TO:
VIA:
FROM:
DATE:
Placentia Cit Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
MAY 7, 2024
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).
FISCAL
IMPACT: NO IMMEDIATE FISCAL IMPACT; HOWEVER LIKELY POSITIVE FISCAL IMPACT FOR AFFORDABLE HOUSING DEVELOPMENT RELATED GRANTS.
PROHOUSING DESIGNATION QUALIFIES CITY TO APPLY FOR STATE
FUNDING IN AN AMOUNT TO BE DETERMINED ONCE THE STATE RELEASES INFORMATION IN AUGUST 2024.
SUMMARY:
The City of Placentia is in the process of applying to the State Department of Housing and Community Development (HCD) and the Southern California Association of Governments (SCAG) to obtain a Prohousing designation. The attached Resolution will authorize application to and participation in the Prohousing Designation Program and will make Placentia eligible to apply for the Prohousing Incentive Program grant funds. The amount of eligible funds has yet to be determined by the State. The last round of funding was 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-2024-25, a Resolution of the City Council of the City of Placentia, California, authorizing application to and participation in the Prohousing Designation Program.
1.g.
May 7, 2024
City Council Agenda
May 7, 2024
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to achieve the following:
Implementation of Housing Element Strategies, Objective Number 3.10. This agenda item will specifically create opportunities for the development of more housing within 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 within the community.
BACKGROUND:
The City of Placentia is in the process of applying to the State to obtain a Prohousing designation.
Staff submitted an application last year, however the Housing Element was not certified by the State, and thus, the City did not qualify. With the State certification of the City's 6th Cycle Housing Element in February 2024, the City is now eligible to apply for the Prohousing designation. Staff would like to pursue a Prohousing designation due to its potential to open up a multitude of funding opportunities for the City and will assist the City in fulfilling is regional housing needs assessment (RHNA) requirements.
The State has determined that increasing the availability of housing is critical to bettering the quality of life for 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 which 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 Program funds. The amount of those funds has yet to be determined by the State.
DISCUSSION:
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.
City Council Agenda
May 7, 2024
If the City application for a Prohousing designation is awarded by HCD, staff will be able to apply for Prohousing Incentive (PIP) Program funds once the application window opens in August 2024.
Receipt of the funds is contingent upon receiving the Prohousing Designation from HCD. The application for PIP will require Staff to return to Council for approval to apply. 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 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:
The approval of a Prohousing designation will qualify the City to apply for PIP grant funds, which can be utilized to generate affordable housing as well as increase scoring for the City and its developers on other HCD and housing grants. The available amount of the PIP grants has not been released by the State. The last round of PIP funds alone was up to $1,000,000 per jurisdiction and funds from the other grants vary by project.
Prepare • by' Reviewed and approved:
Lesley W 'ttaker
As c' Planner
Reviewed and approved:
Lti. __--
Jennifer L mp`man
Director of Finance
eph M. Lambert
Director of Development Services
Damien R. Arrula
City Administrator
Attachment:
Resolution No. R-2024-25, a Resolution of the City Council of the City of Placentia, California, authorizing application to and participation in the Prohousing Designation Program