Council Applies for $1.44 Million Pro-Housing Grant Amid State Scrutiny

The City Council on Tuesday approved an application seeking up to $1.44 million in state funding for affordable housing, a move that could help the city preserve its pro-housing designation amid state scrutiny over its commitment to affordable housing.

The $1.44 million grant is part of the state's Prohousing Incentive Program Round Four, a fund designed to reward cities that exceed state-mandated affordable housing requirements.

Riverside earned its pro-housing designation from the state in 2023; however, recent numbers show the city is falling behind on its state-mandated housing targets.

A city report earlier this month shows Riverside has permitted less than 20 percent of its state-mandated housing goal of 18,458 new homes between 2021 and 2029.

Most of the permits issued have been in the above-moderate-income housing category, with no new housing created for the very-low-income category since 2021 and no new housing for the low and moderate income categories since 2023.

However, if the $1.44 million is awarded it will aim to close that gap, since HCD requires that the money be reserved for affordable housing projects serving very-low-income households, according to a city report.

"Pursuing the…grant aligns with the city's broader strategy to expand funding opportunities and accelerate the production of affordable housing," a spokesperson for the city told the Gazette. "These funds would directly support the development of new affordable units and help address local housing needs."

The spokesperson said the city is currently working with several developers on proposed affordable housing projects. If the grant is awarded, the city will allocate funds to a project that is shovel-ready, meaning it could begin construction within 12 to 18 months.

The city spokesperson said based on current proposals, the next shovel-ready project could support the development of approximately 10 to 65 units.

"Consistent with the Prohousing Incentive Program priorities, the city will focus on developments that expand housing opportunities for households earning at or below 60 percent of the area's median income, with an emphasis on increasing the supply of affordable units," the spokesperson said in a statement.

Riverside faces scrutiny from state housing regulators over the council's January rejection of $20.1 million in Homekey+ funding for the University Terrace project, which would have converted the Quality Inn at 1590 University Ave. into 114 permanent supportive studio apartments.

The Inland Counties Legal Services, the American Civil Liberties Union of Southern California and the Public Interest Law Project sent a joint letter in February to the Council citing potential violations of housing law and fair housing protections. HCD sent a separate letter raising similar concerns.

"Moreover, the HCD notes that the City is far behind meeting its regional housing needs allocation (RHNA), having permitted 0 percent of its very-low-income RHNA but more than 31 percent of its above-moderate-income RHNA," the HCD letter stated.

A city spokesperson said Riverside's Housing and Human Services Department has not been contacted by HCD's Housing Accountability Unit or notified of any investigation as of March 25.

However, a spokesperson for the HCD told the Gazette that "HCD is closely monitoring the Riverside matter but cannot comment on the specifics of an open matter."

"To maintain the prohousing designation…a city must enact and implement proposed policies; facilitate the planning, approval, or construction of a variety of housing types; implement integrated planning and development consistent with state planning priorities; meet obligations to Affirmatively Further Fair Housing; comply with state housing laws; and implement housing element programs," the HCD spokesperson said in a statement.

By Micaela Ricaforte