STAFF REPORT
Meeting Date:
October 14, 2025
CONSENT
13 SUBJECT: CITY OF LAGUNA BEACH’S LOCAL HOUSING TRUST FUND APPLICATION
FOR GRANT FUNDS FROM THE STATE OF CALIFORNIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT (HCD) LOCAL HOUSING
TRUST FUND PROGRAM FROM THE VETERANS AND AFFORDABLE
HOUSING BOND ACT OF 2018
RECOMMENDATION: It is recommended that the City Council:
1. Adopt a Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AUTHORIZING THE LAGUNA BEACH LOCAL HOUSING TRUST FUND’S APPLICATION AND EXECUTION OF RELATED DOCUMENTS
UNDER THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT LOCAL HOUSING TRUST FUND PROGRAM FROM THE VETERANS AND AFFORDABLE HOUSING BOND ACT OF 2018”; and
2. Find the action is not a project subject to CEQA under Public Resources Code Section 21065 and Section 15378(b)(5) of the CEQA Guidelines.
SUMMARY OF THE MATTER
This report recommends that the City Council adopt a resolution required by the California Department of Housing and Community Development (HCD) to authorize a previously submitted $2.5 million grant application under Round 5 of the Local Housing Trust Fund (LHTF) Program, authorize the City Manager and Assistant City Managers to act as signatories for all required program documents, and confirms the City’s commitment to utilize funds in compliance with program regulations and to provide the required local funding match, if the grant funds are awarded. (Attachment 1.) The action supports the City’s efforts to secure funding for affordable housing development through the Laguna Beach Local Housing Trust Fund (LBLHTF).
DISCUSSION
On April 9, 2024, the City Council approved the establishment of the LBLHTF (Attachment 2). This action created a dedicated local mechanism to apply for and receive state and federal housing grants.
At the same meeting, the City authorized the submittal of a $2.5 million grant application to the California Department of HCD under Round 5 of the LHTF Program Notice of Funding Availability (NOFA) dated July 9, 2024. As part of the application, the City committed to a conditional dollar-for-dollar match of the grant funds, totaling an additional $2.5 million.
The table below identifies the specific City funding sources and corresponding allocations to meet the required $2.5 million local match. During the April 9, 2024 City Council meeting, the balances of the Housing In-Lieu Fee Fund and the Housing Fund were lower than their current balances as of October 7, 2025. Staff has amended the proposed source contributions to reflect the increase in available housing funds, which reduces the draw from the Parking Fund by $800,000.
Resolution for the Laguna Beach Local Housing Trust Fund October 14, 2025
Although the combined housing funds could fully satisfy the $2.5 million match, staff recommends retaining a portion of the Housing Fund for other housing-related programs. For example, the Aging in Place Program partnership with Habitat for Humanity, which provides home modifications for senior citizens, has expended its current allocation. Staff anticipates returning to the City Council in the coming months to recommend continuing the program with an appropriation of $100,000.
Fund
Available Fund
Balance as of
10/07/2025
Amount for Grant
Match Identified
April 9, 2024
Proposed Adjustment
to Grant Match Based
on Available Fund
Balance
Inclusionary Housing In-Lieu
Fees
$779,990 $447,000 $779,990
Housing Fund $1,766,277 $950,000 $1,500,000
Parking Fund $3,241,446 $1,103,000 $220,010
Total $5,787,713 $2,500,000 2,500,000
HCD is now in the final stages of reviewing applications and has requested that the City adopt a formal resolution authorizing designated staff to execute program-related documents. Adoption of this resolution is a necessary condition for the City to remain eligible for award consideration and to execute the grant agreement if selected.
The resolution authorizes the City Manager and Assistant City Managers to act as signatories for all required program documents and confirms the City’s commitment to utilize funds in compliance with program regulations and to provide the required local funding match.
FINANCIAL ANALYSIS
There is no immediate fiscal impact from adoption of the resolution. If awarded, the City will receive $2.5 million in state grant funds and will be required to provide a matching amount of $2.5 million from identified local sources. A future appropriation will be brought to the City Council for approval prior to accepting and expending grant funds or matching funds.
ENVIRONMENTAL ANALYSIS
The recommended action consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; Resolution for the Laguna Beach Local Housing Trust Fund October 14, 2025
14 CCR Section 15378(b)(5).) The recommended action relates to acquisition of funds for affordable housing projects without binding the City to a project or particular course of action that would have a direct or indirect physical change in the environment.
ATTACHMENTS
1. Resolution for HCD Grant (Pgs. 4-7)
2. April 9, 2024, City Council Meeting Minutes (Pg. 8)
Submitted By:
.
Approved: .David A Kiff
Jeremy Frimond, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Jeremy Frimond, Assistant City Manager Jane Abzug, Assistant City Attorney