California housing funding totaling $11.3 million is going to 13 cities and counties with Prohousing Designation, with the state directing the money toward local efforts to create affordable housing. The awards were announced Aug. 20 through the fourth round of California’s Prohousing Incentive Program.
Key Takeaways
- California awarded $11.3 million to 13 cities and counties through its Prohousing Incentive Program.
- The funding supports local housing and community development activities, including affordable housing efforts.
- The latest awards bring total Prohousing Incentive Program funding to $70.3 million.
- California now has 75 jurisdictions with Prohousing Designation.
- The latest recipients include 10 cities and three counties across several California regions.
California Awards $11.3 Million Through Prohousing Program
The California Department of Housing and Community Development announced the fourth-round awards to 13 jurisdictions that hold the state’s Prohousing Designation. The $11.3 million allocation is intended to support local housing and community development activities, including efforts connected to affordable housing.
The Prohousing Incentive Program, administered by HCD, provides additional funding to jurisdictions that have received the state designation. The program is designed to support affordable housing production and preservation and to increase participation in California’s Prohousing Designation Program.
The latest awards bring total funding distributed through the Prohousing Incentive Program to $70.3 million, according to HCD. The fourth round represents the newest allocation under the state program.
The state’s announcement identifies the funding as support for local housing solutions. HCD said the awarded jurisdictions can use the additional resources for housing and community development activities associated with their local efforts.
California’s broader housing policy framework also includes financing reforms. Recent state measures include affordable housing financing reforms intended to reduce development costs and administrative barriers for qualifying projects.
13 Cities and Counties Receive Housing Funding
The 13 award recipients are the cities of Arvin, Benicia, Chula Vista, Culver City, Indio, Lancaster, Santa Ana, Santa Barbara, Sunnyvale and Woodland, along with Nevada County, Santa Barbara County and Trinity County.
The recipients represent communities in several parts of California. The list includes cities in the Bay Area, Southern California, the Central Valley and other regions, as well as three counties.
Santa Barbara appears on the list through both the city and county designations. The other jurisdictions received their awards individually based on their Prohousing Designation status and eligibility for the incentive program.
The awards are limited to jurisdictions that have earned the state’s Prohousing Designation. HCD identifies that designation as the eligibility requirement for the Prohousing Incentive Program.
The funding therefore connects the state’s designation system with a direct financial allocation for local governments. The fourth-round awards provide those jurisdictions with additional resources for housing-related work.
Prohousing Designation Connects Communities With State Support
California’s Prohousing Designation is awarded to cities and counties that adopt local policies intended to accelerate housing production, lower housing costs and expand housing opportunities. HCD lists measures such as streamlining multifamily housing development and allowing greater housing density near jobs and transit among the types of policies associated with the designation.
The designation also makes jurisdictions eligible for the Prohousing Incentive Program and other state funding opportunities. The state describes the incentive funding as additional resources for jurisdictions working on housing and community development activities.
HCD reported that 75 California jurisdictions now hold the designation. Since October 2025, 10 jurisdictions have received the designation for the first time, including Arvin, Benicia, Chico, Culver City, Fort Bragg, Marina, Sand City, Santa Barbara, Santa Barbara County and Trinity County.
During the same period, Fontana, Oakland, Roseville, Sacramento and West Sacramento were redesignated as Prohousing communities, according to HCD.
The designation is therefore separate from the funding award itself. A jurisdiction first must hold the Prohousing Designation to qualify for the incentive program. The latest $11.3 million allocation applies that funding structure to 13 eligible communities.
California’s housing policies also include measures affecting residential development and local planning. A recent review of new California housing laws details changes affecting certain residential projects and housing development procedures.
State Housing Incentive Program Reaches $70.3 Million
The Prohousing Incentive Program has now awarded $70.3 million, according to HCD. The fourth round accounted for approximately $11.3 million of that total.
The program is funded through the Building Homes and Jobs Trust Fund, which was established under Senate Bill 2 in 2017 to create and conserve affordable housing. HCD administers the program and limits eligibility to jurisdictions with Prohousing Designation.
HCD says PIP awards are intended to help accelerate affordable housing production and preservation. Additional bonus funding can be available based on a jurisdiction’s Prohousing Designation Program application score.
The state’s housing department has also reported broader housing production figures alongside the latest award announcement. Annual residential construction increased from about 70,000 homes in 2018 to about 111,000 in 2024, according to HCD. The department also reported that more than 682,000 homes have been built statewide since 2019.
Those figures are separate from the Prohousing Incentive Program awards and describe statewide housing construction rather than homes directly created by the $11.3 million allocation.
The distinction is relevant because state funding can support housing efforts at different stages, including projects that have already secured local approvals but still face financing obstacles. California has also reported shovel-ready affordable housing delays involving projects that have cleared approval processes but have not begun construction.
California Prohousing Jurisdictions Expand Across the State
The number of designated jurisdictions has reached 75, giving local governments across California access to the Prohousing Incentive Program and other state funding opportunities. The designation covers cities and counties that meet HCD’s requirements for local housing policies and reforms.
HCD said Prohousing policies can include streamlined multifamily housing approvals, zoning changes that allow additional housing near employment and transit, and measures that create more affordable homes in areas that have historically excluded lower-income households.
The 13 communities receiving the latest funding therefore enter the fourth-round allocation with an existing state designation. Their inclusion expands the geographic reach of the program across multiple California regions.
The state has also established additional funding and accountability mechanisms tied to local housing obligations. HCD’s Housing Accountability Unit, established in 2021, monitors local compliance with state housing laws. HCD reported that the unit had helped unlock 13,988 housing units, including more than 3,960 affordable units, that might otherwise have remained in local planning processes.
The Prohousing Incentive Program operates within that broader state housing framework while maintaining a specific focus on providing additional resources to designated jurisdictions. The latest awards give 13 cities and counties access to a combined $11.3 million in state funding for eligible local housing activities.
Frequently Asked Questions
What is California’s Prohousing Incentive Program?
The Prohousing Incentive Program is administered by the California Department of Housing and Community Development. It provides additional funding to local governments that hold the state’s Prohousing Designation to support affordable housing production, preservation and related community development activities.
Which California communities received the latest housing awards?
The recipients are Arvin, Benicia, Chula Vista, Culver City, Indio, Lancaster, Santa Ana, Santa Barbara, Sunnyvale and Woodland, plus Nevada County, Santa Barbara County and Trinity County.
How much funding did California award to Prohousing communities?
California awarded $11.3 million in the fourth round of the Prohousing Incentive Program. HCD said total awards through the program have reached $70.3 million.
How many California jurisdictions have Prohousing Designation?
HCD reported that 75 California jurisdictions currently hold Prohousing Designation. The designation makes those jurisdictions eligible for the Prohousing Incentive Program and other state funding opportunities.
How has California awarded funding through the Prohousing program?
The state distributes Prohousing Incentive Program funds through rounds administered by HCD. Eligibility is limited to jurisdictions with Prohousing Designation, with awards supporting eligible housing and community development activities.
