DATE: DECEMBER 3, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
BY: LUIS OCHOA, SR. COMMUNITY DEVELOPMENT ANALYST
DAVID VIGIL, ADMINISTRATIVE ANALYST
TITLE: APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE PROHOUSING INCENTIVE PROGRAM ROUND 3 RECOMMENDED MOTION:
A motion to approve attached City and State Housing and Community Development Department Resolutions authorizing:
The submission of a Prohousing Incentive Program (PIP) Round 3 application to the California Department of Housing and Community Development (HCD) of $1,250,000 to assist persons who are experiencing or at risk of homelessness, and/or the development, acquisition, and preservation of affordable housing for households earning up to 120% AMI, or 150% AMI in high-cost areas; and if awarded, The City Manager or designee to accept PIP Round 3 funds and execute all required Agreements and related documents necessary to implement the program; and The establishment of PIP Round 3 appropriation and budget allocation based on awarded budget and activities.
EXECUTIVE SUMMARY:
On August 15, 2024, the California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) and application for its Prohousing Incentive Program (PIP) Round 3 to support the creation and preservation of affordable housing. The Application deadline is December 31, 2024. Eligible applicants who have not received PIP funding in prior funding rounds will be given funding priority with any remaining amounts then becoming available to previously awarded jurisdictions. The City of Salinas received Round 1 PIP Funding in the amount of $1,650,000 for the creation of an Affordable Housing Program and a First Time Homebuyer Down Payment Assistance Program. On March 15, 2024, the City submitted a PIP Round 2 application to HCD but did not receive funding. Based upon PIP Round 3 guidelines, the City could receive an award of up to $1,250,000 to assist persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters and the new construction, rehabilitation, and preservation of permanent and transitional housing, and develop, acquire, and preserve affordable housing for households earning up to 120% AMI, or 150% AMI in high-cost areas. Application criteria requires City Council approval of both City and State resolutions authorizing application submission and grant acceptance.
BACKGROUND:
PIP Round 3 has approximately $8 million in funding available for eligible jurisdictions with a Prohousing Designation. Based on the funding allocation calculations, the City could receive $1,250,000. If awarded PIP Round 3 funds, the City intends to support the acquisition and preservation of permanent housing for 82 low- and moderate-income households at Alisal Country Estates Mobile Home Park. Residents have formed a public benefit corporation and are seeking to transition the park to a resident-owned cooperative model to preserve their housing, prevent displacement, and ensure long-term affordability.
Should the above activity not be feasible, the City is proposing two additional alternatives. The first alternative will be to utilize funds to support the operational needs to provide transitional and emergency housing for individuals experiencing homelessness at El Rey Motel. The second alternative will be to utilize the funds as gap financing for the development of affordable rental and ownership housing.
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). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
Submission of a PIP Round 3 Program application to HCD supports City of Salinas Strategic Plan 2022-2025 Goals and Strategies of Housing/Affordable Housing by providing critical funding to increase affordable housing production and assist working families own a home.
DEPARTMENTAL COORDINATION:
This agenda item was prepared by the CDD’s Housing and Community Development Division in collaboration with HCD.
FISCAL AND SUSTAINABILITY IMPACT:
Acceptance of HCD PIP Round 3 funds, if awarded, will result in the establishment of a HCD PIP Round 3 program appropriation and corresponding allocation of up to $1,250,000 to the existing PIP Fund 2958. Housing Division Staff will then work with the Finance Department to set up a program budget based on awarded activities. This application will have no direct fiscal impact to the General Fund.
Fund
Appropriation
Appropriation
Name
Total Appropriation
Amount for recommendation
FY 24-25 Operating Budget Page
Last Budget Action (Date, Resolution)
2958
N/A
N/A
N/A
N/A
N/A
N/A
ATTACHMENTS:
Resolution – City
Resolution – State
City of Salinas PIP Program Application – Draft
Page | 3
Page | 1
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