Report to City Council
ID: 26-0098 Page 1
TO: Mayor and City Council
FROM: Felicia London, Chief Financial Officer/City Treasurer
AGENDA DATE: March 17, 2026
TITLE: AUTHORIZE THE SUBMITTAL OF AN APPLICATION
TO THE PROHOUSING INCENTIVE PILOT ROUND 4
(PIP) PROGRAM, ADOPT RESOLUTION 2026-XX, AND
OTHER RELATED DOCUMENTS (REPORT OF :
FINANCIAL & MANAGEMENT SERVICES
DEPARTMENT) (ALL DISTRICTS)
TITLE SUMMARY: Authorize Submittal of PIP Application & Adopt Resolution 2026-XX
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Authorize the City Manager, or his or her designee, to submit an application to the California Department of Housing and Community Development (HCD) in response to HCD’s Prohousing Incentive Program (PIP) Notice of Funding Availability Round 4 (NOFA);
2. Adopt Resolution No. 2026 -XX to Authorize the City Manager, or hi s or her designee, to prepare, execute , and submit an application and other related documents for the purpose of managing the Prohousing Incentive Program;
3. Authorize the City Manager, or his or her designee, to execute applications and other related documents for the purpose of managing the Prohousing Incentive Program; and
ID: 26-0098 Page 2
4. Authorize the Chief Financial Officer, or their designee, to make any necessary budget adjustments as set forth in the Fiscal Impact section of this report upon successful award of said grant.
SUMMARY
This report recommends that the Council authorize the City Manager, or his designee, to submit an application to the California Department of Housing and Community Development (HCD) in response to HCD’s Prohousing Incentive Program Round 4 (PIP) Notice of Funding Availability (NOFA), and to execute applications, and other related documents for the purpose of managing the Prohousing Incentive Program and authorize Resolution No. 2026-XX.
DISCUSSION
The City of Moreno Valley (City) continues to take on the challenge of providing and expanding an adequate supply of affordable housing opportunities that will benefit our community through partnerships with developers and Community Housing Development Organizations (CHDOs).
On June 15, 2021, the City adopted its 6th Cycle (2021-2029) Housing Element (HE) that includes implementation of programs to further incentivize and support housing production at all income levels in order to meet the City’s Regional Housing Needs Allocation (“RHNA”) of 13,595 units by 2029 (Resolution No. 2021 -47). On October 11, 2022, the California Department of Housing and Community Development (HCD) determined the City’s HE to be in full compliance.
In July 2021, HCD establishe d its Prohousing Designation Program (PDP), an initiative rewarding local governments for exceeding housing law requirements, streamlining development, reducing costs, and promoting affordability through zoning and policy changes, granting them priority processing, extra points in state funding applications, and access to exclusive grants via the Prohousing Incentive Program (PIP) to accelerate housing production. Thereafter, the City submitted the PDP application and was awarded the designation on June 16, 2023, with a total of thirty-seven (37) points.
In March 2024, City staff applied for $1.12 million in Prohousing Incentive Pilot Round 3 grant funds through HCD’s first grant program designed to incentivize local governments to pursue Prohousing Design ations, rewarding those with the Prohousing Designation with additional funding to accelerate affordable housing production and preservation. The City was subsequently awarded $1.12 million from HCD and was notified of the award in September 2025.
HCD released the NOFA for the PIP Round 4 on September 30, 2025, with an estimated $8 million available in funding for jurisdictions with a Prohousing Designation. Based on the funding allocation calculations, the City can seek up to $1.12 million in funding for Round 4. The PIP applications are due March 31, 2026, and require City Council authorization. If granted Council authorization, City staff will submit an application for PIP
ID: 26-0098 Page 3
Round 4 funding for $1.12 million. PIP funding can be directed towards a variety of City planning or implementation activities related to housing and community development. The intent of the Round 4 funds, if awarded, would fall under the Eligible Use Category I as outlined in the following paragraph. While HCD’s PIP guidelines remain unchanged from Round 3 in that it still prioritizes applicants in geographic areas who have not received prior PIP funds, staff recommends the City apply for Round 4 PIP funds, given the City’s need for funding to support the development of affordable hous ing. HCD requires that a City Council resolution be included with the City’s application package.
In addition, applicants must also meet all the following threshold requirements for participation:
1. An adopted housing element in substantial compliance, as determined by the Department, pursuant to Housing Element Law (Article 10.6 of Gov. Code) in accordance with Government Code section 65585, subdivision (h).
