What is the Pro-housing Designation Program?
The Pro-housing Designation Program, established in the 2019–2020 Budget Act, recognizes cities and counties that exceed minimum state housing requirements by removing barriers and accelerating housing development. Jurisdictions with a pro-housing designation receive:
- Priority funding points for competitive state housing and infrastructure grants.
- Access to the Pro-housing Incentive Program (PIP), which provides additional funds for affordable housing production and preservation.
What AB-36 Changes
AB 36 makes several key updates to the designation process and eligibility rules:
· Permanent Regulations
Requires the Department of Housing and Community Development (HCD) to designate jurisdictions as pro-housing under permanent regulations, replacing emergency rules. The HCD plays a crucial role in this process, ensuring that jurisdictions meet the necessary criteria and adhere to the pro-housing policies.
· Evaluation of Housing Elements
Beginning with the 7th housing element cycle, HCD must use materials from a jurisdiction’s housing element submission to determine pro-housing status. This process involves a thorough review of the housing element, focusing on the policies and strategies that promote housing development and affordability, thereby reducing the need for extra documentation.
· Small and Rural Jurisdictions
Defines “small rural jurisdiction” as:
o Cities with fewer than 25,000 residents
o Counties with fewer than 200,000 residents
These jurisdictions can request streamlined evaluations and are exempt from renewing their designation for a period of at least 4 years.
· Non-entitlement Jurisdictions
For cities with fewer than 50,000 residents or counties with fewer than 200,000 residents, HCD cannot require renewal for five years, although it retains the authority to revoke designations if necessary.
Benefits of Pro-housing Designation
Jurisdictions with this designation gain competitive advantages in applying for:
- Affordable Housing and Sustainable Communities (AHSC)
- Infill Infrastructure Grant (IIG)
- Transformative Climate Communities (TCC)
- Transit and Intercity Rail Capital Program (TIRCP)
- Local Partnership Program (LPP)
Qualifying Policies
To earn pro-housing status, jurisdictions must adopt policies such as:
- Zoning reforms to increase housing density and allow diverse housing types.
- Inclusionary housing programs require the inclusion of affordable units in new developments.
- Streamlined permitting and reduced plan-check times for affordable housing.
- Fee reductions or financial incentives for lower-income housing projects.
Impact of AB 36
- Simplifies compliance for smaller jurisdictions.
- Expands incentives for cities and counties that actively promote housing development.
- Aligns housing policy with climate and equity goals, as designations are reported to the Office of Land Use and Climate Innovation.
Criticism and Concerns
- Local Control: Some argue the program pressures cities to adopt state-driven policies.
- Implementation Challenges: Smaller jurisdictions may struggle to meet designation criteria without technical assistance.
Why It Matters
California faces a severe housing shortage and affordability crisis. AB 36 strengthens incentives for jurisdictions to adopt pro-housing policies, aiming to accelerate housing production and reduce barriers to development throughout the state.
Resources
✅ What I delivered:
- Clear explanation of AB 36 and its relationship to the Pro-housing Designation Program
- Key provisions, benefits, and qualifying policies