City Council
Report
City Council Meeting: May 10, 2022
Agenda Item: 3.F
1 of 3
To: Mayor and City Council
From: Andy Agle, Director, Community Services Department, Housing and Human Services
Subject: Adoption of a Resolution Authorizing Application for Grant Funds for State Affordable Housing Funding Opportunity
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution authorizing the application for grant funds in an amount not to exceed $5M from the California State Department of Housing and Community Development for the 2022 round of Local Housing Trust Fund Program Matching Grant Funding (Attachment A) in the Community Services Department.
2. Authorize the City Manager to execute all necessary documents to apply for the grant, accept the grant, if awarded, and accept all grant renewals, if awarded.
Summary
The California Department of Housing and Community Development (HCD) offers an annual opportunity for local public agencies to apply for matching grant funding to finance affordable housing development. The Local Housing Trust Fund (LHTF) program offers awards not to exceed $5 million through a competitive application process. Santa Monica was awarded $5 million in each of the LHTF program’s prior application rounds which took place in 2020 and 2021. Staff seeks Council authorization to apply for a 2022 LHTF award for an additional $5 million. LHTF funding would be used to produce affordable housing, in accordance with the City’s Housing Trust Fund Guidelines and Plan, as well as the LHTF program’s guidelines. 2 of 3
Discussion
On April 5, 2022, HCD again issued a Notice of Funding Availability (NOFA) for the LHTF program. The LHTF NOFA makes available approximately $57 million in matching grants to local housing trust funds, such as Santa Monica’s. The timeframe for submitting 2022 applications is between April 26 and May 25, 2022. With Council authorization (Attachment A), staff would apply. If the City is successful, funds would be used to supplement existing amounts in the City’s Housing Trust Fund to finance future affordable housing developments. All funds would be used in accordance with the City’s Housing Trust Fund Plan and Housing Trust Fund Guidelines, as well as in accordance with the LHTF program guidelines.
Past Council Actions
Meeting Date Description
07/24/2018 (Attachment B) Housing Trust Fund Plan
07/25/2017 (Attachment C) Housing Trust Fund Guidelines Financial Impacts and Budget Actions
The 2022 application for LHTF funding would allow the City to apply for, and if successful, to receive up to $5 million in State funding that would be used to supplement existing funding in the Housing Trust Fund to increase the supply of affordable housing in Santa Monica. If awarded, staff would return to Council for specific budget actions. The City will use funds that already exist in the Redevelopment Replacement Housing Trust Fund to meet any required match for an LHTF award.
Prepared By: Jim Kemper, Housing Program Manager
Approved Forwarded to Council
3 of 3
Attachments:
A. Attachment A- DRAFT 2022 LHTF Resolution
B. Housing Trust Fund Guidelines
C. Housing Trust Fund Plan