HomeMy WebLinkAboutItem 6e. Authorize application for Prohousing Incentive Funds Item 6e
Department: Community Development
Cost Center: 4008
For Agenda of: 2/18/2025
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
SUBJECT: AUTHORIZE APPLICATION FOR PROHOUSING INCENTIVE FUNDS
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing application to and participation in the state Prohousing
Incentive Program,” authorizing the City Manager, or Community Development Director
as designee, to:
1. Submit a Prohousing Incentive Program Application to the California Department
of Housing and Community Development; and
2. If the application is approved by HCD, execute all documents necessary or
appropriate to participate in the Prohousing Incentive Program.
POLICY CONTEXT
The 2023-2025 Financial Plan Major City Goal for Housing and Homelessness is to:
Support the expansion of housing options for all, and continue to facilitate
the production of housing, including the necessary supporting
infrastructure, with an emphasis on affordable and workforce housing as
well as accessibly connected development. Collaborate with local non-profit
partners, nongovernmental agencies, the county, the state, and federal
governments to advocate for increased funding and implementation of
comprehensive and effective strategies to prevent and reduce
homelessness.
The California Department of Housing and Community Development Prohousing
Incentive Program (PIP) provides funding to facilitate below-market-rate housing in
advancement of this goal. The PIP is also consistent with the City’s policies established
in the City’s General Plan Housing Element, including:
Program 6.17. Financially assist in the development of 20 housing units per
year that are affordable to extremely low, very-low, low- and moderate
income households during the planning period using State, Federal, and
local funding sources, with funding priority given to projects that result in the
maximum housing benefits for the lowest household income levels.
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Item 6e
Program 8.20. Actively seek and collaborate with non-profit housing
providers to jointly) apply for two revenue sources each year during the
planning period for State, Federal, and local funding sources to financially
assist with the development of housing for persons with developmental
disabilities.
DISCUSSION
Background
The California Prohousing Designation Program (PDP) was established in accordance
with Assembly Bill 101 and is administered by the California Department of Housing and
Community Development (HCD). The PDP creates incentives for jurisdictions that are
compliant with housing laws, housing element requirements, and have enacted
Prohousing local policies that go beyond existing law.
On February 1, 2024, the City was designated a Prohousing Jurisdiction under the
Prohousing Designation Program by HCD. This designation allows a competitive
advantage for critical affordable housing and infrastructure grant programs. It also
provides eligibility for California’s Prohousing Incentive Program (PIP) for use towards
planning and implementation activities related to housing and community development.
The Program is funded through Chapter 364, Statutes of 2017, S enate Bill 2 which
established the Building Homes and Jobs Trust Fund. The Fund utilizes real estate
transaction fees collected at a county level in all counties at the time of recording
documents for every real estate instrument to establish a permanent s ource of funding.
Five percent of annual collections are deposited in a fund to be used for an incentive
program.
On August 1, 2024, the City was awarded $750,000 in funds from Round 2 of the PIP,
which will go towards supporting the development and construction of several affordable
housing communities in the City. These include developments by People’s Self -Help
Housing, Housing Authority of San Luis Obispo, Transitions Mental Health Association,
and Smart Share Housing Solutions. The PIP funds are awarded on a reimbursement
basis.
On December 20, 2024, the City and HCD executed the Standard Agreement for the
Round 2 PIP funds. Staff are working with the above developers to collect eligible costs
for reimbursement by HCD.
The PIP awards funding based on the Eligible Applicant’s Prohousing Designation
Program Score1 and according to geographic area. Cities that have already received PIP
funds are eligible to apply in subsequent funding rounds for additional funds. Cities are
not required to have spent their initial funding awards in order to be eligible to apply for
and receive subsequent awards of funding.
1 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).
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Item 6e
A Notice of Funding Availability (NOFA) Round 3 – Prohousing Incentive Program was
issued by HCD on August 15, 2024. Staff is seeking City Council authorization at this
time, though the application was submitted prior to the NOFA Round 3 deadline of
December 31, 2024. HCD has issued an extension to February 28, 2025, to submit an
authorizing resolution. Staff has determined that the application requires a new City
Council authorizing resolution in addition to the Prohousing Designation, and the PIP
application will be withdrawn if not authorized by City Council2. Eligible uses for PIP funds
include a variety of activities, such as the predevelopment, development, acquisition,
rehabilitation, and preservation of multifamily, residential live -work, and rental housing
that is affordable to extremely low-, very low-, low-, and moderate-income households3.
