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 funds from the California Department of Housing and Community Development Prohousing Incentive Program (PIP) Round 3, and authorizing the City Manager or designee to sign all necessary implementing documents. (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends City Council approve a Resolution authorizing submission of a grant application and acceptance of funds from the State of California Department of Housing and Community Development (HCD) Prohousing Incentive Program (PIP) Round 3 and authorize the City Manager or designee to sign all necessary implementing documents. EXECUTIVE SUMMARY The State of California Department of Community and Development (HCD) has established the Prohousing Incentive Program (PIP) to provide additional funding to local governments that achieve a Prohousing Designation, thereby accelerating the production and preservation of affordable housing. On August 15, 2024, HCD released a Notice of Funding Availability (NOFA) for approximately $8,000,000 under PIP Round 3. As an eligible entity, the City intends to apply for this funding. If awarded, the City may receive up to $1,400,000 for its Local Housing Trust Fund. The application deadline is December 31, 2024. BACKGROUND HCD's Prohousing Incentive Program is a State investment funded by the Building Homes and Jobs Trust Fund, established by Chapter 364, Statutes of 2017 (SB Atkins). The program is designed to boost the development and conservation of affordable housing. PIP incentivizes jurisdictions to participate in HCD's Prohousing Designation Program, linking the designation to potential grant awards for jurisdictions that pursue additional Prohousing Policies and earn higher scores within the Prohousing Designation Program. In February 2023, the City submitted an application for the Prohousing Designation Program and received an eligible designation score, positioning the City to receive PIP funds. In May 2023, the City was awarded $2,064,891.45 in Program Funds through PIP Round 1 for its Local Housing Trust Fund. The NOFA issued on August 15, 2024 by HCD for PIP Round 3 provides approximately $8,000,000 for planning and implementation activities related to the development and preservation of affordable housing, as described in Health and Safety Code Section 50470(b)(2)(D). By applying for PIP Round 3, the City aims to secure additional funding to enhance its Local Housing Trust Fund, further supporting its affordable housing initiatives. ENVIRONMENTAL FINDINGS This action is not considered a project pursuant to the definition in the California Environmental Quality Act (CEQA) Guidelines Section 15378. LOCAL PREFERENCE Local preference does not apply to this resolution as it pertains to a state funding application. FISCAL IMPACT The General Fund is not impacted by this action. Approval of the Resolution will enable the City to apply for up to $1,400,000 in PIP award funds for the City of Fresno Local Housing Trust Fund. Attachment: Resolution Authorizing application to PIP Round 3