Agenda Item Wording:
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Prohousing Public Hearing - Conduct the first public hearing to review and comment on the proposed submission of an application to the State’s Prohousing Designation Program to designate the City of Visalia as a prohousing city, enabling access to additional state funding for critical housing and infrastructure projects in Visalia.
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Agenda Date: 09/08/2026
Prepared by:
Brandon Smith, Principal Planner, brandon.smith@visalia.gov, (559) 713-4636;
Margie Perez, Housing Specialist, margie.perez@visalia.gov, (559) 713-4460;
Paul Bernal, Planning and Community Preservation Director, paul.bernal@visalia.gov, (559) 713-4025
Department Recommendation: Staff recommends that the Council conduct the first of two public hearings to receive verbal comments, prior to the submission of an application to the State’s Prohousing Designation Program to designate the City of Visalia as a Prohousing city, allowing for access to additional state funding for critical housing and infrastructure projects.
Summary:
The State of California created the Prohousing Designation Program to acknowledge and support jurisdictions that take local actions to accelerate housing production. To be designated, the City must meet all the criteria of the program and submit a qualifying application to Housing and Community Development (HCD).
A draft application was released for public comment from August 21st to September 21st, 2026. Staff will address any comments received during the public comment period and will circulate any revised draft applications, if necessary, for a minimum of 7 days. At this time, Council can change the draft application; however, any changes together with changes addressed through the initial public comment require re-circulation for a minimum of 7 days.
Background Discussion:
The Prohousing Designation Program (PDP, or Program) was created by the California State Legislature through the 2019-2020 Budget Act. The Program seeks to reward jurisdictions for going above and beyond what is required by state housing laws toward accelerating housing production. Jurisdictions who seek to achieve the Prohousing Designation must demonstrate through their application into the program how they promote vibrant and inclusive communities through land use and zoning reforms.
Receiving a designation earns jurisdictions, and their affordable housing development partners, additional scoring points in many state competitive funding programs that supports projects like the Lofts at Fort Visalia, Rancho Colegio, and Crescent Meadows senior housing project, including Affordable Housing and Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG), Transformative Climate Communities (TCC), Solutions for Congested Corridors (SCCP), Local Partnership Program (LPP), Transit and Intercity Rail Capital Program (TIRCP), and Sustainable Transportation Planning Grant Program (STPG).
Receiving a Prohousing Designation also allows jurisdictions to apply to the Prohousing Incentive Program (PIP). The PIP is designed to reward local governments with additional funding to accelerate affordable housing production and preservation.
The designation is valid for three years, after which a jurisdiction must apply for a new designation. As of August 10, 2026, there are 75 California jurisdictions (cities and counties) that have Prohousing status (Reference: <https://www.hcd.ca.gov/planning-and-research/prohousing/designated-jurisdictions>). The County of Tulare received Prohousing Designation in 2024 and was awarded $1,106,356 in PIP funds. No other cities within Tulare County have received a Prohousing Designation. The City of Fresno’s Prohousing Designation was reinstated in 2026.
Draft Application:
Staff presented a work session item to the City Council on March 16, 2026, at which time staff had reviewed the application scoring criteria and believed that that it could score at least 24 points from existing and enacted Prohousing Policy efforts. The minimum score to receive the Prohousing Designation is 30 points; however, there is a benefit to having a higher score to prevail when there is a tie for competitive funding sources.
The draft application released for public comment (see attachment 1) reflects a total self-score of 56 points (refer to Appendix 3 of attachment 1), which includes 38 points from meeting Prohousing Policy efforts and 18 additional points from certain Prohousing Policies that meet enhancement factors. The increase in Policy points largely stems from a meeting between City and HCD staff, which revealed several efforts already enacted by the City (plus the City’s subdivision streamlining ordinance adopted in June 2026) that were eligible for points. In addition, the incorporation of points from enhancement factors were not taken into account in staff’s initial assessment presented at the work session on March 16th.
The draft application includes only one “proposed” Policy for Category 3H (refer to Appendix 2 of attachment 1), resulting in 2 points, that anticipates completion by the end of 2026. The proposed policy pertains to a Zoning Text Amendment to increase the unit threshold for by-right processing (ministerial approval) for a multi-family residential development, as directed by Housing Element Programs 1.3 and 3.2.
