Agenda Item No: N.9
AGENDA REPORT
DATE: March 17, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-42 HD Prohousing Incentive Program (PIP) Application
Authorizing the City Manager to Submit an Application to the California Housing and Community Development Department for Prohousing Incentive Program Funds
Funding Source: N/A
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The City has been approved for the ProHousing Program by the State of California. The City has exhausted its current P rohousing Incentive Program (PIP) funds and will be submitting an application for additional funds.
DISCUSSION
California Housing and Community Development Department (HCD) administers the Prohousing Designation Program. The Program creates incentives for jurisdictions that comply with Housing Element requirements and have enacted Prohousing policies. The incentives include additional points or other preferences in scoring applications for competitive housing and infrastructure program grants. Each state program administrator determines the preference values awarded to applicants.
The City of Fairfield is an approved ProHousing Designation juris diction. As such, the state aims to assist Fairfield and other similarly designated jurisdictions in creating affordable housing initiatives to benefit extremely low to moderate-income households. Based on Fairfield’s Housing Needs analysis, the City must build additional affordable housing to meet housing needs.
Currently, the state designates much of Fairfield as a low -resource area, making it hard for affordable housing developers to succeed in state funding competitions. The Prohousing
Designation help s level the playing field. Fairfield projects receive additional points and incentives in affordable housing financing applications.
Additionally, each year, the state issues a Notice of Funding Availability (NOFA) for grant funds for Prohousing Designation jurisdictions. The City of Fairfield last applied in March 2024 and was awarded $774,253 in PIP funds during that application period. The expenditure deadline is March 31, 2026. The City will have expended all the available funds from the previous approval cycle by the deadline.
Staff seeks Council authorization to submit a new application for the next cycle of PIP funds to support ongoing affordable housing efforts.
FINANCIAL IMPACT
Completing this application has no fiscal impact. However, if awarded PIP funds, the Housing Services Department will be required to utilize PIP funds to support affordable housing projects on behalf of the City of Fairfield.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The City Council may choose not to approve the resolution and not apply for additional PIP funds from the state.
COORDINATED WITH
N/A
STAFF CONTACT
LaTanya Terrones, Sr. Project Manager
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: PIP Application