authorizing the re-application to and continued participation in the California Department of Housing and Community Development Prohousing Designation Program.
Body
BACKGROUND/DISCUSSION
On July 1, 2021, the California Department of Housing and Community Development (HCD) established the Prohousing Designation Program (PDP) pursuant to California Government Code §65589.9. The Program creates incentives for cities and counties that are compliant with Housing Element requirements and can demonstrate that they have enacted, or plan to enact, Prohousing policies in four category areas:
• Favorable Zoning and Land Use
• Accelerating Production Timeframes
• Reducing Construction and Development Costs
• Providing Financial Subsidies
The PDP seeks to acknowledge and support jurisdictions that go above-and-beyond state housing law to help accelerate housing production. A jurisdiction with a Prohousing designation may receive priority processing or funding points when applying for several critical housing and infrastructure funding programs, including Affordable Housing and Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG), Transformative Climate Communities (TCC), Solutions for Congested Corridors (SCCP), Local Partnership Program (LPP), Transit and Intercity Rail Capital Program (TIRCP), and Sustainable Transportation Planning Grant Program (STPG).
Jurisdictions that receive a Prohousing designation are able to apply to the Prohousing Incentive Program (PIP), designed to reward local governments with additional funding to accelerate affordable housing production and preservation.
In 2023, the City Council adopted a resolution to authorize the City to apply for HCD’s Prohousing Designation Program. Planning Division staff submitted an application, and the City was awarded the Prohousing designation. Since that time, South San Francisco has benefited from the designation, such as the award of an $890,000 PIP grant received in 2024, as match funds to the City’s Housing Trust Fund.
According to the PDP regulations, a jurisdiction’s designation is valid for three years from the first day of January following the date it was issued. South San Francisco was awarded the Prohousing designation in 2023; thus, it expires in January 2027. Staff is currently drafting the application and has determined that South San Francisco will continue to qualify for the minimum required points for eligibility, and has required programs and policies in all four categories, such as the City’s existing zoning regulations which permit high-density housing proximate to transit, technical assistance program for accessory dwelling unit (ADU) applications, planning processes such as streamlined CEQA analysis and objective design standards, and financial subsidies for affordable housing and anti-displacement programs.
In addition to the programs and policies that were in place in 2023, South San Francisco has adopted additional Prohousing policies and practices in the past three years that will contribute to the City’s continued designation, including anti-displacement policies such as the Single-Room Occupancy Conversion Ordinance and the Mobile Home Park Conversion Ordinance (both adopted in 2025), the financing of several housing projects affordable to lower-income households such as 500 Linden and 220 Linden, and Zoning Ordinance updates that implement Housing Element programs. A preliminary draft of the Prohousing Application is attached to this staff report.
Upon submission of the City’s application, HCD will complete a review of the application and will notify the City in writing within 60 days of its determination. If approved, the City will receive an official letter formalizing the re-issuance of the Prohousing Designation.
FISCAL IMPACT
Applying for the Prohousing Designation will have no fiscal impact on the City. If awarded the Prohousing Designation, the City would continue to receive a competitive advantage in certain State grant programs, which would help accelerate affordable housing production and infrastructure improvements in South San Francisco.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Authorizing an application to and continued participation in the Prohousing Designation Program directly supports the City Council major focus area of “Housing and Supportive Services”, as it increases the City’s chances of receiving state affordable housing and infrastructure grant funding, which will help the City continue to support a wide range of housing options and affordability levels and continue to improve multi-modal mobility options.
Attachment:
1. Draft Prohousing Designation Application
2. Staff Presentation
Associated File:
1. Prohousing Designation Resolution (Legistar File 26-2321)