REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning & Development Department PHIL SKEI, Assistant Director Planning & Development Department BY: MAYRA MERINO, Senior Management Analyst Planning & Development Department SUBJECT ..Title ***RESOLUTION - Authorizing submission of an application for and acceptance of funding from the California Department of Housing and Community Development Prohousing Incentive Program (PIP) Round 4 and authorizing the City Manager or designee to sign all necessary implementing documents. (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends that the City Council adopt a resolution authorizing the City Manager, or designee, to submit an application to the State of California Department of Housing and Community Development (HCD) for Round 4 of the Prohousing Incentive Program (PIP), accept up to $2,000,000 in grant funding, and execute all required documents necessary to implement the program. Funding will be allocated to support the City's Local Housing Trust Fund. EXECUTIVE SUMMARY The Prohousing Incentive Program (PIP), administered by the State of California Department of Housing and Community Development (HCD), provides grant funding to jurisdictions with an approved Prohousing Designation. The program supports activities that accelerate the production, preservation, and facilitation of affordable housing. On September 30, 2025, HCD released a Notice of Funding Availability (NOFA) announcing approximately $8,000,000 in funding for PIP Round 4. Upon receiving its Prohousing Designation, the City of Fresno will be eligible to apply for up to $2,000,000 in funding. The application deadline is March 31, 2026. BACKGROUND The Prohousing Incentive Program (PIP) is funded through the Building Homes and Jobs Trust Fund, established by Senate Bill 2 (Atkins, 2017), and is intended to encourage jurisdictions to adopt policies that promote housing development. PIP grants may be used for a range of planning or implementation activities related to housing and community development, including as matching contributions to local housing trust funds. In February 2023, the City submitted an application to the Prohousing Designation Program and received an eligible designation score, enabling it to qualify for PIP funding. Subsequently, in May 2023, the City was awarded $2,064,891.45 through PIP Round 1 to support the City's Local Housing Trust Fund. On September 30, 2025, HCD issued the NOFA for PIP Round 4, making approximately $8,000,000 available statewide for eligible planning and implementation activities under Health and Safety Code Section 50470(b)(2)(D). Based on its population size and anticipated final Prohousing Designation score, the City of Fresno may qualify for up to $2,000,000 in Round 4 funding to further capitalize its Local Housing Trust Fund. Upon receipt of its anticipated Prohousing Designation, the City will submit its application to HCD by the March 31, 2026, deadline. ENVIRONMENTAL FINDINGS This resolution is not considered a project under the California Environmental Quality Act (CEQA) and is therefore exempt from environmental review. LOCAL PREFERENCE Local preference does not apply, as this resolution pertains to the submission of a State funding application. FISCAL IMPACT Adoption of this resolution does not impact the City's General Fund. If funds are awarded, they will be appropriated through an Annual Appropriation Resolution. Attachment: Resolution Authorizing application to PIP Round 4