The City is eligible to receive the base award of $250,000 plus the bonus award of
$500,000 for cities with a Prohousing Designation Application Score of over 50, bringing
the total potential award amount to $750,000.
Should funding be awarded, it is recommended that the funds be deposited into the City’s
Affordable Housing Fund to use for 1) financial assistance towards 100 percent affordable
housing projects that are “shovel ready” as determined by staff , and 2) down payment
assistance to eligible prospective homeowners of deed-restricted affordable housing
units. Proposed use #1 (financial assistance towards 100 percent affordable housing
projects) is the same use as what the City was awarded PIP funds for previously. This
allows the City to directly assist affordable housing projects in the City that are in need of
gap financing or encounter unexpected financial challenges during plannin g and
development, as identified in Housing Element Program 6.17. Down Payment Assistance
is another important incentive identified in Housing Element program 2.11 that can bolster
BMR homeownership opportunities.
Previous Council or Advisory Body Action
On June 20, 2023, the City Council approved Resolution No. 11432 (2023 Series)
authorizing submittal of an application for a California Prohousing Designation.
On April 2, 2023, the City Council approved Resolution No. 11489 (2024 Series)
authorizing application to and participation in the Prohousing Incentive Program.
Public Engagement
This item is on the agenda for the February 18, 2025 City Council meeting and will follow
the proper posting and notification requirements. Public comment on the item can be
provided to the City Council through written correspondence prior to the meeting and
through public testimony at the meeting.
2 HCD staff has indicated application submittal may be made with a City Council authorizing Resolution
placed on an upcoming agenda.
3 Eligible Applicants must use awarded funds towards planning or implementation activities related to
housing and community development limited to activities that conform with eligible uses pursuant to Health
and Safety Code section 50470(b)(2)(D).
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Item 6e
ENVIRONMENTAL REVIEW
The proposed report contemplates the receipt of state incentive funds, which is not a
project under CEQA, and is therefore exempt from CEQA review (CEQA Guidelines
Section 15378(b)(4).) Future projects that utilize PIP funding will undergo CEQA review
and clearance.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2024-2025
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A $ $ $
State
Federal
Fees
Other:
Total $ $ $ $
There will be no negative fiscal impact to the City. Local governments with Prohousing
Designation are eligible to apply for new PIP grant funding, a $26 million state investment
from the Building Homes and Jobs Trust Fund. Applying for these funds could increase
funding availability for the identified housing projects by up to $750,000. These funds, if
awarded will go directly to the City’s Affordable Housing Fund.
ALTERNATIVES
1. Council could choose not to apply for PIP funds at this time and apply for future
rounds dependent upon future Notices of Funding Availability for the program.
Staff recommends applying for the current round of PIP to make fun ds available for
critically needed below market rate housing projects.
2. Council could choose to apply for PIP funds for a different eligible activity. Staff
could identify other potential eligible uses that align with the City housing work
program, however, the most urgent need for the funds is to leverage critically needed
below market rate housing units. Staff does not recommend this alternative due to the
time sensitive nature of the grant program application. Additionally, there is flexibility
in changing the uses of program funds after application submission. Staff will
investigate opportunities and apply where eligible for additional PIP funds in future
rounds.
ATTACHMENTS
A - Draft Resolution authorizing application to the State Prohousing Incentive Program
B - Prohousing Incentive Program Application
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R ______
RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING APPLICATION TO AND
PARTICIPATION IN THE PROHOUSING INCENTIVE PROGRAM
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 as the Prohousing
Incentive Program or “PIP”); and
WHEREAS, on February 1, 2024, the City of San Luis Obispo received a
Prohousing Designation from the Department; and
WHEREAS, the City Council of the City of San Luis Obispo 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 issued Guidelines and Application on August 15, 23,
2024, for grant funding in the amount of approximately $8 million for Round 3 of the PIP;
and
WHEREAS, the City Council of the City of San Luis Obispo has duly considered
all evidence, and recommendations by staff.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Manager of the City of San Luis Obispo, or the Community
Development Director as designee, is hereby authorized and directed to submit an
Application to the Department, and to apply for the PIP grant funds in a total amount not
to exceed $750,000.
