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November 4, 2025
ITEM TITLE
Grant Application: Authorize Application For, and Receipt of, a State of California Prohousing Incentive Program Funds Grant
Report Number: 25-0258
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines . T herefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution authorizing application for and receipt of Prohousing Incentive Program Funds.
SUMMARY
The proposed resolution would authorize the City of Chula Vista (“City”) to apply for up to $1, 120,000 in grant funding from the California Department of Housing and Community Development (“HCD”). HCD recently awarded the City a “ Prohousing” designation, which , among other benefits, allows the City to compete in its Prohousing Incentive Program (“PIP”) for potential grant funds. If awarded, the City intends to use the funds for activities to house unsheltered individuals and families.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the activity consists of a reporting action, is not for a site-specific project, and will not result in a direct or indirect physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
HCD awards funds to cities that have received a Prohousing designation through the Prohousing Incentive Pilot (PIP) Program. The Prohousing designation is awarded to cities that have programs and policies that facilitate and encourage hou sing production. On May 21, 2024 via Resolution No. 2024 -103, City Council authorized the submittal of an application to the Prohousing Designation Program. HCD recently informed staff that the City was awarded the Prohousing designation and the City is eligible to apply for the PIP application round ending March 31, 2026.
If the City’s application is successful, up to $1,120,000 in funding would be awarded. While PIP funds have a variety of eligible activities, staff is proposing to allocate any awarded funds towards assistance to persons who are experiencing or at risk of homelessness (category No. 6 in the PIP application). This could include a range of activities, including rapid rehousing support, rental assistance, operating support for emergency shelters such as the Village at Otay transitional housing shelter, and the new construction, rehabilitation, and preservation of permanent and transitional housing . This category aligns most with budget priorities identified by the Housing and Homeless Services Department, while still retaining flexibility to commit funds to a range of programs.
If awarded, staff would return to Council with an appropriation request for specific programs or projects.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of this resolution will allow for the City to apply for and accept Prohousing grant funds, if awarded up to $1,120,000. The potential award may occur during fiscal year 2025 -26 or fiscal year 2026 -27. If awarded, staff would return to Council with an appropriation request for specific programs or projects. There is no fiscal impact to the General Fund as a result of applying for and accepting this grant as funding for this project will come from HCD and is restricted to specific uses related to planning and implementation of housing-related activities.
ONGOING FISCAL IMPACT
The award of Prohousing grant funds may occur during fiscal year 2026-27, if it does, it will result in no net fiscal impact as any expenditures for eligible activities would be offset with Grant funds. There is no fiscal impact to the General Fund. If awarded, staff would return to Council with an appropriation request for specific programs or projects.
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ATTACHMENTS
None.
Staff Contact: Chris Stanley, Senior Planner
Stacey Kurz, Director of Housing & Homeless Services