TITLE
Recommendation to adopt resolution authorizing the submission of an application to the California State Department of Housing and Community Development to receive a Prohousing Designation; and
Authorize City Manager, or designee, to execute all documents and agreements necessary to participate in the Prohousing Designation Program. (Citywide)
DISCUSSION
In 2019, Assembly Bill (AB) 101 established the Prohousing Designation Program (Program) administered by the California Department of Housing and Community Development (HCD). The Program provides incentives to cities and other jurisdictions in the form of additional points or other preference in the scoring of competitive funding applications for housing, community development, and infrastructure grant programs. Jurisdictions that receive a Prohousing Designation will have a competitive advantage in grant funding for the acceleration of housing production. HCD programs that add Prohousing Designation points to their scoring include the Affordable Housing and Sustainable Communities (AHSC) Program and the Infill Infrastructure Grant Program, both of which the City of Long Beach (City) has applied for in the past. The Program is designed to further assist jurisdictions that are compliant with their General Plan Housing Elements and have enacted or are in the process of enacting policies that promote housing. The program is consistent with the City’s overall housing strategy as well as the current emergency measures related to homelessness.
Eligibility to receive the Prohousing Designation requires the applicant to have an adopted Housing Element, be current on submission of the Annual Progress Report, and be in compliance with applicable state housing law. Applicants must also submit a formal Resolution for the Program. Applicants that meet these requirements qualify for the validation phase of the application, which is based on the following four scoring categories:
• Favorable Zoning and Land Use;
• Acceleration of Housing Production Timeframes;
• Reduction of Construction and Development Costs; and,
• Providing Financial Subsidies.
A minimum score of 30 points is required to receive a Prohousing Designation, and applicants must demonstrate that they have enacted or proposed at least one policy in each of the four categories. An initial review by City staff indicates the City will receive a score in excess of 30 due to the programs and reforms already adopted by the City Council in the form of the Land Use Element (2019), Inclusionary Housing (2021), Housing Element (2022), Consolidated Plan (2022) and other related housing efforts.
If this item is approved, City staff will submit the application and Resolution to HCD for review. HCD will then either approve or provide feedback on the application within 60 days. If awarded, the Prohousing Designation remains valid for three years.
This matter was reviewed by Principal Deputy City Attorney Rich Anthony on January 31, 2023 and by Revenue Management Officer Geraldine Alejo on February 15, 2023.
TIMING CONSIDERATIONS
City Council action is requested on March 7, 2023 so that the City can submit the application for the Program and score valuable additional points on an upcoming competitive application for AHSC funds.
FISCAL IMPACT
There is no fiscal or local job impact associated with this recommendation. With the approval of this recommendation, the City will submit an application to the HCD for Prohousing Designation. If awarded, the City will be competitive for various affordable housing funding programs totaling several million dollars in loans and grants for multiple projects over the next three years. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CHRISTOPHER KOONTZ
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER