Agenda Item Wording:
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Prohousing Designation Program discussion - Receive an overview presentation on the California Department of Housing and Community Development Prohousing Designation Program, discuss the City of Visalia’s potential standing in meeting the application requirements, and provide direction on the filing of an application.
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Agenda Date: 03/16/2026
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:
Receive the staff report and presentation, and provide staff with comments and/or direction on whether to proceed with filing an application for the City of Visalia to receive a Prohousing Designation with HCD. If staff receives direction to file an application, then the City Council will need to provide additional input and direction on which additional Prohousing policies staff shall pursue and complete in order to achieve the total score of 30 points, or more for a jurisdiction to be eligible for a “bonus award” in the Prohousing Incentive Program.
Summary:
The purpose of this work session is to provide the City Council with an overview of the California Department of Housing and Community Development (HCD) Prohousing Designation Program, and to seek direction on whether to file an application in order to receive this “Designation”. Benefits of receiving a “Prohousing Designation” include earning additional scoring points in many state funding programs, and access to the Prohousing Incentive Program (PIP) which offers exclusive, additional non-competitive funding to assist jurisdictions to assist with implementing housing policies. A Prohousing Designation supports the City’s strategic goals of demonstrating economic strength, displaying organizational excellence, and pursuing infrastructure and growth.
The work session will further provide City Council with staff’s assessment of the City’s eligibility for achieving a Prohousing Designation based on how it fares in meeting the application’s scoring criteria. Upon an initial assessment of the scoring criteria, staff has found that the City complies with several Prohousing Policies and is close to reaching the minimum 30 points necessary for a complete application. Regardless, the City will need to furnish additional items, with support from the City Council, to have a complete application. An overview on what additional items could be considered is discussed in further detail under the “Application Scoring Criteria - Achieving 30 Points or More” section below.
A Prohousing Designation allows jurisdictions to receive funding points for competitive state affordable housing funding opportunities and to apply to the Prohousing Incentive Program (PIP) funds. PIP is intended to reward Prohousing designated local governments with additional funding to accelerate affordable housing production and preservation. A jurisdiction based on Visalia’s population is eligible for a base award amount of $750,000, with an additional bonus award of up to $500,000 for a total of $1,250,000.
Background Discussion:
What is the Prohousing Designation Program?
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.
The policies, concepts, and standards that direct HCD’s review and consideration toward Prohousing include the following:
• The jurisdiction’s actions to facilitate the planning, approval, or construction of a variety of housing types (e.g., increasing zoned capacity for supply, facilitating affordability for all income levels, removing regulatory barriers to development, and streamlining approval).
• The jurisdiction’s accomplishment of integrated planning and development consistent with the state planning priorities and/or the regional transportation plan.
• The jurisdiction’s meaningful actions to foster communities with adequate, affordable, and accessible housing and transportation infrastructure.
• The jurisdiction’s collaboration with public entities to align policies and programs, and with private entities to implement policies and to leverage funding and other resources.
• The jurisdiction’s compliance with established housing law and recent housing reform statutes (e.g., the Housing Accountability Act, the Streamlined Ministerial Approval Process).
What are the Benefits of Receiving a Designation?
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 (indicated by *), including:
• Affordable Housing & Sustainable Communities (AHSC) *
• Infill Infrastructure Grant (IIG) *
• Local Partnership Program (LPP)
• Solutions for Congested Corridors (SCCP)
• Sustainable Transportation Planning Grants (STPG) (could be beneficial for Visalia)
• Transit and Intercity Rail Capital Program (TIRCP)
• Transformative Climate Communities (TCC) (could be beneficial for Visalia)
• State Homeownership Super NOFA (could be beneficial for Visalia)
Additionally, the Prohousing Incentive Program (PIP) offers exclusive, additional funding to designated jurisdictions to assist them in implementing Prohousing Policies. The PIP is currently in Round 4 of its Notice of Funding Availability (NOFA).
A jurisdiction based on Visalia’s population is eligible for a base award amount of $750,000 with an additional Bonus Award of up to $500,000. For the purpose of calculating the Bonus Award, a jurisdiction’s Prohousing Designation score will be multiplied by 10,000. For example, an applicant with a score of 35 points will be eligible to receive up to a $350,000 Bonus Award in addition to the base award (maximum $500,000). Thus, it would be beneficial for the City of Visalia to submit an application with more than 30 scoring points (i.e. up to 50 points); however, doing so may require the City to commit toward complying with and completing more actions that demonstrate meeting Prohousing policies.
What can be Funded with PIP?
Eligible applicants must use award funds towards planning or implementation activities related to housing and community development, limited to the following activities (pursuant to Health and Safety Code Section 50470(b)(2)(D)):
1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, and moderate-income households, including necessary operating subsidies.
2. 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.
3. Matching portions of funds placed into local or regional housing trust funds.
4. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund.
5. Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014.
6. Assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
7. Accessibility modifications.
8. Efforts to acquire and rehabilitate foreclosed or vacant homes.
9. Homeownership opportunities, including, but not limited to, down payment assistance.
10. Fiscal incentives or matching funds to local agencies that approve new housing for extremely low-, very low-, low-, and moderate-income households.
For Example, in 2024, as part of Round 3 of the NOFA, the County of Tulare who was awarded a Prohousing Designation received $1.1 million in PIP funds and utilized their PIP towards first-time homeowner assistance. Other jurisdictions have used PIP towards affordable housing development, local housing trust match funding, and homeless development and operational activities.
The following are City of Visalia projects or programs that could be funded with its PIP allocation:
• Affordable housing development (i.e., 2nd phase of the Crescent Meadows senior-citizen affordable housing development to be developed by Self-Helf Enterprises).
• Visalia Navigation Center operational assistance.*
• Eden House operational assistance.*
• Warming Center operational assistance.*
• An emergency shelter development and/or operational assistance.*
• Tenant-based rental assistance for people experiencing or at-risk of homelessness.
• Updates to general plans, community plans, specific plans, local planning related to implementation of sustainable communities’ strategies.
• Updates to zoning ordinances.
• Environmental analyses that eliminate the need for project-specific review.
• Local process improvements that expedite local planning and permitting.
* Operational assistance may include the following costs: personnel, leasing/rent, utilities, facility maintenance, telephone, internet, supplies, equipment, janitorial services, security, and/or client assistance.
Does the City Need to Re-Apply Each Year?
A Prohousing Designation expires three years from the first day of January following the date of that jurisdiction’s designation. For example, if Visalia were issued a designation on April 15, 2026, it will remain in effect through December 31, 2029, and expires on January 1, 2030.
Application Requirements
A Prohousing Designation Program Application Template is included as Attachment 1 to this staff report, and an application checklist is found on page 4 of the application.
The following are the major components of the application:
• Resolution: A duly adopted and certified formal resolution for the Prohousing Designation Program. (A sample form for this formal resolution is found in Attachment 1, Appendix 1.)
• Self-Scoring Sheet: [Some of the Prohousing Policies are briefed further in the next section below.] The jurisdiction completes the Self-Scoring Sheet which demonstrates that the candidate jurisdiction follows Prohousing Policies across all four categories in a manner that adds to 30 or more points. The scoring sheet must indicate if an implementation program of the Prohousing Policy has already been enacted or is proposed, documentation that the implementation program has been implements, and the applicable number of points and Enhancement Category points. (See Appendix 3 for the Self-Scoring Sheet and the Sample Self-Scoring Sheet.)
• Statement of Practices Toward Homeless Encampments: The jurisdiction must complete a one-page summary describing how it upholds and enacts moral and ethical practices toward the treatment of unhoused individuals camping on public property, consistent with the United States Interagency Council on Homelessness’ “7 Principles for Addressing Encampments” (June 17, 2022) (A template that assists jurisdiction with describing its position and practices is found in Attachment 1, Appendix 5.)
