Ukiah City Council
March 18, 2026

City Council
Regular Meeting
AGENDA
(to be held both at the physical and virtual locations below) Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/86926523277 Or you can call in using your telephone only:
• Call (toll free) 1-888-788-0099
• Enter the Access Code: 869 2652 3277
• To Raise Hand enter *9
• To Speak after being recognized: enter *6 to unmute yourself Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at www.cityofukiah.com/meetings.

March 18, 2026 - 5:15 PM

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS

4.a. Presentation on the 2025/26 Ukiah On Ice Season.

Recommended Action: Receive presentation.

Attachments:

1. Ukiah on Ice Presentation

2. Ukiah On Ice Sponsors

4.b. Proclamation Celebrating the 150th Anniversary of the Incorporation of the City of Ukiah.

Recommended Action: Issue a proclamation recognizing the 150th Anniversary of the incorporation of the City of Ukiah.

Attachments:

1. Ukiah 150 Proclamation

4.c. Presentation on the 2025-2026 Volunteer Program.

Recommended Action: Receive the presentation and provide direction as appropriate.

Attachments:

1. Ukiah Volunteer Program - 20252026

4.d. Receive Presentation of Exceptional Employee Recognition Awards.

Recommended Action: Receive a presentation of the Exceptional Employee Recognition Awards.

Attachments: None

5. PETITIONS AND COMMUNICATIONS

6. APPROVAL OF MINUTES

6.a. Approval of the Minutes for the March 4, 2026, Special Meeting.

Recommended Action: Approve the minutes for the March 4, 2026, Special Meeting.

Attachments:

1. 2026-03-04 CC Draft Minutes - Special Meeting

6.b. Approval of the Minutes for the March 4, 2026, Regular Meeting.

Recommended Action: Approve the minutes for the March 4, 2026, Regular Meeting.

Attachments:

1. 2026-03-04 CC Draft Minutes - Regular Meeting

7. RIGHT TO APPEAL DECISION
Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged.

8. CONSENT CALENDAR
The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council.

Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations.

8.a. Report of Disbursements for the Month of February 2026.

Recommended Action: Approve the report of disbursements for the month of February 2026.

Attachments:

1. February 2026 Summary of Disbursements

2. Account Codes for Reference

3. Object Codes for Reference

4. February 2026 Disbursements Detail

8.b. Adoption of an Ordinance Adding a New Chapter 9 to Division 2 of the Ukiah City Code to Regulate Sidewalk Vending on Public Property and in the Public Right-of-Way.

Recommended Action: Adopt an ordinance adding a new Chapter 9 to Division 2 of the Ukiah City Code to regulate sidewalk vending on public property and in the public right-of-way.

Attachments:

1. Public Materials Example - Sidewalk Vendors

2. Proposed Ordinance Modifications (Post-City Council Introduction)

3. Finalized Ordinance

8.c. Adoption of Resolution Authorizing the Submittal of an Application to the California Department of Housing and Community Development for $530,000 in Funding Under Round 4 of the Prohousing Incentive Program; and if Selected, Authorize the City Manager to Execute a Standard Agreement, Any Amendments Thereto, and Any Related Documents Necessary to Participate in the Prohousing Incentive Program, as well as Authorization of the Corresponding Budget Amendments.

Recommended Action: Adopt a resolution authorizing submittal of an application to the California Department of Housing and Community Development for $530,000 in funding under Round 4 of the Prohousing Incentive Program; and if the City is selected for award, authorize the City Manager to execute the standard agreement, any amendments thereto, and any related documents necessary to participate in the Prohousing Incentive Program; and authorize any corresponding budget amendments.

Attachments:

1. pip-round-4-nofa

2. pip-round-4-guidelines

3. 2017_Housing_Strategy

4. pip-round-4-application

5. pip-resolution

8.d. Adoption of Resolution Authorizing Submittal of an Application to the California Department of Housing and Community Development for Funding under the HOME Investment Partnerships Program; and if Selected, Authorize the City Manager to Execute a Standard Agreement, Any Amendments Thereto, and Any Related Documents Necessary to Participate in the HOME Investment Partnerships Program, as well as Authorization of the Corresponding Budget Amendments.

Recommended Action: Adopt a resolution authorizing submittal of an application to the California Department of Housing and Community Development for $5,225,000 in funding under the HOME Investment Partnerships Program for a Multi-Family Affordable Rental Housing Rehabilitation Project; and if selected, authorize the City Manager to execute the standard agreement, any amendments thereto, and any related documents necessary; and authorize any corresponding budget amendments.

Attachments:

1. HOME-2025-Projects-Nofa

2. HOME-Income-Limits-2025

3. Resolution-HOME-2025-Nofa

8.e. Approval of Lease Agreement with Option to Purchase between the City of Ukiah and the Willow County Water District for the Property Located at 151 Laws Avenue, APN 003-420-47; Authorization for the City Manager to Negotiate and Execute the Agreement and Any Related Documents Necessary to Implement the Lease-Purchase Transaction; and Approve Corresponding Budget Amendment.

Recommended Action: Approve the Lease Agreement with Option to Purchase between the City of Ukiah and the Willow County Water District for the property located at 151 Laws Avenue, APN 003-420-47; authorize the City Manager to negotiate and execute the agreement and any related documents necessary to implement the lease-purchase transaction; and approve corresponding budget amendment.

Attachments:

1. LEASE AGREEMENT WITH OPTION TO PURCHASE - FINAL w attachments

2. SLA Process - Exemption (Public Use)

8.f. Award Purchase of Toyota Model 9FBZ80U Electric Pneumatic Lift Truck to Atlas Toyota Material Handling in the Amount of $211,769.72, with $183,500 to be Reimbursed through the Volkswagen Environmental Mitigation Trust Fund, and Approve Corresponding Budget Amendment.

Recommended Action: Award purchase of Toyota Model 9FBZ80U Electric Pneumatic Lift Truck to Atlas Toyota Material Handling in the amount of $211,769.72, and approve corresponding budget amendment.

Attachments:

1. CC Reso 2026-07 - Authorizing Volkwagen Environmental Mitigation Fund Application

2. Quote - Toyota Electric Forklift

9. AUDIENCE COMMENTS ON NON-AGENDA ITEMS

The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda that is within the subject matter jurisdiction of the City Council, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda.

10. COUNCIL REPORTS

11. CITY MANAGER/CITY CLERK REPORTS

12. PUBLIC HEARINGS (5:30 PM)

13. UNFINISHED BUSINESS

13.a. Receive and Approve Submittal of the 2025 Annual Progress Reports to the Department of Housing and Community Development and the Governor's Office of Land Use and Climate Innovation.

Recommended Action: Receive and approve submittal of the 2025 Annual Progress Reports to the Department of Housing and Community Development and the Governor's Office of Land Use and Climate Innovation, and provide direction to Staff as necessary.

Attachments:

1. Housing Element APR

2. General Plan APR

13.b. Re-Adoption of a Resolution Approving a Zero Tax Share Agreement Between the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), Local Agency Formation Commission (LAFCo) File No. A-2025-06.

Recommended Action: Re-Adopt a resolution approving a Zero Tax Sharing Agreement between the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), LAFCo File No. A-2025-06.

Attachments:

1. 1 Carousel Lane - Tax Share Agreement - LAFCo A-2025-06)

2. Draft Resolution

14. NEW BUSINESS

14.a. Adoption of Updates to General Plan Land Use, Zoning, and Downtown Zoning Code Maps Consistent with Goals and Policies of the 2040 General Plan.

Recommended Action: Adopt updates to the City of Ukiah’s official Zoning Map, General Plan Land Use Map, and Downtown Zoning Code Map to reflect previously approved annexations, rezones, and General Plan amendments, to standardize a shared visual format for clarity and consistency, and to implement policies and goals of the 2040 General Plan.

Attachments:

1. City of Ukiah Existing Maps (Zoning, General Plan, DZC)

2. 2016 - 2025 Approved Land Use Modifications

3. City of Ukiah Proposed Maps (Zoning, General Plan, DZC)

14.b. Introduction of an Ordinance by Title Only Amending Section 1166 of the Ukiah City Code Pertaining to the Design Review Board Regular Meetings.

Recommended Action: Introduce an ordinance by title only amending Division 1, Chapter 3, Article 4B, Section 1166 of the Ukiah City Code, adjusting the regular meeting schedule of the Design Review Board to a single, annual regular meeting and special meetings as needed.

Attachments:

1. Proposed Ordinance - redline and clean

14.c. Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s).

Recommended Action: Receive report(s). The Council will consider modifications to committee and ad hoc assignments along with the creation/elimination ad hoc(s); including the disbandment of the Trench Cut Policy Development Ad Hoc.

Attachments:

1. 2026 City Council Special Assignments & Ad Hocs

15. CLOSED SESSION - CLOSED SESSION MAY BE HELD AT ANY TIME DURING THE MEETING

15.a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (2 cases)

15.b. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(2))
Significant exposure to litigation (1 case)

15.c. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Nui Rising Moon Trust v. City of Ukiah, et al.; Case No. 3:25-cv-08320

15.d. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200

15.e. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort, Inc v. City of Ukiah, et al.; Case No. 24-cv-07106-JSC

15.f. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 001-020-78-00, 001-030-01, 001-090-01 Negotiator: Maya Simerson, Senior Management Analyst, City Manager’s Office Negotiating Parties: Tayman Park Golf Group
Under Negotiation: Price & Terms of Agreement

15.g. Conference with Labor Negotiator (54957.6)
Agency Designated Representative: Sage Sangiacomo, City Manager Employee Organizations: All bargaining units
Unrepresented Employee: Police Chief

15.h. Public Employment (City Attorney)
(Cal. Gov. Code § 54957(b)(1))

16. ADJOURNMENT

Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 48 hours in advance of the meeting; for handouts, please include 10 copies.

I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda.

Araceli Sandoval, Deputy City Clerk
Dated: 03/13/26

Agenda Item No: 4.a.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-370

AGENDA SUMMARY REPORT
SUBJECT: Presentation on the 2025/26 Ukiah On Ice Season.

DEPARTMENT: Community Services PREPARED BY:

Marianne Aranda, Senior Recreation Coordinator,
Jake Burgess, Community Services Director,
Daniel Spence, Community Services Supervisor
PRESENTER: Daniel Spence, Community Services Supervisor ATTACHMENTS:

1. Ukiah on Ice Presentation

2. Ukiah On Ice Sponsors
Summary: The Ukiah On Ice downtown skating rink was overwhelmingly popular with the community this season and was supported by numerous local sponsors. The Council will receive a presentation (Attachment 1) showing a video recapping the Ukiah On Ice season and gratitude will be given to the sponsors.

Background: The City of Ukiah has previously partnered with local businesses and organizations to bring a seasonal ice skating rink to downtown Ukiah. The City rented the rink for the 2016-2019 seasons from an outside agency, and did not host the skating rink in 2020 due to the COVID pandemic. On September 1, 2021, the City Council approved the purchase of a seasonal ice rink which included skates, glycol tubes/ piping, glycol, clear dasherboards, skate sharpener, Ice Wizard resurfacing machine, gas-powered edger, and rubber mats. The 120-ton chiller and 40' x 120' tent remained rental items as they entail complicated installations and would require inordinate amounts of storage space and need specialized maintenance.

The rink was again located on School Street in front of the Alex Thomas Plaza. The rink was forty feet wide and one hundred feet long (40' x 100'), which is the maximum size based on the parameters of the location on School Street. The site is ideal for its proximity to electrical access, restrooms, parking and the covered pavilion. Another benefit to the location is that the activity at the rink brings thousands of people to the downtown area, where they have access to local shops and restaurants during the prime holiday shopping season.

Discussion: The Ukiah On Ice downtown skating rink was open daily, including holidays, for six weeks, and hosted school field trips along with private parties throughout the majority of the operation. Skating (including ice skate rental) was $12 per person per session for regular public skating hours and $10 per session for field trips or large groups. Opening night was Monday, December 1st and was coordinated with the Light Parade and Home Town Holiday festivities at the Plaza.

The community response to the ice rink was overwhelming, drawing people from all around Mendocino County, Lake County, and Sonoma County. The excitement and energy focused around the rink was palpable and resulted in a significant number of visitors to the downtown area. The rink was especially popular on the weekends, with significant numbers of skaters and families enjoying the activity.

The ice rink hosted a multitude of special events including birthday parties, theme nights, company events, and school fundraisers. These events served to create special memories for those who attended, and the unique setting of a downtown ice skating rink during the holiday season was a ready-made photo opportunity

for families and friends.
2025/2026 Ukiah on Ice:
• Attracted over 10,000 skaters of all ages to the downtown shopping district • Welcomed 31 field trips with over 2,000 students and 100 chaperones • Booked 9 table rentals and parties
• Held 7 fundraisers, including school PTO nights and 4-H organizations • Donated tickets to North Coast Opportunity Headstart Program and Redwood Community Services • Added field trip from the ASES program
• Hosted 3 theme nights
• Employed 42 young adults throughout the season
• Was supported by 26 sponsors
• Received widespread exposure on social media: Facebook ‘Ukiah on Ice’ posts reached an impressive 162,726 people, and 2 interactions with 95,639 impressions and 771 comments; and Instagram posts and stories reached 28,963 separate users.

City Staff would like to extend their appreciation to the City Council for their support and to everyone who participated in Ukiah On Ice, from the skaters to the behind-the-scenes Staff. In particular, City Staff would like to recognize the generous community sponsors (Attachment 2) who supported this event and ultimately made it possible, with many going above and beyond for this community event.

Purchasing the seasonal ice rink entailed an interfund loan. At the end of this season, although there are a few budgetary numbers to firm up, Staff plans to make an estimated transfer of $11,303.07.

UKIAH ON ICE BUDGET
Revenue FY 25/26
Ticket Sales/Concessions/Trips/Parties $103,300.00
Ticket Donations (NCO Headstart +
Redwood Community Services)
$4,000.00
ASES Fieldtrips $5,000.00
Sponsors $45,000.00
Total $157,300.00
Expenses FY 25/26
Chiller $28,315.00
Tent $18,500.00
Interdepartmental Construction Help
(OT)
$1,594.30
Sandbox Sponsor Donation
Fencing Sponsor Donation
Utilities $13,731.40
Staff for Ice Rink (Part-time) $63,144.75
PERS $1,692.21

Workers Comp $3,969.14
Medicare $938.80
FICA $3,088.77
Supplies $11,022.56
Allocations (Insurance, Admin,
Purchasing)
$0.00
Total $145,996.93
Rev minus Expenses $11,303.07
Interfund Loan Repayment $11,303.07

Recommended Action: Receive presentation.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: General Fund
REVENUE: Yes GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: PO# 47462
COORDINATED WITH: Daniel Spence, Community Services Supervisor STRATEGIC PLAN (SP): N/A
GENERAL PLAN ELEMENTS (GP): GP-A2 - Economic Development Element

December 1 Januar y
11 Al e x Th o ma s
Pl a za
$15 per
sessio n o pen da ily
Attachment 1

CONSTRUCTION

CONSTRUCTION
CREW

PUBLIC SKATE

3600+ SKATERS
UKIAH On Ice

FIELD TRIPS
UKIAH On Ice

FIELD TRIPS
31 Fie ld Tr ip s
20 Sch ools
1500+ St u d e n t s
UKIAH On Ice

ASES FIELD TRIPS
31 Fie ld Tr ip s
20 Sch ools
1500+ St u d e n t s
UKIAH On Ice

7 PTO NIGHTS
UKIAH On Ice
School & Youth Group Fundraisers

3 SPECIAL

THEME NIGHTS
UKIAH On Ice

UKIAH On Ice

EMPLOYED
42 PART-TIME
STAFF
UKIAH On Ice

UKIAH On Ice

FACEBOOK IMPRESSIONS
POST REACHED: 162,726
IMPRESSIONS: 95,639
ENAGEMENT: 6147
POST REACTIONS: 522
COMMENTS: 771

UKIAH On Ice

INSTAGRAM

POSTS REACH
(NUMBER OF TIMES CONTENT PLAYED OR DISPLAYED):
28,963

POSTS REACH
(UNIQUE NUMBER OF VIEWERS):
30 14

SPONSORS
UKIAH On Ice

Ace ve d o 's Uk ia h Tr u ck Re p a ir
Act io n Re n t s
Blu e Zo n e s
Bo n t e r r a Or ga n ic Es t a t e s
Ch a r b a y Dis t ille r y
Co m m u n it y Fir s t Cr e d it Un io n
De fa t t e Eq u ip m e n t
El Azt e ca Re s t a u r a n t
He n s e l Ph e lp s / Kit ch e ll
MCHC He a lt h Ce n t e r s
WOW! Sm ile s & Pa r k Fa lls De n t a l
Sa vin gs Ba n k o f Me n d o cin o
Co u n t y
Uk ia h Wa st e Solu t ion s
Uk ia h Va lle y At h le t ic Clu b
UKIAH On Ice

Attachment 2
2025/2026 Ukiah On Ice Sponsors
Partner
Greater Ukiah Business and Tourism Alliance
Platinum
Ghilotti Construction Company
Granite Construction
JD General Engineering Construction

KWINE & MAX
Gold
Arrow Fencing Arrow Fencing
Defatte Equipment
Mendocino Forest Products
PG&E
Pinoleville Pomo Nation
WIPF Construction
Silver
Aaction Rents
Acevedo's Ukiah Truck Repair
Adventist Health
Charbay Distillery
Community First Credit Union
Cupples & Sons Const. Inc
Kitchell/ Hensel Phelps
Ukiah Valley Athletic Club
WOW Smiles/Park Falls Dental
Bronze
Blue Zones Project
Bonterra Organic Estates
City of Ukiah Electric Dept.

El Azteca Resturant
MendoMill
Mendocino County Health Clinic
Savings Bank of Mendocino County

Agenda Item No: 4.b.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-426

AGENDA SUMMARY REPORT
SUBJECT: Proclamation Celebrating the 150th Anniversary of the Incorporation of the City of Ukiah.

DEPARTMENT: Community Services PREPARED BY: Marianne Aranda, Senior Recreation Coordinator PRESENTER: Mayor Sher
ATTACHMENTS:

1. Ukiah 150 Proclamation
Summary: Council will issue a proclamation recognizing the 150th Anniversary of the incorporation of the City of Ukiah.

Background: In 2026, the City of Ukiah will commemorate the 150th anniversary of its incorporation, which occurred on March 8, 1876.

Discussion: To honor this historic occasion, the City of Ukiah has planned a series of commemorative activities and community events throughout the year. The celebration will formally begin with a proclamation (Attachment 1) presented at the March 18 City Council meeting recognizing the 150th anniversary of Ukiah’s incorporation.

Recommended Action: Issue a proclamation recognizing the 150th Anniversary of the incorporation of the City of Ukiah.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Historical Society of Mendocino County and Greater Ukiah Business and Tourism Alliance
STRATEGIC PLAN (SP):N/A
GENERAL PLAN ELEMENTS (GP): N/A

The City of Ukiah’s 150th Anniversary
Whereas, the City of Ukiah, incorporated in 1876, stands as one of Northern California’s historic communities, recognized for its deep agricultural and timber roots, vibrant arts community, and strong sense of community connection; and
Whereas, the City of Ukiah takes its name from the Yokaia people of Shokadjal village, whose name—meaning "south valley people"—honors the area’s original inhabitants whose culture, language, and stewardship remain an enduring part of Ukiah's identity; and Whereas, Ukiah’s evolution begins with the abundant and biologically diverse Ukiah Valley being stewarded for thousands of years by Pomo peoples, whose enduring presence is foundational to the region; and
Whereas, Ukiah’s later growth and development emerged out of a thriving agricultural, ranching, and timber-based economy, and later became indelibly enriched by the back-to-the-land movement, and continues today to evolve while taking pride in its past and also planning thoughtfully for the future; and
Whereas, Ukiah, Mendocino County’s seat of government, is a “full-service” city providing a wide range of essential services to its residents, including police and fire protection, parks and recreation, airport, water treatment, sewage treatment, recycled water, and electricity; and Whereas, Ukiah has especially vibrant arts and intellectual offerings for a city of its size, including an ongoing legacy of Pomo basketry, the paintings of Grace Hudson housed in a museum of the same name, a historically significant observatory, performing arts organizations, a symphony orchestra, concerts by professional musicians from all over the world, and an innovative community college; and
Whereas, Ukiah’s identity is shaped by its diverse residents whose histories, labor, creativity, and leadership have enriched the social, cultural, and economic life of Ukiah; and Whereas, the City is committed to the principle of ensuring that voices from historically underrepresented communities are acknowledged, respected, and meaningfully included in civic life to ensure strong, socially cohesive neighborhoods that improve the quality of life for all residents; and Whereas, as Ukiah commemorates 150 years since its incorporation, the City looks toward the future with a shared commitment to resilience, sustainability, economic vitality, and community engagement—embracing innovation and investing in future generations to ensure Ukiah remains a welcoming and thriving place for all.

Therefore be it resolved, that the City of Ukiah hereby proclaims the celebration of Ukiah’s 150th Anniversary, and invites residents, organizations, and visitors to commemorate the City’s history, celebrate its diverse communities, and look ahead with shared purpose towards a vibrant future.

Signed and sealed, this 18th day of March in the year
Two Thousand and Twenty-Six.
____________________________
Susan Sher, Mayor
Attachment 1

Agenda Item No: 4.c.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-447

AGENDA SUMMARY REPORT
SUBJECT: Presentation on the 2025-2026 Volunteer Program.

DEPARTMENT: Community Services PREPARED BY: Marianne Aranda, Senior Recreation Coordinator PRESENTER: Marianne Aranda, Sr. Recreation Coordinator
ATTACHMENTS:

1. Ukiah Volunteer Program - 20252026
Summary: Council will receive a presentation (Attachment 1) on the 2025-2026 Volunteer Program.

Background: In 2025, the City Council approved the creation of a temporary, part-time Volunteer Coordinator position funded through the Solid Waste Abatement Fund. The position was established to help organize and support volunteer efforts focused on improving the cleanliness and condition of Ukiah’s parks, creeks, and public spaces.

Litter, graffiti, and other forms of vandalism impact local creeks, waterways, parks, and public facilities. These issues not only harm the environment but also affect the quality and appearance of shared community spaces.

City Parks and Streets crews regularly dedicate significant time to removing debris, graffiti, and encampmentrelated waste from these areas.

To address these challenges, the City created a Solid Waste Abatement Fund through a small fee added to residential garbage bills. The fund was intended to support public cleanup and abatement activities. Prior to the Volunteer Program, funds had primarily been used for occasional contractor-led cleanup projects. At the time the program was established, the fund balance had grown to over $100,000, with $65,000 already allocated for the development of downtown garbage enclosures.

Discussion: This past year, the Volunteer Program made meaningful progress in mobilizing community members to care for Ukiah’s parks, creeks, and public spaces. A total of 38 volunteers participated throughout the season and contributed 214 volunteer hours. From 17 events, volunteers removed over 2,000 pounds of trash from local natural areas. Cleanup efforts took place at several locations, including Orr Creek, the Great Redwood Trail, Gobbi Street, and Gibson Creek. The presentation is included as Attachment #1.

The program also benefited from valuable partnerships with the Mendocino County Resource Conservation District and The River Church, whose support helped expand volunteer participation and strengthen community engagement.

The program aims to organize frequent community cleanup events each month. In partnership with the Community Services Department Team, the Volunteer Coordinator also supports outreach efforts through social media and other communication channels to highlight volunteer accomplishments and recruit additional participants.

Recommended Action: Receive the presentation and provide direction as appropriate.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A

PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: Solid Waste Mitigation Fund 696
REVENUE No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Ed Donovan, Volunteer Coordinator
STRATEGIC PLAN (SP): SP 1C - Encourage and support an environmentally sustainable and resilient community by embracing new technology, setting policy, and evaluating critical infrastructure.

GENERAL PLAN ELEMENTS (GP): GP-A4 - Public Facilities, Services, and Infrastructure Element; GP-A5 - Environment and Sustainability Element

BBEECCOOMMEE AA VVOOLLUUNNTTEEEERR!!
For more information,
visit www.cityofukiah.com/volunteer
or e-mail Ed - [email protected]
Community Clean-ups
Graffiti Removal
...and more!
Liability
Form

VOLUNTEER

RECRUITMENT STARTED
APRIL 2025

VOLUNTEER

RECRUITMENT STARTED
APRIL 2025
Social Media
Press Release
E-mail Blast
Flyers

VVOOLLUUNNTTEEEERR DDAAYYSS

3388 VVOOLLUUNNTTEEEERRSS

22000000 LLBBSS OOFF TTRRAASSHH

221144 HHOOUURRSS OOFF VVOOLLUUNNTTEEEERR

1177 EEVVEENNTTSS

GGRREEAATT RREEDDWWOOOODD TTRRAAIILL

OORRCCHHAARRDD BBRRIIDDGGEE

GGIIBBSSOONN CCRREEEEKK

OORRRR CCRREEEEKK

Agenda Item No: 4.d.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-451

AGENDA SUMMARY REPORT
SUBJECT: Receive Presentation of Exceptional Employee Recognition Awards.

DEPARTMENT: Human Resources /
Risk Management PREPARED BY: Tim Mitchell, H.R./Risk Manager Analyst PRESENTER: Department Directors, City Manager, and Mayor.

ATTACHMENTS:

None
Summary: The Mayor will present selected employees with Exceptional Employee Recognition awards.

Background: The City of Ukiah prioritizes the retention and attraction of outstanding employees and recognizes their role in our goal of providing exceptional customer service. The Exceptional Employee Program recognizes (through a nomination process) and awards those employees or teams of employees who have truly gone above and beyond. Once each quarter, nominations are considered from the categories of field crews, public safety, and administration.

Discussion: The recipients of the Exceptional Employee program for the first quarter of 2026 are as follows:

Anthony DeLapo, Christian Ballestrazze, Trey O'Neill, and Jacob Newcomb; Police Officers, Police Department: On Monday, February 2, 2026, at approximately 7:28 p.m., Officers DeLapo, Ballestrazze, O'Neill, and Newcomb responded to a subject brandishing a large knife and acting erratically in the 500 block of N. State Street. When the officers arrived, they were met with a shirtless subject who was extremely hostile, cutting himself and threatening officers with a large knife. Numerous negotiation techniques and mental health crisis workers were utilized with negative results. The subject eventually began walking directly towards an assisting Mendocino County Sheriff Sergeant while holding the knife. Multiple less lethal devices were utilized to prevent the subject from harming officers or the public, ultimately resulting in the incapacitation and arrest of the subject. This could have easily become a deadly threat confrontation and was mitigated by the actions of these highly trained officers.

Josie Castanon and Joanna Delgado; Records Clerks, Police Department: Josie and Joanna were nothing short of extraordinary during the Police Department's transition from CentralSquare Records Management System (RMS) to the new RIMS RMS. When cases opened within 24 hours of go-live failed to migrate, they tackled the setback head-on, manually re-entering every report and narrative with precision and determination - a months-long effort. At the same time, they flawlessly managed their daily duties, completed year-end purging and records reorganization, and patiently guided officers and sergeants through the new system. Their resilience, positivity, and unwavering commitment ensured a seamless transition and showcased just how invaluable they are to their Department.

