Palo Alto, long known for putting the brakes on new development, is now trying to cash in on the state’s Prohousing Designation Program. City staff have drafted an application that, if approved, would give Palo Alto priority access to state housing and infrastructure dollars. The draft, posted for public review last Monday, shows the city giving itself 41 points on the state checklist, comfortably above the 30-point threshold. City planners walked the City Council through the materials at Wednesday's study session, and the council is expected to weigh formal submission in mid-June.
According to the public review packet from the City of Palo Alto, the application package includes a self-scoring sheet, a proposed schedule for completing required policies, and a summary of encampment best practices. The packet lists a Total Self Score (Based on Appendix 3): 41. The materials will be available online for 30 days, and the city says it will accept written comments through June 17, either through the online comment form or at the Development Center.
How the state program works
The Prohousing Designation Program requires cities and counties to earn at least 30 points across four categories: favorable zoning and land-use rules, streamlined permitting, cost-reduction measures, and financial subsidies. The California Department of Housing and Community Development (HCD) says it will review applications in roughly 60 days. The designation is not competitive; any jurisdiction that meets the points threshold and HCD’s other requirements can qualify. HCD also warns it can review and revoke a designation if required policies are not carried out within the program timelines.
What Palo Alto stands to gain
If Palo Alto lands the designation, it would gain an edge in competing for a variety of state programs and would become eligible to apply for the Prohousing Incentive Program, or PIP, which has already pushed tens of millions of dollars to local governments. In 2023, HCD announced $33.2 million in PIP awards, noting that hundreds of Californians will benefit from today’s awards. The Prohousing label also comes with priority status or scoring boosts in other state grant programs, including Affordable Housing and Sustainable Communities and Infill Infrastructure. Palo Alto’s application leans on local efforts such as Homekey Palo Alto, Mitchell Park Place, and the city’s safe parking program to underline its case.
A recent turn for a slow growth city
Palo Alto has traditionally backed low-rise development and tight local control, a mix that critics say helped keep housing production low. Public feedback and city documents over the years have repeatedly invoked a 50-foot height ceiling in several districts. That local stance collided with state housing law in recent years, as a wave of builder’s remedy applications and related litigation followed the city’s failure to hit earlier housing planning deadlines, a trend tracked by the Mountain View Voice. The Prohousing push reads as staff trying to turn that legal and political pressure into updated policies and better odds at grant funding; application materials show a mix of already enacted and proposed actions that together reach the program’s scoring criteria.
Next steps and timeline
The public comment period runs through June 17, and the City Council is expected to vote in mid-June on a resolution that would authorize final submission. If the council signs off, the city manager will finalize and send the packet to HCD. The state has said it expects to review applications in about 60 days and to move quickly on awards once approvals are granted, so Palo Alto could learn its Prohousing fate within weeks of submitting, if city leaders decide to move ahead.