• Public Participation: The jurisdiction must confirm that it has conducted a 30-day diligent public participation process before submitting an application for formal review and initiating the 60-day review period by HCD. A jurisdiction may provide a draft application to HCD for preliminary review, and follow up with public participation. Outreach would be directed to all segments of the community but must include representation of lower-income and special needs households, for-profit and non-profit developers, and special needs service providers. Outreach would entail providing the draft application and any supporting documentation to the public and noticing of the meeting where the City Council intends to submit a Prohousing application. The 30-day public participation process includes a public hearing for members of public to provide public comment on the draft Prohousing application at the start of the 30 days. (A checklist confirming that a jurisdiction complies with this requirement is found in Attachment 1, Appendix 6.)
Application Scoring Criteria - Achieving 30 Points or More
Points are tallied by a jurisdiction being compliant with multiple Prohousing Policies grouped into four categories. In total there are 48 Policies with each policy having different point values, cumulating 74 points possible. Additional points can be claimed if an Enhancement Factor is cited where the policy is part of a “unified, multifaceted strategy to promote multiple planning objectives such as efficient land use, climate change solutions, and/or hazard mitigation.” Jurisdictions can also elect to propose a new policy and then have a two-year implementation timeframe to complete it.
Staff currently believes that it can score, if HCD concurs, approximately 24 points from existing and enacted efforts. A full list of the Prohousing Policies that the City can claim points on is included as Attachment 2. Following are just a few of the policies that the City can claim points on:
• 1H Zoning or other land use designation methods to allow for residential or mixed uses in one or more non-residential zones. (1 point) Response: The City’s D-MU and C-MU “mixed use” zones both allow residential uses including, in certain circumstances, by right.
• 2D Establishment of permitting processes that take less than four months to complete. Policies under this category must address all approvals necessary to issue building permits. (2 points) Response: The City’s goal and demonstrated practice is to take less than four months to issue a building permit on a by right use.
• 3A Waiver or significant reduction of development impact fees for residential development with units affordable to Lower-Income Households. (3 points) Response: Self-Help Enterprises received impact fee credits (for infill development) for the Lofts at Fort Visalia and impact fee deferrals for Rancho Colegio.
• 4H Directed residual redevelopment funds to accelerate the production of affordable housing. (1 point) Response: Residual redevelopment funds are used to accelerate affordable housing production like the Lofts and Majestic Gardens.
It should be noted that it is beneficial for the City to find and identify more scoring opportunities, beyond the 30-point minimum, in order to be eligible for up to a $200,000 additional Bonus Award in PIP funds, as explained above.
Therefore, in an effort to explore and potentially achieve more than 30 points, should the City Council direct staff to proceed with filing an application, staff seeks additional input and direction from City Council on which additional Prohousing Policies which contribute to the acceleration of housing production staff shall pursue and complete to be eligible for a Bonus Award.
Following is a list of potential Policies that the City could pursue. The list below represents 26 additional points from potential policies which, combined with the City’s established policies, could potentially achieve 50 points. Please note, as part of the application process, HCD and staff will need to discuss how the City meets the policies to achieve the points allocated per section. Further documentation may be required to demonstrate compliance through this process.
• 1C Designate additional sufficient site to accommodate 125 to 149 percent of Visalia’s current RHNA allocation, by total and income category. These additional sites must be identified in the Jurisdiction’s housing element adequate sites inventory. (2 points)
Staff Review: City staff has reviewed the potential requirements needed to achieve these points based on the City’s current RHNA allocation as identified in Visalia’s current Housing Element Table 71 “Adequacy of Residential Site Inventory” table. Based on the undertaking and time allocated to ensuring Visalia has enough sites to accommodate Visalia’s RHNA allocation, staff conclude the work needed to identify additional sites to meet the 125 to 149 percent threshold cannot be pursued given the resources needed to analyze additional potential sites for RHNA purposes. Staff concludes there are other policies listed where points can be obtained to meet the 30 point threshold.
• 1D Density bonus programs that allow additional density for additional affordability beyond minimum statutory requirements. (2 points)
Staff Review: Under state density bonus law, a project that qualifies under these provisions can achieve an increase of 50% of the units allowed per the City’s density ranges. Visalia processed two recent projects that sought a density bonus, Demaree/Houston and Caldwell/Lovers Lane, with only one project proceeding with development at this time. At this time, staff would not recommend increasing additional density beyond the state requirements.
• 1E Increasing allowable density in low-density, single-family residential areas beyond the requirements of state Accessory Dwelling Unit Law, and in a manner that exceeds the requirements of SB 9. (2 points)
Staff Review: State law already permits an ADUs and JADUs to be developed by-right in single-family residential areas, in addition to the primary residential unit. Furthermore, developments under SB 9 allow for up to four dwelling units if developed under the provisions of SB 9. Staff conclude that the number of units already permitted under ADU law or SB 9 is sufficient, and increasing the number of units beyond state law would be excessive for residential areas. Staff concludes there are other policies listed where points can be obtained to meet the 30 point threshold.
• 1F Eliminating minimum parking requirements for residential development as authorized by state law; adopting vehicular parking ratios that are less than the relevant ratio thresholds in state law; or adopting maximum parking requirements at or less than ratios pursuant to state law. (2 points)
Staff Review: Staff would not recommend reducing the number of minimum parking requirements for residential developments at this time. Reduction in parking requirements for certain residential developments is already considered if the project meets affordability provisions such as senior housing, but a reduction to all residential parking ratios cannot be adequately considered at this time.
• 2A Establishment of ministerial approval processes for multiple housing types, including, for example, single-family, multifamily and mixed-use housing. (3 points)
Staff Review: City of Visalia already has ministerial approval processes for certain limited types of multifamily, up to 80 units, and mixed-use housing, when adding units to existing mixed uses. Pursuant to the March 2nd work session item, staff will prepare a subdivision streamlining ordinance which will establish a streamlined process for single-family residential subdivision maps. With inclusion of this proposed policy and an anticipated completion date, Staff believes that it now supports this policy.
• 2E Absence or elimination of public hearings for projects consistent with zoning and the general plan. (2 points)
Staff Review: Similar to policy 2A, pursuant to the March 2nd work session item, the subdivision streamlining ordinance will in certain circumstances eliminate public hearings for subdivision entitlements consistent with zoning and the general plan. With inclusion of this proposed policy and an anticipated completion date, Staff believes that it now supports this policy.
• 2F Priority permit processing or reduced plan check times for homes affordable to Lower-Income Households. (2 points)
Staff Review: If supported by council, staff can update its internal policy to reduce the target completion date for plan check review of deed restricted affordable units, for example, from 30 to 20 calendar days. Doing so reallocates staff resources to complete plan checks more expediently and should not compromise staff’s ability to perform a thorough plan check.
• 2G Establishment of consolidated or streamlined permit processes that minimize the levels of review and approval required for projects, and that are consistent with zoning regulations and the general plan. (1 point)
Staff Review: The City’s site plan review process could arguably be seen to comply with this policy since it entails review by all city divisions and departments for compliance with respective regulations and policies, including zoning regulations. Compliance with this policy, therefore, may simply require consultation with state and directing to the existing municipal code regarding site plan review.
• 2J Priority permit processing or reduced plan check times for ADUs/JADUs or multifamily housing. (1 point)
Staff Review: Similar to policy 2F, staff can update its internal policy to reduce the target completion date for planned check review of ADUs/JADUs, for example, from 30 to 20 calendar days, or for its pre-approved ADU, for example, from 20 to 15 days. Doing so reallocates staff resources to complete plan checks more expediently and should not compromise staff's ability to perform a thorough plan check.
