Community Development Agency
www.santa-ana.org/community-development
Item # 24
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
December 17, 2024
TOPIC: Application for Prohousing Incentive Program Grant Funds
AGENDA TITLE
Application for the State of California Department of Housing and Community Development Prohousing Incentive Program
RECOMMENDED ACTION
1. Adopt a resolution authorizing the City Manager to apply for up to $1 million in grant funding from the State of California Department of Housing and Community Development (HCD) Prohousing Incentive Program.
RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA AUTHORIZING APPLICATION FOR, AND
RECEIPT OF, PROHOUSING INCENTIVE PROGRAM FUNDS
2. If awarded Prohousing Incentive Program grant funding from HCD, authorize the City Manager to execute an agreement with the State of California, in the form of HCD’s “Standard Agreement,” for receipt of the Prohousing Incentive Program grant funding for an amount up to $1 million, and any other documents required by HCD to secure the grant, if approved, as to form by the City Attorney.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The Prohousing Incentive Program (PIP) is intended to increase participation in HCD’s Prohousing Designation Program by pairing the designation with an impactful award grant. This PIP complements the Prohousing Designation Program by encouraging cities and counties to earn the Prohousing designation. In 2019, Assembly Bill 101 (AB 101) created the Prohousing Designation Program, managed by HCD. This noncompetitive program requires jurisdictions to meet State of California (State) housing laws and Housing Element requirements, as well as adopt or propose local policies that support Prohousing goals, ultimately earning them the designation of a "Prohousing city." On October 15, 2024, the City Council adopted a resolution authorizing the submission of an application for the Prohousing Designation Program to obtain this designation from HCD.
Application for Prohousing Incentive Program Grant Funds December 17, 2024
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On August 15, 2024, HCD issued a Notice of Funding Availability (NOFA) for the third round of the HCD PIP (PIP Round 3). To be eligible for the PIP Round 3, jurisdictions must have received their Prohousing designation by December 31, 2024. The application deadline for the PIP Round 3 is also December 31, 2024. Afterward, HCD will evaluate applicants who meet the program’s threshold requirements and rank them based on their Prohousing Designation score.
For this round, approximately $8 million in funding is available, and awards can be used for planning and implementation activities related to housing and community development. Eligible applicants will receive a base award based on population size (for cities with populations between 300,000 and 749,999, this amount is $1,000,000). In addition, applicants may qualify for a bonus award of up to $500,000, calculated by multiplying their Prohousing Designation score by $10,000. For instance, a jurisdiction with a Prohousing Designation score of 35 could receive a bonus of $350,000, in addition to the base award.
The application for the PIP program must include a resolution approved by the City Council (Exhibit 1). Additionally, before funds can be awarded, the City of Santa Ana (City) must meet several requirements: it must have adopted a compliant Housing Element, submitted a legally sufficient Annual Progress Report, obtained the Prohousing Designation, and complied with relevant State and Federal housing laws.
For PIP Round 3, the City is applying for $1 million in funding and a bonus award to support the development of affordable rental and ownership housing. These funds will be directed toward projects that aim to increase the supply of affordable housing units, in line with the City’s commitment and requirements in the Housing Element. The funds will be used for development activities related to affordable housing, ensuring that the City remains in compliance with State and Federal housing requirements while advancing local housing goals. This application, which supports Santa Ana's pursuit of a Prohousing city designation, will help fund critical housing initiatives, fostering long-term growth and stability within the community.
FISCAL IMPACT
If approved by HCD, the City would be eligible to receive a minimum of $1,000,000 in HCD PIP funds. Those funds would be recognized at a later date. However, there is no fiscal impact associated with this item.
EXHIBIT(S)
1. Resolution
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager