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Salinas committee backs application to HCD for Prohousing Incentive Program Round 3

2173251 · January 1, 2025
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Summary

The City of Salinas Housing and Land Use Committee at a meeting called to order at 3:34 p.m. supported forwarding to the City Council an application to the California Department of Housing and Community Development for the Prohousing Incentive Program Round 3, authorizing pursuit of up to $1.25 million in grant funds.

The City of Salinas Housing and Land Use Committee at a meeting called to order at 3:34 p.m. supported forwarding to the City Council an application to the California Department of Housing and Community Development (HCD) for the Prohousing Incentive Program Round 3, authorizing pursuit of up to $1.25 million in grant funds.

The decision matters because the Prohousing Incentive Program awards funds to jurisdictions with a prohousing designation and can be used for homeless prevention and shelter support, preservation or acquisition of permanent housing, and gap financing for affordable rental and ownership housing. City staff said the application includes three potential uses so the city can preserve flexibility if a primary option does not move forward.

City staff told the committee that the city is eligible to apply for $1,250,000 in Round 3. Staff outlined three priority options in the application: acquisition of the Alisal County Estates (identified in the meeting as a mobile-home park on Reiner), funding for operational needs at an emergency shelter at the Murray Motel, and gap financing for affordable multifamily rental projects. Staff noted the city previously received $1,650,000 from the program in an earlier round and used that award for a first-time homebuyer down-payment assistance program and for affordable housing efforts. The staff presentation said the Round 3 Notice of Funding Availability (NOFA) was released Aug. 15, 2024, the application deadline is Dec. 31, 2024, and award notifications are expected in April 2025.

Committee members asked about the long-term stability of the program. A member asked whether HCD planned to continue the Prohousing Incentive Program given agency fiscal constraints; a staff presenter replied that HCD intends to continue Round 3 but that the funding source is SB 9 and that HCD will allocate only the funds that are actually captured, representing a small percentage of collections. The staff presenter characterized the percentage as “only, like, 2 or 3%.”

After the presentation and public comment (no speakers), a committee member moved to approve staff's recommendation to send a City Council resolution authorizing submittal of the Round 3 application; another member seconded. The committee approved the motion by voice vote with no recorded opposition, and the item will proceed to the City Council for consideration.

Next steps: staff will prepare the application for submittal to HCD on or before Dec. 31, 2024, and the item is scheduled to go before the full City Council on Dec. 3, 2024, per information provided to the committee.