Housing Incentive Pool (HIP) Grants

The Housing Incentive Pool (HIP) grant program encourages the production and preservation of affordable housing.

Noah Berger

The Housing Incentive Pool (HIP) provides transportation grants to promote the production and preservation of affordable housing.

Established by MTC in October 2018, the Housing Incentive Pool includes $46 million in state funds administered by MTC through the Regional Transportation Improvement Program (RTIP), plus $30 million in flexible federal funds through the second round of the One Bay Area Grant (OBAG 2) program.

Rewards Top Performers

MTC will distribute the $71 million in Housing Incentive Pool grants on a per-unit basis to the 15 jurisdictions that issue certificates of occupancy for the greatest number of eligible housing units over the five calendar years 2018 through 2022. This includes both newly-built units, and those preserved as affordable to households with low-, very-low- and moderate-incomes. Grants will be awarded to the top 15 jurisdictions in mid-2024, after 2022 housing data becomes available (in late 2023).

North Bay Housing Incentive Pool Pilot

MTC set aside an additional $5 million for a pilot program to support areas in the region of relative housing affordability with near-term transportation investments. The pilot is focused on transportation projects that will support affordable housing in the North Bay counties of Marin, Napa, Solano and Sonoma, in areas that are designated for future growth and have high-quality transit service.

Staff Contact

Mallory Atkinson, Funding Policy & Programs
Phone: (415) 778-6793
Email: matkinson@bayareametro.gov

Housing Production Data

Visit the Vital Signs website to understand the demand for housing and the development climate in the region.

Regional Transportation Improvement Program (RTIP)

The RTIP is part of the State Transportation Improvement Program. The 2020 RTIP includes funding for eight new projects in five of the nine Bay Area counties.

One Bay Area Grant (OBAG 2)

The One Bay Area Grant guides MTC’s distribution of federal transportation funding.

Eligibility Criteria

Criteria for the Housing Incentive Pool grant program include:

  • Newly-constructed units must be deed-restricted for continued affordability to low-, very-low or moderate-income households.
  • Preserved affordable housing units must either be subsidized multifamily properties that have been identified by the California Housing Partnership Corp. as being at high or very-high risk of conversion to market-rate rents, or multifamily properties with affordable-but-unrestricted rents on which new long-term rent restrictions have been placed.
  • A preserved affordable housing unit with deed restrictions running at least 55 years will be counted as one HIP unit. Units with shorter-term deed restrictions will receive a prorated share of a single HIP unit based on this 55-year standard.
  • To be eligible for HIP funding, each city or county must have its overall Housing Element certified by the California Department of Housing and Community Development, and also demonstrate compliance with state housing laws related to surplus lands, accessory dwelling units and density bonuses. Self-certification through a local resolution is allowed to demonstrate compliance with these final three requirements.