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Palo Alto staff seeks Prohousing designation to improve competitiveness for affordable-housing grants
Summary
City staff told the Planning and Transportation Commission the draft Prohousing designation application targets 41 points (30 required), which would make Palo Alto eligible for state prohousing incentive grants and improve competitiveness for other affordable-housing funds; the commission voiced broad support and asked staff to clarify which items are enacted vs. proposed.
City staff presented a draft application for the state—s Prohousing designation at a May 27 study session, saying the package is intended to make Palo Alto eligible for dedicated state incentive funds and to improve competitiveness for other affordable-housing grants.
"We are targeting a score of 41 points," said Julia Knight, senior program manager, noting the 30-point minimum required by the California Department of Housing and Community Development (HCD). Knight described four scoring categories used by HCD—land use, production acceleration, cost reduction and direct subsidies—and said staff has documented enacted and proposed policies that would together yield the 41-point total.
Knight and staff emphasized that proposed policies included in the application can be adjusted before the public-comment period closes June 17; designation itself is not binding like a housing element. Knight said HCD typically works with jurisdictions on follow-up refinements after an initial preliminary review and that the designation, if awarded, lasts three years.
Commissioners asked whether listing a projected range of units for the San Antonio Road area plan (staff cited a 3,800—7,400-unit projection) would bind the city. Knight replied that those figures are presented as "proposed" projections and can be revised before submission; they do not legally bind the city to a fixed buildout.
Commissioners also asked about the concrete benefits of designation. Knight described a prohousing incentive program that has distributed roughly $56 million in grants since 2022 exclusively to designated jurisdictions, and said designation also improves competitiveness for other state grant programs such as Affordable Housing and Sustainable Communities and local-housing-trust-fund applications.
Commissioners generally expressed support for applying. Several suggested staff document which points are for enacted policies and which are proposed so the public and HCD can clearly assess the application. Staff said they will pursue council authorization in mid-June to finalize and submit the application materials.
