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Housing Incentive Pool

Grants Reward Cities, Counties for Housing Production and Preservation

The Housing Incentive Pool, or HIP for short, is a $76 million grant program that uses transportation infrastructure dollars to reward the cities and counties that produce or preserve the largest number of affordable housing units in designated Priority Development Areas or in Transit Priority Areas from 2018 through 2022.

Housing construction
Thursday, November 1, 2018

MTC is establishing a pilot program through which cities and counties can compete for $5 million in HIP grants for infrastructure improvements around affordable housing developments. Guidelines for the pilot will be developed by the Commission and the Bay Area's county congestion management agencies in late 2018 and early 2019.

The remaining $71 million of HIP money will be distributed on a per-unit basis to the 15 jurisdictions that issue certificates of occupancy for the greatest number of eligible housing units — both newly-built and preserved as affordable to low-, very-low- and moderate-income households over the five calendar years 2018 through 2022.

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

Criteria for the HIP program include:

  • 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 pro-rated share of a single HIP unit based on this 55-year standard.
  • Newly-constructed units must be deed-restricted for continued affordability to low-, very-low or moderate-income households.
  • To be eligible for HIP funding, each city or county must have its overall Housing Elements 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.

 

For more information about the Housing Incentive Pool, please contact Gillian Adams of the MTC-ABAG staff at 415.820.7911 or by e-mail at gadams@bayareametro.gov.