Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: CONSIDERATION OF A RESOLUTION AUTHORIZING
APPLICATION TO AND PARTICIPATION IN THE
CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT PROHOUSING
DESIGNATION PROGRAM
Date: February 24, 2026
Written by: JP Harries, Senior Planner
Recommendation
It is recommended that the City Council adopt the accompanying resolution authorizing application to and participation in the California Department of Housing and Community Development Prohousing Designation Program.
Background
On July 1, 2021, the California Department of Housing and Community Development (HCD) established the Prohousing Designation Program pursuant to California Government Code §65589.9. The Program creates incentives for jurisdictions compliant with Housing Element requirements and that 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, and Providing Financial Subsidies.
The Prohousing Designation provides jurisdictions with incentives in the form of additional points and other preferences in several of the State’s competitive grant funding programs.
Jurisdictions awarded a Prohousing Designation receive a competitive advantage for critical affordable housing and infrastructure grant programs, including:
• Affordable Housing & Sustainable Communities (AHSC)
• Infill Infrastructure Grant (IIG)
• Transformative Climate Communities (TCC)
• Solutions for Congested Corridors
• Local Partnership Program
• Transit and Intercity Rail Capital Program (TIRCP)
• Sustainable Transportation Planning Grant Program (STPG) Local governments with Prohousing Designation are also eligible to apply for the Prohousing Incentive Program (PIP):
• Prohousing Incentive Program (PIP)
2023 Authorization
The attached Resolution, with its specific language, is a required application component. The Resolution is intended to supersede attached Resolution No. 2023-7. On February 14, 2023, the City Council adopted Resolution No. 2023-7 authorizing the Community Development Director to apply to and participate in the Prohousing Designation Program.
As discussed in more detail below, the application process for the Prohousing Designation includes a self-scoring worksheet that evaluates a jurisdiction’s adopted housing policies across four key categories. Following the City Council’s authorization in 2023, staff temporarily delayed submitting Cotati’s application, as the City Council had initiated several policy and process updates that would significantly improve the City’s score and strengthen its future grant competitiveness. At that time, the City was actively developing or planning several significant housing policy updates, including:
• Streamlining the review processes for multifamily developments; • Amendments to the Downtown Specific Plan;
• A major update to the Santero Way Specific Plan;
• Rezoning for Cotati Village;
• Revisions to the ADU ordinance;
• Adoption of a mobile home park zoning overlay;
• Implementation of objective design standards for single-family and multiplex housing; • Updated impact fees for compliance, including eliminating impact fees for inclusionary units in market rate multi-family developments;
• Streamlined permitting for historic planned unit developments (PUDs); and • Development of the Cotati Density Bonus provisions.
In addition, the City was awaiting certification of its 2023–2031 Housing Element update by HCD, which occurred on June 2, 2023. Certification of the Housing Element is a key prerequisite for receiving the Prohousing Designation.
In January 2024 HCD released updated Program regulations that effectively rendered City Council Resolution 2023-7 obsolete and may have made Cotati ineligible for the Prohousing Designation at the time because the planned upzoning around the SMART station had not been completed. The 2024 changes included a mandatory 30-day public review period of the draft application and a significant update to an important section of the Resolution. Specifically, Section 3 of the updated resolution (corresponding to Section 4 of the 2023 resolution) was amended as follows (strikeout indicates deleted text; underline indicates new or added text):
3. Applicant acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production. Examples of such local laws, policies, and actions include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regulations, development standards, or permit procedures. Applicant further acknowledges and confirms that it commits itself to affirmatively furthering fair housing pursuant to Government Code Section 8899.50. the Prohousing Policies in its Application comply with its duty to Affirmatively Further Fair Housing pursuant to Government Code Sections 8899.50 and 65583. Applicant further acknowledges and confirms that its general plan is in alignment with an adopted sustainable communities strategy pursuant to Public Resources Code sections 21155- 21155.4. Applicant further acknowledges and confirms that its policies for the treatment of homeless encampments on public property do comply and will continue to comply with the Constitution and that it has enacted best practices in its jurisdiction that are consistent with the United States Interagency Council on Homelessness’ “7 Principles for Addressing Encampments” (June 17, 2022, update).
Plan Bay Area 2050, developed and adopted by the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG), serves as the regional Sustainable Communities Strategy (SCS) for the nine-county San Francisco Bay Area, including Sonoma County.
While the SCS itself does not impose mandatory density requirements on individual jurisdictions, MTC/ABAG have advanced related policies - initially through Transit-Oriented Development (TOD) programs and more recently through the Transit-Oriented Communities (TOC) Policy - to encourage increased residential densities and reduced parking minimums in transit-rich areas. Specifically, for locations like the Cotati SMART train station (classified under commuter rail tiers), the TOC Policy calls for minimum average residential densities of at least 25 units per acre (with allowable maximums of 35+ units per acre) within a half-mile radius of qualifying stations, along with relaxed parking standards (e.g., eliminating or minimizing requirements in many cases).
Cotati’s adoption on January 13, 2026, of updated zoning for the Santero Way Specific Plan (SWSP) area and the Transit-Oriented Communities (TOC) zoning districts significantly increases the allowable residential density from 15 units per acre to 35 units per acre and eliminates parking minimums. These changes align Cotati strongly with the strategies outlined in Plan Bay Area 2050. By enabling higher-density, mixed-use, and transit-oriented housing near the Cotati SMART train station, these updates directly support the regional goals of promoting infill development, improving access to transit, and providing much-needed housing in a way that remains sensitive to local community context and character.
The City operates in accordance with the “7 Principles for Addressing Encampments” (attached), both directly and in our partnerships with County outreach teams and our local SAFE team. The summary will be included as Appendix 5 of the Prohousing Designation application.
