The State of California is in a housing crisis. Estimates from the State Department of Housing and Community Development (HCD) show we must plan to build at least 2.5 million new homes by 2030, including 1 million homes affordable to lower-income households. To do this, local governments are tasked with providing more housing and more types of housing to accommodate the needs of Californians today and Californians tomorrow.

Prohousing policies are actions local government can take (ordinances, programs, incentives) that can encourage the development of housing to meet the needs of the diverse populations and income levels across California. Prohousing policies include those that encourage the building of new homes including houses, accessory dwelling units (ADUs), apartments and other multifamily developments, affordable housing for low-income families, and short-term housing to provide shelter to unhoused individuals.

Local governments with Prohousing Designation are eligible to apply for the Prohousing Incentive Program (PIP), a state investment from the Building Homes and Jobs Trust Fund, to implement prohousing policies. Additionally, Local governments that receive the Prohousing Designation can also receive priority processing or funding points when applying for several funding programs, including:

• Affordable Housing & Sustainable Communities (AHSC)
• Infill Infrastructure Grant (IIG)
• Transformative Climate Communities (TCC)
• Solutions for Congested Corridors
• Local Partnership Program
• Transit and Intercity Rail Capital Program (TIRCP)
• Sustainable Transportation Planning Grant Program (STPG)

Other programs may be added to the list after HCD engages with stakeholders and partner agencies on adding Prohousing points to other housing and non-housing programs.

Any local government in California can apply to the program by demonstrating their compliance with state housing law and showing their prohousing policies go above and beyond state housing law.

Local governments complete a self-scoring sheet, aiming for a minimum score of 30 points. Local policies are listed and awarded points within four categories:

1. Favorable Zoning and Land Use
2. Acceleration of Housing Production Timelines
3. Reduction of Construction and Development Costs
4. Providing Financial Subsidies

In addition to the categories above, there are also “enhancement factors” where each policy listed in each category can receive extra points if it aligns with state priorities, such as mitigating climate change, promoting fair housing, and preventing displacement.