City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01311 7/29/2025
Authorization to Re-Apply to and Participate in the State of California’s Prohousing Designation Program
File ID: 2025-01311
Location: Citywide
Recommendation: Adopt a Resolution authorizing the Interim City Manager or designee to: 1) submit a Prohousing Designation Program application to the California Department of Housing and Community Development (HCD); and if the application is approved by HCD, 2) execute all documents deemed necessary or appropriate to participate in the Prohousing Designation Program.
Contact: Angel Anguiano, Associate Planner, (916) 808-5519, [email protected]; Greta Soos, Senior Planner, AICP, (916) 808-2027, [email protected]; Community Development Department
Presenter: Angel Anguiano, Associate Planner, (916) 808-5519, [email protected], Community Development Department
Attachments:
1-Description/Analysis
2-Background
3-Resolution
Description/Analysis
Issue Detail: In 2019, AB 101 established the Prohousing Designation Program (PDP) administered by the California Department of Housing and Community Development (HCD). The PDP creates incentives for jurisdictions that are compliant with housing laws, housing element requirements, and have enacted Prohousing local policies that go beyond existing state housing law requirements to help accelerate housing production.
The City of Sacramento became the first City in the State to become a Prohousing Designated jurisdiction on February 10, 2022. The City’s designation expires on January 1, 2026. Therefore, city staff is seeking authorization to reapply for the Prohousing designation, ensuring that the City maintains its competitive advantage for critical grant funding and sends a strong signal to the housing development community statewide that the City of Sacramento is committed to accelerating housing
File ID: 2025-01311 7/29/2025
production.
Jurisdictions awarded a Prohousing Designation receive a competitive advantage for critical affordable housing and infrastructure grant programs, including, Affordable Housing and Sustainable Communities (AHSC), Transformative Climate Communities (TCC), Infill Incentive Grant Program (IIG), Solutions for Congested Corridors Local Partnership Program, Transit and Intercity Rail Capital Program (TIRCP), and the Sustainable Transportation Planning Grant Program (STPG). Prohousing Designated jurisdictions are also eligible to apply for the Prohousing Incentive Program (PIP).
The City previously applied for the PDP under the PDP Emergency Regulations. On January 2, 2024, HCD released Permanent Regulations (see permanent regulations here:
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/prohousing-regulations-oal- approval.pdf), which added additional requirements including a formal and diligent public participation process and a new “homeless encampment template” requiring a description of procedures and practices around managing homeless encampments in line with the US Interagency Council on Homeless “7 Principles for Addressing Encampments”.
An overview of the Prohousing Designation Application requirements is provided in Attachment 2- Background.
Staff is inviting public participation on the Draft Application via the City’s Prohousing Designation Webpage: https://www.cityofsacramento.gov/community-development/planning/housing/Prohousing.
City staff is accepting public comments through August 15, 2025.
Policy Considerations: The Prohousing Designation Program is consistent with the City’s goals, policies and programs established in the 2040 General Plan and the 2021-2029 Housing Element, including:
2040 General Plan
· Goal LUP-1 A compact urban footprint and sustainable development pattern with infrastructure that supports efficient delivery of public services while protecting surrounding open space lands.
o LUP-1.1 Compact Urban Footprint. The City shall promote a land- and resource- efficient development pattern and the placement of infrastructure to support efficient delivery of public services and conserve open space, reduce vehicle miles traveled, and improve air quality.
o LUP-1.9 Advocacy. The City shall advocate for a fair share of regional funding, grants, and public investments commensurate with its role in the region and the growth targets for the city identified in the Regional Transportation Plan/Sustainable Community Strategy prepared by the Sacramento Area Council of Governments (SACOG). · Goal LUP-2 Balanced and connected community with thriving neighborhoods and centers and
File ID: 2025-01311 7/29/2025
development intensities linked to transit.
o LUP-2.4 Development Intensity Linked to Transit. The City shall plan for higher development intensities around current and planned transit to optimize public investments and support an accessible, convenient network. 2021-2029 Housing Element
· Goal 1. Increasing Overall Housing Production
o H-1.4 Facilitate Infill Housing Development. The City shall facilitate infill housing along commercial corridors, near employment centers, near high-frequency transit areas, and in all zones that allow residential development as a way to revitalize commercial corridors, promote walkability and increased transit ridership, and provide increased housing options.
o H-1.6 Support Infrastructure Improvements in Targeted Infill Areas. The City shall identify infrastructure needs in infill areas; seek new sources of funding for planning and financing infrastructure improvements; and prioritize investments to lower construction costs and catalyze new housing development, particularly in disadvantaged and historically underserved communities as described in the 2040 General Plan Update. · Goal 2: Increasing Affordable and Workforce Housing Production o H-2.1 Provide Opportunities for Affordable Housing Throughout the City. The City shall ensure that there are sites zoned appropriately for affordable housing in each of the City’s 10 community plan areas, especially high resource areas. o H-2.3 Assist in the Development of Affordable Housing. The City and SHRA shall assist affordable housing developments through site identification, direct funding, supporting funding applications, land donation, expedited permit review, and other incentives. o H-2.5 Create Additional Local Funding for Affordable Housing. The City shall strive to create additional local funding for affordable housing. · Program H11. Prohousing Designation The City shall strive to receive and maintain through the sunset date of January 1, 2025, the State’s Prohousing Designation by demonstrating a sufficient number of polices that significantly contribute to accelerating housing production.
Jurisdictions that receive a Prohousing Designation will receive incentives in the form of additional points or other preferences in the scoring of competitive State funding grant programs in the areas of housing, transportation, infrastructure, and land use.
