To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Paulette Castro, Management Analyst
TITLE:
Title
State Prohousing Incentive Program (PIP) Application
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a Resolution authorizing the Deputy City Manager to submit an application to the California Department of Housing and Community Development Prohousing Incentive Program and approve and authorize the Deputy City Manager to execute an agreement, or any other documents necessary, for the receipt of Prohousing Incentive Program funds
Body
DISCUSSION:
BACKGROUND
In August 2024, the City of Napa received the coveted Prohousing Designation. This designation is provided by the California Department of Housing and Community Development (HCD) for cities and counties committed to demonstrating their support for affordable housing and development. HCD has announced it’s currently accepting applications for the third round of Prohousing Incentive Program (PIP) awards, making approximately $8 million available for jurisdictions with Prohousing Designations to apply. A component of the grant application requires a Resolution authorizing submission of the application. The final grant applications are due by December 31, 2024.
PIP Eligible Uses
Award funds must be used towards the planning or implementation of activities related to ten eligible uses listed under the PIP grant. The proposed use is listed as Activity 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. The City of Napa is eligible for up to $830,000.
PIP Proposed Activities
The award funds will be used for rental assistance, in the form of a rental subsidy to qualifying individuals. The rental subsidy requirements include:
• The PIP Program will pay past due rent and related fees to maintain the existing unit or provide a deposit and monthly rental assistance payment of up to $800 a month to subsidize the cost of a lease
• Up to $800 per month towards rent based on a rent-to-income ratio for up to four years. Past due rent may be paid in full but will count towards the 48 months of benefit
• Program participants are required to pay at least 30% of their income towards rent
• Income/household members/rental subsidies will be certified every six months
Eligibility For PIP Program Participation
• Does not qualify for the Napa County SHARE Program (65+, and certain AMI requirements)
• Household income is at or below 50% AMI
• Meet one of the following:
o Be exiting homelessness
o Have exited homelessness and have a subsidy ending
o Housed but current rent exceeds 50% of income or housing subsidies
• If a client is receiving other housing subsidies, a duplication of benefits review will be required. This program cannot duplicate benefits from other State and Federal sources.
• Cannot have assets large enough that could be used for back or ongoing rent
Enrollment Priority Categories
The City will open a one-time application period with points awarded for certain criteria. The total number of points will determine priority for households referred to the program during the referral period. A lottery system will be used if more households qualify with the same number of points than there are slots in the program. If selected, a household will have two weeks to provide documentation to verify eligibility. If funds are not spent during the initial enrollment period, applications will be available on a first-come, first-serve basis depending on funding availability.
FINANCIAL IMPACTS:
The City of Napa could potentially receive and allocate an estimated $830,000 in grant funding. There is no direct impact on the general fund. No local match is required to receive the grant funds.
CEQA:
The City Manager has determined that the recommended action described in this agenda report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
NOTIFICATION:
None.