Title
Recommendation to Authorize the Interim City Manager to Execute and Modify All Documents Deemed Necessary and Appropriate to Submit an Application to Round 4 of the Prohousing Incentive Program to the California Department of Housing and Community Development; and
Adoption of Resolution Authorizing the Interim City Manager to Apply for, Accept, and Appropriate Prohousing Incentive Program Grant Funds to Fund the Day Center Relocation Supportive Services.
This project is statutorily exempt from further environmental review pursuant to Public Resources Code section 21080.10 (services for people experiencing homelessness), and categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (City Manager 10021030)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The State of California Prohousing Designation Program (PDP), established in 2019, creates financial incentives for jurisdictions that are compliant with state housing laws, including Housing Element requirements, and have enacted local policies that facilitate housing production. The PDP is overseen by the California State Department of Housing and Community Development (HCD). On September 30, 2025, HCD announced Round 4 of the Prohousing Incentive Program (PIP) Funds for local governments as “over the counter” grants to automatically receive a share of available funding. On November 20, 2024, City of Alameda (City) was officially designated as a Prohousing Jurisdiction under the PDP with a total of 52 points and therefore eligible to receive up to $500,000 in PIP funding for this current round. Staff recommends applying for Round 4 PIP funds to fund the City’s Day Center supportive services, which will provide expanded capacity for daytime homeless services and emergency overnight shelter. Staff recommends City Council authorize the Interim City Manager to apply for the PIP.
BACKGROUND
In 2019, the California State Legislature enacted Assembly Bill 101 and established the PDP to address the statewide housing crisis. The PIP fund is designed to encourage cities and counties to obtain Prohousing Designation. The PIP Program is funded through Chapter 364, Statutes of 2017 (SB 2, Atkins), which established the Building Homes and Jobs Trust Fund (Fund). The Fund utilizes real estate transaction fees collected at a county level to establish a permanent source of funding. Five percent of annual collections are deposited in a fund to be used for the PIP incentive program. The Program awards funds based on the Eligible Applicant’s PDP Score. On September 30, 2025, HCD released the Notice of Funding Availability (NOFA) for Round 4 of the PIP.
To be eligible for grant funding for the Round 4 NOFA, completed application materials must be submitted by email to HCD by March 31, 2026. HCD Guidelines state that applications will be reviewed for completeness, eligibility, and for meeting threshold requirements. Priority will be given to eligible applicants that have not received PIP funds in prior funding rounds. Eligible applicants awarded in prior funding rounds will only be eligible to receive an award once all previously unfunded eligible applicants receive an award. HCD is expected to announce awards in June 2026.
On September 17, 2024, City Council approved relocating the Day Center program to Alameda Point Building 2, Wing 3. On December 16, 2025, City Council approved Mar Con Engineering to construct the Day Center project. Construction is currently underway and the program is anticipated to open in the new facility in Fall 2026. The Day Center and Safe Sheltering program include a safe place to be indoors and receive meals and social services, emergency overnight shelter, and safe parking.
DISCUSSION
On November 20, 2024, HCD designated the City as a Prohousing Jurisdiction under the PDP. Under Round 3 PIP, the City received $1 million in funding that was allocated with $750,000 toward the Day Center Relocation construction and $250,000 for supportive services at the Alameda Housing Authority’s Linnet Corner project. As a Prohousing Jurisdiction, the City is positioned to apply for future rounds of funding which will aide in supporting community development. The PIP grant program is designed to encourage jurisdictions to obtain a Prohousing Designation by rewarding jurisdictions that pursue additional Prohousing Policies to earn a higher Prohousing Designation Score. Under the PIP Program, grants are available for a variety of planning or implementation activities related to housing and community development.
If awarded in PIP Round 4, staff recommends allocating the full $1 million to fund supportive services for the new Day Center. The new Day Center will have more indoor space for overnight emergency shelter and additional parking spaces for overnight safe parking. These operational costs for the Day Center program are currently funded from the General Fund. If awarded, staff will return to City Council to accept the award and allocate the funds.
To be eligible for the PIP Program, the City is required to meet the following threshold requirements:
• Have an adopted Housing Element in compliance with the Housing Element Law (Article 10.6 of Gov. Code)
• Have submitted Housing Element Annual Progress Reports for the current or prior year
• Have an adopted resolution authorizing the application to the Prohousing Incentive Program
• Be compliant with all applicable State and Federal housing laws
• Have a Prohousing Designation as determined by HCD
• A complete application as determined by HCD
In accordance with Health and Safety Code section 50470(b)(2)(D), the City will use the awarded funds towards the following activity:
• 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.
Moreover, Affirmatively Furthering Fair Housing (AFFH) is state law (Chapter 958, Statutes of 2018) and a requirement for receiving and remaining a Prohousing Designated Jurisdiction. AFFH is intended to eliminate housing discrimination and reverse adverse impacts of past discriminatory housing practices leading to disparities in fair and equal housing opportunities. The treatment of unhoused individuals has inherent intersections with public agencies’ duties to AFFH. As a direct impact of unfair housing practices, black people and people with disabilities are the most likely population to experience homelessness, be rent burdened or unable to afford housing, and face the highest rates of housing discrimination. The use of PIP funds for the continuance of supportive services at the new Day Center helps the City move the needle in the right direction.
ALTERNATIVES
• Authorize the Interim City Manager to execute documents necessary to apply for PIP Round 4 to fund supportive services for the new Day Center.
• Authorize the Interim City Manager to execute documents necessary to apply for PIP Round 4 and provide direction for funding different projects or funding amounts. Depending on the direction and research required, this may impact staff’s ability to apply for the current Round 4 funding opportunity, which is due March 31, 2026.
• Not authorize the Interim City Manager to apply for the PIP program.
FINANCIAL IMPACT
Two award amounts are determined by adding an Eligible Applicant’s base award amount with an Eligible Applicant’s bonus award amount. The City is eligible for a base award of $500,000 based on population size in addition to a bonus award based on its PDP score. The City received a PDP score of 52 points in 2025, which means the bonus award amount would be $500,000. Therefore, the City could potentially receive $1 million in Round 4 PIP award funding. Awarded jurisdictions will be announced in June 2026.
There is an opportunity to apply for additional PIP funding each year to further support community development for Alameda’s most vulnerable residents.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is also consistent with the Housing Element’s Strategic Plan priorities #HH3 - Further the preservation, rehabilitation, or construction of affordable housing in Alameda.
This action also aligns with the City Strategic Plan Priority to House All Alamedans and End Homelessness, specifically project HH2b for Sheltering: Safe Parking, Emergency Supportive Housing, Warming Shelter, Day Center.
ENVIRONMENTAL REVIEW
This action is not a project subject to environmental review under CEQA.
On a separate and independent basis, this project is statutorily exempt from further environmental review pursuant to Public Resources Code section 21080.10 (services for people experiencing homelessness), and categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15061(b)(3) (Common Sense).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the Interim City Manager to execute and modify all documents deemed necessary and appropriate to submit an application to Round 4 of the Prohousing Incentive Program to the California Department of Housing and Community Development to fund Day Center Supportive Services.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
By,
C’Mone Falls, Housing and Human Services Manager
Andre Fairley, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Draft Round 4 PIP Application
2. Prohousing Designation Program Award Letter