SECTION 2. In connection with the PIP grant, if the Application is approved by the
Department, the City Manager of the City of San Luis Obispo is authorized and directed
to enter into, execute, and deliver on behalf of the A pplicant, a State of California
Agreement (Standard Agreement) for the awarded amount and any and all other
documents required or deemed necessary or appropriate to evidence and secure the PIP
grant, the City’s obligations related thereto, and all amendments thereto; and
SECTION 3. The City 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
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Resolution No. _____ (2025 Series) Page 2
R ______
Standard Agreement. Pursuant to the Guidelines and in conjunction with the terms of the
Standard Agreement, the City hereby agrees to use the funds for eligible uses and
allowable expenditures in the manner presented and specifically identified in the
approved Application.
SECTION 4. The City Manager is authorized to execute and deliver the Application
and the Program Documents on behalf of the City of San Luis Obispo for participation in
the Program.
Upon motion of ___________, seconded by Council Member ___________, and
on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 25.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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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
August 15, 2024
MEMORANDUM FOR: ALL POTENTIAL APPLICANTS
FROM: MEGAN KIRKEBY, DEPUTY DIRECTOR
DIVISION OF HOUSING POLICY DEVELOPMENT
SUBJECT: NOTICE OF FUNDING AVAILABILITY ROUND 3 –
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 2024 projected through the remainder of the calendar year. Final
proceeds will be available by March 2025 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.
In order to be eligible for grant funding under this NOFA, completed application
materials must be submitted by email to: ProhousingIncentive@hcd.ca.gov no later than
December 31, 2024. In order to remain eligible for an award under this NOFA,
applicants must obtain a Prohousing Designation no later than December 31, 2024.
Prohousing Incentive Program Round 3 Timeline
NOFA Release August 15, 2024
Application Due Date December 31, 2024
Prohousing Designation Due Date December 31, 2024
Award Announcements April 2025
In addition to the information contained within this NOFA, the NOFA application and
Program Guidelines are posted on the Department’s PIP website. For future updates on
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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 ProhousingIncentive@hcd.ca.gov.
Attachment
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California Department of Housing and Community Development Page 1
Prohousing Incentive Program
Prohousing Incentive Program
Notice of Funding Availability
Round 3
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: ProhousingIncentive@hcd.ca.gov
August 2024
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Contents
I. Overview ....................................................................................................................................... 3
A. Notice of Funding Availability ................................................................................................... 3
B. Timeline ................................................................................................................................... 3
C. Authorizing Legislation, Regulations, and Guidelines .............................................................. 3
D. NOFA and Guidelines .............................................................................................................. 3
II. Eligibility ....................................................................................................................................... 4
A. Eligible Applicants .................................................................................................................... 4
B. Threshold Requirements .......................................................................................................... 4
C. Eligible Uses ............................................................................................................................ 5
III. Program Funding Amounts and Terms ..................................................................................... 6
A. Eligible Award Calculation ....................................................................................................... 6
IV. Application Requirements ........................................................................................................ 7
A. Application Content………………………………………………………………………………….11
B. Application Submittal ............................................................................................................... 7
C. Application Process ................................................................................................................. 8
V. Scoring ......................................................................................................................................... 8
A. Geographic Categories ............................................................................................................ 8
B. Tie Breaker .............................................................................................................................. 9
VI. Right to Modify or Suspend and Final Decision-making ..................................................... 10
VII. Disclosure of Application ....................................................................................................... 10
VIII. Appeals .................................................................................................................................... 10
A. Basis of Appeals……………………………………………………………………………………..15
B. Appeal Process and Deadlines .............................................................................................. 11
C. Decision………………………………………………………………………………………………16
IX. Award Announcements and Contracts ................................................................................. 11
A. Award Announcements .......................................................................................................... 11
B. Contracts ............................................................................................................................... 11
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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
December 31, 2024. In order to remain eligible for an award, Eligible
Applicants must obtain Prohousing Designation by December 31, 2024.
