Agenda packet — Santa Monica City Council, February 25, 2025 (part 1 of 4)

City of Santa Monica
City Council Meeting
AGENDA

LANA NEGRETE
MAYOR

ELLIS RASKIN CAROLINE TOROSIS

COUNCILMEMBER MAYOR PRO TEM

DAN HALL BARRY SNELL

COUNCILMEMBER COUNCILMEMBER

JESSE ZWICK NATALYA ZERNITSKAYA

COUNCILMEMBER COUNCILMEMBER

ELAINE POLACHEK

INTERIM CITY MANAGER

DOUGLAS SLOAN

CITY ATTORNEY

NIKIMA NEWSOME

CITY CLERK

STANDARDS OF BEHAVIOR THAT PROMOTE CIVILITY AT ALL PUBLIC MEETINGS:
• Treat everyone courteously; • Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive
public process, and tools for forging sound decisions
• Hate has no place in Santa Monica. The City opposes
abusive or threatening hate speech, intolerance, or
dehumanization, and supports basic civil respect and
human decency.
• Listen to others respectfully;
• Exercise self-control;
• Give open-minded consideration
to all viewpoints;
• Focus on the issues and avoid
personalizing debate;
Regular meetings are broadcast live on CityTV cable channel 16 and on the internet at santamonica.gov. Cable television re-broadcasts air on Thursday and Saturday at 11:30 AM. The agenda will air on CityTV on Saturday and Sunday at 11:00 AM and 6:00 PM, and on Monday and Tuesday at 12:30 PM and 6:00 PM.

City of Santa Monica Generated: 2/25/2025 1:21 PM Page 2

RULES OF ORDER FOR THE CONDUCT OF CITY COUNCIL MEETINGS (Resolution No.11642(CCS))

WAYS TO PROVIDE PUBLIC COMMENT
If you are interested in providing public comment at a City Council meeting, there are several ways to participate:
(1) Written public comment. In lieu of oral public comment, the public is strongly encouraged to submit written public comment on agenda items via email to [email protected]. For written public comment submitted by 12:00 pm on the day of the meeting, best efforts shall be made to have them available online for viewing. Please note the agenda item number in the subject line of your written comments.
(2) Oral public comment. Persons wishing to address the City Council regarding items on the agenda must be present and submit their name and address (optional) to the City Clerk before the public comment section is opened for that item or before the public hearing is opened where one is required by law. Register to speak at the Speaker Kiosk prior to the meeting. Remarks from the public are limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes and a minimum of one minute per item. Except for the author of the request, public comment on 15-items are limited to 1 minute. Except on Public Input, speakers appearing at the meeting in person, may donate 2 minutes to another person present in-person at the meeting, who may speak for a total of 4 minutes on that item.

Both the donor of time and the designated speaker must register at the Speaker Kiosk in person together.

Oral public comment from any one individual is limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes per agenda item; under some circumstances, Council may change the maximum to 1 minute per agenda item.

Levine Act Disclosure. Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $500 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made. Information regarding the Levine Act can be found here or you can contact the FPPC.

ORDER OF BUSINESS (may not be changed except by majority vote of the City Council.)

1. General Public Input
(members of the public may address the City Council
only on items not on the agenda, but within the
subject matter jurisdiction of the City).

2. Public Comment for Special Agenda Items, Consent
Calendar and Closed Sessions Only.

3. Special Agenda Items (Commendations and
Proclamations presented).

4. Consent Calendar (All items considered in one
motion unless removed by a City Councilmember for
discussion. Public comment shall be heard prior
to City Council discussion).

5. Closed Sessions.

6. Public Comment on remaining Agenda Items

7. Study Session.

8. Continued Items.

9. Administrative Proceedings.

10. Ordinances:
• 1
st Reading
• 2
nd Reading

11. Staff Administrative Item.

12. Public Hearings.

13. Reports of Boards and Commissions.

14. Resolutions.

15. Written Communications (other than
Reports of Commission and Officers).

16. Councilmember Discussion Items.

Agendas and reports are accessible on the City's webpage at smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

City of Santa Monica Generated: 2/25/2025 1:21 PM Page 3

AGENDAS

CITY OF SANTA MONICA

REGULAR MEETING

CITY HALL COUNCIL CHAMBERS
1685 MAIN STREET, ROOM 250,
TUESDAY, FEBRUARY 25, 2025
MEETING BEGINS AT 5:30 PM
HOW TO PROVIDE WRITTEN PUBLIC COMMENT:

Written public comment can be submitted via email to [email protected].

Written comments received prior to 12:00 pm on the day of the meeting will be available online. Please note the agenda item number in the subject line of your written comments.

CALL TO ORDER

PLEDGE OF ALLEGIANCE / LAND ACKNOWLEDGEMENT

ROLL CALL
City of Santa Monica Statement of Accountability (Land Acknowledgement) The City of Santa Monica is located on the land of Tovangaar. With great respect, the City acknowledges the Gabrieleño/Tongva as the First People of this ancestral and unceded territory of Kuruvungna, a village that we know as Santa Monica. We honor their elders, past and present, and the Gabrieleño descendants who are part of the Gabrieleño /Tongva tribes.

We recognize that these peoples are still here, and as settlers and kuyam (guests), we recognize our responsibility and obligation to care for their land in partnership with them.

The City of Santa Monica commits to work in partnership with the Gabrieleño/Tongva people to uplift their voices and visibility on their ancestral land.

LEVINE ACT DISCLOSURES AND ANNOUNCEMENTS / PROCEDURAL

MOTIONS

1. PUBLIC INPUT
(Public comment is permitted only on items not on the agenda that are within the subject matter jurisdiction of the City. State law prohibits the City Council from taking any action on items not listed on the agenda, including issues raised under this agenda item.)

1.A. Written Comments
City of Santa Monica Generated: 2/25/2025 1:21 PM Page 4

2. PUBLIC INPUT (ITEMS UNDER SPECIAL AGENDA ITEMS, CONSENT

CALENDAR, CLOSED SESSION ONLY)

3. SPECIAL AGENDA ITEMS

3.A. Proclamation: Women's History Month

3.B. Proclamation: Kidney Disease Awareness Month

4. CONSENT CALENDAR
(All items will be considered and approved in one motion unless removed by a Councilmember for discussion. In accordance with Charter section 615, the adoption of all ordinances and resolutions shall be by reading of title only unless a Councilmember present dissents. No public discussion is permitted on ordinances for second reading and adoption.)

4.A. Receive and File Emergency Procurement and Approval Agreement with Los Angeles County Sanitation Districts for Emergency Solid Waste Disposal Services
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 and 15308 of the California Environmental Quality Act (CEQA) Guidelines;

2. Receive and file emergency procurement report on emergency procurement with Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility for emergency landfill disposal services for the Public Works Department. The emergency procurement was made as an exception to the competitive bidding process pursuant to Section 2.24.250 (g) and is for a total amount not to exceed $1,800,000 (including a 20% contingency) through March 31, 2025; and

3. Authorize the City Manager to negotiate and execute an agreement with Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility for landfill disposal services for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (g) and is for a total amount not to exceed $38,022,585 (including a 20% contingency) for 5 years, with future year funding contingent on Council budget approval.

4.B. Approve Acceptance of Environmental Protection Agency Grant and Purchase of Street Sweepers for the Resource Recovery and Recycling Division Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) guidelines;

2. Authorize the City Manager to accept a grant awarded in the amount of City of Santa Monica Generated: 2/25/2025 1:21 PM Page 5 $945,000 from the United States Environmental Protection Agency for the Clean Heavy-Duty Vehicles Grant Program for the City of Santa Monica Street Sweeper Replacement Project in the Public Works Department, and to accept all grant renewals;

3. Authorize the City Manager to execute all necessary documents to accept the grant, all grant renewals, and modifications;

4. Authorize the Procurement Manager to issue a purchase order with Municipal Maintenance Equipment (“MME”), a California-based company, for the purchase of three Ravo Electric R5-eSeries sweepers for the Public Works Department, Resource Recovery and Recycling Division. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $2,428,833 including a 10% contingency;

2.24.250 (c) and is for a total amount not to exceed $185,987 including a 10% contingency with future year funding contingent on Council budget approval; and

6. Authorize budget amendment as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).

If the grant is not received, pending the outcome of the Presidential Executive Order:

2.24.250 (c) and is for a total amount not to exceed $996,976 including a 10% contingency with future year funding contingent on Council budget approval.

4.C. Second Reading and Adoption of an Ordinance Amending the Text of Section

9.31.195 of the Zoning Ordinance for Consistency with the Amended Safety Element
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

4.D. Second Reading and Adoption of an Ordinance Amending the Text of Section

8.12.040 of the Building Code for Consistency with the Amended Safety Element
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.

4.E. Adoption of Resolution Ratifying Regional Fires Emergency Proclamation and Supplements
City of Santa Monica Generated: 2/25/2025 1:21 PM Page 6 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; and

2. Adopt the proposed resolution ratifying the Executive Order issued by the Director of Emergency Services declaring the existence of a local emergency in the City of Santa Monica and the Supplements to that Order.

4.F. Introduction and First Reading of an Ordinance Amending Santa Monica Municipal Code Section 4.08.095, Prohibition Against Camping in Public Places
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; and

2. Introduce for First Reading an Ordinance to Amend Santa Monica Municipal Code Section 4.08.095, Prohibition Against Camping in Public Places, to omit from the definition of “camp facility” certain items.

5. CLOSED SESSIONS

5.A. Public Employee Appointment - Gov. Code § 54957(b): consider public employee appointment; title: City Manager/Interim City Manager; Gov. Code § 54957.6: conference with labor negotiator; City negotiator: Mayor/Personnel Director; unrepresented employee: City Manager/Interim City Manager

5.B. Conference with real estate negotiator - Gov. Code § 54956.8: properties: 2019 - 2219 5th Street; owner of record: Ocean Park Villas, L.P.; City negotiators:

Heather Averick, Director of Housing and Human Services, and Natalie Verlinich, Housing Manager; owner negotiators: Angel Herrera and Mark Wagner; under negotiation: price and terms of payment for sale or option

5.C. Conference with real estate negotiator - Gov. Code § 54956.8: properties: 2033- 2101 Virginia Avenue; owner of record: Community Corporation of Santa Monica; City negotiators: Heather Averick, Director of Housing and Human Services, and Natalie Verlinich, Housing Manager; owner negotiator: Tara Barauskas; under negotiation: price and terms of payment The following is the order of business for items to be heard no earlier than 7:00 p.m.

CITY MANAGER REPORT

TRAVEL ANNOUNCEMENT AND MAYOR'S HIGHLIGHT
City of Santa Monica Generated: 2/25/2025 1:21 PM Page 7

6. PUBLIC INPUT ON REMAINING AGENDA ITEMS

7. STUDY SESSION
No items

8. CONTINUED ITEMS
No items

9. ADMINISTRATIVE PROCEEDINGS
No items

10. ORDINANCES
(Public comment is permitted on ordinances for introduction and first reading. No public discussion is permitted on ordinances for second reading and adoption. In accordance with Charter section 615, the adoption of all ordinances and resolutions shall be by reading of title only unless a Councilmember present dissents.)
No items

11. STAFF ADMINISTRATIVE ITEMS

11.A. Adoption of Resolution and Approval of Release of Request for Proposals for City-Owned Sites Designated for Affordable Housing Development in the City's 6th Cycle Housing Element and Declaration of Sites as "Exempt Surplus Land" in Accordance with the Surplus Land Act
Recommended Action
Staff recommends that the City Council:

1. Declare City-owned properties located at Bergamot Station Arts Center located at 2500 Olympic (APNs 4268-013-919 and 4268-014-900) as “surplus land” within the meaning of the Surplus Land Act (Government Code sections 54220 et. seq.)(“SLA”), adopt a resolution declaring the Bergamot Station Arts Center as surplus land, authorize the City Manager or his or her designee to advance the Notice/Request for Proposal (RFP) by June 30, 2025 and take implementing actions necessary to comply with the SLA and the City’s Housing Element.

2. Declare two City-owned properties located at 1333 4th Street (APNs 4291-011- 909 and 4291-011-910) and 1324 5
th Street (APNs 4291-011-
900, 4291-011-901, 4291-011-902, 4291-011-903, 4291-011-904, 4291- 011-905 and 4291-011-908) as “surplus land” within the meaning of the SLA, adopt a resolution declaring the 4
th/5th and Arizona as surplus land,
authorize the City Manager or his or her designee to advance the Notice/Request for Proposal (RFP) by June 30, 2027 and take implementing actions necessary to comply with the SLA and the City’s Housing Element.

City of Santa Monica Generated: 2/25/2025 1:21 PM Page 8

3. Declare City-owned property at 1234 4th Street (currently operated as a public parking structure, Parking Structure 1,(PS1) as “exempt surplus land” within the meaning of the SLA; authorize staff to begin the process of obtaining necessary permits, including a Coastal Development Permit, for demolition of PS1 if demolition is approved by the California Coastal Commission, authorize staff to proceed with developing bidding documents for the demolition to prepare the site for a future 100% affordable housing development.

4. Adopt the findings stated in the Environmental Review section of this staff report, including, without limitation, a finding of categorical exemption pursuant to Section 15312 of the California Environmental Quality Act (CEQA) Guidelines, a finding of no possibility of significant effect on the environment pursuant to Section 15061(b)(3) (Common Sense Exemption), and a finding that the development of affordable housing on City-owned property was previously analyzed in the 6th Cycle Housing Element Environmental Impact Report.

11.B. Approval of First Modification to Contracts with Social Emotional Wellness Initiative, St. Joseph Center and Family Service of Santa Monica for Behavioral Health Strategy – Adult Crisis and Step-Down Services and Youth Behavioral Health Programming Recommendations
Recommended Action
Staff recommends that the City Council:

1. Receive reports: Adult Crisis & Children and Youth Behavioral Health Care Study and the Strengthening the System of Intensive Behavioral Healthcare Services for Adults in Santa Monica and Service Planning Area 5.

2. Adopt and approve Transitional Approach 3 – Decentralized Expansion from the Strengthening the System of Intensive Behavioral Healthcare Services for Adults in Santa Monica and Service Planning Area 5 report to build out behavioral health services locally.

3. Authorize the City Manager to negotiate and execute a first modification to agreement #11439 in the amount of $400,000 with Social Emotional Wellness Initiative to provide behavioral health support for children and youth in the City’s after school programs (Police Activities League (PAL), CREST, and Virginia Avenue Park (VAP)).This will result in a four-year amended agreement with a new total amount not to exceed $995,194, with future funding contingent upon Council budget approval.

4. Authorize the City Manager to negotiate and execute a first modification to agreement #11440 in the amount of $388,254 with St. Joseph Center to expand the capacity of behavioral health services for youth ages 10-24 enrolled in the Youth Resource Team (YRT) program. This will result in a four-year amended agreement with a new total amount not to exceed $6,907,777, with future funding contingent upon Council budget approval.

5. Authorize the City Manager to negotiate and execute a first modification to agreement #11431 in the amount of $900,000 with Family Service of Santa Monica to increase the capacity of behavioral health services available to children birth – 5
th grade and to expand substance use treatment services for middle and high school-aged youth. This will result in a four-year amended City of Santa Monica Generated: 2/25/2025 1:21 PM Page 9 agreement with a new total amount not to exceed $3,617,970, with future funding contingent upon Council budget approval.

6. 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.

12. PUBLIC HEARINGS
No items

13. REPORTS OF BOARDS AND COMMISSIONS
No items

14. RESOLUTIONS
No items

15. WRITTEN COMMUNICATIONS OTHER THAN REPORTS OF COMMISSION AND

OFFICERS
No items

16. COUNCILMEMBER DISCUSSION ITEMS

16.A. Recommendation to accept James Kennedy's resignation from the Clean Beaches & Ocean Parcel Tax Citizens Oversight Committee and authorize the City Clerk to publish the vacancy.

16.B. Recommendation to rescind the January 28, 2025, appointment of Dennis Puri to the Transient Occupancy Tax Advisory Committee; and, continue the appointment to a future meeting.

16.C. Request of Councilmembers Hall and Zernitskaya that in order to reaffirm our commitment to the protection of Transgender, Gender Diverse, and Intersex persons, the Council direct the City Attorney to draft a resolution banning the use of City resources and personnel to aid the federal government or other states in blocking gender-affirming healthcare.

16.D. Request of Councilmembers Hall, Raskin, and Zernitskaya that in order to promote free and fair elections, the Council direct Staff to return with options to raise the individual contribution limit during political campaigns.

City of Santa Monica Generated: 2/25/2025 1:21 PM Page 10

16.E. Request of Councilmember Zwick, Hall, and Zernitskaya that, to align with the Westside Cities Council of Governments (WSCCOG) initiative to evaluate and design bus rapid transit (BRT) and related bus infrastructure on priority corridors in the subregion including Santa Monica Boulevard west of Beverly Hills and Caltrans’ efforts to implement bus lanes on Santa Monica Boulevard between Centinela Avenue and the 405, the City Council direct the City Manager to present transit priority measures and tradeoffs, including bus lanes, as part of the planned study session about the Santa Monica Boulevard Safety Study in summer 2025.

16.F. Request of Mayor Negrete and Councilmember Snell that the City Manager and City Attorney survey other cities and bring amendments to the Gift Resolution and Gratuity Ordinance to create exceptions for attending City of Santa Monica economic development and cultural events in which Councilmembers are expected to attend to represent the City.

ADJOURNMENT
Agendas and reports are accessible on the City's webpage at www.smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Members of the public unable to attend a meeting but wishing to comment on an item(s) listed on the agenda may submit written comments prior to the meeting by meeting by mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA 90401 or to [email protected]. Written comments received from the public by 12 PM on the day of the City Council meeting will be distributed to the City Council prior to the meeting and posted online. Members of the public who submit written public comment on an agenda item may be subject to the Levine Act which requires disclosure of campaign contributions of more than $500 to an officer of the City within the preceding 12 months.

City Hall and the Council Chambers are wheelchair accessible. If you require any special disability related accommodations to either attend or provide public testimony at a Council meeting (i.e. sign language interpreting, access to an amplified sound system, remote option, etc.), please contact the City Clerk’s Office at (310) 458-8211 or TDD: (310) 917- 6626 or via email at [email protected] at least 72 hours prior to the scheduled meeting. Best efforts shall be made to accommodate requests received after the 72-hour deadline. In the case of special meetings, requests should be submitted as early as possible, but no later than noon the day of the special Council meeting.

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

Santa Monica Blue Bus Lines #1, #2, #3, #5, #9 and the EXPO Line serve City Hall.

Parking is available on Main Street, on Olympic Drive, and in the Civic Center Parking Structure (validation free).

City Council
Report
City Council Meeting: February 25, 2025
Agenda Item: 1.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, City Clerk, Records and Election Services Department Subject: Written Comments
Prepared By: David Yakobson, Staff Assistant III
Approved Forwarded to Council
Attachments:

A. Written Comments

1.A
Packet Pg. 11
1 David Yakobson
From: Ryan McDaniel <[email protected]>
Sent: Tuesday, February 25, 2025 9:38 AM
To: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; councilmtgitems
Subject: Citizen Input

EXTERNAL
Good Morning,
I am unable to attend the City Council meeting this evening, but heard a concerning shift in focus and wanted to voice my opinion as someone who has lived in Santa Monica since 2008.

I love Santa Monica and don't want to live anywhere else, but it has changed in so many negative ways since I have been here. Homelessness is my number one concern.

Having been chased down 4th street in broad daylight by a homeless man tweaking out to the point pepper spray would have probably not even phased him, I lost my patience. I wake up to human feces in my parking area on a weekly basis. This is beyond unacceptable.

There is no scenario in which you should be making it easier to be homeless in Santa Monica.

You either accept the services to get off the street that have been offered, you go to jail, or get out of Santa Monica. I don't care if people don't want to sleep somewhere because you can't use drugs – then put them in a rehab facility. Either way, it is not okay to just decide not to participate in society and allow them to do whatever they want because we feel bad.

Provide the options and if they decline, they don't get to make everyone else's life a living hell. You focusing on making things easier for them to live on the street is NOT the direction things should be going. If you don't think the options are good enough for them, make them better.

Humanity is offering those options to create substantial and significant change. Not letting addicts be more comfortable while terrorizing the streets. Those that fell on hard times and not addicts should embrace the services offered, and if there is a safety reason why they wouldn't, it's on you to do better with all the money we have voted to spend on this issue.

Thank you,
Ryan McDaniel
Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 12
Attachment: Written Comments (6933 : Written Comments)
1 David Yakobson
From: John Cyrus Smith <[email protected]>
Sent: Tuesday, February 25, 2025 11:54 AM
To: councilmtgitems; Lana Negrete; Caroline Torosis; Ellis Raskin; Barry Snell; Natalya Zernitskaya; Dan Hall; Jesse Zwick; Elaine Polachek; [email protected] Subject: Council Meeting Item 1 Public Comment (Civic Auditorium) Attachments: 2 STC ULI CULTURAL HEART QUOTE.PNG; 3 CIVIC PIC SPRING 2013.JPG; 1 SAVE THE CIVIC LOGO.jpg

EXTERNAL
Dear Council,
Do not give up so quickly on the Civic Auditorium. Give RPG the time it deserves to save and create a second future for this landmarked gem of Santa Monica. Extend your request if needed to secure an ENA.

And by no means should you ever sell the Civic property to the school district. To do so would simply force residents to pay for the public land TWICE.

I've asked the City Clerk to have the three attached items ready when I speak on Item 1.

Thank you,
John Cyrus Smith
[email protected]

Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 13
Attachment: Written Comments (6933 : Written Comments)
1 David Yakobson
From: John Alle <[email protected]>
Sent: Monday, February 24, 2025 7:48 PM
To: The Santa Monica Coalition Organizer
Cc: John Alle
Subject: Santa Monica City Council, Barbara Ferrer and Venice Family Clinic CE0 Mitesh Popat

EXTERNAL
We have Santa Monica Mayor Lana Negrete and LA Mayor Karen Bass who each say their "city is safe" and ready to play host to business, sporting events and tourism. Nothing could be further from the truth, and each refuses to acknowledge the problems and offer solutions.. Worse, each is in need of Federal funds and ignores Executive Orders and U.S. Supreme Court decisions. Constituents are not told what all this costs and foot the bill.. Funds are diverted from Police and Fire.. Here you have an illegal immigrant who crosses the southern border on a regular basis freely taking advantage of services and free needles, Barbara Ferrer, at Taxpayers' expense, contracting with Venice Family Clinic CEO Mitesh Popat to distribute needles and glass meth pipes in our parks and on the privatelyowned 7-Eleven (without the property or business owners' permission), and Police Chiefs from both cities publicly pleading, "End the program NOW." Is this rational?
Insta
https://www.instagram.com/reel/DGeZy61CdPA/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA== YouTube
https://youtu.be/pvLdEn4qBvw
Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 14
Attachment: Written Comments (6933 : Written Comments)
Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 15
Attachment: Written Comments (6933 : Written Comments)
1 David Yakobson
From: Zoe <[email protected]>
Sent: Friday, February 21, 2025 11:28 AM
To: Brandon Avila
Cc: councilmtgitems; Lana Negrete; Douglas Sloan; Josh Kurpies; [email protected]; Ramon Batista; David Gardinier; Clerk Mailbox Subject: OPA Police report presentation/Missing Police Reports

EXTERNAL
Hi Officer Avila,
Two days ago, Officer Chabot and Officer Navarro told me to contact you regarding the missing reports from the presentation to the Ocean Park Association last meeting. Sean Besser is the Landlord of my Unit at 643 Pacific Street. He has been harassing me since October when I found multiple violations to the Santa Monica Rent Control Ordinance of Short Term Rental, Building Code Enforcement and Violations to the Tenant Harassment Ordinance from the City Attorney's office. I reported it to the three separate agencies and he is supposed to be under investigation.

Three different City agencies are involved investigating Besser and his partner Maureen Morris, owners of Santa Monica beach CoLiving. Besser's wife trespassed the unit and refused to identify herself, she entered unit #3 without giving notice, refused to answer who she was and how she accessed the unit and when followed to her vehicle with complete knowledge I was recording her on my phone she called me: trash. This is recorded, this is trespassing and the police had not taken a report or investigated this incident. Sean Besser also entered the unit without previous notice, came to my bedroom and began to take pictures of me in my pajamas. This incident has not been investigated.

It has come to my attention that Sean Besser's ties with the political establishment of Santa Monica for Renters Rights and particularly his ties and friendship with recently elected Councilmember Ellis Raskin and his wife Rent Control Board Commissioner Kay Ambriz. that is the insurance that give them free reign to break the law without facing consequences. That behavior is a pattern that exposes the City of Santa Monica to scandal and litigation. Last night at the 2025 Homeless Count at St.

Monica Catholic Community I recorded the interactions of Sean Besser and his wife Robyn Haas Besser with Ellis Raskin and his wife Kay Ambriz. Robyn Haas Besser with the entitlement of a privileged woman who has faced no consequences for breaking the law asked police officers to remove me from the event which I was covering as a citizen journalist. Ironically I am a member of the Church as well, which shows you how far an entitled white woman will go to use the privilege.

The biggest threat to democracy is corruption, this is also a classic example of white supremacy.

Kindly reply if you are serious in pursuing these incidents. In the midst of study sessions on reparations and a Citywide Equity plan, this is not a good look.

Thank you. Have a blessed weekend. I would like this email to be included in the record for next Tuesday's City Council Meeting.

Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 16
Attachment: Written Comments (6933 : Written Comments)
2 Zoё Muntaner
“Do you have the patience to wait till your mud settles and the water is clear?"- Tao Te Ching IMPORTANT WARNING: This email (and any attachments) is only intended for the use of the person or entity to which it is addressed to and may contain privileged and confidential information. You, the recipient, are obligated to maintain it safely, securely, and confidentially.

Unauthorized re-disclosure or failure to maintain confidentiality may subject you to federal and state penalties. If you are not the intended recipient, please immediately notify me by return email and delete this message from your computer.

Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 17
Attachment: Written Comments (6933 : Written Comments)
1 David Yakobson
From: Hunter Hall <[email protected]>
Sent: Friday, February 14, 2025 9:07 AM
To: [email protected]; Council Mailbox; councilmtgitems; Lana Negrete; Caroline Torosis; Jesse Zwick; Ellis Raskin; Dan Hall; Barry Snell; Natalya Zernitskaya Cc: Jenny Rice; Albin Gielicz; Kara Taub
Subject: 🥰 Budget Request-Events on Main & Montana 😍
Follow Up Flag: Follow up
Flag Status: Flagged

EXTERNAL
Happy Valentine’s Day Councilmembers!
We love you, and we know you love us, so today we are writing to request a line item inclusion into the City’s budget that allocates/provides for an amount roughly equal to half the cost of mandated fees associated with our beloved community events on Main Street and Montana Ave.

As you can see from the costs outlined on the next page, just the required fees are over $25K for each event, so we’d like to respectfully request $12K per event as a way to offset the cost. This money goes straight back to city departments!
Every year, we host thousands of residents and regional guests at our events, which keep Santa Monica on the map and top of mind for Southern California visitors, which is critical now more than ever. Having this in the budget would give us the confidence needed to plan ahead instead of pestering you throughout the year with 16 items.

Please help us ensure these events can continue to happen! Have a great weekend, and let us know if you have any questions.

Sincerely,
Hunter G. Hall
Executive Director
Main Street Business Improvement District
Jenny Rice
Event Producer
Main Street & Montana Ave.

Santa Monica, CA
Kara Taub
Board Chair - Montana Avenue Merchant Association
Albin Gielicz
Board Member - Montana Avenue Merchant Association
P.S. - If you’re feeling extra generous, you can certainly give us more! We will rename all the side streets in your honor!
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2 To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.

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From: John Alle <[email protected]>
Sent: Saturday, February 15, 2025 11:09 AM
To: The Santa Monica Coalition Organizer
Cc: John Alle
Subject: Santa Monica's Main City Post Office at 1653 7th Street

EXTERNAL
Santa Monica is NOT "safe and open for business." Essential businesses shut and lock their doors early before dusk to avoid risk of harm. Assaults and overdoses occur frequently in front of Santa Monica's Main Post Office. Selfservice kiosks are supposed to be accessible 24/7, allowing residents and businesses to buy postage and mail packages. They're not. Who's best protected by SaMo's Mayor, City Council and City Manager (who's fleeing town), transients with dirty used needles or taxpayers?
Insta
https://www.instagram.com/reel/DGGoDpni4Vo/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA== YouTube
https://youtu.be/p_wPjtV1KvU
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From: Bryan Fogle <[email protected]>
Sent: Saturday, February 15, 2025 6:34 PM
To: councilmtgitems
Subject: Santa Monica Airport

EXTERNAL
Council,
I’m writing to express my support for keeping the Santa Monica Airport open forever. This airport was used extensively for The Palisade firefighting effort, and it will undoubtedly be necessary to support future disasters. You will be negligent in your duties if you decide to close this valuable disaster relief asset.

Respectfully,
Bryan
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5 David Yakobson
From: John Alle <[email protected]>
Sent: Monday, February 17, 2025 8:12 AM
To: The Santa Monica Coalition Organizer
Cc: John Alle
Subject: Where is SaMo's City Council? Where Are the Labor Unions? Where is LA County Supervisor Horvath? Where is LA County Sheriff Robert Luna?

EXTERNAL
Santa Monica has had successive mayors and city councils that have not represented the wishes and desires of its citizens. Poll after poll show workers and residents want a larger police presence to prevent crime before it occurs.

Just 8 square miles in size, Santa Monica is in the list of the top 4% of most dangerous cities in the state.

Insta
https://www.instagram.com/reel/DGJrhOuign6/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA== YouTube
https://youtu.be/6xCrQzDQHSI
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From: Andy K. Liberman <[email protected]>
Sent: Tuesday, February 18, 2025 4:54 PM
To: councilmtgitems
Subject: Sanctuary

EXTERNAL
To the Santa Monica City Council:

The City of Santa Monica should pass a sanctuary ordinance protecting the most vulnerable members of our community from deportation during the current administration's pledge to massively increase deportations with no due process safeguards and protections.

The City of LA unaminously passed a sanctuary ordinance in December 3, 2024.

Similarly, Santa Monica has also some informal protections and policies but these should be codified into an ordinance so they are binding.

Immigrant communities that contribute to the vitality of our community in Santa Monica should feel protected and secure when coming to work or living in Santa Monica. There is tremendous fear and uncertainty about ICE raids and enforcement practices. Passage of an ordinance by the City of Santa Monica would help allay some of those fears and also help inform and guide people in Santa Monica who may wish to help safeguard the rights of immigrants and refugees impacted by the current Administration's draconian policies.

Sincerely,
Andrew Liberman
Santa Monica Resident
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7 David Yakobson
From: John Alle <[email protected]>
Sent: Wednesday, February 19, 2025 8:08 AM
To: The Santa Monica Coalition Organizer
Cc: John Alle
Subject: "Bureaucratic" or Human Caused Disaster?

EXTERNAL
From the curb at Gelson's Market in Santa Monica to the junction of Palisades Park and the Santa Monica Pier, used needles and dirty meth pipes are found flowing into our beaches and ocean. Directed by LA County Department of Public Health Director Barbara Ferrer and Venice Family Clinic CEO Mitesh Popat, the free needle and meth pipe handouts in our parks are allowed and approved by the Santa Monica City Council and County Supervisor Lindsey Horvath. So read what Sup. Lindsey Horvath says about the ash and toxic materials from the recent fires that pose a danger to our environment, and substitute out the word "fire". "This is a bureaucratic disaster. It is unacceptable and it must end. Every level of government has failed to provide the basic information our communities deserve on the plan for (fire) debris disposal." And Horvath is again grabbing the mic tonight to hold a Town Hall Zoom Meeting to discuss our environmental health....

Insta
https://www.instagram.com/reel/DGQkU5hC-5G/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA== YouTube
https://youtu.be/7VZISvZsOaQ
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8 David Yakobson
From: Zoe <[email protected]>
Sent: Thursday, February 20, 2025 7:27 PM
To: Lana Negrete
Cc: councilmtgitems; Josh Kurpies; [email protected]; David Gardinier; Edgar Sernas; Caroline Torosis; Jesse Zwick; Ellis Raskin; Natalya Zernitskaya; Barry Snell; Dan Hall; Clerk Mailbox
Subject: 12 ITEM FORM DOG INSURANCE POLICY
Attachments: 12 Item Form Dog Insurance.pdf

EXTERNAL
Mayor Negrete,
Today I came to City Hall to serve a Subpoena, pick up the headphones I left behind and file a 12 ITEM Form to request to place an item on the City Council Agenda. Mr. Serna received the subpoena, when he returned to provide me with a stamped copy, I asked him for a 12 ITEM Form to file today as well since City Hall is not open tomorrow and there is a City Council Meeting on February 25, 2025.

Attached is the 12 ITEM form that was not received and stamped by the Santa Monica City Clerk as I was left waiting in the Hall after being told he was coming back to receive it.

Note that this would have been completely unnecessary if Mr. Serna provided the form in a timely fashion. Instead he told me to go upstairs to The City Manager's Office and talk with them. In the past I have filed the 12 Item Form with the City Clerk and they submit it to the City Manager's Office, that is how I placed the Charter for Compassion in the agenda back in September of 2013. After returning from the second floor after no one answered the door at the City Manager's office I spoke to the 311 staff on reception and finally the 12-ITEM form was produced for me to fill out and file for the next City Council Meeting. Is not a good look for staff to leave by the back door to avoid receiving a form after he explicitly said in front of other staff that he would be back to get the form filed today.

See attachment.

Zoё Muntaner
“Do you have the patience to wait till your mud settles and the water is clear?"- Tao Te Ching IMPORTANT WARNING: This email (and any attachments) is only intended for the use of the person or entity to which it is addressed to and may contain privileged and confidential information. You, the recipient, are obligated to maintain it safely, securely, and confidentially.

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9 David Yakobson
From: Zoe <[email protected]>
Sent: Friday, February 21, 2025 11:28 AM
To: Brandon Avila
Cc: councilmtgitems; Lana Negrete; Douglas Sloan; Josh Kurpies; [email protected]; Ramon Batista; David Gardinier; Clerk Mailbox Subject: OPA Police report presentation/Missing Police Reports

The biggest threat to democracy is corruption, this is also a classic example of white supremacy.

Kindly reply if you are serious in pursuing these incidents. In the midst of study sessions on reparations and a Citywide Equity plan, this is not a good look.

Thank you. Have a blessed weekend. I would like this email to be included in the record for next Tuesday's City Council Meeting.

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10 Zoё Muntaner
“Do you have the patience to wait till your mud settles and the water is clear?"- Tao Te Ching IMPORTANT WARNING: This email (and any attachments) is only intended for the use of the person or entity to which it is addressed to and may contain privileged and confidential information. You, the recipient, are obligated to maintain it safely, securely, and confidentially.

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From: Corin L. Kahn <[email protected]>
Sent: Sunday, February 23, 2025 12:23 PM
To: Nikima Newsome; Clerk Mailbox
Cc: Lana Negrete; Caroline Torosis; Jesse Zwick; Dan Hall; Ellis Raskin; Barry Snell; Natalya Zernitskaya; [email protected]; Susan Cola; Michelle M. Hugard Subject: REQUEST FOR COUNCIL RECONSIDERATION OF PARKING PROPOSAL AT 1217 EUCLID

STREET SITE PRIOR TO COMPLETING DDA
Attachments: broken promise regaring less parking 022325.pdf

EXTERNAL
Dear all: please find a short and simple illustration of the error the Council made in approving 40 residential parking spaces at 1217 Euclid Street to support this request for reconsideration of that element of the project. --
Corin L. Kahn, Esq.
401 Wilshire Blvd
12th Floor
Santa Monica, CA | 90401
Office: 424-252-4714
Email: [email protected]
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CORIN L. KAHN
February 23, 2025
VIA EMAIL ONLY [email protected];
[email protected]
Mayor and the Members of the City Council of the City of Santa Monica Office of the City Clerk
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
Re: The Relationship Between City’s Sustainability Policies and its Desire to Develop Affordable Housing on the City-Owned Parking Lot at 1217 Euclid Street Dear Honorable Mayor and Honorable Members of the City Council:

The City missed an opportunity to meet its commitment to reduce greenhouse gas emissions when City approved 40 parking spaces for residents and staff at 1217 Euclid Street site. The following demonstrates the error of adopting this old, tired and wasteful model of development:
 Both City’s municipal code and State law allow a residential project with no residential parking at that location;
 The extreme proximity (approximately 150-feet) to two superior transit systems, one funded by the City, and another, a regional transit system, funded by among others the City’s taxpayers, creates easy and affordable commuting opportunities;  Many City-residents who wish to live in City’s affordable housing, have designed their lives around alternative forms of mobility (walking, biking, transit, and personal mobility devices) allowing a self-selection of applicants choosing this unique housing opportunity;
 Commuters have regular (both scheduled and origin-destination) travel demands; and
 Many nearby commercial uses provide easy access to life’s necessities.

Given all of these undisputable facts unique to this site, why did City approve a development that provides 40 parking spaces for residents, thereby wasting the combination of these

ATTORNEY AT LAW
401 WIL SH I RE B OULEVARD, 12 t h Fl oor
SANT A MONI CA, CAL IFO RNIA, 90 401
TELEPH ON E: ( 424) 252-4714
WRITER’S E-MAIL:

[email protected]

O U R F I L E N U M B E R:

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Mayor and the
Members of the City Council of the City of Santa Monica

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2 circumstances available to advance the goal of reduction of greenhouse gas emissions? This concept has been demonstrated in approvals by this and prior City Councils.

The undersigned respectfully suggests the Council reconsider the parking issues related to the Euclid Street site prior to the completion of the Development and Disposition Agreement. The citizens were promised “. . . realizing a less automobile-oriented and parking-intensive City.” That promise was broken by the form of the proposal for 1217 Euclid Street site approved on December 17, 2024.

Respectfully submitted,
( SIGNED)
Corin L. Kahn
CC: client
All each councilmember (without attachments, which will be sent under separate cover) [email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Douglas T. Sloan, Esq.

Office of the City Attorney [email protected] (without attachments, which will be sent under separate cover)
Nikima Newsome, City Clerk [email protected]; [email protected] (without attachments, which will be sent under separate cover) Item 1
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Mayor and the
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3 Attachments
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1 David Yakobson
From: Adelaide Kahn-Fowler <[email protected]>
Sent: Saturday, February 22, 2025 11:37 AM
To: Nikima Newsome; Clerk Mailbox; [email protected]; Susan Cola; Michelle M. Hugard
Cc: Corin L. Kahn
Subject: Companion Documents PART IV to "On-Going City Business: Non-Agendized Item" RE Corin L. Kahn
Attachments: ATTACHMENT PART IV of V.pdf

EXTERNAL
Hello,
Please see companions attachments, Part IV of V, to a letter sent by Corin L. Kahn on February 20, 2025 pertaining to "On-Going City Business: Non-Agendized Item for Council Meeting Tuesday, February 25, 2025."
Best,
Adelaide
–
A
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December 17, 2024 Santa Monica City Council Meeting Summary - Staff Administrative Item 11.A
Prepared by Adelaide Fowler
On December 17, 2024, Santa Monica City Council convened for both a “Regular and Special Meeting.” Under discussion (among other items) was Staff Administration Item 11.A:
“Approve Deal Terms and Authorize Development and Disposition Agreements (DDAs) and Ground Leases for 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1402 Wilshire Boulevard.” The City staff presented their analysis of the proposed projects, notably recommending against most of their proposed public parking replacement options, including adding additional parking to the proposed sites and creating perpendicular parking along Wilshire Blvd. Nevertheless, City staff asked the City Council for direction “regarding public replacement parking, including any City investment from the Housing Trust Fund.”1 Additionally, City staff claimed that they conducted outreach to 31 businesses along the Wilshire retail coordinator, receiving feedback that many were concerned about the loss of accessible parking and the resulting impacts to both staff and patrons. The City Council then asked questions of the City staff, highlighted below:
● Mayor Lana Negrete challenged the City staff’s comparative description of the “thriving” retail corridors along Ocean Park Blvd and Montana Avenue in spite of not having access to City-owned public parking, as a justification for the loss of the City-owned public parking lots located at 1217 Euclid Street and 1211-1217 Fourteenth Street. City staff confirmed that they had not conducted a comparative study of the three commercial corridors, but rather utilized “feedback” from both Ocean Park Blvd and Montana Avenue. Mayor Negrete noted that the zoning around all three retail corridors were different, potentially impacting the availability of public parking alternatives. Additionally, City staff claimed that “there have been some discussions with [the Wilshire Theater],” and noted that City staff had identified caged off parking underneath the Wilshire Theater.
● Councilmember Jesse Zwick did not seem to accept that the City staff had exhausted all possible alternative parking options, including the possibility of the public being able to utilize the development’s parking lot during the day to patronize local businesses, and residents utilizing the parking lot during the night; as well as whether or not all considerations regarding perpendicular parking along Wilshire Blvd had been explored. ● Councilmember Natalya Zernitskaya shared Councilmember Zwick’s confusion regarding whether City staff had really done enough to explore alternative perpendicular parking solutions, suggesting that 45 degree angled parking might be a safer alternative to 90 degree perpendicular parking.
● Vice Mayor Caroline Torosis inquired whether the potential added cost of $6,340,316 that would be required to build a level of subterranean parking at the 1402 Wilshire Blvd/1211-1217 Fourteenth Street site to create public parking spaces was justifiable. 1 The full list of recommended actions by City staff to the Council regarding Staff Administrative Item 11.A can be found in Appendix A.

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● Both Mayor Negrete and Councilmember Zwick emphasized a desire to include a Good Neighbor Agreement in final project DDAs.
● The Council voted 6-0 in favor of moving forward Staff Administrative Item 11.A with the following conditions: 1) evaluate different parking options and designs, 2) carry out a review to determine necessity for continued on-site security personnel 9 months after the 1402 Wilshire/1211-1217 Fourteenth Street property becomes operational2, and 3) include a Good Neighbor Agreement in the DDAs going forward.

PART I: Presentation by City Staff on Staff Administrative Item 11.A – Presenters: Natalie Verlinich (Santa Monica City Staff), Sarah Letts (HCHC) Natalie Verlinich presented for the City staff, and Sarah Letts spoke on behalf of Hollywood Community Housing Corporation (HCHC). Sarah Letts described the proposed layouts and elements of each project to be developed at both 1217 Euclid Street (48 affordable housing apartments intended for family housing) and 1402 Wilshire Blvd and 1211-1217 Fourteenth Street (82 affordable housing intended for individuals 55 years and older, identified as “seniors”). She confirmed that the Euclid project would include 40 tenant subterranean parking spaces concentrated on one underground level, while the Wilshire/Fourteenth Street project would include 42 tenant ground level parking spaces. Additionally, 40 of the 82 apartments at the Wilshire/Fourteenth Street project would be dedicated to Permanent Supportive Housing (PSH).3 As 1402 Wilshire Blvd has to-date been a privately owned building intended for retail, Natalie Verlinich explained that HCHC would purchase the property and retain ownership until construction financing has been secured. HCHC would then transfer ownership to the City of Santa Monica, which would turn around and lease the combined 1402 Wilshire and 1211-1217 Fourteenth Street properties back to HCHC.

