HomeMy WebLinkAbout _ 4.1(b)--Authorization to apply for Prohousing Incentive Program FundingC IT Y OF
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: March 5, 2024
FROM: Barry Tippin, City Manager
ITEM NO. 4.1(b)
***APPROVED
BY***
btippin@cityofredding.org
ey A,
12P P ci in e 2/2t210
btippin@cityofredding.org
SUBJECT: 4.1(b) --Authorization to apply for State of California Prohousing Incentive
Program (PIP) Program Funding.
Recommendation
Authorize and approve the following actions:
(1) Adopt Resolution to authorize the City Manager, or designee, to submit a grant
application for the State of California's Department of Housing and Community
Development Prohousing Incentive Program, and if awarded, execute any agreements
and subsequent documentation to facilitate acceptance of the grant; and
(2) Find that applying for grant funding is not considered a project under the California
Environmental Quality Act.
Fiscal Impact
Prohousing Incentive Program (PIP) funds are grant funds with no match obligation. There is no
impact to the General Fund. Staff may apply for up to $1,000,000 in grant funds.
Alternative Action
The City Council could decline to authorize submission of the PIP grant application for the
requested project and staff would continue to search for alternative funds.
Background/Analysis
On September 19, 2023, Council approved staff to apply to the State of California's Housing and
Community Development Program (HCD) to obtain the Prohousing Designation. For those
jurisdictions that have a Prohousing Designation, HCD also offers the Prohousing Incentive
Program (PIP) which is funded through Chapter 364, Statutes of 2017 (SB 2, Atkins), which
established the Building Homes and Jobs Trust Fund, with five percent of annual collections to
be used for this incentive program.
PIP is intended to increase participation in HCD's Prohousing Designation Program by pairing
Report to Redding City Council February 28, 2024
Re: 4.1(b) --Authorization to apply for Prohousing Incentive Program Funding Page 2
the designation with an impactful award grant. HCD will award PIP funds to eligible
jurisdictions with the Prohousing Designation, with additional bonus dollars available based on a
jurisdiction's Prohousing Designation Program application score. Staff has applied for the
Prohousing Designation but has not been awarded a score, as yet. PIP funding may be used for
the predevelopment, development, acquisition, rehabilitation, and preservation of multifamily,
residential live -work, or rental housing that is affordable to extremely low-, very low-, low-, and
moderate -income households, including necessary operating subsidies. Funds may also be used
for 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 as well as other eligible uses.
Environmental Review
Applying for grant funding is not considered a project under the California Environmental
Quality Act (CEQA). Any project that is developed will be reviewed for CEQA compliance once
the details are known.
Council Priority/City Manager Goals
• Government of the 21St Century - `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
• Economic Development- "Facilitate and become a catalyst for economic development in
Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
^Resolution
RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING APPLICATION FOR, AND RECEIPT OF, PROHOUSING
INCENTIVE PROGRAM FUNDS
WHEREAS, pursuant to Health and Safety Code 50470 et. Seq, the California Department
of Housing and Community Development (Department) is authorized to issue Guidelines as part
of an incentive program (hereinafter referred to by the Department as the Prohousing Incentive
Program or "PIP"); and
WHEREAS the City Council of the City of Redding desires to submit a PIP grant
application package ("Application"), on the forms provided by the Department, for approval of
grant funding for eligible activities toward planning and implementation activities related to
housing and community development as a result of meeting eligibility criteria including but not
limited to Prohousing Designation; and
WHEREAS, the Department has issued Guidelines and Application on January 23, 2024,
in the amount of $9,483,402.17 for PIP;
NOW, THEREFORE, the City Council of the City of Redding ("Applicant") resolves as
follows:
SECTION 1. The City Manager of the City of Redding, or designee, is hereby 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 not to exceed $1,000,000.
SECTION 2. In connection with the PIP grant, if the Application is approved by the
Department, the City Manager of the City of Redding, or designee, is authorized and directed to
enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement
(Standard Agreement) for the amount not to exceed $1,000,000, and any and all other documents
required or deemed necessary or appropriate to evidence and secure the PIP grant, the Applicant's
obligations related thereto, and all amendments thereto.
SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the
Guidelines, and the Standard Agreement provided by the Department after approval. The
Application and any and all accompanying documents are incorporated in full as part of the
Standard Agreement. Any and all activities funded, information provided, and timelines
represented in the Application will be enforceable through the fully executed Standard Agreement.
Pursuant to the Guidelines and in conjunction with the terms of the Standard Agreement, the
Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner
presented and specifically identified in the approved Application.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the
City Council of the City of Redding on the 5th day of March, 2024, and was duly adopted at said
meeting by the following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:
ATTEST:
SHARLENE TIPTON, City Clerk
STATE OF CALIFORNIA
City of Redding
TENESSA AUDETTE, Mayor
FORM APPROVED:
CHRISTIAN M. CURTIS, City Attorney
1, Sharlene Tipton, City Clerk of the City of Redding, State of California, hereby certify the above
and foregoing to be a full, true and correct copy of a resolution adopted at a duly noticed and
convened meeting of said City Council on March 5, 2024, and that such resolution has not been
amended, modified, repealed or rescinded since its date of adoption and is in full force and effect
as of the date hereof.
Sharlene Tipton, City Clerk of the City of Redding,
State of California
Name and Title