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AGENDA ITEM NO. 8.

CITY OF HAWTHORNE
City Council
AGENDA BILL

For the meeting of 02/24/2026
Originating Department: Planning
                                                     

City Manager:
Department Head:
signature

SUBJECT:

Resolution 8589 to Authorize the City of Hawthorne to Apply for the Prohousing Designation from the California Department of Housing and Community Development.
 

RECOMMENDED MOTION:

Adopt the resolution.

DISCUSSION:

The Prohousing Designation Program (PDP) seeks to reward jurisdictions for going above-and-beyond what is required by state housing laws in accelerating housing production. Jurisdictions demonstrating how they promote vibrant and inclusive communities through land use and zoning reforms, such as streamlining permit processes, reducing construction costs, and providing financial subsidies for housing development, are eligible to receive a Prohousing Designation and take advantage of its benefits. Staff believes the benefits to the City are potentially great while the obligations of the program are largely already being adhered to, and the remaining tasks are very minor. Details of the benefits and obligations of the PDP are described below.

What are the benefits of receiving a Prohousing Designation?

Receiving a Prohousing Designation will earn the CIty additional scoring points in many state grant programs, including:
  • Affordable Housing & Sustainable Communities (AHSC)
  • Infill Infrastructure Grant (IIG)
  • Transformative Climate Communities (TCC)
  • Solutions for Congested Corridors (SCCP)
  • Local Partnership Program (LPP)
  • Transit and Intercity Rail Capital Program (TIRCP)
  • Sustainable Transportation Planning Grants (STPG)
  • Prohousing Incentive Program (PIP)
The Prohousing Incentive Program (PIP) is intended to increase participation in HCD’s PDP by pairing the designation with an exclusive and impactful award grant. PIP is a state investment from the Building Homes and Jobs Trust Fund to create and conserve affordable housing. HCD awards PIP funds exclusively to eligible jurisdictions with Prohousing Designation, with additional bonus dollars available based on a jurisdiction’s PDP application score.

PDP Obligations:
1. Compliant Housing Element: Jurisdictions must have a Housing Element that is approved and in compliance with state law. Hawthorne’s Housing Element is compliant.
2. Active Implementation of Policies: Jurisdictions must demonstrate they are adopting policies that go "above and beyond" baseline state law to accelerate housing production. Pursuant to our Housing Element, we adopted qualifying policies in 2023.
3. Enacting Proposed Policies: If a jurisdiction receives the designation based on "proposed" policies (rather than already enacted ones), they are obligated to implement those policies within two years of submitting their application. We will have two years to enact the following additional policies, which will be identified in our application.
  • Including a one-stop permitting center in the refurbished existing City Hall building
  • Revise the ADU Ordinance to comply with current state laws
  • Creating a case manager to shepherd ADU applications through permitting
  • Streamline ADU permit processing
  • Maintain a list of technical consultants
  • Formalize policy that allows ADUs to be built simultaneously with room additions
4. Ongoing Compliance: The jurisdiction must continue to comply with state housing laws, including the Permit Streamlining Act and CEQA, and must not pass local laws that hinder housing production. We intend to continue complying with state housing laws, including the Permit Streamlining Act and CEQA, and must not pass local laws that hinder housing production.
5. Reporting: Jurisdictions must submit Annual Progress Reports (APR). This is an existing requirement the City performs annually for both the Housing Element and the General Plan.
6. Fair Housing Requirements: Policies must be consistent with the obligation to Affirmatively Further Fair Housing (AFFH): These policies are built into our Housing Element and either enacted or followed already.

As of January 1, 2026, the following jurisdictions have earned a Prohousing Designation:

AdelantoAlameda, BerkeleyBrea, BishopCampbell, Chula VistaCrescent CityEl CerritoEmeryvilleEureka, FairfieldHayward, HealdsburgIndioLancaster, Long BeachLos AltosLos AngelesMoreno ValleyMountain ViewNapaNeedles, PetalumaPinole, Rancho CordovaRancho CucamongaRedwood CityRichmond, RiversideRohnert ParkRoseville, SacramentoSalinas, San LeandroSan Luis ObispoSanta AnaSanta CruzSanta MonicaSanta RosaSan FranciscoSouth Lake TahoeSouth San FranciscoStockton, SunnyvaleUkiah, Walnut CreekWest HollywoodLos Angeles County, Moraga, Nevada County, Placer County, Sacramento County, San Luis Obispo County, San Diego County, Sonoma County, Tulare County, Tuolumne County, Windsor, Yuba County.

ECONOMIC DEVELOPMENT STRATEGIC PLAN:

Goal 2: Develop revenue-generating programs
Goal 4: Update Zoning Code for the 21st Century

FISCAL IMPACT:

Bonus points on state grant applications and the ability to apply for the PIP grant may result in additional grant funding to the City.

NOTICING PROCEDURE:

72 hours posted notice pursuant to the Ralph M. Brown Act. 

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