San Diego Council authorizes application for up to $5 million in state Pro Housing Incentive funds, adds preservation as eligible use

The San Diego City Council voted unanimously on March 6 to authorize the mayor or designee to apply for and accept up to $5,000,000 in Pro Housing Incentive Pilot (PIP) Program funds from the California Department of Housing and Community Development (HCD).

The resolution allows the mayor to execute a standard agreement for the grant if the state awards funds, and authorizes the city chief financial officer to accept and appropriate up to $5,000,000 in accordance with applicable law. HCD published PIP guidelines and a notice of funding availability in mid-December, and applications were due March 15.

Land Use and Housing Committee Chair Councilmember Moreno moved to approve the staff recommendation with an amendment to explicitly include affordable housing preservation among allowable uses; Councilmember LaCava seconded. Christina Biblar, director of economic development, told the council that the City is eligible for an award of up to $5,000,000 based on population and its Pro Housing designation and that eligible uses include rapid rehousing, rental assistance, new construction, rehabilitation, preservation, and planning or implementation activities related to housing and community development. Biblar noted that funds must be fully expended by June 30, 2025.

Assemblywoman Laura Saldana and other public commenters asked whether ongoing litigation or previously unmet state surplus‑land guidelines (cited by a commenter with regard to a Tailgate Park project) could jeopardize the City’s eligibility. Biblar and staff responded that the City meets the program’s threshold requirements (adopted housing element, Pro Housing designation and other criteria) and clarified which HCD eligible categories applied; staff said specific project uses would return to Council for approval if the city is awarded funds.

Councilmembers emphasized preserving existing affordable units as a cost‑effective complement to new construction. Council President Eula Rivera and several members said the City’s pro‑housing policy work made San Diego eligible for state funds and urged more front‑end council input on grant applications.

The clerk recorded a 9–0 vote in favor of the item. The Council’s authorization permits the City to submit the application and to accept a future award; specific uses and projects would require subsequent Council action if and when awards are made.