Cassandra Borgna; Senior Recreation Coordinator, Community Services Department: Cassandra Borgna is recognized for her extraordinary mentorship of more than 150 part-time employees, whom she supervises for the City of Ukiah. Beyond her formal duties, she often spends evenings and weekends helping young Staff write resumes, refine cover letters, complete applications, and prepare for interviews. During normal work days, not only is she building their professional skills and confidence, but she has also spent

countless hours serving as a vital bridge to further their careers and pursuit of higher education. Many former employees have gone on to become teachers, nurses, business leaders, and other professionals. Her dedication to staff development reflects the highest ideals of public service and actively cultivates future leaders in the community.

Recommended Action: Receive a presentation of the Exceptional Employee Recognition Awards.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: The City Manager's Office and Department Directors STRATEGIC PLAN (SP): SP 5C - Create, sustain, and advance a diverse and inclusive workplace and workforce that reflects, values, and celebrates the diverse community we serve.

GENERAL PLAN ELEMENTS (GP): N/A

AGENDA ITEM 6a

CITY OF UKIAH

CITY COUNCIL MINUTES
Special Meeting

CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue, Ukiah, CA 95482
Virtual Meeting Link: https://us06web.zoom.us/j/86935146282 March 4, 2026
3:00 p.m.

1. ROLL CALL AND PLEDGE OF ALLEGIANCE
Ukiah City Council met at a Special Meeting on March 4, 2026, having been legally noticed on February 27, 2026. The meeting was held in person and virtually at the following link:
https://us06web.zoom.us/j/86935146282. Mayor Sher called the meeting to order at 3:04 p.m. Roll was taken with the following Councilmembers Present: Douglas F. Crane, Mari Rodin, Heather Criss, Juan V. Orozco, and Susan Sher. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk.

MAYOR SHER PRESIDING.

The Pledge of Allegiance was led by Councilmember Criss.

2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS

No public comment was received. Clerk noted that no public presence was online at that time.

3. UNFINISHED BUSINESS
No unfinished business items were placed on the agenda.

4. NEW BUSINESS
a. Mid-Year Departmental Budget and Objectives Progress Review for Fiscal Year 2025-26, Review of Draft Objectives, and Review of Individual Departmental Five-Year Capital Improvement Plan Updates for Fiscal Year 2026-27.

Presenters: Oliver MacDonald, Senior Accountant and Department Directors.

Community Development:

Overview – Craig Schlatter, Community Development Director (3:09 p.m.) Building Division, Code Enforcement, and Fire Prevention, and Business Services – Matt Keizer, Chief Building Official (3:12 p.m.)
Councilmember Rodin departed at 3:26 p.m. to attend an alternate meeting.

Planning Services – Jesse Davis, Chief Planning Manager (3:28 p.m.) Housing Services and Grants Management – Jim Robbins, Grants Manager (3:35 p.m.) Climate Adaptation and Resilience – Craig Schlatter, Community Development Director (3:40 p.m.) Airport – Greg Owen, Airport Manager (3:43 p.m.)
Electric Utility:

Electric Administration – Cindy Sauers, Electric Utility Director (3:48 p.m.) Electric Technical Services – Cindy Sauers, Electric Utility Director (3:52 p.m.) Electric Distribution – Dan Quarles, Electric Superintendent (3:57 p.m.)

City Council Minutes for March 4, 2026, Continued:

Police – Tom Corning, Police Chief; Marla Swan, Communications and Records Manager; and Jason Chapman, Police Captain (4:01 p.m.)
Councilmember Rodin returned at 4:06 p.m.

No public comment was received.

5. ADJOURNMENT
There being no further business, the meeting adjourned at 4:29 p.m. ________________________________
Kristine Lawler, City Clerk

AGENDA ITEM 6b

CITY OF UKIAH

CITY COUNCIL MINUTES
Regular Meeting

CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue, Ukiah, CA 95482
Virtual Meeting Link: https://us06web.zoom.us/j/88492822902 March 4, 2026
5:15 p.m.

1. ROLL CALL
Ukiah City Council met at a Regular Meeting on March 4, 2026, having been legally noticed on February 27, 2026. The meeting was held in person and virtually at the following link:
https://us06web.zoom.us/j/88492822902. Mayor Sher called the meeting to order at 5:20 p.m. Roll was taken with the following Councilmembers Present: Douglas F. Crane, Mari Rodin, Heather Criss, Juan V. Orozco, and Susan Sher. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk.

MAYOR SHER PRESIDING.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Councilmember Rodin.

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Proclamation Recognizing March 2026 as National Nutrition Month in the City of Ukiah.

Presenter: Councilmember Crane.

No public comment was received.

The Clerks office will deliver the proclamation to Adventist Health.

5. PETITIONS AND COMMUNICATIONS
City Clerk, Kristine Lawler, stated that no communications had been received.

6. APPROVAL OF MINUTES
a. Approval of the Minutes for the February 18, 2026, Regular Meeting.

Motion/Second: Crane/Orozco to approve Minutes of February 18, 2026, a regular meeting, as submitted. Motion carried by the following roll call votes: AYES: Crane, Rodin, Criss, Orozco, and Sher. NOES: None. ABSENT: None. ABSTAIN: None.

7. RIGHT TO APPEAL DECISION

8. CONSENT CALENDAR
a. Adoption of Resolution (2026-08) Making the Recommendation to the Ukiah Valley Basin Groundwater Sustainability Agency (UVBGSA) to Appoint Jared Walker as the City of Ukiah Representative to its Technical Advisory Committee (TAC) – City Clerk.

City Council Minutes for March 4, 2026, Continued:

b. Consideration of Adoption of Resolution (2026-09) Appointing Aubrey Sabre to the Public Spaces Commission – City Clerk.
c. Authorization for the City Manager to Negotiate and Execute an Agreement (2526-187) with the County of Mendocino (Mendocino County Public Health) for the Enforcement of State Tobacco Laws and Local Ordinances, Including the Statewide Flavor Ban, through Retailer Inspections and Enforcement Operations; and Approve Corresponding Budget Amendment(s) for Receipt of Anticipated Grant Funds in Support of These Activities - Community Development. d. Receive Report and Approval of Request to Postpone Replacement of the Ukiah Transfer Station Tipping Floor Until 2028 – Public Works.

Public Comment: Aubrey Sabre.

Motion/Second: Rodin/Crane to approve Consent Calendar Items 8a-8d, as submitted. Motion carried by the following roll call votes: AYES: Crane, Rodin, Criss, Orozco, and Sher. NOES: None.

ABSENT: None. ABSTAIN: None.

9. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
No public comments were received.

10. COUNCIL REPORTS
Presenters: Councilmember Rodin and Vice Mayor Orozco.

11. CITY MANAGER/CITY CLERK REPORTS
Presenters:
• Tayman Park Golf Group Anniversary – Sage Sangiacomo, City Manager. • North Oak Street Creek Barrier Update – Tim Eriksen, Public Works Director / City Engineer.
• Broadband Grant Construction– Shannon Riley, Deputy City Manager.

12. PUBLIC HEARINGS (5:30 PM)
a. Review and Introduction by Title Only of an Ordinance Adding a New Chapter 9 to Division 2 of the Ukiah City Code to Regulate Sidewalk Vending on Public Property and in the Public Right-of-Way.

Presenters: Jesse Davis, Chief Planning Manager and Craig Schlatter, Community Development Director.

PUBLIC HEARING OPENED AT 5:55 P.M.

No public comment was received.

PUBLIC HEARING CLOSED AT 5:55 P.M.

Motion/Second: Criss/Rodin to introduce an ordinance by title only. Motion carried by the following roll call votes: AYES: Crane, Rodin, Criss, Orozco, and Sher. NOES: None. ABSENT: None.

ABSTAIN: None.

City Clerk, Kristine Lawler, read the following ordinance title into the record:

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ADDING A NEW CHAPTER 9 TO DIVISION 2 OF THE CITY CODE TO REGULATE SIDEWALK VENDING ON PUBLIC PROPERTY AND IN THE PUBLIC RIGHT OF WAY.

City Council Minutes for March 4, 2026, Continued:

Council Consensus to move item number 6 on Page 1, under Section One. Findings, to the number 1 position.

Motion/Second: Criss/Rodin to introduce an ordinance adding a new Chapter 9 to Division 2 of the Ukiah City Code to regulate sidewalk vending on public property and in the public right-of-way with the amendments as discussed*. Motion carried by the following roll call votes: AYES: Crane, Rodin, Criss, Orozco, and Sher. NOES: None. ABSENT: None. ABSTAIN: None. *Amendments as discussed: Item F on Page 3, change text to read “…without authorization from the City in the vending permit.” (second amendment became consensus above) b. Consideration of Adoption of a Resolution Revising the Electric Rate Schedules for All Self-Generation Customers and Approval of the Utility's Avoided Cost Methodology.

Presenters: Cindy Sauers, Electric Utility Director and Diana Ramos, Electric Rate and Resource Analyst.

PUBLIC HEARING OPENED AT 6:36 P.M.

No public comment was received.

PUBLIC HEARING CLOSED AT 6:37 P.M.

Motion/Second: Crane/Criss to adopt resolution (2026-10) revising all Electric Rate Schedules for Self-Generation Customers, and approve the Utility's avoided cost methodology. Motion carried by the following roll call votes: AYES: Crane, Rodin, Criss, Orozco, and Sher. NOES: None. ABSENT:

None. ABSTAIN: None.

13. UNFINISHED BUSINESS
a. Receive Report and Consider Affirming Electric Utility's Administrative Policies on Distributed Generation.

Presenter: Cindy Sauers, Electric Utility Director.

Public Comment: Dale Harrison.

Council Consensus to direct Staff to do further research and development of new elements into the administrative policy and bring back to Council.
b. Approval of Annual Military Equipment Report from Ukiah Police Department, in Compliance with California Assembly Bill No. 481.

Presenter: Jason Chapman, Police Captain. Additional Present: Thomas Corning, Police Chief.

No public comment was received.

Motion/Second: Rodin/Criss to receive and approve the Annual Military Equipment Report from Ukiah Police Department, in compliance with California Assembly Bill No. 481. Motion carried by the following roll call votes: AYES: Crane, Rodin, Criss, Orozco, and Sher. NOES: None. ABSENT:

None. ABSTAIN: None.

Note: Captain Chapman and City Attorney Rapport stated that within 30 days a public meeting will be noticed and held for public comment pursuant to Section 772 of the statute [AB No. 481.]

City Council Minutes for March 4, 2026, Continued:

c. Adoption of the Ordinance to Implement a Street Trench Cut Fee in the City of Ukiah.

Presenter: Tim Eriksen, City Engineer/Public Works Director.

No public comment was received.

Motion/Second: Rodin/Criss to adopt the Ordinance to implement a Street Trench Cut Fee in the City of Ukiah. Motion carried by the following roll call votes: AYES: Rodin, Criss, Orozco, and Sher.

NOES: None. ABSENT: None. ABSTAIN: Crane.

ORDINANCE NO. 1265

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING TRENCH CUT

FEES FOR CERTAIN EXCAVATIONS WITHIN PAVED CITY STREETS

14. NEW BUSINESS
a. Receive Updates on City Council Committee and Ad Hoc Assignments and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad hoc(s).

Presenter: Sage Sangiacomo, City Manager.

Staff Comment: Tim Eriksen, Public Works Director.

Reports were received. Staff is recommending the elimination of the Trench cut ad hoc.

THE CITY COUNCIL ADJOURNED TO CLOSED SESSION AT 7:30 P.M.

15. CLOSED SESSION
a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (2 cases)
b. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Nui Rising Moon Trust v. City of Ukiah, et al.; Case No. 3:25-cv-08320 c. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200 d. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort, Inc v. City of Ukiah, et al.; Case No. 24-cv-07106-JSC e. Conference Involving a Joint Powers Agency (Inland Water and Power Commission) City representative on IWPC Board (Mari Rodin)
Discussion will concern: (Conference with Real Property Negotiators (Gov’t Code §54956.8) Property: PG&E Potter Valley Project;
Agency Negotiators: Scott Shapiro, Janet Pauli.

Negotiating Parties: IWPC and PG&E
Under Negotiation: Price and Terms
f. Conference with Labor Negotiator (54957.6)
Agency Designated Representative: Sage Sangiacomo, City Manager Employee Organizations: All bargaining units
Unrepresented Employee: Police Chief

City Council Minutes for March 4, 2026, Continued:

g. Public Employment (City Attorney)
(Cal. Gov. Code § 54957(b)(1))
No action reported.

16. ADJOURNMENT
There being no further business, the meeting adjourned at 8:15 p.m. ________________________________
Kristine Lawler, CMC
City Clerk

Agenda Item No: 8.a.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2022-1479

AGENDA SUMMARY REPORT
SUBJECT: Report of Disbursements for the Month of February 2026.

DEPARTMENT: Finance PREPARED BY: MaryJo Reynolds, AJ Johnson, Finance Services Specialist
PRESENTER: Consent Calendar
ATTACHMENTS:

1. February 2026 Summary of Disbursements

2. Account Codes for Reference

3. Object Codes for Reference

4. February 2026 Disbursements Detail
Summary: The Council will review and consider approval of the report of disbursements for the month of February 2026.

Background: Payments made during the month of February 2026 are summarized in the Report of Disbursements. Further details are supplied on the Schedule of Bills, representing the four (4) individual payment cycles within the month.

Accounts Payable Check Numbers (City & UVFA): 33066567-3066654; 3066655-3066744;3066745-3066838 ;3066839-3066968
Accounts Payable Wire Transfer: 166-169
Payroll Check Numbers: 519332-519423; 519424-519508
Payroll Manual Check Numbers: 519423
Direct Deposit Numbers: 143706-144093; 143094-144475
Manual Direct Deposit Numbers: NA
Void Check Numbers: 306614, 3063913, 3066710, 159, 160
Void Direct Deposit Numbers: 144250
Discussion: This report is submitted in accordance with Ukiah City Code Division 1, Chapter 7, Article 1.

Attachment #1: February 2026 Summary of Disbursements
Attachment #2: Account Codes for Reference
Attachment #3: Object Codes for Reference
Attachment #4: February 2026 Disbursement Detail

Recommended Action: Approve the report of disbursements for the month of February 2026.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
REVENUE: N/A GRANT: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: N/A
STRATEGIC PLAN (SP): N/A
GENERAL PLAN ELEMENTS (GP): N/A

Attachment 1
FUNDS:
100 General Fund $114,404.87 700 Sanitary Disposal Site Fund $3,959.32 101 GF-(Sub-Fund) Visit Ukiah $185.21 701 Landfill Corrective Fund 105 GF-(Sub-Fund) Fire Authority $40,725.84 702 Disposal Closure Reserve Fund 106 USDA Forest Serv CWDG $25,731.64 704 Post Closure Fund - Solid Waste 110 Special General Fund 710 Ambulance Services Fund $87,235.33 120 Streets Capital Improvement 720 Golf Fund $3,427.19 130 Gov'tl Debt SVC/Reserve Fund 730 Confernence Center Fund $6,038.40 131 Debt Service Reserve 2022 LRB 750 Visit Ukiah
200 City Adminstrative Services $75,515.64 777 Airport Fund $62,558.63 201 Worker's Comp Fund $5,134.56 778 Airport Capital Improvement Fund 202 Liability Fund 779 Special Aviation Fund $14,374.15 203 Garage Fund $17,128.73 800 Electric Fund $791,436.27 204 Purchasing Fund $4,209.16 801 Electric Capital Reserve Fund $337.50 205 Billing & Collections Fund $11,640.08 803 Lake Mendocino Bond Reserve $524,565.00 206 Public Safety Dispatch Fund $3,779.17 805 Street Lighting Fund $9,073.95 207 Payroll Posting Fund $4,938.37 806 Public Benefits Fund $5,437.30 208 Building Maintenance/Corp Yard Fund $169,248.27 807 Cap and Trade 209 IT Fund $104,945.25 808 Electric Low Carbon Fuel STDS 220 Equipment Reserve Fund 820 Water Fund $183,657.06
249 City Housing Bond Proceeds 821 Water Capital Reserve Fund 250 Special Revenue Fund 822 Water Capital Improvement Fund $131,794.14 251 Special Projects Reserve Fund $33,560.23 830 Recycled Water Fund $11,873.60 252 Streets/ROW Improvement Fund $341,686.62 840 City/District Sewer Fund $141,450.71 253 CITY PROP 172 841 Sewer Contruction Fund $999,264.54 300 Park Development Fund $12,470.00 843 Sewer Capital Fund 301 Anton Stadium Fund 900 Special Deposit Trust $16,017.50 302 Observatory Park Fund 901 General Service (Accts Recv) $808.16 303 Playground & Park Amenities Fund 902 U.S.W. Billing & Collection $66,086.11 304 Swimming Pool Fund 903 Public Safety - AB 109 $0.00 305 Riverside Park Fund 905 Federal Emergency Shelter Grant 306 Skate Park Fund 905 Mendocino Emergency Service Authority 308 Opioid Settlement Fund 911 Russian River Watershed Association $41,319.52 310 Museum Grants $0.00 915 UVFD
311 Alex Rorbaugh Recreation Center Fund $5,383.17 916 UVFD PROP 172 312 Downtown Business Improvement Fund $2,022.78 917 UVFD Measure B 313 LMIHF Housing Asset Fund 918 UVFD Mitigation
314 Winter Special Events $38,420.13 920 MSWMA Operations $28,526.82 315 Advanced Planning Fund 922 Millview County Water District $58,425.32 316 SPECIAL RECREATION EVENTS 923 Milview Capital Charge 500 2106 Gas Tax Fund $334,638.66 927 Redwood Valley Water District $118,257.29 501 2107 Gas Tax Fund 932 Willow Water District Operations $30,170.88 503 2105 Gas Tax Fund 937 Calpella Water District Operations $6,710.22 505 Signalization Fund 937 Calpella Sewer $330.21
506 Bridge Fund 940 Sanitation District Special Fund
507 1998 STIP Augmentation Fund 942 Rate Stabilization - UVSD Fund 508 SB325 Reimbursement Fund 943 Sanitation District Capital Improvement Fund 509 S.T.P. Fund 945 River Estate Operations $5,701.12
510 Trans-Traffic Congest Relief Fund 947 Hopland Water Operations $9,490.16 511 Rail Trail Fund $318,682.82 950 Hopland Sewer Operations $7,264.85 600 Community Development Block Grant 952 REDIP Sewer Enterprise Fund 601 EDBG 94-333 Revolving Loan 960 Community Redevelopment Agency 602 Community Development Fund 961 RDA Housing Pass-Through 603 08-HOME-4688 962 Redevelopment Housing Fund
604 CDBG Grant 09-STBG-6417 963 Housing Debt
605 11-HOME-7654 Fund $0.00 964 RDA Capital Pass-Through 606 CDBG Grant 10-EDEF-7261 965 Redevelopment Capital Improvement Fund 607 Prop 84 Grant Fund 966 Redevelopment Debt Service
609 13-CDBG-8940 967 Housing Bond Proceeds
610 City RDA Projects Fund 968 Non-Housing Bond Proceeds 613 Home Program Activities 969 RDA Obligation Retirement Fund 620 CASP Train 844/944 Sewer Capital Projects Fund
630 Asset Seizure Fund $420.00
631 Asset Seizure Fund (Drug/Alcohol)
633 H & S Education 11489(B)(2)(A1)
634 Federal Asset Seizure Grants Retainage Withheld $48,589.16 635 SUP Law Enforcement Service Fund 611 CDBG 16-CDBG-11147 636 CBTHP Officer
637 Local Law Enforcement Block Grant
638 Asset Forfeiture 11470.2 H & S
639 Special Revenue - Police
640 Parking District Fund $609.33
670 Federal American Rescue Fund
691 Museum Fund
695 Transfer Station Fund
696 Solid Waste Mitigation Fund $709.82
PAYROLL CHECK NUMBERS: 519332-519423
DIRECT DEPOSIT NUMBERS: 143706-144093
PAYROLL PERIOD: 01/18/2026-01/31/2026
PAYROLL CHECK NUMBERS: 519424-519508
DIRECT DEPOSIT NUMBERS: 144094-144475
PAYROLL PERIOD: 02/01/26-02/14/26
PAYROLL CHECK NUMBERS: TOTAL DEMAND PAYMENTS- A/P CHECKS $5,080,370.76 DIRECT DEPOST NUMBERS: TOTAL DEMAND PAYMENTS- EFT's $0.00 PAYROLL PERIOD: TOTAL PAYROLL CHECKS & DIRECT DEPOSITS $1,752,756.56 TOTAL PAYROLL EFT's (TAXES, PERS, VENDORS) $934,334.53
VOID CHECK NUMBERS: * vendor name( if applicable)
3066614, 3063913, 3066710, 144250
159, 160
519423
WIRE TRANSFER NUMBERS:
166, 167, 168, 169 TOTAL PAYMENTS $7,767,461.85

CERTIFICATION OF CITY CLERK
This register of Payroll and Demand Payments was duly approved by the City Council on ____________________.

City Clerk

APPROVAL OF CITY MANAGER
I have examined this Register and approve same. CERTIFICATION OF DIRECTOR OF FINANCE I have audited this Register and approve for accuracy
and available funds.
____________________________________________ ________________________________________________ City Manager Director of Finance
MANUAL CHECK NUMBERS:

CITY OF UKIAH

REPORT OF DISBURSEMENTS

REGISTER OF PAYROLL AND DEMAND PAYMENTS
FOR THE MONTH OF FEBRUARY 2026

Account Code Summary Attachment 2
10000000 GENERAL FUND 20012300 COMMUNITY OUTREACH/PUBLIC INFO 10017200 SUCCESSOR AGENCY 20012500 CITY CLERK
10020000 POLICE - GEN FUND 20012600 ECONOMIC DEVELOPMENT 10020210 POLICE PATROL 20012800 EMERGENCY MANAGEMENT
10020214 POLICE VOLUNTEERS 20013540 ACCOUNTS PAYABLE
10020216 COPS GRANT 20016300 PAYROLL
10020217 POLICE ANIMAL CONTROL 20013400 ACCOUNTING
10020218 POLICE CSO 20013401 BUDGET MANAGEMENT
10020220 CODE ENFORCEMENT 20014000 CITY ATTORNEY
10020224 MAJOR CRIMES TASK FORCE 20015100 CITY TREASURER 10021210 CITY FIRE 20016100 HUMAN RESOURCES
10022100 PARKS 20023510 HOUSING GRANTS
10022300 AQUATICS 20023520 NON-HOUSING GRANTS
10022700 MUSEUM - GEN FUND 20100000 WORKER'S COMP FUND
10022810 RECREATION ADMINISTRATION 20116220 WORKERS COMPENSATION 10022821 ADULT BASKETBALL 20200000 LIABILITY FUND
10022822 ADULT SOFTBALL 20216200 RISK MANAGEMENT
10022824 CO-ED VOLLEYBALL 20300000 GARAGE FUND
10022831 YOUTH BASKETBALL 20324100 GARAGE
10022832 YOUTH SOFTBALL 20324110 FLEET MAINTENANCE
10022840 DAY CAMP 20400000 PURCHASING FUND
10022850 CLASSES & CLINICS 20413500 PURCHASING
10022860 SPECIAL ACTIVITIES 20413510 CAPITAL ASSET MANAGEMENT 10022900 COMM SVCS SPECIAL SERVICES 20413520 GRANTS AND SPECIAL PROJECTS 10023100 PLANNING SERVICES 20414000 LEGAL SERVICES/EXPENSES 10023110 CURRENT PLANNING 20500000 BILLING AND COLLECTION FUND 10023300 BUILDING INSPECTION 20513300 UTILITY BILLING
10023320 BUILDING INSPECTION 20513380 METERING-ELECTRIC 10023411 CDBG GENERAL ADMIN 20513382 METERING-WATER
10024200 ENGINEERING/STREETS 20600000 PUBLIC SAFETY DISPATCH FUND 10024210 ENGINEERING 20620231 POLICE UKIAH DISPATCH
10024214 TRAFFIC SIGNAL OPERATIONS 20620232 POLICE FT BRAGG DISPATCH 10024224 STORM WATER 20700000 PAYROLL POSTING FUND
10024310 CORP YARD MAINTENANCE 20800000 BUILDING & MAINTENANCE 10024620 STREETS 20822500 BUILDING & MAINTENANCE
10100000 GF- (SUB-FUND) VISIT UKIAH 20824300 BLDG MAINT CORP YARD 10112700 GF-(SUB-FUND) VISIT UKIAH 20900000 IT FUND
10500000 MEASURE S GENERAL FUND 20913900 INFORMATION TECHNOLOGY 10521210 FIRE AUTHORITY 22000000 FIXED ASSET FUND
10600000 USDA FOREST SERV CWDG 25100000 SPECIAL PROJECTS RESERVE FUND 12000000 STREET REHABILITATION 25200000 STREETS/ROW IMPROVEMENT FUND 12024200 PUBLIC WORKS ENGINEERING 25224220 STREETS/ROW IMPROVEMENT FUND 13000000 GOV'TL DEBT SVC/RESERVE FUND 25300000 PROP 172 FUND 13100000 DEBT SERVICE RESERVE 2022 LRB 25321210 CITY FIRE 20000000 CITY ADMINISTRATIVE SERVICES 30000000 PARK DEVELOPMENT FEES FUND 20010000 CITY COUNCIL 30022200 PARK DEVELOPMENT
20012100 CITY MANAGER 30100000 ANTON STADIUM FUND