The draft application reflects Visalia’s existing actions, completed policies, and other achievements that meet program criteria. Staff anticipates that the City’s application will surpass the minimum score threshold.
Application Requirements:
To submit a qualified application, the City must complete the requirements listed below. Applications are accepted and reviewed on a rolling basis.
Resolution
The application must include an adopted resolution from the City Council that authorizes the submission of the application to HCD (see attachment 2 for a draft resolution). Council will be asked to adopt the resolution following the second public hearing scheduled for September 21, 2026.
Demonstration of Prohousing Policies and Programs with Self-Scoring Sheet
The application must demonstrate how the City has implemented or will implement policies that align with four Prohousing categories, showing a commitment to housing production. The four Prohousing categories are: 1. Favorable Zoning and Land Use, 2. Acceleration of Housing Production Timeframes, 3. Reduction of Construction and Development Costs, and 4. Providing Financial Subsidies (refer to Appendix 3 of attachment 1).
Homeless Encampment Best Practices Statement
The application requires a one-page summary (refer to attachment 3) that describes how the City uses best practices related to the treatment of people experiencing homelessness in camps on public property. These practices must be consistent with the “7 Principles for Addressing Encampments,” published in 2022 by the United States Interagency Council on Homelessness.
Public Participation Checklist
The public participation checklist (refer to Appendix 6 of attachment 1) affirms that the City posted its draft application for a period of 30 days to allow for public comment and that a variety of outreach methods in multiple languages were used to promote the comment period.
Public Participation:
The draft application was posted on the City’s Prohousing webpage (<https://www.visalia.gov/1060/Prohousing-Designation-Program>) for a public comment period starting August 21st through September 21st, 2026. Staff has conducted the following forms of outreach to promote the public comment period:
1. Released the application to an email list of approximately 100 housing stakeholders, with additional targeted communication to organizations representing lower-income and special-needs households, for-profit and non-profit developers, and service providers.
2. Staffed informational tables at the Visalia Farmer’s Market, First Annual Multicultural Festival held at Mooney Grove Park, and the Visalia Home EXPO.
3. Scheduled in-person public meetings to discuss the application and allow for verbal comments, before the Citizens Advisory Committee (September 2), Planning Commission (September 14), and City Council (September 8 and 21), in English with translation services available upon request.
4. Distributed information about the public comment period and meetings through a City Press Release and through posts on the City’s social media channels, including an advertisement placed in the Visalia Live and Play Fall 2026 guide.
5. Placed legal advertisements in the Visalia Times Delta on August 18th and August 21st in English and Spanish.
Once the public comment period closes, staff will review comments and incorporate them in the final application. If any significant changes are made to the draft application, the updated version will be posted online for a 7-day public review period, in accordance with the rules of the Prohousing Designation Program.
Fiscal Impact including annual maintenance and operating costs: There is no cost in filing an application. If the City files and is awarded a Prohousing Designation, the City will be eligible to receive funding through the Prohousing Incentive Program, potentially gaining up to $1.25 million in additional funds per annual application.
Prior Council Action: Staff presented a work session item to the City Council on March 16, 2026, to discuss the City’s potential standing in meeting the Prohousing Designation Program’s application requirements. The Council provided consensus to proceed with completing a draft application that meets the minimum 30-point requirement.
Alternatives: Per City Council direction.
Recommended Motion (and Alternative Motions if expected):
recommendation
No motion is required.
Environmental Assessment Status: None required. The submission of an application to receive the Prohousing Designation will not cause a direct or foreseeable physical change to the environment, and therefore it is not a project under the California Environmental Quality Act (CEQA).
CEQA Review: None required. The submission of an application to receive the Prohousing Designation will not cause a direct or foreseeable physical change to the environment, and therefore it is not a project under the California Environmental Quality Act (CEQA).
Deadline for Action: 09/08/2026
Attachments:
Attachment 1 - Draft Prohousing Application
Attachment 2 - Prohousing Designation Resolution
Attachment 3 - 7 Principles for Addressing Encampments
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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