City Council
Report
City Council Meeting: May 9, 2023
Agenda Item: 5.G
1 of 3
To: Mayor and City Council
From: Danielle Noble, Acting 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 $5,000,000 from the California State Department of Housing and Community Development for the 2023 round of Local Housing Trust Fund Program Matching Grant Funding (Attachment A).
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.
3. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
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 two of the LHTF program’s prior application rounds which took place in 2020 and 2021. Staff seeks Council authorization to apply for a 2023 LHTF award for an additional $5 million. The LHTF program requires the City to match LHTF awards on a dollar-for-dollar basis. Thus, a $5 million LHTF award would be matched with either City-owned land, available City 2 of 3
Housing Trust Funds, or a combination of both. The LHTF award and City match 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.
Discussion
On March 7, 2023, HCD again issued a Notice of Funding Availability (NOFA) for the LHTF program. The LHTF NOFA makes available approximately $53 million in matching grants to local housing trust funds, such as Santa Monica’s. The timeframe for submitting 2023 applications is between April 19 and May 17, 2023. With Council authorization (Attachment A), staff would apply. If the City is successful, funds would be used to finance future affordable housing developments. The City would fulfill the LHTF program requirement to match LHTF awards on a dollar-for-dollar basis by either contributing City-owned land, providing matching City Housing Trust Funds, or a combination of both, depending on the funding needs of future developments. All funds would be used in accordance with the City’s Housing Trust Fund Plan (Attachment B) and Housing Trust Fund Guidelines (Attachment C), as well as in accordance with the LHTF program guidelines.
Environmental Review
Authorization of the application for LHTF grant funding would have no possibility of significant effect on the environment, and therefore, is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. If awarded, the use of LHTF grant funding for future affordable housing developments would be subject to environmental review at the time they are proposed.
Past Council Actions
Meeting Date Description
07/24/2018 (Attachment B) Housing Trust Fund Plan
07/25/2017 (Attachment C) Housing Trust Fund Guidelines 3 of 3
Financial Impacts and Budget Actions
The 2023 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 LHTF program requires the City to match LHTF awards on a dollar-for-dollar basis. The City will meet the Matching Funds requirement of the LHTF Program by contributing either City-owned land with of a value of at least $5 million, by using $5 million in funds that already exist in the Redevelopment Replacement Housing Trust Fund, or a combination of land and Housing Trust Funds valued at $5 million.
Prepared By: Ayala Scott, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. Draft 2023 LHTF Resolution
B. Housing Trust Fund Guidelines
C. Housing Trust Fund Plan
D. ITEM.5.G.Written Comments