Process for State Funded HSIP Projects

Senate Bill (SB) 137 (Chapter 639 of the 2019 Statues), effective October 8, 2019, added Section 182.85 to the Streets and Highways Code that authorizes Caltrans to allow up to $100 million of federal local assistance funds be exchanged for non-federal State Highway Account (SHA) funds.  The exchange requires funds be used by the city, county, or other eligible recipients on projects for purposes for which the federal local assistance funds being exchanged were originally intended in order to meet national transportation goals and performance management measures (23 U.S.C. Sec. 150), and must satisfy the intent of the Legislature, as described in Section 2333. This made it possible to use state funds in delivering some HSIP projects.

All HSIP Cycle 10 projects will be funded with state funds. Click the below link to view the List of Approved HSIP Cycle 10 Projects. A “next steps” letter has been sent to the successful applicants.

The delivery of the HSIP Cycle 10 projects must meet the below milestones:

  1. The PE phase (if applicable) must be allocated by 12/31/2021;  
  2. The Construction (CON) phase must be allocated by 3/31/2024; and
  3. The project must be completed and closed out by 3/31/2026.

Prior to starting the work, please submit the funding allocation request. The allocation request is processed through Caltrans Division of Local Assistance (DLA), not the California Transportation Commission (CTC). 

The funding allocation request is Phase specific, i.e. Preliminary Engineering (PE), Right of Way (ROW) or Construction (CON). The local agency must submit a separate Request for Funding Allocation prior to starting each phase of the project. Please use the below templates in preparing your funding allocation request:

The below links provide a quick guide to implementing state funded HSIP projects and documents needed in preparing funding allocation requests:

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