Account Code Summary Attachment 2
20012200 ADMINISTRATIVE SUPPORT 63500000 SUP.LAW ENFORCE.SVC.FD(SLESF) 30200000 OBSERVATORY PARK FUND 63520210 SLESF
30300000 PLAYGROUND & PARK AMENITIES FU 63600000 CBTHP OFFICER 30322230 PLAYGROUND AND PARK AMENITIES 63620210 CBTHP OFFICER 30400000 SWIMMING POOL FUND 63800000 ASSET FORFEITURE 11470.2 H&S F 30522250 RIVERSIDE PARK 63820210 ASSET FORFEITURE 11470 EXPENDI 30600000 SKATE PARK FUND 63900000 SPECIAL REVENUE POLICE 30700000 SOFTBALL COMPLEX FUND 64000000 PKG. DIST. #1 OPER & MAINT FUN 30800000 OPIOD SETTLEMENT FUND 64012600 ECONOMIC DEVELOPMENT 31100000 ARRC GENERAL OPERATING FUND 64020213 POLICE PARKING ENFORCEMENT 31122000 ARRC 67000000 FEDERAL AMERICAN RESCUE FUNDS
31200000 DOWNTOWN BUSINESS IMPROVEMENT 69500000 TRANSFER STATION 31212600 ECONOMIC DEVELOPMENT 69624000 SOLID WASTE MITIGATION FUND 31300000 LMIHF HOUSING ASSET FUND 70000000 SANITARY DISPOSAL SITE FUND 31323400 HOUSING 70024500 LANDFILL 700
31323431 LMI GENERAL ADMIN 70124500 LANDFILL CORRECTIVE 31500000 ADVANCED PLANNING FUND 70200000 DISPOSAL CLOSURE RESERVE FUND 31523100 COMMUNITY PLANNING 70224500 LANDFILL CLOSURE
31600000 SPECIAL RECREATION EVENTS 70400000 POST CLOSURE FUND-SOLID WASTE 31622861 SPECIAL RECREATION EVENTS 71000000 AMBULANCE SERVICES FUND 50000000 GAS TAX FUND 71021100 AMBULANCE SERVICES
50024214 TRAFFIC SIGNAL OPERATIONS 72000000 GOLF FUND
50500000 SIGNALIZATION FUND 72022400 GOLF
50800000 SB325 REIMBURSEMENT FUND 73000000 CONFERENCE CENTER FUND 50824210 SB325 ENGINEERING 73022600 CONFERENCE CENTER
50900000 S.T.P. 77700000 AIRPORT FUND
50924210 STP ENGINEERING 77714000 CITY ATTORNEY
51100000 RAIL TRAIL FUND 77725200 AIRPORT OPERATIONS
51124210 Rail Trail 77800000 AIRPORT CAPITAL IMPROVEMENT FU 60000000 COMM. DEVELOPMT. BLOCK GRANT F 77825200 AIRPORT CAPITAL 60023411 CDBG GENERAL ADMIN 77900000 SPECIAL AVIATION FUND 60023412 CDBG ACTIVITY DELIVERY 77925200 AIRPORT SPECIAL 61100000 CDBG 16-CDBG-11147 80000000 ELECTRIC FUND
61112600 CDBG ECONOMIC DEVELOPMENT 80014000 CITY ATTORNEY 61123410 16-CDBG-11147 80026110 ELECTRIC OVERHEAD
61123411 CDBG GENERAL ADMIN 80026120 ELECTRIC UNDERGROUND 61200000 FUND 612 UNASSIGNED 80026200 TELEMETRY & CALIBRATION 61223400 HOME CDD HOUSING 80026210 SUBSTATION
61223422 HOME ACTIVITY DELIVERY 80026220 HYDROELECTRIC PLANT 61323400 HOME HOUSING ACTIVITIES 80026400 ELECTRIC ADMINISTRATION 61323421 HOME GENERAL ADMIN 80026440 POWER PURCHASES
62000000 CASP CERTIF & TRAINING 80100000 ELECTRIC CAPITAL RESERVE FUND 62023320 CASP CERTIF & TRAINING 80126100 ELECTRIC CIP
63000000 ASSET SEIZURE FUND 80126220 HYDROELECTRIC PLANT 63020210 ASSET SEIZURE EXPENDITURE 80500000 STREET LIGHTING FUND 63300000 H&S EDUCATION 11489(B)(2)(A1) 80526150 STREET LIGHTING 63320210 H&S ASSET SEIZURE EXPENDITURE 80600000 PUBLIC BENEFITS CHARGES FUND

Account Code Summary Attachment 2
63400000 FEDERAL ASSET SEIZURE GRANTS F
63420250 FED ASSET SEIZURE EXPENDITURE
80626450 PUBLIC BENEFITS
80700000 ELECTRIC CAP AND TRADE FUND
80800000 ELECTRIC LOW CARBON FUEL STDS
80826100 ELECTRIC LOW CARBON FUEL STDS
82000000 WATER FUND
82027110 WATER
82027111 PROD OPERATIONS & MAINTENANCE
82027114 DISTRIB OPERATIONS & MAINT
82100000 WATER CAPITAL RESERVE FUND
82200000 WATER CONNECTION FEE FUND
82227113 WATER DISTRIBUTION CAPITAL
83000000 RECYCLED WATER
83027330 RECYCLED WATER
84000000 CITY/DIST. SEWER OPERATING FUN
84027220 WASTE WATER
84027221 CITY WASTE O & M
84027225 WASTE TREATMENT O & M
84100000 SEWER BOND DEBT SERVICE FUND
84127226 WASTEWATER TREATMENT CAPITAL
84200000 RATE STABILIZATION-CITY FUND
84300000 CONNECTION FEE SEWER FUND (CAP
84400000 CITY SEWER CAPITAL PROJECTS FU
84427221 CITY WASTEWATER O&M 844
84427222 CITY WASTE CAPITAL
90000000 SPECIAL DEPOSIT TRUST FUND
91500000 UKIAH VALLEY FIRE DEPARTMENT
91521400 UVFD FIRE ADMINISTRATION
91600000 UVFD PROP 172
91621400 UVFD PROP 172
91700000 UVFD MEASURE B UNASSIGNED
91721400 UVFD FIRE
91800000 UVFD MITIGATION FEES
91821400 UVFD MITIGATION
92000000 MSWMA OPERATIONS
92200000 MILLVIEW COUNTY WATER DISTRICT
92300000 MILLVIEW CAPITAL CHARGE
92700000 REDWOOD VALLEY WATER DISTRICT
93700000 CALPELLA WATER DISTRICT OPERATION
93800000 CALPELLA SEWER
94500000 RIVER ESTATES OPERATIONS
94700000 HOPLAND WATER OPERATIONS
95000000 HOPLAND SEWER OPERATIONS
96900000 REDEVELOPMENT OBLIGATION RETIR
96917200 SUCCESSOR AGENCY
96995669 969 - RDA OBLIGATION RETIREMEN

51211 PERS UNFUNDED LIABILITY 54101 POSTAGE
51220 INSURANCE 54102 SMALL TOOLS
51230 WORKERS COMP 54103 LAB SUPPLIES
51240 MEDICARE 54106 SPECIALTY SUPPLIES
51260 FICA 54107 EMS SUPPLIES
51270 UNIFORM ALLOWANCE 54120 PW - SPECIAL SUPPLIES
51290 CELL PHONE STIPEND 54121 PW - ASPHALT CONCRETE
52100 CONTRACTUAL SERVICES 54122 PW - AGGREGATE BASE
52110 AMBULANCE BILLING 54124 PW - CONCRETE/SUPPLIES
52111 DEFIBRILLATOR MAINTENANCE 54125 PW - TRAFFIC PAINT 52112 M. S. OVERSIGHT 54126 PW-PREMARKS
52113 PLANNING STUDIES 54127 PW - SIGN POSTS/SHEETING
52114 COMPLIANCE STUDIES 54128 PW - COLD PATCH MATERIAL 52130 EDUCATIONAL & MARKETING MATL'S 54129 PW - TACK OIL 52131 ASSISTANCE TO SENIORS 54130 PW - SAFETY
52133 MONTHLY DISCOUNT PROGRAM 54131 PW - BARRICADES & CONES 52134 GENERAL ADMIN 54161 BACKGROUND & PHYSICALS
52135 ENERGY CONSERVATION PROGRAM 54162 ADVERTISING
52137 PUBLIC BENEFITS PROGRAM MGMT 54163 INTERVIEW SUPPLIES 52139 RESEARCH DEVELOPMENT & DEMO 54165 NEW EMPLOYEE FINGERPRINT 52150 LEGAL SERVICES/EXPENSES 54166 DOT TESTING PROGRAM 52151 EMPLOYEE BENEFIT ADMIN FEES 54167 EMPLOYEE DEVELOPMENT 52155 ACTIVITY DELIVERY 54169 LIVESCAN
52180 SECURITY SERVICES 54201 PRISONER EXPENSE
52181 VOLUNTEER EXPENSES 54202 MAJOR CRIME INVESTIGATIONS 52301 PROPERTY TAX ADMIN FEE 54203 RECRUITMENT
52304 LAFCO FEES AND PROP TAX EXP 54320 SOFTWARE
52500 TRUSTEE FEES 54330 COMPUTER AND TECHNOLOGY
52510 ADVERTISING & PROMOTION 54500 EQUIP RENTS AND LEASES 52515 ADVERTISING & PUBLICATION 54700 FINES & PENALTIES 52521 LIABILITY INSURANCE PREMIUM 55100 TELEPHONE
52522 LIABILITY & PROPERTY DEDUCT 55200 PG&E
52524 PROPERTY INSURANCE PREMIUM 55210 UTILITIES
52525 WORKER'S COMP. EXPENSE 56100 VEHICLE & EQUIPMENT MAINT. & R 52526 REMIF ASSESSMENT PAYMENTS 56112 EQUIPMENT PARTS FOR RESALE 52527 A.D.P. PREMIUM & DEDUCTIBLE 56120 EQUIPMENT MAINTENANCE & REPAIR 52528 LIABILITY INSURANCE 56125 LAB EQUIP-REPAIR & MAINT. 52529 EARTHQUAKE & FLOOD (DIC) 56130 EXTERNAL SERVICES
52532 SAFETY & TRAINING SUPPORT 56210 FUEL & FLUIDS
52533 UVFA RETIREE HEALTH INS 56300 BUILDING MAINT. & REPAIR 52600 RENT 56410 EQUIPMENT RENTAL - PRIVATE
52601 DATA STORAGE & CONNECTIVITY 56504 FACILITY MAINTENANCE & REPAIR 52602 RENTAL OF CITY PROPERTY 56600 AIRFIELD MAINTENANCE & REPAIR 52841 SUCCESSOR AGENCY ADMIN 57100 LEARNING AND DEVELOPMENT 53000 LAWSUIT SETTLEMENT 57101 CONF & TRAINING-AQUATICS 54100 SUPPLIES 57300 MEMBERSHIPS & SUBSCRIPTIONS
Object Code Summary Attachment 3

58101 NCPA PLANT GENERATION
58102 NCPA POWER PURCHASES
58103 NCPA TRANSMISSION
58104 NCPA MANAGEMENT SERVICES
58105 NCPA THIRD PARTY SALES
58202 CHEMICALS
58401 AVIATION FUEL
58410 GARAGE LUBRICANTS & PARTS
58510 REIMBURSABLE JOBS
59100 PROPERTY TAXES PAID
59101 FEES
59102 FRANCHISE FEES
59105 CONTRIBUTIONS TO OTHER AGENCY
59106 SENIOR TRASH SUBSIDY
59108 BANK FEES
59400 OTHER EXPENSES
59500 LOANS ISSUED
59502 SCHOLARSHIPS
61200 PURCHASING ALLOCATION
61300 BILLING & COLLECTION ALLOCATIO
61410 RENT ALLOCATION
61420 BUILDING MAINTENANCE ALLOCATIO
61422 IT ALLOCATION
61430 CORP YARD ALLOCATION
61500 INSURANCE ALLOCATION
61600 GARAGE ALLOCATION
61700 DISPATCH
62100 ADMIN & OVERHEAD ALLOCATION
63000 INTERFUND SERVICES USED
70101 LOAN PAYMENTS MADE
70102 BOND INTEREST EXPENSE
70103 LOAN INTEREST
70201 LOAN PRINCIPAL PAYMENTS
70202 BOND PRINCIPAL PAYMENTS
74500 CAPITAL LEASE PRINCIPAL
74501 CAPITAL LEASE INTEREST
80100 MACHINERY & EQUIPMENT
80210 LAND ACQUISITION
80220 BUILDING IMPROVEMENTS
80230 INFRASTRUCTURE
90100 LOAN PROCEEDS
90101 LOAN PAYMENT RECEIVED

Attachment 4

Agenda Item No: 8.b.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-461

AGENDA SUMMARY REPORT
SUBJECT: Adoption of an Ordinance Adding a New Chapter 9 to Division 2 of the Ukiah City Code to Regulate Sidewalk Vending on Public Property and in the Public Right-of-Way.

DEPARTMENT: Community
Development PREPARED BY: Jesse Davis, Chief Planning Manager, Darcy Vaughn, Assistant City Attorney PRESENTER:

Jesse Davis, AICP/Chief Planning Manager;
Craig Schlatter, AICP/Community Development
Director.

ATTACHMENTS:

1. Public Materials Example - Sidewalk Vendors

2. Proposed Ordinance Modifications (Post-City Council Introduction)

3. Finalized Ordinance
Summary: Council will consider adopting an ordinance adding a new Chapter 9 to Division 2 of the Ukiah City Code to regulate sidewalk vending on public property and in the public right-of-way.

Background: In recent years, the City of Ukiah has experienced a steady increase in sidewalk vending activity in commercial corridors, at key intersections, within residential neighborhoods, and during annual City events such as Sunday Concerts in the Park and PumpkinFest. This increase has underscored the need for a clear, enforceable framework that balances public health and safety, accessibility, appropriate use of public property, and efficient licensing procedures. It also requires coordinated enforcement between the Ukiah Police Department and the Community Development Department’s Code Enforcement Division.

In June 2025, Staff convened an interdepartmental working group that included the Police Chief, Chief Building Official, Community Development Director, Project and Grant Administrator from the City Manager’s Office, Community Services Supervisor, and representatives from the City Attorney’s Office. The group was tasked with developing an ordinance consistent with Senate Bill 946, the Safe Sidewalk Vending Act, which authorizes local governments to adopt objective time, place, and manner regulations directly tied to health, safety, and welfare concerns.

At its regular meeting on November 19, 2025, the City Council provided direction and feedback on the draft ordinance. Individual Councilmembers requested clarification of enforcement provisions, definitions, and fee structures. Clarifications were also sought regarding stronger ADA compliance language, ordinance intent, and clearer standards related to obstructions, power sources, sanitation, and fines. Legal compliance with state requirements, including SB 1383 and applicable Government Code provisions, was also reviewed and discussed at the meeting. The original ordinance marked up to include Council input and updates required for compliance with state law is provided as Attachment 1.

Since November, Staff has incorporated Council’s direction and revised the draft ordinance to remove ambiguity and improve enforceability. Additional efforts included:
• Development of a mobile (sidewalk) vendor permit questionnaire within the existing Business License module (prepared for activation);

• Establishment of an internal review and inspection process to verify required health permits in coordination with Mendocino County;
• Evaluation of code enforcement logistics and interdepartmental coordination; and • Analysis of permit fee structures in consultation with Community Development – Business License Division staff.

During final preparation of the ordinance, Staff addressed remaining administrative details, including the sidewalk vendor permit application and the associated fee. Staff determined that a zero-fee designation for sidewalk vending is both preferable and appropriate, as the opportunity for meaningful cost recovery is negligible. Under the proposed fee structure, sidewalk vending authorization would be incorporated into the existing business license process, which remains a requirement to operate within City-limits. This approach simplifies administration, reduces barriers to compliance, and aligns with the intent of SB 946. It also allows for future use as a permit type to facilitate and regulate vendors on private property for recurring or temporary events.

As part of the process, the business license application will include an additional question asking whether the license will be used for public sidewalk vending. This will help confirm compliance with the ordinance’s regulations and restrictions and ensure that any required health permits are submitted for food-related vendors. While “Street Vendors” could plausibly fall under several business categories, most would typically be processed under Category E. For vendors reporting gross receipts of less than $60,000, the cost of the initial business license would be $260, with a $40 annual renewal fee. A vendor reporting $120,000 in gross receipts would pay $275 initially, with a $65 annual renewal fee.

Since November, Staff have met multiple times with County representatives and Code Enforcement personnel to clarify roles, streamline communication, and coordinate enforcement. These meetings have strengthened inter-agency coordination and improved clarity regarding responsibilities between the City and the County.

Topics included Environmental Health permit notifications, evening or after-hours mobile food vendor enforcement, and the development of training and educational materials.

As requested by Council in November, Staff also evaluated options for public education and vendor training. In coordination with the County Environmental Health, Staff reviewed examples from other jurisdictions across the state that County staff deemed effective. The samples included in Attachment 1 reflect the most effective types of digital and printed materials and will serve as the foundation for developing Mendocino County/City of Ukiah specific materials.

While Attachment 1 includes samples from other jurisdictions, some of which reference food trucks, those examples are not intended to reflect the specific content of this ordinance. Instead, they are provided to illustrate the responsibilities typically assigned to County Environmental Health agencies. As discussed with Mendocino County Environmental Health staff, the authority to facilitate food sales begins with County oversight and permitting. That process occurs prior to any City-level regulation or business licensing. For newly created materials, City staff intend to focus on connecting applicants with the County for food and health-specific questions.

At their regular meeting on March 4, 2026, the City Council reviewed the introduction of the ordinance and voted unanimously to advance the item for review and adoption at their next regular meeting on March 18, 2026. In preparation for adoption, two minor revisions were incorporated: a reordering of the provisions related to the intent of the ordinance, and clarifying language pertaining to the restrictions imposed by the Vending Permit. The modifications are reflected in Attachment 2, and a finalized copy of the ordinance is provided in Attachment 3 for the Council's review and adoption.

Discussion: In drafting this Ordinance, Staff intentionally avoided restrictions and regulations prohibited by SB 946, including regulations based on economic competition, community preference, or generalized neighborhood bans on sidewalk vending. Instead, operational conditions are narrowly tailored to ensure legal compliance while maintaining safe and accessible public spaces.

It is important to note that this proposed ordinance relates to street vendors in the public right-of-way, and does not address considerations related to private property, food trucks or City-sponsored events, outside of enforcement considerations.

This Ordinance establishes operational standards and location restrictions to govern vending activities that take place on public sidewalks, pedestrian paths, and other components of the public right-of-way. These rules apply uniformly across the City and are aligned with state law, specifically Government Code Sections 51036 to 51039 (SB 946).

The Ordinance is applicable to all individuals engaged in the sale of goods or food items from non-permanent setups, including roaming and stationary sidewalk vendors. It mandates that vendors obtain and display a City-issued sidewalk vending permit and business license and, where applicable, a Mendocino County Health Permit and a California Seller's Permit. The Ordinance also holds vendors accountable for maintaining public health and safety standards, complying with Americans with Disabilities Act accessibility requirements, and avoiding obstructions to pedestrian or vehicular traffic. Key operational limitations include prohibiting vending near fire hydrants, driveways, emergency exits, transit stops, schools during operational hours, and at or near special events or certified farmers' markets without appropriate authorization to participate in the events.

The primary intent behind this Ordinance is to comply with SB 946 while striking a balance between allowing economic opportunities for small vendors and protecting public spaces, ensuring that vending does not compromise safety, accessibility, public health, or effective transportation corridors. It also enables effective enforcement by outlining a penalty structure for violations, establishing a permit revocation process, and providing for appeals for vending permits and licenses. This regulatory approach provides the City with the tools to manage sidewalk vending in a manner that supports economic inclusion while preserving public resources and quality of life.

Having been introduced by title only at the regular meeting of the Ukiah City Council on March 4, 2026, the ordinance adding Chapter 9 to Division 2 of the Ukiah City Code to regulate sidewalk vending on public property and in the public right-of-way is prepared for adoption. The Council finds that this ordinance is consistent with the requirements of California Business and Professions Code Section 51038 and advances the public health, safety, and welfare by establishing a clear, fair, and enforceable local framework for sidewalk vending within the City of Ukiah.

Accordingly, Planning Division staff recommend that the City Council adopt an ordinance adding a new Chapter 9 to Division 2 of the Ukiah City Code to regulate sidewalk vending on public property and in the public right-of-way.

Recommended Action: Adopt an ordinance adding a new Chapter 9 to Division 2 of the Ukiah City Code to regulate sidewalk vending on public property and in the public right-of-way.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Community Services Department; Community Development Department Code Enforcement Division; Mendocino County Environmental Health (Land Use Division) STRATEGIC PLAN (SP): SP 4A - Identify and remove barriers to economic development while leveraging economic opportunities.

GENERAL PLAN ELEMENTS (GP): Policy ED-1.1 - Interagency - Coordinate with local agencies, jurisdictions, and tribes; and other groups and organizations working to promote Ukiah’s economic development.

What type of food operation
do you have?
Nonmotorized and Unenclosed
Prepackaged food items
What do you plan to prepare and sell?
Open food with limited food preparation Open food preparation What do you plan to prepare and sell?
Prepackaged food items
Enclosed and Motorized or towed by motorized vehicle
Low risk
CMFO/Cart**
Low risk
MFF/Vehicle
Medium risk
CMFO/Cart **
Medium risk
MFF/Vehicle
High risk
MFF/Vehicle
High risk
CMFO/Cart **
NOT cooking
raw meat
Cooking
raw meat
Limited food
preparation
Prepackaged
non PHF
Permit may
not be
required*
Prepackaged
PHF
***Full food preparation includes:

Slicing and chopping of PHF
Thawing
Grinding raw ingredients or PHF Cooling of cooked PHF
Washing of foods
Cooking PHF for later use
Handling of any dairy or dairy products
*Contact us to discuss your requirements
I want to start a food vending operation,
what permit do I need?
**If a CMFO suits your needs, check out our CMFO Risk Flyer.

Full food
preparation***
For any questions, please contact Environmental Health Services at (800) 442-2283.

Plan check may be required for low risk operations.

Plan check is required for all medium and high risk operations.

Limited food preparation includes cutting fruit, steaming hot dogs, preparing coffee, shaved ice, etc. For a full definition for Limited Food Preparation, please see CalCode Ch. 2 113818 PHF: Potentially Hazardous Foods
CMFO: Compact Mobile Food Operation that conducts
limited food preparation
Motorized: Fully enclosed vehicles or fully enclosed trailers towed by a vehicle
NON PHF: Nonpotentially Hazardous Foods
Enclosed: The operator works inside of a truck or trailer Unenclosed: The operator is not inside the operation
Permit Types Permit Types
ATTACHMENT 1

Protect your health. Eat safe food!
No handwashing on-site
Poor hygiene
No refrigeration to keep food cold
Food cross-contamination
Vermin and insects
Lack of food safety training
Food from unknown sources
No restrooms
Food exposed and unprotected
No decal or Health Permit
Support your local permitted restaurants and mobile food vendors! Here is what to look for:

Health Permit: Health Permit Decal:

Decal #
Year Issued
Month Issued
Learn More
Report unsafe food vendors
Unsafe food can affect a person or an entire community, making them sick, possibly resulting in loss of work, hospitalization, or death.

Street vendors are an important part of our community, but eating food from an unpermitted vendor can put you and your family’s health at risk.

SANTA CRUZ COUNTY
Unpermitted Vendor Advisory
Know how to spot unsafe, unpermitted food vendors.

Shows valid
dates

ORDINANCE NO.X
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ADDING A NEW CHAPTER 9 TO DIVISION 2 OF THE CITY CODE TO REGULATE SIDEWALK VENDING ON PUBLIC PROPERTY AND IN THE PUBLIC RIGHT OF WAY.

The City Council of the City of Ukiah hereby ordains as follows:

SECTION ONE. FINDINGS

1. The City of Ukiah recognizes vending as a legitimate source of economic mobility. This Ordinance aims to reduce unnecessary barriers for small vendors, support low cost business entry, and create pathways for individuals to earn income in a regulated, orderly environment.

1.2. Unregulated sidewalk vending has the potential to create obstructions in the public right-ofway, endanger pedestrians, and impede access for emergency services, necessitating additional municipal oversight and enforcement.

2.3. Sidewalk vending involving food sales can introduce health and sanitation risks if not properly regulated. Requiring appropriate health permits and on-site trash disposal ensures the cleanliness and safety of public spaces.

3.4. Maintaining minimum clear path widths on sidewalks is essential for compliance with the Americans with Disabilities Act (ADA) and ensures that all individuals, including those with mobility challenges, have safe access to public walkways.

4.5. Restricting sidewalk vending in residential zones and near sensitive uses such as schools and emergency infrastructure protects the character and function of these areas.

5.6. The Ordinance preserves fair and equitable access to public space, ensuring that vending activities do not conflict with permitted events, farmers markets, or parades.

6.7. The City of Ukiah recognizes vending as a legitimate source of economic mobility. This Ordinance aims to reduce unnecessary barriers for small vendors, support low cost business entry, and create pathways for individuals to earn income in a regulated, orderly environment.

SECTION TWO.

Chapter 9 is hereby added to Division 2 of the Ukiah City Code and shall read as follows:

CHAPTER 9 SIDEWALK VENDING
§ 2750 PURPOSE AND INTENT
The purpose of this Chapter is to set forth specific regulations to govern the vending of various goods from locations which are not permanent and that are temporarily located in the public right of way. In addition, this Chapter is intended to protect against unsafe conditions and health, safety, or welfare concerns of the community that result from the operation of sidewalk vendors on public sidewalks or a pedestrian path, consistent with the provisions of Government Code §§ 51036—51039. The requirements set forth in this Chapter are intended to protect the public's health, safety, and welfare by ensuring that vendors on public property provide safe and sanitary conditions for consumers and ATTACHMENT 2

the general public, are adequately insured, and are properly licensed or permitted with the City and licensed with other agencies. If properly regulated, sidewalk vending can foster vibrant public spaces, promote a diverse and inclusive local economy, and create economic opportunities.

Nothing in the Chapter shall be construed to limit the City's ability to enforce, or remedies for enforcing, laws of general applicability or other provisions of this Code against sidewalk vendors, or to take any other enforcement actions against sidewalk vendors that are not prohibited by state or federal law, or which are allowed by this Code.

The provisions of this Chapter are not intended to apply to the permitting process and regulations for food vendors permitted at special events in the City. § 2751 DEFINITIONS
A. Any words or phrases not defined within this Chapter shall be defined as set forth in current dictionaries. If no dictionary defines a particular term, the City Community Development Director shall have the authority to define the term or equate it to a defined term that is similar in nature.

B. For purposes of this Chapter, the words and phrases set out herein shall have the following meanings:

CART means any pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, and includes a stationary cart or a roaming cart.

MENDOCINO COUNTY HEALTH PERMIT means any and all licenses, permits, certifications, and courses required and issued by the Mendocino County Environmental Health Services Division to vend food within the city in accordance with this Chapter.

PEDESTRIAN means any person who is afoot or who is using a means of conveyance propelled by human power other than a bicycle.

ROAMING SIDEWALK VENDOR has the same meaning as set forth in Government Code section 51036(b) and as may be amended from time to time, and includes a sidewalk vendor who moves from place to place and stops only to complete a transaction.

SIDEWALK means any paved surface in the public right-of-way provided for the use of pedestrians and includes pedestrian paths.

SIDEWALK VENDING means the sale of food or merchandise from a pushcart, stand, display, pedaldriven cart, wagon, showcase, rack, or other non-motorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path.

SIDEWALK VENDOR has the same meaning as set forth in Government Code section 51036(a) and as may be amended from time to time, and includes a person who sells food or merchandise from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path.

STATIONARY SIDEWALK VENDOR has the same meaning as set forth in Government Code section 51036(c) and as may be amended from time to time, and includes a sidewalk vendor who vends from a fixed location.

VEND OR VENDING means the sale of any goods, wares, merchandise, prepared, pre-packaged; or unprepared, unpackaged food or food stuff of any kind.

