San Rafael's City Council votes Monday, Oct. 5, on applying for California's Prohousing Designation, which could make San Rafael the first Marin County jurisdiction to earn the status if approved by the state.

Staff recommends the council adopt a resolution authorizing the application to the state Department of Housing and Community Development, according to a city staff report. The Prohousing Designation Program, or PDP, rewards cities and counties that exceed state housing law.

Seventy-five California jurisdictions have earned the designation as of Aug. 10. None are in Marin County.

The designation would unlock grant programs the city cannot currently access. One is the Prohousing Incentive Pilot Program, which funds affordable housing development, acquisition and homelessness services. The lowest award in the most recent funding cycle was $315,762, according to the staff report.

The designation can provide priority processing or additional funding points in seven other state grant programs covering affordable housing, infrastructure, transportation and climate resilience.

The staff report notes that San Rafael's Affordable Housing Trust Fund has shrunk in recent years. More developers are including affordable units on-site under the State Density Bonus Law, reducing in-lieu fee payments to the fund. In 2026, the city received $508,032 in Community Development Block Grant funding through Marin County.

Housing Manager Alexis Captanian and colleagues in the Community and Economic Development Department prepared the report. Staff performed a self-assessment and determined San Rafael exceeds the minimum score required on the state's application, provided the city continues implementing its Housing Element programs.

Those programs include developing a process for housing on city-owned lots and preparing a plan for the North San Rafael Priority Development Area. They also include adopting objective design standards, reducing fees for affordable housing projects and revising parking standards. Staff expects to bring those items to the council through 2028.

The application stems from the city's 2023-2031 Housing Element, adopted in 2023, which specifically called for pursuing the designation. San Rafael's Regional Housing Needs Allocation calls for planning to accommodate 3,220 housing units during the 2023-2031 cycle.

Mayor Kate Colin and Councilmember Eli Hill reviewed the application at a Sept. 22 Economic Development and Housing Subcommittee meeting. On Jan. 8, Colin highlighted the broader housing pressure facing the city in a statement about a Bay Area Housing Finance Authority affordable housing project. "Marin County is the third most expensive rental market in the Bay Area and the state, making it especially critical to preserve existing affordable housing and increase supply," she said.

If the council approves the resolution and San Rafael submits a completed application, HCD has 60 days to review it and provide feedback.

The vote is listed as Agenda Item 3.a at the council's Oct. 5 meeting, which begins at 6 p.m. at San Rafael City Hall, 1400 Fifth Ave.