Marin jurisdictions find state ‘pro-housing designation’ enticing

Marin cities and towns are considering pursuing California’s “pro-housing designation,” a label that would provide communities with resources to accelerate the production of new homes.

The state hasn’t designated any Marin communities as pro-housing yet, but Larkspur has applied and Corte Madera has expressed interest. San Rafael and the county are also exploring the opportunity.

In Corte Madera, the Town Council directed staff on Tuesday to take a closer look at what it would take for the town to earn the designation. The effort could help the town tackle its share of the state housing quota.

“It’s seems to me like there’s grant advantages that we could get,” Councilmember Eli Beckman said. “Seems really beneficial.”

Like all Marin communities, Corte Madera is under a state mandate to increase its housing stock. From 2023 to 2031, the town must facilitate the creation of 725 new residences while also “affirmatively furthering fair housing.”

Communities that have earned the label are provided with incentives to gain access to a share of $26 million in competitive grants from the state Department of Housing and Community Development.

The program was established in 2021 as a critical step to meet the state’s goal of 2.5 million new homes over the next eight years. At least 1 million of those residences are meant to be low-income homes.

As of this month, 30 California jurisdictions have received the designation. Six are in the Bay Area, including Santa Rosa, Sonoma County and Windsor.

Martha Battaglia, a Corte Madera planner, said towns earn points through adoption of “pro-housing” policies.

The policy categories include favorable zoning and land use; accelerated production timelines; reducing construction and development costs; and providing financial subsidies. A town must have at least one policy in each category.

Examples of policies include eliminating or reducing parking requirements for certain projects; establishing ministerial approval for a variety of housing types; allowing impact fee waivers for developers; and providing grants for accessory dwelling units.

Each policy has a specific score attached. A town must score 30 points or more across the four categories to be eligible for the designation.

Pro-housing communities are also eligible for other funding opportunities, including up to $50 million from state’s the Affordable Housing and Sustainable Communities program. There are also potential grants through the Transformative Climate Communities fund, which helps pay for development and infrastructure projects that provide environmental and health benefits to disadvantaged neighborhoods.

Through a pilot version of the program, $33.2 million was awarded to 18 California cities. That included $620,000 for El Cerrito, $2.4 million for Oakland and $890,000 for Redwood City.

“Those numbers are not trifling amounts, so I would definitely like to have a fuller discussion when we get to our next work plan and figure out whether that path is right for us,” Beckman said.

Corte Madera has a score of about 25, according to Battaglia. Officials have identified several policies in the town housing element that would help it break into the eligibility threshold.

It would take a strategic plan to draft, propose and introduce new housing policies to get to that point. Town officials expect to report their findings at a strategic planning session in January, Town Manager Adam Wolff said.

Likewise, the county and San Rafael could meet the criteria through implementation of their housing elements, officials said.

“There are a number of regional and state funding opportunities that favor pro-housing communities, so pursuing this designation would support Marin’s efforts not just for housing but also towards infrastructure and community needs,” said Sarah Jones, director of the Marin County Community Development Agency.

Alexis Captanian, San Rafael’s housing analyst, said seeking the designation is one of the goals of the city’s housing element.

“The city is committed to meeting the housing needs of its residents, affirmatively furthering fair housing and overcoming the obstacles that have impeded housing development in the past,” Captanian said.

Larkspur submitted its application for the designation in November. The city is working with the state housing department to earn approval, said City Manager Dan Schwarz.

Meanwhile, Corte Madera is also pursuing the priority sites program, which is administered through the Association of Bay Area Governments and the Metropolitan Transportation Commission.

The town is exploring whether to name the Macy’s store and the surplus parking lot at the Village at Corte Madera mall as a priority site. The 7.5-acre property has been identified as a housing opportunity site with a capacity of about 300 residences and 100,000 square feet of commercial space.

Another site being considered includes four contiguous lots at 2 and 10 Fifer Ave. and at 110 and 150 Nellen Ave., the location of a gym and Big 5 Sporting Goods store. The site has been identified as a place for up to 120 dwellings.

The priority sites designation would provide technical assistance with conceptual planning, architecture and engineering, as well as funding. Projects on nominated sites will have access for a piece of $28 million grants, pending approval by the state housing department.