Sacramento first city in California history to win state Prohousing designation for housing-friendly policies
Sacramento (Feb. 24, 2022) The City of Sacramento Thursday became the first jurisdiction in California to earn the coveted state Prohousing designation — a distinction that will give it added points when competing for affordable housing, transportation and infrastructure dollars.
The California Department of Housing and Community Development announced the award Thursday at the site of On Broadway, a planned affordable housing project to be built by EAH Communities on the corner of 19th and Broadway.
On Broadway recently secured $29 million in funding through the state’s Affordable Housing and Sustainable Communities Program- a funding source created in 2014 through negotiations between the governor and Senate President Pro Tem Darrell Steinberg, who is now the mayor of Sacramento. Going forward, Sacramento projects will earn additional points when vying for AHSC funds.
"I’m proud to see Sacramento recognized for being a state leader in eliminating the barriers to building the affordable, transit-friendly housing we so desperately need in our city and all over the state,” Mayor Steinberg said. “I hope this designation is going to translate into tens of millions of additional dollars for the people of Sacramento.”
Mayor Steinberg with members of the City’s planning and housing staff. From left: Greg Sandlund, Matt Hertel, Mayor Steinberg, Greta Soos, Danielle Foster
At Thursday’s press conference, state Housing and Community Development Director Gustavo Velasquez praised Sacramento for adopting “a remarkable series of actions” to expedite and encourage housing development.
These include waiving fees for affordable housing construction, allowing housing by right in commercial corridors, speeding approvals for accessory dwelling units, and reducing or eliminating parking requirements for new housing, among many other policies the city has adopted or is pursuing.
State Business and, Consumer and Housing Agency Secretary Lourdes Castro Ramirez signs the document officially designating Sacramento as a Prohousing city.
The Prohousing Designation Program was officially established with the passage of the Newsom Administration’s Fiscal Year 2019-2020 Budget, which provided a spectrum of support, incentives, and accountability measures to help meet California’s housing goals. The program provides incentives to cities and counties in the form of additional points or other preference in the scoring of competitive housing, community development, and infrastructure programs.
“We’re deploying a comprehensive strategy to boost the state’s housing supply and affordability for all Californians,” said Governor Gavin Newsom. “I commend the efforts of the City of Sacramento, the first jurisdiction in the state to make a commitment to accelerate housing production through this designation and I urge cities and counties across California to follow suit. Together, we can meet this challenge head-on.”
Besides AHSC money, the Prohousing designation will make Sacramento better able to compete with Southern California and the Bay Area when applying for the Infill Infrastructure Grant, the Transformative Climate Communities grant and the Transit and Intercity Rail Capital Program. It will also give Sacramento projects an advantage in securing federal tax credits for affordable projects.