Analysis/Discussion
Pursuing the Prohousing Designation will fulfill Program 3-6 (Prohousing Designation) of the Housing Element, which commits the City to apply for the Prohousing Designation. The PDP application is also consistent with Housing Element Policy H-3-4:
“Seek and utilize available County, State and Federal programs and other funding sources that provide housing opportunities for extremely low, very low, low, and moderate income and special needs households.”
Designation as a Prohousing jurisdiction would make the City more competitive in obtaining grant funding that could be used to produce, acquire, preserve, or rehabilitate affordable housing, in addition to the PIP funding that the City would be eligible for, upon designation.
Program Requirements
HCD’s review and consideration for designating jurisdictions as Prohousing include the following policies, concepts, and standards that direct HCD's review and consideration of a Jurisdiction for a Prohousing Designation:
A. The Jurisdiction’s actions to facilitate the planning, approval, or construction of a variety of housing types (e.g., increasing zoned capacity for supply, facilitating affordability for all income levels, removing regulatory barriers to development, and streamlining approval). Such action should be balanced by the Jurisdiction’s equal efforts to prevent displacement, preserve existing affordable housing, and establish tenant protections.
B. The Jurisdiction's accomplishment of integrated planning and development consistent with the state planning priorities set forth at Government Code section 65041.1 and/or the regional transportation plan adopted by the relevant transportation agency pursuant to Government Code sections 65080 and 65080.01. The Jurisdiction may accomplish this outcome through various actions, including, but not limited to, the facilitation of Location Efficient Communities that reduce auto dependence and VMT, and that are consistent with climate change priorities (e.g., climate change adaptation and hazard mitigation).
C. The Jurisdiction's meaningful actions to foster inclusive and equitable communities with adequate, affordable, and accessible housing and transportation infrastructure pursuant to Government Code section 8899.50.
D. The Jurisdiction's collaboration with public entities to align policies and programs, and with private entities to implement policies and to leverage funding and other resources.
E. The Jurisdiction's compliance with established housing law and recent housing reform statutes (e.g., the Housing Accountability Act, the Streamlined Ministerial Approval Process (California Senate Bill 35 (2017)), and the Housing Crisis Act of 2019 (Stats. 2019, ch. 654).
The application will ascribe points using four scoring categories. Applicants shall demonstrate (through an adopted Housing Element, current Zoning Ordinance, or locally adopted plans and policies) that they have enacted or proposed at least one policy that significantly contributes to the acceleration of housing production in each of the four categories. A Prohousing Designation requires a total score of 30 points or more across all four categories:
1. Favorable Zoning and Land Use (21 possible points). Examples include allowing duplexes, triplexes, and fourplexes by right in single-unit dwelling zones, going beyond the State Density Bonus Law, going beyond State law for Accessory Dwelling Units (ADUs), eliminating off-street parking requirements, and allowing residential land uses in non-residential zones.
2. Acceleration of Housing Production Timeframes (21 possible points). Examples include ministerial approval processes for a variety of housing types, streamlined environmental review processes, streamlined permitting processes, and reduced plan check times.
3. Reduction of Construction and Development Costs (12 possible points). Examples include deferred, reduced, or waived impact fees and pre-approved plans for ADUs and missing middle housing types.
4. Providing Financial Subsidies (20 possible points). Examples include participating with a local housing trust fund, offering surplus City-owned land for affordable housing development, and prioritization of local general funds for affordable housing.
Along with the four scoring categories are eight additional categories, enhancement factors (EF), which further bolster the program or policies that the jurisdiction is intending to implement.
Based Cotati’s existing housing policies identified in the attached Appendix 3; the City will earn 51 base points and 67 total points with enhancement factor points included. This puts the City well above the 30-point minimum threshold required for designation. The City’s final point total is subject to change after HCD’s review of the Application. If HCD determines that a local policy does not meet the Prohousing policy requirements, HCD may reject the policy and deduct the point(s) identified for that policy. However, with a buffer of 37 total points, the City is well positioned to earn the Prohousing Designation. This higher point total will also make the City more competitive for future PIP funding.
Application Process
The Prohousing Designation application is submitted to HCD for review after the City engages in a public participation process that includes outreach and availability of the draft document for public comment.
The Prohousing Designation application shall be posted for public review and consist of:
• Appendix 1: The formal resolution authorizing the City to apply for a Prohousing Designation
• Appendix 2: Proposed policy completion schedule (for programs not yet completed) • Appendix 3: Project proposal scoring sheet (and sample project proposal scoring sheet) • Appendix 4: Examples of prohousing policies with enhancement factors • Appendix 5: Homeless Encampment Template
• Appendix 6: Diligent Public Participation Checklist
• Appendix 7: Additional Information and Supporting Documentation Aside from Appendix 3, attached, and the Resolution (Appendix 1), if the City Council approves the application for Prohousing Designation, staff will complete and post the other appendices.
HCD has 60 days from the time the application is submitted to issue preliminary findings to the City. The City has 15 days to provide a written response to HCD. HCD then has 60 days to issue a final determination of the designation as a Prohousing jurisdiction.
Financial Considerations
There are no adverse financial impacts from pursuing a Prohousing designation. The Prohousing Designation Program will provide the City with advantages in certain grant funding programs, which may result in additional grant funding for affordable housing and infrastructure in the future. Technical support to prepare the application from the Napa Sonoma Collaborative is funded by a State grant and thus regional planning staff hours to prepare the application will not be charged to the City.
Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378. Additionally, adoption of this Resolution is exempt from the California Environmental Quality Act (CEQA) under the “common sense” exemption in CEQA Guidelines Section 15061(b)(3) as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.