RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution authorizing the City Manager or his designee to execute the necessary application, standard agreement and relevant documents for the second round of Prohousing Incentive Pilot (PIP) grant funding from the State of California Housing and Community Development Department.
| BACKGROUND
The Prohousing Designation Program was established by the State of California Housing and Community Development Department (HCD) in 2019 to help meet California’s housing goals. The Prohousing Designation is given to cities that have sufficiently removed barriers to housing. The designation makes affordable housing projects more competitive for state and federal funding and could help accelerate the timeline for future projects. The Prohousing Incentive Pilot Program (PIP) complements the Prohousing Designation Program and is designed to encourage cities and counties to obtain the Prohousing Designation. The program is funded through Chapter 364, Statutes of 2017 (SB 2, Atkins), which established the Building Homes and Jobs Trust Fund. The PIP Program awards funds based on jurisdiction size and Prohousing Designation Program score. Eligible activities include predevelopment, development acquisition, rehabilitation and preservation of multifamily rental housing for low income households.
In January of 2024, HCD released a Notice of Funding Availability (NOFA) for approximately $9.5 million in funds for jurisdictions that have the Prohousing Designation. To encourage continued development opportunity in Roseville, the Housing Division requests to apply for the second round of PIP funding. Based on HCD’s formula, the City is eligible to apply for a maximum of $1,210,000. Should the City receive an award, the Housing Division will release a NOFA requesting applications specifically to address predevelopment and/or development costs for affordable housing projects.
Staff requests Council authorization to complete and submit an application for PIP funds (Attachment 1 - Draft PIP application). Application materials must be submitted to HCD no later than March 15, 2024. If the City is successful, staff will bring forward the necessary loan and regulatory agreement documents required for development of projects for Council review and consideration.
| FISCAL IMPACT
PIP funding is provided as a reimbursable state grant to the City. These grants are used to offset potential costs to the General Fund, while serving the low-income community and supporting the development of affordable housing. The recommended action does not impact the City's General Fund.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The funding application meets the above criteria and is not subject to CEQA. No additional environmental review is required.
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CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
| Respectfully Submitted,
Sara Thornton-Garcia, Housing Analyst
Melissa Anguiano, Economic Development Director | | | 
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Dominick Casey, City Manager
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