Natalie Verlinich discussed that the City had conducted outreach to 31 businesses along the Wilshire corridor, many of whom expressed concerns regarding access to parking for both staff and patrons. She noted that no additional/replacement parking is required by the City’s ordinances, though Department of Transportation (DOT) analysis reflected that the current Cityowned parking lots located at 1217 Euclid Street and 1211-1217 Fourteenth Street are utilized.

In order to try to mitigate the anticipated stress on existing parking resources with the removal of both the public parking lots located at 1217 Euclid Street and 1211-1217 Fourteenth Street, the City staff and HCHC have determined to preserve the existing public parking lot located at 1146 Sixteenth Street. Additionally, City staff assessed several other parking alternatives that they ultimately recommended against, including 1) the addition of 35 replacement subterranean public parking spaces at the Fourteenth Street site at a total cost of $6,340,316.00, and 2) nose2 As a reminder, the Council had previously approved HCHC to pay for on-site security at the 1402 Wilshire/1211-1217 Fourteenth Street project site for one year, with the option to evaluate for potential continuation.
3 The City of Santa Monica defines Permanent Supportive Housing as “for formerly homeless individuals who meet the city’s criteria of a Santa Monica Program Participant, or SMPP — someone who lost their housing in Santa Monica, worked in the city when they lost housing, has been homeless in Santa Monica for at least five years or is a high utilizer of city services. PSH is also for someone who lives in Santa Monica and is at-risk of becoming homeless.”
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in parking along the portions of Wilshire Blvd impacted by these housing projects. Despite proposing during the March 19, 2024 City Council meeting that an additional subterranean parking level could be added to the Euclid site for an approximated total of $5 million, Natalie noted that it would no longer be feasible to add additional parking to that project site.4 Additionally, she emphasized that funding for the creation of public parking spaces would require spending money from the Housing Trust Fund, which is limited and intended to cover future overrun costs of the projects. Natalie went on to suggest that the only action the City staff would recommend would be for the City to work with GoSaMo5 to provide information for local businesses and their staff to better their awareness of public transportation options available to them.

Natalie’s presentation concluded with a comment, which can also be found in the accompanying Staff Report, that other commercial corridors such as those along Montana Avenue and Ocean Park Blvd were “thriving” despite not having access to City-owned public parking lots. Additionally, HCHC received Architecture Review Board (ARB) approval for the Euclid project, and the City Manager will need to execute a DDA and other associated documents to allow HCHC to apply for outside financing. If successful, they anticipate breaking ground for the project in late 2025.

PART II: Councilmembers Ask Questions of City Staff, HCHC, and kDA NOTE: Council Member Barry Snell ABSENT
During this portion of the meeting, City Councilmembers asked questions of City staff, HCHC, and Kevin Daly Architects (kDA) regarding Staff Administrative Item 11.A.

Councilmember (CM) Jesse Zwick went first, asking questions that seemed to reflect three concerns: 1) parking alternatives and/or challenges to the replacement public parking options presented by City staff, 2) neighborhood/community safety and whether there might be formalized options for the community to bring their concerns/questions forward and engage meaningfully with HCHC, and 3) whether the City had done due diligence to ensure that they hadn’t overlooked an alternative funding opportunity when considering various aspects of the project. With regard to parking, CM Zwick questioned whether the City and HCHC had considered mixed use parking within the proposed sites, such as designating the available parking as public parking during the day, reverting to residential parking at night. Natalie Verlinich responded that HCHC had looked into this option, but stated that given the current proposed site layouts, there was no way for the public to be restricted from access to the 4 The accompanying Staff Report lists the following reasons for why this is no longer a suitable option: 1) ground level parking spaces were removed due to revised design and size constraints, 2) a second level of underground parking would require additional ramping resulting in a further loss of additional parking spaces, 3) any additional public parking would need to be on the street level to ensure security of the building and residents, and 4) providing public parking at street level would yield few public parking spaces due to required utility and service spaces and “would, either reduce the overall number of residential units or increase the height of the project,” resulting in a significantly wider financing gap. 5 GoSaMo Transportation Management Program (TMO) is responsible for helping “employers and property managers comply with Transportation Demand Management (TDM) regulations and assist commuters, residents and visitors to find mobility options that best suit their needs.” Item 1
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residents and/or residential units posing safety and security challenges.6 CM Zwick next challenged the City’s dismissal of perpendicular parking. He raised the possibility that back-in angled parking might be a safer alternative. Jason, speaking for DOT, responded that back-in angled parking has never before been utilized in Santa Monica, and therefore this proposal would require the City to work with a consultant on feasibility, design, etc. He made reference to a traffic signal being added to the intersection of Sixteenth Street and Wilshire Blvd as part of a DOT initiative to increase traffic safety along Wilshire Blvd, while also implying that the added traffic signal might bring with it increased traffic speeds making it unsafe for perpendicular parking. CM Zwick acknowledged that that might be the case, but also pushed back by saying that the implementation of a new traffic signal at Sixteenth Street might actually slow down traffic speeds to further allow for safe perpendicular parking. Jason suggested that this would require council action, and after an inquiry from CM Zwick regarding the overall cost of a study, suggested that $60,000 would be an approximate cost for a study per block to include staff and consultant time, plus any additional construction costs. Regarding neighborhood and community safety, CM Zwick inquired whether thought was put towards implementing a Good Neighbor Agreement and whether that might be accommodated.7 City staff and the City Attorney’s Office agreed that this made sense to implement, and committed to doing so should the Good Neighbor Agreement be included in the conditions of passing the motion. Lastly, CM Zwick asked for clarification regarding the decision to make the 1402 Wilshire/1211-1217 Fourteenth Street project senior housing at the expense of possible additional funding that could have been sought through an Affordable Housing and Sustainable Communities (AHSC) Program grant.8 A condition of the grant is a proposal for a companion transit project that would contribute to greenhouse gas (GHG) reductions. Both Natalie and Jason responded on behalf of the City staff, suggesting that they did not feel that there was a competitive enough transit project that could be proposed alongside the affordable housing proposals in order to qualify for the grant given the current bus service available along Wilshire as well as the proximity to other transit hubs including the Expo Line. CM Zwick and Natalie acknowledged that seniors were considered lower producers of GHG, and the decision to create housing for seniors therefore decreases the competitiveness for project funding. CM Zwick also challenged DOT staff that 6 According to the accompanying Staff Report, “Operationally, any replacement public parking would need to be on the street level to ensure security of the building and residents. If replacement public parking is underground, the development would need to have separate entrances, stairwells, and elevator access for both the residents and the public utilizing the replacement parking. The site area is not large enough to accommodate features required to ensure a secure environment for building residents, such as a separate parking entrance, stairwell and elevator to separate the publicly-accessible and resident parking areas.”
7 A Good Neighbor Agreement, according to the Homeless Leadership Coalition, “creates a process for addressing neighbor concerns that can arise when new resources to support those experiencing homelessness are developed or expanded within a community. The legal status of the agreement is a commitment to maintaining safety and livability to the area with the goal of maintaining open communications, encouraging parties to be proactive and ready to respond to concerns that may arise, developing procedures and protocols for resolving concerns and problems, enhancing neighborhood safety while promoting access to services, and reducing crime and fear of crime as well as nuisance complaints within a neighborhood.”
8 “The AHSC Program funds Projects that implement land-use, housing, transportation, and agricultural preservation practices that reduce greenhouse gas (GHG) emissions.” Item 1
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there might have been an option to potentially further decrease wait times between buses with the help of the ASHC grant (further decreasing the current 10 minute wait times), but Jason stated that the system is optimally operating and believed that further decreasing wait times would be more complicated as it would require hiring more bus drivers, expanding the bus fleet, etc. Natalie further retorted that in order to qualify for the AHSC funding at this stage of the project, there would have to be a reimagining of the 1402 Wilshire/1211-1217 Fourteenth Street project, as seniors would no longer qualify, causing delays to implementation.

Neither CM Dan Hall nor CM Ellis Raskin asked questions pertaining to parking. CM Hall inquired about exterior lighting of the building, suggesting he had heard concerns about it.

Sarah Letts confirmed there would be exterior lighting that would enhance the perception of safety as well as actual safety of the building and neighboring community, while limiting light pollution on the residential sides of the building. Natalie suggested that there had been no discussions and/or concerns brought up over lighting. CM Ellis inquired about potential conflicts to alley usage, specifically if access to the project sites would impede other utilizations of the alleys such as garbage pick up. Sarah Letts explained that the new buildings might actually create less congestion, as there would potentially be less turnover in the parking lots.

Additionally, she explained that the entrance to the garage would allow enough space for those entering and exiting to not block other essential alleyway functions.

Vice Mayor Caroline Torosis next inquired whether there was any justification to spending approximately $6.3 million to replace public parking, given the current utilization of the public parking lots. She further suggested that at that price tag, each newly created public parking space would cost $181,000. Again Natalie referenced the need to add subterranean parking, the cost of which would have to be taken from the limited Housing Trust Fund. CM Torosis suggested that there seemed to be a discrepancy between what the community said about the utilization of the parking lots and what the studies showed, and again asked again whether this would be a justifiable expense.9 Natalie responded that there were limited funds in the Housing Trust Fund, which would likely be utilized to cover the City’s very large housing commitment.

CM Natalya Zernitskaya next inquired about 1) whether GoSaMo might engage with the residents who would be occupying these new project sites in addition to local businesses, and 2) whether City staff had considered 45 degree angled parking, seeking clarification on the City’s definition of the perpendicular parking concept. Regarding her first query, Jason from DOT answered that GoSaMo’s core function was to work with local businesses to better inform them of public transportation options, and while they might be able to provide those services to residents, it would extend beyond their core function. On perpendicular parking, Jason again responded that the City of Santa Monica’s utilization of perpendicular parking has historically only included 90 degree parking, as the curb acts as a wheel stop. He acknowledged that 45 degree angled parking would potentially also utilize curb stops, hence serving the same purpose, and CM Zernitskaya suggested that this option might also help with visibility concerns. 9 According to a Surface Lost Replacement Study commissioned by the City of Santa Monica and executed by Walker Consultants, Mid-City Lot 7 (1217 Euclid) had an average of 41% utilization in 2023, with peak utilization of 57%. Comparatively, Mid-City Lot 12 (1211-1217 Fourteenth Street) had an average of 82% utilization in 2023, with peak utilization of 108%. City staff took those averages to suggest a combined 65% utilization, with a combined peak utilization of 79%.

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Lastly, Mayor Lana Negrete made several important inquiries of City staff: 1) whether a Good Neighbor Agreement would include feedback opportunities from local businesses as well as residents, and 2) whether the City staff had conducted an actual parking comparison between the retail corridors on Wilshire Blvd, Ocean Park Blvd, and Montana Avenue when they made the suggestion that the latter two were “thriving” despite not featuring City-owned public parking lots. When asking whether businesses would be included in the Good Neighbor Agreement, Mayor Negrete specifically mentioned that the Wilshire Theater “claimed they weren’t informed or not well informed” about the forthcoming projects. To this Natalie responded that “there have been some discussions with [the Wilshire Theater],” and that while walking along Wilshire Blvd surveying local businesses, City staff had noticed that the Wilshire Theater had an underground parking lot on site that was caged off and assumed that the building featured underground parking. She also confirmed that the City staff would be working with the City Attorney’s Office and HCHC on the facilitation of a Good Neighbor Agreement. When inquiring of City staff whether they had conducted an actual parking comparison of Wilshire Blvd, Ocean Park Blvd, and Montana Avenue, Mayor Negrete pointed out that the neighborhoods surrounding the Wilshire business corridor are predominantly multi-family buildings and permit-only parking, while the neighborhoods surrounding Montana Avenue’s business corridor are single family homes. She further clarified that the neighborhood surrounding both Montana Avenue and Ocean Park Blvd are zoned for R1, while the neighborhoods off of Wilshire Blvd are zoned for higher density housing.10 In response, Natalie said that the comparison made in the Staff Report and her presentation were not direct study comparisons, but rather based on “feedback” that had been shared from Montana Avenue and Ocean Park Blvd.

PART III: Councilmembers Discuss Conditions to Passage of Staff Administrative Item 11.A
After a brief discussion, the Council voted 6-0 in favor of moving forward Staff Administrative Item 11.A, “Approve Deal Terms and Authorize Development and Disposition Agreements (DDAs) and Ground Leases for 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1402 Wilshire Boulevard,” with the following paraphrased conditions: 1) evaluate different parking options and designs, 2) carry out a review to determine necessity for continued on-site security personnel 9 months after the 1402 Wilshire/1211-1217 Fourteenth Street property becomes operational11, and 3) include a Good Neighbor Agreement in the DDAs going forward. 10 According to City of Santa Monica’s Zoning Map, the neighborhoods surrounding the Wilshire Blvd retail corridor between 11th Street and 17th Street are a mixture of R2 (low density residential) and R3 (medium density residential) zoning, while the neighborhoods surrounding Montana Ave in the same radius are both R1 (single-unit residential) and R2 zoning. Ocean Park Blvd is predominantly R1 zoning, with isolated R3 along Ocean Park Blvd itself, and pockets of R2 zoning concentrated near public infrastructure such as John Adams Middle School and Santa Monica Community College. 11 As a reminder, the Council had previously approved HCHC to pay for on-site security at the 1402 Wilshire/1211-1217 Fourteenth Street project site for one year, with the option to evaluate a continuation.

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1217 EUCLID STREET AFFORDABLE RENTAL HOUSING
Topic/Item Disposition and Development Agreement (DDA) Deal Points Parties
Lessee: Hollywood Community Housing Corporation, (“Developer”)Lessor: City of Santa Monica (“City”); or a limited partnership controlled by the
Developer;Disposition Collectively: (“Parties”);
and Development Agreement (“DDA”) and Ground Lease Agreement (“Agreement”) Development Site The development site is comprised of approximately 15,000 square feet, between Arizona Avenue and Wilshire The proposed Boulevard, located at 1217 Euclid Street in Santa Monica, CA 90404. development is 48 units total, with 47 affordable rental apartments with 5 apartments reserved for 30% AMI households, 17 apartments reserved for 40% AMI households, 25 apartments reserved for 60% households, and 1 three-bedroom manager apartment without income restrictions. Government funding regulations and requirements may change, thus necessitating adjustments to the unit mix and AMI levels to maintain competitiveness for said funding. City staff shall reasonably approve changes to the unit mix and/or AMI levels to ensure competitiveness for government funding sources. All units except the manager’s unit shall be reserved for households with an average household income of 60% AMI or less.The current proposed unit mix shall be as follows: 21 one-bedrooms, 14 two-bedrooms, and 13 three-bedrooms.The building will have the following amenities: Community room with kitchenette; bike storage room; community laundry; playground; planted roof terrace; large package room; and on-site offices for management staff. Utilization There will be of the bike storage facility will be provided at no additional cost to the residents. some parking at grade and one floor of underground parking for a total of 40 vehicle spaces reserved for residents and on-site staff. The number of parking spaces could change due to design and building code requirements. City Manager is authorized to approve up to 10% change in the amount of parking spaces due to site constraints. Parking will be provided at no additional cost to residents.

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The development includes approximately 1,725 square feet of ground floor space for ancillary use for property management, resident services and resident common areas. The affordable housing, together with the ground floor uses and one level of underground parking, are herein referred to as the “Development”.

Good Faith Negotiation
termination, Parties will use best efforts to resolve the dispute by good faith negotiation. In case of any dispute arising from this Agreement, including any question regarding its interpretation, validity, or Local Entitlements
permitted by right. process and is exempt from California Environmental Quality Act (“CEQA”). The residential and ancillary uses are The Parties understand and agree that the Developer is eligible to apply for a local streamlined ministerial approval Ground Lease Term The City will provide a ground lease term of 55 years plus two options of 22 years each, the options may be elected by the Developer and City after mutual agreement subject to tax credit financing requirements, provided that Developer is not in default under the terms of the ground lease. The term of the ground lease will commence upon concurrent closing of escrow for financing the development, as more fully specified in the DDA. The Ground Lease Agreement and Regulatory Agreement shall include cross-default provisions.

RentGround Lease Annual rent for 55 years is $1 plus City’s pro rata share of residual receipts based on the amount of public funding provided by each public lender with the City’s contribution being calculated based on the fair market value of the development site at construction loan closing (“FMV”), which shall be determined by an appraisal mutually agreed upon by the City and Developer in accordance with TCAC requirements. At Year 56, assuming extension of the lease is exercised, rent will be equivalent to City’s share of residual receipts. Notwithstanding anything to the contrary contained herein, the aggregate rent actually paid to the City during the term of the ground lease shall not exceed the FMV.

LoanCity Housing Trust Funds If a funding gap should occur, City staff may approve HTF loans that comply with the underwriting criteria and loan limits within the City’s HTF Guidelines. Any request outside of these limits will be brought before City Council for approval. Developer/City to of the City. execute Housing Trust Funds Loan in the approximate amount of $11,000,000, which shall be secured by a deed of trust in favor Repayment of the loan shall be paid after payment in full of the Developer Fee, assuming both Parties agree to the Developer Fee. Repayment of the loan shall be paid from the City’s share of residual receipts after payment of the Ground Lease Rent. The loan term shall be 57 years from construction closing unless there is an early termination without construction closing.

City Regulatory Agreement The initial term of the City Regulatory Agreement will be 55 years from the date of the Certificate of Occupancy, be extended concurrently with each option to extend the Ground Lease Term. There shall be no subordination of City Item 1
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Regulatory Agreement to other financing sources during the lease period and any extension thereto. The Regulatory Agreement shall reference the following:

1. Form of Tenant Lease2. House Rules3. Services Plan4. Security Plan 5. List of Amenities 6. Tenant Selection Plan7. Property Management Plan Predevelopment Expenses All predevelopment expenses will be paid by Developer. Non-City Development Funding permanent bank loan, a Developer is required to obtain outside financing necessary to fully fund the Development, which includes a construction loan, State and/or Federal tax credit equity, and any other funding the The Developer deems necessary to achieve project feasibility.

City will have approval rights to any loan documents or grant agreements with non-City development funders.

Developer Fee
negotiated fee based on twill be subject to either the fee limit in the Santa Monica Housing Trust Fund Guidelines at the time of closing or a Developer to receive a maximum developer fee for the Development. The fee, including any deferred developer fee, hird-party review, up to the maximum allowable developer fee per CA LIHTC regulations at time of closing.

Management FeeGeneral Partner Asset Developer’s maximum yearly general partner asset management fee will be capped as follows: $25,000, inflated annually at 3.5%.

Management FeeLimited Partner Asset
3Developer’s maximum yearly investor asset management fee will be capped as follows: $10,000, inflated annually at .5%.

Construction Bids
list of subcontractors and conduct prevailing wage compliance review. The Developer will comply with City requirements regarding prevailing wage. Developer will provide the City with a Developer agrees to require a General
Contractor to obtain most competitive pricing, terms and conditions, consisting of at least three subcontractor bidsfrom the major trades.

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Credit EquityPermanent Debt and Tax Developer agrees to hold a solicitation process for lenders and investors to obtain most competitive pricing, terms and conditions.

ModificationsFinancing Plan As changes are made during the predevelopment phase and prior to Development Closing, Developer shall submit to the City. City and Developer shall jointly approve changes to the Financing Plan through constructioCity for review updated versions of the Financing Plan reflecting any and all changes from prior versions submitted to n loan closing.
within Developer and City will meet and confer if costs increase to create a funding gap. If the funding gap cannot be closed 24 months from execution of the DDA, the City will have the right to terminate the Agreement or provide an extension to be negotiated. City can terminate the Agreement for cause if Developer is in default of the DDA (subject to all applicable notice and cure provisions of the DDA). and PlansAssignment of Contracts
survive The City shall require the Developer to assign land use entitlements, plans, and contracts. This assignment shall termination of the DDA; provided however, in the event the City elects to terminate the DDA as a result of a funding gap and Developer is not otherwise in default or owe the City any Housing Trust Fund loan, at the City’s Produinterest in any land use entitlements, plans, and contracts developed in connection with the Project (the “Work request, the Developer shall assign, on an as is basis without any representation or warranty, all of its right, title and ct”) upon the City’s agreement to reimburse the Developer for the demonstrated third party out of pocket expenses incurred by Developer and its affiliates in connection with the Work Product.

City Approval Rights City shall have approval rights, which shall not be unreasonably withheld or delayed, over the following:
a. Key members of the development team, including the General Contractorb.

Retention Process, Security PlanProperty Management team, Property Management Plan, Lease, Tenant Selection Plan, House Rules, Housing c. Service Provider Team and Services Pland. Key documents, including but not limited to the Limited Partnership Agreement and Construction Contracte. The Development’s development budget and annual operating budget f. Withdrawals from the operating and replacement reserves, consistent with the requirements of the lender/investor.g. Transfer or sale of leasehold interest, and refinancing, consistent with the requirements of the lender/investorh. Transfer of general partner, or managing general partner interest and all associated transfer documentsi. Partnership and financing documents Transfer or Assignment Developer agrees to City approval rights over General Partner transfer or assignment that are industry standard for tax credit financed developments.

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Tenant Selection Subject to federal and state fair housing laws, the Development must utilize the City’s Below Market Housing waitlist to fill affordable apartments.

Security The City shall approve the Security Plan as part of the Regulatory Agreement. Developer is required to provide security in accordance with the Security Plan. If the City believes that the Security Plan is insufficient, the City can request a meet and confer with the Developer to reassess the Security Plan. The Security Plan shall include at a minimum:
• Security staff during construction• Controlled access points• Perimeter security fencing• Key fob access and automatic locking• Alarm system• Security cameras with an on-site monitoring system at the property management office Building sustainability • Developments will meet Santa Monica Energy Performance Requirements as defined by the Energy •Performance Approach Reach Code.

Developments will meet Santa Monica's Electric Vehicle Charger Reach Code and provide secure bicycle parking on-site to encourage alternate mobility options • Developments will be solar-ready, with infrastructure in place to serve photovoltaic arrays when funding is •available.

Developments will utilize drought-tolerant planting.
• Natural ventilation - while each unit will be equipped with air conditioning, units are planned with operable •windows to maximize natural ventilation and reduce A/C demand Site orientation and self-shading - windows are placed to maximize natural daylight within units and windows facing south and west are self-shaded with architectural elements to reduce heat gain • Planted roof areas and podiums to mitigate urban heat island effect• Shaded, open-air common areas DDA Upon approval of the Term Sheet by the City Council, Developer and City staff will negotiate a DDA\containing all terms recommended DDA. and conditions of the transaction for approval by the City Council. The City Council reserves the right to reject the Item 1
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1.The DDA will include, at a minimum:

Legal Description

2. Site Map3. Scope of Development4. Schedule of Development5. Development Budget6. Pro Forma Sources and Uses (Financing Plan) 7. Form of Regulatory Agreement8. Form of Ground Lease9. Memo of Ground Lease10. Form of Assignment of Contracts and Plans11. Assignment of Agreements Item 1
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72 City of Santa Monica: 1217 Euclid St, 1211-1217 14th St, 1146 16th St Affordable Housing Proposal BRIDGE Housing & KoningEizenberg Architecture 73

FINANCIAL STRATEGY
BRIDGE Housing Corporation is committed to producing a financing strategy, design, and population mix that works for the City of Santa Monica. BRIDGE is proposing a two-phase development consisting of 139 units of affordable housing: 1. SENIOR HOUSING DEVELOPMENT a 58-unit affordable senior housing complex comprised of 1-bedroom apartments ranging from very-low (30% AMI) to low (50% AMI) income levels and with 20 1-bedroom units set aside for homeless seniors, and one 2-bedroom for a fulltime onsite building manager. A public parking garage with 21 parking spaces will be located below the apartments.

2. LARGE FAMILY DEVELOPMENT an 81-unit affordable family housing complex comprised of 1-, 2-, and 3-bedroom units. Units are set aside for incomes ranging from very-low (30% AMI) to low (50-60% AMI). This development will be a scattered site project by TCAC and other funder definitions and will follow those regulations. 51 units will be located on the 14th St site and the remaining 30 units will be located on the 16th St site. Each building will have a unit set aside for a fulltime onsite building manager and its own amenity space. The 14th St site will include 58 public parking spaces located in a two-level garage below the proposed residences.

The proposed populations attempt to address priority populations identified in the Housing Element as having greater difficulty accessing housing in Santa Monica, namely large family, small family, senior, and individuals experiencing homelessness. The proposed AMI range of 30-50% makes each phase eligible and competitive to compete for state funding from the Affordable Housing Sustainable Communities (AHSC) and Multifamily Housing Program (MHP) as well as Los Angeles County Development Authority (LACDA) and other funding sources. This affordability and population mix can be modified depending on City and community feedback.

NARRATIVE AND TIMELINETimeline We are proposing to have City of Santa Monica funding approvals and land disposition agreements in place by the time HCD’s AHSC application is due in approximately April of 2024, to allow the Family phase to apply with a local match. The Senior phase will then apply for MHP funding in HCD’s Super NOFA application in July 2024 (all CTCAC and HCD dates assume a similar schedule to 2023). The AHSC awards are expected in August 2024, which would allow Family Phase to apply for CDLAC tax exempt bonds in September 2024. MHP Super NOFA awards would be expected in December 2024, which will allow the Senior Phase to apply for 9% LIHTC from CTCAC in March 2025. If awarded tax credits, Family phase will start construction May 2025 and Senior phase will start November 2025. Both would begin accepting new residents by November of 2027. Affordable Housing Program (AHP) applications and awards will occur during construction.

Apr 2024 City of Santa Monica Land/ PBV/ Local Match awardApr 2024 Family phase AHSC applicationJul 2024 Senior phase Super NOFA application for MHP funds Sep 2024 Family phase CDLAC/ CTCAC joint application
Mar 2025 Senior phase 9% CTACAC applicationMay 2025 Family phase closing and construction start Nov 2025 Senior phase closing and construction start
Apr 2027 Family phase construction complete
Sep 2027 Senior phase construction complete
Low Income Housing Tax Credits The proposed financing includes 4% LIHTC tax credit equity and CDLAC tax-exempt bonds for the Family project and 9% LIHTC tax credit equity for the Senior project. The Family phase qualifies as a Large Family scattered site project under CDLAC and CTCAC rules. The Family phase intends to apply for 4% tax credits in conjunction with tax exempt bonds. The Senior phase will apply for 9% tax credits from CTCAC. Both projects assume LIHTC pricing of $.95, a price BRIDGE has recently exceeded for both 4% and 9% projects. BRIDGE has a substantial history of successfully applying for 9% LIHTC from CTAC, as detailed elsewhere in this RFP response. BRIDGE’s Capital Markets division maintains relationships with multiple tax credit investors and conducts RFPs prior to each project’s closing in order to obtain optimal terms and credit pricing.Conventional Loans BRIDGE will apply for conventional construction and permanent loans for both projects, with a portion of the Family phase’s loans being tax exempt. Construction loan indicative rates are assumed at 8.00% and permanent loan rates at 6.00%. Project based vouchers in each project are requested in order to maintain cash flow and maximize the amount of financeable perm debt. BRIDGE’s Capital Markets division maintains relationships with multiple lenders and conducts RFPs prior to each project’s closing in order to obtain optimal terms and pricing.State of California Department of Housing and Community Development Funds BRIDGE will apply for funding from the state’s Affordable Housing Sustainable Communities (AHSC) program for the Family phase and Multifamily Housing Program (MHP) funding for the Senior phase. BRIDGE has a successful track record in obtaining HCD funding, including the August 2023 announcement of TOTAL UNITS139FAMILY UNITS81SENIOR UNITS58ASSUMPTIONSPlease see enclosed the complete pro formas for each phase for additional detail on project assumptions, development and operating budgets, sources, financing assumptions, and income assumptions.

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74 City of Santa Monica: 1217 Euclid St, 1211-1217 14th St, 1146 16th St Affordable Housing Proposal BRIDGE Housing & KoningEizenberg Architecture 75 PROJECT SUMMARY Santa Monica RFP Project Name Santa Monica Family Address 1211 14th St. + 1146 16th St.

City, State ZIP Santa Monica, CA 90404Site Area (sq ft) 22,500Landscaped Area (sq ft) 7,200Parking Area (sq ft) 29,570Unit Summary Studio 0One Bedroom 40Two Bedroom 21Three Bedroom 20Four Bedroom 0Total 81Residential Area (combined)1st Floor (sq ft) 9,7002nd Floor (sq ft) 12,7003rd Floor (sq ft) 12,7004th Floor (sq ft) 12,7005th Floor (sq ft) 12,7006th Floor (sq ft) 12,700Total (sq ft) 73,200Parking SpacesResidential 0Commercial 58Total 58Assumptions Residential Vacancy Factor (1) 5.00%Perm Loan Rate (2) 6.00%Debt Service Coverage Ratio 1.15Current TCAC 9% Rate 4.00%Credit Rate (Cents per Dollar) $0.95Construction Loan Rate 8.00% PRO FORMAFAMILY PRO FORMA (1211-1217 14TH ST & 1146 16TH ST) over $100M in AHSC funding to three BRIDGE projects, including the Los Angeles HHH New Hampshire project located in Koreatown.Affordable Housing Program (AHP) Each phase will apply for funding from the Federal Home Loan Bank of San Francisco’s AHP program during construction, when projects are the most competitive. BRIDGE has a strong track record of applying for and receiving AHP funding, including the 2023 award of funding to our Heritage Square South project in the City of Pasadena. REQUESTS OF SANTA MONICAThe two proposals attempt to limit the request of Santa Monica funds to the extent feasible, while maintaining an aggressive schedule to move the two phases toward construction loan closing. Between both proposals, the three requests of Santa Monica are:1. Land For both Senior and Family phases, we propose the City-owned land be offered on a long-term lease structure at nominal, below-market rates. The land contribution, meeting the terms and intent of the state’s surplus land act, will function as the primary source of local contribution for both phases as we compete for larger pots of state funding. We are holding $7M in the Senior Phase pro forma and $8M (two sites) in the Family phase pro forma as a source and a use that will be used to leverage AHSC and MHP funding. Actual value will be determined by a third-party independent appraisal commissioned either by the City or by BRIDGE. A 99-year long-term leasehold structure would be preferred.

2. Project Based Vouchers We are requesting Project Based Voucher rental support for the 20 proposed homeless senior units in the Senior phase. In addition, we request PBVs for the 27 very low-income family units in the Family phase, including 13 1-bedrooms, 7 2-bedrooms, and 7 3-bedrooms. The proposed rental subsidy will ensure that each project cash flows well, allowing the high level of maintenance, security, and management BRIDGE provides at its properties.

3. Soft Funding of $2.7M for the Family phase The Senior phase is not anticipated to require a soft ask of the city. The Family phase will require a relatively small request of a $2.7M residual receipts loan from Santa Monica, partially due to the added cost of the replacement of public parking in a 2-level garage below the units. We are designing the project to comply with LACDA design guidelines, and could make a request for these funds from the LACDA NOFA, as an alternate. The $2.7M request is assumed to be a deferred residual receipts loan to the project with 3% interest deferred and accrued. The term is expected to be 55 years and repayment to be made to the City of Santa Monica from the pro rata share of 50% of the residual receipts from cash flow during operations of the buildings.

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76 City of Santa Monica: 1217 Euclid St, 1211-1217 14th St, 1146 16th St Affordable Housing Proposal BRIDGE Housing & KoningEizenberg Architecture 77 Santa Monica Family INCOME SUMMARY

TOTAL GROSS PBV UTILITY NET MONTHLY PBV RENTAL MONTHLY MONTHLY UNIT SIZE % AMI # % SQ FT SQ FT RENT Requested ALLOW. RENT RENT SUBSIDY SUBSIDY INCOME One Bedroom 30% 13 16% 600 7,800 $893 13 $73 $820 $10,657 $1,037 $13,484 $24,141 One Bedroom 40% 13 16% 600 7,800 $909 0 $73 $836 $10,868 $10,868One Bedroom 50% 13 16% 600 7,800 $1,116 0 $73 $1,043 $13,559 $13,559 Two Bedroom 30% 7 9% 1,030 7,210 $804 7 $92 $712 $4,984 $1,836 $12,852 $17,836 Two Bedroom 40% 7 9% 1,030 7,210 $1,072 0 $92 $980 $6,860 $6,860 Two Bedroom 50% 6 8% 1,030 6,180 $1,340 0 $92 $1,248 $7,488 $7,488Three Bedroom 30% 7 9% 1,200 8,400 $929 7 $113 $816 $5,711 $1,751 $12,258 $17,969 Three Bedroom 40% 7 9% 1,200 8,400 $1,238 0 $113 $1,125 $7,878 $7,878 Three Bedroom 50% 6 8% 1,200 7,200 $1,548 0 $113 $1,435 $8,610 $8,610Manager 1 BR 1 1% 600 600 0 $0 $0 Manager 2 BR 1 1,030 1,030 $0 $0
Subtotal 81 100% 69,630 $115,209
76,615 38,594 ANNUAL
Gross Annual Rental Income $1,382,506
Laundry/Vending Income @ $6 per unit per month $5,832
Less: Vacancy @ 5.00% per year ($69,417)
Commercial Parking Income 381,060
Effective Gross Annual Rental Income $1,318,921
Less: Operating Expenses @ $9,561 per unit ($774,416)
Net Operating Income $925,564
Cash Flow Available for Debt Service $804,838.50
Aver. AMI 39.25% SM VPS Summary:

Studio 1,512 1-BRs 40 30% AMI 27
1-BR 1,930 2-BRs 21 40% AMI 272-BR 2,640 3-BRs 20 50% AMI 253-BR 3,366 81 60% AMI 0 79 SOURCE: CTCAC Rents for Projects PIS after 3/30/2022 Utility Allowances Studio 1 BR 2 BR 3 BR Studios 1-BR 2-BR 3-BR
100% 2,082 2,232 2,680 3,096 Elec. Heat 17$ 24$ 32$ 40$ 80% 1,666 1,786 2,144 2,477 Elec. Cook. 9$ 13$ 16$ 20$ 75% 1,562 1,674 2,010 2,322 Other Elec. 30$ 36$ 44$ 53$ 70% 1,457 1,562 1,876 2,167 TOTAL 56$ 73$ 92$ 113$ 60% 1,249 1,339 1,608 1,85855% 1,145 1,228 1,474 1,70350% 1,041 1,116 1,340 1,548 Parking Income 45% 937 1,004 1,206 1,393 Stalls Aver. Fee Turns/day Aver. Utiliz. Income/Day Income/Year Mainten. Fee Annual Income40% 833 893 1,072 1,238 58 6$ 4 60% 835$ 304,848$ 76,212 $ 381,060 $ 30% 625 670 804 929 FAMILY PRO FORMA (1211-1217 14TH ST & 1146 16TH ST)
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78 City of Santa Monica: 1217 Euclid St, 1211-1217 14th St, 1146 16th St Affordable Housing Proposal BRIDGE Housing & KoningEizenberg Architecture 79 Santa Monica Family OPERATING EXPENSE SUMMARY
YEAR 1 PER SQ FT PER UNIT PER MON
73,200 81
ADMINISTRATIVE EXPENSESAdvertising $5,000 $0.07 $62 $417Legal $5,000 $0.07 $62 $417Accounting/Audit $25,000 $0.34 $309 $2,083Security $54,092 $0.74 $668 $4,508SUBTOTAL ADMINISTRATIVE EXPENSES $89,092 $1.22 $1,100 $7,424MANAGEMENT FEE 7% $92,324 $1.26 $1,140 $7,694UTILITIESFuel $0 $0 $0.00 $0 $0Gas $0 $0 $0.00 $0 $0Electric $800 $64,800 $0.89 $800 $5,400Water/Sewer $900 $72,900 $1.00 $900 $6,075SUBTOTAL UTILITIES $137,700 $1.88 $1,700 $11,475PAYROLLOn-Site Manager $80,000 $1.09 $988 $6,667Maintenance Personnel $39,000 $0.53 $481 $3,250Manager's Unit Free Rent $0.00 $0 $0SUBTOTAL PAYROLL $119,000 $1.63 $1,469 $9,917INSURANCE $60,000 $0.82 $741 $5,000MAINTENANCEPainting $8,000 $0.11 $99 $667Repairs $100,000 $1.37 $1,235 $8,333Trash Removal $30,000 $0.41 $370 $2,500Exterminating $5,500 $0.08 $68 $458Grounds $12,500 $0.17 $154 $1,042Elevator $25,000 $0.34 $309 $2,083SUBTOTAL MAINTENANCE $181,000 $2.47 $2,235 $15,083OTHER EXPENSESBusiness License Tax $5,000 $0.07 $62 $417Land Use Covenant Fee $0 $0 $0.00 $0 $0Regulatory Monitoring Fees $8,500 $0.12 $105 $708Other $0 $0.00 $0 $0City of SM Ground Lease Payment $500 $0.01 $6 $42SUBTOTAL OTHER EXPENSES $14,000 $0.19 $173 $1,167SUBTOTAL OPERATING EXPENSES $693,116 $9.47 $8,557 $57,760 Service Amenities $50,000 $0.68 $617 $4,167Replacement Reserves $300 $24,300 $0.33 $300 $2,025Real Estate Taxes $7,000 $0.10 $86 $583TOTAL EXPENSES $774,416 $10.58 $9,561 $64,535Asset Management Fee $5,000 $0.07 $62 $417Managing General Partner Fee $25,000 $0.34 $309 $2,083TOTAL PROJECT EXPENSES $30,000 $0.41 $370 $2,500 Santa Monica Family DEVELOPMENT BUDGET

