July 11, 2023
Community Development
DATE: July 11, 2023
TO: Mayor Martinez and Members of the City Council
FROM: Lina Velasco, Director of Community Development
Kaitlyn Quackenbush, Housing Fellow
Subject:
Authorization of City’s Prohousing Designation
Application
FINANCIAL IMPACT: There is no cost to the general fund associated with the Prohousing Designation program application and the City is not required to provide funding for any project by
submitting the Prohousing Designation program
application. Obtaining a Prohousing Designation would
make Richmond-based projects eligible for bonus points
for certain State funding programs.
PREVIOUS COUNCIL
ACTION:
Click or tap here to enter text.
STATEMENT OF THE
ISSUE:
On July 1, 2021, the California Housing and Community
Development Department (HCD) released the
Prohousing Designation Program Application Package.
This newly created program was part of the 2019-20
Budget Act, AB 101, that distinguishes and rewards
jurisdictions who are compliant with Housing Element
Law and demonstrate accelerated housing production.
The Prohousing program began accepting over-the-
counter applications on July 1, 2021. City staff is seeking City Council authorization to submit to HCD an
application to obtain a Prohousing Designation for the
City.
AGENDA
REPORT
July 11, 2023
RECOMMENDED ACTION:
ADOPT a resolution authorizing City staff to submit an
application to participate in California’s Prohousing
Designation Program – Community Development
Department (Lina Velasco 510-620-6841).
DISCUSSION:
Background
On July 1, 2021, the California Housing and Community Development Department (HCD) released the Prohousing Designation Program Application Package. This newly created program was part of the 2019-20 Budget Act, AB 101, that distinguishes and rewards jurisdictions who are compliant with the Housing Element and demonstrate accelerated housing production. California’s lack of housing production for many decades has amplified the need to create more affordable housing opportunities for residents in Richmond and across the region and state. The Prohousing program began accepting over-the-counter applications on July 1, 2021.
Applications are accepted on a rolling basis and a deadline to submit has not been specified. HCD requires the City Council to authorize submittal of an application. This opportunity is one of many innovative programs that HCD has rolled out in recent years to address the State’s housing crisis.
In order to be considered for a Prohousing Designation, the applicant must accurately complete all sections of the application, including the Resolution for the Prohousing Designation Program.
Threshold requirements include having an adopted compliant Housing Element. On January 24, 2023, the City of Richmond City Council adopted the 6th Cycle Housing Element. As part of its action, the City Council authorized City staff to address any non- substantive changes requested by the State Department of Housing and Community Development (HCD) to achieve certification status. On March 9, 2023, HCD provided the City with its comments on the adopted 6th Cycle Housing Element. On May 31, 2023, the City published the Revised Adopted 6th Cycle Housing Element addressing HCD's comments and anticipates HCD’s final certification by August 2023. The City will not be able to submit its application until a certification letter for its 6th Cycle Housing Element is received from HCD.
Scoring/Eligibility
HCD has identified four scoring categories to evaluate jurisdictions under the Prohousing Designation:
1. Category 1: Favorable Zoning and Land Use: Addresses zoning and land use barriers
July 11, 2023
2. Category 2: Acceleration of Housing Production Timelines: Addressing local approval processes
3. Category 3: Reduction of Construction and Development Costs: Addressing building and development standards
4. Category 4: Providing Financial Subsidies: Addressing financing barriers
Bonus/Enhancement Points are awarded for additional policies that pair with any of the four categories above. To be eligible, jurisdictions must meet the minimum scoring threshold of thirty points and demonstrate Prohousing polices in each of the four categories, as detailed in Attachment 2. The evaluation criteria include both policies that have been enacted or proposed.
Richmond has adopted multiple policies and strategies that align with the State’s goal of accelerating housing production. The Richmond 6th Cycle (2023-2031) Housing Element and recently adopted Livable Corridors Form-Based Code (FBC) set the framework locally to achieve this by creating new housing in mixed-use developments connected to mass transportation.
Table 1: Richmond Preliminary Scoring Calculation
Category Points
1. Favorable Zoning & Land Use 12
2. Acceleration of Housing Production Timelines 15
3. Reduction of Construction & Development Costs 2
4. Providing Financial Subsidies 5
Subtotal 33
Bonus: Enhancement Factors 17
Total 49
Benefits of a Prohousing Designation
Given the limited funding availability for affordable housing in Contra Costa County, the City and its non-profit development partners rely heavily on other financing sources to support affordable housing. As the City implements the 6th Cycle Housing Element, which includes producing its Regional Housing Needs Allocation of 3,614 new housing units, the City would benefit immensely from the Prohousing Designation as it will provide priority in the following funding programs:
Affordable Housing Sustainable Communities
Transformative Climate Communities
Infill Infrastructure Grant Program
Transit and Intercity Rail Capital Program
Potentially other housing and non-housing sources of funds
July 11, 2023
Prohousing Designation Application Review
HCD will review applications for a Prohousing Designation and provide comments within 60 days of submission. Approvals will be published on an ongoing basis. As of February 3, 2023, HCD had provided the designation to the following 11 jurisdictions:
City of El Cerrito
City of Fontana
City of Los Angeles
City of Oakland
City of Roseville
City of Sacramento
City of San Diego
City of West Sacramento
County of Placer
County of Sacramento
ENVIRONMENTAL REVIEW: Authorization of submitting this application is not a project pursuant to the California Environmental Quality Act (CEQA). Any project constructed/awarded funds because of the Prohousing Designation will be evaluated under CEQA, as applicable.
CONCLUSION: City staff recommends that the City Council adopt the Resolution (Attachment 1) authorizing City staff to submit the City of Richmond’s application to participate in California’s Prohousing Designation Program.
DOCUMENTS ATTACHED:
Attachment 1 – Draft Resolution
Attachment 2 – Draft City of Richmond Prohousing Designation Application