Placentia Cit Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: MARCH 21, 2023
AGENDA REPORT
SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING APPLICATION TO, AND
PARTICIPATION IN THE PROHOUSING DESIGNATION PROGRAM WITH THE
STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
(HCD); AND CONSIDERATION OF A RESOLUTION AUTHORIZING
APPLICATION FOR, AND RECEIPT OF PROHOUSING INCENTIVE PILOT
PROGRAM FUNDS
FISCAL
IMPACT: NO IMMEDIATE IMPACT, COULD RESULT IN RECEIPT OF $1,000,000 IN STATE
FUNDING
SUMMARY:
The City of Placentia is in the process of applying to the State to obtain a Prohousing designation.
Attached Resolutions will authorize application to and participation in the Prohousing Designation Program, and will make Placentia eligible to apply for the Prohousing Incentive Pilot Program grant funds in a total amount not to exceed $1,000,000.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution No. R-2023-15, a Resolution of the City Council of the City of Placentia, California, authorizing application to and participation in the Prohousing Designation Program; and
2. Adopt Resolution No. R-2023-16, a Resolution of the City Council of the City of Placentia, California, authorizing application for, and receipt of, Prohousing Incentive Pilot Program funds.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to achieve the following:
1.e.
March 21, 2023
City Council Agenda
March 21, 2023
Implementation of Housing Element Strategies, Objective Number 3.10. This agenda item will specifically create opportunities for the development of more housing in the city, including a mix of housing at various price points. Also, this item will serve to enhance affordable housing production efforts in general as it will create potential funding mechanisms and other incentives to attract and promote affordable housing in the community.
BACKGROUND:
The State has determined that increasing the availability of housing is critical to bettering the quality of life of all Californians. The 2019-2020 Budget Act provided a spectrum of support, incentives, and accountability measures to meet California's housing goals, and provided for the establishment of the Prohousing Designation Program. The intent of this State program is to encourage jurisdictions to enact regulations, adopt policies, and establish local programs that go beyond current state laws and conventional standards and will accelerate the production of housing, both market rate and affordable at all density levels.
In return for adopting such pro -housing regulations, policies, and programs, local governments can receive an official designation and receive an advantage such as priority processing or funding points when applying for various funding programs. Current eligible funding programs that prioritize those with Prohousing designation include Affordable Housing & Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG), and Transformative Climate Communities (TCC). However, the State is actively looking to add additional programs, particularly those that are only open to those with a Prohousing designation. A successful Prohousing designation could potentially lead to receipt of Prohousing Incentive Pilot Program funds in a total amount not to exceed $1,000,000.
DISCUSSION:
The City of Placentia is in the process of applying to the State to obtain a Prohousing designation.
This Program is only open to those jurisdictions that have a certified Housing Element, which is an ongoing effort. Staff is now working with Kimley-Horn consultants to address the latest comments regarding the adopted Housing Element from the State Department of Housing and Community Development (HCD). Staff anticipates achieving a State certified Housing Element no later than Summer 2023, or earlier.
The attached Resolution (attachment 1) is a required component of the application. Upon the City Council's approval of the Resolution, City staff will submit the entire Prohousing Designation Program application to HCD for review and approval. City Staff has been working with SCAG staff in crafting this application to HCD.
The second Resolution attached to this Staff Report (attachment 2) is authorizing application for, and receipt of, Prohousing Incentive Pilot (PIP) Program funds. Receipt of these funds is contingent upon receiving the Prohousing Designation from HCD. Adoption of this Resolution would make Placentia eligible to apply for the PIP grant funds in a total amount not to exceed $1,000,000. Said funds may be used for the development, acquisition, rehabilitation, and preservation of multifamily, residential live -work, rental housing that is affordable to low- and moderate -income households, including necessary operating subsidies. The funds could be
City Council Agenda
March 21, 2023
utilized to help finance an affordable housing development in Placentia, or for assisting those at risk of homelessness, including funding for navigation centers and emergency shelters, among other eligible expenses.
FISCAL IMPACT:
Approval of a Prohousing designation and access to the resulting PIP grant funds could result in Placentia receiving up to $1,000,000 in grant funds to generate affordable housing.
Prepared by:
ph M�ambert
ector of Development Services
Reviewed and approved:
Damien R. Arrula
City Administrator
Reviewed and approved:
Jennifer Lampman
Director of Finance
Attachments:
1. Resolution No. R-2023-15, a Resolution of the City Council of the City of Placentia, California, authorizing application to and participation in the Prohousing Designation Program
2. Resolution No. R-2023-16, a Resolution of the City Council of the City of Placentia, California, authorizing application for, and receipt of, Prohousing Incentive Pilot Program funds