DATE:
December 6, 2022
CATEGORY:
Consent
DEPT.:
Community Development
TITLE: Application for State’s Prohousing
Designation Program
RECOMMENDATION
Adopt a Resolution of the City Council of the City of Mountain View Authorizing Application to and Participation in the Prohousing Designation Program, to be read in title only, further reading waived (Attachment 1 to the Council report).
BACKGROUND
In 2019, A ssembly Bill (AB) 101 established the Prohousing Designation Program (Program) administered by the California Department of Housing and Community Development (HCD).
Cities may apply to receive the designation, which, if awarded, allows them to be more competitive for important State housing and infrastru cture funding. The Program itself is noncompetitive and requires jurisdictions to be compliant with housing laws, Housing Element requirements, and to have enacted or to have proposed enacting Prohousing local policies. At the March 8, 2022 Study Session for the Housing Element Update, Council direct ed staff to explore application for the Prohousing designation.
HCD is accepting applications on a rolling basis (with no deadline , currently) following the adoption of the Program’s Emergency Regulations on June 30, 2021 . Jurisdictions awarded a Prohousing Designation will receive a competitive advantage , such as priority processing or funding points for State affordable housing and infrastructure grant programs, including:
• Affordable Housing and Sustainable Communities Program
• Transformative Climate Communities
• Infill Infrastructure Grant
• Transit and Intercity Rail Capital Program
Application for State’s Prohousing Designation Program
December 6, 2022
Other programs may be added to the list after HCD engages with stakeholders and partner agencies on adding Prohousing points to other housing and nonhousin g program s. The permanent Program regulations are currently being finalized.
To receive the Prohousing designation, jurisdictions must earn a minimum of 30 points across four scoring categories. These policies include particular zoning codes, streamlined permitting and review timelines, fee reductions, and financial subsidies that incentivize housing development. The application must be accompanied by an authorizing resolution adopted by the City Council (Attachment 1). In addition, at the time of application or prior to designation, the City must have adopted a compliant Housing Element, submitted a legally sufficient Annual Progress Report, and must be in compliance with applicable State housing laws.
Based on Council direction, staff ha s been evaluating the Program requirements and putting together the application. This designation will help the City be more competitive for funding, which is very important given our extensive affordable housing pipeline, which will require much more funding than is projected to be available , as noted in the August 30 Affordable Housing Study Session.
ANALYSIS
The Prohousing Designation Program is designed to recognize jurisdictions that have enacted or proposed policies that accelerate housing development and are in alignment with broader State goals. It is a three-pronged application, and the requirements are summarized in Table 1 below.
The table also includes staff’s preliminary assessment that the City meets the requirements, subject to final evaluation and HCD review/comments.
Table 1: Summary of Application Requirements for Prohousing Designation Program
Requirements Criteria/Thresholds Preliminary Assessment
Compliance with State laws:
• Housing Element Law
• No Net Loss Law
• Housing Accountability
Act
• Density Bonus Law
• Housing Crisis Act
• Fair Housing
City must be in compliance
with all of these laws
The City is in compliance with
the specified State Laws
Application for State’s Prohousing Designation Program
December 6, 2022
Requirements Criteria/Thresholds Preliminary Assessment
Compliant Housing Element
and Annual Progress Reports
In Compliance and Annual
Progress Report submitted
for this year
The City is in compliance
with its current Housing
Element and is updating the
Housing Element for the next
cycle of 2023 through 2031.
Cities in the Bay Area will be
considered to be out of
compliance between
January 31, 2023 and until
compliant Housing Elements
are adopted. Planning staff
sent the second draft of the
Housing Element to HCD in
mid-November and will work
with HCD to ensure a speedy
review and adoption. The
Housing Element Update is
scheduled to go to Council
for review on December 13,
2022.
See discussion later in the
staff reports for next steps
related to the prohousing
application..
Application with points from
the following categories:
• Favorable Zoning and
Land Use
• Acceleration of housing
production time frames
• Reduction of
construction and
development cost
• Providing financial
subsidies
Minimum of 30 points
cumulatively achieved
through existing and
proposed local policies across
the four categories (must
have points in each
category).
The City meets the 30-point
threshold and has existing
and proposed policies in each
of the four categories. Final
score is subject to HCD
review upon submittal of
application.
Application for State’s Prohousing Designation Program
December 6, 2022
Regarding the four scoring categories in the third requirement listed above, applications are awarded points based on the jurisdiction’s existing and proposed policies that will increase housing production and proposed policies must be enacted within two years of submitting the application. Staff conducted an assessment of the City’s existing and proposed policies with reference to the Prohousing application. The City has been proactive in adopting many zoning, land use, and housing policies that exceed State law in increasing housing production. The City’s existing Prohousing policies include the following:
• 15% Below Market Rate inclusionary housing
• Higher-density bonus programs and no minimum parking requirements for North Bayshore and East Whisman Precise Plans
• Rezoning nonresidential zones to include residential and mixed-uses
• Streamlined permit processes with Zoning Administrator review and decision on applications
• Allocation of Commercial Impact Fee towards 100% affordable housing developments
In addition to these existing policies, the City has several proposed policies that are considered Prohousing and are included in the Draft 2023 -2031 Housing Element . Staff’s preliminary assessment is that the City’s existing policies meet the 30-point threshold requirement, and the proposed policies would exceed the application’s 30 -point threshold requirement (see Attachment 2).
As the Cit y continues to work on planned infrastructure and sustainability projects and with developers of projects in the affordable housing pipeline to leverage funding resources, the Prohousing Designation would assist in making the City more competitive for State funding.
Next steps include finalizing the City’s application upon adoption of the resolution. Staff will coordinate with HCD to determine optimal submittal t iming either before or after the City submits a Housing Element to HCD.
FISCAL IMPACT
Applying for and receiving the Prohousing Designation will have no fiscal impact on the City’s General Fund. Staff will continue to evaluate the affordable housing projects pipeline for eligibility to apply to the State’s affordable housing and infrastructure grant programs specified above and supplement existing funds. Receiving the Prohousing designation would make the City’s applications competitive through priority processing or receiving additional funding points.
Application for State’s Prohousing Designation Program
December 6, 2022
ALTERNATIVES
1. Do not adopt a resolution authorizing the City to apply for the Prohousing Designation Program.
2. Provide other direction to staff.
PUBLIC NOTICING
The meeting agenda and Council report have been posted on the City’s website and announced on Channel 26 cable television.
Prepared by:
Harsha Ramchandani
Housing Specialist I
Micaela Hellman-Tincher
Housing and Neighborhood Services
Manager
Wayne Chen
Assistant Community Development
Director
Approved by:
Aarti Shrivastava
Assistant City Manager/
Community Development Director
Audrey Seymour Ramberg
Assistant City Manager/
Chief Operating Officer
HR-MHT-WC/4/CAM
846-12-06-22CR
201755
Attachments: 1. Resolution Authorizing the Application to the Prohousing Designation Program
2. Prohousing Application Categories Criteria Applicable to City