Environmental Considerations: This item asks the council to authorize the City Manager to apply for the State’s Prohousing Designation and is not a project for purposes of the California Environmental Quality Act (CEQA) as the application for (and receipt of) the designation will not result in a direct or indirect physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines section 15378(a) and 15061(b)(3).) Future projects that utilize grant funding will undergo CEQA review.
File ID: 2025-01311 7/29/2025
Economic Impacts: Not applicable.
Sustainability: A sustainable community includes housing for current and future households of all income levels in a sustainable development pattern. Ensuring that the City maintains its Prohousing Designation will ensure that the City remains most competitive for important state funding opportunities that fund affordable housing and infrastructure.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: City Council authorization is required to submit a Prohousing Designation Program application to HCD. A Prohousing Designation will provide the City of Sacramento with a competitive advantage for critical affordable housing and infrastructure grant programs.
Financial Considerations: None.
Local Business Enterprise (LBE): Not applicable.
Background:
Presented below is a summary of the key elements of the Prohousing Designation Application, intended to assist member of the public in comprehending the application during their review. The complete application and associated materials are available on the California Department of Housing and Community Development’s webpage:
Prohousing Designation Program | California Department of Housing and Community Development.
Application Checklist
The Prohousing Designation Program Application requires the following notable application components to be considered complete:
Application Information
Certification and Acknowledgement
Legislative Information form
Threshold Requirements Checklist
Formal Resolution (Appendix 1)
Proposed Policy Completion Schedule (Appendix 2)
Self-Scoring Sheet (Appendix 3)
One-page summary describing consistency with the 7 Principles for Addressing Encampments (Appendix 5)
Checklist confirming that a Diligent Public Participation process was conducted (Appendix 6)
Additional information and supporting documentation (Appendix 7)
Base Scoring
The Prohousing scoring criteria are organized into four categories that reflect key policy areas where jurisdictions can demonstrate efforts to accelerate housing production, improving affordability, and removing local barriers to development. The categories are as follows:
Category 1: Favorable Zoning and Land Use (21 possible points) Category 2: Acceleration of Housing Production Timeframes (21 possible points) Category 3: Reduction of Construction and Development Costs (12 possible points)
Category 4: Providing Financial Subsidies (20 possible points)
A Prohousing Designation requires a total score of 74 points or more across all four categories. Jurisdictions score points by demonstrating how they are meeting the stated policy descriptions outlined in the application through either existing or proposed policies.
Enhancement Factors
In addition to scoring base points in these four categories, individual policies may gain additional points by utilizing enhancement factors. To qualify for an enhancement factor, the jurisdictions must demonstrate how an individual policy meets one of the eight enhancement factors. Examples of enhancement factor policy areas include policies that meet multiple planning objectives, demonstrate consistency with state planning priorities, affirmatively further fair housing.
RESOLUTION NO. 2025-
A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF SACRAMENTO
AUTHORIZING APPLICATION TO AND PARTICIPATION IN THE PROHOUSING
DESIGNATION PROGRAM
WHEREAS, Government Code section 65589.9 established the Prohousing Designation Program (“Program”), which creates incentives for jurisdictions that are compliant with state housing element requirements and that have enacted Prohousing local policies; and
WHEREAS, such jurisdictions will be designated Prohousing, and, as such, will receive additional points or other preference during the scoring of their competitive Applications for specified housing and infrastructure funding; and
WHEREAS, the California Department of Housing and Community Development (“Department”) has adopted regulations (Cal. Code Regs., tit. 25, § 6600 et seq.) to implement the Program (“Program Regulations”), as authorized by Government Code section 65589.9, subdivision (d); and
WHEREAS, the City of Sacramento (“Applicant”) desires to submit an Application for a Prohousing Designation (“Application”).
THEREFORE, IT IS RESOLVED THAT:
1. Applicant is hereby authorized and directed to submit an Application to the Department.
2. Applicant acknowledges and confirms that it is currently in compliance with applicable state housing law.
3. Applicant acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production.
Examples of such local laws, policies, and actions include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regulations, development standards, or permit procedures. Applicant further acknowledges and confirms that the Prohousing Policies in its Application comply with its duty to Affirmatively Further Fair Housing pursuant to Government Code sections 8899.50 and 65583. Applicant further acknowledges and confirms that its general plan is in alignment with an adopted sustainable communities strategy pursuant to Public Resources Code section 21155- 21155.4. Applicant further acknowledges and confirms that its policies for the treatment of homeless encampments on public property comply with and will continue to comply with the Constitution and that it has enacted best practices in its jurisdiction that are consistent with the United States Interagency Council on Homelessness’ “7 Principles for Addressing Encampments” (June 17, 2022, update).
4. If the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Program, and all amendments thereto (the “Program Documents”).
5. Applicant acknowledges and agrees that it shall be subject to the Application; the terms and conditions specified in the Program Documents; the Program Regulations; and any and all other applicable law.
6. The City Manager or designee is authorized to execute and deliver the Application and the Program Documents on behalf of the Applicant for participation in the Program.
PASSED AND ADOPTED this day of July 29, 2025, by the following vote: AYES:
[Insert #] NOES: [Insert #] ABSENT: [Insert #] ABSTAIN: [Insert #] The undersigned, [INSERT NAME AND TITLE OF SIGNATORY] of Applicant, does hereby attest and certify that the foregoing is a true and full copy of a resolution of the Applicant’s governing body adopted at a duly convened meeting on the date above- mentioned, and that the resolution has not been altered, amended, or repealed.
SIGNATURE: DATE:
NAME: TITLE: