Agenda Item: 9
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: June 9, 2026
SUBJECT: FISCAL YEAR 2026-2027 LOS ANGELES COUNTY AFFORDABLE
HOUSING SOLUTIONS AGENCY ANNUAL BUDGET FOR
MEASURE A FUNDS
DEPARTMENT: Community Development
PRESENTER: Masis Hagobian
RECOMMENDED ACTION
City Council:
1. Approve the Fiscal Year 2026-27 budget for Los Angeles County Affordable Housing Solutions Agency (LACAHSA) funding and authorize its submission.
2. Increase Measure A LACAHSA revenues and corresponding appropriations as follows:
increase revenue account 275-462101 (LACAHSA PPO) by $2,439,239 and appropriate the same amount to expenditure account 2753208-517101; increase revenue account 277-462101 (LACAHSA TA) by $138,599 and appropriate the same amount to expenditure account 2773210-516102.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review.
BACKGROUND
The Los Angeles County Affordable Housing Solutions Agency (LACAHSA) was established through Senate Bill (SB) 679 (Chapter 557, Statutes of 2024) as a regional entity responsible for administering voter-approved funding to support affordable housing solutions throughout Los Angeles County (County).
Funding for LACAHSA is provided through Measure A, a permanent one-half cent countywide sales tax approved by County voters in November 2024. Measure A revenues are intended to support the production and preservation of affordable housing, renter protections, and homelessness prevention efforts across the County.
Under SB 679, the City of Santa Clarita (City) is designated as an Eligible Jurisdiction and is therefore entitled to receive a direct annual allocation of Measure A funds from LACAHSA.
FISCAL YEAR 2026-27 ALLOCATION
For Fiscal Year (FY) 2026-27, the City’s Measure A allocation from LACAHSA totals $3,409,431 in baseline funding. The allocation is primarily based on the City’s share of the County’s overall lower-income housing need established through the Regional Housing Needs Assessment (RHNA) and will be subject to change every year based upon consumer spending in the County.
As required by LACAHSA, the City’s FY 2026-27 allocation is divided into three funding categories as summarized below:
LACAHSA Funding Category FY 2026-27 Allocation Administering Agency Production, Preservation, and Ownership
(PPO)
$2,439,239 City
Technical Assistance $ 138,599 City
Renter Protection and Homelessness
Prevention (RPHP)
$ 831,593
LACAHSA
Total $3,409,431
To receive Measure A funds, the City is required to submit an annual budget to LACAHSA describing how the fiscal year allocation will be used. The budget must be approved by the City Council, each year, prior to submission to LACAHSA. The deadline to submit the FY 2026-27 budget is June 15, 2026.
The budget is intended as a planning document, and any expenditures will follow the City’s Purchasing Policy, requiring further City Council action above established thresholds.
CITY COUNCIL AFFORDABLE HOUSING STUDY SESSION
On October 7, 2025, the City Council held a Study Session to discuss affordable housing goals under the Regional Housing Needs Assessment (RHNA), review the City’s existing inventory of affordable housing units, and review available funding. Staff also provided information regarding inclusionary housing and discussed the financial challenges associated with developing affordable housing, including the level of public subsidy often required to make projects feasible.
The City Council emphasized the importance of ensuring quality and dignity in affordable housing design. Following discussion, the City Council directed staff to develop a grant program to utilize available affordable housing funding and incentivize affordable housing development, and to return to the City Council with further analysis regarding the feasibility of a local inclusionary housing ordinance.
PROPOSED USE OF FUNDS BY CATEGORY
Production, Preservation, and Ownership (PPO) - Administered by City
The PPO category is designed to support the production, preservation, and ownership of affordable housing through investments that help close financing gaps and accelerate development.
In the City’s FY 2026-27 budget, PPO funds are proposed to provide direct project investments to address financing gaps for affordable housing development. Funding will support entitled affordable housing projects in need of gap financing and/or incentivize additional affordable housing projects to help meet RHNA production targets. The proposed use of PPO funds is consistent with the direction provided by the City Council at its study session.
Staff is developing a formal program framework to guide the use of these funds. To support this effort, the City released a Request for Proposals (RFP) to retain a consultant with expertise in affordable housing finance and program development. The consultant will assist in establishing program guidelines, eligibility criteria, funding priorities, and administrative procedures. Staff anticipates completing program design and returning to the City Council with recommendations for implementation in early 2027.
Technical Assistance (TA) - Administered by City
The TA category is designed to provide resources for Eligible Jurisdictions to obtain professional expertise to support the planning, design, and administration of their housing programs.
Approved eligible uses of TA funds by LACAHSA include policy development, training and professional services support, and program design, research, and evaluation.
In the City’s FY 2026-27 budget, TA funds are proposed to retain a professional consultant to conduct a nexus study related to affordable housing policies and programs. The study would evaluate potential fee structures and provide the technical analysis necessary to ensure any future fee program considered by the City is consistent with federal and state regulations. The consultant would prepare the study on behalf of City staff to support ongoing discussions related to affordable housing strategies and implementation options. Any future policy direction or program proposals would return to the City Council for consideration.
Renter Protection and Homeless Prevention (RPHP) - Administered by LACAHSA The RPHP category is designed to address housing instability, reduce evictions, and prevent people from falling into homelessness. Program requirements are designed to provide temporary, short-term assistance to Santa Clarita residents who are currently housed in order to prevent the loss of housing or resolve a housing crisis in a timely manner.
The recommendation is to have LACAHSA continue to administer the RPHP program on the City’s behalf. In FY 2025-26, the City Council approved participation in LACAHSA’s Integrated Service Model (ISM) and authorized LACAHSA to administer the City’s RPHP funds on the City’s behalf. While administered through LACAHSA’s regional program structure, the City’s RPHP allocation will remain dedicated to eligible Santa Clarita residents. The ISM has been under development and renamed “RenterAid”. LACAHSA is planning to pilot the RenterAid system to Gateway Cities Council of Governments, South Bay and Long Beach Cities in early fall 2026, and is expecting to launch in January 2027 for Santa Clarita Residents.
Through RenterAid, LACAHSA will oversee program administration, coordinate service
delivery, ensure compliance with applicable program and legal requirements, and contract with subrecipient agencies to provide direct assistance to Santa Clarita residents. The City will continue to coordinate closely with LACAHSA to ensure that program activities align with local priorities and that funding is restricted to eligible Santa Clarita residents.
ALTERNATIVE ACTION
Other actions as determined by the City Council.
FISCAL IMPACT
Approval of the FY 2026-27 LACAHSA budget will increase Measure A revenues and corresponding appropriations in the City's budget. Revenue account 275-462101 (LACAHSA PPO) will increase by $2,439,239 with a corresponding appropriation to expenditure account 2753208-517101. Revenue account 277-462101 (LACAHSA TA) will increase by $138,599 with a corresponding appropriation to expenditure account 2773210-516102.
In addition, $831,593 from the City's FY 26-27 allocation will be retained by LACAHSA to administer an RPHP program on the City's behalf.
The FY 2026-27 LACAHSA budget is fully supported by Measure A revenues and will have no net impact on the General Fund.
ATTACHMENTS
FY 26-27 LACAHSA Budget