To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
State Prohousing Incentive Program (PIP) Application
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution authorizing the City Manager or their designee to submit an application to the State of California Department of Housing and Community Development Prohousing Incentive Program and approve and authorize the City Manager or their designee to execute an agreement, or any other documents necessary, for the receipt of Prohousing Incentive Program funds.
Body
DISCUSSION:
In August 2024, the City of Napa received the 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 fourth round of Prohousing Incentive Program (PIP) awards, making approximately $8 million available for jurisdictions with Prohousing Designations to apply.
The PIP funding is intended to be utilized for a variety of planning and implementation activities related to housing and community development. There are ten eligible uses listed in the PIP Notice of Funding Availability (NOFA). 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.
The award funds will be used for rental assistance, in the form of a rental subsidy to eligible households. The proposed rental subsidy program funded by PIP is outlined as:
Eligibility
Households must meet all the following criteria:
• Does not qualify for the Napa County SHARE Program (65+ and certain income requirements)
• Income is at or below 50% area median income
• 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
• Cannot have assets large enough that could be used for back or ongoing rent
• 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.
Proposed Activities
Rental assistance for eligible households to remain housed and avoid displacement. Participants are required to pay at least 30% of their income towards rent. Income, family composition, and rental subsidy will be certified every six months. Rental assistance includes:
• Deposit and monthly rental assistance, up to $800 per month for 48 months
• Past due rent and related fees to maintain an existing rental unit
o If a household utilizes subsidy for past due rent, it will count towards the 48 months of benefit
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 may 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-served basis depending on funding availability.
The City applied for PIP funds during the round three NOFA, however, was not awarded funding due to oversubscription of the NOFA. Applicants under the round four NOFA will be ranked by their Prohousing Designation Score, as determined by HCD, and the City will receive priority since it did not receive PIP funds in prior funding rounds.
FINANCIAL IMPACTS:
If awarded, the City will 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 Community Resources and Development Director has determined that the Recommended Action described in this agenda report is not subject to California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - PIP Resolution
NOTIFICATION:
None.