Agenda Item No: K.2
AGENDA REPORT
DATE: September 15, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-186 HD Updating Prohousing Incentive Program (PIP) Allocation
Updating the Allocation of $200,000 in Prohousing Incentive Program (PIP) Funds to Accurately Reflect the Final Reimbursement Amounts from the Housing Authority Senior Manor Building Fund and General Fund
Funding Source: $200,000 ($72,167, Housing Authority Senior Manor Building Fund; and $127,833 in General Fund)
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
In March 2026, the City Council adopted Resolution 2026 -31 approving the reallocation of $200,000 in Prohousing Incentive Program (PIP) funds to reimburse eligible homeless services expenditures previously paid with City funds. The final reconciliation of those expenditures resulted in a different distribution between the Housing Authority Senior Manor Building Fun d and General Fund than reflected in Resolution 2026 -31. The proposed resolution updates the allocation to reflect the actual reimbursement amounts of $72,167.29 from the Housing Authority Senior Manor Building Fund and $127,832.71 from the General Fund. This action does not increase the $200,000 PIP allocation or authorize additional expenditures.
DISCUSSION
The City previously received $535,541 in Prohousing Incentive Program (PIP) funding from the California Department of Housing and Community Developme nt (HCD). Of the total PIP funding received, $200,000 was initially designated to support the City's Tenant-Based Rental Assistance (TBRA) Program.
Due to delays in implementing the TBRA Program, the City faced a potential loss of $200,000 in PIP funds if the funds could not be utilized within the required timeframe. To avoid forfeiting the funding, staff reviewed eligible expenditures that had already been incurred by the City for homeless services during the applicable period.
Staff identified eligible homeless services expenditures that had been paid using City funds and could be reimbursed with PIP funds. This approach allowed the City to utilize the PIP funding for an eligible purpose while replacing City funds that had already been expended on eligib le homeless services.
In March 2026, the City Council adopted Resolution 2026 -31 authorizing the reallocation of the $200,000 in PIP funds. Based on the information available at the time, the allocation was identified as $148,002 from the Housing Authority Senior Manor Building Fund and $51,998 from the General Fund.
As staff completed the reimbursement process and finalized the supporting documentation for HCD, the eligible expenditures were reconciled and the final amounts attributable to each funding source were determined to be:
Funding Source Amount
Housing Authority Senior Manor Building Fund $72,167.29 General Fund $127,832.71
Total $200,000.00
The final reconciliation resulted in a different distribution between the two funding sources than the amounts reflected in Resolution 2026 -31. The total PIP funding being allocated, however, remains unchanged at $200,000.
The proposed resolution will update the allocation authorized by Resolution 2026 -31 to reflect the final reimbursement amounts. Thi s will ensure that the City's financial records accurately correspond with the final PIP reimbursement documentation submitted to HCD.
This action does not request or authorize additional PIP funds, increase the City's overall PIP allocation, or authorize new expenditures. The proposed resolution is limited to updating the funding sources associated with the previously approved $200,000 allocation.
FINANCIAL IMPACT
There is no additional financial impact associated with this action.
The proposed resolution updates the allocation of the previously approved $200,000 in PIP funds based on the final reconciliation of eligible expenditures. The PIP funds will replace $72,167.29 in expenditures from the Housing Authority Senior Manor Buildi ng Fund and $127,832.71 in expenditures from the General Fund.
The action does not require an additional General Fund appropriation or increase the amount of PIP funding available to the City.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
No public contact or advisory body recommendation is required for this action.
ALTERNATIVE ACTION
The City Council may choose not to approve this resolution ; doing so, the City w ould not be properly reflecting the record and the final amounts for reimbursement would not be properly reflected.
COORDINATED WITH
Finance Department
STAFF CONTACT
LaTanya Terrones, Interim Housing Services Director
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment: Proposed Resolution
Attachment: City Council Resolution 2026-31