BUDGET PER SQ FT PER UNIT ELIG BASIS
ACQUISITION 73,200 81Land Value $8,000,000 $109 $98,765 ******** Demo- outside $0 $0 $0 ******** Existing Improvements Value $0 $0 $0 $0
Off-Site Improvements $0 $0 $0 $0
SUBTOTAL ACQUISITION COSTS $8,000,000 $109 $98,765 $0CONSTRUCTIONSite Work 5% $2,173,457 $30 $26,833 $2,173,457 Structures 81% $29,682,703 $406 $366,453 $29,682,703
General Requirements 7% $3,042,840 $42 $37,566 $3,042,840 Contractor Overhead & Profit 5% $2,173,457 $30 $26,833 $2,173,457Public Parking $5,527,300 $76 $68,238 ******** Insurance Pmt Perf Bond 2% $869,383 $12 $10,733 $869,383 SUBTOTAL CONSTRUCTION COSTS $43,469,140 $594 $536,656 $37,941,840ARCHITECTUREDesign $600,000 $8 $7,407 $600,000Supervision $140,000 $2 $1,728 $140,000 Survey & Engineering $1,000,000 $14 $12,346 $1,000,000SUBTOTAL ARCHITECTURE COSTS $1,740,000 $24 $21,481 $1,740,000CONSTRUCTION LOANConstruction Interest Expense 30 $8,340,000 $114 $102,963 $5,004,000Origination Fee 1.00% $556,000 $8 $6,864 $556,000Application Fee $0 $0 $0 $0Bond Premium $0 $0 $0 $0 Cost of Issuance 3% $1,473,400 $20 $18,190 ******** Real Estate Taxes 0 $0 $0 $0 $0Property Insurance $1,200,000 $16 $14,815 $1,200,000Title & Recording $85,000 $1 $1,049 $42,500Bank Inspector $45,000 $1 $556 $45,000Other Lender Costs & Fees $50,000 $1 $617 $50,000SUBTOTAL CONSTRUCTION LOAN $11,749,400 $161 $145,054 $6,897,500PERMANENT FINANCINGLoan Origination Fee 1.00% $107,883 $1 $1,332 ******** Application Fee $0 $0 $0 ******** Title & Recording $30,000 $0 $370 ******** Taxes, Insurance & Other $30,000 $0 $370 ******** SUBTOTAL PERMANENT FINANCING $167,883 $2 $2,073 $0LEGAL FEESLender Legal Paid by Applicant $100,000 $1 $1,235 $100,000 Transaction Legal Fees $115,000 $2 $1,420 $55,000
SUBTOTAL ATTORNEY COSTS $215,000 $3 $2,654 $155,000
RESERVESTransition Reserve (HCD Pooled) $69,469 $1 $858 ******** Replacement Reserve (Yr 1) $24,300 $0 $300 ******** Three Month Operating Reserve $394,676 $5 $4,873 ******** Additional Lender Req'd Reserve $0 $0 ******** SUBTOTAL RESERVE COSTS $488,445 $7 $6,030 $0 OTHER PROJECT COSTSAppraisal Costs $15,000 $0 $185 $15,000Hard Cost Contingency 5% $1,893,457 $26 $23,376 $1,893,457 TCAC $282,115 $4 $3,483 ******** Environmental Audit $10,000 $0 $123 $10,000 Local Development Impact Fees $371,757 $5 $4,590 $371,757 Permit Processing Fees $486,000 $7 $6,000 $486,000Utilities connections $1,200,000 $16 $14,815 $1,200,000 Marketing $75,000 $1 $926 ******** Furnishings $125,000 $2 $1,543 $125,000Market Study $12,000 $0 $148 ******** Accounting/Reimbursables $25,000 $0 $309 ******** Soft Cost Contingency 1.09% $300,000 $4 $3,704 $300,000Relocation $0 $0 $0 ******** Financial Consultant $90,000 $1 $1,111 ******** Construction Mgmt, Deputy Inspections $395,000 $5 $4,877 $395,000 Green Building Certification $80,000 $1 $988 $80,000
Lease Up Expense & Fee $50,000 $1 $617 ******** Predevelopment Interest & Fees $100,000 $1 $1,235 ******** Transit-Related Amenities $0 $0 $0 ******** SUBTOTAL OTHER COSTS $5,510,329 $75 $68,029 $4,876,214DEVELOPER COSTSDeveloper Overhead/Profit $7,741,583 $106 $95,575 $7,741,583Consultant/Processing Agent $0 $0 $0 $0Project Administration $0 $0 $0 $0Broker Fees Paid to a Related Party $0 $0 $0 $0Construction Oversight by Developer $0 $0 $0 $0SUBTOTAL DEVELOPER COSTS $7,741,583 $106 $95,575 $7,741,583TOTAL DEVELOPMENT COSTS $79,081,780 $1,080 $976,318 $59,352,137 FAMILY PRO FORMA (1211-1217 14TH ST & 1146 16TH ST)
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80 City of Santa Monica: 1217 Euclid St, 1211-1217 14th St, 1146 16th St Affordable Housing Proposal BRIDGE Housing & KoningEizenberg Architecture 81 Santa Monica Family CASH FLOW
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 REVENUERental Revenue 2.5% $1,382,506 $1,417,068 $1,452,495 $1,488,807 $1,526,028 $1,564,178 $1,603,283 $1,643,365 $1,684,449 $1,726,560 $1,769,724 $1,813,967 $1,859,316 $1,905,799 $1,953,444 Other Income 2.5% $5,832 $5,978 $6,127 $6,280 $6,437 $6,598 $6,763 $6,932 $7,106 $7,283 $7,465 $7,652 $7,843 $8,039 $8,240Commercial Parking Income 2.5% $381,060 $390,587 $400,351 $410,360 $420,619 $431,134 $441,913 $452,961 $464,285 $475,892 $487,789 $499,984 $512,483 $525,295 $538,428Less: Vacancy 5.0% ($69,417) ($71,152) ($72,931) ($74,754) ($76,623) ($78,539) ($80,502) ($82,515) ($84,578) ($86,692) ($88,859) ($91,081) ($93,358) ($95,692) ($98,084)SUBTOTAL NET REVENUE $1,699,981 $1,742,480 $1,786,042 $1,830,693 $1,876,461 $1,923,372 $1,971,456 $2,020,743 $2,071,261 $2,123,043 $2,176,119 $2,230,522 $2,286,285 $2,343,442 $2,402,028 ADMINISTRATIVE EXPENSESAdvertising 3.5% $5,000 $5,175 $5,356 $5,544 $5,738 $5,938 $6,146 $6,361 $6,584 $6,814 $7,053 $7,300 $7,555 $7,820 $8,093Legal 3.5% $5,000 $5,175 $5,356 $5,544 $5,738 $5,938 $6,146 $6,361 $6,584 $6,814 $7,053 $7,300 $7,555 $7,820 $8,093Accounting/Audit 3.5% $25,000 $25,875 $26,781 $27,718 $28,688 $29,692 $30,731 $31,807 $32,920 $34,072 $35,265 $36,499 $37,777 $39,099 $40,467Security 3.5% $54,092 $55,985 $57,945 $59,973 $62,072 $64,244 $66,493 $68,820 $71,229 $73,722 $76,302 $78,973 $81,737 $84,598 $87,558SUBTOTAL ADMINISTRATIVE EXPENSES $89,092 $92,210 $95,438 $98,778 $102,235 $105,813 $109,517 $113,350 $117,317 $121,423 $125,673 $130,072 $134,624 $139,336 $144,213MANAGEMENT FEE 3.5% $92,324 $95,556 $98,900 $102,362 $105,944 $109,652 $113,490 $117,462 $121,574 $125,829 $130,233 $134,791 $139,509 $144,391 $149,445UTILITIESFuel 3.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Gas 3.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Electric 3.5% $64,800 $67,068 $69,415 $71,845 $74,359 $76,962 $79,656 $82,444 $85,329 $88,316 $91,407 $94,606 $97,917 $101,344 $104,891Water/Sewer 3.5% $72,900 $75,452 $78,092 $80,826 $83,654 $86,582 $89,613 $92,749 $95,995 $99,355 $102,833 $106,432 $110,157 $114,012 $118,003SUBTOTAL UTILITIES $137,700 $142,520 $147,508 $152,670 $158,014 $163,544 $169,268 $175,193 $181,325 $187,671 $194,239 $201,038 $208,074 $215,357 $222,894PAYROLLOn-Site Manager 3.5% $80,000 $82,800 $85,698 $88,697 $91,802 $95,015 $98,340 $101,782 $105,345 $109,032 $112,848 $116,798 $120,885 $125,116 $129,496Maintenance Personnel 3.5% $39,000 $40,365 $41,778 $43,240 $44,753 $46,320 $47,941 $49,619 $51,356 $53,153 $55,013 $56,939 $58,932 $60,994 $63,129Manager's Unit Free Rent 2.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0SUBTOTAL PAYROLL $119,000 $123,165 $127,476 $131,937 $136,555 $141,335 $146,281 $151,401 $156,700 $162,185 $167,861 $173,736 $179,817 $186,111 $192,625INSURANCE 3.5% $60,000 $62,100 $64,274 $66,523 $68,851 $71,261 $73,755 $76,337 $79,009 $81,774 $84,636 $87,598 $90,664 $93,837 $97,122MAINTENANCEPainting 3.5% $8,000 $8,280 $8,570 $8,870 $9,180 $9,501 $9,834 $10,178 $10,534 $10,903 $11,285 $11,680 $12,089 $12,512 $12,950Repairs 3.5% $100,000 $103,500 $107,123 $110,872 $114,752 $118,769 $122,926 $127,228 $131,681 $136,290 $141,060 $145,997 $151,107 $156,396 $161,869Trash Removal 3.5% $30,000 $31,050 $32,137 $33,262 $34,426 $35,631 $36,878 $38,168 $39,504 $40,887 $42,318 $43,799 $45,332 $46,919 $48,561Exterminating 3.5% $5,500 $5,693 $5,892 $6,098 $6,311 $6,532 $6,761 $6,998 $7,242 $7,496 $7,758 $8,030 $8,311 $8,602 $8,903Grounds 3.5% $12,500 $12,938 $13,390 $13,859 $14,344 $14,846 $15,366 $15,903 $16,460 $17,036 $17,632 $18,250 $18,888 $19,549 $20,234Elevator 3.5% $25,000 $25,875 $26,781 $27,718 $28,688 $29,692 $30,731 $31,807 $32,920 $34,072 $35,265 $36,499 $37,777 $39,099 $40,467SUBTOTAL MAINTENANCE $181,000 $187,335 $193,892 $200,678 $207,702 $214,971 $222,495 $230,283 $238,342 $246,684 $255,318 $264,255 $273,503 $283,076 $292,984OTHER EXPENSESBusiness License Tax 3.5% $5,000 $5,175 $5,356 $5,544 $5,738 $5,938 $6,146 $6,361 $6,584 $6,814 $7,053 $7,300 $7,555 $7,820 $8,093Parking Covenant Fee 3.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other 3.5% $8,500 $8,798 $9,105 $9,424 $9,754 $10,095 $10,449 $10,814 $11,193 $11,585 $11,990 $12,410 $12,844 $13,294 $13,759Other 3.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other 3.5% $500 $518 $536 $554 $574 $594 $615 $636 $658 $681 $705 $730 $756 $782 $809SUBTOTAL OTHER EXPENSES $14,000 $14,490 $14,997 $15,522 $16,065 $16,628 $17,210 $17,812 $18,435 $19,081 $19,748 $20,440 $21,155 $21,895 $22,662 SUBTOTAL OPERATING EXPENSES $693,116 $717,376 $742,484 $768,471 $795,367 $823,205 $852,017 $881,838 $912,702 $944,647 $977,709 $1,011,929 $1,047,347 $1,084,004 $1,121,944 Service Amenities 3.5% $50,000 $51,750 $53,561 $55,436 $57,376 $59,384 $61,463 $63,614 $65,840 $68,145 $70,530 $72,998 $75,553 $78,198 $80,935Replacement Reserves $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300 $24,300Real Estate Taxes 2.0% $7,000 $7,140 $7,283 $7,428 $7,577 $7,729 $7,883 $8,041 $8,202 $8,366 $8,533 $8,704 $8,878 $9,055 $9,236TOTAL EXPENSES $774,416 $800,566 $827,628 $855,635 $884,620 $914,618 $945,663 $977,792 $1,011,044 $1,045,457 $1,081,072 $1,117,931 $1,156,078 $1,195,557 $1,236,415NET OPERATING INCOME $925,564 $941,915 $958,415 $975,058 $991,840 $1,008,754 $1,025,793 $1,042,950 $1,060,217 $1,077,586 $1,095,047 $1,112,591 $1,130,207 $1,147,885 $1,165,613Debt Service $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756 $711,756AHSC HCD PMT 0.42% $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534 $92,534Debt Service Coverage Ratio 1.15 1.17 1.19 1.21 1.23 1.25 1.28 1.30 1.32 1.34 1.36 1.38 1.41 1.43 1.45CASH FLOW AFTER DEBT SERVICE $121,274 $137,624 $154,124 $170,768 $187,550 $204,464 $221,503 $238,660 $255,927 $273,295 $290,756 $308,300 $325,917 $343,595 $361,323TCAC 25% test (1st 3 yrs) 17.04% 19.34% 21.65% 13 Yr Total
Deferred Developer Fee $1,445,081 $60,637 $68,812 $77,062 $85,384 $93,775 $102,232 $110,751 $119,330 $127,963 $136,648 $145,378 $154,150 $162,958 $171,797 $180,661Other Soft Lenders $60,637 $68,812 $77,062 $85,384 $93,775 $102,232 $110,751 $119,330 $127,963 $136,648 $145,378 $154,150 $162,958 $171,797 $180,661Asset Management Fee $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000Managing General Partner Fee $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000RESIDUAL PROJECT CASH FLOW $30,637 $38,812 $47,062 $55,384 $63,775 $72,232 $80,751 $89,330 $97,963 $106,648 $115,378 $124,150 $132,958 $141,797 $150,661 FAMILY PRO FORMA (1211-1217 14TH ST & 1146 16TH ST)
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80 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Chapter 5Financing Strategy
Hollywood Community Housing Corporation 81
Chapter 5 | Financing Strategy

5.1 Funding Sources StatementIntroductionHCHC is proposing to finance all 130 units across the three sites in a single phase. The financing will involve a combination of public and private financing including 4% Low Income Housing Tax Credits (LIHTC). Financing the project in one phase will maximize the sites’ competitiveness for scarce public resources while building the housing as quickly as possible. The primary sources of competitive public financing that will drive the project’s timeline include:1. The California Department of Housing and Community Development’s (HCD) Affordable Housing and Sustainable Communities (AHSC) program. AHSC is implemented by HCD and administered by the California Strategic Growth Council. It provides loans to projects that achieve greenhouse gas emission reductions and low-income households through increasing accessibility to affordable housing, employment centers and low-carbon footprint transportation options. The AHSC program prioritizes high density projects with over 100 units including many three-bedroom apartments as well as projects close to high quality transit. These sites meet those criteria.

2. HCD’s Infill Infrastructure Grant (IIG) program.

IIG prioritizes urban infill projects that have a high level of readiness. This means the project will need to secure most of its other funding and receive its entitlements in order to be competitive.

3. 4% LIHTC with tax exempt bonds and state
tax credits. These sources of funding prioritize large family projects in high resource areas. The proposed project has been structured to maximize its competitiveness for this funding.

The project’s total development cost is currently estimated at $97,341,041 or $748,777 per unit. The construction budget hard costs are based on estimates provided by Morley Builders, an established general contractor headquartered in Santa Monica. The budget’s soft costs are primarily based on similar HCHC projects in Los Angeles County and other projects in Santa Monica. Construction period financing will mostly rely on LIHTC equity from the syndication of 4% and state tax credits, IIG financing, tax-exempt and taxable construction loans. The project anticipates applying to the California Tax Credit Allocation Committee (CTCAC) in September 2025. Permanent financing will primarily consist of 4% LIHTC and state tax credit equity, a tax-exempt permanent loan, and the state’s AHSC and IIG financing. Sources and uses are described in more detail below and pertain to the residential development. 80 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Above

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Garden space at the Coronel apartments
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Permanent Financing
Affordable Housing and Sustainable Communities (AHSC) $25,000,000The project will apply for AHSC financing in February 2025 and anticipates receiving an award in the amount shown above with a 3% simple interest rate. The loan will be repaid through residual receipts and the funds require an annual payment in the amount of 0.42% of project cash flow before hard debt service. The financing has a 55-year term.Tax-Exempt Bank Permanent Loan $9,794,409 The project will secure a tax-exempt permanent loan in the amount shown above. The term is assumed to be 15 years with a 30-year amortization and an interest rate of 6.50%. HCD-IIG $6,000,000HCHC will apply for an Infill Infrastructure Grant (IIG) from HCD in the amount shown above. The funds will be provided as a grant to HCHC who will loan them to the project.Federal and State Low Income Housing Tax Credit Equity $45,373,546 (Federal LIHTC Equity) and $10,872,986 (State LIHTC Equity) The project anticipates applying for federal and state tax credits in September 2025. Once awarded those tax credits will be sold to an investor who will contribute equity that will fund the project. The project is expected to receive total net equity pay-ins from the investor limited partner for the tax credits amounts shown above.Deferred Developer Fee and General Partner Equity $300,100HCHC anticipates deferring $300,000 in developer fee and contributing $100 in equity.Total Permanent Financing $97,341,041 Construction Financing
Tax-Exempt & Taxable Private Construction Loans
$49,197,995 (Tax Exempt) $24,984,179 (Taxable)The project will apply for tax exempt bonds in September 2025 and anticipates receiving a taxexempt construction loan in the amount shown above. The term on both loans is assumed to be 26 months with an interest rate of 7.00% on the tax exempt loan and 7.5% on the taxable loan. The loans will be repaid from LIHTC syndication proceeds, AHSC financing, and permanent loan debt.Infill Infrastructure Grant $6,000,000HCHC will apply for an Infill Infrastructure Grant (IIG) from HCD in the amount shown above. The funds will be provided as a grant to HCHC who will loan them to the project.Tax-Credit Equity $14,061,633The project is anticipated to receive net equity pay-ins from the investor limited partner during construction in the amount shown above.Costs Deferred Until Conversion $2,797,134A number of costs will be deferred until after construction is complete and at time of loan closing for the permanent debt. Deferred costs include reserves, TCAC monitoring fees, a portion of the developer fee, and permanent loan closing expenses. The total estimate of costs deferred is shown above.

Deferred Developer Fee & General Partner Equity
$300,100HCHC anticipates deferring $300,000 in developer fee and contributing $100 in equity.Total Construction Period Financing $97,341,041 Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 83 82 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Construction Sources Amount Permanent Sources Amount
Tax-Exempt Private
Construciton Loan 49,197,995 AHSC 25,000,000
Taxable Private Construction
Loan 24,984,179 Tax-Exempt Bank Permanent Loan 9,794,409 Infill Infrastructure Grant 6,000,000 Infill Infrastructure Grant 6,000,000 Tax-Credit Equity 14,061,633 Federal LIHTC Equity 45,373,546 Costs Deferred Until
Conversion 2,797,134 State LIHTC Equity 10,872,986
Deferred Developer Fee &
General Partner Equity 300,100 Deferred Developer Fee & General Partner Equity 300,100 Total $97.3M Total $97.3M
Rental SubsidiesCity of Santa Monica Project-Based Section 8 Vouchers $586,080The project will request 40 project-based Section 8 vouchers (PBV) from the City of Santa Monica for use on 40 units reserved for PSH residents. This operating subsidy is necessary to ensure the project can serve people transitioning from homelessness into PSH and that the project can implement local preferences for lease-up of these units. The contract is anticipated to have a 20-year term. Total PBV overhang for term of contract(20 years) $11,721,600 Above Outdoor space at the Coronel apartments Item 1
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Summary of Notes for Financial Analysis
A detailed proforma with sources and uses, development budget, rental income, and projected cash flow for 55 years is provided in Section 5.3. Assumptions of the proforma financial analysis:Sources• The proforma assumes tax credit pricing of $.94 per federal tax credit and $.88 per state tax credit. • Construction and permanent loan terms are
included in the following section.

Development Budget• Hard costs in the budget are based on a construction cost estimate from Morley Builders for the three sites. • A 10% hard cost contingency is included in
addition to Morley’s cost estimate to account for price escalation between RFP submittal and construction start. • Soft costs are based on the costs of
comparable HCHC projects in Los Angeles County that are currently in predevelopment, under construction, or recently completed. • Land costs are currently assumed to be $0.

HCHC is requesting that the City donate the value of the land through the ground lease. This is critical to project feasibility. If awarded the site, HCHC will conduct an appraisal to determine the value of the land which will be used to demonstrate the City’s land donation as a funding commitment to CTCAC and HCD. • The highest of federal, state or local prevailing
wage will apply for all construction-related labor.
• Capitalized operating reserve is based on
three months of project operating expenses, reserves, and debt service. • Transition reserve is based on one month of
cashflow after debt service less total rental subsidies in Year 20. • Development impact fees are reflective of
recently completed projects.
• The developer fee of $2,500,000 complies
with TCAC/CDLAC and HCD regulations.

Rental Income• The proforma assumes the City will provide 40 PBVs for the project’s 40 PSH units. PBV subsidy rents are based on the Santa Monica Housing Authority’s Current Exception Payment Standard by Bedroom Size. • Rents are determined by TCAC’s 2023
published rent limits for Los Angeles County.
• Utility allowances are determined by the
Santa Monica Housing Authority’s 2023 Utility
Allowance.
• Three two-bedroom units are reserved for
property managers.
• Total rental income includes income from
on-site laundry facilities.

Operating Budget• Expenses are reflective of several comparable HCHC property budgets in Los Angeles County.
• Three on-site managers will support the
properties.
• Expenses include funding for one resident
services coordinator.
• Per City of Santa Monica’s Zero Emission
Building Code, the project will be all electric and does not include any expenses for a gas utility. • The project is pursuing AHSC funds and HCD
requires a replacement reserve of $500 per unit.
• A vacancy rate of 5% is assumed for all rental
income and a vacancy rate of 10% is assumed for all subsidy income to account for the industry trend of higher vacancies among PSH units.

Cash Flow• Initial debt service coverage ratio of 1.15• Income escalator is 2.5% and expense escalator is 3.5%
Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 85 84 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Construction Loan & Permanent Loan Underwriting TermsAs outlined in the Sources and Uses section of the proforma and in Table 5.1, underwriting parameters have been assumed for the project’s loan terms, rates, and repayment schedules. Interest rates are based on current market conditions with some additional cushion. Please note rates can increase or decrease significantly over the course of several years, and the rates at construction loan close may differ from current assumptions. City’s Obligations and ResponsibilitiesHCHC is requesting that the City donate value of the land to the proposed project and a commitment of 40 project based vouchers for the building’s 40 PSH units. These requests are discussed in more detail below.HCHC also asks the City to work together to determine how to mitigate the impact of three public parking lots being converted into affordable housing. There will be short term effects (while the properties are under construction) and longterm effects (if fewer parking spaces are available to the public after construction is complete). Based upon HCHC’s experience with a public parking lot owned by the City of Los Angeles in the Venice community, there are many factors to be considered such as: 1) how much public parking will be replaced; 2) will it be a conventional parking structure or will it take advantage of new parking technology to increase the number of parking spaces; and 3) what source of capital will be used to pay for the public parking. Anticipated Rental SubsidiesHCHC plans to submit a formal request for forty (40) Section 8 Project Based Vouchers from the Santa Monica Housing Authority, with a 20-year contract term. The vouchers are necessary to support the residents of the PSH units and to ensure the City’s list can be used to fill vacant units. After the 20-year contract term, HCHC would request renewal of the contract to continue to serve people experiencing homelessness.If the City is unable to provide Project Based Vouchers, the development will be modified to 100% affordable with no permanent supportive housing units. Without the PBVs, the buildings will not be able to cover operating expenses at the lower rent levels required to house people experiencing homelessness.

Underwriting Assumptions Interest
Rate
Term
(Mos)
Repayment Structure
Construction
Financing
Construction Loan – Tax
Exempt

7.0% 26 At permanent loan closing with
interest
Construction Loan – Taxable 7.5% 26 At permanent loan closing with interest

HCD - IIG
N/A
Federal & State Tax Credit
Equity
Costs Deferred until
Permanent Conversion
Deferred Developer Fee
General Partner Equity
Permanent
Financing
Permanent Loan – Tax
Exempt

6.50% 15 Annual monthly payments with a
30-year amortization period.

HCD – AHSC 3.00% 55 0.42% of loan amount paid
through cash flow, also repaid
through pro rata share of
residual receipts.

HCD - IIG
N/A
Federal Tax Credit Equity
State Tax Credit Equity
Deferred Developer Fee
General Partner Equity
Table 5.1Construction and Permanent Loan Underwriting Terms Item 1
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Ground Lease TermsProposed Structure
Term
The ground lease will be executed at the close of construction financing and extend a minimum of 65 years from when the project is placed in service.

Repayment
The base payment will be $1 per annum. The City will be also be paid annual ground lease payments from its pro rata share of residual receipts. If awarded the RFP, HCHC and the City will commission an appraisal to determine the value of the land. The “value” of land will be donated by the City to the project. The project’s Residual Receipts will be split on a pro rata basis between the City and other public funders based on the value of the financing (not including PBVs) that each public entity contributed. The other public funder that is anticipated to provide significant financing is HCD.

Payment Schedule
Annual Residual Receipts payments will be made each year for the term of the ground lease. A projected 65-year payment schedule is included with the cash flow proforma.

Table 5.2Proposed Ground Lease Terms
Term (Mos)Repayment Structure
RFP Due Date Sep-23 Proposal Awarded Feb-24 Enter into DDA Aug-24 Secure City of Santa Monica PBV Commitment Dec-24 Secure land use entitlements Jan-25 Apply to HCD-AHSC Feb-25 Apply to HCD-IIG July-25 HCD-AHSC Awards Announced Aug-25 Apply for 4% Tax Credits Sep-25 HCD-IIG Awards Announced Dec-25 4% Tax Credit Award Dec-25 Issuance of Building and Grading Permits March-26 Close Construction Financing and Enter into Ground Lease May-26 Commence Construction May-26 Construction Completion Dec-27 Table 5.3Financing Timeline
Staff Position Title Target Population Agency Location (A) FTE (B)
Annual
Salary +
Benefits
(A) x (B)
= Total
Cost
Funding
Source
Clinical Case
Manager PSH
The People
Concern On-Site 1 $76,200 $76,200 DHS
Case Manager (BA) PSH The People Concern On-Site 1 $63,500 $63,500 DHS Program Manager PSH The People Concern On-Site 0.2 $88,900 $17,780 DHS Director PSH The People Concern On-Site 0.1 $115,570 $11,557 DHS Resident Services
Coordinator
General
Affordable HCHC On-Site 1 $63,500 $63,500 Cashflow
Total Staffing Costs: $232,537
Table 5.4Services Staffing & Budget
Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 87 86 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Financial ContingenciesFor the project to be feasible as well as competitive in funding rounds, the development will need to leverage the value of the land as a donation. Proposed Repayment StructureAnnual residual receipts payments can be made to the City each year for the term of the ground lease. Proposed Ground Lease Term, Structure, and Payment ScheduleIn order to build the proposed project, HCHC is requesting that the City donate the full value of the land for the development of the affordable housing. The donation of the land is critical to the project’s feasibility. Exact ground lease terms are proposed in Table 5.2.

Financing TimelineAs described in the preliminary schedule of performance, the financing timeline includes securing City of Santa Monica PBVs and applying to AHSC, IIG and CTCAC/CDLAC. If the proposal is awarded in February 2024, the project team hopes to secure PBVs by December 2024. The team will apply for AHSC funding in February 2025. In order to apply for AHSC funding the project will need to be fully entitled and have a PBV commitment from the City. The project will apply for IIG funds in July 2025 and CTCAC/CDLAC for 4% tax credits, state tax credits, and tax-exempt bonds in September 2025. AHSC awards will likely be announced August 2025 while CTCAC/CDLAC and IIG awards will be announced in Dec 2025. The project anticipates closing on construction financing and commencing construction in May 2026. These dates are outlined in Table 5.3.

Above Murals at the Florence Mills Apartments reference local music history Item 1
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Other Expenses:

Total
Cost
Funding
Source
Training $2,400 DHSSupplies $14,400 DHSMileage/Parking $2,400 DHS Client
Personal/Medical $8,000 DHS
AdministrativeOverhead $21,600 DHS
Life Skills
Classes $10,000 Cashflow
Other Expenses Total: $58,800Total Staffing Costs: $232,537Total Services Budget: $291,337 Sources:

DHS $217,837
Cashflow $73,500
Services To Be Offered & BudgetThe proposed project includes both general affordable units and PSH units. The People Concern (TPC), will be the lead supportive service provider for the residents living in the project’s 40 PSH units and HCHC will provide services for the remaining 87 low income, general affordable units. The services and staffing are detailed in Tables 5.5 to the right. The 40 PSH units will be served by two full-time case managers, including one clinical case manager. These staff will also have oversight from a part-time Program Manager and Director. All the PSH units will be located on the Euclid Street site, which will have ample office and meeting space for staff serving the PSH units. HCHC will provide a full-time on-site resident services coordinator to serve the 87 general affordable units across the three buildings. Additionally, the budget contains funding for supplies, mileage, and training for staff, and administration costs. HCHC will provide life skills classes to the buildings’ residents which will include GED preparation, resume workshops, and other topics. The PSH services will be funded through the Los Angeles County Department of Health Services (DHS). Included as Appendix H with this submittal is a services funding commitment from DHS. The services for non-PSH households will be funded through project cashflow.

Table 5.5Full Services Budget
Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 89 88 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal

5.2 Cost Control StrategiesStreamlining Hard CostsWe are realistic about the construction cost impact of projects in a highly regulated and compact city like Santa Monica; addressing this reality begins in the design process and continues through construction. In partnership with Morley Builders, our pre-construction Cost Estimating partner, we have developed a series of strategies to arrive at an economical project design with a high degree of cost-certainty. At each phase of the project, we have studied opportunities to shorten the construction schedule, lessening both neighborhood impact and project cost. That strategy begins by rightsizing the project itself: minimizing Unit sizes and shortening the overall height. Units neatly stack, and Construction types are clearly divided between Type I for Parking and Common Spaces and Type III for Residential areas. We have employed standardized building systems, from repeated Unit Plan designs to prefabricated wall sections, to ensure the most efficient approach possible. To further minimize time on site, Morley Builders advises the contractor to apply for Construction Variances that would allow for leniency with Santa Monica’s limited hauling and site work hours.Furthermore, our proposals are a full level shorter than State Density Bonus law would allow. At Euclid and Fourteenth Streets, this places the highest level of occupancy below 53’-0”, allowing the project to bypass cumbersome and expensive Tall Building requirements as listed by CBC Section 403, which would complicate egress, fire ratings, and mechanical ventilation requirements. Finally, to avoid inflated Staging costs and expanded General Conditions, our team aims to complete construction in one phase.

Streamlining Soft CostsDespite recent pandemic-related challenges, HCHC has maintained financial integrity for all of its projects in predevelopment and construction. This is primarily due to rigorous review of predevelopment budgets and soft cost expenses. Soft cost control strategies for this proposal will be achieved by implementing a one-phase development. Cost containment from a one phase development will be achieved as follows:• Minimization of construction mobilization and labor expenses.
• Economies of scale of soft costs that are
relatively fixed regardless of the size of the project including, title and escrow costs, legal costs for lenders and HCHC, bond financing costs, audit costs, market studies, and several consulting fees. • Payment of a single developer fee of
$2,500,000.
• Lower fees for inspections by lenders and
investors during construction.
• Streamlined design effort relying on
repeated materials, construction details, and engineering strategies across all sites.

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Permanent Sources Per Unit Interest Rate Amo (in yrs) % Notes Permanent Loan 9,794,409 $ 75,342 $ 6.50% 30 10.06% 15 year term HCD - MHP - $ - $ 3.00% 55 0.00%
HCD - AHSC 25,000,000 $ 192,308 $ 3.00% 55 25.68%CalHFA MIP - $ - $ 3.00% 55 0.00%Santa Monica - Ground Lease - $ - $ 3.00% 55 0.00%LACDA - AHTF/HOME - $ - $ 3.00% 55 0.00%City of Santa Monica - $ -$ 4.00% 55 0.00%HCD - IIG 6,000,000 $ 46,154 $ 6.16%FHLBSF - AHP - $ -$ 0.00%Deferred Developer Fee 300,000 $ 2,308 $ 0.31%GP Equity 100 $ 1 $ 0.00%GP Contribution (Dev Fee) - $ - $ 0.00%Federal Tax Credit Equity 45,373,546 $ 349,027 $ 46.61%State Tax Credit Equity 10,872,986 $ 83,638 $ 11.17%TOTAL 97,341,041 $ 748,777 $ Surplus/(Gap): 0 $ Construction Sources Per Unit Interest Rate Term (Months) % NotesConstruction Loan - Tax Exempt 49,197,995 $ 378,446 $ 7.00% 26 50.54% Construction Loan - Taxable 24,984,179 $ 192,186 $ 7.50% 26 25.67%HCD - MHP - $ - $ 26 0.00%HCD - AHSC - $ - $ 26 0.00%CalHFA MIP - $ - $ 26 0.00%Santa Monica - Ground Lease - $ - $ 0.00% 26 0.00%LACDA - AHTF/HOME - $ -$ 3.00% 26 0.00%City of Santa Monica - $ -$ 4.00% 26 0.00%HCD - IIG 6,000,000 $ 46,154 $ 26 6.16%FHLBSF - AHP - $ -$ 26 0.00%Costs Deferred Until Conversion 2,797,134 $ 21,516 $ 2.87%Deferred Developer Fee 300,000 $ 2,308 $ GP Equity 100 $ 1 $ 0.00%GP Contribution (Dev Fee) - $ - $ State + Federal Tax Credit Equity 14,061,633 $ 108,166 $ 14.45% TOTAL 97,341,041 $ 748,777 $ Surplus/(Gap) - $ LIHTC EQUITY PAY-IN SCHEDULE DEVELOPER FEE PAY-IN SCHEDULE DATE Closing 10.0% 5,624,653 $ 30.0% 660,000 $ 25% Construction Completion 0.0% - $ 0.0% - $ 50% Construction Completion 15.0% 8,436,980 $ 5.0% 110,000 $ 75% Construction Completion 0.0% - $ 0.0% - $ 100% Consturction Completion 0.0% - $ 0.0% -$ Conversion 74.8% 42,084,899 $ 60.5% 1,330,000 $ 8609 0.2% 100,000 $ 4.5% 100,000 $ TOTAL 100.0% 56,246,532 $ 100.0% 2,200,000 $ Deferred Fee 300,000 $
TOTAL 2,500,000 $ Closing25% Construction Completion50% Construction Completion75% Construction Completion100% Consturction CompletionConversion8609TOTAL Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 91 90 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal

5.3 Annotated Pro Forma PROJECT SUMMARY: Project Name: Santa Monica RFP INPUTS AND ASSUMPTIONS INPUTTax Credits 4.00%TCAC Housing Type Large FamilyQualified Census Tract ("QCT") NoDifficult to Develop Area ("DDA") YesResource Area High ResourceCity of Los Angeles NoAre UMRs Applicable? YesFederal Tax Credit Pricing $0.94State Tax Credit Pricing $0.88 Construction Term
Months of Construction 20Months until Conversion after Construction Completion 6Total Months from startof construction through conversion 26 Development Budget
Project Name: Santa Monica RFP
Square Footage: 100% 0%
Total Cost Per Unit Residential Commercial Deferred Eligible Basis Acquisition Cost
Land Cost $0 $0 $0 $0Acquisition Interest Reserve $0 $0 $0 $0 Acquisition Loan Fees $0 $0 $0 $0Predevelopment Interest Reserve $100,000 $769 $100,000 $0 $100,000 Predevelopment Loan Fees $15,000 $115 $15,000 $0 $15,000 Predev. Insurance $0 $0 $0 $0Predev. Taxes $0 $0 $0 $0Other $0 $0 $0 $0Other $0 $0 $0 $0Legal - Acquisition/PreDev $0 $0 $0 $0 Title and Recording - Acquisition/Predev $0 $0 $0 $0
Subtotal: $115,000 $885 $115,000 $0 $0 $115,000
Construction Costs Months of Construction 20
Demolition $0 $0 $0Site Work 7,349,254 $ $56,533 $7,349,254 $0 $7,349,254 Parking 10,302,059 $ $79,247 $10,302,059 $10,302,059
Offsite Work (eligible) $0 $0 $0 $0
Offsite Work (ineligible) $0 $0 $0Env. Remediation $0 $0 $0Structures Direct Construction Cost $58,675,814 41,024,500 $ $315,573 $41,024,500 $0 $41,024,500Contractor Contingency $0 $0 $0 $0 $0General Requirements 7.00% $4,107,307 $31,595 $4,107,307 $4,107,307 Contractor Overhead 4.00% $2,347,033 $18,054 $2,347,033 $2,347,033Contractor Profit 3.00% $1,760,274 $13,541 $1,760,274 $1,760,274Performance and Payment Bond 1.25% $733,448 $5,642 $733,448 $733,448 General Liability Insurance Construction Contract 1.25% $733,448 $5,642 $733,448 $733,448 $68,357,323 $525,826 $0
Hard Cost Contingency (Owner) 10.00% $6,835,732 $52,583 $6,835,732 $0 $6,835,732 Subtotal: $75,193,055 $578,408 $75,193,055 $0 $0 $75,193,055 Architecture & Engineering
Architectural Design and Supervision % of Hard Cost: 4.50% $3,383,687 $26,028 $3,383,687 $0 $3,383,687 Reimbursables $50,000 $385 $50,000 $0 $50,000Engineering Per Unit $2,000 $260,000 $2,000 $260,000 $0 $260,000 Subtotal: $3,693,687 $28,413 $3,693,687 $0 $0 $3,693,687 Construction Loan Costs
Construction Loan Interest - TEB $4,477,018 $4,477,000 $34,438 $4,477,000 $0 $2,954,820Construction Loan Interest - Taxable $2,435,957 $2,436,000 $18,738 $2,436,000 $1,607,760Lender Origination Fees Fee %: $741,822 $742,000 $5,708 $742,000 $0 $742,000 Lender Expenses 1.000% $50,000 $385 $50,000 $0 $50,000
Title/Recording/Escrow $150,000 $1,154 $150,000 $0 $150,000 Taxes Tax Rate: 1.25% $0 $0 $0 $0 $0Insurance Per Unit $7,700 $1,001,000 $7,700 $1,001,000 $0 $1,001,000 Other: $0 $0 $0 $0 $0Other: $0 $0 $0 $0
Subtotal: $8,856,000 $68,123 $8,856,000 $0 $0 $6,505,580 Perm Loan Costs
Loan Fees Fee %: 1.000% $97,944 $753 $97,944 $0 $97,944Title/Recording/Escrow - Perm $15,000 $115 $15,000 $0 $15,000 Subtotal: $112,944 $869 $112,944 $0 $112,944 $0
Legal
Borrower - Construction $50,000 $385 $50,000 $0 $50,000 Borrower - Partnership Organization $5,000 $38 $5,000 $0 Borrower - Perm Closing $20,000 $154 $20,000 $0 $20,000 Borrower - Syndication $50,000 $385 $50,000 $0
Legal - Construction Lender $70,000 $538 $70,000 $0
Legal - Permanent Lender $20,000 $154 $20,000 $0 $20,000Other $0 $0 $0 $0 Subtotal: $215,000 $1,654 $215,000 $0 $40,000 $50,000
Reserves $0 $0 $0 $0
Transit Pass Reserve $0 $0 $0 $0 $0Replacement Reserve $0 $0 $0 $0 $0 Capitalized Operating Reserve $552,447 $4,250 $552,447 $0 $552,447 Transition Reserve $607,173 $4,671 $607,173 $0 $607,173 Subtotal: $1,159,620 $8,920 $1,159,620 $0 $1,159,620 $0 Item 1
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Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 93 92 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Development Budget
Project Name: Santa Monica RFP
Square Footage: 100% 0%
Total Cost Per Unit Residential Commercial Deferred Eligible Basis TCAC and CDLAC and other Financing Fees
TCAC Application Fee $2,000 $15 $2,000 $0
TCAC Reservation Fee 0.10% $48,270 $371 $48,270 $0TCAC Monitoring Fee Per Unit $410 $52,070 $401 $52,070 $0 $52,070 CDLAC Application and Filing Fees $17,219 $132 $17,219 $0 CDIAC Fee $5,000 $38 $5,000 $0Issuer Application Fee $3,000 $23 $3,000 $0 Issuer Fee - Upfront $122,995 $946 $122,995 $0
Issuer Fee - Upfront for Construction $49,198 $378 $49,198 $0Trustee Fee $6,250 $48 $6,250 $0Issuer Financial Advisor $60,000 $462 $60,000 $0Bond Counsel $55,000 $423 $55,000 $0Trustee Legal Fees $5,000 $38 $5,000 $0 Misc Bond Issuance Costs $10,000 $77 $10,000 $0
Bond Issuance Contingency Costs of Bond Issuance $348,662 $15,000 $115 $15,000 $0 LACDA Fees $0 $0 $0 $0LAHD Fees $0 $0 $0 $0Other $0 $0 $0 $0 A Subtotal: $451,002 $3,469 $451,002 $0 $52,070 $0
Other Costs
Development Impact Fees Per Unit $6,000 $780,000 $6,000 $780,000 $0 $780,000 Local Permits and Fees / Utility Fees Rate: 3.00% $2,050,720 $15,775 $2,050,720 $0 $2,050,720 Furnishings $250,000 $1,923 $250,000 $0 $250,000
Accounting - Audit/Cost Cert $30,000 $231 $30,000 $0
Deputy Inspections/Testing $3,000 $390,000 $3,000 $390,000 $0 $390,000 Construction Consultants (Owner's Rep) $6,500 $130,000 $1,000 $130,000 $0 $130,000 LEED/Title 24/CASp Consultants $75,000 $577 $75,000 $0 $75,000 Survey and Soils $50,000 $385 $50,000 $0 $50,000
Entitlements / CEQA Consultants $50,000 $385 $50,000 $0Appraisal $10,000 $77 $10,000 $0 $10,000 Market Study $15,000 $115 $15,000 $0 $15,000
Environmental Audit (Phase I/II/Toxic Report) $60,000 $462 $60,000 $0 $60,000Relocation $0 $0 $0 $0 $0 Marketing/Lease-up Expense Cost/door: $700 $88,900 $684 $88,900 $0 Lease Up Fee Cost/door: $250 $31,750 $244 $31,750
Soft Cost Contingency $16,967,251 5.00% $848,363 $6,526 $848,363 $0 $848,363 Utility Connection Fees $110,000 $846 $110,000 $0 $110,000 Other LADWP Fees $0 $0 $0 $0 $0Other LAHD Wage Monitor $0 $0 $0 $0 $0 Subtotal: $4,969,732 $38,229 $4,969,732 $0 $0 $4,769,082 Developer Fees & Costs
Developer Fee $2,500,000 $19,231 $2,500,000 $0 $2,500,000 Syndication Consultant $75,000 $577 $75,000 $0 $2,500
Admin and Organizational $0 $0 $0 $0
Subtotal: $2,575,000 $19,808 $2,575,000 $0 $2,500 $2,500,000 TOTAL: $97,341,041 $748,777 $97,341,041 $0 $1,367,134 $92,826,405 Rental Income
Project Name: Santa Monica RFP
#REF! #REF!
Avg. Affordability: 49.53%
TCAC 9% Score: 50

UNIT MIX
AMI 0-Bed 1-Bed 2- Bed 3-Bed 4-Bed Total % of Total
20% - - - - - 0%30% - 40 - - 40 31%40% - - - - - - 0%50% - - - 26 - 26 20%60% 13 8 27 - - 48 38%70% - - 7 6 13 10% 80% - - - - - - 0%
Manager's Unit(s) - - 3 - - 3Total: TCAC 13 48 37 32 - 130 % of Total (no mgr) 10.24% 37.8% 26.8% 25.2% 0.00%Special Needs - - - - - - 0.0% Gen. Affordable - - - 0.0%PBV -PBVASH 0 -

INCOME SCHEDULE
Units
Gross
Monthly
Rent/Unit
Utility
Allowance
Net Monthly
Rent/Unit
Total Montly
Net Income
Total Annual
Net Income
HUDassisted
Unit
Subsidy
Income
Net Monthly
Subsidy
Income
Monthly Subsidy
Income
Annual
Subsidy
Income
Tier 1: 20% AMI Level Santa Monica Santa Monica PBV
0-Bed - 441 $ 74$ 367$ -$ -$ - 1512 1,512 $ - -
1-Bed - 473 $ 98$ 375$ -$ -$ - 1930 1,930 $ - -
2-Bed - 567 $ 134$ 433$ -$ -$ - 2640 2,640 $ - -
3-Bed - 655 $ 152$ 503$ -$ -$ - 3366 3,366 $ - - $$$$ $ - - -
Tier 2: 30% AMI Level Santa Monica PBV
0-Bed - 661 $ 74$ 587$ -$ -$ - 1,512 851 - - 1-Bed 40 709 $ 98$ 611$ 24,440$ 293,280$ 40 1,930 1,221 48,840 586,080 2-Bed - 851 $ 134$ 717$ -$ -$ - 2,640 1,789 - -
3-Bed - 983 $ 152$ 831$ -$ -$ - 3,366 2,383 - -
, $$ , $$ $ (, )
40 293,280 586,080
Tier 3: 40% AMI Level
0-Bed - 883 $ 74$ 809$ -$ -$
1-Bed - 946 $ 98$ 848$ -$ -$ 2-Bed - 1,135 $ 134$ 1,001$ -$ -$ 3-Bed - 1,311 $ 152$ 1,159$ -$ -$ , $$ , $$ $ , ,
- - -
Tier 4: 50% AMI Level
0-Bed - 1,103 $ 74$ 1,029$ -$ -$ 1-Bed - 1,182 $ 98$ 1,084$ -$ -$ 2-Bed - 1,418 $ 134$ 1,284$ -$ -$ 3-Bed 26 1,639 $ 152$ 1,487$ 38,662$ 463,944$ , $$ , $$ $ , ,
26 463,944 -
Tier 5: 60% AMI Level
0-Bed 13 1,324 $ 74$ 1,250$ 16,250$ 195,000$ 1-Bed 8 1,419 $ 98$ 1,321$ 10,568$ 126,816$ 2-Bed 27 1,702 $ 134$ 1,568$ 42,336$ 508,032$ 3-Bed - 1,967 $ 152$ 1,815$ -$ -$ , $$ , $$ $ , ,
48 829,848 -
Tier 6: 70% AMI Level
0-Bed - 1,545 $ 74$ 1,471$ -$ -$
1-Bed - 1,655 $ 98$ 1,557$ -$ -$ 2-Bed 7 1,986 $ 134$ 1,852$ 12,964$ 155,568$ 3-Bed 6 2,295 $ 152$ 2,143$ 12,858$ 154,296$ 4-Bed - 2,825 $ 107$ 2,718$ -$ -$ 13 309,864 -
Tier 6: 80% AMI Level
0-Bed - 1,766 $ 74$ 1,692$ -$ -$
1-Bed - 1,892 $ 98$ 1,794$ -$ -$ 2-Bed - 2,270 $ 134$ 2,136$ -$ -$ 3-Bed - 2,623 $ 152$ 2,471$ -$ -$ 4-Bed - 3,229 $ 107$ 3,122$ -$ -$ - - -
TOTAL INCOME 1,896,936 586,080

