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Report regarding a Resolution authorizing application for, and receipt of, State Prohousing Incentive Program funds. (Nell Selander, Economic & Community Development Director)
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RECOMMENDATION
Recommendation
Staff recommends 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 (HCD).
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BACKGROUND/DISCUSSION
In summer 2023, the City received a Prohousing designation from 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, just two rounds of PIP funding have been made available and the City is eligible for this year's Notice of Funding Availability (NOFA), which includes $9.5 million in funding. 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. Designated jurisdictions with an eligible application that do not receive an award in this NOFA round are put at the top of the priority list in the next NOFA round, so the City's likelihood of getting an award increases over time.
Proposed Project
Staff submitted the attached PIP application on March 15, 2024, proposing to use the prospective $890,000 award to acquire a single room occupancy (SRO) building within the next two years. T...
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