2. Housing Element Annual Progress Report submittal pursuant to Government Code Section 65400 for the current or prior year, as applicable.
3. Prohousing Designation: A Prohousing Designation (per the regulations codified in the California Code of Regulations Title 25, Division 1, Chapter 6, Subchapter
6.6, Sections 6600 through 6608), as determined by HCD , must be achieved by the PIP application due date.
4. A complete application as determined by the HCD.
5. An adopted resolution authorizing submittal of the application to the PIP that materially comports with the PIP’s requirements and is legally sufficient as determined at HCD’s reasonable discretion, including an authorized representative.
6. Compliance with state and federal housing laws as determined by the sole discretion of HCD.
7. Demonstration of meeting threshold criteria shall be determined by HCD in its sole and absolute discretion. No documentation of meeting threshold requirements is required in the application unless requested by HCD. At the sole discretion of HCD, failure to maintain a Prohousing Designation, housing element compliance, compliance with state and federal housing laws, or other threshold requirements may result in revocation of the award or delay in disbursement until the issue is resolved to the satisfaction of HCD.
Eligible Applicants must use award funds towards any planning or imp lementation activities related to housing and community development, and must be within one of the Eligible Use Categories outlined in the PIP application:
I. The predevelopment, development, acquisition, rehabilitation, and preservation of
ID: 26-0098 Page 4
multifamily, residential live-work, rental housing that is affordable to extremely low, very low-, low-, and moderate-income households, including necessary operating subsidies.
II. Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of the area median income, or 150 percent of III. area median income in high-cost areas.
IV. Matching portions of funds placed into local or regional housing trust funds.
V. Matching portions of funds available through the Low - and Moderate -Income Housing Asset Fund pursuant to Health and Safety Code section 34176(d).
VI. Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014.
VII. Assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and prese rvation of permanent and transitional housing.
VIII. Accessibility modifications.
IX. Efforts to acquire and rehabilitate foreclosed or vacant homes.
X. Homeownership opportunities, including, but not limited to, down payment assistance.
XI. Fiscal incentives or matching funds to local agencies that approve new housing for extremely low, very low, low-, and moderate-income households.
PIP eligible applicants will receive a base award amount based on population estimates as of January 1, 2025, maximum total award amounts will be no greater than $2,000,000 per eligible applicant. Total potential award amounts are determined by adding an eligible applicant’s base award amount with an Eligible Applicant’s bonus award amount.
Applicants may receive a bonus award of up to $500,000. The bonus amount will be calculated by multiplying an eligible applicant’s Prohousing Designation score by $10,000. Based on the City’s current score, provided by HCD, the estimated bonus award is $370,000.
Based on its population, the City’ s base allocation is $750,000, bringing the total estimated award to $1,120,000. The City may use up to five percent of its total allocation for program administration costs.
ALTERNATIVES
ID: 26-0098 Page 5
1. Approve and authorize the recommended actions as presented in this staff report.
Staff recommends this alternative because it will allow the City to apply for Prohousing Incentive Program funds and use them to continue to serve residents through qualified programs.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative because it would hinder the City’s ability to apply for the Prohousing Incentive Program funds and use them to continue to serve residents through qualified programs.
FISCAL IMPACT
Should the City be awarded PIP Round 4, funding will be available in Fund 2300 - Other Grants. There is no impact to the General Fund.
Description Fund GL Account No. Type
(Rev/Exp)
FY 25/26
Budget
Proposed
Adjustments
FY 25/26
Amended Budget
Grant Award Other
Grants
2300-30-92-7xxxx-4xxxxx Rev $0 $1,120,000 $1,120,000
Grant Award Other
Grants
2300-30-92-7xxxx-6xxxxx Exp $0 $1,120,000 $1,120,000
NOTIFICATION
Publication of the City Council Agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Joe Barron Felicia London
Grants Division Manager Chief Financial Officer / City Treasurer
CITY COUNCIL GOALS
Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
Objective 5.4: Actively and aggressively address homelessness in Moreno Valley.
ID: 26-0098 Page 6
ID: 26-0098 Page 7
Report Approval Details
Document Title: STAFFREPORT_FMS_GSD_PIPAPPLICATION SUBMITTAL AND RESO_03.17.2026.docx
Attachments: - 2) City Resolution CC 03.17.26 (Final).docx - 3) PIP4 - APPLICATION (3.2.26).pdf
Final Approval
Date:
Mar 9, 2026
This report and all of its attachments were approved and signed as outlined below:
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez