REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Authorizing the Application for and Receipt of Prohousing Incentive Program Funds
Report
BACKGROUND
In 2019, Assembly Bill No. 101 established the Prohousing Designation Program (PDP) to provide incentives to jurisdictions that comply with housing laws and Housing Element requirements and have adopted local policies that facilitate housing production. The program is administered by the California Housing and Community Development Department (HCD), and jurisdictions awarded the Prohousing Designation receive a competitive advantage for critical affordable housing and infrastructure programs and the ability to apply for the Prohousing Incentive Program (PIP).
The PIP complements the PDP and is designed to encourage cities and counties to obtain the Prohousing Designation. The program is funded through Senate Bill No. 2 (2017, Atkins), which established the Building Homes and Jobs Trust Fund.
On December 10, 2024, City Council adopted a resolution authorizing the City's application to the PIP (RTC No. 24-1160). However, the City did not meet the minimum threshold requirements at the time because it had not yet received the Prohousing Designation. On May 27, 2025, HCD issued an award letter announcing the City's designation as a Prohousing Jurisdiction. As a result, the City is now eligible to apply for PIP funds.
On September 30, 2025, HCD released a PIP Notice of Funding Availability for an estimated $8 million in total funds. PIP applications must be submitted by March 31, 2026, along with an authorizing resolution (Attachment 1). Awards are tentatively scheduled to be announced in June 2026.
EXISTING POLICY
Sunnyvale General Plan
Housing Element
GOAL H-5: Promote equal housing opportunities for all residents, including Sunnyvale's special needs populations, so that residents can reside in the housing of their choice.
Policy H-5.13: Participate in the County Collaborative on Affordable Housing and ...
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