• 3B Adoption of policies that result in less restrictive requirements than state law to reduce barriers for property owners to create ADUs/JADUs. Examples of qualifying policies include, but are not limited to, development standards improvements, permit processing improvements, dedicated ADU/JADU staff, technical assistance programs, and pre-approved ADU/JADU design packages. (2 points)
Staff Review: Planning staff already provides technical assistance to the public regarding ADU/JADU development requirements. In addition, the City has a “Permit-Ready ADU Program”, which allows property owners to select from a variety of ADU plans which have been pre-approved. Staff seeks Council direction on exploring with HCD to see if the City’s current ADU program is eligible for points under 3B.
• 3C Adoption of other fee reduction strategies, including fee deferrals and reduced fees for housing for persons with special needs. (1 point)
Staff Review: The City already allows deferral of fees as detailed in the City’s municipal code for certain impact fees (ex., traffic, sewer, storm, etc.). Staff seeks Council direction on exploring with HCD to see if the City’s current fee deferral program is eligible for a point under 3C.
• 3H Adoption of ordinances that reduce barriers, beyond existing law, for the development of housing affordable to Lower-Income Households. (1 point)
Staff Review: Similar to policy 2A and 2E, pursuant to the March 2nd work session item, the subdivision streamlining ordinance will, in certain circumstances, eliminate public hearings for subdivision entitlements consistent with zoning and the general plan. With inclusion of this proposed policy and an anticipated completion date, staff believes that it now supports this policy.
• 4E A comprehensive program that complies with the Surplus Land Act and that makes publicly owned land available for affordable housing, or for multifamily housing projects with the highest feasible percentage of units affordable to Lower Income Households. A qualifying program may utilize mechanisms such as land donations, land sales with significant write-downs, or below-market land leases. (2 points)
Staff Review: When opportunities present themselves, the city has made publicly owned land available for affordable housing to organizations and entities expressing interest, as was done with the old lumberyard site in 2019 that ultimately developed as the Lofts at Fort Visalia. However, surplus land sales have seldom been implemented in Visalia, and the city would need to be cautious towards authoring a program that would not put the city between a rock and a hard place if affordable housing may not be considered the highest and best use for a property. Implementation of this policy may require a lengthier discussion up front and extensive consultation with the city attorney’s office and Finance Department staff on the merits of such a program.
• 4G Prioritization of local general funds to accelerate the production of housing affordable to Lower-Income Households. (2 points)
Staff Review: Although presented as an option to City Council, general funds are regularly used for a variety of city investments and are seldom used for housing production. One recent exception has been single-family residences constructed by Self-Help Enterprises on NW 5th Ave. Unless directed by Council, this may otherwise be viewed as a significant shift in practice.
• Enhancement Factor 6 Rezoning and other policies that result in a net gain of housing capacity while concurrently mitigating development impacts on or from Environmentally Sensitive or Hazardous Areas. (1 point)
Staff Review: The City has two locations that could meet the intent of this enhancement factor. These sites could further be discussed with HCD staff.
Please note that Council can direct staff to consider all or some of the policies listed above that may help in achieving the necessary points for an application submittal that seem reasonable and achievable based on internal practices the City already implements but may not be codified or written in policy that will help in demonstrating to HCD that the City of Visalia is a Prohousing community. Examples of procedures already implemented include our commitments to building permit review timelines for housing projects.
What Additional Actions are Required by the City Council to File Application?
The City Council would need to adopt a formal resolution for the Prohousing Designation Program (a sample form for this formal resolution is found in Attachment 1, Appendix 1). Proceeding with filing the application would require the consideration and adoption of a formal resolution, to be considered as a future agendized item.
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: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
Receive the staff report and presentation and direct staff to proceed with filing the application with HCD.
Environmental Assessment Status: None required. This is an informal stall report, and the direction by Council to file an application and to consider which additional Prohousing Policies that staff shall pursue and complete do not constitute a project unto itself that requires environmental review.
CEQA Review: None.
Deadline for Action: 03/16/2026
Attachments:
1. Prohousing Designation Program Application Template
2. Draft City of Visalia Point Tally on Prohousing Policy Scoring Sheet
3. Prohousing Designation Program presentation slides prepared by HCD
4. Prohousing Incentive Program presentation slides by HCD
5. City PowerPoint presentation slides
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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