Community Development Agency
www.santa-ana.org/cd
Item # 20
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 17, 2026
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 Grant Funds
RECOMMENDED ACTION
1. Adopt a Resolution authorizing the City Manager to apply for up to $1.42 million in grant funding from the State of California Department of Housing and Community Development (HCD) Prohousing Incentive Program.
RESOLUTION NO. 2026-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 for receipt of the Prohousing Incentive Program grant funding for an amount up to $1.42 million, and any other documents required by HCD to secure the grant, approved as to form by the City Attorney.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The City of Santa Ana (City) is one of only two cities in Orange County designated by HCD as a Prohousing city. The City received this designation on May 27, 2025 and, as a Prohousing city, is eligible to apply for HCD’s Prohousing Incentive Program (PIP).
The PIP is intended to increase participation in HCD’s Prohousing Designation Program by pairing the designation with an impactful award grant.
On September 30, 2025, HCD issued a Notice of Funding Availability for the fourth round of the HCD PIP (PIP Round 4). To be eligible for the PIP Round 4, jurisdictions must have received their Prohousing designation by March 31, 2026. The application deadline for the PIP Round 4 is March 31, 2026. Afterward, HCD will evaluate applicants who meet the program’s threshold requirements and rank them based on their Prohousing Designation score.
Application for Prohousing Incentive Program Grant Funds March 17, 2026
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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. Santa Ana received a score of 42, yielding a bonus award of $420,000. As such, the City is eligible to receive up to $1,420,000 in grant funds.
For PIP Round 4, the City is applying for $1.42 million in funding to support the ongoing operations of the City’s emergency shelter and to support the provision of basic daily needs and supportive services that help individuals experiencing homelessness move toward stable housing while in shelter (Exhibit 1). The City aims to strengthen its homelessness response system by ensuring that emergency shelter operations remain accessible while expanding pathways to transitional and longer-term housing solutions.
These one-time funds will help sustain critical shelter operations and housing assistance efforts while the City continues to invest in long-term housing strategies. A total of $71,000, or 5% of the award amount, may be used for administrative costs. The application for the PIP program must include a resolution approved by the City Council (Exhibit 2).
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with this item at this time.
EXHIBIT(S)
1. Application
2. Resolution
Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nuñez, City Manager