VENDING PERMIT means a permit issued by the Business Services Division of the City of Ukiah Community Development Department to undertake sidewalk vending within the city in accordance with this Chapter.
§ 2752 LICENSING AND PERMITS
All sidewalk vendors are required to obtain:

A. A Business License pursuant to Division 2, Chapter 1 of this Code.

B. A Vending Permit issued pursuant to this Chapter. Sidewalk vendors must comply with the terms and conditions set forth in the Vending Permit.

C. A Seller’s Permit issued by the California Department of Tax and Fee Administration and any additional licenses from state or local agencies to the extent required by law.

D. A Mendocino County health permit for food-related vending, if applicable. § 2753 OPERATIONAL REQUIREMENTS
A. Each cart used by a sidewalk vendor must display a valid Business License, Vending Permit, Seller’s Permit, and, if applicable, a Mendocino County Health Permit.

B. No stationary sidewalk vendor may operate in any residential zone.

C. In order to prevent obstructions of the public right-of-way, the total display area footprint of the cart, including the cart itself and any accompanying display, signage, or related items, shall not exceed a length of 72 inches, a width of 54 inches, or a height, including roof, awning, or canopy, of 78 inches. The area of any roof, awning, or canopy must not exceed the area footprint of the cart.

Any cords or hoses authorized for use in the conditions to the Vending Permit must not project beyond the area footprint of the cart unless otherwise authorized in the conditions to the Vending Permit.

D. In order to comply with the Americans with Disabilities Act (ADA) regulations and with the accessibility requirements set forth in the California Building Code, the total display area footprint of the cart must allow for 48 inches, or as the law updates, of clear width walking space of any sidewalk where the cart is located.

E. Sidewalk vendors may not set up tables, chairs, or other structures that obstruct the public right-of-way, unless otherwise authorized by the City in the conditions to the Vending Permit.

F. Sidewalk vendors may not access a City power source without authorization from the City in the conditions to the Vending Permit, nor a private power source without authorization from such private property owner or agent.

G. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall provide a trash receptacle for customers and must ensure proper disposal of customer and vendor trash. The trash receptacle must be large enough to accommodate customer trash without resort to existing trash receptacles located on any block for use by the general public. A sidewalk vendor may not dispose of customer trash in existing trash receptacles on sidewalks. Food Vendors must ensure organic waste is collected and diverted accordingly.

H. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall maintain a clean and trash-free area, including a sanitized and neat appearing cart, within a ten-foot radius around the vendor's cart during hours of operation and shall ensure that such area is clean and trash-free before relocating or closing.

I. In order to prevent damage to public property and prevent obstructions of the public right-ofway, no cart may be chained or fastened to any pole, sign, tree, or other object in the public right-ofway.

J. In order to preserve the safety of the public, and prevent misuse of carts, no cart may be left unattended at any time.

K. In order to preserve the safety of the public, to prevent misuse of carts, and to prevent obstructions of the public right-of-way, no cart may be stored, parked, or left overnight on any public street or right-of-way, or in any public park or other public property.

L. In order to preserve the safety of vehicular travelers, no sidewalk vendor may solicit business from or conduct business with persons in motor vehicles.

M. In order to preserve the safety of vehicular travelers and pedestrians, and to preserve public peace and welfare, no cart may be outfitted with any equipment, signage, or mechanism that endangers or detracts from the health, safety, or welfare of the public by causing an excessive distraction to motorists or interfering with nearby residences, business, or pedestrians including, but not limited to, sound amplification, flashing lights, smoke, steam, bubbles, gas-powered generators, or excessive fumes.

N. In order to preserve the safety of vehicular travelers and pedestrians, any cart operated before sunrise or after sunset, or in location with insufficient lighting, shall be equipped with sufficient lighting or reflectors to alert pedestrians and vehicular travelers to the presence of the cart.

O. In order to prevent obstructions of the public right-of-way, all signage related to the vending operation shall be affixed to the cart.

P. In order to prevent obstructions of the public right-of-way, all merchandise sold by a sidewalk vendor must be stored within that vendor’s cart or attached receptacle or other receptacle approved by the City.

Q. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall immediately clean up any food, grease, or other fluid or item related to their sidewalk vending

activities that are spilled or discharged. Disposal of trash, food, grease, or other materials to any storm drain, creek, or waterway is prohibited. Vendors shall not dump, drain, or discard any fouled, spoiled, or unused product, which includes draining ice coolers, drink containers, and/or miscellaneous containers on the ground.

R. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall comply with all applicable state, county, and city health and safety regulations and permitting and licensing requirements. In particular, if food is prepared and/or sold, sidewalk vendors must comply with the California Retail Food Code set forth at Part 7 of Division 104 of the California Health and Safety Code (commencing at Section 113700).

S. In order to preserve the safety of the public, all sidewalk vendors shall not use an open flame on or within any cart. Any sidewalk vendor using cooking equipment shall have a fire extinguisher.

Propane, natural gas, or butane cylinder tanks must be 20-gallon tanks or less, stored in an upright position during use and positioned in such a way to prevent falling, tipping, and tampering, be properly ventilated, and must contain a shut-off valve and a pressure regulator, having a hose of a type approved for use by the manufacturer with the equipment. § 2753 VENDING PERMITS
A. To apply for or renew a Vending Permit, the sidewalk vendor applicant must file an application with the Business Services Division of the Community Development Department, accompanied by an application or renewal fee in an amount established by resolution of the City Council. The application or renewal shall be in a form prescribed by the Director of the Community Development Department and shall contain the following:

1. Valid identification, such as a State of California driver's license or identification number, an individual taxpayer identification number, or a municipal identification number, or any other government-issued identification card.

2. The name, address, e-mail address, and telephone number of the sidewalk vendor.

3. Proposed hours and days of operation.

4. Whether the sidewalk vendor intends to operate a stationary vending cart or a roaming vending cart.

5. Proposed location of operation.
a. An application for placement of a stationary vending cart in a commercial or industrial area of the city must contain the proposed location, marked by major cross streets, and a photo or sketch of such location.
b. An application for a roaming vending cart in a residential area of the city must contain a sketch or description of the route the sidewalk vendor will travel. c. If a cart will be used, a description of the cart including dimensions.

6. The type of merchandise or food offered for sale or exchange.

7. Proof of a valid Business License issued pursuant to this Code.

8. A valid California Department of Tax and Fee Administration Seller’s Permit and any additional licenses from state or local agencies to the extent required by law.

9. Proof of a policy or policies of comprehensive general liability insurance, in an amount as approved by the City, against any injury, death, loss, or damage as a result of wrongful or negligent acts or omissions by the permittee, with an endorsement naming the City as an additional insured.

10. A Mendocino County health permit for food-related vending, if applicable.

11. A certificate of completion of a food handler course, if applicable.

12. A declaration that the information provided to the city is true and correct.

13. Any other information as may be required by the Administrator.

B. Vending Permits will expire one year after the date of issuance and will be subject to renewal.

C. A Vending Permit shall only permit the operation of one vending cart or other type of conveyance at any one time.

D. Vending Permits are not transferable.

E. In accordance with Government Code § 51038, the Vending Permit application and any personally identifiable information included in the application, as defined in Section 51038, will be confidential and will not be disclosed or made available for review and shall be exempt from disclosure under the California Public Records Act. In addition, the Vending Permit application shall not require disclosure of any categories of information prohibited by Government Code § 51038(c)(1)(D) or as may be amended.

F. The Director of Community Development may require inspection of the cart or other conveyance as a condition of Permit issuance.

G. If there is any prior history of violations under this chapter, the Director of Community Development may review any such violations in its review of renewal requests and consider those violations when imposing conditions on a renewal Permit.

H. The Director of Community Development or their designee may revoke a Vending Permit for a fourth or subsequent violation of this Chapter within a twenty-four-month period.

I. A person whose Vending Permit is revoked pursuant to this Chapter may not renew their Vending Permit for one year.

J. Persons who are denied Vending Permits or whose Vending Permits have been revoked pursuant to this Chapter may appeal by filing a written notice of appeal with the City’s Hearing Officer. The appeal must be filed with the Chief Code Enforcement Official within ten work days

after receipt of the notice of denial or revocation. The appeal hearing shall be conducted pursuant to the appeal hearing procedure set forth in Section 3456 of this Code for appeals to the Hearing Officer. The Hearing Officer shall hear and determine the final appeal and the decision of the Hearing Officer shall be final.
§ 2754 LOCATION LIMITATIONS
In order to ensure access to public rights-of-way by pedestrians and emergency personnel, and avoid interference with vehicular traffic, certified farmers' markets, swap meets, and City-permitted special events, sidewalk vendors shall not operate in the following areas of the public right-of-way:

A. Any area other than a public sidewalk or pedestrian path.

B. Within 15 feet of a fire hydrant, fire call box, or other emergency facility.

C. Within five feet of an entrance to or emergency exit of any building or business during the hours that the building or business is open to the public.

D. Within ten feet of the outer edge of a driveway or driveway apron.

E. Within ten feet of a transit stop.

F. Adjacent to any marked loading zone or bus zone.

G. Within five feet of a curb return.

H. Any location that would impede entering or exiting a parked vehicle.

I. Any location or pathway that impedes the flow of pedestrian traffic by reducing the clear space to less than four feet or impedes access to or the use of abutting property, including, but not limited to, residences and places of business.

J. Within 100 feet in any direction of the nearest vendor or concessionaire participating in a certified farmers' market or City-hosted community yard sale during the operating hours of the certified farmers' market or City-hosted community yard sale unless vendor has been issued a Vending Permit that authorizes them to vend as part of the certified farmers' market or City-hosted community yard sale.

K. Within 100 feet of a City-permitted special event including, but not limited to, parades, concerts, and street fairs, unless vendor has received a permit to vend as part of the event. For moving events, vending shall be prohibited within 100 feet of any portion of the approved event route. For stationary events, vending shall be prohibited within 100 feet of the parcel and/or site boundary for the location of the event.

L. Within 300 feet of the property line of any public or private school grounds between 7:00 a.m. and 6:00 p.m. on school days, and while the same is in use, including for afterschool childcare, enrichment classes and sports.

M. Upon or within any roadway, median strip, or dividing section.

N. Any public sidewalk location when the straight path would not allow for 48 inches, or as the law updates, of clear width walking space of any sidewalk to comply with the Americans with Disabilities Act (ADA) regulations and with the accessibility requirements set forth in the California Building Code.

O. Any public sidewalk where there is a 180 degree turn path for sidewalk ramps and corner curbs when the location would not allow for 42 inches approaching the turn, 48 inches at the turn, and 42 inches leaving the turn, or as the law updates, of clear width walking space of any sidewalk to comply with ADA regulations.

P. Stationary sidewalk vendors shall not vend within 100 feet of another stationary sidewalk vendor.

Q. Sidewalk vendors are prohibited from entering or encroaching onto private property while engaging in sidewalk vending activities.

R. No sidewalk vendor shall operate within 100 feet of any structure that is abandoned, vacant, declared hazardous, or posted with a notice of violation or subject to a building, fire, or safetyrelated permit restricting occupancy or access. § 2755 VENDING IN CITY PARKS
Sidewalk vendors vending in parks must comply with the following additional requirements:

A. No stationary sidewalk vendor may operate in a City-owned or City-operated park if the operator of the park has signed an agreement for concessions that exclusively permits the sale of food or merchandise by the concessionaire.

B. Sidewalk vendors shall stop vending upon the designated closing time of the park.

C. Vending is permitted between 8:00 am and sunset in parks where there is no designated closing time.
§ 2756 ENFORCEMENT AND PENALTIES
A. It shall be the duty of the Director of Community Development to enforce each and all of the provisions of this Chapter. The Director may delegate this authority to the Chief Code Enforcement Official. Every member of the Code Enforcement Division of the Community Development Department is directed to assist the Director and Official in the enforcement of this Chapter.

B. Unless otherwise provided, any violation of any of the provisions of this Chapter by a sidewalk vendor who has a valid sidewalk vending permit from the City shall be punishable by an administrative fine according to the following provisions:

1. An administrative fine of $100 for a first violation.

2. A second violation that occurs within one year of the first violation shall be punishable by an administrative fine of $200.

3. A third violation and each subsequent violation that occurs within one year of the first and second violations shall be punishable by an administrative fine of $500..

4. Possible revocation a sidewalk vending permit for a fourth or subsequent violation of this Chapter within a twenty-four-month period as set forth in Section 2753.

C. Unless otherwise provided, a person engaged in sidewalk vending without a valid city sidewalk Vending Permit shall be issued an administrative fine according to the following provisions:

1. An administrative fine of $250 for a first violation.

2. A second violation that occurs within one year of the first violation shall be punishable by an administrative fine of $500.

3. A third violation and each subsequent violation that occurs within one year of the first and second violations shall be punishable by an administrative fine of up to $.

D. Failure to pay an administrative fine shall not be punishable as an infraction or misdemeanor.

E. Additional fines, fees, assessments, or any other financial conditions beyond those authorized in this Section shall not be assessed.

F. When assessing an administrative fine pursuant to this Section, the City shall take into consideration the person's ability to pay the fine. The City shall provide the person with notice of his or her right to request an ability-to-pay determination and shall make available instructions or other materials for requesting an ability-to-pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program.

G. If the person meets the criteria described in subdivision (a) or (b) of Section 68632 of the Government Code, the City shall accept, in full satisfaction, twenty percent (20%) of the administrative fine, or may offer the following alternatives:

1. Community service in lieu of paying the total administrative fine.

2. Waiver of the administrative fine.

3. An alternative disposition.

SECTION THREE.

1. Publication: Within fifteen (15) days after its adoption, this Ordinance shall be published once in a newspaper of general circulation in the City of Ukiah. In lieu of publishing the full text of the Ordinance, the City may publish a summary of the Ordinance once 5 days prior to its adoption and again within fifteen (15) days after its adoption.

2. Effective Date: The ordinance shall become effective thirty (30) days after its adoption.

3. Severability: If any section, subsection, subdivision, paragraph, sentence, clause or phrase of

this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Ukiah hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Introduced by title only on , 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Adopted on , 2026, by the following roll call vote:

AYES:

NOES:

ABSENT: ABSTAIN:

Susan Sher, Mayor
ATTEST:

Kristine Lawler, CMC/City Clerk

Filename: Updated Ordinance (03.18
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ORDINANCE NO.X
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ADDING A NEW CHAPTER 9 TO DIVISION 2 OF THE CITY CODE TO REGULATE SIDEWALK VENDING ON PUBLIC PROPERTY AND IN THE PUBLIC RIGHT OF WAY.

The City Council of the City of Ukiah hereby ordains as follows:

SECTION ONE. FINDINGS

1. The City of Ukiah recognizes vending as a legitimate source of economic mobility. This Ordinance aims to reduce unnecessary barriers for small vendors, support low cost business entry, and create pathways for individuals to earn income in a regulated, orderly environment.

2. Unregulated sidewalk vending has the potential to create obstructions in the public right-ofway, endanger pedestrians, and impede access for emergency services, necessitating additional municipal oversight and enforcement.

3. Sidewalk vending involving food sales can introduce health and sanitation risks if not properly regulated. Requiring appropriate health permits and on-site trash disposal ensures the cleanliness and safety of public spaces.

4. Maintaining minimum clear path widths on sidewalks is essential for compliance with the Americans with Disabilities Act (ADA) and ensures that all individuals, including those with mobility challenges, have safe access to public walkways.

5. Restricting sidewalk vending in residential zones and near sensitive uses such as schools and emergency infrastructure protects the character and function of these areas.

6. The Ordinance preserves fair and equitable access to public space, ensuring that vending activities do not conflict with permitted events, farmers markets, or parades.

7. The City of Ukiah recognizes vending as a legitimate source of economic mobility. This Ordinance aims to reduce unnecessary barriers for small vendors, support low cost business entry, and create pathways for individuals to earn income in a regulated, orderly environment.

SECTION TWO.

Chapter 9 is hereby added to Division 2 of the Ukiah City Code and shall read as follows:

CHAPTER 9 SIDEWALK VENDING
§ 2750 PURPOSE AND INTENT
The purpose of this Chapter is to set forth specific regulations to govern the vending of various goods from locations which are not permanent and that are temporarily located in the public right of way. In addition, this Chapter is intended to protect against unsafe conditions and health, safety, or welfare concerns of the community that result from the operation of sidewalk vendors on public sidewalks or a pedestrian path, consistent with the provisions of Government Code §§ 51036—51039. The requirements set forth in this Chapter are intended to protect the public's health, safety, and welfare by ensuring that vendors on public property provide safe and sanitary conditions for consumers and ATTACHMENT 3

the general public, are adequately insured, and are properly licensed or permitted with the City and licensed with other agencies. If properly regulated, sidewalk vending can foster vibrant public spaces, promote a diverse and inclusive local economy, and create economic opportunities.

Nothing in the Chapter shall be construed to limit the City's ability to enforce, or remedies for enforcing, laws of general applicability or other provisions of this Code against sidewalk vendors, or to take any other enforcement actions against sidewalk vendors that are not prohibited by state or federal law, or which are allowed by this Code.

The provisions of this Chapter are not intended to apply to the permitting process and regulations for food vendors permitted at special events in the City.
§ 2751 DEFINITIONS
A. Any words or phrases not defined within this Chapter shall be defined as set forth in current dictionaries. If no dictionary defines a particular term, the City Community Development Director shall have the authority to define the term or equate it to a defined term that is similar in nature.

B. For purposes of this Chapter, the words and phrases set out herein shall have the following meanings:

CART means any pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, and includes a stationary cart or a roaming cart.

MENDOCINO COUNTY HEALTH PERMIT means any and all licenses, permits, certifications, and courses required and issued by the Mendocino County Environmental Health Services Division to vend food within the city in accordance with this Chapter.

PEDESTRIAN means any person who is afoot or who is using a means of conveyance propelled by human power other than a bicycle.

ROAMING SIDEWALK VENDOR has the same meaning as set forth in Government Code section 51036(b) and as may be amended from time to time, and includes a sidewalk vendor who moves from place to place and stops only to complete a transaction.

SIDEWALK means any paved surface in the public right-of-way provided for the use of pedestrians and includes pedestrian paths.

SIDEWALK VENDING means the sale of food or merchandise from a pushcart, stand, display, pedaldriven cart, wagon, showcase, rack, or other non-motorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path.

SIDEWALK VENDOR has the same meaning as set forth in Government Code section 51036(a) and as may be amended from time to time, and includes a person who sells food or merchandise from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path.

STATIONARY SIDEWALK VENDOR has the same meaning as set forth in Government Code section 51036(c) and as may be amended from time to time, and includes a sidewalk vendor who vends from a fixed location.

VEND OR VENDING means the sale of any goods, wares, merchandise, prepared, pre-packaged; or unprepared, unpackaged food or food stuff of any kind.

VENDING PERMIT means a permit issued by the Business Services Division of the City of Ukiah Community Development Department to undertake sidewalk vending within the city in accordance with this Chapter.
§ 2752 LICENSING AND PERMITS
All sidewalk vendors are required to obtain:

A. A Business License pursuant to Division 2, Chapter 1 of this Code.

B. A Vending Permit issued pursuant to this Chapter. Sidewalk vendors must comply with the terms and conditions set forth in the Vending Permit.

C. A Seller’s Permit issued by the California Department of Tax and Fee Administration and any additional licenses from state or local agencies to the extent required by law.

D. A Mendocino County health permit for food-related vending, if applicable. § 2753 OPERATIONAL REQUIREMENTS
A. Each cart used by a sidewalk vendor must display a valid Business License, Vending Permit, Seller’s Permit, and, if applicable, a Mendocino County Health Permit.

B. No stationary sidewalk vendor may operate in any residential zone.

C. In order to prevent obstructions of the public right-of-way, the total display area footprint of the cart, including the cart itself and any accompanying display, signage, or related items, shall not exceed a length of 72 inches, a width of 54 inches, or a height, including roof, awning, or canopy, of 78 inches. The area of any roof, awning, or canopy must not exceed the area footprint of the cart.

Any cords or hoses authorized for use in the conditions to the Vending Permit must not project beyond the area footprint of the cart unless otherwise authorized in the conditions to the Vending Permit.

D. In order to comply with the Americans with Disabilities Act (ADA) regulations and with the accessibility requirements set forth in the California Building Code, the total display area footprint of the cart must allow for 48 inches, or as the law updates, of clear width walking space of any sidewalk where the cart is located.

E. Sidewalk vendors may not set up tables, chairs, or other structures that obstruct the public right-of-way, unless otherwise authorized by the City in the Vending Permit.

F. Sidewalk vendors may not access a City power source without authorization from the City in the Vending Permit, nor a private power source without authorization from such private property owner or agent.

G. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall provide a trash receptacle for customers and must ensure proper disposal of customer and vendor trash. The trash receptacle must be large enough to accommodate customer trash without resort to existing trash receptacles located on any block for use by the general public. A sidewalk vendor may not dispose of customer trash in existing trash receptacles on sidewalks. Food Vendors must ensure organic waste is collected and diverted accordingly.

H. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall maintain a clean and trash-free area, including a sanitized and neat appearing cart, within a ten-foot radius around the vendor's cart during hours of operation and shall ensure that such area is clean and trash-free before relocating or closing.

I. In order to prevent damage to public property and prevent obstructions of the public right-of-way, no cart may be chained or fastened to any pole, sign, tree, or other object in the public right-of-way.

J. In order to preserve the safety of the public, and prevent misuse of carts, no cart may be left unattended at any time.

K. In order to preserve the safety of the public, to prevent misuse of carts, and to prevent obstructions of the public right-of-way, no cart may be stored, parked, or left overnight on any public street or right-of-way, or in any public park or other public property.

L. In order to preserve the safety of vehicular travelers, no sidewalk vendor may solicit business from or conduct business with persons in motor vehicles.

M. In order to preserve the safety of vehicular travelers and pedestrians, and to preserve public peace and welfare, no cart may be outfitted with any equipment, signage, or mechanism that endangers or detracts from the health, safety, or welfare of the public by causing an excessive distraction to motorists or interfering with nearby residences, business, or pedestrians including, but not limited to, sound amplification, flashing lights, smoke, steam, bubbles, gas-powered generators, or excessive fumes.

N. In order to preserve the safety of vehicular travelers and pedestrians, any cart operated before sunrise or after sunset, or in location with insufficient lighting, shall be equipped with sufficient lighting or reflectors to alert pedestrians and vehicular travelers to the presence of the cart.

O. In order to prevent obstructions of the public right-of-way, all signage related to the vending operation shall be affixed to the cart.

P. In order to prevent obstructions of the public right-of-way, all merchandise sold by a sidewalk vendor must be stored within that vendor’s cart or attached receptacle or other receptacle approved by the City.

Q. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall immediately clean up any food, grease, or other fluid or item related to their sidewalk vending activities that are spilled or discharged. Disposal of trash, food, grease, or other materials to any storm drain,

creek, or waterway is prohibited. Vendors shall not dump, drain, or discard any fouled, spoiled, or unused product, which includes draining ice coolers, drink containers, and/or miscellaneous containers on the ground.

R. In order to preserve sanitary conditions in all public rights-of-way, all sidewalk vendors shall comply with all applicable state, county, and city health and safety regulations and permitting and licensing requirements. In particular, if food is prepared and/or sold, sidewalk vendors must comply with the California Retail Food Code set forth at Part 7 of Division 104 of the California Health and Safety Code (commencing at Section 113700).

S. In order to preserve the safety of the public, all sidewalk vendors shall not use an open flame on or within any cart. Any sidewalk vendor using cooking equipment shall have a fire extinguisher.

Propane, natural gas, or butane cylinder tanks must be 20-gallon tanks or less, stored in an upright position during use and positioned in such a way to prevent falling, tipping, and tampering, be properly ventilated, and must contain a shut-off valve and a pressure regulator, having a hose of a type approved for use by the manufacturer with the equipment. § 2753 VENDING PERMITS
A. To apply for or renew a Vending Permit, the sidewalk vendor applicant must file an application with the Business Services Division of the Community Development Department, accompanied by an application or renewal fee in an amount established by resolution of the City Council. The application or renewal shall be in a form prescribed by the Director of the Community Development Department and shall contain the following:

1. Valid identification, such as a State of California driver's license or identification number, an individual taxpayer identification number, or a municipal identification number, or any other government-issued identification card.

2. The name, address, e-mail address, and telephone number of the sidewalk vendor.

3. Proposed hours and days of operation.

4. Whether the sidewalk vendor intends to operate a stationary vending cart or a roaming vending cart.

5. Proposed location of operation.
a. An application for placement of a stationary vending cart in a commercial or industrial area of the city must contain the proposed location, marked by major cross streets, and a photo or sketch of such location.
b. An application for a roaming vending cart in a residential area of the city must contain a sketch or description of the route the sidewalk vendor will travel. c. If a cart will be used, a description of the cart including dimensions.

6. The type of merchandise or food offered for sale or exchange.

7. Proof of a valid Business License issued pursuant to this Code.

8. A valid California Department of Tax and Fee Administration Seller’s Permit and any additional licenses from state or local agencies to the extent required by law.

9. Proof of a policy or policies of comprehensive general liability insurance, in an amount as approved by the City, against any injury, death, loss, or damage as a result of wrongful or negligent acts or omissions by the permittee, with an endorsement naming the City as an additional insured.

10. A Mendocino County health permit for food-related vending, if applicable.

11. A certificate of completion of a food handler course, if applicable.

12. A declaration that the information provided to the city is true and correct.

13. Any other information as may be required by the Administrator.

B. Vending Permits will expire one year after the date of issuance and will be subject to renewal.

C. A Vending Permit shall only permit the operation of one vending cart or other type of conveyance at any one time.

D. Vending Permits are not transferable.

E. In accordance with Government Code § 51038, the Vending Permit application and any personally identifiable information included in the application, as defined in Section 51038, will be confidential and will not be disclosed or made available for review and shall be exempt from disclosure under the California Public Records Act. In addition, the Vending Permit application shall not require disclosure of any categories of information prohibited by Government Code § 51038(c)(1)(D) or as may be amended.

F. The Director of Community Development may require inspection of the cart or other conveyance as a condition of Permit issuance.

G. If there is any prior history of violations under this chapter, the Director of Community Development may review any such violations in its review of renewal requests and consider those violations when imposing conditions on a renewal Permit.

H. The Director of Community Development or their designee may revoke a Vending Permit for a fourth or subsequent violation of this Chapter within a twenty-four-month period.

I. A person whose Vending Permit is revoked pursuant to this Chapter may not renew their Vending Permit for one year.

J. Persons who are denied Vending Permits or whose Vending Permits have been revoked pursuant to this Chapter may appeal by filing a written notice of appeal with the City’s Hearing Officer.

The appeal must be filed with the Chief Code Enforcement Official within ten work days after receipt of the notice of denial or revocation. The appeal hearing shall be conducted pursuant to the appeal

hearing procedure set forth in Section 3456 of this Code for appeals to the Hearing Officer. The Hearing Officer shall hear and determine the final appeal and the decision of the Hearing Officer shall be final.
§ 2754 LOCATION LIMITATIONS
In order to ensure access to public rights-of-way by pedestrians and emergency personnel, and avoid interference with vehicular traffic, certified farmers' markets, swap meets, and City-permitted special events, sidewalk vendors shall not operate in the following areas of the public right-of-way:

A. Any area other than a public sidewalk or pedestrian path.

B. Within 15 feet of a fire hydrant, fire call box, or other emergency facility.

C. Within five feet of an entrance to or emergency exit of any building or business during the hours that the building or business is open to the public.

D. Within ten feet of the outer edge of a driveway or driveway apron.

E. Within ten feet of a transit stop.

F. Adjacent to any marked loading zone or bus zone.

G. Within five feet of a curb return.

H. Any location that would impede entering or exiting a parked vehicle.

I. Any location or pathway that impedes the flow of pedestrian traffic by reducing the clear space to less than four feet or impedes access to or the use of abutting property, including, but not limited to, residences and places of business.

J. Within 100 feet in any direction of the nearest vendor or concessionaire participating in a certified farmers' market or City-hosted community yard sale during the operating hours of the certified farmers' market or City-hosted community yard sale unless vendor has been issued a Vending Permit that authorizes them to vend as part of the certified farmers' market or City-hosted community yard sale.

K. Within 100 feet of a City-permitted special event including, but not limited to, parades, concerts, and street fairs, unless vendor has received a permit to vend as part of the event. For moving events, vending shall be prohibited within 100 feet of any portion of the approved event route. For stationary events, vending shall be prohibited within 100 feet of the parcel and/or site boundary for the location of the event.

L. Within 300 feet of the property line of any public or private school grounds between 7:00 a.m. and 6:00 p.m. on school days, and while the same is in use, including for afterschool childcare, enrichment classes and sports.

M. Upon or within any roadway, median strip, or dividing section.

N. Any public sidewalk location when the straight path would not allow for 48 inches, or as the law updates, of clear width walking space of any sidewalk to comply with the Americans with Disabilities Act (ADA) regulations and with the accessibility requirements set forth in the California Building Code.

O. Any public sidewalk where there is a 180 degree turn path for sidewalk ramps and corner curbs when the location would not allow for 42 inches approaching the turn, 48 inches at the turn, and 42 inches leaving the turn, or as the law updates, of clear width walking space of any sidewalk to comply with ADA regulations.

P. Stationary sidewalk vendors shall not vend within 100 feet of another stationary sidewalk vendor.

Q. Sidewalk vendors are prohibited from entering or encroaching onto private property while engaging in sidewalk vending activities.

R. No sidewalk vendor shall operate within 100 feet of any structure that is abandoned, vacant, declared hazardous, or posted with a notice of violation or subject to a building, fire, or safety-related permit restricting occupancy or access.
§ 2755 VENDING IN CITY PARKS
Sidewalk vendors vending in parks must comply with the following additional requirements:

A. No stationary sidewalk vendor may operate in a City-owned or City-operated park if the operator of the park has signed an agreement for concessions that exclusively permits the sale of food or merchandise by the concessionaire.

B. Sidewalk vendors shall stop vending upon the designated closing time of the park.

C. Vending is permitted between 8:00 am and sunset in parks where there is no designated closing time.
§ 2756 ENFORCEMENT AND PENALTIES
A. It shall be the duty of the Director of Community Development to enforce each and all of the provisions of this Chapter. The Director may delegate this authority to the Chief Code Enforcement Official. Every member of the Code Enforcement Division of the Community Development Department is directed to assist the Director and Official in the enforcement of this Chapter.

B. Unless otherwise provided, any violation of any of the provisions of this Chapter by a sidewalk vendor who has a valid sidewalk vending permit from the City shall be punishable by an administrative fine according to the following provisions:

1. An administrative fine of $100 for a first violation.

2. A second violation that occurs within one year of the first violation shall be punishable by an administrative fine of $200.

3. A third violation and each subsequent violation that occurs within one year of the first and second violations shall be punishable by an administrative fine of $500..

4. Possible revocation a sidewalk vending permit for a fourth or subsequent violation of this Chapter within a twenty-four-month period as set forth in Section 2753.

C. Unless otherwise provided, a person engaged in sidewalk vending without a valid city sidewalk Vending Permit shall be issued an administrative fine according to the following provisions:

1. An administrative fine of $250 for a first violation.

2. A second violation that occurs within one year of the first violation shall be punishable by an administrative fine of $500.

3. A third violation and each subsequent violation that occurs within one year of the first and second violations shall be punishable by an administrative fine of up to $.

D. Failure to pay an administrative fine shall not be punishable as an infraction or misdemeanor.

E. Additional fines, fees, assessments, or any other financial conditions beyond those authorized in this Section shall not be assessed.

F. When assessing an administrative fine pursuant to this Section, the City shall take into consideration the person's ability to pay the fine. The City shall provide the person with notice of his or her right to request an ability-to-pay determination and shall make available instructions or other materials for requesting an ability-to-pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program.

G. If the person meets the criteria described in subdivision (a) or (b) of Section 68632 of the Government Code, the City shall accept, in full satisfaction, twenty percent (20%) of the administrative fine, or may offer the following alternatives:

1. Community service in lieu of paying the total administrative fine.

2. Waiver of the administrative fine.

3. An alternative disposition.

SECTION THREE.

1. Publication: Within fifteen (15) days after its adoption, this Ordinance shall be published once in a newspaper of general circulation in the City of Ukiah. In lieu of publishing the full text of the Ordinance, the City may publish a summary of the Ordinance once 5 days prior to its adoption and again within fifteen (15) days after its adoption.

2. Effective Date: The ordinance shall become effective thirty (30) days after its adoption.

3. Severability: If any section, subsection, subdivision, paragraph, sentence, clause or phrase of

this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Ukiah hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Introduced by title only on March 4, 2026, by the following roll call vote:

AYES: Councilmembers Crane, Rodin, Criss, Orozco, and Mayor Sher.

NOES: None.

ABSENT: None.

ABSTAIN: None.

Adopted on , 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Susan Sher, Mayor
ATTEST:

Kristine Lawler, CMC/City Clerk

Agenda Item No: 8.c.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-475

AGENDA SUMMARY REPORT
SUBJECT: Adoption of Resolution Authorizing the Submittal of an Application to the California Department of Housing and Community Development for $530,000 in Funding Under Round 4 of the Prohousing Incentive Program; and if Selected, Authorize the City Manager to Execute a Standard Agreement, Any Amendments Thereto, and Any Related Documents Necessary to Participate in the Prohousing Incentive Program, as well as Authorization of the Corresponding Budget Amendments.

DEPARTMENT: Community
Development PREPARED BY: Jim Robbins, Housing and Grants Manager PRESENTER: Jim Robbins, Housing and Grants Manager.

ATTACHMENTS:

1. pip-round-4-nofa

2. pip-round-4-guidelines

3. 2017_Housing_Strategy

4. pip-round-4-application

5. pip-resolution
Summary: Council is requested to consider the adoption of a resolution authorizing submittal of an application to the California Department of Housing and Community Development (HCD) for $530,000 in funding from Round 4 of the Prohousing Incentive Program (PIP); and if the City is selected for award, authorize the City Manager to execute the Standard Agreement, any amendments thereto, and any related documents; and authorize any corresponding budget amendments.

Background: On August 17, 2022, Council unanimously adopted Resolution No. 2022-57, authorizing an application to and participation in the Prohousing Designation Program. The Prohousing Designation Program (PDP) is a program created through the 2019-2020 Budget Act by the State Legislature and implemented by the Department of Housing and Community Development (HCD) to create incentives for jurisdictions that are compliant with state housing element requirements and that have enacted Prohousing local policies. Being awarded a Prohousing designation by HCD enables such jurisdictions to receive additional points or other preference during the scoring of competitive applications for specified housing and infrastructure funding opportunities. The minimum score a jurisdiction must attain to be designated a Prohousing jurisdiction is 30, out of a total of 60 points. Staff submitted the City's Prohousing Program application on October 21, 2022, and received notification from HCD on April 5, 2023, that the City was awarded a Prohousing Designation with 38 points.

On March 1, 2023, Council unanimously adopted Resolution No. 2023-11, authorizing an application for Round 1 of Prohousing Incentive Program (PIP) funds. The application was awarded, and the City executed a Standard Agreement with HCD to allocate $455,000 toward “i. The development of low- and moderate-income multifamily rental housing,” or “ii. Affordable rental and ownership housing for individuals and households with incomes up to 120 percent of area median income.”
On February 21, 2024, Council unanimously adopted Resolution No. 2024-04, authorizing an application for Round 2 of PIP funds. That application was not funded by HCD, which is unsurprising given that total available PIP funds had been reduced and Round 1 grant recipients were considered last for Round 2 funding.

On December 18, 2024, Council unanimously adopted Resolution No. 2024-52 authorizing an application for Round 3 of PIP funds. That application was also not funded, unsurprisingly, given that the PIP program prioritizes awarding funds to jurisdictions that have not previously received PIP funds.

On September 30, 2025, HCD announced the release of a Round 4 Notice of Funding Availability (NOFA) and final Guidelines (Attachments 1 and 2) for approximately $8 million for the PIP Program. According to HCD, the PIP Program is an “...investment the state is making to reward jurisdictions at the forefront in addressing California's housing crisis..." and "...is designed to reward local governments with Prohousing Designation with additional funding to accelerate affordable housing production and preservation." Eligible activities include:
i. The development of low- and moderate-income multifamily rental housing. ii. Affordable rental and ownership housing for individuals and households with incomes up to 120 percent of area median income.
iii. Matching portions of funds placed into local or regional housing trust funds. iv. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund. v. Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014.
vi. Assisting persons who are experiencing or at risk of homelessness. vii. Accessibility modifications.
viii. Efforts to acquire and rehabilitate foreclosed vacant homes. ix. Homeownership opportunities, including, but not limited to, down payment assistance. x. Fiscal incentives or matching funds to local agencies that approve new housing for low- and moderate income households.

Funding under the PIP Round 4 NOFA and Guidelines follows the same formula as Rounds 2 and 3. The formula is based on the population size of the local jurisdiction and bonus points based on an eligible applicant’s Prohousing Designation application score, with an additional $10,000 for each point of the score.

For example, an applicant with a Prohousing Designation application score of 35 points will be eligible to receive up to a $350,000 bonus award in addition to the base award. As a jurisdiction with a population of less than 20,000, the City's base award for Round 3 is $150,000. With a Prohousing Designation score of 38 points, the maximum funding the City can apply for is $530,000.

Discussion: An award of funding from the PIP program Round 4 would help fulfill goals included in the City's 2017 Housing Strategy (Attachment 3). The Housing Strategy includes the creation of the Ukiah Housing Trust Fund (UHTF), which was completed in 2017. Furthermore, it lists activities to be funded by the UHTF, such as "1. Creation of new affordable units; 2. Purchase of vacant and underutilized land (land assembly) for the purpose of facilitating future affordable housing production; and 9. Predevelopment assistance to non-profit and for-profit developers with project feasibility and preliminary design studies for potential affordable housing projects."
A second award of funding from the PIP program would also help fulfill goals in the City’s 2019-2027 Housing Element. Policy 2-2 under Goal H-2 notes the City should “encourage the development of a variety of different types of housing,” and Policy 5-3 under Goal H-5 encourages staff to “assume a leadership role in the development of all types of housing in the community.” In response to the PIP Round 4 NOFA, Staff is recommending Council authorize an application (Attachment 4) in the amount of $530,000 for the following eligible activities:

PIP Activity ii) Affordable rental and ownership housing for individuals and households with incomes up to 120 percent of area median income (AMI).

As a jurisdiction that was awarded PIP grant funds in round 1, a City of Ukiah application for round 4 funds is less likely to be funded due to the PIP program Guidelines, which prioritize not-yet-funded jurisdictions.

However, it is still worthwhile to apply because the application process is relatively simple and PIP is one of very few sources of grants that are willing to fund affordable housing projects at 120 percent of Area Median Income (AMI), rather than 50-80 percent of AMI.

Staff recommends Council adopt the Resolution in Attachment 5 authorizing submittal of an application to HCD for $530,000 in funding under Round 4 of the Prohousing Incentive Program; and if the City is selected for award, authorize the City Manager to execute the standard agreement, any amendments thereto, and any related documents necessary; and authorize any corresponding budget amendments.

Recommended Action: Adopt a resolution authorizing submittal of an application to the California Department of Housing and Community Development for $530,000 in funding under Round 4 of the Prohousing Incentive Program; and if the City is selected for award, authorize the City Manager to execute the standard agreement, any amendments thereto, and any related documents necessary to participate in the Prohousing Incentive Program; and authorize any corresponding budget amendments.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A, $530,000 if awarded
FINANCING SOURCE: If awarded, PIP Round 4 grant from HCD REVENUE: No GRANT: Yes
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Craig Schlatter, Community Development Director STRATEGIC PLAN (SP): SP 1A - Build neighborhoods that provide access for all to a compatible balance of housing, employment, commercial, medical, education, and recreational resources.

GENERAL PLAN ELEMENTS (GP): GP-A8 - Housing Element (2019-2027).

California Department of Housing and Community Development Page 1 Prohousing Incentive Program
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
September 30, 2025
MEMORANDUM FOR: ALL POTENTIAL APPLICANTS
FROM: MEGAN KIRKEBY, DEPUTY DIRECTOR

DIVISION OF HOUSING POLICY DEVELOPMENT
SUBJECT: NOTICE OF FUNDING AVAILABILITY ROUND 4 –

PROHOUSING INCENTIVE PROGRAM
The California Department of Housing and Community Development (HCD or Department) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately an estimated $8 million under the Prohousing Incentive Program (PIP or Program). This estimate is based on funds collected during Quarter 1 of calendar year 2025 projected through the remainder of the calendar year and is subject to change. Final proceeds generally will be available in Spring 2026 in advance of Award announcements. For more information and updates, please see the Program website.

PIP complements the Prohousing Designation Program and is designed to encourage jurisdictions to obtain a Prohousing Designation and reward jurisdictions that pursue additional Prohousing Policies to earn a higher Prohousing Designation Score. Under the Program, grants are available for a variety of planning or implementation activities related to housing and community development.

To be eligible for grant funding under this NOFA, completed application materials must be submitted by email to [email protected] no later than March 31, 2026. To remain eligible for an award under this NOFA, applicants must obtain a Prohousing Designation no later than March 31, 2026.

Prohousing Incentive Program Round 4 Timeline
NOFA Release September 30, 2025
Application Due Date March 31, 2026
Prohousing Designation Due Date March 31, 2026
Award Announcements June 2026
In addition to the information contained within this NOFA, the NOFA application and ATTACHMENT 1

Program Guidelines are posted on the Department’s PIP website. For future updates on PIP, please subscribe to the Department’s email notification sign-up at Subscribe (ca.gov).

If you have questions regarding this NOFA or PIP generally, please email the Department at [email protected].

Attachment

Prohousing Incentive Program
Notice of Funding Availability
Round 4
State of California
Governor Gavin Newsom
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community
Development
Megan Kirkeby, Deputy Director
Division of Housing Policy Development
651 Bannon Street, Suite 400
Sacramento, CA 95811
Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousing-incentive-program Email: [email protected]
September 2025

Contents
I. Overview.......................................................................................................................................5 A. Notice of Funding Availability...................................................................................................5 B. Timeline ...................................................................................................................................5 C. Authorizing Legislation, Regulations, and Guidelines ..............................................................5 D. NOFA and Guidelines ..............................................................................................................5 II. Eligibility.......................................................................................................................................6 A. Eligible Applicants....................................................................................................................6 B. Threshold Requirements..........................................................................................................6 C. Eligible Uses ............................................................................................................................7 III. Program Funding Amounts and Terms .....................................................................................8 A. Eligible Award Calculation .......................................................................................................8 IV. Application Requirements........................................................................................................9 A. Application Content………………………………………………………………………………….11 B. Application Submittal ...............................................................................................................9 C. Application Process ...............................................................................................................10 V. Scoring .......................................................................................................................................10 A. Geographic Categories ..........................................................................................................10 B. Tie Breaker ............................................................................................................................11 VI. Right to Modify or Suspend and Final Decision-making .....................................................12 VII. Disclosure of Application.......................................................................................................12 VIII. Appeals ....................................................................................................................................12 A. Basis of Appeals……………………………………………………………………………………..15 B. Appeal Process and Deadlines..............................................................................................13 C. Decision………………………………………………………………………………………………16
IX. Award Announcements and Contracts .................................................................................13 A. Award Announcements..........................................................................................................13 B. Contracts ...............................................................................................................................13

I. Overview
A. Notice of Funding Availability
This NOFA announces approximately an estimated $8 million in funding for planning and implementation activities related to housing and community development, as described in Health and Safety Code Section 50470(b)(2)(D).

B. Timeline

1. Program funds will be available to Eligible Applicants on a competitive basis. See Table 1 below for the anticipated timeline of awards.

2. Applications will be accepted as of the date of this NOFA through March 31, 2026. To remain eligible for an award, Eligible Applicants must obtain Prohousing Designation by March 31, 2026. The Department encourages early applications.

Table 1: Round 4 Timeline
NOFA Release Date: September 30, 2025
Application Due Date March 31, 2026
Prohousing Designation Due Date March 31, 2026
Award Announcements June 2026
C. Authorizing Legislation, Regulations, and Guidelines PIP is funded through Chapter 364, Statutes of 2017 (SB 2, Atkins), which established the Building Homes and Jobs Trust Fund, with five percent of annual collections to be used for an incentive program. The Department’s administration of PIP is governed by the PIP Guidelines, which implement, interpret, or make specific provisions for purposes of implementing an incentive program pursuant to Health and Safety Code section 50470, subdivision (b)(2)(C)(i). These Guidelines are authorized pursuant to Chapter 2.5 of the Health and Safety Code (Sections 50470 to 50475).

Applications submitted under this NOFA are subject to the PIP Guidelines, all applicable statutory requirements, and this NOFA. Section references in this NOFA refer to the PIP Guidelines unless otherwise noted. Capitalized terms in this NOFA are either defined herein or in the PIP Guidelines, available on the PIP website at https://www.hcd.ca.gov/grants-and-funding/programsactive/prohousing-incentive-program.

PIP awards funds based on jurisdiction size and Prohousing Designation Program score (as codified in the California Code of Regulations Title 25, Division 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6608).

D. NOFA and Guidelines
Applications submitted under this NOFA are subject to the September 2025 PIP

Guidelines.

II. Eligibility
A. Eligible Applicants

1. Eligible Applicants are limited to cities, counties, and cities and counties.

2. Only Eligible Applicants may submit an application.

3. Eligible Applicants may partner through legally binding agreements with other forms of governments or entities. This includes, but is not limited to, partnerships with other localities, regional governments, housing authorities, school districts, special districts, community-based organizations, Tribal Entities, or any duly constituted governing body of an Indian Reservation or Rancheria.

4. Eligible Applicants in partnerships may determine the amount of incentive payments between Eligible Applicants participating in the partnership in consultation with the Department.

5. Eligible Applicants forming partnerships must submit separate, completed, and signed application packages, including resolutions and a copy of the signed agreement between partners to the Department to be awarded funds.

B. Threshold Requirements
Eligible Applicants must meet all of the following threshold requirements for participation in the Program:

1. An adopted housing element in substantial compliance, as determined by the Department, pursuant to Housing Element Law (Gov. Code, § 65580 et seq.) in accordance with Government Code section 65585. a) Applicants that do not meet housing element requirements may be considered to meet this threshold requirement at the discretion of the Department on a case-by-case basis. Criteria for consideration include, but are not limited to, significant progress in meeting housing element requirements (e.g., a draft found to meet statute, rezoning near completion), proposing activities to meet housing element requirements (e.g., rezoning to accommodate housing needs pursuant to Gov. Code, § 65583(c)(1)), and adoption of a compliant element prior to the award of funds.

2. Housing Element Annual Progress Report submittal pursuant to Government Code section 65400 for the current or prior year, as applicable.

3. Prohousing Designation: A Prohousing Designation (per the regulations codified in the California Code of Regulations Title 25, Division 1, Chapter

6, Subchapter 6.6, Sections 6600 through 6608), as determined by the Department, must be achieved by the PIP application due date.

4. A complete application as determined by the Department.

5. A resolution authorizing submittal of the application to the Program that materially comports with the Program’s requirements and is legally sufficient as determined at the Department’s reasonable discretion, including an authorized representative. See Attachment B of the Guidelines for required resolution format.

6. Compliance with state and federal housing laws as determined at the sole discretion of HCD.

7. Demonstration of meeting threshold criteria shall be determined by the Department at its sole and absolute discretion. No documentation of meeting threshold requirements is required in the application unless requested by the Department. At the sole discretion of HCD, failure to maintain a Prohousing Designation, housing element compliance, compliance with state and federal housing laws, or other threshold requirements may result in revocation of award, or delay in disbursement until the issue is resolved to the satisfaction of HCD.

C. Eligible Uses
Eligible Applicants must use award funds towards planning or implementation activities related to housing and community development and limited to activities that conform with eligible uses pursuant to Health and Safety Code section 50470(b)(2)(D):

1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, and moderate-income households, including necessary operating subsidies.

2. Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas.

3. Matching portions of funds placed into local or regional housing trust funds.

4. Matching portions of funds available through the Low- and ModerateIncome Housing Asset Fund pursuant to Health and Safety Code section 34176(d).

5. Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014.

6. Assisting 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.

7. Accessibility modifications.

8. Efforts to acquire and rehabilitate foreclosed or vacant homes.

9. Homeownership opportunities, including, but not limited to, down payment assistance.

10. Fiscal incentives or matching funds to local agencies that approve new housing for extremely low-, very low-, low-, and moderate-income households.

III. Program Funding Amounts and Terms
A. Eligible Award Calculation

1. Maximum total award amounts will be no greater than $2 million per Eligible Applicant. Total potential award amounts are determined by adding an Eligible Applicant’s base award amount with an Eligible Applicant’s bonus award amount.
a) Base award amounts will be determined by population size. Base award amounts are based on population estimates as of January 1 of the NOFA year. Population estimates are based on the Department of Finance E-1 report:
https://dof.ca.gov/Forecasting/Demographics/estimates-e1/ .

Jurisdiction Size (in
Population) Base Award Amount
750,000 or greater $1,500,000
300,000 to 749,999 $1,000,000
100,000 to 299,999 $750,000
50,000 to 99,999 $500,000
20,000 to 49,999 $250,000
Less than 20,000 $150,000

b) For the purpose of calculating the bonus award, an Eligible Applicant’s Prohousing Designation Score will be multiplied by 10,000. For example, an Eligible Applicant with a Prohousing Designation Score of 35 points will be eligible to receive up to a $350,000 bonus award in addition to the base award. The bonus award amount shall not exceed $500,000.

2. Eligible Applicants in partnerships with other cities or counties, as allowed by Section 201(C) of the Guidelines, may qualify for up to the sum of individual Eligible Applicant base and bonus award amounts.

IV. Application Requirements
A. Application Content

1. Eligible Applicants may request an allocation of funds by submitting a complete application to the Department.

2. Eligible Applicants must utilize the forms and manner prescribed in the Department’s application.

3. The application can be found on the Department’s website at https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousingincentive-program.

4. Eligible Applicants must submit a Government Agency Taxpayer Identification Form for an application to be considered complete.

5. The Department may request additional information and documentation as appropriate.

6. The Department may consult with and gather relevant information from any individual, entity, or public agency.

B. Application Submittal

1. An applicant must submit a complete, signed original application in electronic form.

2. The Department encourages early applications and will accept applications up to 11:59 P.M. Pacific Time on March 31, 2026.

3. All applications must be submitted by email to: [email protected].

C. Application Process

1. Applications will be reviewed for completeness, eligibility, and for meeting threshold requirements.

2. Eligible Applicants must obtain a Prohousing Designation by March 31, 2026. HCD will rank Eligible Applicants according to their Prohousing Designation Score, as determined by HCD.

3. Ranked applications will be sorted by geographic category, as described in Section 404 of the PIP Guidelines.

4. Priority will be given to Eligible Applicants that have not received PIP funds in prior funding rounds. Eligible Applicants awarded in prior funding rounds will only be eligible to receive an award once all previously unfunded Eligible Applicants receive an award.

V. Scoring
A. Geographic Categories

1. Ranked applications will be considered for awards according to six geographic categories, as follows:
a) Southern California: Counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino, Ventura, and San Diego
b) Bay Area: Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, Sonoma, and the City and County of San Francisco
c) San Joaquin Valley: Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare
d) Sacramento Area: Counties of Amador, El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba
e) Central Coast: Counties of Monterey, San Benito, San Luis Obispo, Santa Barbara, and Santa Cruz
f) North State and Sierra Nevada: Counties of Alpine, Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Nevada, Plumas, Shasta, Sierra, Siskiyou, Tehama, Trinity, and Tuolumne

2. Funds are made available to each geographic category based upon the percentage of 2030 population projections, as determined by the Department of Finance (see P-2A report:
https://dof.ca.gov/forecasting/demographics/projections/).

Geographic Region 2030
Population
Projection
Percent of
2030 State
Population
Percent of
Overall Funds
Available to
Applicants in
Region
Southern California 22,131,252 55.65% 41.73%
Bay Area 7,706,873 19.38% 14.53%
San Joaquin Valley 4,507,449 11.33% 8.50%
Sacramento Area 2,742,958 6.90% 5.17%
Central Coast 1,503,290 3.78% 2.83%
North State and Sierra
Nevada
1,179,601 2.97% 2.22%
Totals 39,771,423 100% 75%

3. The total proportion of available funds in geographic categories will not exceed 75 percent of the total amount of the NOFA.

4. Awards will be funded from each geographic category’s total available funding amount until the funds for that category are depleted. If Eligible Applicants’ awards exceed the funding available to a geographic category, Eligible Applicants may qualify to fulfill their eligible award from the 25 percent residual set-aside in ranking order.

5. In the event that funds from a geographic category are depleted such that only a partial award is available, the residual set-aside may be utilized to enhance the award at the discretion of the Department.

6. If both an Eligible Applicant’s geographic category and the residual setaside have been depleted, that Eligible Applicant may be eligible for remaining funds at the sole discretion of the Department. Remaining funds will come from unutilized money from geographic categories only after Eligible Applicants located in those geographic categories have been awarded.

7. When all funds have been depleted, the final Eligible Applicant in the ranking will only be eligible for the award amount that remains in the coffer. Eligible Applicants in this position may opt to pull their PIP application until additional funds are made available to fulfill their eligible award amount in potential future funding rounds.

8. The Department reserves discretion to alter funding amounts and the distribution methodology to advance Program goals and achieve an equitable outcome.

B. Tie Breaker

1. Eligible Applicants that submit complete applications that meet threshold requirements will be awarded in order of rank and priority, as described in Section 401(D) of the PIP Guidelines, until funding is depleted.

2. In the event of a tie (i.e., two or more Eligible Applicants have the same Prohousing Designation Score), the Eligible Applicant with the smaller population size will receive funding first.

VI. Right to Modify or Suspend and Final Decision-making The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of these Guidelines at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website. You may subscribe to the Department’s email list here:
http://www.hcd.ca.gov/HCD_SSI/subscribe-form.html.

The Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding to be provided, shall be final.

VII. Disclosure of Application
Information provided in the application will become a public record available for review by the public pursuant to the California Public Records Act (CPRA) (Gov.

Code, § 7920.000 et seq.). As such, any materials provided are subject to disclosure to any person making a records request under the CPRA. The Department cautions applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, Social Security numbers, personal phone numbers, and home addresses. By providing this information to the Department, the applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request.

VIII. Appeals
A. Basis of Appeals

1. Applicants may appeal the Department’s written determination that an application is incomplete or ineligible, or appeal other administrative errors including, but not limited to, requested award amounts.

2. Applicants shall have the right to appeal a decision of the Department relating to another applicant’s application (e.g., eligibility, award).

3. The appeal process provided herein applies solely to decisions of the Department made pursuant to this NOFA and related to application completion, eligibility, or administrative errors.

B. Appeal Process and Deadlines

1. To file an appeal, applicants must submit to the program manager, or designee, by the deadline set forth below a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the applicant must provide a detailed reference to the area or areas of the application that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a competitive advantage to an applicant. Once the written appeal is submitted to the Department, no further information or materials will be accepted or considered thereafter. Appeals must be submitted to the Department at [email protected] according to the deadline set forth below.

2. Appeals must be received by the Department no later than five business days from the date of the Department’s determination.

C. Decision
Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the PIP Guidelines and this NOFA. All decisions rendered shall be made by the program manager or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.

IX. Award Announcements and Contracts
A. Award Announcements
It is the Department’s intent to announce awards in June 2026. Award announcements will be posted on the PIP website at
https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousingincentive-program.

B. Contracts

1. Grantees will enter into a Standard Agreement with the Department. The Standard Agreement specifies and memorializes all the relevant state and federal requirements, as well as specific information about the award and the work to be performed.

2. As a condition of award, a Standard Agreement must be executed by the grantee within 90 days of the Department’s issuance of the award letter. Failure to execute the Standard Agreement(s) within 90 days may result in award cancellation. The refusal of any grantee to execute the Standard Agreement may result in award cancellation.

3. Once an application is awarded Department funds, the grantee is acknowledging the proposal as submitted and approved is the proposal that is to be funded. Any bifurcation or portioning of the proposal will make that award null and void.

Prohousing Incentive Program
Guidelines
State of California
Governor Gavin Newsom
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community
Development
Megan Kirkeby, Deputy Director
Division of Housing Policy Development
651 Bannon Street, Suite 400
Sacramento, CA 95811
Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousing-incentive-program Email: [email protected]
September 2025
ATTACHMENT 2

Contents
Section 100: Introduction...........................................................................................................1 Section 101: Scope and Authority................................................................................................... 1 Section 200: Eligibility................................................................................................................2 Section 201: Eligible Applicants ...................................................................................................... 2 Section 202: Threshold Requirements........................................................................................... 2 Section 300: Application Requirements ...................................................................................3 Section 301: Application Content.................................................................................................... 3 Section 302: Application Submittal................................................................................................. 4 Section 400: Application Review...............................................................................................4 Section 401: Application Process.................................................................................................... 4 Section 402: Base Award and Bonus Award Calculation ......................................................... 5 Section 403: Scoring – Tie Breaker................................................................................................. 5 Section 404: Geographic Categories.............................................................................................. 5 Section 500: Eligible Award Calculation...................................................................................6 Section 600: Uses of Funds .......................................................................................................7 Section 601: Eligible Uses................................................................................................................. 7 Section 700: Administration ......................................................................................................8 Section 701: Fiscal Administration ................................................................................................. 8 Section 702: Accounting Records, Audits, Remedies of Non-performance, and Reporting.............................................................................................................................................. 10 Section 800: Right to Modify or Suspend and Final Decision-making ................................14 Attachment A: Enabling Legislation .......................................................................................15 Attachment B: Required Resolution Template ......................................................................21 Attachment C: Definitions........................................................................................................22

1 Prohousing Incentive Program
Section 100: Introduction
The California Department of Housing and Community Development (Department/HCD) is pleased to release program guidelines (Guidelines) for funding through the Prohousing Incentive Program (Program). The Prohousing Incentive Program is designed to encourage cities and counties to obtain Prohousing Designation.

The Program is funded through Chapter 364, Statutes of 2017 (SB 2, Atkins), which established the Building Homes and Jobs Trust Fund (Fund). The Fund utilizes real estate transaction fees collected at a county level to establish a permanent source of funding. Five percent of annual collections are deposited in a fund to be used for an incentive program.

The Program awards funds based on the Eligible Applicant’s Prohousing Designation Program Score (as codified in the California Code of Regulations Title 25 Housing and Community Development, Division 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6608, Consecutive Prohousing Designation Program). This round of Program funding provides awards for Eligible Applicants to use towards planning and implementation activities related to housing and community development. The content and structure of future rounds of Program funding is subject to change at the Department’s sole discretion.

Section 101: Scope and Authority
These Guidelines are authorized pursuant to Chapter 2.5 of Health and Safety Code (Sections 50470 to 50475). The Guidelines implement, interpret, and make specific provisions for purposes of implementing an incentive program pursuant to Health and Safety Code section 50470, subdivision (b)(2)(C)(i), (hereinafter “Prohousing Incentive Program” or “PIP”).

The Guidelines provide the Department’s plan for the expenditure of PIP funds and the administration of the Program. As such, these Guidelines establish terms, conditions, forms, procedures, and other mechanisms as the Department deems necessary to exercise the powers and perform the duties conferred by Chapter 2.5.

The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below:

Section 50470 (d) of the Health and Safety Code states “In consultation with stakeholders, the department may adopt guidelines to implement this section, including

2 to determine allocation methodologies. Any guideline, rule, policy, or standard of general application employed by the department in implementing this chapter shall not be subject to the requirements of the Administrative Procedures Act.” These guidelines are mandated and have the dignity of statutes. (Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) [stating "“Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of legislative authority includes the power to elaborate the meaning of key statutory terms…”].

Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) The Department reserves the right, at its sole discretion, to suspend or amend the provisions of these Guidelines, including, but not limited to, grant award amounts.

Section 200: Eligibility
Section 201: Eligible Applicants
(A) Eligible Applicants are limited to cities, counties, and cities and counties. (B) Only Eligible Applicants may submit an application. (C)Eligible Applicants may partner through legally binding agreements with other forms of governments or entities. This includes, but is not limited to, partnerships with other localities, regional governments, housing authorities, school districts, special districts, community-based organizations, Tribal Entities, or any duly constituted governing body of an Indian Reservation or Rancheria. (D)Eligible Applicants in partnerships may determine the amount of incentive payments between Eligible Applicants participating in the partnership in consultation with the Department.
(E) Eligible Applicants forming partnerships must submit separate, completed, and signed application packages, including resolutions and a copy of the signed agreement between partners to the Department to be awarded funds.

Section 202: Threshold Requirements
Eligible Applicants must meet all of the following threshold requirements for participation in the Program:
(A) An adopted housing element in substantial compliance, as determined by the Department, pursuant to Housing Element Law (Article 10.6 of Gov. Code) in

3 accordance with Government Code section 65585, subdivision (h).

1. Applicants that do not meet housing element requirements may be considered to meet this threshold requirement at the discretion of the Department on a case-by-case basis. Criteria for consideration include but are not limited to significant progress in meeting housing element requirements (e.g., a draft found to meet statute, rezoning near completion), proposing activities to meet housing element requirements (e.g., rezoning to accommodate housing needs pursuant to Gov. Code § 65583(c)(1)), and adoption of a compliant element prior to the award of funds.
(B) Housing Element Annual Progress Report submittal pursuant to Government Code section 65400 for the current or prior year, as applicable. (C)Prohousing Designation: A Prohousing Designation (per the regulations codified in the California Code of Regulations Title 25, Division 1, Chapter 6, Subchapter

6.6, Sections 6600 through 6608), as determined by the Department, must be achieved by the PIP application due date.
(D)A complete application as determined by the Department. (E) A resolution authorizing submittal of the application to the Program that materially comports with the Program’s requirements and is legally sufficient as determined at the Department’s reasonable discretion, including an authorized representative. See Attachment B for required resolution format. (F) Compliance with state and federal housing laws as determined at the sole discretion of HCD.
(G)Demonstration of meeting threshold criteria shall be determined by the Department at its sole and absolute discretion. No documentation of meeting threshold requirements is required in the application unless requested by the Department. At the sole discretion of HCD, failure to maintain a Prohousing Designation, housing element compliance, compliance with state and federal housing laws, or other threshold requirements may result in revocation of award, or delay in disbursement until the issue is resolved to the satisfaction of HCD.

Section 300: Application Requirements
Section 301: Application Content
(A) Eligible Applicants may request an allocation of funds by submitting a complete application to the Department.

4 (B) Eligible Applicants must utilize the forms and manner prescribed in the Department’s application.
(C)The application can be found on the Department’s website at https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousingincentive-program. (D)Eligible Applicants must submit a Government Agency Taxpayer Identification Form for an application to be considered complete.
(E) The Department may request additional information and documentation as appropriate.
(F) The Department may consult with and gather relevant information from any individual, entity, or public agency.

Section 302: Application Submittal
(A) An applicant must submit a complete, signed original application in electronic form.
(B) The Department encourages early applications and will accept applications up to the date and time noted on the cover letter of the Notice of Funding Availability (NOFA).
(C)All applications must be submitted by email to: [email protected].

Section 400: Application Review
Section 401: Application Process
(A) Applications will be reviewed for completeness, eligibility, and for meeting threshold requirements.
(B) Eligible Applicants will have until the date specified in the NOFA to obtain Prohousing Designation. After the specified date, HCD will rank Eligible Applicants that met threshold requirements according to their Prohousing Designation Score, as determined by the Department.
(C)Ranked applications will be sorted by geographic category, as described in Section 404 of these Guidelines.
(D)Priority will be given to Eligible Applicants that have not received PIP funds in prior funding rounds. Eligible Applicants awarded in prior funding rounds will only

5 be eligible to receive an award once all previously unfunded Eligible Applicants receive an award.

Section 402: Base Award and Bonus Award Calculation
(A) Eligible Applicants will receive a base award according to population size (see Section 500). In addition, Eligible Applicants may receive a bonus award up to $500,000.
(B) For the purpose of calculating the bonus award, an Eligible Applicant’s Prohousing Designation Score will be multiplied by 10,000. For example, an Eligible Applicant with a Prohousing Designation Score of 35 points will be eligible to receive up to a $350,000 bonus award in addition to the base award.

The bonus award amount shall not exceed $500,000.

Section 403: Scoring – Tie Breaker
(A) Eligible Applicants that submit complete applications that meet threshold requirements will be awarded in order of rank and priority, as described in Section 401(D), until funding is depleted.
(B) In the event of a tie (i.e., two or more Eligible Applicants have the same Prohousing Designation Score), the Eligible Applicant with the smaller population size will receive funding first.

Section 404: Geographic Categories
(A) Ranked applications will be considered for awards according to six geographic categories, as follows:

1. Southern California: Counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino, Ventura, and San Diego

2. Bay Area: Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, Sonoma, and the City and County of San Francisco

3. San Joaquin Valley: Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare

4. Sacramento Area: Counties of Amador, El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba

6 5. Central Coast: Counties of Monterey, San Benito, San Luis Obispo, Santa Barbara, and Santa Cruz

6. North State and Sierra Nevada: Counties of Alpine, Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Nevada, Plumas, Shasta, Sierra, Siskiyou, Tehama, Trinity, and Tuolumne
(B) Funds are made available to each geographic category based upon the percentage of 2030 population projections, as determined by the Department of Finance (see the NOFA).
(C)The total proportion of available funds in geographic categories will not exceed 75 percent of the total amount of the NOFA.
(D) Awards will be funded from each geographic category’s total available funding amount until the funds for that category are depleted. If Eligible Applicants’ awards exceed the funding available to a geographic category, Eligible Applicants may qualify to fulfill their eligible award from the 25 percent residual set-aside in ranking order.

1. In the event that funds from a geographic category are depleted such that only a partial award is available, the residual set-aside may be utilized to enhance the award at the discretion of the Department.
(E) If both an Eligible Applicant’s geographic category and the residual set-aside have been depleted, that Eligible Applicant may be eligible for remaining funds at the sole discretion of the Department. Remaining funds will come from unutilized money from geographic categories only after Eligible Applicants located in those geographic categories have been awarded.
(F) When all funds have been depleted, the final Eligible Applicant in the ranking will only be eligible for the award amount that remains in the coffer. Eligible Applicants in this position may opt to pull their PIP application until additional funds are made available to fulfill their eligible award amount in potential future funding rounds.
(G)The Department reserves discretion to alter funding amounts and the distribution methodology to advance Program goals and achieve an equitable outcome.

Section 500: Eligible Award Calculation
(A) This Program will make funding available to jurisdictions as Prohousing Incentive grants as determined by the NOFA.

7 (B) Maximum total award amounts will be no greater than $2 million per Eligible Applicant. Total potential award amounts are determined by adding an Eligible Applicant’s base award amount with an Eligible Applicant’s bonus award amount, as established by the criteria described in Section 402 of these Guidelines. (C)Base award amounts are based on population estimates as of January 1 of the NOFA year1. See the NOFA for the maximum base award amount that a jurisdiction may receive pursuant to this subdivision2. (D)Eligible Applicants in partnerships with other cities or counties, as allowed by section 201(C) of these Guidelines, may qualify for up to the sum of individual Eligible Applicant base and bonus award amounts.

Section 600: Uses of Funds
Section 601: Eligible Uses
Eligible Applicants must use award funds towards planning or implementation activities related to housing and community development and limited to activities that conform with eligible uses pursuant to Health and Safety Code section 50470(b)(2)(D):

1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, and moderate-income households, including necessary operating subsidies.

2. Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas.

3. Matching portions of funds placed into local or regional housing trust funds.

4. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to Health and Safety Code section 34176(d).

5. Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded 1 Population estimates are based on the Department of Finance E-1 report:
https://dof.ca.gov/Forecasting/Demographics/estimates-e1/. 2 Maximum and minimum award amounts may be adjusted by the Department based on demand for the Program.

8 through the Veterans Housing and Homelessness Prevention Bond Act of 2014.

6. Assisting 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.

7. Accessibility modifications.

8. Efforts to acquire and rehabilitate foreclosed or vacant homes.

9. Homeownership opportunities, including, but not limited to, down payment assistance.

10. Fiscal incentives or matching funds to local agencies that approve new housing for extremely low, very low, low-, and moderate-income households.

Section 700: Administration
Section 701: Fiscal Administration
(A) Grant Execution and Term

1. The Department will notify the grantee if they have been selected for a grant award:
i. After the Standard Agreement has been drawn, the grantee will be provided instructions for signing all required
documents. The grantee must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instructions, or risk forfeiting the grant award; ii. The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement. The Department will notify the grantee and partners when work may proceed under the agreement. However, eligible activities that are approved by the Department may be retroactively reimbursed to the date of the NOFA; and
iii. The end of the grant term will be determined by the state based on the availability of grant funds and the administrative requirements for liquidation.
(B) Payment and Accounting of Grant Funds

9 1. Grant funds cannot be reimbursed until the Standard Agreement has been fully executed.

2. The grantee will be responsible for compiling and submitting all invoices and reporting documents. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. Failure to provide requested documentation to HCD could result in exclusion from consideration for grants in future Program years.

3. The grantee will submit documentation to the Department detailing actual costs incurred, which must be based on clear and completed objectives and deliverables as outlined in the PIP application, Exhibit E of the Standard Agreement, and any other supplemental forms prescribed by the Department.

4. Supporting documentation may include, but is not limited to, receipts, progress payments, subcontractor invoices, timecards or any other documentation as deemed necessary by the Department to support the reimbursement to the grantee for expenses in accordance with the grantee’s PIP application and these PIP Guidelines.

5. The grantee must bill the state based on clear deliverables outlined in the Standard Agreement or budget timeline. Only approved and eligible costs incurred for work after the NOFA date, and completed and processed prior to the expenditure deadline, will be reimbursable. Approved and eligible costs incurred prior to the NOFA date are ineligible.

6. Work must be completed prior to requesting reimbursement, unless otherwise approved by the Department.

7. Grant fund payment will be made on a reimbursement basis. Project invoices will be submitted to the Department by the grantee on a quarterly basis or, if earlier, upon completion of deliverables.

8. In unique and/or unusual circumstances, the Department may consider alternative arrangements (e.g., disbursements in advance of activity initiation) to reimbursement and payment methods.

Unusual circumstances include but are not limited to feasibility, unavailable funds or lack of resources and substantial progress in expenditure.

9. The Department recognizes that budgeted deliverable amounts are based upon estimates. Grantees may request, in writing, a budget

10 adjustment across deliverables subject to written approval by the Department, as long as the total budget does not exceed the maximum amount awarded to the grantee.

10.The Department may withhold grant funds until grant terms have been fulfilled.

11. The Department may withhold eligible Program grants in future Program years until terms of the Standard Agreement have been fulfilled to the satisfaction of the Department.

12.Each recipient of funds under the Program shall expend those funds no later than the deadline specified in the Standard Agreement. Final invoices shall be submitted to the Department three months prior to the expenditure deadline.

Section 702: Accounting Records, Audits, Remedies of Non-performance, and Reporting
(A) Accounting Records

1. The contractor is responsible for maintaining records which fully disclose the activities funded by the grant. Adequate documentation of each transaction shall be maintained to permit the determination, through an audit if requested by the state, of the accuracy of the records and the allowability of expenditures charged to grant funds. If the allowability of an expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and the state shall determine the reimbursement method for the amount disallowed. The state’s determination of the allowability of any expense shall be final.

2. The grantee, its staff, contractors, and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for payment vouchers and invoices.

3. The grantee must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the scope of work, project timeline and budget. Separate bank accounts are not required.

4. The grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source

11 purchasing), and financial records of expenditures incurred during the project in accordance with GAAP.

5. The grantee agrees that the Department or its designee shall have the right to review, obtain, and copy any records and supporting documentation pertaining to the performance of the Standard Agreement.

The grantee agrees to provide the Department or its designee with any relevant information requested.

6. The grantee agrees to permit the Department or the Department’s designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with statutes, Program Guidelines, and the Standard Agreement.

7. Subcontractors employed by the grantee and paid with moneys under the terms of the Standard Agreement shall be responsible for maintaining accounting records as specified above. The grantee shall monitor and enforce subcontracts accordingly.
(B) Audits

1. At any time during the term of the Standard Agreement, the Department may perform or cause to be performed a financial audit of all phases of the award. At the Department’s request, the grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during and over the project life.

2. The grantee agrees that the Department or the Department’s designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of the Standard Agreement.

3. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in Exhibit D, Section 8 of the Standard Agreement.

4. The grantee shall notify the Department of the auditor’s name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor’s working papers.

12 5. The grantee is responsible for the completion of audits and all costs of preparing audits.

6. If there are audit findings, the grantee must submit a detailed response acceptable to the Department for each audit finding within 90 days from the date of the audit finding report.

7. The grantee agrees to maintain such records for possible audit after the final payment pursuant to Exhibit D, Sections 8 and 9 of the Standard Agreement, unless a longer period of records retention is stipulated.

8. The grantee shall include in any contract that it enters in an amount exceeding $10,000, the Department’s right to audit the contractor’s records and interview their employees.

9. The grantee shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Contracts Code Section 10115.10.

10.The grantee shall retain all books and records relevant to the Standard Agreement for a minimum of five years after the end of the term of the Standard Agreement. Records relating to any and all audits or litigation relevant to the Standard Agreement shall be retained for five years after the conclusion or resolution of the matter.
i. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it.
(C)Remedies of Non-performance

1. In the event that it is determined, at the sole discretion of the Department, that the grantee is not meeting the terms and conditions of the Standard Agreement, the grantee shall cease all work under the Standard Agreement immediately upon receiving a written notice from the Department. The Department has the sole discretion to determine that the grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Standard Agreement.

2. Both the grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit

13 the grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The grantee will submit any requested documents to the Department within 30 days of the early termination notice.

3. At any time, if the Department finds the applicant falsely proposed information in the application or as part of the application review, including documentation related to incentive payments (e.g., affordability, enhancements), the Department may require the repayment of funds or decline reimbursement.

4. The Department may, as it deems appropriate or necessary, require the repayment of funds from a grantee, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code section 50515.04(e).
(D)Reporting

1. At any time during the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement with emphasis on eligible activities, eligible uses, ineligible uses, and expenditures, according to timelines and budgets referenced in the Standard Agreement.

2. Grantees shall submit a report, in the form and manner prescribed by the Department, by April 1 of the year following the receipt of funds, and annually thereafter until funds are expended. The annual report shall contain a detailed report which must include, at a minimum:
i. Identification of the eligible activities to which the Grantee committed Program funds, and the income levels of households assisted;
ii. Amounts awarded to Subrecipients with the activity(ies) identified; iii. Identification of the eligible activities upon which the contractor expended Program funds, and the income levels of households assisted and the affordability level for any units assisted; and iv. Close out report for contracts that were fully expended and in which all activities funded were completed during the fiscal year.

3. The Department may request additional information, as needed.

4. Upon completion of all deliverables within the Standard Agreement

14 and prior to processing final invoicing, the awardee shall submit a closeout report.

Section 800: Right to Modify or Suspend and Final Decisionmaking The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of these Guidelines at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website. You may subscribe to the Department’s email list here:
http://www.hcd.ca.gov/HCD_SSI/subscribe-form.html.

The Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding to be provided, shall be final.

15 Attachment A: Enabling Legislation
Building Homes and Jobs Act
Chapter 2.5 of the Health and Safety Code (Sections 50470 – 50475) (Chapter 364, Statutes of 2017)
Health and Safety Code 50470.
(a) (1) There is hereby created in the State Treasury the Building Homes and Jobs Trust Fund. All interest or other increments resulting from the investment of moneys in the fund shall be deposited in the fund, notwithstanding Section 16305.7 of the Government Code.
(2) Moneys in the Building Homes and Jobs Trust Fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund.
(b) Moneys in the Building Homes and Jobs Trust Fund shall be appropriated either through the annual Budget Act, or as provided in this subdivision, in accordance with the following:
(1) Moneys collected on and after January 1, 2018, and until December 31, 2018, shall, upon appropriation by the Legislature, be allocated as follows:
(A) Fifty percent of deposits into the fund shall be made available for local governments to update planning documents and zoning ordinances in order to streamline housing production, including, but not limited to, general plans, community plans, specific plans, sustainable communities strategies, and local coastal programs. Eligible uses also include new environmental analyses that eliminate the need for project-specific review and local process updates that improve and expedite local permitting. (i) Five percent of the funds specified by this subparagraph shall be available for technical assistance to jurisdictions updating specified planning documents. Technical assistance shall be provided by the department and the Governor’s Office of Planning and Research. (ii) The funds to be allocated pursuant to this subparagraph shall be held by the department until a local government submits a request for use. The request shall include a description of the proposed use of the funds in the interest of accelerating housing production. The proposed use of these funds shall be included in the local government’s funding plan and annual reports pursuant to subclauses (II) and (III) of clause (ii) of subparagraph (B) of paragraph (2). Each recipient of funds under the program shall encumber the funds by December 31, 2020, and shall expend those funds no later than December 31, 2023. Any of these funds not allocated by the department within the first two years that those funds are available shall be made available by the department for the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675)).
(B) Fifty percent of deposits into the fund shall be made available to the department to assist persons experiencing or at risk of homelessness,

16 including, but not limited to, providing rapid rehousing, rental assistance, navigation centers, and the new construction, rehabilitation, and preservation of permanent and transitional rental housing. (C) The department shall ensure geographic equity in the distribution and expenditure of funds allocated pursuant to this paragraph. (2) Moneys collected on and after January 1, 2019, shall be allocated as follows:
(A) Twenty percent of all moneys in the fund shall, upon appropriation by the Legislature, be expended for affordable owner-occupied workforce housing.
(B) (i) Seventy percent of moneys deposited in the fund shall, upon appropriation by the Legislature, be made available to local governments as follows:
(I) Ninety percent of the moneys specified in this
subparagraph shall be allocated based on the formula
specified in Section 5306 of Title 42 of the United States Code, in accordance with the distribution of funds pursuant to that formula for the federal Fiscal Year 2017, except that the portion allocated to nonentitlement areas pursuant to that section shall be distributed through a competitive grant program, administered by the department, as follows:
(ia) The department shall award priority points to a
county that has a population of 200,000 or less within
the unincorporated areas of the county, to a local
government that did not receive an award based on
the formula specified in Section 5306 of Title 42 of the United States Code in 2016, and to a local
government that pledges to use the money awarded
pursuant to a competitive grant under this subclause
to assist persons experiencing or at risk of
homelessness, including, but not limited to, providing
rapid rehousing, rental assistance, navigation centers, and the new construction, rehabilitation, and
preservation of permanent and transitional rental
housing.
(ib) Moneys awarded to a local government pursuant
to the competitive grant program shall be used for the
purposes specified in subparagraph (D).
(II) The remaining 10 percent of the moneys specified in this subparagraph shall be allocated equitably among local
jurisdictions that are nonentitlement areas pursuant to the formula specified in Section 5306 of Title 42 of the United States Code for federal Fiscal Year 2017.
(ii) To receive moneys pursuant to this subparagraph, local governments shall document minimum standards including the following:

17 (I) Submit a plan to the department detailing the manner in which allocated funds will be used by the local government in a manner consistent with this paragraph and to meet the local government’s unmet share of the regional housing
needs allocation.
(II) Have a compliant housing element with the state and submit a current annual report pursuant to Section 65400 of the Government Code.
(III) Submit an annual report to the department that provides ongoing tracking of the uses and expenditures of any
allocated funds.
(IV) Funds may be expended for the uses listed in
subparagraph (D). Two or more local governments that
receive an allocation pursuant to this subparagraph may expend those moneys on a joint project that is an authorized use under subparagraph (D).
(V) Prioritize investments that increase the supply of housing to households that are at or below 60 percent of area
median income, adjusted for household size.
(VI) If a local government does not have a documented plan to expend the moneys allocated to it pursuant to this
subparagraph within five years of that allocation, those moneys shall be exempt from the allocation requirements in this paragraph and shall revert to, and be paid and deposited in, the Housing Rehabilitation Loan Fund established
pursuant to Section 50661 to be used for the Multifamily Housing Program (Chapter 6.7 (commencing with Section
50675)) or for technical assistance for local governments. (VII) A local government may petition the department to return any moneys allocated to it pursuant to this
subparagraph. Any moneys returned pursuant to this clause shall be used for the Multifamily Housing Program (Chapter

