City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.D
1 of 3
To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department 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 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;
2. 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 2024 round of Local Housing Trust Fund Program Matching Grant Funding (Attachment A) for the Housing and Human Services Department; and
3. 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 three of the LHTF’s prior application rounds in 2020, 2021 and 2023. Staff seeks Council authorization to apply for a 2024 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 Housing Trust 2 of 3
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 July 9, 2024, HCD issued a Notice of Funding Availability (NOFA) for the LHTF program. The LHTF NOFA makes approximately $53 million available in matching grants to local housing trust funds. The timeframe for submitting 2024 applications is between August 20, 2024 and September 17, 2024. With City Council authorization (Attachment A), staff would apply for the maximum funding amount allowed under the LHTF NOFA. If 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
05/09/23 Adoption of a Resolution Authorizing Application for State 3 of 3
Grant Funds for the Local Housing Trust Fund Program
07/24/2018 (Attachment B) Housing Trust Fund Plan
07/25/2017 (Attachment C) Housing Trust Fund Guidelines Financial Impacts and Budget Actions
The 2024 application for LHTF funding would allow the City to apply for, and if successful, 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 City 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 2024 LHTF Resolution
B. Housing Trust Fund Plan
C. Housing Trust Fund Guidelines
D. Written Comments