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 101 established the Prohousing Designation Program to provide incentives for jurisdictions that have adopted policies that facilitate housing production. The program, which is administered by the California Department of Housing and Community Development (HCD), created a new process by which jurisdictions could apply for a special "Prohousing" designation. The City submitted a formal application for the Prohousing Designation Program to HCD on December 6, 2024.
One of the incentives available for Prohousing-designated jurisdictions is the Prohousing Incentive Program (PIP). PIP is intended to reward Prohousing-designated jurisdictions by providing additional grant funds for housing-related projects and programs. HCD makes PIP funds available through an annual Notice of Funding Availability (NOFA). On August 15, 2024, HCD released a PIP NOFA for an estimated $8 million in total funds. Of that total, $1,160,000 is allocated specifically for the Bay Area region.
Although the City's Prohousing Designation Program application is currently pending, the City may still apply for PIP. If awarded the Prohousing designation by December 31, 2024, the City will be eligible to receive PIP funds. PIP applications must be submitted by December 31, 2024 along with an authorizing resolution (Attachment 1). Awards are tentatively scheduled to be announced in April 2025.
EXISTING POLICY
General Plan, Housing Element
Goal H-2: Assist in the provision of affordable housing to meet the diverse needs of Sunnyvale's lower- and moderate-income households.
Policy H-2.1: Leverage local financial assistance with other sources of funding and identify new funding sources for affordable housing to maximize the number of affordable units and to reach the deepest level of affordability.
Goal H-5: Promote equal hou...
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