California Governor Gavin Newsom today announced an allocation of $11.3 million to 13 communities that have earned the state’s Prohousing Designation, aimed at accelerating the creation of new affordable housing. This funding is part of California's ongoing strategy to address its housing shortage and reduce homelessness through innovative local solutions.
The funding was distributed through the fourth round of the Prohousing Incentive Program, administered by the California Department of Housing and Community Development (HCD). This program has now awarded a total of $70.3 million to support local housing initiatives. Governor Newsom emphasized that “Investing in our communities by creating more homes is an investment in California's future — fostering greater stability, strengthening families, and building more resilient communities for generations to come.”
The latest awardees include the cities of Arvin, Benicia, Vista, Culver City, Indio, Lancaster, Santa Ana, Santa Barbara, Sunnyvale, Woodland, and the counties of Nevada, Santa Barbara, and Trinity. California Housing and Homelessness Secretary Tomiquia Moss said, “In California, it pays to be prohousing, and this award is proof. Our Prohousing Designation Program is a national leader in embracing creative solutions to increasing affordable housing development.”
The Prohousing Designation is awarded to cities and counties demonstrating exceptional efforts in addressing housing affordability and homelessness. These jurisdictions implement policies that streamline multifamily housing development, up-zone near jobs and transit, and create affordable homes in historically underserved areas. HCD Director Gustavo Velasquez noted that “Prohousing communities are embracing real, forward-thinking solutions, and this designation signals to residents, builders, and funders that these communities are ready to get homes built by cutting red tape.”
Beyond these awards, Governor Newsom's administration is implementing broader reforms, including streamlining housing construction, funding new shelters, and addressing mental health through Proposition 1 and the CARE court system. The Housing Accountability Unit, established in 2021 and expanded in 2024, monitors local compliance with housing laws and has “unlocked” nearly 14,000 housing units.
These comprehensive efforts are yielding measurable results, including the largest statewide reduction in unsheltered homelessness in 16 years, a 59% increase in annual residential construction since 2019, and a 57% reduction in average development application approval times. California has built over 682,000 homes since 2019 and planned for 3.6 million new homes, including 1.4 million affordable units.