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CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: AUGUST 25, 2026
FROM: PLANNING AND BUILDING DEPARTMENT
HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: AUTHORIZE THE APPLICATION TO AND PARTICIPATION IN
THE PROHOUSING DESIGNATION PROGRAM THROUGH
THE CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Resolution (Attachment 1):
1) Authorize the Planning and Building Director, or her designee, to submit an application (Attachment 2) to the California Department of Housing and Community Development (HCD) for participation in the State Prohousing Designation Program (PDP) and provide clarifying supporting documents and information on existing policies and programs as may be requested by HCD; and, 2) Determine that this action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5) (Organizational or Administrative Activities of Government) of the CEQA Guidelines.
DISCUSSION:
This item was originally scheduled for City Council consideration on June 9, 2026 and June 23, 2026. However, at staff's request, this item was removed from the agendas to ensure additional time for public review prior to City Council consideration of the item.
Prohousing Designation Program
This is a City-initiated request to apply for Prohousing Designation through HCD. The 2019-2020 California State Budget Act established the PDP, administered by HCD, to support the State’s housing goals by incentivizing jurisdictions that implement policies and programs that accelerate housing production. Jurisdictions designated as “Prohousing” may receive additional points or other funding advantages when applying for certain HCD-administered grant programs for affordable housing and related infrastructure improvements. Through the PDP, HCD recognizes jurisdictions that demonstrate a commitment to increasing housing supply, affordability, and accessibility.
To be eligible for a Prohousing Designation, cities must have a certified Housing Element, be current on submission of the Annual Progress Report, and be in compliance Prohousing Designation Program Application
August 25, 2026
with all applicable State housing laws. In addition, cities are required to submit a complete Program application for HCD’s review, which must be accompanied by the governing body’s formal Resolution that authorizes submission of said application. Once submitted, each application is reviewed based on a total of 63 scoring categories, which are divided into one of the following four main topic areas: 1) favorable zoning and land use; 2) acceleration of housing production timeframes; 3) reduction of construction and development costs; and 4) provision of financial subsidies. Jurisdictions must achieve a minimum score of 30 points based on qualifying housing policies and programs to obtain the Prohousing Designation.
As of March 26, 2026, 74 jurisdictions have obtained Prohousing Designation, consisting of 62 cities and 12 counties. Among these jurisdictions are two Orange County cities: Brea and Santa Ana. In addition, City of Placentia has a pending application with HCD, and City of Irvine intends to submit its application to HCD in near future.
Additional details of the PDP can be found here: https://www.hcd.ca.gov/planning-and- research/prohousing
Application
The City of Anaheim was awarded consulting services through the Subregional Partnership Program 2.0 (SRP 2.0), a collaborative initiative between the Orange County Council of Governments (OCCOG) and the Southern California Association of Governments (SCAG), to support preparation of this PDP application, including necessary coordination with OCCOG and SCAG throughout the process. The draft application package is provided as Attachment 2 and 2a through 2k to this report, and as required by the PDP guidelines, the draft application package has been published for public review on the City’s website (https://www.anaheim.net/6797/California-Pro-Housing-Designation) and distributed to interested parties via email on May 12, 2026. The PDP guidelines also require the City Council to adopt a resolution authorizing submittal of the application and confirming the City’s compliance with the PDP requirements.
Based on the “self-score” analysis, Staff has projected that Anaheim’s existing Housing Element policies, implementation programs, and affordable housing financing tools provide 61 points, which is more than sufficient to meet the threshold required for designation. The City is not considering new or amended policies as part of this application process. Furthermore, participation in the PDP does not impose requirements on the City or otherwise restrict local authority beyond current provisions of State Law.
The Prohousing Designation would strengthen the City’s competitiveness for State funding opportunities that support affordable housing production, infrastructure improvements, and infill housing development near existing infrastructure, services, transit, and employment centers.
Jurisdictions with a Prohousing Designation are eligible to apply for funding through the Prohousing Incentive Program (PIP), a complementary State grant program administered by HCD that provides financial assistance to local governments to support housing-related infrastructure, planning activities, and programs that accelerate housing production. Jurisdictions with a Prohousing Designation also receive a competitive advantage when applying for several other State affordable housing and infrastructure grant programs, including the Affordable Housing and Sustainable Communities (AHSC) Program, Infill Infrastructure Grant (IIG) Program, Transformative Climate Communities (TCC) Program, Solutions for Congested Prohousing Designation Program Application
August 25, 2026
Corridors Program, Local Partnership Program, and Transit and Intercity Rail Capital Program (TIRCP).