The Department encourages early applications.
Table 1: Round 3 Timeline
NOFA Release Date: August 15, 2024
Application Due Date December 31, 2024
Prohousing Designation Due Date December 31, 2024
Award Announcements April 2025
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 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/programs-
active/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
Housing and Community Development, Division 1, Chapter 6, Subchapter 6.6,
Sections 6600 through 6608, Consecutive Prohousing Designation Program).
D. NOFA and Guidelines
Applications submitted under this NOFA are subject to the August 2024, PIP
Guidelines.
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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 in order 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 not meeting 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 Section 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 completed Prohousing Designation application
(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 6608, Consecutive Prohousing Designation
Program), with an authorizing resolution, must be submitted prior to or in
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conjunction with the applicant’s PIP application. PIP awards cannot be
made until Prohousing Designation is obtained, as determined by the
Department.
4. A complete application as determined by the Department.
5. An authorizing resolution authorizing submittal of the application to the
Program that materially comports with the Program’s requirements and is
legally sufficient as determined in 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 by the sole
discretion of HCD.
7. Demonstration of meeting threshold criteria shall be determined by the
Department in its sole and absolute discretion. No documentation of
meeting threshold requirements is required in the application unless
requested by the Department.
C. Eligible Uses
Eligible Applicants must use award funds towards planning or implementation
activities related to housing and community development 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 subdivision (d) of Section 34176
of the Health and Safety Code.
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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
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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 award amounts. For example, two
jurisdictions between 50,000 and 99,999 people could submit a proposal
for up to $1 million in base awards.
IV. Application Requirements
A. Application Content
1. Eligible Applicants may request an allocation of funds by submitting a complete
application to the Department.
2. Application 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/prohousing-
incentive-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 completed, 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 December 31, 2024.
3. All applications must be submitted by email to: ProhousingIncentive@hcd.ca.gov.
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C. Application Process
1. Applications will be reviewed for completeness, eligibility, and for meeting
threshold requirements.
2. Eligible Applicants will have until December 31, 2024, to obtain
Prohousing Designation. After this date, HCD will rank Eligible Applicants
that met threshold requirements 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: Imperial, Los Angeles, Orange, Riverside, San
Bernardino, Ventura, and San Diego
b) Bay Area: Alameda, Contra Costa, Marin, Napa, San Mateo, Santa
Clara, Solano, Sonoma, San Francisco
c) San Joaquin Valley: Fresno, Kern, Kings, Madera, Merced, San
Joaquin, Stanislaus, Tulare
d) Sacramento Area: Amador, El Dorado, Placer, Sacramento, Sutter,
Yolo, Yuba
e) Central Coast: Monterey, San Benito, San Luis Obispo, Santa
Barbara, Santa Cruz
f) North State and Sierra Nevada: Alpine, Butte, Calaveras, Colusa,
Del Norte, Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa,
Mendocino, Modoc, Mono, Nevada, Plumas, Shasta, Sierra,
Siskiyou, Tehama, Trinity, 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/).
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Geographic Region 2030
Population
Projection
Percent of
2030 State
Population
Percent of
Overall Funds
Available to
Applicants in
Region
Southern California 21,930,346 55.6% 41.7%
Bay Area 7,604,103 19.3% 14.5%
San Joaquin Valley 4,496,637 11.4% 8.6%
Sacramento Area 2,703,924 6.9% 5.1%
Central Coast 1,520,779 3.9% 2.89%
North State and Sierra
Nevada
1,175,092 3% 2.2%
Totals 39,430,871 100% 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 of funds being depleted such that a partial award is indicated,
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 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.
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.
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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. Applicant shall have the right to appeal a decision of the Department relating to
another applicant’s application (e.g., eligibility, award).
3. 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.
4. 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.
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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 are to be submitted to the Department at
ProhousingIncentive@hcd.ca.gov 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 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 April 2025. Award
announcements will be posted on the PIP website at
https://www.hcd.ca.gov/grants-and-funding/programs-active/prohousing-
incentive-program.
B. Contracts
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.
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.
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.
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