MISCELLANEOUS INCOME PER-UNIT

MONTHLY

TOTAL MONTHLY
TOTAL ANNUAL 11,721,600
Laundry/Vending 5 $ 650$ 7,800$
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Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 95 94 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Operating Budget
Project Name: Santa Monica RFP
INCOME
Scheduled Gross Income 1,896,936 $
Operating Subsidy Premium 586,080 $
Miscellaneous Income 7,800 $
Vacancy Loss (Rental Income) 5.00% (94,847) $ Vacancy Loss (Operating Subsidy) 10.00% (58,608) $ Vacancy Loss (Miscellaneous Income) 5.00% (390) $ EFFECTIVE GROSS INCOME 2,336,971$ EXPENSES - RESIDENTIAL Per Unit
Units 130
Admninstrative
Advertising 24 $ 3,141 $
Legal 87$ 11,331 $ Accounting/Audit 185 $ 24,068 $ Security 142 $ 18,481 $ Misc. Admin/Telephone 238 $ 30,916 $ Total Administrative 87,937$
Utilities
Electricity 1,000 $ 130,000 $
Gas - $ - $
Cable & Internet 155 $ 20,150 $
Sewer 360 $ 46,772 $ Water 360 $ 46,772 $ Total Utilities 243,694$ Payroll/Payroll Taxes
Maintenance Payroll 449 $ 58,400 $
On-Site Manager 1,269 $ 3 165,000 $
Payroll Taxes/Benefits 841 $ 109,360 $ Total Payroll/Payroll Taxes 332,760$ Insurance 1,600$ 208,000$
Real Estate Taxes/Assessments 96$ 12,500$ Maintenance
Painting 186 $ 24,140 $
Repairs 302 $ 39,238 $ Trash Removal 237 $ 30,757 $ Exterminating 92 $ 12,022 $ Grounds 122 $ 15,896 $ Elevator 130 $ 16,936 $ Misc. Expenses 417 $ 54,156 $ Total Maintenance 193,145$
Replacement Reserve 500$ 65,000$
Management Fee (6% of Gross Effective Income) 1,079$ per unit 140,218$ Other
Services 77 $ 10,000 $ Ground Lease Payment 0 $ 1 $
Other: Resident Service Coordinator 385 $ 50,000 $
Other:Other: Business Licenses and Fee 54 $ 7,046 $
Other: Monitoring Fees 32 $ 4,100 $
Annual Issuer Fee/Trustee/Admin Fee (issuer s 58$ 7,500 $ Total Other 78,648$
TOTAL EXPENSES - RESIDENTIAL PUPY Total
Including Reserves 10,476$ 1,361,901$
Without reserves and services 9,371$ 1,218,253$
Without taxes, reserves, and services 9,275$ 1,205,753$ UMR REQUIRED DEBT SERVICE 0.42% 105,000
NET AVAILABLE INCOME FOR PERMANENT LOAN 870,070$
Below The Line
Asset Management Fee - LP 10,000 $
Asset Management Fee - GP 15,000 $
LIHTC Calcs
Project Name: Santa Monica RFP YES
#REF! #REF! NO
Threshold Basis Calculation:Basis Limits Units 9% 4% Threshold Basis Studio 13 341,094 $ 341,094 $ 4,434,222 $
1-Bed 48 393,278 $ 393,278 $ 18,877,344 $ 2-Bed 34 474,400 $ 474,400 $ 16,129,600 $ 3-Bed 32 607,232 $ 607,232 $ 19,431,424 $ 4-Bed 0 676,494 $ 676,494 $ - $ Manager's 3 474,400 $ 474,400 $ 1,423,200 $
Total: Unadjusted Threshold Basis 60,295,790 $
Threshold Basis Limit IncreasesPrevailing Wage 20% Yes 12,059,158 $ Project Labor Agreement 5% No - $
Parking Beneath Units (no tuck under) 10% No - $
Day-Care Center 2% No - $
100% Special needs 2% No - $
Special Features (up to 10% Choose options below.) 0% - $ Onsite renewable energy of 50% of annual use 5% No
Onsite renewable energy of 75% of annual use 2% NoNew construction 45% more efficient than current standards 4% NoRehab projects 80% more energy efficient 4% No Irrigated only with reclaimed water, grey water, or rainwater 1% No Community Gardens, at least 60 sq. ft. for units 1% No
Environmentally friendly flooring in kitchens, living rooms, and bathrooms(no VOC backing). See application 1% No Environmentally friendly flooring in all common areas. See application 2% No Meet US EPA Indoor Air Plus Program 2% No
Seismic Upgrading (lesser of 15% of unadjusted eligible basis or actual costs)(enter actual costs) 15% - $ Local Development Impact Fees95% of upper floor units are elevator accessible 10% Yes 6,029,579 $ Type I Construction: 95% of development is Type I construction 15% No - $ Type III Construction: 95% of development is Type III or Type I/Type III Construction 10% Yes 6,029,579 $ 9% Threshold Basis Limit for 2-bedroom <= $400K and in High or Highest Resource Opportunity Map Area 10% No - $ + 1% basis for each 1% of units income qualified to 50%-36% AMI 20% Yes 12,344,020 $ + 2% basis for each 1% of units income qualified to 35% AMI and below 63% Yes 37,981,600 $ Total Threshold Basis Limit Increases 134,739,726 $ FEDERAL TAX CREDITS ACQ. CONST./ REHAB TOTAL
TOTAL ELIGIBLE COSTS 92,826,405 $ 92,826,405 $
Less:

Business Energy Tax Credits (Res. Portion) - $ - $
Non-Eligible (Federal/Grant Financing) - $ - $
ELIGIBLE BASIS 92,826,405 $ 92,826,405 $
THRESHOLD BASIS LIMIT 134,739,726 $ REQUESTED ELIGIBLE BASIS 92,826,405 $ 92,826,405 $ EquLESS: VOLUNTARY REDUCTION - $ - $
TOTAL REQUESTED UNADJUSTED ELIGIBLE BASIS 92,826,405 $ 92,826,405 $ QCT, DDA or OTHER HIGH COST ADJUSTMENT 130%ADJUSTED ELIGIBLE BASIS 120,674,327 $ 120,674,327 $ APPLICABLE FRACTION 100%QUALIFIED CREDIT BASIS 120,674,327 $ 120,674,327 $ CREDIT RATE 4.00%MAXIMUM ANNUAL CREDIT AMOUNT 4,826,973 $ 4,826,973 $ MAXIMUM TOTAL CREDIT AMOUNT 48,269,730 $ 48,269,730 $ 97,341,041 $ 41,094,509 $ 45,373,546 $ 86,468,055 $ 10,872,986 $ 12,355,666 $ Credit Rate 13% 30%
- $ 27,847,922 $ 12,355,666 $
STATE TAX CREDIT EQUITY - $ 10,872,986 $ 10,872,986 $
STATE TAX CREDITS (if applicable)Total Development CostNon-Tax Credit SourcesFederal Tax Credit EquityNon-State Tax Credit SourcesRemaining NeedState Tax Credits NeededMAXIMUM TOTAL CREDIT AMOUNT Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 64
Attachment: Written Comments (6933 : Written Comments)
Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 97 96 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Cashflow
Project Name: Santa Monica RFP
Inflation
Rental Income:

Resident Rent 2.50%
Subsidy Rent 2.50%
Laundry Income 2.50%
Gross Income Vacancy Loss:

Resident Rent 5.00%Subsidy Rent 10.00%
Laundry Income 5.00%
Total Vacancy Loss
Gross Effective IncomeOperating Expenses:

Management Fee 3.50%
Replacement Reserve 0.00%
Real Estate Taxes 2.00%Issuer Fee 0.00%Additional Fees 3.50%LACDA Monitoring Fee 0.00% Services Fee 2.50%Other Operating Expenses 3.50%
Total Expenses
Cashflow before Debt Service
Ratio/Rate
HCD Payment 0.42%
Net Income Available for Debt Service
Permanent Loan 1.15
Combined DSCR
Cashflow after debt serviceFees
LP Management Fe 3.50%
GP Management Fee 3.50%
Def. Dev.Fee 300,000
Remaining dev fee
Cashflow for distribution
Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 2,311,232 2,369,013 2,428,238 2,488,944 2,551,168 2,614,947 2,680,321 2,747,329 2,816,012 2,886,412 2,958,573 3,032,537 3,108,351 3,186,059 3,265,711 3,347,354 3,431,037 714,082 731,934 750,232 768,988 788,212 807,918 828,116 848,819 870,039 891,790 914,085 936,937 960,360 984,369 1,008,979 1,034,203 1,060,058 9,504 9,741 9,985 10,234 10,490 10,752 11,021 11,297 11,579 11,869 12,165 12,469 12,781 13,101 13,428 13,764 14,108 3,034,817 3,110,688 3,188,455 3,268,166 3,349,871 3,433,617 3,519,458 3,607,444 3,697,630 3,790,071 3,884,823 3,981,943 4,081,492 4,183,529 4,288,118 4,395,321 4,505,204 (115,562) (118,451) (121,412) (124,447) (127,558) (130,747) (134,016) (137,366) (140,801) (144,321) (147,929) (151,627) (155,418) (159,303) (163,286) (167,368) (171,552) (71,408) (73,193) (75,023) (76,899) (78,821) (80,792) (82,812) (84,882) (87,004) (89,179) (91,408) (93,694) (96,036) (98,437) (100,898) (103,420) (106,006) - - - - - - - - - - - - - - - - -
(475) (487) (499) (512) (525) (538) (551) (565) (579) (593) (608) (623) (639) (655) (671) (688) (705) (187,445) (192,131) (196,934) (201,858) (206,904) (212,077) (217,379) (222,813) (228,383) (234,093) (239,945) (245,944) (252,093) (258,395) (264,855) (271,476) (278,263) 2,847,372 2,918,557 2,991,521 3,066,309 3,142,966 3,221,541 3,302,079 3,384,631 3,469,247 3,555,978 3,644,878 3,735,999 3,829,399 3,925,134 4,023,263 4,123,844 4,226,940 184,641 191,103 197,792 204,714 211,879 219,295 226,971 234,915 243,137 251,646 260,454 269,570 279,005 288,770 298,877 309,338 320,164 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 14,646 14,939 15,237 15,542 15,853 16,170 16,493 16,823 17,160 17,503 17,853 18,210 18,574 18,946 19,325 19,711 20,105 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 80,519 83,337 86,253 89,272 92,397 95,631 98,978 102,442 106,027 109,738 113,579 117,555 121,669 125,927 130,335 134,897 139,618 - - - - - - - - - - - - - - - - -
12,184 12,489 12,801 13,121 13,449 13,785 14,130 14,483 14,845 15,216 15,597 15,987 16,386 16,796 17,216 17,646 18,087 1,403,106 1,452,215 1,503,042 1,555,649 1,610,097 1,666,450 1,724,776 1,785,143 1,847,623 1,912,290 1,979,220 2,048,493 2,120,190 2,194,397 2,271,200 2,350,692 2,432,967 1,767,595 1,826,582 1,887,626 1,950,799 2,016,175 2,083,831 2,153,847 2,226,306 2,301,292 2,378,894 2,459,203 2,542,314 2,628,324 2,717,335 2,809,453 2,904,784 3,003,442 1,079,777 1,091,975 1,103,895 1,115,510 1,126,792 1,137,709 1,148,232 1,158,325 1,167,955 1,177,084 1,185,675 1,193,686 1,201,075 1,207,799 1,213,810 1,219,060 1,223,499 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 974,777 986,975 998,895 1,010,510 1,021,792 1,032,709 1,043,232 1,053,325 1,062,955 1,072,084 1,080,675 1,088,686 1,096,075 1,102,799 1,108,810 1,114,060 1,118,499742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888 742,888

1.27 1.29 1.30 1.32 1.33 1.34 1.35 1.37 1.38 1.39 1.40 1.41 1.42 1.42 1.43 1.44 1.44 231,889 244,087 256,007 267,622 278,904 289,821 300,344 310,437 320,067 329,196 337,787 345,798 353,187 359,911 365,922 371,172 375,611 13,168 13,629 14,106 14,600 15,111 15,640 16,187 16,753 17,340 17,947 18,575 19,225 19,898 20,594 21,315 22,061 22,833 19,752 20,443 21,159 21,900 22,666 23,459 24,280 25,130 26,010 26,920 27,862 28,838 29,847 30,891 31,973 33,092 34,250 - - - - - - - - - - - - - - - - -
198,969 210,014 220,742 231,123 241,127 250,723 259,876 268,554 276,717 284,329 291,349 297,735 333,289 339,317 344,607 349,111 352,778 Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 65
Attachment: Written Comments (6933 : Written Comments)
Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 99 98 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Cashflow
Project Name: Santa Monica RFP
Inflation
Rental Income:

Resident Rent 2.50%
Subsidy Rent 2.50%
Laundry Income 2.50%
Gross Income Vacancy Loss:

Resident Rent 5.00%Subsidy Rent 10.00%
Laundry Income 5.00%
Total Vacancy Loss
Gross Effective IncomeOperating Expenses:

Management Fee 3.50%
Replacement Reserve 0.00%
Real Estate Taxes 2.00%Issuer Fee 0.00%Additional Fees 3.50%LACDA Monitoring Fee 0.00% Services Fee 2.50%Other Operating Expenses 3.50%
Total Expenses
Cashflow before Debt Service
Ratio/Rate
HCD Payment 0.42%
Net Income Available for Debt Service
Permanent Loan 1.15
Combined DSCR
Cashflow after debt serviceFees
LP Management Fe 3.50%
GP Management Fee 3.50%
Def. Dev.Fee 300,000
Remaining dev fee
Cashflow for distribution
Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39 Year 40 Year 41 Year 42 3,516,813 3,604,734 3,694,852 3,787,223 3,881,904 3,978,951 4,078,425 4,180,386 4,284,896 4,392,018 4,501,818 4,614,364 4,729,723 4,847,966 4,969,165 5,093,394 5,220,729 1,086,560 1,113,724 1,141,567 1,170,106 1,199,358 1,229,342 1,260,076 1,291,578 1,323,867 1,356,964 1,390,888 1,425,660 1,461,302 1,497,834 1,535,280 1,573,662 1,613,004 14,461 14,822 15,193 15,573 15,962 16,361 16,770 17,189 17,619 18,060 18,511 18,974 19,448 19,934 20,433 20,943 21,467 4,617,834 4,733,279 4,851,611 4,972,902 5,097,224 5,224,655 5,355,271 5,489,153 5,626,382 5,767,041 5,911,217 6,058,998 6,210,473 6,365,735 6,524,878 6,688,000 6,855,200 (175,841) (180,237) (184,743) (189,361) (194,095) (198,948) (203,921) (209,019) (214,245) (219,601) (225,091) (230,718) (236,486) (242,398) (248,458) (254,670) (261,036)(108,656) (111,372) (114,157) (117,011) (119,936) (122,934) (126,008) (129,158) (132,387) (135,696) (139,089) (142,566) (146,130) (149,783) (153,528) (157,366) (161,300) - - - - - - - - - - - - - - - - -
(723) (741) (760) (779) (798) (818) (839) (859) (881) (903) (926) (949) (972) (997) (1,022) (1,047) (1,073) (285,220) (292,350) (299,659) (307,150) (314,829) (322,700) (330,767) (339,037) (347,512) (356,200) (365,105) (374,233) (383,589) (393,178) (403,008) (413,083) (423,410) 4,332,614 4,440,929 4,551,953 4,665,751 4,782,395 4,901,955 5,024,504 5,150,116 5,278,869 5,410,841 5,546,112 5,684,765 5,826,884 5,972,556 6,121,870 6,274,917 6,431,790 331,370 342,968 354,972 367,396 380,255 393,564 407,338 421,595 436,351 451,623 467,430 483,790 500,723 518,248 536,387 555,161 574,591 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,00020,508 20,918 21,336 21,763 22,198 22,642 23,095 23,557 24,028 24,508 24,999 25,499 26,009 26,529 27,059 27,600 28,153 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 144,505 149,562 154,797 160,215 165,822 171,626 177,633 183,850 190,285 196,945 203,838 210,972 218,356 225,999 233,909 242,096 250,569 - - - - - - - - - - - - - - - - -
18,539 19,003 19,478 19,965 20,464 20,976 21,500 22,038 22,589 23,153 23,732 24,325 24,933 25,557 26,196 26,851 27,522 2,518,120 2,606,255 2,697,474 2,791,885 2,889,601 2,990,737 3,095,413 3,203,752 3,315,884 3,431,940 3,552,058 3,676,380 3,805,053 3,938,230 4,076,068 4,218,730 4,366,386 3,105,542 3,211,206 3,320,557 3,433,724 3,550,840 3,672,045 3,797,479 3,927,292 4,061,636 4,200,670 4,344,557 4,493,466 4,647,574 4,807,062 4,972,119 5,142,937 5,319,720 1,227,072 1,229,724 1,231,396 1,232,028 1,231,555 1,229,910 1,227,024 1,222,824 1,217,233 1,210,171 1,201,556 1,191,299 1,179,310 1,165,494 1,149,751 1,131,979 1,112,070 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 1,122,072 1,124,724 1,126,396 1,127,028 1,126,555 1,124,910 1,122,024 1,117,824 1,112,233 1,105,171 1,096,556 1,086,299 1,074,310 1,060,494 1,044,751 1,026,979 1,007,070 742,888 742,888 742,888 742,888 742,888 - - - - - - - - - - - -

1.45 1.45 1.45 1.45 1.45 11.71 11.69 11.65 11.59 11.53 11.44 11.35 11.23 11.10 10.95 10.78 10.59 379,184 381,836 383,508 384,140 383,667 1,124,910 1,122,024 1,117,824 1,112,233 1,105,171 1,096,556 1,086,299 1,074,310 1,060,494 1,044,751 1,026,979 1,007,070 23,632 24,460 25,316 26,202 27,119 28,068 29,050 30,067 31,119 32,209 33,336 34,503 35,710 36,960 38,254 39,593 40,978 35,449 36,689 37,974 39,303 40,678 42,102 43,575 45,101 46,679 48,313 50,004 51,754 53,565 55,440 57,381 59,389 61,468 - - - - - - - - - - - - - - - - -
355,551 357,376 358,192 357,938 356,548 1,096,842 1,092,974 1,087,757 1,081,114 1,072,963 1,063,220 1,051,796 1,038,599 1,023,534 1,006,498 987,387 966,091 Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 66
Attachment: Written Comments (6933 : Written Comments)
Chapter 5 | Financing Strategy Chapter 5 | Financing Strategy Hollywood Community Housing Corporation 101 100 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Cashflow
Project Name: Santa Monica RFP
Inflation
Rental Income:

Resident Rent 2.50%
Subsidy Rent 2.50%
Laundry Income 2.50%
Gross Income Vacancy Loss:

Resident Rent 5.00%Subsidy Rent 10.00%
Laundry Income 5.00%
Total Vacancy Loss
Gross Effective IncomeOperating Expenses:

Management Fee 3.50%
Replacement Reserve 0.00%
Real Estate Taxes 2.00%Issuer Fee 0.00%Additional Fees 3.50%LACDA Monitoring Fee 0.00% Services Fee 2.50%Other Operating Expenses 3.50%
Total Expenses
Cashflow before Debt Service
Ratio/Rate
HCD Payment 0.42%
Net Income Available for Debt Service
Permanent Loan 1.15Combined DSCR
Cashflow after debt serviceFees
LP Management Fe 3.50%
GP Management Fee 3.50%
Def. Dev.Fee 300,000
Remaining dev fee
Cashflow for distribution
Year 43 Year 44 Year 45 Year 46 Year 47 Year 48 Year 49 Year 50 Year 51 Year 52 Year 53 Year 54 Year 55 5,351,247 5,485,029 5,622,154 5,762,708 5,906,776 6,054,445 6,205,806 6,360,951 6,519,975 6,682,975 6,850,049 7,021,300 7,196,833 1,653,329 1,694,662 1,737,029 1,780,454 1,824,966 1,870,590 1,917,355 1,965,288 2,014,421 2,064,781 2,116,401 2,169,311 2,223,544 22,004 22,554 23,118 23,696 24,288 24,895 25,518 26,156 26,809 27,480 28,167 28,871 29,593 7,026,580 7,202,244 7,382,301 7,566,858 7,756,030 7,949,930 8,148,679 8,352,396 8,561,205 8,775,236 8,994,616 9,219,482 9,449,969 (267,562) (274,251) (281,108) (288,135) (295,339) (302,722) (310,290) (318,048) (325,999) (334,149) (342,502) (351,065) (359,842)(165,333) (169,466) (173,703) (178,045) (182,497) (187,059) (191,735) (196,529) (201,442) (206,478) (211,640) (216,931) (222,354) - - - - - - - - - - - - -
(1,100) (1,128) (1,156) (1,185) (1,214) (1,245) (1,276) (1,308) (1,340) (1,374) (1,408) (1,444) (1,480) (433,995) (444,845) (455,966) (467,366) (479,050) (491,026) (503,302) (515,884) (528,781) (542,001) (555,551) (569,440) (583,676) 6,592,585 6,757,399 6,926,334 7,099,492 7,276,980 7,458,904 7,645,377 7,836,511 8,032,424 8,233,235 8,439,066 8,650,042 8,866,293 594,702 615,516 637,060 659,357 682,434 706,319 731,040 756,627 783,109 810,518 838,886 868,247 898,635 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,00028,716 29,290 29,876 30,473 31,083 31,704 32,338 32,985 33,645 34,318 35,004 35,704 36,418 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 259,339 268,416 277,810 287,534 297,597 308,013 318,794 329,951 341,500 353,452 365,823 378,627 391,879 - - - - - - - - - - - - -
28,210 28,915 29,638 30,379 31,139 31,917 32,715 33,533 34,371 35,230 36,111 37,014 37,939 4,519,209 4,677,382 4,841,090 5,010,528 5,185,897 5,367,403 5,555,262 5,749,696 5,950,936 6,159,218 6,374,791 6,597,909 6,828,835 5,502,675 5,692,019 5,887,973 6,090,771 6,300,649 6,517,857 6,742,649 6,975,292 7,216,060 7,465,236 7,723,115 7,990,000 8,266,207 1,089,909 1,065,380 1,038,361 1,008,722 976,331 941,048 902,727 861,219 816,364 767,998 715,951 660,042 600,086 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 984,909 960,380 933,361 903,722 871,331 836,048 797,727 756,219 711,364 662,998 610,951 555,042 495,086 - - - - - - - - - - - - -

10.38 10.15 9.89 9.61 9.30 8.96 8.60 8.20 7.77 7.31 6.82 6.29 5.72 984,909 960,380 933,361 903,722 871,331 836,048 797,727 756,219 711,364 662,998 610,951 555,042 495,086 42,413 43,897 45,433 47,024 48,669 50,373 52,136 53,961 55,849 57,804 59,827 61,921 64,08863,619 65,846 68,150 70,535 73,004 75,559 78,204 80,941 83,774 86,706 89,741 92,882 96,132 - - - - - - - - - - - - -
942,496 916,483 887,927 856,698 822,661 785,675 745,592 702,258 655,515 605,194 551,123 493,121 430,998 Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 67
Attachment: Written Comments (6933 : Written Comments)
102 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Chapter 6Financial Capacity & Experience
Hollywood Community Housing Corporation 103

6.1 Financial Capacity
Chapter 6 | Financial Capacity & Experience
Audit Reports for 2020 - 2022As HCHC will be the project’s sole developer and lessee to a ground lease, our audit reports are included as Appendix G for years 2020, 2021, and 2022. The audits include letters from the independent auditing firms Holthouse, Carlin, and Van Trigt LLP and Dauby O’Connor & Zaleski, LLC confirming the consolidated financial statements presented for each fiscal year fairly represent the financial position of HCHC and the results of its operations and its cash flows in accordance with generally accepted United States accounting principles. Management letters are not included as the independent auditing firms found no issue or concern with the financials presented.Complete Portfolio of DevelopmentsAppendix K presents a complete portfolio of HCHC’s developments in operation, predevelopment, and construction. Projects that are analogous to this proposal are highlighted in yellow and include: Step Up on Colorado (Kaufmann Apartments) due to its location in Santa Monica on a 6,500 SF site; Gramercy Place Apartments due to its ground lease; Palm Vista Apartments, Walnut Park Apartments, Luna Vista Apartments, and Palo Verde Apartments which serve both PSH and general affordable households; Stanford Apartments due to its larger size at 85 units; Florence Mills Apartments and Paul Williams Apartments due to the service provision and community benefits they experience by being located less than 100 feet away from each other; and Peak Plaza Apartments which received an Affordable Housing and Sustainable Community (AHSC) award this past round (the same financing as the proposed project).Portfolio of Partnerships and Financing for Supportive ServicesHCHC has a long history of providing direct resident services and working with third party service providers specializing in intensive case management services (ICMS) for people experiencing homelessness. HCHC’s Resident Services team provides support and case management for tenants receiving Housing Authority of the City of Los Angeles (HACLA) Housing Opportunities for Persons with AIDS/HIV (HOPWA) project based rental assistance and is primarily funded through the Alliance for Housing & Healing related to the HOPWA program and HACLA’s Continuum of Care Program. Outside of the Resident Services department, HCHC maintains strong partnerships with Housing Works, Alexandria House, New Directions for Vets, and Step Up to provide ICMS services to residents at many of its buildings in operation. Housing Works contracts are typically financed through project cash flow, Los Angeles County’s Measure H (Homeless Initiative), and in-kind service value. Alexandria House and Step Up partnerships are financed through joint-development partnerships and project cash flow. Funds from partnerships, cash flow, HACLA, and Measure H are typically used to provide full-time equivalent (FTE) case managers and resident services coordinators on site including funding HCHC Resident Services team salaries. To supplement services budgets, Above An HCHC Book Drive Event
102 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Item 1
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Chapter 6 | Financial Capacity & Experience Chapter 6 | Financial Capacity & Experience 104 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Hollywood Community Housing Corporation 105 HCHC has a strong record of securing grants from foundations such as QueensCare, Kaiser Permanente, the Green Foundation, Marisla Foundation, S. Mark Taper Foundation, and the Geffen Foundation. Appendix L details each property’s service partnerships and funding sources in addition to grant information and uses.Experience Obtaining Funding Sources and Successful Competition for 9% Tax CreditsFor the proposed development HCHC intends to pursue financing from the AHSC program, HCD’s IIG program, 4% federal tax credits, state tax credits and tax-exempt bonds. HCHC has a highly-successful track record of securing both public and private funds to finance its affordable housing developments. In the last five years alone, HCHC has funded eight projects using 4% and 9% tax credits from CTCAC and tax-exempt bonds from CDLAC (Appendix M). Other highlycompetitive funding sources HCHC has been awarded in recent years are:City of Los Angeles• HHH funds• CRA funds• Linkage Fees•Affordable Housing Trust Funds• HOME funds Housing Authority of the City of Los Angeles• Project Based VouchersLos Angeles County Development Authority• No Place Like Home (NPLH)•Affordable Housing Trust Funds• HOME fundsFederal Home Loan Bank•Affordable Housing Program fundsCalifornia Department of Housingand Community Development• California Housing Accelerator Program • Multifamily Housing Program• Veterans Housing and Homelessness Prevention Program
• Housing for Healthy California • Infill Infrastructure Grant Program• AHSC ProgramDepartment of Health ServicesDepartment of Mental Health HCHC has secured several sources of federal housing subsidies including Section 8 Project Based Vouchers, Veterans Affairs Supportive Housing (VASH) PBVs, HUD HOME financing, and HUD Section 811 funding for people with disabilities. These subsidies support households living in 336 apartments across many projects and are presented in more detail in Appendix N.Notably, in August 2023, HCHC’s development Peak Plaza Apartments was one of the top scorers in a very competitive AHSC funding round. HCHC was able to secure a $20M award for the affordable housing development and $14.5M for the City of Los Angeles to put towards infrastructure improvements for bike, pedestrian and mass transit in the areas surrounding the proposed affordable housing development. HCHC is proposing this same financing as part of the proposed capital stack for this project, which could potentially bring several million dollars to the City of Santa Monica for improvements near the three proposed affordable housing sites.The key assumptions for all of the financing sources, both public and private, are based on current market conditions and regulations. These market conditions, including interest rates for conventional debt and the loan amounts available through government agencies, are modified on a regular basis. HCHC will continually work to update the pro forma to develop the most costeffective and expeditious strategy to finance and develop the proposed project. Recourse & Non-Recourse Debt, Non-Performing Loans, Financial Obligations, and Legal ActionsHCHC will be financially responsible for the proposed project. HCHC has secured lines of credit and loans including a revolving Non-Profit Finance Fund (NFF) loan of $1,500,000 and a $500,000 Wells Fargo loan. Details of HCHC’s current recourse and non-recourse debt with repayment terms are detailed in Exhibit 6.1.5. HCHC confirms that it does not have any non-performing loans and has not defaulted on any loans during the last five years. Lastly, HCHC is currently involved with one legal action. HCHC is a co-defendant with Venice Community Housing (co-developer of a proposed project) and the City of Los Angeles in a California Environmental Quality Act (CEQA) lawsuit that pertains to an affordable housing development called the Venice Dell Community. The plaintiffs are challenging the City’s determination that the Venice Dell Community is exempt from CEQA. The co-defendants are making progress in defending this case and four hearings are scheduled during the month of September 2023.

Above HCHC resident signing the lease for her new apartment Financial CapacityTop Left Palm Vista Apartments, Under ConstructionAbove Holding the key to a new Family home Item 1
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Project Name & Address Date Completed
Project type
(New Construction or
rehab)
Commercial
Component
(if any)
Target Population
Number of
Restricted Units
Number of Total
Units
Similarity to Santa
Monica RFP Sites
Alexandria House Apartments510 S. Alexandria Street Los Angeles, CA 90020 7/8/2009 Rehab N/A Family 15 16 --
Allesandro Street Apartments1934 Allesandro Street Los Angeles, CA 90039 11/14/2005 NC N/A Family, Special
Needs
17 18 --
Argyle Court Apartments1938 N. Argyle Avenue Los Angeles, CA 90068 2/16/1998 Rehab N/A Family, Special
Needs
22 23 --
Barnsdall Court Apartments1632 Noramandie Avenue Los Angeles, CA 90027 6/28/2000 NC N/A Family 37 38 --
Carlton Court Apartments5443 Carlton WayLos Angeles, CA 90027 10/5/1994 NC N/A Family 23 24 --
Casa Verde Apartments1552 Schrader Avenue Los Angeles, CA 90028 12/1/2000 NC N/A Family, Special
Needs
29 30 --
Coronel Apartments1601 N. Hobart Blvd. Los Angeles, CA 90027 4/19/2019 NC/Rehab N/A Family 53 54 --
Dunning Apartments5552 Carlton Way Los Angeles, CA 90028 11/6/1992 Rehab N/A Family, Special
Needs
25 26 --
Florence Mills Apartments 1044 E. Jefferson Blvd, Los Angeles, CA 90011 3/1/2021 NC
Yes - Young
Musicians
Foundation
Homeless
Veterans and lowincome families 73 74
Located adjacent
to Paul Williams
Apartments
allowing for shared
resources
Gateway Apartments13368 Beach Ave.Los Angeles, CA 90292 3/2/2016 NC N/A Homeless, Special
Needs
20 21
Located in west
Los Angeles
Gramercy Place Apartments2375 W. Washington Blvd, Los Angeles, CA 90018 12/3/2021 NC Yes - Tenant space
vacant
Homeless 62 64
Ground lease
property
Harold Way Apartments5521 Harold Way Los Angeles, CA 90026 8/19/2003 NC N/A Family, Special
Needs
50 51 --
HCHC Recap I:5425 Carlton Way, Los Angeles, CA 900271924 N. Argyle Age. Los Angeles, CA 900686501 Yucca St. Los Angeles, CA 90028 9/8/2017 Rehab N/A Family, Seniors 65 68 --
Hollywood Bungalows1516-1544 Serrano Avenue, 1721 N. KingsleyLos Angeles, CA 90027 1/22/2010 Rehab N/A Family 41 42 --
Key: Rows highlighted in yellow are analogous to this City of Santa Monica proposal Properties in Operation
Exhibit 6.1.1 Portfolio of Developments
Chapter 6 | Financial Capacity & Experience Chapter 6 | Financial Capacity & Experience106 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Hollywood Community Housing Corporation 107 Hollywood Metro Apartments1516 N Western Avnue Los Angeles, CA 90027 8/8/2005 NC Yes - Bank and
other retail Family 55 56 --
Innes Heights Apartments1245 Innes AvenueLos Angeles, CA 90026 8/14/2003 NC N/A Special Needs 18 19 --
Kenmore Apartments1726 N. Kenmore Avenue Los Angeles, CA 90027 12/15/2000 Rehab N/A Family, Special
Needs
20 21 --
La Brea / Franklin Apartments1801 La Brea Avenue Los Angeles, CA 90046 5/30/1993 NC N/A Family 39 40 --
La Mirada Terrace Apartments5657 La Mirada Avenue Los Angeles, CA 90038 12/1/2000 NC N/A Family, Special
Needs
29 30 --
Mariposa Apartments1050 Mariposa AvenueLos Angeles, CA 90029 6/1/2009 NC Yes - laundromat Family 57 58 --
Palo Verde Apartments4704 Peck RoadEl Monte, CA 91732
11/21/2018 NC N/A
Homeless
Veterans and LowIncome Famiies 48 49
Partial PSH and
partial general
affordable
Palomar Apartments5473 Santa Monica Blvd. Los Angeles, CA 90029 12/14/2005 Rehab N/A Senior 26 27 --
Paul Williams ApartmentsE. 1010 Jefferson Blvd.Los Angeles, CA 90011 3/28/2019 NC/Rehab N/A Family 40 41
Located adjacent
to Florence Mills
Apartments
allowing for shared
resources
St. Andrews Place1514-44 N. St. Andrews Pl. Los Angeles, CA 90028 11/21/1995 Rehab N/A Homeless 15 16 --
Stanford Avenue Apartments14733-14803 S. Stanford Avenue, Compton, CA 90220 12/1/2020 NC N/A Homeless 83 85
New construction
with concentrated
PSH population
Step Up on Colorado520 Colorado Ave.Santa Monica, CA 90404 10/21/2015 NC N/A Homeless, Special
Needs
32 34
Located in Santa
Monica on 6,500
SF site
Step Up on Vine1057 N. Vine StreetLos Angeles, CA 90028 1/1/2013 Rehab
Yes - Café and
community serving
retail space for
work training
Homeless, Special
Needs
32 34 --
Views at 2701672 N Western AvenueLos Angeles, CA 90027
5/27/2004 NC Yes - Walgreens Family 59 60 --
Waterloo Heights1011 Waterloo Street Los Angeles, CA 90026 8/22/2002 NC N/A Homeless 17 18 -
Properties Under Construction
Properties in PreDevelopment
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Venice Dell Community
2102-2120 South Pacific Ave 116-302 East North Venice Blvd2106-2116 South Canal St 319 East South Venice Blvd In
Predevelopment
NC TBD Family, Special
Needs, Artists
136 140
Located in west
Los Angeles. Large
project over 140
units. Ground
lease.

Walnut Park Apartments7616 Pacific BlvdLos Angeles, CA 90255 Under
Construction
NC N/A Family, Special
Needs
62 64
Partial PSH and
partial general
affordable
Palm Vista20116 Sherman WayWinnetka, CA 91306
Under
Construction
NC N/A Family, Special
Needs
89 91
Partial PSH and
partial general
affordable
Luna Vista8767 Parthenia PlaceNorth Hills, CA 91343
Under
Construction NC
N/A Family, Special
Needs 71 73
Partial PSH and
partial general
affordable
Peak Plaza Apartments306 E Washington BlvdLos Angeles, CA 90015 In
Predevelopment
NC Yes Family 102 104
Received AHSC
Funding Award
Properties in PreDevelopment
Properties Under Construction
Exhibit 6.1.1 Portfolio of Developments, Continued Exhibit 6.1.2 Property-Specific Partnerships for PSH Units Property Name Location Units (Special Needs/Total) Service Partner Date Completed Dates of Service Agreement Short Description of Services Financing Source for Service Alexandria
House
Apartments
City of Los
Angeles 16 (15) Alexandria House 2009
Service start
date
08/01/2009

1.0 FTE RSC
Joint Partnership withAlexandria House
Allesandro Street
Apartments
City of Los
Angeles 18 (17) HCHC Resident Services Team 2005 7/1/23Ͳ6/30/24 All funding used forsalaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS(HOPWA) Program Resident ServicesCoordination, $278,120/
year
7/1/23Ͳ6/30/24
All funding used for
salaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS(HOPWA) Program Resident ServicesCoordination, $278,120/year
7/1/23Ͳ
6/30/25,
agreement is
pending.

ProjectͲBased RentalAssistance (PBRA) for 22HOPWA residents Housing Authority of theCity of Los AngelesͲHousing Opportunitiesfor Persons withAIDS/HIV (HOPWA) ProjectͲBased RentalAssistance (PBRA)
30 (12) HCHC Resident Services Team 7/1/23Ͳ6/30/24
All funding used for
salaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to the
Housing Opportunitiesfor Persons with AIDS(HOPWA) Program Resident ServicesCoordination, $278,120/
year
30 (11) HCHC Resident Services Team 9/1/22Ͳ8/31/23 SponsorͲbased rental assistance (SRA) for 112 HOPWA residents Housing Authority of theCity of Los Angeles
(HACLA) Continuum ofCare Program,
$1,851,854/year
26 (3) 7/1/23Ͳ6/30/24
All funding used for
salaries: 30% Director of
Resident Services, 50%Program Manager, 80%
RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunities for Persons with AIDS(HOPWA) ProgramResident ServicesCoordination, $278,120/year 26 (3) 9/1/22Ͳ8/31/23
SponsorͲbased rentalassistance (SRA) for 112
HOPWA residents
Housing Authority of the
City of Los Angeles
(HACLA) Continuum ofCare Program,
$1,851,854/yearProject Cash Flow($69,000/year)Measure H($32,400/year)InͲKind service value ($45,350/year)
Florence Mills
Apartments
Service start
date
03/24/2021
City of Los
Angeles 74 (19) Housing Works 2021 1.0 FTE CM & 1.0 FTE RSC 2000
HCHC Resident Services
Team
23 (22) City of Los Angeles Argyle Court Apartments 1998 Casa Verde
Apartments
City of Los
Angeles
Dunning
Apartments
City of Los
Angeles
HCHC Resident Services
Team
1992
Chapter 6 | Financial Capacity & Experience Chapter 6 | Financial Capacity & Experience108 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Hollywood Community Housing Corporation 109 Item 1
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Chapter 6 | Financial Capacity & Experience Chapter 6 | Financial Capacity & Experience 110 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Hollywood Community Housing Corporation 111 Exhibit 6.1.2 Property-Specific Partnerships for PSH Units, Continued

0.75 FTE ICMs &0.25 FTE
RSC
Project Cash Flow($53,000/year)In Kind service value($80,385/year) VA 0.65 FTE CM Commitmen Letter only
New Directions for Vets 0.35 FTE RSC & 0.25 Supervisor Project Cash flow ($30,450/year) with 3% annual escalation Project Cash Flow($70,625/year)DHS Housing for Health
($286,000/hear)
7/1/23Ͳ6/30/24
All funding used forsalaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS(HOPWA) Program Resident ServicesCoordination, $278,120/year
9/1/22Ͳ8/31/23
SponsorͲbased rentalassistance (SRA) for 112HOPWA residents Housing Authority of the
City of Los Angeles(HACLA) Continuum ofCare Program,
$1,851,854/year

0.33 FTE CM Step Up on Second, In ($21,450/year)1.0 FTE RSC Step Up on Second, Inc ($23,000/year) Project Cash flow($30,000/year)
Step Up on
Colorado
City of Santa
Monica 34 (32) Step Up on Second Street, Inc 2015 service start date 07/28/2015 1.0 FTE RSC Commitment with SUOSS 27 (14) 7/1/23Ͳ6/30/24
All funding used forsalaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS(HOPWA) Program Resident Services
Coordination, $278,120/
year
27 (14) 9/1/22Ͳ8/31/23
SponsorͲbased rentalassistance (SRA) for 112
HOPWA residents
Housing Authority of the
City of Los Angeles
(HACLA) Continuum ofCare Program,
$1,851,854/year
Waterloo
Heights
Apartments
City of Los
Angeles 18 (15) HCHC Resident Services Team 2002 7/1/23Ͳ6/30/24 All funding used forsalaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS(HOPWA) ProgramResident ServicesCoordination, $278,120/year Palo Verde
Apartments
Service start
Date
12/06/2018
Housing Works
Service start
date
03/13/2013
Housing Works
2013 Step Up on Second Street,
Inc
HCHC Resident Services
Team
2020

3.15 FTE CMs & 0.50 FTE
RSC
2018 49 (25)
El Monte
Los Angeles
County
Service Start
date
03/23/2021
85 (53)
Compton
Los Angeles
County
City of Los
Angeles
Palomar
Apartments
Step Up on Vine
Stanford Avenue
Apartments
34 (32) City of Los Angeles85 (15)
2005 HCHC Resident Services
Team
Gramercy Place
Apartments
City of Los
Angeles 64 (31) Housing Works 2021
Service start
date
07/01/2019

1.55FTE CM & 1.00 FTERSC
Project Cash flow($66,250/year)
42 (15) 7/1/23Ͳ6/30/24
All funding used for
salaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to the
Housing Opportunities
for Persons with AIDS
(HOPWA) Program
Resident ServicesCoordination, $278,120/year
42 (15) 9/1/22Ͳ8/31/23
SponsorͲbased rentalassistance (SRA) for 112HOPWA residents Housing Authority of theCity of Los Angeles
(HACLA) Continuum ofCare Program,
$1,851,854/year
19 (18) 7/1/23Ͳ6/30/24
All funding used for
salaries: 30% Director of
Resident Services, 50%Program Manager, 80%
RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS(HOPWA) Program Resident ServicesCoordination, $278,120/year
19 (18) 9/1/22Ͳ8/31/23
SponsorͲbased rentalassistance (SRA) for 112HOPWA residents Housing Authority of theCity of Los Angeles
(HACLA) Continuum ofCare Program,
$1,851,854/year
21 (7) HCHC Resident Services Team 7/1/23Ͳ6/30/24
All funding used forsalaries: 30% Director ofResident Services, 50%Program Manager, 80% RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS (HOPWA) Program
Resident ServicesCoordination, $278,120/year
21 (7) HCHC Resident Services Team 9/1/22Ͳ8/31/23 SponsorͲbased rental assistance (SRA) for 112 HOPWA residents Housing Authority of theCity of Los Angeles
(HACLA) Continuum ofCare Program,
$1,851,854/year
30 (9) 7/1/23Ͳ6/30/24
All funding used for
salaries: 30% Director ofResident Services, 50%Program Manager, 80%RSC, 100% Senior RSC, 100% Senior RSC
Alliance for Housing &Healing relating to theHousing Opportunitiesfor Persons with AIDS(HOPWA) Program Resident ServicesCoordination, $278,120/year
30 (9) 9/1/22Ͳ8/31/23
SponsorͲbased rentalassistance (SRA) for 112HOPWA residents Housing Authority of theCity of Los Angeles(HACLA) Continuum of Care Program,
$1,851,854/year
2000
Hollywood
Bungalow Courts
Innes Heights
Apartments
2003 City of Los Angeles
City of Los
Angeles
HCHC Resident Services
Team
2010
HCHC Resident Services
Team
2000
HCHC Resident Services
Team
La Mirada
Terrace
Apartments
Kenmore
Apartments
City of Los
Angeles
City of Los
Angeles
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Chapter 6 | Financial Capacity & Experience Chapter 6 | Financial Capacity & Experience 112 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Hollywood Community Housing Corporation 113 Exhibit 6.1.2 Property-Specific Partnerships for PSH Units, Continued 23 (3) 7/1/23Ͳ6/30/24
All funding used for
salaries: 30% Director ofResident Services, 50%
Program Manager, 80%
RSC, 100% Senior RSC,
100% Senior RSC
Alliance for Housing &
Healing relating to theHousing Opportunitiesfor Persons with AIDS (HOPWA) Program
Resident ServicesCoordination, $278,120/
year
23 (3) 9/1/22Ͳ8/31/23
SponsorͲbased rentalassistance (SRA) for 112
HOPWA residents
Housing Authority of the
City of Los Angeles
(HACLA) Continuum ofCare Program,
$1,851,854/year
Walnut Park
Apartments
Huntington Park
Los Angeles
County
64 (31) HousingWorks Under construction
MOU signed.

Services to
begin in Spring
2024 and
continue
through 2039.