Following submittal of the application, HCD has 60 days to issue preliminary findings. The City will then have 15 days to respond to any comments or requests for clarifying supporting documents and information, after which HCD has an additional 60 days to issue a final determination. If granted, the Prohousing Designation remains valid for three years from the first day of the January that follows the date of designation. State law provides a process for HCD to revoke a jurisdiction’s designation if it fails to complete programs and actions included in its application or otherwise fails to implement applicable State laws during its designation period.
Upon revocation or expiration of the Prohousing designation, a jurisdiction would no longer be eligible for the bonus points, priority processing, and certain funding set-asides given to Prohousing communities in certain competitive grant programs. State law does not identify any requirement for a jurisdiction to return grant funds awarded and received while the designation was active. A jurisdiction whose Prohousing Designation has been revoked may apply for a new designation after addressing the deficiencies identified by HCD in its final revocation determination. In addition, a jurisdiction with an active Prohousing Designation may apply for a renewal designation within six months prior to the expiration of its current designation.
Community Outreach and Correspondence
A project webpage was maintained on the City’s website with information regarding the PDP, including links to application materials and supporting documents. Notification emails containing a link to the project webpage were distributed to individuals subscribed to the Housing Element and Environmental Justice Element project notification lists. The required 30- day public review period commenced on May 12, 2026, and concluded on June 11, 2026.
Although the formal public review period ended on June 11, the City continued to accept public comments thereafter. All public correspondence received by Planning staff through the preparation of this report is included as Attachment 3. Attachment 3 also includes links to the public comments received by the City Clerk’s Office for the June 9 and June 23, 2026 City Council meetings.
Conclusion
Staff recommends that the City Council authorize submittal of the PDP application. Because the City already has qualifying housing policies and programs in place, applying for the Prohousing Designation presents an opportunity to leverage existing efforts to increase competitiveness in securing additional funding and resources that would benefit the community.
IMPACT ON BUDGET:
There is no fiscal impact associated with the PDP application. Consultant costs associated with its preparation are covered by the SRP 2.0 grant.
Notwithstanding above, obtaining the Prohousing Designation would have future funding implication related to the Homeless Housing, Assistance, and Prevention Program (HHAP) funding eligibility. Since the program’s inception in 2019, HHAP has been Anaheim's largest ongoing flexible state homelessness funding source, supporting shelter operations, outreach, housing navigation, prevention, rapid rehousing, permanent housing activities, and system coordination. Over the past six years, Anaheim has received approximately $37.7 million in Prohousing Designation Program Application
August 25, 2026
HHAP funding, including approximately $5.9 million under the most recent round of funding (Round 6).
Under the revised HHAP funding guidelines, the 14 largest cities, which includes Anaheim, and the 11 counties they are located in, must have obtained, or will obtain within 12 months of first half disbursement, the Prohousing Designation to remain eligible for future funding. For fiscal year 2026-27, the legislature appropriated additional $900 million as a supplemental disbursement of Round 6 HHAP funding; however, as previously noted, eligibility for future HHAP funding for Anaheim would be contingent upon satisfying the Prohousing Designation requirement. Accordingly, if the City does not pursue or obtain the Prohousing Designation, the City would be ineligible for HHAP Round 7 funding, currently allocated at $6.7 million, thereby reducing the amount of state homelessness funding that would be available to the City.
Respectfully submitted, Respectfully submitted,
Heather Allen Grace Stepter
Director of Planning and Building Director of Housing and Community Development
Attachments:
1. Resolution
2. Prohousing Designation Application
2a. Attachment 1A and 4E to Appendix 3 of the Application (Appendix B to the Housing Element - Adequate Sites Analysis
2b. Attachment 2G to Appendix 3 of the Application (2026 Administrative & Regulatory Permit Filing Schedule)
2c. Attachment 4B to Appendix 3 of the Application (Ordinance No. 6588) 2d. Attachment 4C to Appendix 3 of the Application (Anaheim Local Housing Trust Fund Guidelines)
2e. Attachment 4K to Appendix 3 of the Application (April 18, 2023 City Council Staff Report - Item #22)
2f. Appendix 6 of the Application
2f-1 Appendix C of the Housing Element (Community Outreach and Engagement)
2f-2 Appendix A of the Environmental Justice Element (Community Outreach Report #1)
2g. Attachment A-1 to Appendix 7 of the Application (2023 Affordable Housing Development Overview)
2h. Attachment B-1 to Appendix 7 of the Application (June 22, 2021 City Council Staff Report - Item #9)
2i. Attachment C-1 to Appendix 7 of the Application (Resolution No. 2018-106) 2j. Attachment C-2 to Appendix 7 of the Application (Resolution No. 2007-040) 2k. Attachment D-1 to Appendix 7 of the Application (Resolution No. AHA-2021-003)
3. Public Correspondence