6.7 (commencing with Section 50675)).
(C) Thirty percent of moneys deposited in the fund shall be made available to the department for use as follows:
(i) Five percent of the moneys deposited in the fund shall, upon appropriation by the Legislature, be used for state incentive programs, including loans and grants administered by the department. If the department receives insufficient funding applications for incentive programs financed pursuant to this clause, the department shall make those funds available for the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675)).
(ii) (I) Subject to subclause (II), 10 percent of the moneys deposited in the fund shall, upon appropriation by the
Legislature, be used to address affordable homeownership

18 and rental housing opportunities for agricultural workers and their families.
(II) On and after January 1, 2020, housing funded pursuant to this clause shall not be rented, sold, or subleased to an agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, who employs at least one H-2A worker, as defined in Section 50205, until the expiration of the regulatory agreement or affordability covenant, as applicable. A person or entity who receives funds made available pursuant to this clause on or after January 1, 2020, and expends any of those funds for the purpose of funding predevelopment of, developing, or operating any housing that is rented, sold, or subleased to an agricultural employer, as defined in Section 1140.4 of the Labor Code, or its agent, or a farm labor contractor, as defined in Section 1682 of the Labor Code, or its agent, and who employs at least one H-2A worker, as defined in Section 50205, until the expiration of the regulatory agreement or affordability covenant, as applicable, shall reimburse the department or other state agency that provided those funds, as provided in paragraph (2) of subdivision (b) of Section 50205. This subclause shall not apply to any contract
entered into or any financial assistance provided pursuant to this clause prior to January 1, 2020.
(III) A person or entity who receives funds made available pursuant to this section on and after January 1, 2020, and expends any of those funds for the purpose of funding
predevelopment of, developing, or operating any housing shall submit a declaration to the department declaring the following:
(ia) (Ia) The person or entity is not an agricultural
employer, as defined in Section 1140.4 of the
Labor Code, or its agent, or a farm labor
contractor, as defined in Section 1682 of the
Labor Code, or its agent, who employs at least
one H-2A worker, as defined in Section 50205.
(Ib) The person or entity will not rent, sell, or
sublease any housing funded pursuant to this
chapter to an agricultural employer, as defined
in Section 1140.4 of the Labor Code, or its
agent, or a farm labor contractor, as defined in
Section 1682 of the Labor Code, or its agent,
who employs at least one H-2A worker, as
defined in Section 50205, until the expiration of

19 the regulatory agreement or affordability
covenant, as applicable.
(ib) The declaration described in sub-subclause (ia)
can be met through the inclusion in a regulatory
agreement or affordability covenant, as applicable,
with the department that is signed by the person or
entity receiving funds pursuant to this chapter.
(iii) Fifteen percent of the moneys deposited in the fund shall, notwithstanding any other provision of this section or Section 13340 of the Government Code, be continuously appropriated to the California Housing Finance Agency for the purpose of creating mixed income multifamily residential housing for lower to moderateincome households pursuant to Chapter 6.7 (commencing with Section 51325) of Part 3.
(D) The moneys in the fund allocated to local governments may be expended for the following purposes:
(i) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low, very low, low-, and moderateincome households, including necessary operating subsidies. (ii) Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas. (iii) Matching portions of funds placed into local or regional housing trust funds.
(iv) Matching portions of funds available through the Low and Moderate Income Housing Asset Fund pursuant to subdivision (d) of Section 34176 of the Health and Safety Code.
(v) Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and
Homelessness Prevention Bond Act of 2014.
(vi) Assisting 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.
(vii) Accessibility modifications.
(viii) Efforts to acquire and rehabilitate foreclosed or vacant homes. (ix) Homeownership opportunities, including, but not limited to, downpayment assistance.
(x) Fiscal incentives or matching funds to local agencies that approve new housing for extremely low, very low, low-, and moderate-income households.
(3) A state or local entity that receives an appropriation or allocation pursuant to this chapter shall use no more than 5 percent of that appropriation or allocation

20 for costs related to the administration of the housing program for which the appropriation or allocation was made.
(c) Both of the following shall be paid and deposited in the fund:
(1) Any moneys appropriated and made available by the Legislature for purposes of the fund.
(2) Any other moneys that may be made available to the department for the purposes of the fund from any other source or sources.
(d) In consultation with stakeholders, the department may adopt guidelines to implement this section, including to determine allocation methodologies. Any guideline, rule, policy, or standard of general application employed by the department in implementing this chapter shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).

21 Attachment B: Required Resolution Template
RESOLUTION NO. [insert resolution number]
A RESOLUTION OF THE [INSERT EITHER “CITY COUNCIL” OR “COUNTY BOARD OF SUPERVISORS”] OF [INSERT THE NAME OF THE CITY OR COUNTY] AUTHORIZING APPLICATION FOR, AND RECEIPT OF, Prohousing Incentive Program funds.

WHEREAS, pursuant to Health and Safety Code 50470 et. Seq, the California Department of Housing and Community Development (Department) is authorized to issue Guidelines as part of an incentive program (hereinafter referred to by the Department as the Prohousing Incentive Program or “PIP”); and WHEREAS the [insert either “City Council” or “County Board of Supervisors”] of [insert the name of the City or County] desires to submit a PIP grant application package (“Application”), on the forms provided by the Department, for approval of grant funding for eligible activities toward planning and implementation activities related to housing and community development as a result of meeting eligibility criteria including but not limited to Prohousing Designation; and WHEREAS, the Department has issued Guidelines and Application on XXXXXXXXXXXXX in the amount of $xxxxxxxx for PIP;
Now, therefore, the [insert either “City Council” or “County Board of Supervisors”] of [insert the name of the city or county] (“Applicant”) resolves as follows:

SECTION 1. The [insert the authorized designee’s TITLE ONLY] is hereby authorized and directed to submit an Application to the Department in response to the NOFA, and to apply for the PIP grant funds in a total amount not to exceed $__________;
SECTION 2. In connection with the PIP grant, if the Application is approved by the Department, the [insert the authorized designee’s TITLE ONLY] of the [insert the name of the City or County] is authorized and directed to enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement (Standard Agreement) for the amount of [$ enter the dollar amount of the Applicant’s request], and any and all other documents required or deemed necessary or appropriate to evidence and secure the PIP grant, the Applicant’s obligations related thereto, and all amendments thereto; and SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the Guidelines, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement.

Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the Guidelines and in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application.

ADOPTED ON [insert the date of adoption], by the [insert either “City Council” or “County Board of Supervisors”] of [insert the name of the City or County] by the following vote count:

AYES: NAYS: ABSENT: ABSTAIN:

ATTEST: APPROVED AS TO FORM:
[Signature of Attesting Officer]
___________________________________________APPROVED
[Signature of approval]

22 Attachment C: Definitions
Capitalized terms shall have the meanings set forth below:

A. “Department” means the California Department of Housing and Community Development.

B. “Designated Program Year” means the designated time period as indicated in the Notice of Funding Availability (“NOFA”) issued by the Department for each funding round.

C. “Eligible Applicant” means a city, county, or city and county that is in compliance with applicable housing laws as described in section 202(F) herein.

D. “Extremely Low-Income Households” has the meaning set forth in Health and Safety Code Section 50106.

E. “Low-Income Households” has the meaning set forth for lower-income households in Health and Safety Code Section 50079.5.

F. “Preserved” means units preserved at affordable housing costs to lower-income households by acquisition of the units or the purchase of affordability covenants and restrictions as described in paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period.

G. “Program” means the Prohousing Incentive Program implemented by these Guidelines.

H. “Prohousing Designation” means the Eligible Applicant has fulfilled the criteria codified at CCR Title 25 Division 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6607, available at prohousing-regulation-text.pdf (ca.gov).

I. “Prohousing Designation Score” means the number of points allocated to a jurisdiction as part of the Prohousing Designation Program for the purpose of determining whether the jurisdiction receives designation, per the regulations codified in the California Code of Regulations Title 25 Housing and Community Development, Division 1, Chapter 6, Subchapter 6.6, Sections 6600 through 6607, Consecutive Prohousing Designation Program.

J. “Substantially Rehabilitated” means units at imminent risk of loss to the housing stock which are substantially rehabilitated and therefore represent a net increase in the community’s affordable housing stock as described in paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period.

K. “Very Low-Income Households” has the meaning set forth in Health and Safety Code Section 50105.

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Prohousing Incentive Program
(PIP)
2025 Application for Local Governments
State of California
Governor, Gavin Newsom
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
Department of Housing and Community Development
Megan Kirkeby, Deputy Director
Division of Housing Policy Development
Final Filing Date: March 31, 2026
651 Bannon Street, Suite 400 Sacramento, CA 95811
Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousingincentive-program Email: [email protected]
ATTACHMENT 4

RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING APPLICATION FOR, AND RECEIPT OF, PROHOUSING INCENTIVE PROGRAM FUNDS.

WHEREAS, pursuant to Health and Safety Code 50470 et. Seq, the Department of Housing and Community Development (Department) is authorized to issue Guidelines as part of an incentive program (hereinafter referred to by the Department as the Prohousing Incentive Program or “PIP”); and
WHEREAS, the City Council of the City of Ukiah desires to submit a PIP grant application package (“Application”), on the forms provided by the Department, for approval of grant funding for eligible activities toward planning and implementation activities related to housing and community development as a result of meeting eligibility criteria including but not limited to Prohousing Designation; and
WHEREAS, the Department has issued Guidelines and Application on September 30, 2025, in the amount of $8 million for PIP.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF UKIAH “APPLICANT” RESOLVES AS FOLLOWS:

SECTION 1. The City Manager is hereby authorized and directed to submit an Application to the Department in response to the NOFA, and to apply for the PIP grant funds in a total amount not to exceed $530,000; and
SECTION 2. In connection with the PIP grant, if the Application is approved by the Department, the City Manager of the City of Ukiah is authorized and directed to enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement (Standard Agreement) for the amount of $530,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the PIP grant, the Applicant’s obligations related thereto, and all amendments thereto; and
SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the Guidelines, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement.

Pursuant to the Guidelines and in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application.

ATTACHMENT 5

ADOPTED at a regular meeting of the City Council of the City of Ukiah on this 18th day of March, 2026, by the following vote count:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Susan Sher, Mayor
ATTEST:
_______________________________
Kristine Lawler, City Clerk

Agenda Item No: 8.d.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-477

AGENDA SUMMARY REPORT
SUBJECT: Adoption of Resolution Authorizing Submittal of an Application to the California Department of Housing and Community Development for Funding under the HOME Investment Partnerships Program; and if Selected, Authorize the City Manager to Execute a Standard Agreement, Any Amendments Thereto, and Any Related Documents Necessary to Participate in the HOME Investment Partnerships Program, as well as Authorization of the Corresponding Budget Amendments.

DEPARTMENT: Community
Development PREPARED BY: Jim Robbins, Housing and Grants Manager PRESENTER: Jim Robbins, Housing and Grants Manager
ATTACHMENTS:

1. HOME-2025-Projects-Nofa

2. HOME-Income-Limits-2025

3. Resolution-HOME-2025-Nofa
Summary: Council is requested to consider the adoption of a resolution authorizing submittal of an application to the California Department of Housing and Community Development (HCD) for $5,225,000 in funding under the HOME Investment Partnerships Program (HOME) for a Multi-Family Affordable Rental Housing Rehabilitation Project; and if the City is selected for an award, authorize the City Manager to execute the standard agreement, any amendments thereto, and any related documents necessary; and authorize the corresponding budget amendments.

Background: On January 29, 2026, the California Department of Housing and Community Development (HCD) announced the release of a Notice of Funding Availability (NOFA) for approximately $34 million in 2025 federal HOME Investment Partnerships Program (HOME) funds (Attachment 1). Eligible activities for this 2025 NOFA are limited to projects consisting of the funding of acquisition with new construction or rehabilitation of multi-family properties and First-Time Homebuyer (FTHB) subdivision new construction projects. This NOFA does not include funding for HOME Programs, consisting of 1-4 unit FTHB gap assistance such as infill new construction or rehabilitation, Owner Occupied Rehabilitation (OOR), or Tenant Based Rental Assistance (TBRA).

HOME funding provides loans or grants to eligible HOME Applicants serving low-income and very low-income households, defined as having incomes at or below 80 percent Area Median Income (AMI) or 50 percent AMI, respectively (Attachment 2). State Recipients such as the City of Ukiah are eligible to apply. Funding under the HCD HOME NOFA is competitive, with applications accepted from January 29, 2026, until 5:00 pm on March 30, 2026.

On February 13, 2026, the Danco Group reached out to Staff to request City collaboration on a HOME Project application for a Rental Rehabilitation Project of Summercreek Village Apartments, located at 755 Village Circle. Rehabilitation of Summercreek Village Apartments would both preserve 64 affordable units "at-risk" and improve housing conditions for tenants at a nearly 25-year old development project.

To preserve affordability, the proposed Project would include a loan to the Danco Group with a 55-year affordability period, and the rehabilitated housing project will share community space and amenities with the

new Acorn Valley project recently constructed. If the project is awarded HOME funds, the Danco Group intends to rename Summercreek Village to "Acorn Valley Plaza II." The 2025 HOME NOFA allows for the City to apply for up to $8 million in HOME Project funds this year.

On March 20, 2024, Council adopted Resolution No. 2024-07 authorizing the submittal of a HOME Project application for this same Danco Group project in response to the 2022-2023 HOME NOFA. The funding for HOME multi-unit affordable housing new construction and rehabilitation projects is very competitive, and the previous application was not funded. Staff believes it is worthwhile to work with the Danco Group to re-submit the project to HOME in the hope that the application will be successful this year.

Discussion: In response to the 2025 HOME NOFA dated January 29, 2026, Staff is proposing Council authorize an application in the amount of $5,225,000 for a HOME Multi-Family Affordable Rental Housing Rehabilitation Project. If awarded, the City would loan funds to the Danco Group for the rehabilitation of the 64-unit Summecreek Village Apartments.

An award of funding for a HOME Rental Rehabilitation Project would fulfill several of the goals in the City's 2019-2027 Housing Element. Policy 1-1 under Goal H-1 notes the City should “encourage the rehabilitation of existing residential units." Policy 1.3 under Goal H-1 notes that the City "should preserve at-risk housing units" and Policy 1.4 directs that the City "promote increased awareness among property owners and residents of the importance of property maintenance to long-term housing quality." Policy 2-4 under Goal H-2 encourages the “pursuit of State and Federal funding for very low, low, and moderate income housing developments.” Policy 5-3 under Goal H-5 directs City staff to, “assume a leadership role in the development of all types of housing in the community.”
HOME regulations require a resolution (Attachment 3) by the City Council to authorize submittal of an application. The following is requested:

Project Activity – Rental Rehabilitation Project = $5,000,000 Activity Delivery – Rental Rehabilitation Project = $150,000 General Administration = $75,000
Total = $5,225,000
Staff recommends Council adopt the resolution authorizing submittal of an application from the City of Ukiah for $5,225,000 in HOME Investment Partnerships Program funds for a Multi-Family Affordable Rental Housing Rehabilitation Project; and if selected, authorize the City Manager to execute the standard agreement, any amendments thereto, and any related documents necessary; and authorize the corresponding budget amendments if awarded the grant.

Recommended Action: Adopt a resolution authorizing submittal of an application to the California Department of Housing and Community Development for $5,225,000 in funding under the HOME Investment Partnerships Program for a Multi-Family Affordable Rental Housing Rehabilitation Project; and if selected, authorize the City Manager to execute the standard agreement, any amendments thereto, and any related documents necessary; and authorize any corresponding budget amendments.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: $5,225,000 if grant is awarded
FINANCING SOURCE: HOME grant, if the project is awarded REVENUE: Yes GRANT: Yes
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Craig Schlatter, AICP, Director of Community Development STRATEGIC PLAN (SP):SP 1A - Build neighborhoods that provide access for all to a compatible balance of housing, employment, commercial, medical, education, and recreational resources.

GENERAL PLAN ELEMENTS (GP):GP-A8 - Housing Element (2019-2027) Goal H-1, Policy 1-1; Goal H-2, Policy 2-4; Goal H-5, Policy 5-3, and Implementation Program 1f.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES ANDHOUSING AGENCY GAVIN NEWSOM, Governor
January 29, 2026
MEMORANDUM FOR: ALL POTENTIAL APPLICANTS
FROM: Jenny Cho, Deputy Director
Division of Federal Financial Assistance
SUBJECT: HOME Investment
Partnerships Program
(HOME) 2025 Project
Activities Notice of
Funding Availability
The California Department of Housing and Community Development (the “Department” or “HCD”) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $34 million in federal funds for Project Activities under the HOME Investment Partnerships Program (HOME). Funding for this NOFA is from the Department’s Fiscal Year 2025 (FY25) HOME allocation from the U.S. Department of Housing and Urban Development (HUD). The amount of funding available may change.

This funding provides loans or grants to eligible HOME Applicants serving households with low- and very low-incomes, defined as at or below 80 percent (80%) of Area Median Income (AMI), and at or below 50 percent (50%) of AMI, respectively. This NOFA is subject to state and federal HOME regulations.

NOTE: In an effort to improve tribal access within the HOME Program, the Department has called attention to tribal-specific information within this NOFA in green font.

However, Native American Entity Applicants are encouraged to carefully read through all NOFA contents and application materials thoroughly, not exclusively the green font portions

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF

FEDERAL FINANCIAL ASSISTANCE

HOUSING BRANCH
651 Bannon Street, Suite 400
Sacramento,CA 95811
www.hcd.ca.gov
ATTACHMENT 1

The Department will target 20 percent (20%) of the HOME funding for Eligible Applicants that meet the definition of a Native American Entity as set forth and provided in this NOFA. The Department, California Indian Assistance Program (CIAP) and HOME team will provide comprehensive technical assistance to Native American Entities throughout the application process and during implementation of Project activities.

The HOME funds provided through this NOFA will be awarded on a competitive basis to State Recipients, Community Housing Development Organizations (CHDOs), and Developers, as defined in this NOFA. HOME funds awarded to Native American Entities will be on an over-the-counter (“OTC”) application basis, as set forth in this NOFA.

Funding may be used for the following eligible uses:

Project Activities
• Multifamily Rental Projects (new construction, acquisition only, and/or rehabilitation with or without acquisition); and
• First-Time Homebuyer (“FTHB”) Projects (subdivision development) To be considered for HOME funding, Applicants must submit a complete application for each HOME Project activity with required documentation via the EUNA Grants Network Portal only. The Department will begin accepting applications received through the EUNA Grants Portal on January 29, 2026. For cities, counties, CHDOs, and Developers, each completed application package must be submitted no later than 5:00 P.M. Pacific Daylight Time (PDT) on March 30, 2026.

For Native American Entity Applicants (whether a Federally Recognized Tribe or NonFederally Recognized Tribe), application packages may be submitted starting on January 29, 2026, until 5:00 P.M. PDT on June 22, 2026.

Timeline
NOFA Release January 29, 2026
Webinars February 2026
Competitive application submittal period for
cities, counties, CHDOs, and Developers
From January 29, 2026, through March 30,
2026, 5:00 P.M. PDT

OTC application submittal period for
Native American Entities (NAE-FRTs and
NAE-NFRTs)
From January 29, 2026, through
June 22, 2026, 5:00 P.M. PDT, or until the
available funds are exhausted,
whichever occurs first.

All activities and proposed funding in this NOFA are subject to availability of funds and continuing HUD and legislative and fiscal authority.

Applications
Applicants are strongly encouraged to set up their profiles and upload attachments and documents in the EUNA Grants Portal located at
https://gn.ecivis.com/GO/gn_redir/T/vyjsqf2kekyx early to ensure successful submissions prior to the application deadline. Applicants are also strongly encouraged to set up the profile with a centralized email account to avoid loss of access due to staffing change that may result in delays. If Applicants experience trouble logging into the portal or have questions on how to complete the online application, please contact the Department at [email protected] or 916-263-2771.

The Department will hold a series of webinars in February 2026 to review the NOFA and application process. A list of webinar dates, times, and how to register is available on the Department’s HOME website at https://www.hcd.ca.gov/grants-andfunding/programs-active/home-investment-partnerships-program.

Additionally, one-on-one technical assistance appointments will be offered during the application period to assist Applicants with questions regarding the application and application process. Applicants seeking technical assistance may email [email protected] to schedule an appointment.

To receive HOME NOFA information and other program information and updates, please be sure to subscribe to the federal programs email list at https://www.hcd.ca.gov/contactus/email-signup.

Please direct any questions regarding this NOFA to the HOME Program at:

[email protected].

Attachments

HOMEINVESTMENTPARTNERSHIPS

PROGRAM (HOME)
PROJECT ACTIVITIES 2025 NOTICE OF FUNDING AVAILABILITY
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 651 Bannon Street, Ste 400, 8th Floor, Sacramento, CA 95811 Phone: (916) 263-2771
Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/homeinvestment-partnerships-program Email address: [email protected]
January 29, 2026

California Department of Housing and Community Development 1 HOME 2025 Projects NOFA
Contents
I. Overview ................................................................................................................ 3 A. Notice of Funding Availability............................................................................. 3 B. Estimated Timeline ............................................................................................ 3 C. Authorizing Legislation and Regulation Authority .............................................. 4 D. Application Submission Process........................................................................ 6 E. Definitions ......................................................................................................... 7 II. Project Requirements.............................................................................................10 A. Eligibility ...........................................................................................................10 B. Eligibility for CHDOs .........................................................................................10 C. Eligibility for Developers ...................................................................................10 D. Eligible Activities...............................................................................................11 E. Ineligible Use of Project Funds..........................................................................11 F. Allocation of Funding ........................................................................................12 G. Funding Amounts and Limits.............................................................................12 H. Program Income................................................................................................13 I. Periods of Affordability .....................................................................................13 J. Forms of Assistance..........................................................................................14 K. Administrative Costs and CHDO Operating Funds ............................................14 III. State and Federal Requirements..........................................................................15 A. Property Standards ...........................................................................................15 B. Timeframes for Use of Funds.............................................................................15 C. Match Requirements.........................................................................................15 D. Transition Reserve Policy ..................................................................................16 E. Annual Monitoring Fees for Multifamily Projects...............................................16 IV. Application Review .............................................................................................17 A. Minimum Application Requirements (Threshold)..............................................17 B. Rating and Ranking ...........................................................................................19 C. Rental Project Scoring and Notification ............................................................20 D. Feasibility Review .............................................................................................20 E. Appeals.............................................................................................................21

California Department of Housing and Community Development 2 HOME 2025 Projects NOFA
V. Award Announcement and Contracts......................................................................22 A. Award Announcement.......................................................................................22 B. Contracts ..........................................................................................................22 A. Right to Modify or Suspend ...............................................................................22 B. Conflicts ...........................................................................................................23 C. Incompatible Funding .......................................................................................23 D. False, Fictitious or Fraudulent Claims...............................................................23 E. Detecting, Preventing, and Reporting Fraud......................................................23 F. Combating Fraud...............................................................................................23 G. Whistleblower Protection Acts .........................................................................24 H. Cancellation and Defaults ................................................................................26 I. Loan Closing Requirements ..............................................................................26 VII. List of Appendices ..............................................................................................27

California Department of Housing and Community Development 3 HOME 2025 Projects NOFA
I. Overview
A. Notice of Funding Availability
The California Department of Housing and Community Development (Department) is pleased to announce the release of this Notice of Funding Availability for Project Activities (Projects NOFA) for approximately $34 million in federal funds for Project activities under the HOME Investment Partnerships Program (HOME). This HOME Projects NOFA provides funding for housing Project activities in “non-entitlement jurisdictions,” which are jurisdictions and unincorporated areas that do not receive HOME funding directly from HUD. These HOME funds will be used to benefit residents of non-entitlement jurisdictions and are specifically designed to assist low-income households by providing affordable housing.

The amount of funding available through this NOFA may vary depending on several factors. If additional funding becomes available, the Department will distribute funds in accordance with the 2025-2029 Consolidated Plan.

These funds may be used in conjunction with other local, state, and federal rental housing programs to assist the same units in the proposed Project development.

The funds available in this NOFA will be used to meet the following statewide goals in accordance with the Department’s 2025-2029 Consolidated Plan and the Department’s 2025-2026 Annual Action Plan, as the same may be amended from time to time, serving low-income households earning at or below 80 percent (80%) of Area Median Income (AMI) and very low-income households earning at or below 50 percent (50%) of AMI:
• Increase Supply and Preservation of Affordable Housing; • Improve Access to Affordable Housing;
• Address the Homelessness Crisis;
B. Estimated Timeline
Table 1 – Estimated Timeline for
Competitive Applicants
NOFA Release January 29, 2026
EUNA Grants Application Portal Opens By February 9, 2026 Webinars February 2026
Competitive application due date for cities,
counties, Community Housing Development
Organizations (CHDOs), and Developers*
March 30, 2026, by 5:00 P.M.

Pacific Daylight Time (PDT)
Anticipated Award Announcements July 2026**
* All applications must be uploaded to Euna Grants no later than the application due date.

California Department of Housing and Community Development 4 HOME 2025 Projects NOFA
**Based on volume these dates may change.

Table 2 – Estimated Timeline for Native
American Entity Applicants
NOFA Release January 29, 2026
EUNA Grants Application Portal Opens By February 9, 2026 Webinars (Specifically for Native American Entities) February 2026 OTC application due date for Native American
Entities (NAE-FRTs and NAE-NFRTs)*
June 22, 2026, by 5:00 P.M.

PDT
Anticipated Award Announcements Continuous until funds are awarded
*All applications must be uploaded to Euna Grants no later than the application due date.

C. Authorizing Legislation and Regulation Authority
This NOFA should be read in conjunction with but not limited to the following regulations, statutes, and plans, as amended, which establish state and federal HOME requirements:
• Federal HOME Investment Partnerships Act Statutes at Title II of the CranstonGonzalez National Affordable Housing Act, as amended, 42 U.S.C. 12701 et seq. • Federal HOME Regulations (24 C.F.R. Part 92)
• Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 C.F.R. Part 200)
• State of California 2025-2026 Annual Action Plan
• State HOME Regulations (25 C.C.R. § 8200 et seq.)
• State Uniform Multifamily Regulations (“UMRs”) (25 C.C.R. § 8300 et seq.) All regulatory references are to the state and federal HOME regulations unless otherwise noted.

Several of the terms used in the HOME Projects NOFA have specific meanings defined by state and/or federal HOME regulations. When reviewing this NOFA and the application forms, carefully review the regulations for further defined terms. State HOME definitions are found in 25 C.C.R. § 8201 and 8217 and federal HOME definitions are found in 24 C.F.R. § 92.2.

If state or federal statutes or regulations, or other laws, policies, or procedures governing HOME or its funding are modified—whether by Congress, HUD, the state

California Department of Housing and Community Development 5 HOME 2025 Projects NOFA
Legislature, or the Department—prior to completion of work to be done pursuant to awards made in connection with this NOFA, the changes may become effective immediately and apply to funded activities.

Any inconsistencies between this NOFA and state or federal HOME regulations will be resolved in favor of federal regulations, unless a waiver or modification was approved by the Director in accordance with AB 1010 (Chapter 660, Statutes of 2019). In those instances, the waiver or modification will prevail when not in conflict with the federal HOME regulations.