2.05 FTE Case Manager0.75 FTE RSC
ͲLA County DHSMeasure H
ͲProject cash flow($82,500/year)
Palm Vista
Apartments
City of Los
Angeles 91 (44) Housing Works Under construction Service start date 09/01/2023 2.20 FTE CMs & 1.125 RSC ͲLA County DHS Measure H ͲProject cash flow ($96,000/year) Project Cash Flow($75,000/year)Measure Hcommitments to SPA 7under Housing WorksMaster Contract withDHS Grant Name and
Partnerships Year Awarded Amount Use of Funds
QueensCare 2022 $15,000 HCHC Resident Services salaries Kaiser
Permanente
2022 $50,000 HCHC Resident Services salaries
The Green
Foundation 2022 $25,000 HCHC Resident Services salaries Marisla
Foundation 2022 $35,000 HCHC Resident Services salaries and benefits S. Mark Taper
Foundation 2022 $50,000 HCHC Resident Services salaries QueensCare 2023 $15,000 HCHC Resident Services salaries Marisla
Foundation 2023 $35,000 HCHC Resident Services salaries and benefits Geffen
Foundation 2021 $10,000 Resident Services
Young Musicians
Foundation Ongoing partnership
Provides free music
instruction to Florence
Mills and Paul Williamsresidents over the age of4
YWCA Ongoing partnership
Provides linkage forresidents experiencingdomestic violence Housing Works Ongoing partnership
Receives office space at
no cost at Wilcox
Apartments
Luna Vista
Apartments
Service start
date
anticipated in
2024
City of Los
Angeles 73 (36) Housing Works Under construction
City of Los
Angeles
Wilcox
Apartments

2.25 FTE CMs & 0.75 FTERSC
2017 HCHC Resident Services
Team
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Exhibit 6.1.3 List of All Project Financing Sources
Chapter 6 | Financial Capacity & Experience Chapter 6 | Financial Capacity & Experience114 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Hollywood Community Housing Corporation 115 Project Name & Address
Tax
Credit
Type
Date Completed
Project type
(New
Construction or
rehab)
Commercial
Component
(if any)
Target
Population
Number of
Restricted/Tax
Credit Units
Number of Total
Units
Principal Funding Sources (LIHTC,
MHP, etc.)
Alexandria House Apartments510 S. Alexandria Street Los Angeles, CA 90020 4% 7/8/2009 Rehab N/A Family 15 16 LIHTC, Pacific Capital Bank-AHP, HACOLA, CRA, MHP, COI & HCID Allesandro Street Apartments1934 Allesandro Street Los Angeles, CA 90039 N/A 11/14/2005 NC N/A Family, Special Needs 17 18 Citi Bank, HUD, HACOLA & HCID Argyle Court Apartments1938 N. Argyle Avenue Los Angeles, CA 90068 N/A 2/16/1998 Rehab N/A Family, Special Needs 22 23 CHASE & HCID Barnsdall Court Apartments1632 Noramandie Avenue Los Angeles, CA 90027 4% 6/28/2000 NC N/A Family 37 38 LIHTC, Red Mortgage Capital, Inc. US Bank & HCID Carlton Court Apartments5443 Carlton WayLos Angeles, CA 90027 4% 10/5/1994 NC N/A Family 23 24 LIHTC, Citi Bank, CRA & HCHC Casa Verde Apartments1552 Schrader Avenue Los Angeles, CA 90028 4% 12/1/2000 NC N/A Family, Special Needs 29 30 LIHTC, Citi Bank & CRA Coronel Apartments1601 N. Hobart Blvd. Los Angeles, CA 90027 9% 4/19/2019 NC/Rehab N/A Family 53 54 LIHTC, Bank of America, HCID, CRA, AHP, Kilroy Realty Corp.

Dunning Apartments5552 Carlton Way Los Angeles, CA 90028 9% 11/6/1992 Rehab N/A Family, Special Needs 25 26 LIHTC, Mission Valley Bank (MVB) & CRA Florence Mills Apartments 1044 E. Jefferson Blvd, Los Angeles, CA 90011 9% 3/1/2021 NC
Yes - Young
Musicians
Foundation
Homeless
Veterans and lowincome families 73 74 LIHTC, Union Bank, LACDA, AHP, HCIDLA, HomeDepot Gateway Apartments13368 Beach Ave.Los Angeles, CA 90292 9% 3/2/2016 NC N/A Homeless, Special Needs 20 21 LIHTC, HCID, LACDC Gramercy Place Apartments2375 W. Washington Blvd, Los Angeles, CA 90018 4% 12/3/2021 NC Yes - Tenant space
vacant
Homeless 62 64 LIHTC, Citibank, LACDA - CGF, CRA,
HHH, and MHHP
Harold Way Apartments5521 Harold Way Los Angeles, CA 90026 9% 8/19/2003 NC N/A Family, Special Needs 50 51 LIHTC, CHASE, HCID & HCHC HCHC Recap I:5425 Carlton Way, Los Angeles, CA 90027; 1924 N. Argyle Age. Los Angeles, CA 4% 9/8/2017 Rehab N/A Family, Seniors 65 68 LIHTC, HCID, tax exempt bonds Hollywood Bungalows1516-1544 Serrano Avenue, 1721 N. KingsleyLos Angeles, CA 90027 4% 1/22/2010 Rehab N/A Family 41 42 LIHTC, Citi Bank, CRA & HCID Hollywood Metro Apartments1516 N Western Avnue Los Angeles, CA 90027 4% 8/8/2005 NC Yes - Bank and other retail Family 55 56 LIHTC, Bank of New York Trust, MHP &CRA Innes Heights Apartments1245 Innes AvenueLos Angeles, CA 90026 9% 8/14/2003 NC N/A Special Needs 18 19 LIHTC, Citi Bank, HACOLA, HCID & AHP Kenmore Apartments1726 N. Kenmore Avenue Los Angeles, CA 90027 9% 12/15/2000 Rehab N/A Family, Special Needs 20 21 LIHTC, HCID La Brea / Franklin Apartments1801 La Brea Avenue Los Angeles, CA 90046 9% 5/30/1993 NC N/A Family 39 40 LIHTC, Citi Bank & CRA La Mirada Terrace Apartments5657 La Mirada Avenue Los Angeles, CA 90038 9% 12/1/2000 NC N/A Family, Special Needs 29 30 LIHTC, Citi Bank & HCID Peak Plaza Apartments306 E Washington BlvdLos Angeles, CA 90015 4%
In
Predevelopment
NC N/A Family TBD 104
AHSC & LAHD committedProject intends to pursue 4% LIHTC and state tax credits.

Walnut Park Apartments7616 Pacific BlvdLos Angeles, CA 90255 N/A Under Construction NC N/A Family, Special Needs 62 64 HCD-IIG, HCD-CHAP, HCD-HHC, AHP, LACDA, Banner Bank Venice Dell Community2102-2120 South Pacific Ave 116-302 East North Venice Blvd2106-2116 South Canal St 319 4%
In
Predevelopment
NC TBD Family, Special
Needs, Artists
136 140
LAHD-AHTF & Citi committedProject intends to pursue 4% LIHTC and state tax credits, HCD-MHP, and HCD-IIG Palm Vista20116 Sherman WayWinnetka, CA 91306
4%
Under
Construction
NC N/A Family, Special Needs 89 91 LIHTC, HCD-IIG, HCD-MHP, LACDA, CRA, AHP Luna Vista8767 Parthenia PlaceNorth Hills, CA 91343
4% Under
Construction NC
N/A Family, Special
Needs 71 73 LIHTC, LAHD-AHMP, HCD-MHP,
HCD-IIG, Banner Bank
Mariposa Apartments1050 Mariposa AvenueLos Angeles, CA 90029 4% 6/1/2009 NC Yes - laundromat Family 57 58 LIHTC, US Bank, HCID HACOLA Palo Verde Apartments4704 Peck RoadEl Monte, CA 91732
9% 11/21/2018 NC N/A
Homeless
Veterans and
Low-Income
Famiies
48 49 LIHTC, Citibank, HCD VHHP, LACDA,
HACOLA, AHP, City of El Monte
Palomar Apartments5473 Santa Monica Blvd. Los Angeles, CA 90029 9% 12/14/2005 Rehab N/A Senior 26 27 LIHTC, Berkadia, CCRC & CRA Paul Williams ApartmentsE. 1010 Jefferson Blvd.Los Angeles, CA 90011 9% 3/28/2019 NC/Rehab N/A Family 40 41 LIHTC, Bank of America, HCID CDBG & AHTF, AHP St. Andrews Place1514-44 N. St. Andrews Pl. Los Angeles, CA 90028 9% 11/21/1995 Rehab N/A Homeless 15 16 LIHTC, Citibank, CRA & HCID Stanford Avenue Apartments14733-14803 S. Stanford Avenue, Compton, CA 90220 9% 12/1/2020 NC N/A Homeless 83 85 LIHTC, Wells Fargo Bank, LACDA, AHP Step Up on Colorado520 Colorado Ave.Santa Monica, CA 90404 9% 10/21/2015 NC N/A Homeless, Special Needs 32 34 LIHTC, City of Santa Monica, LACDC, AHP Step Up on Vine1057 N. Vine StreetLos Angeles, CA 90028 9% 1/1/2013 Rehab
Yes - Café and
community serving
retail space for
work training
Homeless,
Special Needs
32 34
LIHTC, MHSA, CRA/LA, HCID, AHP, LACDC, Enterprise Green Communities Views at 2701672 N Western AvenueLos Angeles, CA 90027
4% 5/27/2004 NC Yes - Walgreens Family 59 60 LIHTC, Berkadia & CRA Waterloo Heights1011 Waterloo Street Los Angeles, CA 90026 N/A 8/22/2002 NC N/A Homeless 17 18 HUD, HACOLA
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# Index Building Name Address
Total Units
(w/manager)
PBV/NonVash PBV/VASH HOME Fund Others
1 Allesandro Apts. 1934 Allesandro Street Los Angeles, CA 90039 18 17-HUD PRAC 811 2 Argyle Court Apartments 1938 N. Argyle Avenue Hollywood, CA 90068 23 22 53 Casa Verde Apartments 1552 Schrader Avenue Hollywood, CA 90028 30 2 4 Florence Mills 1044 E. Jefferson Blvd., Los Angeles, CA 90011 74 6 13 37 5 Gramercy Place 1856 S. Wilton Place, Los Angeles, CA 90019 64 32 6 Harold Way Apartments 5521 Harold Way Hollywood, CA 90026 51 25 7 HCHC Recap I Werner Illing House 1924 N. Argyle Avenue Hollywood, CA 90068 21 21 7 8 Mariposa Place 5026 Santa Monica Blvd. Hollywood, CA 58 28 9 Mirada Terrace Apts. 5657 La Mirada Avenue Hollywood, CA 90038 30 14 10 Palo Verde 4704 Peck Road, El Monte, CA 91732 49 9 16 11 Palomar Apartments 5473 Santa Monica Blvd. Hollywood, CA 90029 27 4 12 Paul Williams 1010 Jefferson Blvd., Los Angeles, CA 90011 41 2013 Step Up on Colorado 520 Colorado Ave., Santa Monica, CA 9040 34 32 32-DHS 14 Step Up on Vine 1057 N. Vine Ave,, Los Angeles, CA 90038 34 32 32-DMH 15 Waterloo Heights 1011 Waterloo Street Silverlake, CA 90026 18 7 17-HUD PRAC 811 572 154 29 149 4
Chapter 6 | Financial Capacity & Experience Chapter 6 | Financial Capacity & Experience116 Hollywood Community Housing Corporation City of Santa Monica | Affordable Housing Proposal Hollywood Community Housing Corporation 117 Exhibit 6.1.4 Portfolio of Federal SubsidiesUpdated 08/24/23 LOAN SCHEDULE DATE: August 29, 2023
Name of the Lender Purpose/Project
Date of
Original
Loan
Original
Loan
Amount
Available
Balance Interest Rate Maturity Date Security / Recourse

CLOSED LOANS
Corporation for Supportive Housing (CSH)
Predevelopment/Venice Dell 6/15/2018 $ 3,273,000 $ 834,975 6.00% 12/30/2023.

Pursuing a subsequent 12-mo extension to 12/30/24.

HCHC & VCH as co-guarantors plus VCH's property at 511 Brooks serves as collateral.

Nonprofit Finance Fund (NFF) - Enterprise Level Capital Predevelopment for multiple properties 12/22/2020 $ 1,500,000 $ - 5.50% 36 months from origination with two one year extensions. Highly likely both one-year extensions will be granted.

Unsecured / Recourse to HCHC
Century Housing Acquisition/306 E Washington Blvd
(Peak Plaza Apts)
8/26/2022 $ 6,375,000 $ - 1-month SOFR +

4.50%
Secured - Property
LISC (MATCH Funds) Predevelopment/306 E Washington
Blvd (Peak Plaza Apts)
12/20/2022 $ 1,500,000 $ 866,909 Blended rate
with two separate Notes. 5.75% and 2.9%
24 month month term + a few days (1/1/25) with a 12 month Unsecured / Recourse to HCHC
PENDING LOANSNoneOTHER OBLIGATIONS
Union Bank - Line of Credit Predevelopment Expenses/Operations 02/18/2017 $ 500,000 $ 500,000 4.00% 06/01/2024 Unsecured / Recourse to HCHC
Wells Fargo Bank - Patient Capital Loan Product
Predevelopment Expenses/Operations 12/21/2021 $ 500,000 $0.00 2.00% 12/21/2027 Unsecured / Recourse to HCHC
Exhibit 6.1.5

HOLLYWOOD COMMUNITY HOUSING CORPORATION
Loan Schedule
Updated 08/23
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2 David Yakobson
From: Adelaide Kahn-Fowler <[email protected]>
Sent: Saturday, February 22, 2025 11:37 AM
To: Nikima Newsome; Clerk Mailbox; [email protected]; Susan Cola; Michelle M. Hugard
Cc: Corin L. Kahn
Subject: Companion Documents PART V to "On-Going City Business: Non-Agendized Item" RE Corin L. Kahn
Attachments: ATTACHMENT PART V of V.pdf

EXTERNAL
Hello,
Please see companions attachments, Part V of V, to a letter sent by Corin L. Kahn on February 20, 2025 pertaining to "On-Going City Business: Non-Agendized Item for Council Meeting Tuesday, February 25, 2025."
Best,
Adelaide
–
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APPLICATION CHECKLIST

AFFORDABLE HOUSING REQUEST FOR PROPOSALSWILSHIRE SITES AFFORDABLE HOUSING DEVELOPMENTSANTA MONICA, CALIFORNIA Abode
Communities BRIDGE Housing
Cesar Chavez
Foundation
Community Corp of
Santa Monica

WORKS &
CTY Housing EAH Housing
Hollywood
Community Housing
Corp
Housing Diversity
Corporation
Menorah Housing
Foundation
I. Cover Letter - (Maximum of Two Pages)
A. Executive Summary Yes Yes Yes Yes Yes Yes Yes Yes Yes B. Lead Contact Person - Contact Information Yes Yes Yes Yes Yes Yes Yes Yes Yes II. Development Team Information
A. Lead Developer Information
Lead Developer Name Yes Yes Yes Yes Yes Yes Yes Yes Yes Address Yes Yes Yes Yes Yes Yes Yes Yes Yes
Name of proposer's principals Yes Yes Yes Yes Yes Yes Yes Yes, one listed (CEO) Yes Form of legal entity Yes, 501(c)(3) Yes, 501(c)(3) Yes, 501(c)(3) Yes, 501(c)(3) Yes, 501(c)(3) Yes, 501(c)(3) Yes, 501(c)(3) Yes Yes, 501(c)(3)Experience working in the region and Santa Monica specifically LA County only LA County only LA County only Both LA County only Both Both LA County only Both Business organization documents Yes Yes Yes Yes Yes Yes Yes Yes B. Development Team Information
Contact Information for Key Team Members Yes Yes Yes Yes Yes Yes Yes Yes Yes Developer Yes Yes Yes Yes Yes Yes Yes Yes Yes
Service Providers Yes Yes Yes Yes Yes Yes Yes N/A YesArchitects & Designers Yes Yes Yes Yes Yes Yes Yes Yes Yes Resumes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Organization chart Yes Yes Yes Yes Yes Yes Yes No Yes
III. Development and Services Concept
A. Narrative Description of the Project Vision
All three sites included Yes Yes Yes Yes Yes Yes Yes Yes Yes Income and affordability standards Yes Yes Yes Yes Yes Yes Yes Yes Yes Ground floor concept Yes Yes Yes Yes Yes Yes Yes Yes Yes Basement plan (if applicable) Yes Yes N/A Yes N/A N/A Yes, Subterranean Parking N/A N/ASummary of uses and floor areas Yes Yes Yes Yes Yes Yes Yes Yes Yes How development scope meets the RFP objectives Yes Yes Yes Yes Yes Yes Yes Yes Yes B. Supportive Services
On-site location Yes Yes Yes Yes Yes Yes Yes No Yes
Identification of the provider Yes, The People Concern Yes, Ascencia Yes, Step Up Yes, The People Concern Yes, St. Joseph Center Yes, EngAGE Yes, The People Concern No Yes, Menorah Housing FoundationConceptual service plan Yes Yes Yes Yes Yes Yes Yes No Yes Funding strategy Yes Yes Yes Yes Yes Yes Yes No Yes
Letter of intent from any proposed service providers Yes Yes Yes Yes Yes No Yes No Yes C. Development Plans
Conceptual site plan Yes Yes Yes Yes Yes Yes Yes Yes Yes Floor plan illustrating site & building configurations; # of residences and bedroom mix; target population; amenities & services; service-provider space; bicycle, pedestrian & vehicular circulation & access points Yes Yes Yes Yes Yes Yes Yes Yes Yes
Schedule of performance: DDA, entitlement, design, financing, commencing and completing construction, lease negotiations, marketing & final occupancy Yes Yes Yes Yes Yes Yes Yes No Yes
IV. Community Involvement Plan
A. Plan & Approach for engaging residents, downtown stakeholders, target populations & other interested parties Yes Yes, partnered with Eumenides Yes Yes Yes Yes Yes Yes Yes, partnered with Three6ixty B. Plan for addressing community feedback Yes Yes, partnered with Eumenides Yes Yes Yes Yes Yes Yes Yes, partnered with Three6ixty Provided: Yes/No or Not Applicable (N/A)
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APPLICATION CHECKLIST

AFFORDABLE HOUSING REQUEST FOR PROPOSALSWILSHIRE SITES AFFORDABLE HOUSING DEVELOPMENTSANTA MONICA, CALIFORNIA Abode
Communities BRIDGE Housing
Cesar Chavez
Foundation
Community Corp of
Santa Monica

WORKS &
CTY Housing EAH Housing
Hollywood
Community Housing
Corp
Housing Diversity
Corporation
Menorah Housing
Foundation
Provided: Yes/No or Not Applicable (N/A)
V. Financing Strategy
A. Funding Plan (broken down by use)
Conceptual construction period sources & uses Yes Yes Yes Yes Yes Yes Yes Yes Yes Conceptual permanent period sources & uses Yes Yes Yes Yes Yes Yes Yes No, predevelopment provided instead Yes B. Development cost pro forma analysis:

Direct, indirect & financing costs Yes Yes Yes Yes Yes Yes Yes Yes Yes Preliminary estimates of contractor costs Yes Yes Yes Yes Yes Yes Yes Yes Yes Estimated developer fee Yes Yes Yes Yes Yes Yes Yes Yes Yes Any payments to related parties N/A N/A N/A Yes Yes Yes Yes Yes Yes Costs to fulfill public benefits requirements Yes Yes Yes Yes Yes Yes Yes Yes Yes Prevailing wage assumption Yes Yes Yes Yes Yes Yes Yes No Yes Summary of assumptions applied in the analysis Yes Yes Yes Yes Yes Yes Yes Yes Yes C. Annotated operating pro forma:

Stabilized income, expenses & debt service Yes Yes Yes Yes Yes No Yes Yes, incomplete Yes 55-year cash flow projection including: Yes Yes, 15 years Yes Yes Yes Yes Yes No Yes, 15 years Payments to tax credit partners Yes Yes Yes Yes Yes Yes Yes No Yes Debt service payments on City assistance Yes Yes N/A Yes Yes Yes Yes No YesGround lease payments Yes Yes Yes N/A Yes Yes Yes No YesSummary of assumptions Yes Yes Yes Yes Yes Yes Yes Yes Yes D. Underwriting (should be based on sources & uses)
Construction loan underwriting assumptions Yes Yes Yes Yes Yes Yes Yes Yes Yes Permanent loan underwriting assumptions Yes Yes Yes Yes Yes Yes Yes Yes Yes E. Responsibilities to be imposed on the City Yes Yes Yes Yes Yes Yes Yes Yes Yes F. Financial contingencies included in the proposal Yes Yes N/A N/A Yes Yes Yes Yes Yes G. Proposed repayment structure for City assistance Yes Yes N/A N/A Yes Yes Yes N/A Yes H. Ground lease term, structure & payment schedule Yes Yes Yes Yes Yes Yes Yes N/A Yes I. Financing timeline Yes Yes Yes Yes Yes Yes Yes Yes Yes J. Services
Identification of services Yes Yes Yes Yes Yes Yes Yes No Yes Budget for services Yes Yes Yes Yes Yes Yes Yes No Yes
VI. Development Team's Financial Capacity & Experience
A. Financial statements for at least three years. Can be an audit or a compilation. Must be prepared by an independent accounting firm in accordance with GAAP. Must end no earlier than 2020.

Only Two Years
(2019 and 2020)
Only Two Years
(2021 and 2022) 2020, 2021, 2022 Only Two Years 2020-21, 2021-22 2018-19, 2019-20, 2020-21 2019-20, 2020-21, 2021-22 2020, 2021, 2022 No, proposal states
they have not
conducted an audit
so cannot provide
2019-20, 2020-21,
2021-22
B. Development Portfolio (highlight analogous projects) Completed projects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Current projects Yes Yes Yes Yes Yes Yes Yes Yes Yes
Pipeline projects Yes Yes Yes Yes Yes Yes Yes Yes Yes
C. Partnerships and financing for supportive services
Current partnerships Yes Yes Yes Yes Yes Yes Yes N/A Yes Partnerships in the pipeline Yes Yes Yes Yes Yes Yes Yes N/A Yes D. Demonstrated experience obtaining the identified funding sources for the proposed project Yes Yes Yes Yes Yes Yes Yes Yes Yes E. List of projects that have received 9% tax credits Yes Yes Yes Yes Yes Yes Yes No Yes F. Receipt and administration of federal housing subsidies (if applicable) Yes Yes Yes Yes Yes Yes Yes No Yes G. Outstanding debt and repayment terms:

Recourse debt Yes Yes Yes Yes Yes Yes Yes No N/A
Non-recourse debt Yes Yes Yes Yes Yes Yes Yes No Yes
H. Non-Performing Loans
Outstanding balance N/A N/A N/A N/A N/A N/A N/A N/A N/A Duration of delinquency N/A N/A N/A N/A N/A N/A N/A N/A N/A I. Defaulted loans or financial obligations during the past five years N/A N/A N/A N/A N/A N/A N/A N/A N/A J. Legal actions, including fair housing violations, during the past five years Yes Yes Yes Yes Yes Yes Yes, detail provided N/A N/A
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Unit Size AMI No. of Units %
30% 29 24%50% 5 4%
30% 11 9%50% 15 12%30% 4 3%
50% 5 4%
60% 12 10%80% 8 7%
30% 4 3%
50% 8 7%
60% 11 9%80% 8 7%
Manager 3 2%
Total Units: 123 100%
Project Cost
Total Development Cost $104,185,142
TDC Per Unit $847,034
Underwriting Assumptions Proceeds Interest Term (mos.) Operating Budget Construction 75,140,121 $ 7.26-7.59% 32 Total Annual $1,168,500 Permanent Loan 8,961,900 $ 6.66% 40 years Per Unit $9,500 LIHTC Development Timeline Date Duration
Assumes LIHTC Financing Yes Construction Start Oct 2026 Tax Credit Type 4% Construction End Nov 2028 25
Tax Credit Amount $52,976,149 Marketing/Lease-Up Begins May 2028 100% Occupancy Feb 2029 9
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - ABODE COMMUNITIES
2 BR3 BR
Partners The People Concern (supportive services)
AMJ Construction ManagementCalifornia Housing Partnership Studio
1 BR
Project Name Project (no branding name used)Applicant Abode Communities Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Abode Communities Page 3 of 42 Item 1
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Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - ABODE COMMUNITIES
Developer / Team: Summary of Developer Experience, highlighting specific experience in City of Santa MonicaAbode Communities is a 501(c)(3) formed in 1968 and is currently planning to develop 400 affordable family and senior homes in West Los Angeles. Associate Vice President, Development Maegan Pearson is a former member of the City of Santa Monica Architectural Review Board. In that role, Pearson was responsible for preserving Santa Monica’s cultural features, assuring Santa Monica’s built environment remains a place of beauty, spaciousness, and quality; ensuring future development creates a lasting, positive impact on the community; and making decisions that promote public safety and welfare. Abode Communities has no prior experience developing in Santa Monica.Abode Communities will design the project and has partnered with a number of well-established consultants who have experience working in Santa Monica and the Westside.Project Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.The proposed development intends to accomplish the City's goals quickly and cost-effectively by using prefabricated modular construction. Using these methods, the project will result in 120 affordable and PSH units with 3 additional managerial units at a cost of about $847,000/unit and will be completed in 2.5 years. Of the 123 units, 40 permanent supportive housing (PSH) units will be set aside for formerly/chronically homeless households. The unit mix includes 1, 2, and 3-bedroom units. The remaining 80 units will be set aside for households with incomes up to between 30% and 80% of the area median income.A commercial component consists of 25,000+ square feet of ground floor space for offices and parking. An additional 5,000 square feet will be dedicated to amenities and supportive service space for residents. The Project currently contemplates 100 total parking spaces with up to 46 spaces offered as replacement parking for public use.Construction will start in October 2026 with a 26-month completion period after securing financing and finalizing design and permits. Resident move-ins will occur during September 2028 with 100% occupancy in February 2029.

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PROJECT SUMMARY SHEET - ABODE COMMUNITIES
Supportive Services: Identify provider and summarize services concept and funding strategyThe People Concern will provide supportive services on-site to the residents of the 40 PSH units. The People Concern provision of services is contingent on receiving funds from the Los Angeles County Department of Health Services (DHS). A letter of support from DHS is included. There will be supportive services available on-site with on-call crisis management staff for after-hours emergencies. Some of the services provided will include: case management, mental health counseling, physical health care, peer support and advocacy, medication management, transportation, money management, legal assistance, employment services, life skills training, social activities, substance abuse and prevention counseling, and linkage to additional services as needed.Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingApproximately 1/2 of the project's permanent cost ($53M) will be funded by 4% low-income housing tax credits (LIHTC) and State tax credits. Approximately 3/4 of the project's construction cost ($75M) will be funded by tax-exempt and taxable construction loans. The developer requests utilizing the City of Santa Monica Trust Fund for the residential development and a City of Santa Monica Parking Contribution (City fund not identified) for the parking component. The developer is requesting $5.25M ($43,000/unit) from the City's Housing Trust Fund. This would be in the form of a residual receipts note for a 55-year term at 3% interest. The parking contribution funds would not be repaid.The developer proposes a ground lease term of 99 years with an annual residual receipts payment to the City. The ground lease uses a land value of $10M, which results in an annual total residual receipts payment projected to start at approximately $17,000 and to peak at approximately $53,000 in year 31.In 2022-2023 alone, Abode Communities was allocated $52,815,720 in Federal Low-Income Housing Tax Credits for two projects -Western Landing (81 homes) received $20,217,060 in credits and Grandview Apartments (100 homes) received $32,598,660 in credits.

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Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - ABODE COMMUNITIES
Sources Construction Permanent Uses Residential Parking TotalTax Exempt Construction Loan $50,776,380 $0 Land Cost/Acquisition $13,981 $1,019 $15,000 Taxable Construction Loan 24,363,741 - Hard Costs; On-Site 61,988,686 4,234,723 66,223,409 Permanent Loan - 8,961,900 Hard Cost Contingency 6,172,281 450,060 6,622,341 City HTF 5,250,000 5,250,000 Soft Costs 5,085,839 170,093 5,255,932 City: Parking Contribution 2,450,000 2,450,000 Soft Costs Contingency 724,255 52,810 777,065 Infill Infrastructure Grant 4,031,000 4,031,000 Financing Costs 11,647,207 813,100 12,460,307 LP Equity - Federal 4,377,575 43,775,749 Developer Fee 12,285,562 - 12,285,562LP Equity - State 920,040 9,200,400 Operating Reserve 452,604 - 452,604 GP Equity (from Developer Fee) 100 10,085,662 Other Reserves 92,921 - 92,921 Deferred Costs 12,016,306 - Total Uses $98,463,336 $5,721,805 $104,185,141Multifamily Housing Program - 20,430,431Total Sources $104,185,142 $104,185,142Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Abode Communities Page 6 of 42 Item 1
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Unit Size AMI No. of Units %
30% 33 24%
40% 31 22%
50% 32 23%
30% 7 5%
40% 7 5%50% 6 4%30% 7 5%40% 7 5%50% 6 4%
Manager 3 2%
Total Units: 139 100%
Project Cost
Total Development Cost $124,639,287
TDC Per Unit $896,686
Underwriting Assumptions Proceeds Interest Term (mos.) Operating Budget Construction 89,850,000 $ 8.00% 29 Total Annual $1,546,075 Permanent Loan 12,888,300 $ 6.00% 40 years Per Unit $11,123 LIHTC Development Timeline Date Duration
Assumes LIHTC Financing Yes Construction Start May 2025 Tax Credit Type 4% Construction End Oct 2027 29
Tax Credit Amount $53,069,955 Marketing/Lease-Up Begins Jun 2027 100% Occupancy Dec 2027 6
Partners
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - BRIDGE HOUSING
BRIDGE Housing Applicant
1 BR2 BR3 BR
Ascencia & El Nido (supportive services)Koning Eizenberg ArchitectureEumenides Consulting (public outreach) Project Name Santa Monica Family & Santa Monica Senior
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Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - BRIDGE HOUSING
BRIDGE Housing is proposing 139 affordable housing units and 79 replacement public parking places in a two-phase redevelopment of the three (3) cityowned sites. The first phase would include a scattered site Family development on the 14th and 16th St. sites, including 81 units and 58 replacement public parking spaces. The second phase would include a Senior development on the Euclid St. site, including 58 units and 21 replacement public parking spaces. The second phase would include 20 units set aside for seniors currently experiencing homelessness.Construction will start in May 2025 with a 29-month completion period after securing financing, designs, and permits. The Family and Senior phases are anticipated to achieve 100% occupation in August 2027 and December 2027, respectively. Both phases are planned to be fully occupied two months after Developer / Teamconstruction completion. : Summary of Developer Experience, highlighting specific experience in City of Santa Monica BRIDGE is the largest nonprofit 501(c)(3) developer of affordable and workforce housing on the West Coast. BRIDGE brings a 40-year track record of building high-quality affordable and mixed-income housing together with local partners. As a mission-driven nonprofit, BRIDGE pays close attention to the double-bottom line of financial and social return on investment, always in pursuit of quality, quantity, and affordability. Their stated mission is to strengthen communities and improve the lives of residents, beginning — but not ending — with affordable housing. Headquartered in San Francisco, BRIDGE has four regional offices across the West Coast and has a professional staff of twelve in their Los Angeles office, including BRIDGE’s CEO Ken Lombard.

Since 1983, BRIDGE has participated in the development of 18,000 homes, 11,895 of which they currently own or manage in California, Washington, and Oregon. Their Southern California team has more than 80 years of combined affordable housing experience in Los Angeles, Ventura, San Bernardino, Riverside, and Orange Counties. BRIDGE’s current pipeline consists of $3.8 billion in total development costs representing 9,000 homes. BRIDGE has no development experience in Santa MonicaProject Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.

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Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - BRIDGE HOUSING
Supportive Services: Identify provider and summarize services concept and funding strategyAscencia will provide supportive services on site to the residents of the 20 PSH units, using funding for services from the Department of Mental Health and DHS. One case manager and one resident advocate will have offices at the project. Some of the services provided will include: case management, mental health counseling, physical health care, money management, legal assistance, employment services, life skills training, child-related services, substance abuse and prevention counseling, and linkage to additional services as needed.Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingApproximately 70% of the project's construction cost ($56M) will be funded by a bank loan. Permanent financing includes approximately $29 million in lowincome housing tax credits (LIHTC). The cost of the land is included in the project finances, with the funding source for the land coming from the City as well. Aside from the land value, BRIDGE requests project-based vouchers and a $2.7 million ($56,000/unit) loan of City Housing Trust funds for the Family phase. The Housing Trust Fund loan would be in the form of a residual receipts note for a 55-year term at 3% deferred and accrued interest.

The developer proposes a ground lease term of 99 years with a $1,500 annual payment to the City, to increase by a blended rate of approximately 1.8% annually.

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Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - BRIDGE HOUSING
Sources Construction Permanent Uses Residential Parking TotalLoan $89,850,000 $12,888,300 Land Cost/Acquisition $15,000,000 $0 $15,000,000Tax Credit Equity 4,082,613 53,069,955 Hard Costs 60,624,998 6,822,300 67,447,298 City of Santa Monica Land Value 15,000,000 15,000,000 Hard Cost Contingency 3,092,365 - 3,092,365City of Santa Monica - 2,700,000 Soft Costs 9,380,312 - 9,380,312HCD-AHSC - 22,031,941 Soft Costs Contingency 500,000 - 500,000HCD (MHP) - 12,137,508 Financing Costs 18,393,705 - 18,393,705 AHP 1,000,000 1,570,000 Developer Fee 10,241,583 - 10,241,583 GP Equity (Dev. Fee Contribution) 5,241,583 5,241,583 Transition Reserve 104,471 - 104,471Deferred Costs & Fee 9,465,091 Affordability Reserve 479,553 - 479,553Total Sources $124,639,287 $124,639,287 Total Uses $117,816,987 $6,822,300 $124,639,287 Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: BRIDGE Housing Page 10 of 42 Item 1
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Attachment: Written Comments (6933 : Written Comments)
Unit Size AMI No. of Units %
Studio 30% 25 20%
1 BR 30% 37 29%
50% 8 6%
60% 24 19%
50% 8 6%
60% 24 19%
Manager 2 2%
Total Units: 128 100%
Project Cost
Total Development Cost $122,295,110
TDC Per Unit $955,431
Underwriting Assumptions Proceeds Interest Term (mos.) Operating Budget Construction 75,000,000 $ 7.31% 24 Total Annual $1,098,878 Permanent Loan 11,304,986 $ 6.79% 35 years Per Unit $8,585 LIHTC Development Timeline Date Duration
Assumes LIHTC Financing Yes Construction Start Apr 2026 Tax Credit Type 4% Construction End Apr 2028 24
Tax Credit Amount $45,779,432 Marketing/Lease-Up Begins Jul 2028 100% Occupancy Oct 2028 3
Partners Step Up (supportive services)
ONYX Architects
Project Name A Place at the Table (theme)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CESAR CHAVEZ FOUNDATION
Applicant Cesar Chavez Foundation
2 BR3 BR
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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CESAR CHAVEZ FOUNDATION
Developer / TeamThe project strives to improve land use efficiency and maximize the number of units that can be developed for each plot within the allowable range. The proposed development has 128 units. The target populations are low- and very low-income families, with incomes between 30% and 60% AMI, and the chronically homeless population. Approximately 48% percent of the units, including 25 studios and 37 one-bedroom units, will be reserved as permanent supportive housing, whereas 32 two-bedrooms and 32 three-bedrooms will be reserved for very low- and low-income families.After the development secures financing, designs, and permits, construction will start in April 2026, with completion expected after two years. The project is expected to be fully occupied in October 2028. : Summary of Developer Experience, highlighting specific experience in City of Santa Monica The Cesar Chavez Foundation (CCF) was founded in 1966 by renowned civil rights and labor leader César E.Chávez and is a registered Community Housing Development Organization (CHDO) in multiple communities. With more than 50 years of experience as a developer, CCF has evolved into an integrated real estate development company that specializes in producing high-quality service-enriched affordable housing for families, seniors, veterans, and other special needs populations. CCF has a portfolio consisting of 49 developments with, approximately 5,000 affordable multi-family units, located in a variety of communities throughout the Southwest (California, Arizona, Texas, and New Mexico) and has earned a strong reputation for innovative design, commitment to lasting quality and delivery of projects on time and on budget.CCF is vertically integrated, with a Property Management Division that operates and manages CCF’s multi-family and senior apartment communities. CCF has experience developing and managing communities with formerly homeless residents and has collaborated in the past with Step Up on Second Street Inc. (Step Up), a supportive services provider on other projects in LA County. Step Up has almost 40 years of experience in the City of Santa Monica.Project Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.

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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CESAR CHAVEZ FOUNDATION
Step Up will manage the 1146 Sixteenth Street, 26-unit building and provide service to all PSH residents. The services provided include case management, education, financial literacy, and referral services to keep their clients stably housed. CCF’s Property Management team will manage the other 102 units and will provide common services to all units (including the special needs units). The services include ageappropriate services tailored through a needs assessment survey that will be conducted soon after initial move-ins, after-school programming, health or educational workshops, and referral services.Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the Supportive Services:project is requesting City fundingApproximately 60% of the project's construction cost ($75M) will be funded by a construction loan. Permanent financing includes approximately $46 million in low-income housing tax credits (LIHTC). CCF is not seeking construction or permanent financing from the City for this development. Aside from the contribution of the land, the development would utilize project-based vouchers. Other public funding sources include the Los Angeles County Development Authority and State funding sources (AHSC and IIG).The developer proposes a ground lease term of 99 years with an annual payment of $1.

Identify provider and summarize services concept and funding strategy Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Cesar Chavez Foundation Page 13 of 42 Item 1
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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CESAR CHAVEZ FOUNDATION
Sources Construction Permanent Uses TotalLoan $75,000,000 $11,304,986 Land Cost/Acquisition $25,615,000Ground Lease/Land Value 25,600,000 25,600,000 Hard Costs; On-Site 63,345,000 Net Investor Equity 13,733,830 45,779,432 Hard Cost Contingency 3,168,000LACDA 7,000,000 7,000,000 Soft Costs 8,154,570 HCD (AHSC, IIG) - 24,100,000 Soft Costs Contingency 443,859 GP Equity - 3,500,000 Financing Costs 9,227,290Deferred Costs 961,280 5,010,692 Developer Fee 11,500,000Total Sources $122,295,110 $122,295,110 Transition Reserve 119,569 Affordability Reserve 511,822Cost Missing Detail 210,000Total Uses $122,295,110 Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Cesar Chavez Foundation Page 14 of 42 Item 1
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Attachment: Written Comments (6933 : Written Comments)
Unit Size AMI No. of Units* %
30% 15 12%80% 43 35%30% 8 6%80% 25 20%30% 8 6%80% 25 20% Manager* N/A 0%
Total Units: 124 100%
Project Cost
Total Development Cost $114,842,456
TDC Per Unit $926,149
Underwriting Assumptions Proceeds Interest Term (mos.) Operating Budget Construction 62,329,571 $ N/A N/A Total Annual $919,799 Permanent Loan 15,289,848 $ 7% 30 years Per Unit $7,418 LIHTC Development Timeline Date Duration
Assumes LIHTC Financing Yes Construction Start Oct 2025 Tax Credit Type 4% Construction End N/A N/A
Tax Credit Amount $54,964,396 Marketing/Lease-Up Begins N/A 100% Occupancy Dec 2027 N/A
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (LARGE FAMILY) Applicant Community Corporation of Santa MonicaPartners The People Concern (Social Services) Lahmon Architects
* The proposal provided numbers of units at each bedroom size and percentages of total units at each income level. Some rounding was necessary to calculate the numbers in this table. The proposal indicated that there would be an on-site manager, but did not provide a number of manager's units. 1 BR2 BR3 BR
Project Name The Ensemble - Large Family
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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (LARGE FAMILY) Project DescriptionCommunity Corp submitted two separate development concepts for the three sites. To achieve this, the most sensible approach is to submit all three (3) sites as one cohesive development for funding purposes, which requires all sites to be developed and targeted to the same population. The two separate concepts are Large Family housing across the three sites or Senior housing across the three sites. Both concepts are scattered site models that are financed as 100% deed-restricted affordable housing developments for households who earn no more than 80% of the Area's Medium Income. The need for either housing type is reflected in the City’s Housing Element and is consistent with Community Corp’s experience developing in the City of Santa Monica Each proposal includes 25 of the units reserved for formerly homeless and/or chronically homeless individuals, households with disabilities and/ or other special needs populations.The Senior development program includes 147 units, with 75% set aside for households who earn between 30-80% AMI and 25% set aside as Permanent Supportive Housing for households whose incomes range from 0-30% AMI.The Large Family development program includes 124 units with a 75% set aside for households who earn between 30-80% AMI and a 25% set aside as Permanent Supportive Housing to households whose incomes range from 0-30% AMI.Construction end date and lease-up start date are not provided. : Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.

Developer / TeamCommunity Corporation of Santa Monica (Community Corp) is in the business of developing, maintaining, and providing services to the households of its affordable housing developments. Founded in 1982, Community Corp is a certified 501(c)3 non-profit corporation that has developed 2,071 units of affordable housing throughout Santa Monica and more recently in west Los Angeles. Their mission is to provide affordable housing to low- and very-low-income individuals and families within the 30% to 80% annual median income ranges. Community Corp’s primary emphasis is on property management, real estate development, and providing resident services to its affordable, special needs and permanent supportive housing Since 1982 Community Corp has taken the lead on site acquisition, securing zoning and entitlements approvals, securing financing, overseeing the construction process, managing the lease up process, and providing property management and long term asset management oversight to their development sites. Community Corp has a rich history of working with esteemed local architects and demonstrating that affordable housing can be a beautiful asset to any neighborhood Community Corp’s newly constructed properties are proof that innovative design, environmental sustainability and affordable rents are not mutually exclusive on the contrary, they are essential components to building strong communities Collectively the team brings a wealth of knowledge and years of experience with developing affordable housing, leasing, managing, owning and financing affordable housing in Santa Monica and especially in predominantly high resource areas serving a population of low and very low income individuals and families Currently, Community Corp has a strong development pipeline of seventeen 17 development sites in various stages of the development process including in the construction, predevelopment, and acquisition phases with total development costs of approximately $900 million. : Summary of Developer Experience, highlighting specific experience in City of Santa Monica Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Comm Corp of SM - Large Family Page 16 of 42 Item 1
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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (LARGE FAMILY) Financial Summary:Large Family - For construction approximately 2/3 of the project's cost ($62M) will be funded by a permanent loan rather than a capital public subsidy. The next largest funding source is the State Multifamily Housing Program (MHP) providing approx. $20M during construction. The rest of the funding sources are as follows: State Infill Infrastructure Grant Program (IIG) at $7.5M, $5M, and $252K from 4% Federal and State Equity, respectively, another $5M from the Los Angeles County Development Authority (LACDA).Senior - Similar to Large Family, for construction approximately 2/3 of the project's cost ($80M) will be funded by a permanent loan rather than a capital public subsidy. The next largest funding source is the State Multifamily Housing Program (MHP) providing approximately $19M during construction. The remaining funding sources are as follows: State Infill Infrastructure Grant Program (IIG) at $7.5M, $5.6M, and $1.7M from 4% Federal and State Equity, respectively, and another $5M from the Los Angeles County Development Authority (LACDA).The project's timeline notes LIHTC applications planned at 4%.The proposed ground lease is structured as a 55-year (subject to tax credit analysis) residual receipt payments lease. Community Corp projects ground lease payments starting at approximately $80,000 in year one and increasing by about 10-15% each year going forward for a total of $22.5M at the end of the 55-year period. Community Corp estimates this would provide the City with an ongoing revenue source through 55 years larger than what would be provided if paid all at once in the form of a capitalized ground lease payment at the close of construction financing. As opposed to a traditional ground lease structure where annual payments are fixed, under a residual receipts payment structure, annual payment amounts may be variable and differ from values projected by Community Corp.

Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the Supportive Services:The People Concern will offer comprehensive on-site social services for the permanent supportive housing units. Case managers will proactively engage with residents, fostering beneficial social interactions. Community Corp and The People Concern have decades of experience serving lowincome, vulnerable, and unhoused people. Both organizations have in-house staff that provide services and create linkages with other organizations to meet specialized needs.The People Concern will work closely with the City of Santa Monica’s Human Services Division and/or the Santa Monica Housing Authority to lease up the development with residents who meet the criteria of the Santa Monica Program Participants (SMPP) program and who derive from the City of Santa Monica Housing Waitlist. The People Concern will focus on targeting high acuity SMPP's who are high utilizers of public services for the 50 units of permanent supportive housing. This will meet the needs of the most vulnerable who are most likely to die on the streets, and serve to free up community resources for more appropriate interventions for homeless individuals than rather than deploying police, paramedics, or the emergency department.project is requesting City funding Identify provider and summarize services concept and funding strategy Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Comm Corp of SM - Large Family Page 17 of 42 Item 1
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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (LARGE FAMILY) Large FamilySources Construction PermanentBank Loan $62,329,571 $15,289,848LACDA 4,950,000 4,950,000IIG 7,500,000 7,500,0004% Federal Equity 5,243,955 52,439,5484% State Equity 252,485 2,524,848 MHP 20,165,348 20,165,348
Deferred Dev. Fee - 11,972,863
Total Sources $100,441,359 $114,842,455Uses Construction Permanent Land $40,000 $40,000Construction 80,856,794 80,856,794
Replacement Parking 3,744,065 3,744,065
Soft 27,964,442 27,964,442
Soft Cost Contingency 2,237,155 2,237,155
Deferred Costs (2,428,233) -
Developer Fee - Permanent Portion (11,972,863) -
Total Uses $100,441,360 $114,842,456Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Comm Corp of SM - Large Family Page 18 of 42 Item 1
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Attachment: Written Comments (6933 : Written Comments)
Unit Size AMI No. of Units* %
30% 34 23%
80% 101 69%
30% 3 2%
80% 8 5%
30% 0%80% 0%
Manager* 1 1%
Total Units: 147
Project Cost
Total Development Cost $134,639,747
TDC Per Unit $915,917
Underwriting Assumptions Proceeds Interest Term (mos.) Operating Budget Construction 79,533,148 $ N/A N/A Total Annual $1,043,033 Permanent Loan 15,180,064 $ 7.00% 30 years Per Unit $7,095 LIHTC Development Timeline Date Duration
Assumes LIHTC Financing Yes Construction Start Oct 2025 Tax Credit Type 4% Construction End N/A N/A
Tax Credit Amount $74,236,358 Marketing/Lease-Up Begins N/A 100% Occupancy Dec 2027 N/A
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (SENIOR) Partners The People Concern (Social Services)
Lahmon Architects
1 BR2 BR3 BR
The Ensemble - Senior
ApplicantProject Name
Community Corporation of Santa Monica
* The proposal includes 147 units with a unit mix of one and two-bedroom units for seniors. Unit mix details were drawn from submitted architectural plans to arrive at the number of one and two-bedroom units. The proposal provides percentages of total units at each income level. This table applies the percentage to each bedroom unit count total and assumes the presence of one two-bedroom manager's unit.

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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (SENIOR) Developer / Team: Summary of Developer Experience, highlighting specific experience in City of Santa MonicaCommunity Corporation of Santa Monica (Community Corp) is in the business of developing, maintaining, and providing services to the households of its affordable housing developments. Founded in 1982, Community Corp is a certified 501(c)3 non-profit corporation that has developed 2,071 units of affordable housing throughout Santa Monica and more recently in west Los Angeles. Their mission is to provide affordable housing to low- and very-low-income individuals and families within the 30% to 80% annual median income ranges. Community Corp’s primary emphasis is on property management, real estate development, and providing resident services to its affordable, special needs and permanent supportive housing Since 1982 Community Corp has taken the lead on site acquisition, securing zoning and entitlements approvals, securing financing, overseeing the construction process, managing the lease up process, and providing property management and long term asset management oversight to their development sites. Community Corp has a rich history of working with esteemed local architects and demonstrating that affordable housing can be a beautiful asset to any neighborhood Community Corp’s newly constructed properties are proof that innovative design, environmental sustainability and affordable rents are not mutually exclusive on the contrary, they are essential components to building strong communities Collectively the team brings a wealth of knowledge and years of experience with developing affordable housing, leasing, managing, owning and financing affordable housing in Santa Monica and especially in predominantly high resource areas serving a population of low and very low income individuals and families Currently, Community Corp has a strong development pipeline of seventeen 17 development sites in various stages of the development process including in the construction, predevelopment, and acquisition phases with total development costs of approximately $900 million.Project Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.Community Corp submitted two separate development concepts for the three sites. To achieve this, the most sensible approach is to submit all three (3) sites as one cohesive development for funding purposes, which requires all sites to be developed and targeted to the same population. The two separate concepts are Large Family housing across the three sites or Senior housing across the three sites. Both concepts are scattered site models that are financed as 100% deed-restricted affordable housing developments for households who earn no more than 80% of the Area's Medium Income. The need for either housing type is reflected in the City’s Housing Element and is consistent with Community Corp’s experience developing in the City of Santa Monica Each proposal includes 25 of the units reserved for formerly homeless and/or chronically homeless individuals, households with disabilities and/ or other special needs populations.The Senior development program includes 147 units, with 75% set aside for households who earn between 30-80% AMI and 25% set aside as Permanent Supportive Housing for households whose incomes range from 0-30% AMI.The Large Family development program includes 124 units with a 75% set aside for households who earn between 30-80% AMI and a 25% set aside as Permanent Supportive Housing to households whose incomes range from 0-30% AMI.Construction end date and lease-up start date are not provided.

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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (SENIOR) Supportive Services: Identify provider and summarize services concept and funding strategy The People Concern will offer comprehensive on-site social services for the permanent supportive housing units. Case managers will proactively engage with residents, fostering beneficial social interactions. Community Corp and The People Concern have decades of experience serving lowincome, vulnerable, and unhoused people. Both organizations have in-house staff that provide services and create linkages with other organizations to meet specialized needs.The People Concern will work closely with the City of Santa Monica’s Human Services Division and/or the Santa Monica Housing Authority to lease up the development with residents who meet the criteria of the Santa Monica Program Participants (SMPP) program and who derive from the City of Santa Monica Housing Waitlist. The People Concern will focus on targeting high acuity SMPP's who are high utilizers of public services for the 50 units of permanent supportive housing. This will meet the needs of the most vulnerable who are most likely to die on the streets, and serve to free up community resources for more appropriate interventions for homeless individuals than rather than deploying police, paramedics, or the emergency department.Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingLarge Family - For construction approximately 2/3 of the project's cost ($62M) will be funded by a permanent loan rather than a capital public subsidy. The next largest funding source is the State Multifamily Housing Program (MHP) providing approx. $20M during construction. The rest of the funding sources are as follows: State Infill Infrastructure Grant Program (IIG) at $7.5M, $5M, and $252K from 4% Federal and State Equity, respectively, another $5M from the Los Angeles County Development Authority (LACDA).Senior - Similar to Large Family, for construction approximately 2/3 of the project's cost ($80M) will be funded by a permanent loan rather than a capital public subsidy. The next largest funding source is the State Multifamily Housing Program (MHP) providing approximately $19M during construction. The remaining funding sources are as follows: State Infill Infrastructure Grant Program (IIG) at $7.5M, $5.6M, and $1.7M from 4% Federal and State Equity, respectively, and another $5M from the Los Angeles County Development Authority (LACDA).The project's timeline notes LIHTC applications planned at 4%.The proposed ground lease is structured as a 55-year (subject to tax credit analysis) residual receipt payments lease. Community Corp projects ground lease payments starting at approximately $80,000 in year one and increasing by about 10-15% each year going forward for a total of $22.5M at the end of the 55-year period. Community Corp estimates this would provide the City with an ongoing revenue source through 55 years larger than what would be provided if paid all at once in the form of a capitalized ground lease payment at the close of construction financing. As opposed to a traditional ground lease structure where annual payments are fixed, under a residual receipts payment structure, annual payment amounts may be variable and differ from values projected by Community Corp.

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Attachment: Written Comments (6933 : Written Comments)
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - COMMUNITY CORP OF SANTA MONICA (SENIOR) SeniorSources Construction PermanentBank Loan $79,533,148 $15,180,064LACDA 4,950,000 4,950,000 IIG 7,500,000 7,500,0004% Federal Equity 5,667,620 56,676,197 4% State Equity 1,756,016 17,560,161
MHP 18,746,489 18,746,489
Deferred Dev. Fee - 14,023,836
Total Sources $118,153,273 $134,636,747Uses Construction Permanent Land $40,000 $40,000Construction 96,145,144 96,145,144
Replacement Parking 3,773,555 3,773,555Soft 32,112,081 32,112,081 Soft Cost Contingency 2,568,967 2,568,967Deferred Costs (2,459,638) -Developer Fee - Permanent Portion (14,026,836) - Total Uses $118,153,273 $134,639,747Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Comm Corp of SM - Senior Page 22 of 42 Item 1
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Attachment: Written Comments (6933 : Written Comments)
Unit Size AMI No. of Units %
30% 49 49%50% 25 25%60% 24 24%
Manager 3 3%
Total Units: 101 100%
Project Cost
Total Development Cost $68,498,105
TDC Per Unit $678,199
Operating Budget
Total Annual $1,150,209
Underwriting Assumptions Proceeds Interest Term (mos.) Per Unit $11,388 Construction 34,741,095 $ 8.00% 24
Permanent Loan 4,074,381 $ 7.50% 20 yrs. Development Timeline Date Duration Construction Start Oct 2025
LIHTC Construction End Oct 2027 24
Assumes LIHTC Financing Yes Marketing/Lease-Up Begins Jul 2026 Tax Credit Type 4% 100% Occupancy Feb 2027 7
Tax Credit Amount $36,209,095
1 BR
Project Name
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CTY HOUSING
Applicant CTY Housing
N/A (Senior Living Community)
Partners Women Organizing Resources Knowledge +
Services (WORKS)Shelter LLP (Architect)Domus Management Co. (Property Manager)St. Joseph Center (Service Provider) Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: CTY Housing & WORKS Page 23 of 42 Item 1
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Packet Pg. 100 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CTY HOUSING
Developer / Team: Summary of Developer Experience, highlighting specific experience in City of Santa MonicaWORKS is a nonprofit affordable housing development organization committed to developing strong, sustainable communities and partnering with residents to advance family and individual viability. Founded in 1998, WORKS delivers quality affordable housing and enriched services that respond to the aspirations of the people they house.Founded in 2005, CTY Housing, Inc. offers turnkey development and financial advisory services to affordable housing developers, community development financial institutions (CDFIs), foundations, and public agencies. CTY Housing has played a role in the planning and development of more than 8,000 homes for low-income households in California.The development team includes Shelter LLP as the architect, Domus Property Management for property management, and St. Joseph's Center as the lead service provider, responsible for service coordination and intensive case management.The team has more than 12 years of experience developing in Southern California but does not have experience in the City of Santa Monica.Project Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.Located in the Wilshire/Montana and Mid-City neighborhoods, the proposed scattered site development will encompass 3 separate parcels located at 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street. The design program provides a total of 99 affordable one-bedroom homes, all of which will be restricted to low-income seniors (ages 62+), including 49 permanent supportive housing (PSH) units for persons who have experienced homelessness. 1217 Euclid and 1211 Fourteenth Street will each offer the same configuration with 43 units, of which 42 will be onebedroom units and one will be a two-bedroom manager’s unit. The Sixteenth Street property will have 15 one-bedroom units, one of which will be unrestricted for an on-site manager.Each building will have offices for property management and for the supportive services team. All services will be provided on-site. Building amenities in all three sites also include a community room, a secure bike storage room, secured entry, on-site laundry, and an open space courtyard in each building. The Euclid and Fourteenth Street sites will be developed with 4 stories of Type III wood frame construction over a Type I podium. The Sixteenth Street site will be developed with 3 stories of Type III construction. The ultimate design of the development will be molded by community engagement and the participation of many stakeholders.This unit total of 101 is twenty-nine less than the goal stated in the RFP due to the constraints of anticipated land use approvals and construction type.

Four density bonus incentives allowed under AB 1763 (setbacks, lot coverage, and reduction in private and public open space) inform a configuration of 4 stories above a concrete podium. Building another story of residential will change the construction type to a steel frame, which is significantly more expensive to construct than a wood frame.The proposal estimates a 2-year construction period.

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Packet Pg. 101 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CTY HOUSING
Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingThe Development team's strategic goal is to advance the project to construction start as expeditiously as possible with a financing scenario that uses 4% LIHTC and tax-exempt bonds. The financing strategy includes multiple anticipated construction and permanent funding sources.The Development team is proposing a 55-year term with a $30,000 annual ground lease payment.Proforma does include City funding. To ensure financial sustainability long term, the project financial model assumes all net cash flow is swept into an operating reserve account to support operating deficits that occur around year 38. Thus, no repayment is proposed.The developers will provide the general property management services to the residents, and an LOI with St. Joseph Center (SJC) to provide extensive supportive services and intensive case management services to PSH unit residents as well as resident services coordination for the remaining affordable housing units. Services will include green education, general case management, individualized services plans, mental health care, substance use services, eviction prevention, legal advocacy, budgeting and money management, employment/training, life skills development, social/recreational activities, linkage to outside services for wellness, and other services that may be needed by the targeted population.SJC will offer case management services that use a housing-first, trauma-informed care approach while utilizing harm reduction principles to support individuals as they transition into housing. Full-time case managers with a maximum caseload ratio of 1:20 will work with the special-needs tenants and help them gain the independent living skills necessary to assist clients in maintaining their new housing while addressing their health, mental health, and Supportive Services:other social and economic needs.

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Packet Pg. 102 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - CTY HOUSING
Sources Construction Permanent Uses ResidentialConstruction Loan Tax Exempt $34,741,095 $0 Acquisition $0 Tax Exempt Loan - 4,074,381 Construction 50,835,448
City of Santa Monica 15,603,523 17,214,529 Arch, Eng, 3rd Party 3,279,000 AHP - 1,000,000 Permits and Fees 1,612,465IIG 5,000,000 5,000,000 Predevelopment Financing 125,000 LA County NOFA 4,900,000 - Construction Financing 5,919,000LACDA - 5,000,000 Permanent Financing 40,558GP Equity 100 100 Bond/TCAC Fees - Deferred Cost 1,322,192 - Legal 130,000Deferred Developer Fee 1,500,000 - Taxes and Insurance 2,000,0004% Equity 5,431,364 36,209,095 Title and Recording 55,000 Lease Up and Reserves 1,368,634
Developer Fee/Acctg 3,133,000
Total Sources $68,498,274 $68,498,105 Total Uses $68,498,105Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: CTY Housing & WORKS Page 26 of 42 Item 1
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Packet Pg. 103 Attachment: Written Comments (6933 : Written Comments) Unit Size AMI* No. of Units %
Manager 0%
Total Units: 112 54%
Project Cost
Total Development Cost $104,707,012
TDC Per Unit $934,884
Operating Budget
Total Annual $843,360
Underwriting Assumptions Proceeds Interest Term (mos.) Per Unit $7,530 Construction $71,903,506 6.75% 26
Permanent Loan $3,290,447 7.25% 35 yrs. Development Timeline Date Duration Construction Start May 2027
LIHTC Construction End Jan 2029 20
Assumes LIHTC Financing Yes Marketing/Lease-Up Begins N/A Tax Credit Type 4% 100% Occupancy Jun 2029 5
Tax Credit Amount $41,709,644
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - EAH HOUSING
1 BR2 BR3 BR

N/AN/AN/A
52 Partners Engage (Resident Services w/ EAH)
KFA Architecture (Architect)AMJ Construction ManagementBocarsly Emden Cowan Esmail & Arndt LLPCalifornia Housing Partnership 3228
46%29%25%
Project Name 1217 Euclid Street, 1211-1217 Fourteenth
Street, and 1146 Sixteenth Street
Applicant EAH Housing* The proposal did not provide a breakdown of the units by income. The proposal "assumes a mix of incomes from extremely low 30% AMI individuals and families up to moderate-income individuals and families at 80% AMI with an average of 50% AMI for the project. The 50% average was selected as this is what will be needed to include the best unit mix for Santa Monica while keeping the project competitive for AHSC funding from the state." Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: EAH Housing Page 27 of 42 Item 1
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Packet Pg. 104 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - EAH HOUSING
Developer / Team: Summary of Developer Experience, highlighting specific experience in City of Santa Monica EAH Inc. (dba EAH Housing) is a 501(c)(3) nonprofit organization founded in 1968 in response to social justice issues. EAH Housing is one of the oldest and most experienced nonprofit development and management organizations in the western United States and continues to address inequities brought about by the lack of affordable homes in our communities. The mission of EAH Housing is to expand the range of opportunities for all by developing, managing, and promoting quality affordable homes and diverse communities. EAH Housing serves low-income families, seniors, previously unhoused individuals, farmworkers, veterans, students, transitional-age youth, and people with special needs. EAH believes that well-designed affordable homes are the cornerstone of sustainable, healthy, and livable communities. A roof is just the beginning.Since 2002, EAH Housing has developed and managed affordable housing in Southern California including apartment communities in Los Angeles County, Orange County, and Riverside County. In 2016, EAH opened its first formal Southern California office in Downtown Santa Monica and since then, has completed or is in the process of developing 10 affordable housing communities in Los Angeles County, including three in Santa Monica. In 2022, EAH Housing completed the construction of a 40-unit senior affordable housing project named Magnolia Villas.Project DescriptionThe vision for the development of 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street is a 100% affordable family community that provides 112 new homes for residents of Santa Monica. The development will serve large families, small families (including individuals), and single-parent households earning 30% to 80% of the Area Median Income (AMI). The community offers a total of 52 one-bedroom, 32 two-bedroom, and 28 three-bedroom units, providing housing for up to 300 residents. As with our past developments within the City of Santa Monica, all residents will be referred from the City-maintained list of prospective applicants with a priority for those who live or work in Santa Monica.To ensure a cost-effective project and minimize City Housing Trust Fund investment, the development provides 25 replacement parking spaces across all three sites. 10 surface parking spaces on each of the double lots located at 1217 Euclid Street and 1211-1217 Fourteenth Street and 5 surface parking spaces at 1146 Sixteenth Street. The public parking spaces will provide access to the adjacent commercial establishments while maximizing the amount of housing provided at each site. For residents, a total of 58 private parking spaces will be provided across all three sites within one level of subterranean parking that will be key fob access only.Each building will be 6 stories with 5 stories of type IIIA construction over 1 story type IA. The total gross building area is 103,900 square feet of type IIIA residential over 24,750 square feet of type IA first floor and 28,200 square feet of parking. The six-story buildings will be broken down into a variety of smaller components through the introduction of different materials, horizontal and vertical wall plane offsets, and a large opening peeking into the courtyard at the double-lot sites. The design language of all the sites will be similar, yet unique, to create a cohesive community.The proposal estimates a construction term of approximately 20 months. : Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.

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Packet Pg. 105 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - EAH HOUSING
Supportive Services: Identify provider and summarize services concept and funding strategyOn-site services will be provided within the community rooms of each development site and tailored to meet the robust and individual needs of residents. In partnership with an EngAGE Program Director, the EAH Resident Services Coordinator will coordinate and implement regular and ongoing services for all residents and work hand-in-hand with the resident manager, maintenance staff, and any third-party case management partners to support our most vulnerable residents.Programming designed to promote healthy living, encourage community building and social connectedness, provide practical hands-on learning and enrichment, and build up leadership skills along with events and celebrations will be provided to the community a minimum of 84 hours per year.EAH's partner services provider, EngAGE, will provide an additional 80 hours per month to the community and contribute to the success of resident outcomes.Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingEAH has an excellent track record of securing public and private funding necessary to develop and operate permanently affordable housing. At the front end, the key to economic feasibility and financial leverage is to keep development costs as low as feasible – EAH does this through costeffective design, building systems and methods.Given this early concept stage, initial cost estimating is prudently conservative. Hard costs were estimated using data from similar projects provided by AMJ Construction Management, and soft cost estimating is consistent with several of our prevailing-wage Southern California projects of similar scale and building type. To come up with the most effective structure to finance the project while at the same time maximizing any capital return to the City of Santa Monica, the development team evaluated several financial structures. Our process included running multiple models as well as working with our financial consultant and obtaining input from several prominent lending institutions that regularly finance projects like these. The combined input of all the various experts led to the model we are presenting, which we believe to be the most effective way to finance this project.Along with conventional debt and 4% tax credits, various public sources were assumed and are described in the following table.

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Packet Pg. 106 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - EAH HOUSING
Sources Construction Permanent Uses ResidentialConstruction Loan $71,903,506 $0 Acquisition $15,030,000 Amortizing Perm Loan, Tranche A - 3,290,447 Relocation - Amortizing Perm Loan, Tranche B - - Hard Cost 67,721,243Tax Credit Investor Proceeds 6,256,447 41,709,644 Architecture and Engineering 2,069,400GP Equity - 5,605,733 Construction Financing 7,028,004 Deferred Developer Fee - 3,059,046 Permanent Financing 100,054 City of Santa Monica Land 15,000,000 15,000,000 Legal 225,000AHSC - 30,218,000 Reserves 316,915IIG* 5,824,143 Other Soft Cost 1,086,306 Developer Fee 11,130,091
Total Sources $93,159,952 $104,707,013 Total Uses $104,707,013Sources & Uses:*The proposal summary table of sources does not show IIG funding and the individual sources do not originally sum to the total. The proposal narrative references the use of IIG funding. It is assumed that IIG funding would comprise the entirety of the difference between the sum of the listed sources and the listed total.

Highlight sources and uses of potential funding
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Packet Pg. 107 Attachment: Written Comments (6933 : Written Comments) Unit Size AMI No. of Units %
Studio 60% 13 10%
30% 40 31%60% 8 6%
60% 27 21%70% 7 5%
50% 26 20%70% 6 5%
Manager 3 2%
Total Units: 130 100%
Project CostTotal Development Cost $97,341,041TDC Per Unit $748,777 Underwriting Assumptions Proceeds Interest Term (mos.) Operating Budget Construction Loan $74,182,174 7% - 7.5% 26 Total Annual $870,070 Permanent Loan $9,794,409 6.50% 15 years (30- year amort.) Per Unit $6,693 LIHTC Development Timeline Date Duration
Assumes LIHTC Financing Yes Construction Start May 2026 Tax Credit Type 4% Construction End Dec 2027 19
Tax Credit Proceeds $56,246,532 Marketing/Lease-Up Begins Jun 2027 100% Occupancy Apr 2028 10
Partners The People Concern (PSH Support Services)
Kevin Daly ArchitectsMorley Builders
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOLLYWOOD COMMUNITY HOUSING CORP 1 BR2 BR
Applicant Hollywood Community Housing CorpProject Name 1217 Euclid Street, 1211 – 1217 Fourteenth Street, and 1146 Sixteenth Street 3 BR
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Packet Pg. 108 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOLLYWOOD COMMUNITY HOUSING CORP Developer / TeamThe proposed development intends to accomplish the City's goals for the three Wilshire sites by providing affordable and permanent supportive housing units, office space for services, ample community and open space, and resident parking. The project will result in 130 affordable and PSH units at a cost of $748,777 per unit and will be completed in 3 years. Of the 130 units, 40 PSH units will be set aside for formerly/chronically homeless households. The unit mix across the three sites includes studio,1, 2, and 3-bedroom units. The target population for the 40 PSH units at the Euclid site will be Santa Monicans experiencing homelessness. The remaining units will be set aside for households making 50-80% AMI.The residential units at each site will be placed around internal courtyards, community spaces, and terraces, and each site will also include a roof deck for recreation. The ground floors of each proposed site will include office space for support services and community gathering spaces. HCHC's base proposal includes resident parking (a total of 96 ground-level resident parking spaces across the three sites) as well as 9 public parking spaces. In this scenario, the two larger sites would each include one level of underground parking while the 16th St site would include a semi-subterranean garage. HCHC also provided an alternate parking proposal with expanded underground parking garages that would increase resident parking to a total of 114 spaces and provide 43 public parking spaces. : Summary of Developer Experience, highlighting specific experience in City of Santa Monica Hollywood Community Housing Corporation (HCHC) is a 501(c)(3) non-profit public benefit corporation with over 30 years of experience in developing 100% affordable housing in Los Angeles County. Formed in 1989, HCHC worked to rehabilitate and maintain affordable housing in Hollywood and adjacent areas, particularly housing for persons living with HIV/AIDS. Since then, HCHC has developed and expanded its experience to include a range of housing types - a total of 30 buildings that serve diverse communities throughout Los Angeles County with 3 more under construction and more in pre-development. HCHC has worked with the City of Santa Monica on the development of Step Up on Colorado (Kaufmann Apartments), which provides 34 studio units that support chronically homeless individuals.The project is to be designed by kevin daly Architects (kdA), whose portfolio includes the Gramercy Place Apartments and Broadway Affordable Housing projects in the City of Santa Monica. HCHC's proposal for the Wilshire Sites includes 40 units of PSH at the Euclid site as well as onsite support services provided by their partner, The People Concern (TPC). TPC has provided services to PSH residents since 1993, including over 1,000 project-based vouchers and other housing subsidies in contracts with the City of Santa Monica, HACLA, and HACoLA, and through contracts with the Department of Health Services.Project Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.

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Packet Pg. 109 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOLLYWOOD COMMUNITY HOUSING CORP Supportive Services: Identify provider and summarize services concept and funding strategyThe People Concern will provide supportive services on-site to the residents of the 40 PSH units, in addition to non-PSH units as needed, in approximately 828 square feet of space including offices and conference rooms. TPC receives funding for services from the Department of Mental Health and DHS (letter from DHS included), for up to $360,000 per year. Two case managers on-site at the Euclid site will provide wrap-around services to the residents, including intensive case management services which follow TPC's full PSH supportive services plan and follow harm reduction and trauma-informed care (TIC) strategies. In addition, a full-time Resident Services Coordinator will provide service coordination and linkages to the sites' 87 general affordable units. Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingThe developer (HCHC) is proposing to finance all 130 units across the three sites in a single phase. The financing proposal includes a combination of public and private financing including 4% Low Income Housing Tax Credits (LIHTC). The primary sources of competitive public financing included in the proposal are The CA Dept of Housing and Community Development's Affordable Housing and Sustainable Communities (AHSC) program, HCD's Infill Infrastructure Grant Program, and the 4% LIHTC.HCHC is requesting that the City donate the value of the land to the proposed project and a commitment of 40 project-based vouchers for the proposed 40 PSH units.Proposed ground lease term of 65 years with a $1 per year payment to the City and additional annual ground lease payments according to the City's pro rata share of residual receipts.

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Packet Pg. 110 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOLLYWOOD COMMUNITY HOUSING CORP Construction Sources Construction Permanent Sources Permanent Tax-Exempt Loan $49,197,995 AHSC $25,000,000 Taxable Loan 24,984,179 Tax-Exempt Loan 9,794,409 Infill Infrastructure Grant 6,000,000 Infill Infrastructure Grant 6,000,000 Tax-Credit Equity 14,061,633 Federal LIHTC Equity 45,373,546 Costs Deferred Until Conversion 2,797,134 State LIHTC Equity 10,872,986 Total Sources $97,341,041 Total Sources $97,341,041 Uses Residential
Land Cost/Acquisition $115,000Construction Costs (incl Contingency) 75,193,055Architecture & Engineering 3,693,687Construction Loan Costs 8,856,000Permanent Loan Costs 112,944 Legal 215,000Capitalized Operating Reserve 552,447
Transition Reserve 607,173
TCAC & CDLAC & Other Financing Fees 451,002Other Costs* 4,969,732 Developer Fees 2,575,000Total Uses $97,341,041Deferred Developer Fee & General Partner Equity *Includes Development Impact Fees, Permit/Utility Fees, Soft Cost Contingency, etc. 300,100 Deferred Developer Fee & General Partner Equity 300,100 Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Hollywood Comm Housing Co Page 34 of 42 Item 1
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Packet Pg. 111 Attachment: Written Comments (6933 : Written Comments) Unit Size AMI No. of Units %
Total Units: 185 100%
Project CostTotal Development Cost $30,423,650TDC Per Unit $164,452 Underwriting Assumptions Proceeds Interest Term (mos.) Operating BudgetConstruction $21,296,555 7.50% Total Annual $243,029 Permanent Loan $2,583,446 5% 10 years (35 year amort.) Per Unit $1,314 LIHTC Development Timeline Date Duration
Assumes LIHTC Financing No Construction Start Jan 2026
Tax Credit Type N/A Construction End Dec 2027 23
Tax Credit Proceeds N/A Marketing/Lease-Up Begins Sep 2027 100% Occupancy Jul 2028 10
Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOUSING DIVERSITY CORP
N/A 185 100% Studio
Applicant Housing Diversity Corporation
1217 Euclid Street, 1211-1217 Fourteenth Street, & 1146 Sixteenth Street Partners* The proposal did not provide a breakdown of the units by income. The proposal suggests "providing mixed income housing options forindividuals with incomes ranging from 20% to 120% of the Area Median Income (AMI)." Later, the proposal refers to "rents between 30% and 111% of the AMI." Danielian Associates (architect)STS Construction Services Project Name
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Packet Pg. 112 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOUSING DIVERSITY CORP
Developer / Team: Summary of Developer Experience, highlighting specific experience in City of Santa MonicaHousing Diversity Corporation (HDC) is a Seattle-based developer founded in 2019. Previous projects have included 3 in LA County that include designated extremely low income (ELI) units. HDC has no prior experience developing in Santa Monica and has no prior 100% affordable project experience.The project is to be designed by Danielian Associates, who have worked previously with the City of Santa Monica as a consultant providing feasibility studies for increased RHNA needs. Danielian Associates has experience with projects that include affordable units, including The Eden and Sakura Crossing Apartments developments. HDC's proposal does not include any PSH units or onsite support services for residents. Project Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.

The proposed development intends to accomplish the City's goals for the three Wilshire sites by providing transit-oriented housing. The project will result in 187 units at a cost of $164,452/unit. No units are specifically designated as affordable units; HDC's concept is "rooted in the idea that smaller floor areas naturally lead to affordable rents and limits the upper end that can be charged for those units". The unit mix across the three sites includes only studio units.The site plans for each of the three sites include space for additional amenities. HDC's proposal does not include parking.

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Packet Pg. 113 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOUSING DIVERSITY CORP
Supportive Services: Identify provider and summarize services concept and funding strategyHDC's proposal does not include services for tenants. The proposal states, "HDC will not be providing any services for our tenants. However, tenants who are on tenant-based vouchers may receive services through their service program."Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingThe developer (HDC) is proposing to finance the development of all three sites with a private 70% loan-to-cost construction loan at a 7.50% interest rate.HDC is requesting that the City donate the value of the land to the proposed project.HDC's proposal does not identify any ground lease terms.

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Packet Pg. 114 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - HOUSING DIVERSITY CORP
Pre-Development Sources Pre-Development Construction Sources Construction Euclid & 14th St Euclid & 14th St Equity Contribution $2,318,948 Pre-Development Equity Contribution $2,318,948 Construction Equity Contribution 3,629,439 Construction Loan 13,879,570 16th St 16th St Equity Contribution 1,250,550 Pre-Development Equity Contribution 1,250,550 Construction Equity Contribution 1,928,158
Construction Loan 7,416,985
Total Sources $3,569,498 Total Sources $30,423,650 Uses Euclid & 14th St 16th St TotalLand Cost/Acquisition $0 $0Hard Cost 13,635,960 7,378,020 21,013,980 Hard Cost Contigency 681,798 368,901 1,050,699Fixtures & Furniture 62,446 30,807 93,253Lease-Up Expenses 40,761 20,109 60,870 Entitlement Soft Cost 1,823,249 961,577 2,784,826Construction Soft Cost 1,215,499 641,051 1,856,550 Development Fee 991,398 529,785 1,521,183
Construction Loan Lender Fee 138,796 74,170 212,966
Construction Loan Sponsor Fee 138,796 74,170 212,966
Construction Loan Broker Fee 138,796 74,170 212,966
Sr. Interest Reserve 960,459 442,935 1,403,394
Total Uses $19,827,957 $10,595,693 $30,423,653
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Packet Pg. 115 Attachment: Written Comments (6933 : Written Comments) Unit Size AMI No. of Units %
Manager 1 1%
Total Units: 130
Project CostTotal Development Cost $59,563,420TDC Per Unit $458,180Operating Budget Underwriting Assumptions Proceeds Interest Term (mos.) Total Annual $978,510 Construction $48,855,813 9.02% - 9.27% 33 Per Unit $7,527Permanent Loan $3,320,000 8.098% 35 years Development Timeline Date Duration
LIHTC Construction Start Nov 2026
Assumes LIHTC Financing Yes Construction End May 2028 18 Tax Credit Type 4% Marketing/Lease-Up Begins May 2028
Tax Credit Amount $33,270,487 100% Occupancy Oct 2028 5 Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - MENORAH HOUSING FOUNDATION
30%50%
1339
Studio
10%30%
Applicant Menorah Housing FoundationProject Name Euclid, 14th Street, and 16th Street Scattered Sites 30%
50%
2057
15%44%
Partners Albert Group Architects
Alpha ConstructionCalifornia Housing PartnershipCommunity Outreach Three6ixty 1 BR
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Packet Pg. 116 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - MENORAH HOUSING FOUNDATION
Developer / TeamThe proposed development intends to accomplish the City's goals for the three Wilshire sites by providing affordable units and on-site services for residents who are solely lower-income older adults. The project will result in 130 affordable units at a cost of $458,180/unit and will be completed in 4 years. No PSH units are proposed by MHF. The unit mix across the three sites includes studio and 1-bedroom units. The target population for all units is extremely-low and low-income seniors age 62 and older, including homeless and medically frail individuals.The residential units at each site will be focused on universal design features to support aging residents. All units will be fully disable-accessible and adaptable to changing resident needs. Each of the sites will include an open-air courtyard with landscaped planters and decks for community gathering on each floor. Each site will also include a Service Coordinator office on the ground floor. MHF proposes no resident parking at the sites but proposes a total of 76 replacement parking spots (30 at the Euclid St site, 30 at the 14th St site and 16 at the 16th St site) for the City of Santa Monica. : Summary of Developer Experience, highlighting specific experience in City of Santa Monica Menorah Housing Foundation (MHF) is a 501(c)(3) non-profit corporation with over 50 years of experience in developing affordable housing for senior adults (age 62+) in Los Angeles County. Their mission-driven approach to design includes elements such as fully disabled-accessible bathrooms, minimized trip hazards, high-contrast signage, and distinct floor designs to maximize accessibility and comfort for aging residents. MHF manages its own buildings and provides support services to residents. These services include case management, needs assessments, and referrals to other social/medical services.The project is to be designed by Albert Group, a full-service architecture firm with dozens of residential and multi-use developments completed or under construction, many in LA County. Project Description: Highlight the project's description, occupancy profile, ground floor plan, and how the project meets the RFP objectives.

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Packet Pg. 117 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - MENORAH HOUSING FOUNDATION
Supportive Services: Identify provider and summarize services concept and funding strategyThe Menorah Housing Foundation (MHF) has an internal Service Coordinator program. The current SC program is funded partially by building operations, grants, and MHF. MHF currently has a team of 10 Service Coordinators who have provided on-site support services to almost 1,600 very low-income seniors over MHF's 18 properties. MHF proposes an additional 2 SCs to cover the three Wilshire sites and a dedicated office at each site. Service Coordinators will offer case management services to address goals such as substance use reduction, medical issues, and isolation prevention, assist with accessing public benefits, and offer support for budgeting and financial management.MHF also proposes working in cooperation with the City of Santa Monica and Providence St. John's Health Center to create a model to allow chronically homeless and medically frail older adults who use emergency rooms as primary care to be integrated into the referral process for lease-up at the Wilshire sites. MHF believes that this partnership could help these individuals receive better care at home and foster a sense of community. Financial Summary: Summarize financing strategy, identify proposed operating subsidies, proposed Ground Lease structure and whether the project is requesting City fundingThe developer (MHF) is proposing to finance all 130 units across the three sites in a single phase. The financing proposal includes a combination of public and private financing including 4% Low Income Housing Tax Credits (LIHTC).MHF is requesting that the City donate the value of the land to the proposed project. MHF requests that the City provide additional funding if the City would like to maximize parking. The funding would be used to invest in sub-terranean parking at the sites. MHF also proposes that the City allow MHF to work with Saint John's to house medically frail older adults living in the community.Proposed ground lease term of 99 years with a $1 per year payment to the City and additional annual ground lease payments according to the appraisal of the land valuation and subject to Limited Partner tax counsel approvals will be paid from the remaining 50% of projected cash flow after the residual receipt payments.

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Packet Pg. 118 Attachment: Written Comments (6933 : Written Comments) Wilshire Sites RFP Responses

PROJECT SUMMARY SHEET - MENORAH HOUSING FOUNDATION
Construction Sources Construction Permanent Sources Permanent Loan $48,855,813 Tax-Exempt Loan $3,320,000 Costs Deferred Until Loan Closing 7,380,459 CA HCD Multi-Family Housing Loan 17,575,000 General Partner Equity 100 Impact Waiver Fee 945,000 Limited Partner Equity 3,327,049 Deferred Developer Fee 4,452,833 Costs Deferred Until Conversion General Partner Equity 100 Limited Partner Equity 33,270,487
Total Sources $59,563,421 Total Sources $59,563,420
Uses Residential
Land Cost/Acquisition $480,000
Construction Costs (incl contingency) 36,972,130
Soft Costs 4,690,000Soft Costs Contingency 500,000
Other Soft Costs 8,943,507Developer Fees 6,952,833
Financing/Costs of Issuance 1,024,951Total Uses $59,563,421 Sources & Uses: Highlight sources and uses of potential funding Prepared by: Harris and AssociatesRFP: Wilshire SitesProposal: Menorah Housing Found Page 42 of 42 Item 1
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Packet Pg. 119 Attachment: Written Comments (6933 : Written Comments) 3 David Yakobson
From: Adelaide Kahn-Fowler <[email protected]>
Sent: Saturday, February 22, 2025 11:36 AM
To: Nikima Newsome; Clerk Mailbox; [email protected]; Susan Cola; Michelle M. Hugard
Cc: Corin L. Kahn
Subject: Companion Documents PART III to "On-Going City Business: Non-Agendized Item" RE Corin L. Kahn
Attachments: ATTACHMENT PART III of V.pdf

EXTERNAL
Hello,
Please see companions attachments, Part III of V, to a letter sent by Corin L. Kahn on February 20, 2025 pertaining to "On-Going City Business: Non-Agendized Item for Council Meeting Tuesday, February 25, 2025."
Best,
Adelaide
–
A
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Packet Pg. 120 Attachment: Written Comments (6933 : Written Comments)

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Packet Pg. 121 Attachment: Written Comments (6933 : Written Comments) December 22, 2023
Ayala Scott
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
Re: Responses to Follow-Up Questions dated December 8, 2023 City of Santa Monica RFP for properties located at 1217 Euclid Street, 1211 – 1217 Fourteenth Street and 1146 Sixteenth Street Dear Ayala:

Thank you for the follow-up questions to our Request for Proposal (RFP) submission.

On behalf of our organization, and our partners including The People Concern (TPC) and Kevin Daly Architects (kdA), we have prepared the following responses.

1. Please describe your approach towards ensuring successful development and operation of this housing with The People Concern, given that your organizations have not previously completed a supportive housing development together.

Response: HCHC and TPC are confident the mission alignment, organizational compatibility and depth of experience of our two organizations will help to ensure the successful development and operation of the proposed project. Because I knew John Maceri, CEO of TPC, from my five years of leading Community Corporation of Santa Monica, John was quick to say “yes” to the partnership and to introduce us to Julie DeRose and Melissa Vollbrecht, TPC’s Chief Program Officer and Deputy Chief of Programs. The process of collaborating with Julie and Melissa during multiple meetings to discuss design, programing and budgets for the RFP submission was indicative of how our organizations will work well together in the future. The conversations revealed common commitments to the principals of trauma-informed care, design excellence, planning for future programming, and budgets that reflect the realities of serving people who have experienced homelessness.

The Coordinated Entry System (CES) and regulations governing funding sources are established, and TPC and HCHC both know how to maintain high standards of compliance, while at the same time remaining flexible to the unique needs of each person we serve. Both organizations have long histories of successful service and development-oriented partnerships across Los Angeles County and TPC has strong relationships with current Santa Monicans and our future residents. TPC’s longstanding presence in the City, with over 150 shelter beds, uniquely allows for continuity between Santa Monica’s current Supportive Services portfolio and this project’s proposed permanent supportive housing (PSH) program. TPC’s ability to provide Case Manager continuity, readily scale their support staff as needed, and supply relevant Case History assure the success of our first partnership.

Board of Directors
Fr. Michael D. Gutierrez
President
Nisha N. Vyas
Vice President
Rayne Laborde Ruiz
Secretary
Rocky Collis
Treasurer
Amerie Archie
Elena Frias
Lynn Hansen
Cynthia Phung
Executive Director
Sarah Letts
5020 Santa Monica Blvd.

Los Angeles, CA 90029
Phone: 323.469.0710
Fax: 323.468.1800
hollywoodhousing.org

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Packet Pg. 122 Attachment: Written Comments (6933 : Written Comments) HCHC collaborated with TPC on the proposed building design and services plan to ensure the buildings will include spaces that meet TPC’s and their clients’ needs when receiving intensive case management services (ICMS). Informed by discussions with TPC, the design includes service provider office spaces and private meeting areas on the ground floor of the Euclid St site; placement of all PSH units at Euclid St so tenants can easily access services; and interior courtyards and gathering spaces for residents to socialize. Upon the building’s opening, TPC and property management will set up monthly meetings, and will increase the frequency to weekly or daily if needed. Meetings will include ongoing collaborative discussions about client stabilization interventions and action plans to ensure needs are met and issues are resolved. Prior to the building opening and resident move-in, staff from both agencies will have been trained on the fourstep retention process that TPC employs to ensure a proactive system is in place that focuses on best practices in PSH. Aside from monthly meetings, quarterly meetings will also be held between the onsite resident manager and HCHC to address any operational challenges.

In summary, HCHC and TPC as organizations have compatible missions, experiences and systems, and organizational stability to ensure a lasting partnership that will benefit the project’s residents and the broader community as we all work together to address the housing and homelessness crisis.

