We have written a lot about the need for Palo Alto to adopt a Housing Element that satisfies state law requiring a viable plan to build more homes.
But why do just the bare minimum? More homes in our neighborhoods are good for sustainability, equity, seniors, our schools, and retailers.
Also, if we do more, our city can earn access to extra state housing funds to help us get the job done. In 2019, the California legislature created the Prohousing Designation Program (PDP), which uses state funds to incentivize local governments to build more homes. In 2021, the California Department of Housing and Community Development (HCD) implemented the program with a points-based system.
So far, 30 California jurisdictions have earned PDP designation, making them eligible for increased access to state funds for housing. These include Bay Area cities like El Cerrito, Emeryville, Oakland, Redwood City, Santa Rosa, and South San Francisco.
To earn PDP designation, a city must go above the minimum requirements of a Housing Element. It can do so by earning points in each of four categories:
Favorable zoning, such as increased density and height limits, allowance of more ADUs and missing-middle homes in residential zones, expanded density bonus programs, and reduced parking minimums.
Accelerated timeframes, as with ministerial approvals, streamlined permitting, and fewer public hearings.
Reduced development costs, such as lower development fees.
Financial subsidies, such as local grants and loans, and making public lands
PDP designation unlocks city access to numerous types of state resources. For example, the state Prohousing Initiative Pilot Program is a $33 million state fund available only to jurisdictions with PDP status. Likewise, Affordable Housing and Sustainable Communities is a $405 million state fund to build infill homes, which gives an application bonus to jurisdictions with PDP status. At least five other state grant programs give a PDP bonus.
The Terner Center at UC Berkley recently published a report describing how the PDP program works in practice. El Cerrito earned points for reduced parking requirements. Sacramento earned points for ministerial review of certain infill projects. San Diego earned points for allowing 10-unit buildings in certain single-family zones.
The Terner Center also recommends ways to strengthen the PDP program. These include focus on housing production, removal of duplicative scoring criteria, and increased financial incentives.
Palo Alto has a lot of good reasons to build a lot more homes. Here’s one more: prohousing designation will increase our access to state housing funds.
