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ADOPT A RESOLUTION AUTHORIZING AN APPLICATION FOR, AND IF AWARDED, ACCEPT AND APPROPRIATE PROHOUSING INCENTIVE PROGRAM FUNDS
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager, or designee, to submit a grant application to the California Department of Housing and Community Development for the Pro-housing Incentive Pilot Program;
2. Authorize the City Manager, or designee, to accept the grant award, enter into, execute, and deliver on behalf of the City of Stockton any and all documents including applications, agreements, amendments, and payment requests deemed necessary to secure the Pro-housing Pilot Program grant, and make all necessary appropriations in compliance with and for the purposes stated in the grant application; and
3. Authorize the City Manager, or designee, to accept and to appropriate grant revenues and expenditures; and
4. Authorize the City Manager, or designee, to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
Staff recommends submitting a grant application to the California Department of Housing and Community Development (HCD) under Round 4 of the Pro-housing Incentive Pilot (PIP) Program. As a Pro-housing Designated jurisdiction, the City of Stockton is eligible to apply for PIP funding to use toward planning and implementation activities related to housing and community development.
DISCUSSION
Background
HCD developed the Pro-housing Designation Program to award jurisdictions additional points or other preferences in the scoring of competitive applications for funding under programs that support housing, transportation, infrastructure, land use, and related objectives. In 2023, the City of Stockton applied for and received the Pro-housing Designation by HCD, making the City eligible for funding from the PIP Program (Attachment A - Resolution 2023-03-07-1205-01).
Based on the Round 4 Program guidelines, the City is eligible for a $1,000,000 base award, with the potential to receive a bonus award of up to $500,000.
Present Situation
The deadline to apply for Round 4 funding under the PIP Program is March 31, 2026.
Funds through the PIP Program must be used toward planning or implementation activities related to housing and community development, including:
• 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.
• 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.
• Efforts to acquire and rehabilitate foreclosed or vacant homes.
Based on the demonstrated community need for predevelopment and construction funding for new affordable housing, staff are structuring the PIP Program application to allow PIP funding to augment the ongoing Affordable Housing Notice of Funding Availability (NOFA) process. If funding is awarded, this will provide the greatest level of flexibility to deploy these resources to maximize the number of affordable housing units.
FINANCIAL SUMMARY
The City Manager, or designee, will be 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 of $1,500,000. There is no matching funds requirement for the PIP Program. Funding will be appropriated in the Special Grant Fund, Housing Division.
Attachment A - Resolution 2023-03-07-1205-01