2. In addition to the dedicated supportive services described in your proposal, how would your organization successfully operate a mixed PSH/general population development, if the formerly homeless residents may have very different needs and barriers to staying housed from the general resident population in the same building (such as acute mental health conditions?) Please provide any examples of your experience with this in past developments.

Response: The answer to “how” HCHC will ensure the successful operation of a building with both PSH and general affordable residents derives from our more than twenty years of experience owning, operating, serving and collaborating with other service providers.

HCHC is committed to meeting the unique needs of each resident, to breaking down barriers, and to fostering community among all residents of a building.

Furthermore, we strive to hone techniques, communication strategies, and processes to ensure that HCHC and service agencies who partner with us are supportive and respectful of the needs of all people who reside in our buildings.

Our design concept for each of the three sites reflects the combined experience of HCHC and TPC and our knowledge of the specific needs of onsite staff and the anticipated residents. TPC has specific requirements for offices used by staff providing services and HCHC has specific requirements for onsite management, security, and asset and property management considerations.

HCHC has extensive experience successfully operating 100% PSH and mixed residency buildings and in just the last four years has opened five mixed-residency buildings, detailed below.

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Packet Pg. 123 Attachment: Written Comments (6933 : Written Comments) Building name
(Location in LA County)
Total units
(PSH units)
Year
completed
Palm Vista Apartments (Winnetka) 91 (44) 2023
Stanford Apartments (Compton) 85 (53) 2021
Florence Mills Apartments (Historic South Central) 74 (19) 2021 Gramercy Place Apartments (Arlington Heights) 64 (31) 2021 Palo Verde (El Monte) 49 (25) 2019
From our experience and in partnership with TPC, we feel operational and service success at mixed-residency buildings stems from all agencies involved working together to develop an integrated community where residents learn from one another. All residents will be encouraged to participate in community events and utilize community spaces. Wellness and life skills courses will focus on improving health and well-being for all residents. In addition to the ICMS TPC will provide to PSH households, HCHC will provide Resident Service Coordinator services to the remaining 87 general affordable units.

HCHC’s resident services department has successfully operated a Housing Authority City of Los Angeles (HACLA) Continuum of Care contract for over 20 years in which 112 chronically homeless tenants reside in 10 different sites, the majority of which are mixed general affordable and PSH buildings. In the last five years, our housing retention rate has remained above 95% and during the prior 12 months, our housing retention rate was over 98%. Under the guidance of HCHC’s Director of Resident Services and based upon the principles of trauma informed care, Resident Services Coordinators develop meaningful rapport with high acuity residents such as those with unaddressed mental health conditions to provide linkage to mental health services and assist with housing retention. We are also highly proactive communicating concerns immediately to property management and our service partners in an effort to assist residents as quickly as possible and before problems escalate. This is achieved through consistent and ongoing meetings with all parties involved including the residents.

3. What are some examples of previous community engagement success educating neighbors and other community stakeholders about supportive housing? Response: Most recently, HCHC has engaged in robust community engagement exercises at Walnut Park Apartments (Walnut Park), Stanford Apartments (Compton), Gramercy Place Apartments (Arlington Heights), and Palm Vista Apartments (Winnetka) including holding information sessions for nearby residents about the proposed developments, taking community members on tours of HCHC’s existing buildings, and inviting current residents of our PSH buildings to speak at engagement events. We also hold events and share written materials in multiple languages to ensure we reach as broad an audience as possible, engage with local organizations to reach specific stakeholder groups, and hold focus groups to address and destigmatize PSH. We invite our service partners, such as TPC, to join us in these efforts as we have found it is important for organizations already working in the community to contribute to conversations. As previously discussed, TPC is already engaged with residents of Santa Monica and can speak to the positive outcomes of providing housing stability and intensive services to people who have experienced homelessness.

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Packet Pg. 124 Attachment: Written Comments (6933 : Written Comments) In many outreach efforts, our team uses design as a starting point for conversation. We have found that a series of smaller gatherings, timed to accommodate different schedules, allows for greater participation and tends to yield feedback we can incorporate into the design and project concept. Similarly, presenting multiple design options, rather than a single solution, encourages conversation and often leads to more personal feedback. We will make ourselves available to community members through meetings, office hours and a bilingual web presence, and we will also advocate for the future residents and the overwhelming need for service-enriched affordable housing.

Recently, at Gramercy Place Apartments, HCHC and kdA were able to address concerns arising from the proposed development of PSH on a site that is adjacent to a single-family neighborhood. Early in the process, we worked through the formal neighborhood council called United Neighborhoods Neighborhood Council (UNNC) and participated in dialogue through public meetings at their Planning and Zoning Committee and Board meetings. Through these public meetings we met individuals in the community who were willing to open their homes for smaller meetings. HCHC and representatives from kdA would bring collateral material to these house meetings, including the architectural model and information about HCHC services and programs, and engage in conversation about a wide range of topics. Next, our team led a series of interactive workshops including a design charette, using digital renderings, diagrams, and physical models, which facilitated more informed community feedback and clear communication between all stakeholders. Our workshops led to higher support for PSH in the community in addition to design changes which better complement the Arlington Heights neighborhood. The community engagement process was so successful that an owner of a single-family dwelling that is immediately adjacent to the site wrote a “Yes in My Backyard” letter in support of Gramercy Place Apartments.

Our relationship with UNNC has continued and the property’s community room has truly become a space for the entire community. For example, UNNC has moved most of their committee and board meetings to the Gramercy Place Apartments community room. Through the community engagement process we heard from stakeholders they wanted to enliven Washington Blvd so we incorporated 2,400 square feet of commercial space facing the boulevard. The UNNC recommended a nonprofit called reDiscover Center (arts programs for young people and a maker space for adults) and reDiscover has moved into the commercial space and has become a wonderful resource for the broader community.

4. What are some examples of previous community engagement success educating prospective residents of the developments and other community stakeholders about cost impacts of maximizing parking and strategies to reduce reliance on parking?
Response: Gramercy Place Apartments had one level of subterranean parking that could accommodate 54 resident parking spaces for 64 units. As previously described, the community engagement process for Gramercy Place Apartments was very successful and through that process we were able to address concerns Item 1
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Packet Pg. 125 Attachment: Written Comments (6933 : Written Comments) about how challenging it is for community members to find street parking. For the Santa Monica sites, we will implement lessons learned over the years and employ new models of community engagement to build consensus around a multi-modal future for the City of Santa Monica. We plan on using established networks and relationships to do the hard work to build support for the proposed development. In building a coalition of different interest groups in the neighborhood, which will likely include religious groups, cycling and pedestrian advocacy organizations, condominium associations, McKinley Elementary School families, UCLA Santa Monica Medical Center employees, and the Mid City Neighbors organization, our team will facilitate respectful and inclusive conversations towards realizing a less automobile-oriented and parking-intensive City.

The cost impacts of maximizing parking are well documented, thanks in part to the efforts of local residents like Juan Matute, the Deputy Director of UCLA’s Institute for Transportation Studies, who has been active in local alternative transportation planning. Our team aims to present the realities of the project’s financing, while remaining open-minded and agile with regard to different ways of meeting the neighborhood’s needs, surface parking included. We would also point to recent successes in reimaging our automobile dependency, such as the bicycle lane corridor on 17th Street. Advocacy groups like Santa Monica Spoke and the Unitarian Universalist Church, who were both deeply involved in the bike lane’s realization, could again be advocates in reimagining a multi-modal Wilshire corridor.

Additionally, HCHC strives to build in transit-rich communities so residents do not feel compelled to own and park a car. HCHC’s Step Up on Colorado (also known as Kaufmann Apartments) in Santa Monica is a 34-unit building for formerly homeless individuals and includes just 15 parking spaces in addition to being located adjacent to the Metro E line Downtown Santa Monica station. Peak Plaza Apartments, an HCHC project currently in design, will provide 104 units of large family housing and will include just 51 parking spaces due to the site’s proximity to major bus routes and two Metro A Line stations. At the 14th St, 16th St, and Euclid St sites, the use of City-owned real estate for surface parking for nearby retail establishments comes at a cost. The team recognizes the need for some parking to serve the needs of future residents and reality of car-dependence in Los Angeles, and strives to examine multiple design scenarios to achieve community buy-in.

5. What were some lessons learned from Venice Dell in terms of public parking replacement that can be applied to this development?
Response: Over the course of several years of working on the Venice Dell project and its associated public parking structure, HCHC has learned a great deal about temporary replacement parking options and the new construction of parking that utilizes more advanced technology ranging from lifts to fully automated systems.

We have also done a great deal of research on the operation phase of public parking facilities to ensure that the project runs smoothly and potential risks are identified and mitigated.

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Packet Pg. 126 Attachment: Written Comments (6933 : Written Comments) First and foremost, there will need to be a great deal of collaboration between the public entities involved with the public parking structure and the development team. One of the most important aspects of the collaboration will be to have a clear understanding of the schedule. When working with tax credits, bonds and other government funding sources, strict deadlines are imposed. And when public parking is intermixed with the affordable housing, the strict deadlines associated with housing become relevant to the parking. Said another way, if the public parking component of a project does not meet funders’ milestones, then financing for the affordable housing could be jeopardized. For this reason, it is essential that the developer works with the public entities involved as early as possible in order to coordinate schedules for the housing and the public parking. Early understanding of these significant dates, and creating realistic benchmarks, can allow all parties involved to determine a schedule of deliverables that works for everyone while keeping the project on track.

Another important aspect of the public parking component is to ensure that the design has been thoroughly thought out with the public entity that will be owning/operating the structure, the parking operator selected by the City, the architect and the developer. Examples of questions to be addressed include:
 What are the needs for the public entity to operate the public parking?  Does the public parking structure need to include an office and restrooms for operations?
 Will there be separate entrances for public parking from the private parking?
 If public parking requires elevator/stairs, will there be a dedicated elevator/stair for the public use or a shared elevator with the residents? If possible, creating the public parking at grade would be most advisable. If elevators and stairs are needed, and it is financially feasible, having separate elevators and emergency stairs would be ideal. If there will be shared ingress/egress and other spaces that will be shared, such as a mechanical room, easements must be created. A discussion on how to legally separate the public parking component will need to be determined early in the entitlements process.

As public parking structures can often have security issues, early discussions on safety and security features and elements must be worked through. For example, determining ideal operating hours as it is best practice not to have 24-hour access to public parking structure within the residential building. Security and monitoring systems need to be incorporated into the project at an early design phase so the general contractor can include this in their contract.

As far as financing the public parking, affordable housing developments can access limited partnership equity to help cover the cost of the public parking component.

A potential financing model is to have partnership equity pay for the public parking component and other government soft debt pay for the affordable housing component. Regardless of the funding, it is critical that the cost of the public parking and the affordable housing be separated out. If not, this will cause issues with basis for the affordable housing component of the project. It is also important to prorate the soft costs that will be used for the public parking spaces Item 1
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Packet Pg. 127 Attachment: Written Comments (6933 : Written Comments) versus the affordable housing. Having a general contractor as part of the development team early in the design and costing process allows for more accuracy in the proration of costs.

Other things to think about prior to starting construction is where temporary public parking (if needed/desired) will be located while the project is in construction and if the City would like to operate the parking on its own or hire a private operator.

6. Can you provide information about past success in funding parking through HCD's Infill Infrastructure Grant, and the prospects for that funding being available for these sites?
Response: HCHC has been successful securing HCD Infill Infrastructure Grant (IIG) funding for multiple projects, however, it should be noted that IIG will only fund parking expenses if parking is explicitly required in the project’s City entitlement document.

Most recently, HCHC secured IIG funds in the amount of:
 $3,094,300 for Walnut Park Apartments (secured in June 2020)  $4,186,800 for Palm Vista Apartments (secured in June 2020)  $3,407,000 for Luna Vista Apartments (secured in December 2021) The funds defray expenses related to construction of subterranean parking required under project entitlements, grading and erosion control, utilities, bicycle parking, green spaces, and play areas. Peak Plaza Apartments (PPA), currently under design, has no parking requirement and is choosing to construct 51 units of subterranean parking and thus any IIG award is not eligible to be used on parkingrelated costs.

As long as the entitlements for the 14th St, 16th St, and Euclid St sites do not explicitly require parking, construction expenses related to parking will not be eligible for funding through IIG. This proposal envisioned providing parking at all three sites, funded by the City of Santa Monica or tax credit equity.

Thank you so much your continued consideration of our proposal. Should the City of Santa Monica have additional questions, please do not hesitate to reach me by email or phone.

Sincerely,
Sarah Letts, Executive Director
Hollywood Community Housing Corporation
5020 Santa Monica Blvd., Los Angeles, CA 90029
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Packet Pg. 128 Attachment: Written Comments (6933 : Written Comments)

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Packet Pg. 129 Attachment: Written Comments (6933 : Written Comments) Santa Monica City Council Meeting - March 19, 2024
1 City Council Meeting Recording (5:29:07)

11. STAFF ADMINISTRATIVE ITEMS
11 A: Award Request for Proposal and enter into Agreement with Hollywood Community Housing Corporation (HCHC) as the Selected Development Team for Affordable Housing on Three City-owned Sites Adjacent to Wilshire Boulevard ● Ayala Scott, Senior Development Analyst in the Housing Division ○ Staff recommends that RFP365 be awarded to HCHC for the development the future affordable housing at City-owned properties 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street
○ Authorize the City Manager to negotiate and execute an Exclusive Negotiating Agreement with HCHC
○ Adopt a finding of no possibility of significant effect on the environment for the selection of a development team
○ 2021-2029 Housing Element
■ HCD certified this on October 11, 2022
■ City committed to developing 100% affordable housing on City-owned property
● Three public parking lots along Wilshire Blvd
■ Committed to issuing RFPs to solicit proposals to develop affordable housing along these sites
■ Part of selecting a development team included submitted design, financing, and service plans that meet multiple requirements including meeting the goals of affordable housing while also finding solutions to replace some of the 119 public parking spaces currently afforded ■ Also included a community involvement plan to engage stakeholders ○ RFP Scoring criteria:
■ Development and operational experience (30 points)
■ Financing analysis and capacity (25 points)
■ Design experience (20 points)
■ Overall development concept (15 points)
■ Community involvement plan (10 points)
○ Team recommends selecting Hollywood Community Housing Corporation (developer), The People Concern (service provider and supportive housing), Kevin Daly Architects (architect), and Morley Builders (pre-construction general contractor/cost estimation)
○ The Team has experience in development and managing housing for low-income households and people experiencing homelessness; expertise in serving tenants in permanent supportive housing; AND experience with replacing public parking [unclear who this refers to]

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Packet Pg. 130 Attachment: Written Comments (6933 : Written Comments) 2 ○ HCHC has also worked within Venice to turn a 200-space public/private parking lot into housing
○ Three month period to allow for public input (community outreach) ○ Plan to return to final development proposal for consideration and approval of City Council in first quarter of 2025
● Sarah Letts, ED of HCHC
○ 35 year old non-profit
○ 2011-2016, worked for Community Corps of Santa Monica ○ Worked with Kevin Daly on a low income housing project on Broadway in Santa Monica
● Kevin Daly, Kevin Daly Architects
● CM Oscar de la Torre
○ Affordable housing, in terms of target population, have we determined who will be prioritized?
● Ayala Scott
○ Looking at formerly homeless as well as families
● CM Oscar de la Torre
○ Mixture of families and formerly homeless?
● Ayala Scott
○ Euclid St will contain supportive housing and 2-bedroom ● CM Oscar de la Torre
○ Only People’s Concern? Or other service providers?
● Ayala Scott
○ People’s Concern will provide the supportive housing services, and HCHC will provide the in-house residence services
● CM Oscar de la Torre
○ In terms of funding from the City, accessing funding from the City? ● Ayala Scott
○ City is helping to reduce the cost of development by providing the land ○ HCHC has a couple of scenarios it has proposed; one that looks at not having any additional housing from the City and one that would depending on how much replacement parking the City wanted to include
○ So this will really depend on parking replacement solutions regarding additional City contributions
■ The more parking required, the greater contribution from the City ● CM Christine Parra
○ Asks for family housing with 3 bedrooms
○ Bigger units are sorely lacking
○ How much parking will be lost?
● Ayala Scott
○ 119 spots currently; ultimately the City could get to a number of public parking spaces that could be replaced
● CM Christine Parra
○ Public parking lots
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Packet Pg. 131 Attachment: Written Comments (6933 : Written Comments) 3 ○ Who is using parking?
● Ayala Scott
○ Pay by space
● CM Christine Parra
○ Total parking you’re going to be providing is 105, including residents and public parking
■ Public parking 9 spots?
○ If the City were to invest/give additional monies for an additional subterranean parking, it would cost $5 million to provide 43 parking spaces ○ Bunch of small businesses, this would impact them
● Ayala Scott
○ Some businesses have dedicated parking; some don’t
● CM Christine Parra
○ Have we surveyed businesses RE how this would impact them? ● Ayala Scott
○ Committed for affordable housing
● CM Christine Parra
○ Want to have an answer
○ One of the public comments earlier made a comment that councilmember CM Caroline Torosis may have a conflict because of a pre-existing relationship with HCHC
● CM Caroline Torosis
○ Wanted to ask the same question; is this a conflict because HCHC operates countywide and therefore has had business with affiliates ● City Attorney
○ Not unless someone stands to financially benefit
● CM Gleam Davis
○ To get the additional parking spaces, would be $5 million in scenario #2? ○ Scenario 1 provides 9 public parking spaces, scenario 2 provides 43 and costs $5 million
● Ayala Scott
○ If the City wanted to go another level down, yes
● CM Gleam Davis
○ Where would that $5 million come from?
● Ayala Scott
○ Funding that would be brought to the project through tax credit equity would cover some of the cost of the parking
○ Would leave a gap in the funding of affordable housing ● CM Gleam Davis
○ Would come out of the affordable housing trust fund
● Ayala Scott
○ Correct
● CM Gleam Davis
○ Affordable trust fund money to build parking, not housing Item 1
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Packet Pg. 132 Attachment: Written Comments (6933 : Written Comments) 4 ○ What does that come down per parking space?
● City Manager
○ Would come down to more than $100,000 per space, but we can discuss why that would be
○ What I do want to comment on, where we are in the process, would like input from Council to fine tune
○ Spend time with the parking division, mobility folks, understand how those spaces are utilized so that we can balance the needs of the businesses, residences, etc.
○ But also work within the limited means
● Sarah Letts
○ $5.5 million dollars, net increase of 52 spaces
○ Most of it goes to the public, the alternative concept for the residents ○ Morley Buildings, if we go down a second level (two subterranean levels) at Euclid and 14th, to dig down and create additional parking would cost $2.7 - $2.8 million per property, which comes down to $106,000 per unit which is very high ○ It’s an alternative we presented because of the language in the RFP; how to grapple with replacing the parking
○ Why was Abode asking for less money, about $53,000 per space because they were only going to go down one level of parking and utilize lifts to accommodate more cars
○ Tight turn, a lot is allocated to the ramp going down; not optimal to go down to the second level
● CM Gleam Davis
○ As we go through this process, important to understand the trade offs ● CM Jesse Zwick
○ Parking question for City staff
○ Affordable housing trust fund money would be utilized for parking to offset costs ■ Not what the people of the City intended with this fund ■ How can this legally happen?
● Ayala Scott
○ Using outside money, there would be a funding gap that would have to be covered by the trust fund
● CM Jesse Zwick
○ Clever accounting
○ Could have gone as high as 7 stories; was their thought to going higher? ● Kevin Daly
○ Possible to go higher
○ Costs implications for that
○ We are at the height/limit of a highrise building in Santa Monica ○ May be some modification
● CM Jesse Zwick
○ Big commitment to the state to build affordable housing, want to maximize what is allowed to meet housing goals
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Packet Pg. 133 Attachment: Written Comments (6933 : Written Comments) 5 ● Kevin Daly
○ The state’s definition of a high rise and Santa Monica’s definition are different, and to account for the additional construction impositions in Santa Monica, the costs would be significantly higher
● CM Caroline Torosis
○ How are you planning to finance this?
● Sarah Letts
○ Federal low income tax credit; finance all three sites as one ○ States affordable housing sustainable communities
■ Provides capital for transit improvements within a 1 mile radius of the site ○ Federal home loan bank, etc.
● CM Caroline Torosis
○ Would need site control to start getting financing?
● Sarah Letts
○ Yes
● Mayor Phil Brock
○ Question about supportive housing concept
○ People’s Concern
○ Sitting on the audit committee, still looking to find out where $1.3 - $1.4 million went on some of their past projects in Santa Monica
○ Concerned about financial tracking methods; still after 6 months/8 months have been unable to get answers from People’s Concerns about the data they were supposed to collect for auditors
○ Were there any other supportive housing providers considered? ● Sarah Letts
○ First call made to John Maceri
○ He said yes, based on the depth of experience in Santa Monica and the work they do throughout the county is very good
● Mayor Phil Brock
○ Parking, trying to think of the businesses there
○ Neighborhood centric; people north of Wilshire use all of those businesses ○ Who needs parking? One business in the Euclid block that provides services to those with broken bones, etc.
■ That’s the only business that needs cars to drive up to it/park ○ People can find parking/walk
○ Tend to feel that that 5 blocks of Wilshire is where people walk to do their shopping, etc. and there is plenty of street parking
○ Not sure we will need an extra floor of parking
○ Kevin Daly, concerned that we would like as many trees as possible; want to make sure people feel comfortable walking by these buildings ● Mark Amerale, House and Human Services
○ The findings against the People’s Concern
○ What the finding is centered on is that the People’s Concern tracks funding at the programmatic level
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Packet Pg. 134 Attachment: Written Comments (6933 : Written Comments) 6 ■ All revenue sources are consolidated into a single general ledger ■ Attempted to reconcile the report that they submit back to the City ○ Moss Adams also applied expenditure testing
■ Found that everything they sampled was well-substantiated ○ The People’s Concerns, moving forward, will need to track City funds separately going forward
● CM Caroline Torosis moves forward to approve this three-part motion; seconded by CM Jesse Zwick
○ Passed unanimously
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Packet Pg. 135 Attachment: Written Comments (6933 : Written Comments)

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Packet Pg. 136 Attachment: Written Comments (6933 : Written Comments) 3 August 27, 2024

4.C. Conference with legal counsel - pending litigation - Gov. Code § 54956.9(d)(1): City of Santa Monica and People of the State of California v. Pavilions Motel, Inc., Saeed Farzam, and Goharshad Farzam; LASC Case No. 24SMCV02305.

The City Attorney advised this matter was heard with no reportable action taken.

4.D. Conference with legal counsel - consider sending amicus letter - Gov. Code § 54956.9(d)(4): Apartment Association of Los Angeles County, Inc., v. City of Los Angeles, et al.; LASC Case No. B336071.

The City Attorney advised Council approved sending amicus letter with a vote of 7-0.

4.E. Conference with real estate negotiator - Gov. Code § 54956.8:
properties: 2019 - 2219 5th Street; owner of record: Ocean Park Villas, L.P; City negotiators: Heather Averick, Director of Housing and Human Services, and Natalie Verlinich, Housing Manager; owner negotiators: Angel Herrera and Mark Wagner; under negotiation:
price and terms of payment for sale or option.

The City Attorney advised this matter was heard with no reportable action taken.

4.F. Conference with real estate negotiator - Gov. Code § 54956.8:
properties: 1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street; owner of record/lessor: City of Santa Monica; developer/lessee: Hollywood Community Housing Corporation (HCHC); City negotiators: Heather Averick, Director of Housing and Human Services, and Natalie Verlinich, Housing Manager; developer negotiators: Sarah Letts, Executive Director; under negotiation: price and terms of payment for ground lease.

The City Attorney advised that Council approved the following direction to City negotiators, with a vote of 4-3, with Mayor Brock, Councilmember Parra, and Councilmember de la Torre voting no:

Give direction to continue exclusive negotiations with HCHC based upon a revised 100% affordable development with large family housing on 1217 Euclid Street and senior housing with 40 permanent supportive housing units for seniors on 1211-1217 Fourteenth Street and 1402 Wilshire Boulevard, provided that 1402 Wilshire Boulevard can be acquired by HCHC from a third party.

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This revised project would be coupled with a City subsidy. Development on 1146 Sixteenth Street would be eliminated to mitigate parking impacts and would remain public parking. Development of 85 senior housing apartments inclusive of 40 permanent supportive housing apartments for seniors would be built on two parcels (1211-1217 Fourteenth Street and 1402 Wilshire Boulevard) instead of one to reduce building height adjacent to neighboring residential buildings on Fourteenth Street.

4.G. Conference with legal counsel - existing litigation - Gov. Code § 54956.9(d)(1): Santos Dolores Amaya De Vides v. City of Santa Monica, et al.; LASC Case No. 23STCV09774. [report out only] The City Attorney advised this matter is a personal injury that settled for $280,000; approved at the June 11, 2024, meeting with a vote of 6-0 with Councilmember de la Torre absent from the meeting.

4.H. Conference with real estate negotiator – Gov. Code § 54956.8:
properties: 1402 Wilshire Boulevard; Owner of record: Glen D.

Jackson Trust; City Negotiators: Heather Averick, Director of Housing and Human Services, and Natalie Verlinich, Housing Manager; Owner Negotiators: Art Flores, Senior Vice President for CBRE; Subject of Negotiation: price and terms of payment for purchase of the property.

The City Attorney advised this matter was heard with no reportable action taken.

AGENDA

MANAGEMENT
Motion by Councilmember Zwick, seconded by Councilmember Davis,to continue Items 10.C., 10.D., and 11.A. The motion was passed by unanimous voice vote with all members present.

Motion by Councilmember de la Torre, seconded by Councilmember Parra to continue Items 16.J. The motion was passed by unanimous voice vote with all members present.

REPORT ON COUNCIL
TRAVEL
Councilmember Torosis reported that she traveled to the National Convening of Local Progress, an organization of local elected officials.

Sessions included discussions around affordable housing, finance, community safety, rent stabilization, and governing during times of transition. Councilmember Torosis stated that she received a scholarship to attend the conference and used personal funds to cover the rest.

CONTINUE MEETING
PAST 11:00 P.M.

Motion by Councilmember Davis, seconded by Councilmember Torosis to continue past 11:00 p.m. The motion was passed by unanimous voice vote with all members present.

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The motion was approved by a unanimous voice vote, with all members present.

WAIVING OF FEES 16.I. Request of Vice Mayor Negrete, Mayor Brock, and Councilmember Parra that the City Council, as part of National Seafood Month, approve City sponsorship of the OFF THE HOOK Santa Monica Seafood Festival taking place October, 13, 2024 on the Santa Monica Pier by directing the City Manager to waive the City’s portion of fees for use of the Pier for Spin PR Group, the Santa Monica-based PR, Marketing and Events agency producing the event. City fees related to the OFF THE HOOK Santa Monica Seafood Festival include the application, administrative, neighborhood notification, business license, parking, and zero waste plan fees associated with the use of the Pier in an amount up to $16,000 in waived fees, was presented.

Motion by Councilmember Torosis, seconded by Councilmember Davis, to approve the item.

The motion was approved by a unanimous voice vote, with all members present.

PROPOSED HOUSING

PROJECTS

16.J. Request of Vice Mayor Lana Negrete, Councilmember Oscar de la Torre and Councilmember Christine Parra that after hearing community feedback, direct the City Manager to explore Hollywood Community Housing Corporation revising its proposed housing projects on surface parking lots (1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street) owned by the City to replace all proposed permanent supportive housing units with senior affordable housing. The City Manager is also being asked to return to City Council with an evaluation of the impacts of replacing the permanent supportive housing units with senior affordable housing within 45 days, was continued to a future meeting.

ADJOURNMENT On order of the Mayor, the City Council meeting adjourned at 1:52 a.m.

ATTEST: APPROVED:

Nikima S. Newsome Phil Brock
City Clerk Mayor

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Report
City Council Meeting: December 17, 2024
Agenda Item: 11.A
1 of 23
To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department Subject: Approve Deal Terms and Authorize Development and Disposition Agreements (DDAs) and Ground Leases for 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1402 Wilshire Boulevard
Recommended Action
Staff recommends that the City Council:

1. Authorize the City Manager to negotiate and execute a Ground Lease with a fiftyfive (55) year term, with two options to extend by twenty-two (22) years each, and a Disposition and Development Agreement (DDA) with Hollywood Community Housing Corporation (HCHC) for development and operation of affordable housing on City-owned property located at 1217 Euclid Street;

2. Authorize the City Manager to negotiate and execute a Ground Lease with a fiftyfive (55) year term, with two options to extend by twenty-two (22) years each, and a Disposition and Development Agreement (DDA) with HCHC for development and operation of senior affordable and senior permanent supportive housing at 1211-1217 Fourteenth Street on property to be acquired by HCHC at 1402 Wilshire Boulevard and deeded to the City;

3. Declare 1402 Wilshire Boulevard “exempt surplus land” as defined in Government Code Section 54221(f) upon the City receiving fee title to the site at closing of construction financing;

4. Adopt a Resolution declaring 1402 Wilshire Boulevard as exempt surplus land, contingent upon HCHC acquiring the site and transferring fee title to the City at closing of construction financing, and authorize the City Manager to take actions necessary to comply with the Surplus Land Act (Government Code sections 54220 et seq.;

5. Authorize the City Manager to submit the report of declared exempt surplus land as part of the Annual Report to the California Department of Housing and Community Development (HCD), in conformance with state law;

6. Authorize the City Manager to negotiate and execute all necessary documents to make a Housing Trust Fund loan to HCHC in an amount consistent with the Housing Trust Fund Guidelines loan limits;

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7. Provide direction to staff regarding public replacement parking including any City investment from the Housing Trust Fund;

8. Adopt a finding that the actions to approve the Ground Leases and DDAs for the Developments are exempt from CEQA pursuant to CEQA Guidelines Section 15182 and a finding that the Developments have been previously analyzed in the 6th Cycle Housing Element Environmental Impact Report (SCH# 2020100575).

Summary
On March 19, 2024, the City Council selected the development team led by HCHC to construct and operate 100% affordable housing on three City-owned public parking lots located at 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street (Attachment A). As authorized by the City Council, the City Manager executed an Exclusive Negotiation Agreement (ENA) (Attachment B) with HCHC to provide an opportunity for HCHC to refine its original development proposal for 130 residences based on community input, due diligence research and financial feasibility analysis.

On August 27, 2024, the City Council gave staff direction to continue exclusive negotiations with HCHC based upon a revised proposal for large family housing on 1217 Euclid Street and senior housing, including 40 senior permanent supportive housing (PSH) apartments, on 1211-1217 Fourteenth Street and 1402 Wilshire Boulevard, provided that 1402 Wilshire Boulevard can be acquired by HCHC from a third party (Attachment C). Per City Council direction, this revised project will be coupled with a City subsidy from the Housing Trust Fund, and development on 1146 Sixteenth Street will remain public parking to mitigate public parking impacts.

Background
On October 11, 2022, the City Council adopted the 2021-2029 Housing Element, a State-mandated plan for meeting the City’s share of regional housing needs. State law requires that the Housing Element include an inventory of land that demonstrates the City’s capacity to realistically accommodate new housing development at all income levels. To address the City’s shortfall of sites suitable for the creation of affordable housing for low-income households, the City committed to developing 100% affordable housing on City-owned sites identified in Appendix F, Figure F-7 of the Housing Element (Attachment D).

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As specified in Housing Element Program 2.E (Attachment E), by June 30, 2027, the City must issue at least three requests for proposals (RFPs) for City-owned sites. Below is a summary of key milestones in the development team selection process.

Date Milestone
December 1, 2022
Housing Commission provided advisory input
to Council (Attachment F) on issuance of an
RFP for teams to develop affordable housing
on three City-owned surface public parking
lots located at 1217 Euclid Street, 1211-1217
Fourteenth Street and 1146 Sixteenth Street
(Attachment G).

March 14, 2023
Council declared the sites as exempt surplus
land, allowing the City to move forward with
the RFP in accordance with State law
(Attachment H).

June 22, 2023 City issued the RFP (Attachment I)
February 1, 2024
Housing Commission provided advisory input
to the City Council on the selection of the team
led by HCHC (Attachment J)
March 19, 2024
Council selected the team led by HCHC,
comprised of HCHC as developer, Kevin Daly
Architects (kdA) as the architect, The People
Concern (TPC) as its services provider, and
Morley Builders as its construction estimator.

Council authorized the City Manager to
negotiate and execute an Exclusive
Negotiation Agreement (ENA) with HCHC.

May 31, 2024 City Manager executed ENA with HCHC
HCHC’s original proposal (Attachment K), submitted in response to the RFP, envisioned the following development plan:

Original HCHC Proposal
Site Apartments
Euclid St. 65 (including 40 PSH apartments)
Fourteenth St. 45
Sixteenth St. 20
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Total 130
The proposal included a “base case” parking scenario with no off-street public parking replacement. The proposal also included an alternative scenario with a total of 34 offstreet replacement public parking spaces. In the alternative scenario, public parking would be provided on the ground level on the Euclid and Fourteenth street sites, with two levels of underground parking to accommodate resident parking at an estimated cost to the City of $5.5 million.

Original HCHC Parking Proposal
Site Base case Alternative Cost to City
Private
Parking
Public
Parking
(offstreet)
Private
Parking
Public
Parking (offstreet)
Euclid St. 43 0 52 17 $2,800,000
Fourteenth
St. 43 0 52 17 $2,700,000
Sixteenth St. 10 0 10 0
Total 96 0 114 34 $5,500,000
Community engagement
HCHC hosted four community outreach meetings, on May 22, 23, and July 8, 10. Two meetings were held in-person and two virtually. Notices were mailed to residences and businesses within a 750-foot radius of each of the three sites, as well as organizations including Santa Monica Mid-City Neighbors and Wilshire Montana Neighborhood Coalition. The meetings were also advertised on the City Housing Division website, in the Santa Monica Daily Press, and sent to the Housing Division email list. In addition to mailings, a representative from HCHC hand-delivered meeting flyers to businesses.

HCHC also noticed the meetings to organizations that provide housing and/or services to people that may be eligible for affordable or permanent supportive housing.

At the meetings, staff from HCHC, kDa and TPC introduced their organizations, presented the team’s proposal, answered questions and took comments. HCHC also collected comments through a dedicated website and voicemail line it established for Item 1
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the proposed development (Attachments L and M).

Key concerns raised by community members in the May meetings related to the proposed development on the City-owned lots included:
• Loss of public parking, which serves as visitor parking for residents as well as employees and patrons of neighborhood businesses and UCLA Medical Center • The amount of on-site parking for residents of the proposed developments will lead to increased competition for limited street parking • The potential for increased crime and other safety and quality of life concerns • The scale of the proposed development
• The potential for increased traffic and congestion as a result of the new housing during and after construction
Based on the feedback, the team revised its original proposal and presented the changes at the July meetings. The changes presented in July are summarized in the table below.

Original Proposal Examples of Feedback Proposed Changes Housing Type
Location
Supportive housing
located on Euclid St.

Family apartments
located on 14th St.
14th Street has more traffic
and safety concerns and is
closer to UCLA medical
facilities, and is more
appropriate for Supportive
Housing
Family apartments moved
to Euclid St.

Supportive housing moved
to 14th St.

Alley
Congestion
At grade and
subterranean resident
parking accessed from
alleys
Alleys are narrow and
congested
Vehicle queueing areas
provided within property
lines to minimize impact on
alleys
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Original Proposal Examples of Feedback Proposed Changes Staffing Each site will have one
full-time property
manager. Typical office
hours will be 8am to
5pm, Monday through
Friday.

Security issues may arise
after hours or on
weekends
A second full-time
employee will live at the
14th St. property. Job duties
and hours to be determined
and the goal will be to
enhance safety and
security.

Site Security Open access
landscaped front yards
with secured building
door access
Measures to enhance
safety are important and
site perimeters need to be
secured
Perimeter fences, fobaccess gates, and security
cameras installed at all
sites
Services Possible inclusion of a
food pantry to benefit
food insecure
households
Services, such as food
distribution, should not be
open to the broader
community
Services will be for
residents only, not the
broader community
After the July meetings, HCHC conducted additional due diligence to determine how to address community concerns related to the loss of public parking, building height and density, while still achieving the RFP objective to build 130 residences. HCHC determined that acquisition of 1402 Wilshire Boulevard, which currently houses Unleashed by Petco, had been listed for sale and is adjacent to the Fourteenth Street parking lot, would offer a way to preserve some existing parking and mitigate the height adjacent to neighboring residential properties on Fourteenth Street, while also reducing the length of construction time.

The current design reflects community feedback and Council direction as shown in the table below.

Original Proposal Examples of
Feedback
Updates
Population Served Low-income
individuals,
families, and
formerly unhoused
individuals in
supportive housing
There is a need for
senior housing
Family apartments
provided at Euclid St
14th St targeted to
seniors (55+ and up)
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Original Proposal Examples of
Feedback
Updates
Public Parking Affordable housing
development
on three public
parking lots
Parking lots are
heavily used
by residents,
businesses, and
hospital visitors
16th St to remain
undeveloped as
public parking
PSH Staffing Each development
site will have one
full-time property
manager. Typical
office hours will be
8am to 5pm,
Monday through
Friday.

Security issues may
arise after hours or
on weekends
Two full-time resident
property managers
will live at the 14th St
property. Security will
be provided on nights
and weekends during
Year 1, subject to
reassessment with
the City
Building Height 14th St building five
to six stories high
Building is too tall
for a
residential street
without other tall
buildings
Combined 14th St &
1402 Wilshire site
design where
building is six stories
along Wilshire Blvd,
stepping down to four
stories on residential
street
Unit Sizes Buildings will
include a mix
of studio, one-, two-
, and threebedroom units
Studio units are too
small. Larger units
should be provided.

No studios will be
provided. All
130 apts will be one-,
two-, or threebedrooms
HCHC presented its revised proposal at a fifth community meeting co-hosted by City staff on October 23, 2024. Written comments submitted to HCHC during the meeting comment period are provided in Attachment N.

Business outreach
City staff conducted door-to-door outreach to businesses on Wilshire Boulevard between Eleventh and Sixteenth streets to obtain information about employees’ and customers’ use of the City-owned parking lots. Staff distributed a survey and/or spoke with owners or employees at 31 businesses. At least 13 other businesses were vacant.

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With a few exceptions for walking, cycling/scooters, public transit, and car drop-off (including rideshare), nearly all reported that their employees and customers drive to the business. There were a variety of parking resources utilized, including dedicated on-site parking, street parking (metered and unmetered), and the City-owned lots. Some businesses with on-site parking reported not having sufficient parking for both employees and customers, particularly if the lot is shared with other businesses.

There are two businesses that purchase a total of 13 monthly passes at the Euclid Street City-owned lot and there are no current monthly pass holders at the Fourteenth Street lot. Two business owners specifically mentioned that parking would present a serious obstacle to employee hiring and retention if monthly passes were not available.

One employee reported that her employer purchased a monthly pass for her at the building leased by UCLA Health at Wilshire Boulevard and Twelfth Street. Another business reported that UCLA Medical Center employees regularly park in the business’ on-site customer parking lot and that the employees of the business use the Sixteenth Street City lot (not currently proposed for development).

Discussion
Development
The proposed Developments include 130 new affordable residences distributed between the Euclid and Fourteenth Street/1402 Wilshire Boulevard sites as follows:
1-bedroom 2-bedrooms 3-bedrooms Total Stories
Euclid Street 21 14 13 48 6
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Fourteenth
Street/1402
Wilshire
Boulevard
80 2 82 3 - 6
The distribution of residences between the two sites maximizes competitiveness for State tax credit financing. In addition, the combined Fourteenth Street/1402 Wilshire Boulevard site allows the building to be stepped down from six stories to four stories adjacent to existing residential property on Fourteenth Street and to three stories on the Fourteenth Court alley. There are forty residences set aside for senior PSH. The Developments will restrict 100% of the apartments (excluding managers’ units) at or below 60% AMI.

The proposal includes on-site parking for residents as follows:

Number of
residences
On-site resident
parking Parking type
Euclid Street 48 40 Ground level and one
underground level
Fourteenth Street/
1402 Wilshire
Boulevard
82 42 Ground level
Total 130 82
The parking ratios are based on affordable housing leasing and affordable housing best practices, with a higher ratio of spaces provided at Euclid Street where two- and three-bedroom apartments for larger households are proposed and a lower ratio provided at Fourteenth Street for senior apartments. The buildings will have secure bicycle parking available for residents and are located near public transit. The City also operates MODE, a low-cost on-demand rideshare program, for seniors and people with disabilities that residents can utilize.

On-site Resident Services
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HCHC will employ one full-time Resident Services Coordinator to facilitate services and activities for the 87 general affordable apartments. Examples of services include linkages to community-based services, GED preparation, resume workshops, and life skills classes. In addition, three full-time Property Managers (one at Euclid Street and two at the Fourteenth Street/1402 Wilshire Boulevard site) will reside on-site. TPC will provide two full-time intensive Case Managers to serve clients in the PSH apartments with the support of a part-time program manager and director. This staffing ratio is aligned with PSH best practices. On-site offices will be provided for HCHC and TPC staff.

In addition to case management, TPC services are tailored to meet individual client needs and may include assistance with applying for benefits; transportation; crisis management; life skills education; social and recreational activities; employment and educational resources; money management/representative payee; and linkages to other resources based on an individual clients’ needs. All services will be provided by case managers on-site, or through linkages to outside service programs. Case managers will make frequent contact with their clients from initial lease-up and movein through residency, with frequency tailored to the client’s need.

DDA Terms Summary
HCHC has entered into a Purchase and Sale Agreement with the owner of 1402 Wilshire Boulevard. Should the City Council authorize execution of the DDA and Ground Lease, HCHC plans to close escrow on 1402 Wilshire Boulevard in the third quarter of 2025 following execution of the DDA. HCHC would own 1402 Wilshire Boulevard until it has secured all construction financing, which is estimated to occur in May 2026. At that point, as will be memorialized in the DDA, HCHC will transfer ownership of 1402 Wilshire Boulevard to the City and the City will concurrently ground lease the combined Fourteenth Street/1402 Wilshire Boulevard site back to HCHC.

To proceed, staff seeks City Council approval of the proposed DDA terms (Attachments O and P), including authorization for the City Manager to finalize and Item 1
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execute the DDAs and Ground Leases. Key terms include:
• For both the Euclid Street and the combined Fourteenth Street/1402 Wilshire Boulevard sites, the City will provide a ground lease term of 55 years plus two options of 22 years to retain City ownership in exchange for the continued operation of the property as affordable housing.

