Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: September 9, 2025
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE LOS
ANGELES COUNTY AFFORDABLE HOUSING SOLUTIONS
AGENCY FOR AFFORDABLE HOUSING PRODUCTION,
PRESERVATION, AND OWNERSHIP; TECHNICAL ASSISTANCE;
RESEARCH AND POLICY; AND RENTER PROTECTION AND
HOMELESSNESS PREVENTION FUNDING
DEPARTMENT: Community Development
PRESENTER: Tracy Sullivan
RECOMMENDED ACTION
City Council to authorize City Manager or designee to execute a Memorandum of Understanding with the Los Angeles County Affordable Housing Solutions Agency for the disbursement and use of Measure A funds in substantially the form attached hereto, subject to approval of any further minor modifications by the City Manager and City Attorney.
BACKGROUND
In 2022, the California State Legislature passed Senate Bill (SB) 679, which created the Los Angeles County Affordable Housing Solutions Agency (LACAHSA). The Los Angeles County Affordable Housing Solutions Agency aims to increase the supply of affordable housing in Los Angeles County (County) by providing enhanced funding and technical assistance at a regional level for renter protections, affordable housing preservation, and new affordable housing construction.
In 2024, County voters approved Measure A, a permanent half-cent sales tax to fund homeless services and affordable housing development throughout the County. Measure A is expected to generate over $1 billion in revenue annually.
The Los Angeles County Affordable Housing Solutions Agency will receive 35.75 percent of Measure A revenues for affordable housing production and preservation, renter protection and homelessness prevention, and technical assistance. In turn, LACAHSA must pass through 70 percent of funding to local governments.
The City of Santa Clarita (City) is identified in SB 679 as an eligible jurisdiction to receive direct funding from LACAHSA. For the first year, the City is projected to receive a total allocation of $3,457,981. This funding will be distributed across three distinct eligible use categories: (1) Production, Preservation, and Ownership of Affordable Housing, (2) Renter Protection and Homelessness Prevention, and (3) Technical Assistance.
Prior to receiving any funding, the City is required to execute a Memorandum of Understanding (MOU) with LACAHSA. The MOU is a binding commitment of the City to comply with all requirements of SB 679 and Measure A in the use of the funding and to comply with all policies and guidelines of LACAHSA. If approved, the MOU will remain in effect for one year and automatically renew each year for up to five years. The terms and conditions will remain the same at each renewal, except for the allocation amounts which may vary year-over-year depending on available revenues.
After the MOU is fully executed, the City will be required to prepare an annual Expenditure Plan outlining how it intends to use its LACAHSA allocation. The Expenditure Plan will be presented to the City Council each year for review and approval prior to its submission to LACAHSA.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
The City will receive an annual direct allocation of funding from the Los Angeles County Affordable Housing Solutions Agency to support affordable housing, technical assistance, and homelessness prevention. Each year, the allocation amount and proposed uses will be presented to the City Council as part of the Annual Expenditure Plan process, as required by LACAHSA.
ATTACHMENTS
LACAHSA Memorandum of Understanding Santa Clarita