The Department reserves the right at its sole discretion to suspend, amend, and/or supplement the provisions of this NOFA from time to time. If such action occurs, the Department may notify interested parties through the Department’s HOME Listserv (Email Signup | California Department of Housing and Community Development).

Native American Entities
The state requirements set forth in the HOME Project Activities NOFA are subject to Assembly Bill 1010 (Chapter 660, Statutes of 2019) (“AB 1010”) which is set forth in Health and Safety Code (HSC) § 50406(p), (a) where the provisions of tribal law, tribal governance, tribal charter, or difference in tribal entity or legal structure would cause a violation or not satisfy the requirements of the HOME Projects NOFA, said requirements may be modified as necessary to ensure Project compatibility; and (b) where the provisions of tribal law, tribal governance, tribal charter, or difference in tribal entity or legal structure or agency create minor inconsistencies (as determined by the Director of the Department or a duly authorized designee thereof) with the requirements set forth in the HOME Projects NOFA, the Department may waive said requirements, as deemed necessary, to avoid an unnecessary administrative burden. Matters set forth or otherwise provided for in the HOME Projects NOFA that may be modified or waived include, without limitation, threshold scoring requirements and any other matter set forth in HSC § 50406(p)(2).

Native American Entity Applicants, whether federally recognized or non-federally recognized, are accordingly encouraged to discuss any such potential modifications or waivers and their options in that regard at or during an optional pre-application technical assistance meeting with CIAP and HOME Program staff.

There may be other federal laws or federal doctrines that could provide a basis for a possible modification of some federal requirements for Native American Entity Applicants. An example is where a Native American Entity has its own Tribally Determined Wage, in which case Davis Bacon wage requirements are not applicable.

Native American Entity Applicants are encouraged to begin the AB 1010 waiver process before their application is submitted in order to allow time for the Department to review and make a legal decision on the request.

All applications will be reviewed for completeness and compliance with state and federal requirements. Only complete and compliant applications will be eligible for application review, approval, and potential funding. All awards made and standard agreements entered into under this NOFA will be subject to the provisions in the Department’s grant agreement(s) with HUD and all applicable federal law. The Department’s FY25 HOME

California Department of Housing and Community Development 6 HOME 2025 Projects NOFA
allocation from HUD may be subject to additional Federal Conditions, which are listed and discussed in Appendix A: Federal and State Overlays.

D. Application Submission Process
Electronic Application Submission Process
All Applicants must create a EUNA Grants Profile prior to completing an application.

Once the profile is created, the Applicant must complete an application via the EUNA Grants. Application forms are available on the EUNA Grants Portal. Appendix F:

Organizational Documents Checklist and Appendix G: Project Documents Checklist provide a complete list of required uploads for the application.

The Department will not accept applications through personal, postal, shipment deliveries, facsimiles, email, walk-ins, or any other forms of delivery other than the EUNA Grants Portal.

Applicants that do not meet the filing deadline requirements will not be eligible for funding. Applications must be on the Department’s current forms and cannot be altered or modified by the Applicant. Excel forms must be in Excel format, not converted to a PDF document.

The Department may request additional clarifying information from third-party sources, such as local government entities or the Applicant, but this is entirely at the Department’s discretion to determine if the Department has authority to make an award.

Upon the Department’s request, the Applicant shall be given five (5) business days, from the date of staff notification, to submit said documents to clarify the application.

Disclosure of Application
Information provided in the application will become a public record available for review by the public, pursuant to the California Public Records Act (Chapter 1473, Statutes of 1968) (PRA). As such, any materials provided will be disclosable to any person making a request under this Act. The Department cautions Applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, and home addresses. By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consent to the disclosure of submitted material upon receipt of a PRA request.

Concurrent Applications
Due to the unique challenges of the current funding environment, the Department allows Applicants to pursue funding from more than one Department funding program.

Separate concurrent applications to other HCD funding sources are permitted under this HOME Projects NOFA. Applicants, however, MUST disclose all Department applications under review and/or applications anticipated to be submitted, regardless of who is applying for funding (e.g., city, county, Developer, sponsor, etc.), in their application or via email to [email protected].

HOME has strict federal commitment and expenditure deadlines; therefore, if an Applicant submits any other funding applications to the Department after the HOME

California Department of Housing and Community Development 7 HOME 2025 Projects NOFA
Projects NOFA application due date, Applicant must notify HOME staff via the HOME Projects NOFA mailbox [email protected]. If Applicants are competitive for a HOME award, the Department will consult with Applicants to determine the best funding scenario for Project feasibility while balancing cost containment. If the Project receives an award from a different state program after the HOME Projects NOFA application due date, HOME Projects NOFA Applicants may be asked to accept a reduction of any Department-administered state program award by the amount of any HOME Project award.

E. Definitions
“Applicant” is any eligible State Recipient, CHDO, Developer, or Native American Entity which submits an application to the Department to develop or rehabilitate Projects using HOME funds within a specified jurisdictional boundary, in accordance with 25 C.C.R. § 8201 and 8204 and HSC § 50896. A Developer of a Project shall not act as administrative subcontractor for the activity.
“Awardee" means the eligible Applicant (and, if applicable, the Co-Applicant) that has been awarded funds from the Department under HOME, and that will be held responsible for compliance with and performance of all HOME requirements. “Choice-Limiting Actions” means an action that may have an adverse impact on the environment or limit the choice of reasonable alternatives. A Choice-Limiting Action may include, but is not limited to, executing a purchase and sale agreement, signing a lease agreement, real property acquisition, rehabilitation, repair, demolition, disposition, or new construction, as set forth in 24 C.F.R. § 58.22. For the purposes of environmental review, the Project is the aggregation of all activities that are required to build the Project and must be included in the scope of the environmental review. So even if HOME funds are only used to pay for a portion of the overall Project, Awardees and Subrecipients should still be aware of the activities involved that are considered Choice-Limiting Actions. Activities listed at 24 C.F.R. § 58.35(b) that are Categorically Excluded Not Subject To 24 C.F.R. § 58.5 are not Choice-Limiting Actions.
“Developer” means any legal entity, including Native American Entities (Native American Entities-Federally Recognized Tribes and Native American Entities-NonFederally Recognized Tribes), that will provide or arrange for design, financing, and construction services in connection with a housing Project as set forth in 25 C.C.R. § 8201(i). A nonprofit organization, formed as a special purpose entity in compliance with 25 C.C.R. § 8313.2, by a Non-Federally Recognized Tribe (NAE-NFRT) as defined herein, may be considered a Developer if the NAE-NFRT satisfies all other Developer eligibility requirements.
“HOME” means the HOME Investment Partnerships Program. In this NOFA, “HOME” is used to refer to the HOME Investment Partnerships Program as a whole, which includes both Program and Project activities. However, this NOFA only applies to Project activities.

California Department of Housing and Community Development 8 HOME 2025 Projects NOFA
“Homeless” means the same as defined under the federal Continuum of Care Program at 24 C.F.R. § 578.3, as may be amended and renumbered from time to time. “Homeless” includes “chronically homeless” and “homeless with a disability.” “Homeownership” means ownership in fee simple title in a 1- to 4-unit dwelling or in a condominium unit, or equivalent form of ownership approved by HUD. (1) The land may be owned in fee simple, or the homeowner may have a 99-year ground lease.
(i) For housing located in the insular areas, the ground lease must be 40 years or more.
(ii) For housing located on Indian trust or restricted Indian lands or a Community Land Trust, the ground lease must be 50 years.
(iii) For manufactured housing, the ground lease must be for a period at least equal to the applicable period of affordability in 24 C.F.R. § 92.254. “Native American Entity – Federally Recognized Tribe (“NAE-FRT”) means any Tribal Government which is a federally recognized tribe as defined at 25 U.S.C. section 4103(13)(B) and includes a duly constituted governing body of an Indian Reservation or Rancheria as Health and Safety Code section 50077 and 50079; or is a Tribally Designated Housing Entity under 25 U.S.C. section 4103(22).

A NAE-FRT may apply as a State Recipient or Developer for HOME Funds. “Native American Entity – Non-Federally Recognized Tribe” (“NAE-NFRT”) means any Tribal Government which is an Indian Tribe located in California that is not a federally recognized tribe and is either: (1) listed in the Bureau of Indian Affairs Office of Federal Acknowledgment Petitioner List, pursuant to 25 C.F.R. Part 83.1, and has formed and controls a special purpose entity in compliance with 25 C.C.R. § 8313.2; or (2) listed on the contact list maintained by the California Native American Heritage Commission for the purposes of consultation pursuant to Government Code (GC) § 65352.3, and (3) has formed and controls a special purpose entity in compliance with 25 C.C.R. § 8313.2.

A NAE-NFRT may only apply as a Special Purpose Entity Developer for HOME funds for Project activities.
“Native American Lands” means real property located within the State of California that meets the following criteria: (1) is trust land for which the United States holds title to the tract or interest in trust for the benefit of one or more tribes or individual Indians, or is restricted Indian land for which one or more tribes or individual Indians holds fee title to the tract or interest but can alienate or encumber it only with the approval of the United States; and the land may be leased for housing development and residential purposes under federal law; or (2) lands outside the jurisdiction of tribal government owned or co-owned by a Native American Entity in accordance with 25 C.C.R. § 8201(y).
“Native American Entity (NAE) Service Area” means the area where the Project is located within the NAL and includes lands outside the NAE tribal government jurisdiction

California Department of Housing and Community Development 9 HOME 2025 Projects NOFA
up to 100 miles from the boundary of the NAE trust or restricted land as defined at 25 U.S.C. 2201 that is within non-entitlement jurisdictions. “Project” means a site or sites together with any building (including a manufactured housing unit) or buildings located on the site(s) that are under common ownership, management, and financing and are to be assisted with HOME funds as a single undertaking under this part. The Project includes all the activities associated with the site and building.
“Project Commitment” means the date the state has executed a Standard Agreement with an Awardee that includes the date and signature of each person signing the agreement, and that meets the minimum requirements of a Standard Agreement as defined in 24 C.F.R. § 92.504(c).
“Project Completion” Project Completion occurs upon completion of construction and before occupancy.
“Special Needs Populations” means the same as defined under section 7301 of the Multifamily Housing Program guidelines and includes one or more of the following groups who need Supportive Services to maintain and stabilize their housing:
• people with disabilities:
• at Risk of Homelessness;
• individuals with substance use disorders;
• frequent users of public health or mental health services, as identified by a public health or mental health agency;
• individuals who are fleeing domestic violence, sexual assault, and human trafficking; • individuals who are experiencing Homelessness and individuals experiencing Chronic Homelessness;
• homeless youth as defined in Government Code Section 12957, subdivision (e)(2); • families in the child welfare system for whom the absence of housing is a barrier to family reunification, as certified by a county;
• individuals exiting from institutional settings or at risk of placement in an institutional setting;
• older Adults in Need of Supportive Services; or
• other specific groups with unique housing needs as determined by the Department.

Special Needs Populations does not include “seniors or Veterans” unless they otherwise qualify as a “Special Needs Population” as required by other statutory laws. Special Needs Populations may also include those listed under the Qualified Populations for the HOME-ARP program as stated in CPD-21-10.
“Special Purpose Entities” means the legal entity or combination of legal entities with continuing control of the HOME Project and conforms with the requirements of 25 C.C.R. § 8313.2.

California Department of Housing and Community Development 10 HOME 2025 Projects NOFA
“State Recipient” means a “unit of general local government,” including NAE-FRTs, designated by the State to receive HOME funds in accordance with 24 C.F.R. §

92.201(b)(2) and 25 C.C.R. § 8201(ii).

II. Project Requirements
A. Eligibility
Eligible Applicants
State Recipients, Developers, and CHDOs, as defined in 25 C.C.R. § 8204, are eligible to apply to this Projects NOFA.

Applicants must be in good standing with the State of California, all agencies and departments thereof.

NOTE: Pursuant 25 C.C.R. § 8205(b), Developers are not eligible to apply for First Time Homebuyer Projects unless the Projects will be developed on Native American Land.

Eligible Jurisdictions
Projects must be located in non-entitlement areas. Eligible city and county jurisdictions for 2025 federal HOME funds are listed in Appendix B: Eligible Jurisdictions. If a city or county jurisdiction (jurisdiction) is not listed in Appendix B: Eligible Jurisdictions, and the Applicant is of the opinion that the jurisdiction is eligible to apply to the Department for HOME funds, the Applicant should contact HCD at [email protected] before applying.

B. Eligibility for CHDOs

1. CHDO Applicants must meet all the requirements found at 24 C.F.R. § 92.2 at the time of application submittal and be certified by the Department prior to the execution of its standard agreement.

2. CHDO Applicants must upload the documents required to complete the certification review as part of its application package in the EUNA Grants Portal.

See Appendix C: CHDO Application for Certification for more information about the application process, CHDO eligibility, and a checklist for application items.

NOTE: Tribal governments are not CHDOs; however, tribally affiliated nonprofit organizations may apply for CHDO certification if they meet HUD’s CHDO requirements—including private nonprofit status and limitations on governmental control—at 24 C.F.R. § 92.2 and complete the Department’s certification process.

C. Eligibility for Developers
The Developer applying for HOME funding is the entity that the Department relies upon for experience and capacity and must control the Project during acquisition (site control), development, and occupancy.

California Department of Housing and Community Development 11 HOME 2025 Projects NOFA
Developers must satisfy all other eligibility requirements detailed in this NOFA including, but not limited to, experience and capacity requirements.

Developers may partner with a State Recipient Applicant in addition to submitting one application on its own, however both applications must not be for the same Project.

NAE-NFRTs may apply for HOME funds only as Developers and are not eligible to apply as State Recipients.

Developers may not submit separate HOME applications under the name of another entity over which they exercise control. A Limited Partnership (LP) is not considered an eligible Applicant/Awardee but may be the ultimate borrower.

D. Eligible Activities
Rental Projects
RENTAL NEW CONSTRUCTION PROJECTS — funds are provided to develop a specific multifamily Project on a specific site by a specific developer. Rental new construction Projects may be with or without acquisition.

RENTAL REHABILITATION PROJECTS — funds are provided to rehabilitate a specific rental Project on a specific site by a specific developer. An Applicant may apply for a Project with or without property acquisition. Applicants requesting Project activities funding for a rental Project consisting of multiple sites must be in compliance with 25 C.C.R. § 8303(b).

First-Time Homebuyer (FTHB) Projects
Construction financing must include the following:
• New construction or acquisition/rehabilitation/conversion to develop homes on specific site(s).
• All (100 percent) of the HOME investment rolls over to permanent financing to provide mortgage assistance to eligible first-time homebuyers when the units are sold to eligible homebuyers.

NOTE: Projects with multiple sites must have common ownership and financing.

NOTE: Pursuant 25 C.C.R. § 8205(b), Developers are not eligible to apply for First Time Homebuyer Projects unless the Projects will be developed on Native American Land.

E. Ineligible Use of Project Funds
HOME funds cannot be used for the costs listed in 24 C.F.R. § 92.214.

In accordance with the Department’s 2025-2026 Annual Action Plan, HOME funds may not be used to pay for the cost to refinance existing Project debt.

Pursuant to 24 C.F.R. § 92.206(a)(4), HOME funds cannot pay for the costs associated to construct or rehabilitate laundry and/or other community facilities located in separate

California Department of Housing and Community Development 12 HOME 2025 Projects NOFA
buildings containing no residential units. In addition, any community facilities must be for the exclusive use of the residents and their guests and cannot be available to the general public.

Pursuant to 24 C.F.R. § 92.206 (b)(2)(vi), federal HOME funds cannot be used to refinance single family or multifamily housing loans made or insured by any federal program, including CDBG.

Additionally, HOME funds cannot provide a duplication of benefit or supplant any other federal, state, or local funds previously committed to the Project.

F. Allocation of Funding
Table 3 - Allocation of Funding
Funding Targets Amount
CHDO Set-Aside $8,000,000
First-Time Homebuyer Projects Target $2,000,000
Rental Housing Target (Doesn’t include the
CHDO Set-Aside) $16,000,000
Native American Entity Target $8,000,000
G. Funding Amounts and Limits
Table 4 - Funding Limits by Project Activity
Rental new construction or rehabilitation with or
without acquisition $8,000,000
CHDO Operating Funds Grant for Rental Projects* $300,000 Administrative Funds for Rental Projects* $300,000
FTHB Projects $2,000,000
CHDO Operating Funds Grant for FTHB Projects* $200,000
Administrative Funds for FTHB Projects* $200,000
*State Recipients are only eligible for Administrative funds. CHDOs are only eligible for CHDO Operating Funds. Developers are NOT eligible for either Administrative funds or CHDO Operating Funds.

California Department of Housing and Community Development 13 HOME 2025 Projects NOFA
Minimum Amount of Funds per unit
The minimum amount of HOME funds that must be invested in any type of Project shall be $10,000 per unit. For example, for a Project with thirty (30) units, the minimum award amount would be $300,000.

Maximum Amount of Funds per Project
The maximum amount of HOME funds invested in a Project, shall not exceed the HOME maximum per-unit subsidy limits, established by HUD under 24 C.F.R. § 92.250 and can be found here.

FTHB activities are also subject to the HOME Homeownership Value Limits found here.

Project Limits
A Project may receive only one HOME award as a result of this NOFA.

Applicant Limits
An Applicant may receive up to two HOME awards for different Projects.

H. Program Income
The Department encourages Applicants to use HOME Program Income (PI) for their proposed Project activity. Applicants may request approval to use HOME PI on hand through this NOFA by including the amount of PI for the proposed Project activity in the Application Budget. HOME PI is not subject to the award limits as noted above (G.

Funding Amounts and Limits).

I. Periods of Affordability
Table 5 – Periods of Affordability
Tribal and Non-Tribal FTHB Projects*
Minimum Period of
Affordability (in years) HOME Assistance Per-Unit
5 Under $25,000
10 $25,000 to $50,000
15 Over $50,000
Tribal and Non-Tribal Rehabilitation of Existing Rental Housing**

California Department of Housing and Community Development 14 HOME 2025 Projects NOFA
Minimum Period of
Affordability (in years) HOME Assistance Per-Unit
10 Years Under $25,000
15 Years $25,000-$50,000
20 Years Over $50,000
New Construction and Rehabilitation with or without Acquisition** Minimum Period of
Affordability (in years) HOME Assistance Per-Unit
55 years Any Amount
New Construction and Rehabilitation with or without Acquisition on Native American Lands (as defined by 25 C.C.R. § 8201 (y)(1))** Minimum Period of
Affordability (in years) HOME Assistance Per-Unit
50 years Any Amount
*24 C.F.R. § 92.254
**25 C.C.R. § 8208
J. Forms of Assistance
HOME assistance may be provided in the form of a loan or a grant subject to 25 C.C.R. § 8205(C)-(H).

K. Administrative Costs and CHDO Operating Funds
For Rental Projects, State Recipients are eligible for a grant of up to $300,000 or 10 percent (10%) of the activity award amount, whichever is lower, for administrative costs pursuant to 24 C.F.R. § 92.207,and CHDOs are eligible for a grant of up to $300,000 or 10% of the activity award amount, whichever is lower, for CHDO operating funds pursuant to 24 C.F.R. § 92.208(a).

For First Time Homebuyer Projects, State Recipients are eligible for a grant of up to $200,000 or 10 percent (10%) of the activity award amount, whichever is lower, for administrative costs pursuant to 24 C.F.R. § 92.207, and CHDOs are eligible for a grant of up to $200,000 or 10 percent (10%) of the activity award amount, whichever is lower, for CHDO operating funds pursuant to 24 C.F.R. § 92.208(a).

California Department of Housing and Community Development 15 HOME 2025 Projects NOFA
III. State and Federal Requirements
A. Property Standards
Pursuant to 24 C.F.R. § 92.251, as applicable, and as may be amended by HUD, housing that is acquired, constructed or rehabilitated with HOME funds must meet all applicable local codes and standards at the time of Project Completion.

Projects involving rehabilitation must comply with the Department’s HOME/NHTF Multifamily Rehabilitation Standards. Pursuant to 25 C.C.R. § 8309(b) and 24 C.F.R. §

92.251(b)(1)(ix), the Department requires rental rehabilitation Project applications to submit a third-party physical/capital needs assessment and a Replacement Reserve Study (RRS) with a 20-year forecast.

Projects involving new construction must comply with the requirements of 25 C.C.R. § 8300 et seq. and 24 C.F.R. § 92.251(a), including, but not limited to, requirements related to accessibility, disaster mitigation, written cost estimates, construction contracts and documents, construction progress inspections, and broadband infrastructure.

B. Timeframes for Use of Funds
In previous years, HUD has waived the requirement that HCD commit HOME funds within 24 months of receiving the allocation. However, for FY25, that requirement was not waived. Therefore, HOME recipients are required to enter into a Standard Agreement with HCD by January 29, 2027.

Table 6 - HOME Project Activity Deadlines
Project Commitment
(see Section I (E) page 9) January 29, 2027
Construction Loan Closing
Within 12 months from Project Commitment
execution date (in accordance with 24 C.F.R.
§ 92.2)
Project Completion and Expenditure Deadline Within 4 years from Project Commitment of HOME funds
C. Match Requirements
HOME match requirements are waived for applications pursuant to this NOFA.

California Department of Housing and Community Development 16 HOME 2025 Projects NOFA
D. Transition Reserve Policy
In the presence of Project Based Vouchers, Projects must be in compliance with the Department’s Pooled Transition Reserve Policy Administrative Memorandum dated January 3, 2023, (Administrative Notice Number 22-08) and amended on August 8, 2023, (Administrative Notice Number 23-01).

E. Annual Monitoring Fees for Multifamily Projects
Pursuant to 24 C.F.R. § 92.214(b)(1)(i), the Department will charge fees to cover the cost of ongoing monitoring and physical inspection of HOME Projects during the state period of affordability. HOME will charge these fees as described below.

Developer and CHDO Projects
The Department charges an annual monitoring fee as follows:

Table 7 – Estimated 2026 Monitoring Fees
Number of HOME Units Annual Fee
12 or fewer $ 6,640
13 to 24 $10,806
25 to 36 $13,122
37 to 48 $13,506
49 to 60 $16,151
61 or more $18,909
To cover inflation, this annual monitoring fee is Projected to increase annually at 3 percent (3%) following the Department's analysis of actual costs for monitoring. The annual monitoring fee will be based on the estimated 2026 fee schedule and will be adjusted upward at an annual rate of 3 percent (3%) to account for inflation. The starting monitoring fee will be calculated based on the year of permanent closing of escrow, applying the 3 percent (3%) annual increase from the 2026 baseline.

California Department of Housing and Community Development 17 HOME 2025 Projects NOFA
State Recipient Projects
Pursuant to 24 C.F.R. § 92.214(b), State Recipients may also charge their borrowers annual monitoring fees to cover the actual ongoing costs to monitor and conduct physical inspections, as described below:

1. The monitoring fee shall be based on the State Recipient’s analysis of actual costs for monitoring the Project and must be approved by the Department; and

2. Twenty-five percent (25%) of the annual monitoring fee received for the Project by the State Recipient must be paid to the Department to cover the Department’s monitoring costs. For more guidance on establishing a monitoring fee, see HOME fires Vol. 14, No. 2: Guidance on Establishing a HOME Monitoring Fee.

Please note: HUD’s requirements for calculating a monitoring fee differ from the state’s UMR requirements.

Native American Entity Projects
Pursuant to this NOFA, the Department waives monitoring fees for Native American Entity Projects during the state period of affordability.

IV. Application Review
A. Minimum Application Requirements (Threshold)
Applications for HOME Projects are required to meet the minimum requirements outlined in this NOFA, 25 C.C.R. § 8200 et seq., and 24 C.F.R. Part 92.

Applications must meet the following minimum requirements at the time of application in order to move forward to the rating and ranking process:

1. The Applicant must submit a complete application in a format made available by the Department by the deadline specified in this NOFA and pursuant to 25 C.C.R. § 8211, and the application forms provided by the Department must not be altered or modified. Appendix F: Organizational Documents Checklist and Appendix G: Project Documents Checklist provide a complete list of required uploads for the application.

2. The Applicant is eligible to apply for funding, in accordance with Section II.A-C of this NOFA.

3. All rules and requirements in this NOFA also apply to Native American Entities, unless this NOFA specifically says otherwise.

4. The Applicant must propose at least one eligible activity pursuant to 25 C.C.R. § 8205.

5. The Applicant must propose an eligible use of funds pursuant to 25 C.C.R. § 8205, 8210, and 24 C.F.R. §92.206.

California Department of Housing and Community Development 18 HOME 2025 Projects NOFA

6. The Applicant must have no unresolved audit findings pursuant to 25 C.C.R. § 8204(a)(1)(D)(ii) and (2)(C)(i).

7. The Applicant must demonstrate its capacity for carrying out activities assisted with HOME funds. Awardees entering into a Standard Agreement with the Department must have capacity, cannot be shell entities, and cannot contract out for capacity (with limited exceptions for new CHDO’s applying for certification via Appendix C: CHDO Application for Certification).

8. Cities, counties, and local public housing authorities must provide documentation satisfactory to the Department that they comply with the submittal requirements of cost principles and audit requirements at 2 C.F.R. § 200.512. Any outstanding findings contained in the audit report may impact on the ability of the Department to grant an award through this NOFA.

9. The Applicant and any member of its Project team must not be on the list of debarred contractors at https://www.sam.gov/SAM/ pursuant to 25 C.C.R. § 8204(a)(1)(D)(iii) and 8204(a)(2)(C)(ii).

10.CHDO applications must contain procedures for ensuring effective Project control pursuant to 24 C.F.R. § 92.300(a)(1) and 25 C.C.R. § 8204(a)(2)(D).

11.There is no pending or threatened litigation that could affect implementation of the proposed Project.

12.The Applicant(s) (not the ultimate borrower) must demonstrate documented site control of the Project at the time of application. Site control is subject to the HOME funding award as required by 25 C.C.R. § 8212(a)(6)(B), 25 C.C.R. § 8303, and 24 C.F.R. Part 92, including but not limited to, demonstrating site control by one of the following:
• Acceptable evidence of site control may include: a conditional purchase agreement or enforceable option for projects involving acquisition, a lease option agreement from DGS and/or HCD as verified by HCD’s Excess Sites Team, a deed or lease, or a title report showing ownership of the property vested in the applicable entity.
• Fee title, which, for tribal trust land, may be evidenced by a title status report (TSR) or an attorney’s opinion regarding chain of title and current title status. • A leasehold interest on the Project property with provisions that enable the lessee to make improvements on and encumber the property, provided that the terms and conditions of any proposed lease shall permit, prior to loan closing, compliance with all HOME requirements, including compliance with 25 C.C.R. § 8316. Land Acquisition and Leaseback shall be done prior to the financing closing.
• An option to purchase is obtained, conditioned on the responsible entity’s determination to proceed with, modify, or cancel the Project based on the results of a subsequent environmental review, and the receipt of an Authority to Use Grants Funds (“AUGF”) from the Department for State Recipient