REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHILIP SKEI, Assistant Director Planning and Development Department BY: JENNIFER DAVIS, Senior Management Analyst Housing Finance Division SUBJECT ..Title ***RESOLUTION - Authorizing application for and acceptance of funding from the California Department of Housing and Community Development Prohousing Incentive Program (PIP) Round 2, and authorizing the City Manager, or designee, to sign all necessary implementing documents. (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council approve the 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 2, and authorizing the City Manager, or designee, to sign all necessary implementing documents as approved as to form by the City Attorney's Office, allowing the City to receive up to $1,500,000 for the City of Fresno Local Housing Trust Fund. EXECUTIVE SUMMARY The State of California Department of Housing and Community Development (HCD) created the Prohousing Incentive Program (PIP or Program) to reward Prohousing Designated local governments with additional funding to accelerate affordable housing production and preservation. Among the eligible uses for Program Funds is a matching contribution to an established local housing trust fund. Funding is determined by population size and Prohousing Designation Program score. On January 23, 2024, HCD issued a Notice of Funding Availability (NOFA) for approximately $9,483,402.17 under the Prohousing Incentive Program (PIP) Round 2. By submitting the application for funding to HCD for PIP Round 2, the City will be eligible to receive up to $1,500,000 for the City of Fresno Local Housing Trust Fund. The application is due March 15, 2024. BACKGROUND The Prohousing Incentive Program (PIP or Program) is a state investment from the Building Homes and Jobs Trust Fund, established by Chapter 364, Statutes of 2017 (SB 2, Atkins) to create and conserve affordable housing. PIP is intended to increase participation in HCD's Prohousing Designation Program by pairing the designation with an impactful grant award to jurisdictions that pursue additional Prohousing Policies and earn higher Prohousing Designation Program scores. Under the program, grants are available for a variety of planning or implementation activities related to housing and community development, including the use of Program Funds as matching contributions to an established local housing trust fund. Funding is determined by population size and the City's Prohousing Designation Program score previously determined by HCD. On January 23, 2024, HCD issued a Notice of Funding Availability (NOFA) for approximately $9,483,402.17 under the Prohousing Incentive Program (PIP) Round 2 for planning and implementation activities related to housing and community development, as described in Health and Safety Code Section 50470(b)(2)(D). The City is an eligible applicant to apply to PIP Round 2 and has previously received a Prohousing Designation Score through application submitted to HCD in February 2023. On May 9, 2023, the City was awarded Program Funds through PIP Round 1 in the amount of $2,064,891.45, for the City's Local Housing Trust Fund. By submitting the application for funding to HCD for PIP Round 2, the City will be eligible to receive up to $1,500,000 for the City's Local Housing Trust Fund, based on jurisdiction size and Prohousing Designation Score. The application is due March 15, 2024. ENVIRONMENTAL FINDINGS This approval is not a project for the purposes of the California Environmental Quality Act (CEQA) Guidelines Section 15378. LOCAL PREFERENCE Local preference is not applicable because the resolution provides support for a state funding application. FISCAL IMPACT The General Fund is not impacted by this action. Approval of the resolution will allow the City to apply for up to $1,500,000 in PIP Award Funds for the City of Fresno Local Housing Trust Fund. However, the City Council may choose, at a later date, to increase the yearly allocation to the LHTF to provide a matching contribution, or staff may use past contributions to the LHTF to establish a matching contribution. Attachment: Resolution Authorizing Application to PIP Round 2