DATE: DECEMBER 13, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
THROUGH: ROD POWELL, PLANNING MANAGER
LUIS OCHOA, SR. COMMUNITY DEVELOPMENT ANALYST
BY: DAVID VIGIL, HOUSING PRODUCTION COORDINATOR VISTA TITLE: APPLICATION TO PARTICIPATE IN THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT PROHOUSING DESINGATION PROGRAM RECOMMENDED MOTION:
A motion to approve a Resolution authorizing:
The submission of an application to participate in the California Department of Housing and Community Development’s Prohousing Designation Program; and The Mayor or designee, for and on behalf of the City, to execute and enter into any agreements, documents or amendments required or deemed necessary or appropriate by HCD for participation in the Prohousing Designation Program.
EXECUTIVE SUMMARY:
The City is seeking to become the first Central Coast jurisdiction accepted to HCD’s Prohousing Designation Program. PDP inclusions would demonstrate the City’s firm commitment to the accelerated production of housing based upon the implementation of strategic, prohousing planning principles. Inclusion in the PDP will provide the City with a scoring advantage and/or preference in emerging and competitive applications for critical affordable housing and infrastructure grant programs, including the Affordable Housing and Sustainable Communities Program (AHSC), Transformative Climate Communities Program (TCC), and Infill Infrastructure Grant Program (IIG), as well as potential future advantages and opportunities involving both housing and non-housing funding sources. Approval of the proposed Resolution will authorize the submission of a City of Salinas to the California Department of Housing and Community Development Prohousing Designation Program.
BACKGROUND:
The PDP originates from the 2019-2020 Budget Act under Assembly Bill 101 Housing Development and Financing. In response to calls for immediate action to address the State’s housing crisis, the legislature tasked HCD with establishing and administering a Prohousing Designation Program to enable jurisdictions that have adopted local measures, programs and incentives that go beyond existing state law to encourage and facilitate the development of housing within its jurisdiction. To apply, jurisdictions must be in compliance with State housing laws, Housing Element requirements, and annual required reporting. In return, successfully designated jurisdictions are provided with incentives such as additional points or other preferences in the scoring of competitive housing and infrastructure grant programs such as the Affordable Housing and Sustainable Communities Program (AHSC), Transformative Climate Communities Program (TCC), Infill Infrastructure Grant Program (IIG), and Transit and Intercity Rail Capital Program (TIRCP).
DISCUSSION:
To qualify for a prohousing designation, the City must submit a completed PDP application for HCD review involving four, separate scoring categories: (1) favorable zoning and land use, (2) acceleration of housing production timeframes, (3) reduction of construction and development costs and (4) provision of financial subsidies towards housing projects. Application threshold requirements include the implementation of at least one, housing-supportive policy in each of the four categories and a cumulative score of no less than thirty (30) points of the maximum available total of sixty (60).
The City’s most recent Regional Housing Needs Allocation (RHNA) has significantly increased its obligations to accommodate the development of nearly 7,000 additional housing units. Considering this new RHNA allocation and the City's objectives for neighborhood preservation, housing production, and housing assistance, finding new sources of local, state, and federal funds for affordable housing projects is of vital importance to the City. PDP designation would serve as an important tool to attract and encourage housing development within the City and provides a competitive advantage in seeking and securing additional housing production-related funding.
In consultation with HCD staff, Community Development Department (CDD) Housing Division staff have drafted a complete PDP application citing the City’s qualifying policies, programs, and initiatives in each of the four required scoring categories. An initial ‘self- score’ of the application garners 53 points, well above the program’s minimum 30-point designation threshold. Staff have also proactively consulted and sought input from HCD PDP staff to obtain a preliminary review of the City’s application and have incorporated each of the recommended revisions into the final draft.
PDP applications are accepted on an open, rolling basis. Upon submission, HCD will have sixty (60) days to review and notify the City, in writing, of its final determination. Unsuccessful applicants may continue to consult with PDP staff and seek to further develop and refine their jurisdictional policies, programs, and incentives in order to meet designation standards to support resubmission of an application.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Obtaining PDP designation will advance the City of Salinas Strategic Plan 2022-2025 Goals and Strategies of Housing/Affordable Housing, Infrastructure and Environmental Sustainability, and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
The Prohousing Designation Program Application and Council materials were prepared by CDD’s Housing and Community Development Division in consultation with CDD’s Current Planning, Planning and Project Implementation, and Permit Services Divisions, and the Public Works Department.
FISCAL AND SUSTAINABILITY IMPACT:
Submission of a PDP application has no financial impact. Once approved as a designated PDP jurisdiction, the City would be afforded future opportunities to compete for and secure additional funding.
ATTACHMENTS:
Resolution
State HCD PDP Resolution
City of Salinas Prohousing Designation Program Application – Draft PPT – HCD PDP Application
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