For each site, HCHC will make an annual ground lease payment to the City of $1 per year plus an amount based on the fair market value of the 1217 Euclid Street and 1211-1217 Fourteenth Street sites at time of construction loan closing. At year 56, assuming extension of the lease is exercised, rent will be equivalent to City’s share of residual receipts. • The City will receive a 50% share of residual receipts for the Euclid site. For the Fourteenth Street/1402 Wilshire Boulevard site, 50% of residual receipts will be split between the City and other public lenders based on their respective shares of project funding. Repayment of the loan shall be paid from the City’s share of residual receipts after payment of the Ground Lease Rent. • The Santa Monica Housing Authority will provide 40 Project-Based Vouchers (PBVs) for the PSH apartments at the Fourteenth Street/1402 Wilshire Boulevard site.
• HCHC will receive a developer fee subject to either the fee limit in the Santa Monica Housing Trust Fund Guidelines at the time of closing or a negotiated fee based on third-party review, up to the maximum allowable developer fee per CA LIHTC regulations at time of closing. • A resident Property Manager will be on duty at each site Monday through Friday from 8:00 a.m. to 5:00 p.m. beginning with move-ins. At the Fourteenth Street/1402 Wilshire Boulevard site, a second resident Assistant Property Manager will be on duty from 2:00 p.m. to 10:00 p.m. Monday through Friday, with the shift adjustable as needed. At all times when not on duty, the Property Manager or Assistant Property Manager will be on-call and available by phone for after-hours emergencies.

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• HCHC will provide security for the first year of operations at the Fourteenth Street/1402 Wilshire Boulevard site during night and weekend hours when a resident property manager is not on duty, with continuation after the first year subject to reassessment with City staff.

Financing Summary
To develop the sites, HCHC will apply for the following financing sources:

1. Multifamily Housing Program (MHP) from HCD

2. 4% and 9% Low Income Housing Tax Credits that are competitively awarded by the California Tax Credit Allocation Committee (CTCAC)

3. Tax-exempt Bonds from the California Debt Limit Allocation Committee (CDLAC)

4. Construction and permanent financing (mortgage) from a conventional lender(s) If a funding gap should occur, City staff can approve Housing Trust Fund (HTF) loans that comply with the underwriting criteria and loan limits within the City’s HTF Guidelines. Any request outside of the HTF limits will be brought before City Council for approval. Currently, HCHC anticipates a total funding gap for both developments of $13,500,000, which falls within the City’s HTF Guidelines. The funding gap is a result of the City not having a sufficient scope of new, unfunded transit improvements in the area to be competitive for the Affordable Housing and Sustainable Communities program, which was a key funding source anticipated in HCHC’s original proposal.

The anticipated $13,500,000 City loan is inclusive of a $6,000,000 loan to HCHC which will be used to acquire 1402 Wilshire Boulevard and is allowable under the City’s HTF Guidelines. The City would fund the acquisition loan concurrently with HCHC closing escrow on 1402 Wilshire Boulevard in Spring 2025. After HCHC secures construction financing--anticipated in Spring 2026--the City will receive $3,500,000 for the loan to acquire 1402 Wilshire. The remaining $11,000,000 of the City loan will be used to close the financing gap for the Euclid Street development.

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Anticipated Funding Timeline for City Loans
1402 Wilshire
Boulevard
Acquisition
Euclid Street
Construction
Start
Fourteenth
Street/1402
Wilshire
Boulevard
Construction
Start
Spring 2025 Fall 2025 Spring 2026 Total
Fourteenth
Street/1402
Wilshire
Boulevard
$6,000,000 (or
purchase price)
($3,500,000)
estimated
repayment to
City
$2,500,000
Euclid Site $11,000,000 $11,000,000
Total: $13,500,000
Replacement Public Parking
The loss of public parking has been a key topic of concern from community engagement meeting feedback. Community members have expressed concerns about the impact of the loss of public parking on local businesses, as well as the resulting increase in competition for limited street parking in the area if public parking is not replaced.

No parking is required for the Developments per the City’s Zoning Ordinance. Santa Monica Municipal Code Section 9.28.060 (A)(1)(a) implements Assembly Bill 2097, a State law prohibiting cities from implementing parking minimums for housing projects within a ½ mile from a major transit stop. This property falls within the halfmile radius of a major transit stop, so no parking is required for this site.

The revised proposal preserves 21 existing parking spaces at the Sixteenth Street lot. There are 98 existing parking spaces across the Euclid and Fourteenth Street lots. As part of an ongoing Citywide parking study to inform future parking pricing, a consultant for the City’s Department of Transportation (DOT) analyzed utilization of the City’s structures, lots, and meters. (Attachment Q) is an analysis of parking Item 1
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demand, including the two surface lots for the Development. The data comes from the City’s online parking data platform, which tracks pay station activity. The chart below shows average occupancy during the year (in the “Average” columns) and peak occupancy on one of the busiest days of the year (in the “Peak” columns).

Occupancy of Santa Monica City Lots
Lot Capacity
Average Peak**
2022 Occ. % 2023 Occ. % 2022 Occ. % 2023 Occ. %
Mid-City Lot 7
(1217 Euclid
St.)
49 15 31% 20 41% 21 43% 28 57%
Mid-City Lot 8
(1146 Sixteenth
Street)
*will remain
public parking
21 16 74% 16 75% 20 95% 21 100%
Mid-City Lot 12
(1211-1217
Fourteenth St.)
49 37 76% 40 82% 51 104% 53 108%
**85th Percentile busiest day (see Attachment Q)
To summarize, Lot 7 (Euclid) and Lot 12 (Fourteenth Street) average a combined 65% utilization and 79% on one of the busiest days of the year, reflecting a potential public benefit if 60-77 of the existing parking spaces were to be replaced. However, the elimination of the retail use at 1402 Wilshire Blvd will alleviate some demand for public parking. Additionally, in other thriving commercial districts in the City, such as Montana Avenue and Ocean Park Boulevard, there are no City-owned public parking lots to support businesses. In those corridors, residents, employees and patrons utilize public on-street parking, privately-owned off-street parking, as well as the robust multimodal options that the City and the private sector provide, such as transit, cycling, and shared use mobility devices.

Based on community feedback, staff and HCHC assessed potential options for Item 1
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replacement public parking, which are presented below.

On-street perpendicular parking replacement
One option for replacement public parking is to convert one side of the on-street parking into perpendicular (or “nose-in”) to accommodate additional on-street spaces.

Perpendicular parking is already present in the area between Ninth and Sixteenth streets and between Colorado Avenue and Broadway, excluding the signalized corridors, such as Eleventh and Fourteenth streets. Conceptually, it is estimated that reconfiguring street parking to perpendicular on one side of Euclid Street between Wilshire Boulevard and Arizona Avenue, and one side of Sixteenth Street between Wilshire Boulevard and California Avenue, could yield additional on-street spaces.

DOT estimates the cost to design and implement this at approximately $60,000 per block. However, staff does not recommend conversion to perpendicular parking as a solution for the following reasons:
• Perpendicular parking is not suitable for streets with traffic signals, since higher-speed and higher-volume traffic flow would present safety issues for drivers backing into and out of perpendicular parking spaces. • Under existing City policy, parking regulations are aligned with the adjacent land use. Since the streets surrounding the proposed Developments are primarily residential, existing preferential parking regulations on those blocks would apply to any new, residential adjacent spaces. On Euclid Street between Wilshire Boulevard and Arizona Avenue, the existing preferential parking regulations are: No parking from 7:00 a.m. until 2:00 a.m. daily, except by permit. On Sixteenth Street between California Avenue and Wilshire Boulevard, the existing preferential parking regulations are: Two hour parking from 9:00 a.m. to 6:00 p.m. daily, and no parking from 6:00 p.m. to 2:00 a.m. daily, except by permit. Therefore, the benefit to non-residents of increased parking would be limited. In addition, some existing metered spaces near the intersection may need to be removed to accommodate perpendicular parking spaces.

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• The City’s sustainability approach based on Council direction and adopted City policy is to facilitate a full range of transportation options through policies and infrastructure projects. These include transit service, bicycle and pedestrian infrastructure, shared use mobility devices, and burgeoning technology services such as autonomous taxis. Expansion of street parking would direct resources away from achieving the City’s sustainability objectives of reducing reliance on cars and prioritizing bicycle and pedestrian safety and effective transit service.

If Council provides direction to further investigate on-street parking reconfiguration in the area, DOT would need to conduct additional analysis to assess how many net new street spaces could realistically be created with a reconfiguration, taking into account factors such as existing street widths, space for loading zones, safety, visibility, and existing bike lanes (for example, Fourteenth Street is not suitable for nose-in parking due to conflicts with the existing bike lane, among other factors).

Enhanced business engagement
The GoSaMo Transportation Management Organization (TMO) could prioritize enhanced engagement with businesses along this stretch of Wilshire Boulevard to better understand the transportation challenges their employees and customers face and connect them to applicable transportation services.

Adjusting time limits on metered parking
According to pay station data, the most frequent lengths of stay at the Euclid and Fourteenth Street lots are one and two hours. For the meters on Wilshire Boulevard between Twelfth and Seventeenth Streets, the average length of stay is 49 minutes, according to a sample of meter data from November 1 – 15, 2024. The majority of meters in the area allow stays of up to two hours. Staff does not recommend shortening the amount of time allowed at meters to under two hours, as that may be insufficient to meet the needs of the majority of meter users. For very short-term uses (such as dry cleaners), the City tends to locate 30 minute or passenger loading nearby.

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On-site public parking replacement
HCHC’s original proposal provided an alternative scenario in which 17 off-street replacement public parking spaces could be included at ground level on Euclid and 14th streets, for a total of 34 off-street replacement public parking spaces. The alternative scenario required a second level of underground parking to accommodate resident parking at a cost to the City of $5.5 million ($2.8 million for the Euclid site, and $2.7 million for the Fourteenth Street site). The cost per off-street public space was estimated at nearly $162,000 in the original proposal. Any financing gaps in the Developments resulting from adding on-site, off-street replacement public parking would need to be filled from City sources, as there are no dedicated sources of non-City funding to pay for public parking.

After further due diligence, HCHC revised the design to accommodate site constraints as well as 48 residences on Euclid Street and has identified several barriers, making replacement public parking at Euclid Street site infeasible for the following reasons:
• Due to the revised design, some ground-level parking spaces were removed due to site constraints, which were identified as potential replacement public parking in the original proposal.
• A second level of underground parking would be needed to accommodate resident parking; due to ramping, the number of additional spaces that could be accommodated would be inefficient based on cost.
• Operationally, any replacement public parking would need to be on the street level to ensure security of the building and residents. If replacement public parking is underground, the development would need to have separate entrances, stairwells, and elevator access for both the residents and the public utilizing the replacement parking. The site area is not large enough to accommodate features required to ensure a secure environment for building residents, such as a separate parking entrance, stairwell and elevator to Item 1
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separate the publicly-accessible and resident parking areas. • Providing public parking at street level would yield few public parking spaces due to required utility and service spaces and would either reduce the overall number of residential units or increase the height of project. Increasing the height of the project any further would require a different and more costly construction type, and would significantly widen the financing gap.

Compared to the Euclid site, the larger footprint of the combined Fourteenth Street/1402 Wilshire Boulevard site offers fewer space constraints to replacing public parking on site. As currently designed, resident parking at the Fourteenth Street/1402 Wilshire Boulevard site is accessed from the Fourteenth Court alley to avoid cars crossing into the existing bike lane on Fourteenth Street to access the building. Adding public parking to the Fourteenth Street/1402 Wilshire Boulevard site would require redesign and a potential delay in obtaining necessary entitlements to apply for financing. If ground level parking is used for the public, a subterranean level of parking would be required for residents. Due to ramping required to reach the subterranean level, five resident spaces would be lost, leaving approximately 37 spaces for residents. HCHC estimates that 35 public parking spaces could be accommodated on site at ground level at a cost to the City of $6,340,316, or $181,152 per space. If non-City funds are used to cover the cost, the resulting shortfall in financing would need to be funded by the City’s Housing Trust Funds.

There are other Council-directed priorities for use of the Housing Trust Funds, including development of affordable housing on other City-owned sites identified in the Housing Element and direct assistance to low-income seniors under the Preserving Our Diversity (POD) program. Additionally, there is still money the City must repay back to the Housing Trust Fund, which continues to impede availability of these funds.

Exempt Surplus Land Declaration
The California Surplus Land Act (Government Code 54220 et seq.) (SLA) governs the sale or lease of surplus lands and requires local agencies to prioritize opportunities for certain uses including affordable housing development for any land the entity may sell Item 1
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or lease. Surplus land may be declared either “surplus” or “exempt surplus” by the legislative body of the local agency as supported by written findings. Exempt surplus land does not have to follow the procedural requirements of the Surplus Land Act, and includes surplus land that is offered for open, competitive bid for a 100% affordable housing development. The law requires local agencies to report on the list of surplus lands in the General Plan Annual Progress Report, which is due April 1 of each year.

The SLA requires local agencies to formally declare publicly-owned property not necessary for the local agency’s use, as surplus land or exempt surplus land before beginning the disposition process. Surplus land must follow a statutory noticing and negotiation period with certain designated entities, including eligible housing sponsors defined by HCD. Exempt surplus land does not have to follow the procedural requirements of the Surplus Land Act.

As provided in the SLA, exempt surplus land includes “(i) Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located. (ii) The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.”
The City Council adopted a resolution declaring the City-owned properties at 1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street as exempt Item 1
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surplus land on March 14, 2023. As required by the SLA, the City submitted the declaration and findings to HCD for review. On October 21, 2024, HCD provided a letter concurring with the City’s exempt surplus declaration for the three sites (Attachment R).

Because the SLA only applies to disposition of publicly-owned land, the proposed resolution declaring 1402 Wilshire Boulevard as exempt surplus (Attachment S) would become effective only upon a concurrent transaction in which HCHC transfers ownership to the City and the City ground leases the combined Fourteenth Street/1402 Wilshire Boulevard Site to HCHC.

Next Steps
With City Council approval, the City Manager will execute a DDA and associated documents to allow HCHC to apply for Tax Credits and other funding sources for the Developments’ construction. HCHC has submitted entitlement applications for the Developments, which are also required to be approved in order to apply for outside financing. The designs (Attachment T) are tentatively scheduled to be reviewed by the Architectural Review Board on December 16, 2024 for the Euclid Street site and on a date to be determined in early 2025 for the Fourteenth Street/1402 Wilshire Boulevard site.

For the Euclid Street site, HCHC plans to submit its tax credit funding application to California Tax Credit Allocation Committee (TCAC) in February 2025. HCHC anticipates receiving its TCAC award in May 2025 and will start construction in late 2025, with construction completion and move-ins estimated in 2027.

For the Fourteenth Street/1402 Wilshire Boulevard site, HCHC plans to submit its MHP funding application to HCD and complete its acquisition of 1402 Wilshire Boulevard in the second quarter of 2025. HCHC plans to submit its tax credit and taxexempt bond funding application to TCAC and CDLAC in August 2025. HCHC anticipates receiving its TCAC and bond award in December 2025 and will start construction in Spring 2026, after all construction financing sources have been Item 1
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finalized and 1402 Wilshire Boulevard has been transferred to the City. Construction completion and move-ins for the Fourteenth Street/1402 Wilshire Boulevard site are estimated in 2028.

Past Council Actions
Meeting Date Description
08/27/2024 City Council direction to proceed with negotiations with HCHC based upon a revised development proposal
03/19/2024 City Council selection of the team led by HCHC for development of the City-owned sites at 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street
03/14/2023 City Council adoption of a resolution declaring City-owned sites at 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street as exempt surplus land in accordance with the Surplus Land Act
10/12/2021 City Council adopted the final 6th Cycle Housing Element Update (2021-2029)
6/25/2021 City Council provided direction to staff on the draft concepts and strategies to include in the 6th Cycle Housing Element Update Environmental Review
The development of affordable housing on 1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street were analyzed as part of the 2021-2029 6th Cycle Housing Element Environmental Impact Report (EIR) [SCH No. 2020100575] that was certified by Council on October 12, 2021, with an Addendum to the EIR approved on October 11, 2022. Development of affordable housing on City-owned properties implements a portion of that 6th Cycle Housing Element and is consistent with the Housing Element EIR. Therefore, no further CEQA review is necessary for the development of affordable housing on these sites.

The DDAs and Ground Leases for the development of affordable housing is also exempt from CEQA pursuant to Section 15182 of CEQA. Section 15182 statutorily exempts qualifying residential or a mixed use projects from CEQA that are consistent Item 1
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with an adopted specific plan. The DDA and Ground Lease for development of affordable housing meets the criteria described in Section 15182 in that the project would have a floor area ratio of at least 0.75, is located in a transit priority area, is consistent with the 6th Cycle Housing Element for which an Environmental Impact Report was certified, and is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in the Southern California Association of Governments’ Sustainable Communities Strategy.

Additionally, the declaration of 1402 Wilshire Boulevard as exempt surplus land upon transfer of fee title to the City 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.

Financial Impacts & Budget Actions
There is a HTF request of approximately $13,500,000 to cover the current funding gap, which falls within the City’s HTF Guidelines. Staff will return to Council with any investment of HTFs or other City resources that fall outside the City’s HTF Guidelines.

Prepared By: Ayala Scott, Senior Development Analyst
Prepared By: Ayala Scott, Senior Development Analyst
Approved Forwarded to Council
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Attachments:

A. A. Selection of Hollywood Community Housing Corporation (HCHC) as the Development Team for Affordable Housing on Three City-Owned Sites Adjacent to Wilshire Boulevard - March 19, 2024 (web link)
B. B. Exclusive Negotiation Agreement and License Agreement, May 31, 2024 C. C. City Council Meeting Minutes, August 27, 2024
D. D. Housing Element Appendix F, Figure F-7
E. E. Housing Element Program 2.E
F. F. Housing Commission Meeting Minutes, December 1, 2022 G. G. Euclid, Fourteenth St. and Sixteenth St. Sites
H. H. Adoption of Resolution Declaring Surplus Properties - March 14, 2023 Staff Report (Web Link)
I. I. 1217 Euclid St., 1211-1217 14th St., 1146 16th St. RFP J. J. Housing Commission Meeting Minutes, February 1, 2024 K. K. Original HCHC Proposal
L. L. Comments Submitted to HCHC - May 8 - 31, 2024
M. M. Comments Submitted to HCHC June 24-July 25, 2024
N. N. Comments Submitted to HCHC - October 9 - October 31, 2024 O. O. Wilshire DDA Term Sheet Euclid
P. P. Wilshire DDA Term Sheet 14th
Q. Q. Surface Lot Replacement Study
R. R. HCD Exempt Surplus Land Declaration Review Letter 10.21.24 S. S. Proposed Resolution Declaring 1402 Wilshire Boulevard Exempt Surplus Land T. T. Exterior Renderings
U. U. HCHC_Dec 2024_OAKS INITIATIVE FORM
V. V. HCHC_Dec 2024_Levine Act Disclosure Form
W. Written Comments
X. PowerPoint Presentation
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Packet Pg. 169 Attachment: Written Comments (6933 : Written Comments) 4 David Yakobson
From: Adelaide Kahn-Fowler <[email protected]>
Sent: Saturday, February 22, 2025 11:35 AM
To: Nikima Newsome; Clerk Mailbox; [email protected]; Susan Cola; Michelle M. Hugard
Cc: Corin L. Kahn
Subject: Companion Documents PART II to "On-Going City Business: Non-Agendized Item" RE Corin L. Kahn
Attachments: ATTACHMENT PART II of V.pdf

EXTERNAL
Hello,
Please see companions attachments, Part II of V, to a letter sent by Corin L. Kahn on February 20, 2025 pertaining to "On-Going City Business: Non-Agendized Item for Council Meeting Tuesday, February 25, 2025."
Best,
Adelaide
–
A
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ATTACHMENT C
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ATTACHMENT D
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ATTACHMENT E
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ATTACHMENT F
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ATTACHMENT G
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Packet Pg. 179 Attachment: Written Comments (6933 : Written Comments) 1217 Euclid Street (Parking Lot 7)
Parcel size: approximately 15,000 square feet
Housing Element projected capacity: 52 residences
Existing parking spaces: 49
Adjacent uses: Retail, restaurant, other commercial, multifamily. The site is bordered to the north by a 10-space surface lot serving businesses fronting Wilshire, as well as by a partially vacant commercial building that formerly housed Performance Bicycle and its parking garage. It is bordered to the south by a 10-unit apartment building.

ATTACHMENT G
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Packet Pg. 180 Attachment: Written Comments (6933 : Written Comments) 1211-1217 14th St. (Public Parking Lot 12)
Parcel size: approximately 15,000 square feet
Housing Element projected capacity: 52 residences
Existing parking spaces: 49
Adjacent uses: Banks, retail, restaurant, other commercial, commercial parking, multifamily. The site is bordered to the north by a four-space surface parking lot serving businesses fronting Wilshire, as well as by a commercial building that houses Unleashed by Petco. It is bordered to the south by a four-unit multifamily property. A 52-space paid surface lot for Bank of America and Video and Audio Center customers lies across the alley to the east.

Not a City
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Packet Pg. 181 Attachment: Written Comments (6933 : Written Comments) 1146 16th Street (Public Parking Lot 8)
Parcel size: approximately 7,500 square feet
Housing Element projected capacity: 26 residences
Existing parking spaces: 21
Adjacent uses: Restaurant, commercial, multifamily. The site is bordered to the north by a duplex and to the south by a restaurant and a partially vacant strip mall with a 9-space surface parking lot. The parking lot for the former MacMall and mattress store lies across the alley to the west.

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ATTACHMENT H
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Packet Pg. 183 Attachment: Written Comments (6933 : Written Comments) City Council
Report
City Council Meeting: March 19, 2024
Agenda Item: 11.A
1 of 18
To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department Subject: Award Request for Proposal and enter into Agreement with Hollywood Community Housing Corporation (HCHC) as the Selected Development Team for Affordable Housing on Three City-owned Sites Adjacent to Wilshire Boulevard
Recommended Action
Staff recommends that the City Council:

1. Award RFP #365 to Hollywood Community Housing Corporation (HCHC) for the future development of affordable housing on City-owned property at 1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street; and

2. Authorize the City Manager to negotiate and execute an Exclusive Negotiating Agreement with HCHC; and

3. Adopt a finding of no possibility of significant effect on the environment for selection of a development team pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines and find that future development of affordable housing on the Cityowned properties at 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street is consistent with the certified 6th Cycle Housing Element Environmental Impact Report (State Clearinghouse No. 2020100575).

Summary
The City’s 2021-2029 Housing Element commits the City to developing 100% affordable housing on specific City-owned sites to meet its share of regional affordable housing.

The sites identified in the Housing Element include three surface public parking lots near Wilshire Boulevard and 14th Street. In accordance with the Housing Element, the City released a Request for Proposals (RFP) to evaluate and select a development team qualified to undertake the development of the three sites. An evaluation committee composed of representatives from several City departments and a consultant reviewed

ATTACHMENT H
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proposals from nine teams. Staff recommends the City Council selection of a team led by Hollywood Community Housing Corporation (HCHC) based on the team’s overall experience in development, design, operations, and supportive services, including the strength of its proposal for the sites.

After the selection of a development team, the City Manager will execute an Exclusive Negotiating Agreement with the team’s lead developer to provide time for the selected team to complete their due diligence, refine the development proposal, and perform community engagement. Staff will then return to Council for consideration and approval of a ground lease and Disposition and Development Agreement involving the proposed development and the financial terms associated with use of the City-owned property.

Background
On October 11, 2022, the City Council adopted the 2021-2029 Housing Element, a State-mandated plan for meeting the City’s share of regional housing. State law requires that the Housing Element include an inventory of land that demonstrates the City’s capacity to realistically accommodate new housing development at all income levels. To address the City’s shortfall of sites that are suitable for the creation of housing affordable to low-income households, the City has committed to developing 100% affordable housing on City-owned sites identified in Appendix F, Figure F-7 of the Housing Element (Attachment A).

As specified in Housing Element Program 2.E (Attachment B), by June 30, 2027, the City plans to issue at least three requests for proposals (RFPs) for City-owned sites. On December 1, 2022, the Housing Commission provided advisory input to Council (Attachment C) on issuance of an RFP for teams to develop affordable housing on three City-owned surface public parking lots located at 1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street (Attachment D). On March 14, 2023, the Council declared the sites as exempt surplus land, allowing the City to move forward with the RFP in accordance with State law (Attachment E). The City issued the RFP (Attachment F) on June 22, 2023.

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The purpose of the RFP is to evaluate the qualifications, experience and capacity of proposer teams. The proposals are intended to illustrate the teams’ understanding of the opportunities and challenges presented by the three sites. Council selection of a development team is the selection of a lead developer and its proposed architect, proposed service provider, and other team members included in the lead developer’s proposal.

The selected team will conduct community outreach to solicit feedback on its development proposal. The selected team will incorporate community feedback to the extent feasible and will present a refined proposal for Council consideration and approval at a later date, as further described in the Next Steps section at the conclusion of this report.

Key Submittal Content and RFP Objectives
The RFP invited development teams to submit information about their qualifications, experience, and financial capacity to undertake and successfully complete an affordable housing development. Among other requirements, and incorporating Housing Commission input, the RFP directed teams to submit supporting narrative demonstrating prior experience with one or more of the following:
• Housing for the proposed priority population of the development • Housing affordable to a variety of income levels from zero to 80% of area median income (AMI), either rental or for-sale (home ownership) • Housing that meets or exceeds all Americans with Disabilities Act requirements
• Design that incorporates sunlight, air circulation, and/or architecture that complements the local aesthetic
The RFP also asked teams to submit designs, financing, and service plans to illustrate the team’s overall approach and thought process toward achieving the City’s affordable housing objectives. Respondents were encouraged to consider and propose approaches to replacing some of the 119 existing public parking spaces across the Item 1
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three sites. A component of the RFP was a community involvement plan that described the team’s proposed approach for engaging stakeholders.

Discussion
The City received proposals from nine teams (Attachments H-P). Each proposer team included a lead developer or co-developers and an architect. All teams except for one included a social services provider. The teams included a variety of other partners and consultants, such as general contractor, construction management, financial consultant, property management, and landscape architect. Council selection of a development team is the selection of a lead developer and its proposed architect, proposed service provider, and other team members included in the lead developer’s proposal.

Evaluation Committee
After receipt of proposals, Housing Division staff convened an evaluation committee composed of representatives from five City departments. The committee also included a community development and housing consultant from Harris & Associates, which created a detailed application checklist and project summary sheets for each proposal (Attachment R).

Review of Proposals
The proposals were scored on a scale of 0 to 100, using the criteria in the RFP. The maximum number of points possible under each evaluation criterion were as follows:
• Development and Operational Experience (30 points)
• Financing Analysis and Capacity (25 points)
• Design Experience (20 points)
• Overall Development Concept (15 points)
• Community Involvement Plan (10 points)
The evaluation committee considered the teams’ overall experience building and operating developments similar to the proposed development scale and population, including recent experience with analogous developments. The committee also evaluated the experience of proposed service providers.

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For the financing analysis and capacity criterion, the committee considered the teams’ ability to develop a financially feasible, sustainable, and dynamic project, as well as to build and operate the proposed project in a way that minimizes the City's Housing Trust Fund contribution and leverages diverse resources. Key considerations in scoring included the proposers’ track record obtaining non-City funding sources, such as bank loans, tax credit financing and State housing loans and grants; the amount of City funds projected to fill gaps in financing from outside sources; and the projected development cost per residence. The committee also considered the level of detail in the financing analysis and the thoroughness of financial information provided.

The architect’s demonstrated design experience with successful, completed projects of comparable complexity, scale, and nature was considered for each team’s design experience criterion score.

The committee evaluated the degree to which the proposals presented a thoughtful and feasible response to the components involving affordable housing, resident services (both for the general population and specialized supportive services for formerly homeless residents, if applicable), overall design, and feasibility of replacing public parking. Key factors for the overall development concept criterion included the mix of proposed resident populations (such as senior, large family, small family/individual, formerly homeless), the mix of bedroom counts per residence, and service staffing levels. The committee also considered the thought process behind the proposed designs, including how the design reflected community context and the needs of the proposed resident population.

The committee also considered how the teams addressed the issue of replacement public parking, as well as the potential cost to the City, since there are limited non-City public funds available for construction of replacement public parking. The proposals offered a range of parking scenarios, with most proposing to provide some combination of replacement public parking and private parking (for residents and staff, if applicable). Various types of parking were proposed, including surface parking, above-ground structure, semi-subterranean, and underground parking, including one proposal for underground mechanized parking lifts to maximize parking spaces while Item 1
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minimizing the levels of subterranean parking. Proposers cited proximity of public transit, the anticipated need for resident/staff parking based on target population, construction cost, and physical site constraints as contributing factors to their respective parking concepts. A comparison table of parking proposals is presented in the table below.

Parking Proposals
Team
Total
Parking
Spaces
Replacement
Public
Parking
Spaces
Private
Parking
Spaces
Anticipated City
Funding Need
HCHC Base case 105 9* 96 $0
HCHC Alternative
parking scenario 157 43 114 $5,500,000
Cesar Chavez
Foundation/ Step Up
on Second, Inc.
124 46 78 $0
Abode Communities 100 46 54
$7,700,000 (including
$2,450,000 for
replacement public
parking)
Community
Corporation of Santa
Monica
86 40 46 $0
EAH Housing 83 25 58 $0
BRIDGE Housing
Corporation 79 79 0 $2,700,000
Menorah Housing
Foundation 76 76 0 $0
W.O.R.K.S/CTY
Housing, Inc. 34 34 0 $17,214,529**
Housing Diversity
Corporation 0 0 0 $0
*nose-in street parking
**financial model reflects the worst-case scenario where the project is unable to source State Super NOFA Multifamily Housing Program funding
For the community involvement plan criterion, the committee considered the level of detail provided and the depth of outreach to the proposed priority population for the development or organizations serving them (for example, seniors, families, people Item 1
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experiencing homelessness). The committee also considered the plans’ approach to including those with barriers to participation, such as language, online access, and disability.

The scores from evaluation committee members were combined to produce an average score for each team, shown in the table below.

Team Total Score
Hollywood Community Housing Corporation (HCHC) 94.9
BRIDGE Housing Corporation 90.8
Abode Communities 85.6
Community Corporation of Santa Monica 82.9
EAH Housing 79.4
Cesar Chavez Foundation/Step Up on Second, Inc. 77.2
Menorah Housing Foundation 71.7
W.O.R.K.S./CTY Housing, Inc. 59.8
Housing Diversity Corporation 39.7
HCHC received the highest overall score from seven out of the nine evaluators and scored highest in all five evaluation criteria categories (except for a tie with the team led by BRIDGE for design experience).

Recommendation
Bidder Recommendation
Best Qualified Person/Firm Best Qualified Vendor or Firm Evaluation Criteria
(include all that apply)
Training/credentials/experience, competence/skill, capacity/ability to perform services promptly, sufficiency of financial/other resources, character/reputation, ability to provide future services as needed and price.

Municipal Code SMMC 2.24.190
Proposals Received
Abode Communities BRIDGE Housing
Corporation
Cesar Chavez
Foundation/Step Up
on Second
Community
Corporation of Santa
Monica
EAH Housing Hollywood Community Housing Diversity Menorah Housing Item 1
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Housing Corporation Corporation Foundation
W.O.R.K.S/CTY Housing
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
6/22/2023 City's Online
Bidding Site Santa Monica Daily Press 114 6/22/2023
Justification to Award
Based on the evaluation criteria, conclusions of the evaluation committee and criteria in SMMC 2.24.190, staff recommends the selection of the team led by HCHC. The committee valued the team’s overall experience, demonstrated capability, and thoughtful, context-specific design proposal. The developer has an extensive track record in building, operating, and managing housing for low-income households and people experiencing homelessness, both of which are among the groups identified in the RFP housing objectives. HCHC’s permanent supportive housing developments include Step Up on Colorado in Santa Monica (also known as the Kaufmann Apartments). HCHC brings to the table valuable experience with developments analogous to the one contemplated in the City’s RFP. HCHC has recently partnered with the City of Los Angeles on two ground lease developments, including one in the pipeline in Venice that is to replace 196 existing public parking spaces in a shared public-private parking facility.

Established in 1989, HCHC began rehabilitating and maintaining affordable housing in Hollywood and adjacent neighborhoods, and developed expertise in creating serviceenriched housing, particularly for persons living with HIV/AIDS. Since then, HCHC has expanded its geographic boundaries and development portfolio to build a range of housing types throughout Los Angeles County. Since its founding, HCHC has developed or rehabilitated 32 buildings with two more under construction and others in pre-development. The organization provides more than 1,200 affordable homes to lowincome families, seniors, people with disabilities, households experiencing homelessness, veterans, individuals and large families. In the last five years, HCHC has completed seven affordable rental buildings totaling 458 residences. Additionally, Item 1
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HCHC’s developments under construction and others in pre-development will add nearly 400 additional homes to its portfolio.

Collectively, the team led by HCHC has substantial experience, including in Santa Monica. HCHC’s Executive Director, Sarah Letts, formerly served as Executive Director of Community Corporation of Santa Monica. The People Concern (TPC), the social service partner, was founded in Santa Monica over 60 years ago as Ocean Park Community Center and has a proven track record of providing wrap around supportive services in permanent supportive housing communities, and working locally with extremely vulnerable homeless individuals with complex barriers to housing. TPC has a 92% housing retention rate among the permanent supportive housing residents it serves. The agency provides a variety of comprehensive, integrated services to its participants, including mental health care, wellness programs, income assistance and medical care. As one of the largest homeless and domestic violence service providers in Los Angeles County, TPC supports over 1,750 people in permanent supportive housing apartments and operates ten interim housing facilities across Los Angeles County.

Other key members of the HCHC led team with Santa Monica experience include architecture firm Kevin Daly Architects (kdA), led by Santa Monica Architectural Review Board member Kevin Daly; and general contractor Morley Builders, which has built several affordable housing developments in Santa Monica. HCHC has previously worked with the design and construction team on previous developments, bringing a track record of working successfully as a team.

After the City evaluation committee finalized its scoring of proposals and determined HCHC received the highest score, staff emailed follow-up questions to HCHC so that the organization could elaborate further on specific aspects of its experience and proposal. The questions pertained to previous success in operating housing that mixes permanent supportive housing with affordable housing for the general population; its plan for success in operating a development for the first time with TPC; lessons learned from a project HCHC currently has in predevelopment that replaces public parking; Item 1
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community engagement success around permanent supportive housing and reduced parking; past success in obtaining State grant funds for replacing public parking and the prospects for such funds being available for the RFP sites. The questions and HCHC’s responses are provided as (Attachment S).

Proposal - Residential
HCHC’s proposed development would serve multiple populations prioritized in the RFP:
people experiencing homelessness, large families, and small families, including individuals. The proposal includes 87 general affordable residences, 40 permanent supportive housing residences, and three units for property managers. HCHC would serve as property manager for all three sites. TPC would be the lead supportive service provider for the residents living in the development’s permanent supportive housing units, providing intensive case management and connections to outside services as needed. TPC’s services would include a wide array of support interventions including mental health services, crisis intervention, individual therapy, rehabilitation and therapeutic groups, substance abuse services, life skills education, medication management, and benefits assistance. HCHC would provide a full-time on-site resident services coordinator for the remaining low income, general affordable residences.

Examples of HCHC’s services include assessment of tenant supportive service needs and linkages to physical and mental health care, adult day care, legal assistance, and other community resources to support housing stability and financial well-being.

All the permanent supportive housing units would be located on the Euclid Street site, which would also include 24 affordable residences for the general population. HCHC has substantial experience developing communities that incorporate both permanent supportive housing and general affordable units, having opened five such mixedresidency communities in the last five years. In addition, HCHC has provided resident services under a Housing Authority City of Los Angeles (HACLA) Continuum of Care contract for over 20 years in which 112 chronically homeless tenants reside in 10 different sites, the majority of which are mixed general affordable and permanent supportive housing buildings. In the last five years, HCHC reports a housing retention rate above 95% and during the prior 12 months, a housing retention rate over 98%.

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The tables below, excerpted from HCHC’s proposal, summarize HCHC’s proposed bedroom mix, affordability levels, and target population.

HCHC and TPC collaborated on the design proposed in response to the RFP to ensure it would reflect the needs of anticipated residents as well as needs for staff, management, and security. The guiding principle for HCHC’s design is that it is “hidden in plain sight.” The buildings are six stories (on Euclid and Fourteenth) and four stories (on Sixteenth) above grade. The designs balance privacy for residents with views into and out of the properties and respond to existing development surrounding the sites.

The designs break up the massing of the buildings by incorporating substantial landscaping, private balconies, outdoor porches, and communal outdoor space such as Item 1
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courtyards, roof decks and gardens. The buildings are designed to maximize fresh air flow into the residences and minimize the need for air conditioning.

Proposal – Parking
HCHC’s proposal illustrates two potential parking scenarios, which are summarized in the table below.

For the Euclid and Fourteenth Street sites, both the base case and alternative scenarios assume one level of at-grade podium parking accessed through the existing alleys behind the properties, as well as one level of underground parking. In the base case scenario, all of the on-site parking would be reserved for private use, with nine nose-in street parking spaces on Euclid available for the public. Should the City wish to fund an additional level of underground parking at the Euclid and Fourteenth Street sites, the proposal envisions using both the nose-in street parking on Euclid and the at-grade podium parking at sites for public use, reserving the two levels of underground parking for residents. The Sixteenth Street site, which is the smallest of the three sites, would include a semi-subterranean garage in both scenarios, and as in the majority of proposals, was not considered large enough to accommodate replacement public parking.

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With Low-Income Housing Tax Credit funding as the only source of non-City funds available to replace public parking, the proposal illustrates the tradeoffs in terms of potential cost to the City, should the City wish to maximize parking on-site. Use of tax credit funding to pay for public parking would reduce the amount available to pay for the affordable housing, resulting in a financing gap that the City would likely need to fill with Housing Trust Funds.

HCHC’s alternative scenario assumes an extra level of underground parking to accommodate public parking on the ground floor as well as resident parking. In its proposal, HCHC cites other cost drivers associated with replacing public parking onsite, such as additional stairs, elevators, and lobbies for the public and residents.

Excavation and construction of another level of underground parking would therefore increase the development timeline and budget.

It should be noted that both the base case and alternate scenarios in HCHC’s proposal also assume the highest number of resident/private parking spaces among the proposals submitted. HCHC’s parking scenarios estimate the maximum number of spaces that could be accommodated on one and two levels of subterranean parking.

The distribution of parking spaces between public and private uses can shift based on City direction and financial feasibility. The number of public parking spaces to be replaced and how to fund public parking will be a key discussion for HCHC and the City during the due diligence period following execution of the ENA.

HCHC has gained valuable experience over the course of several years working on replacement public parking in a shared public-private facility in Venice. HCHC’s experience could inform its collaboration with the City on such matters as design considerations for balancing resident security with public access and whether the City would operate the garage or whether it would hire a private operator. HCHC team member Morley Builders assisted with cost estimation for the Venice development and would bring its current knowledge about parking construction costs to bear to the proposed development.

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Community Involvement Plan
Should the City Council select HCHC’s development team, HCHC will solicit feedback from the community, the Housing Commission and the City Council. HCHC’s community involvement plan includes outreach to neighboring residents and businesses, and names specific community stakeholder groups, including the Wilshire Montana Neighborhood Coalition and Santa Monica Mid-City Neighbors. HCHC has demonstrated success with neighborhood outreach around permanent supportive housing, citing an example from one of its previous permanent supportive housing developments in which close collaboration with the local neighborhood council resulted in design changes as well as support from the adjacent single-family neighborhood.

Housing Commission Action
Staff agendized the proposed selection of the HCHC development team for Housing Commission consideration and advisory input to Council. At its February 1, 2024 meeting, the Housing Commission passed the following two motions:
“The Housing Commission, in support of increasing affordable home ownership in Santa Monica, would like for the team members to provide specific information about their history with home ownership programming and would like, whatever team that is chosen going forward, to actively incorporate consideration of homeownership opportunities in every part of the process.” “The Housing Commission is lending their support, with caveats that this is based on the information the Housing Commission has in front of them, and that the Housing Commission has unaddressed concerns about the participation of The People Concern, to the development team that staff has recommended.” Affordable Home Ownership
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surprising, given the gap between the cost of development and the amount a lower income household could afford. Furthermore, the RFP asked proposers to provide examples and supporting narrative demonstrating prior experience with either rental or for-sale housing affordable to households earning 80% of AMI or less. None of the teams detailed prior experience developing affordable homes for sale. The team led by BRIDGE Housing Corporation referenced for-sale housing in its description of community outreach in 2005-2006 with other development partners on a mixeduse, multi-phase development in San Diego. BRIDGE also listed two home ownership developments in a master plan phase in its pipeline but did not provide targeted income levels or any other information and did not propose home ownership units in its proposal.

Designating one or more of the three City-owned sites for home ownership in the RFP would require the City to take a number of factors into consideration, including the 1) amount of City Housing Trust Fund commitment necessary to achieve financial feasibility, compared to any City funding commitment needed for affordable rental housing feasibility; and 2) identifying a development team with demonstrated expertise in successfully developing affordable home ownership for low-income households.

In the Housing Element, City-owned sites are committed for 100% affordable housing for households earning 80% of AMI or less. The amount of City Housing Trust Fund investment necessary to construct a home ownership development, and to assist lower income households to purchase a home, will be higher per residence than the typical City funding investment necessary for an affordable rental housing development. The primary sources of funding available for affordable housing development are Federal and State tax credit financing programs. Tax credit financing typically provides a substantial portion of the funds for construction of an affordable housing development.

For City-funded affordable rental developments that have been constructed since 2022, tax credit financing funded the majority of total development costs on average.

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developments, but since the City has not previously participated in such programs, the extent to which State programs could cover the total costs of a home ownership development has not been determined. Furthermore, specific expertise is required to obtain construction financing for affordable homes for sale, prequalify low-income buyers, and sell affordable homes.

The People Concern
The People Concern has a long track record of working with the City of Santa Monica, the City and County of Los Angeles housing authorities and County Department of Health Services and County Department of Mental Health to provide a wide array of services for people experiencing homelessness, including permanent supportive housing. TPC supports over 1,750 people in permanent supportive housing apartments, with a 92% housing retention rate among the supportive housing residents it serves. As part of the team’s proposal, TPC provided information about its experience as the lead service provider at permanent supportive housing developments at 32 sites in Los Angeles County for over 30 years, which includes partnerships with affordable housing developers such as A Community of Friends, Linc Housing, and Meta Housing. TPC is the proposed service provider for three out of the top four scoring development teams that responded to the RFP. The HCHC team’s proposal included a copy of a summary report to County Department of Health Services of survey results from tenants receiving services from TPC in permanent supportive housing. Responses indicated that tenants feel they are receiving helpful, respectful, and culturally sensitive treatment and responses. An Information Item provided to Council in 2021 compiling audits and inspections of TPC operations and facilities is provided as (Attachment T).

Next steps
Following consideration and selection by Council of a development team, staff will prepare an Exclusive Negotiating Agreement (ENA) for City Manager and development team execution. The ENA will enumerate the scope and timing of the community outreach process, which is anticipated to span approximately three months and allow for public input into the design and development plan. Staff anticipates returning to Item 1
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Council with a final development proposal for consideration and approval in the first quarter of 2025.

Past City Council Actions
03/14/2023 Adoption of resolution declaring 1217 Euclid Street, 1211- 1217 Fourteenth Street and 1146 Sixteenth Street as exempt surplus land in accordance with the Surplus Land Act
10/11/2022 Adoption of 2021-2029 Housing Element
Environmental Review
Selection of a development team and executing an ENA for affordable housing on Cityowned properties 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. Additionally, the issuance of an RFP for development of affordable housing on City-owned properties located near Wilshire Boulevard and 14th Street was analyzed as part of the 2021-2029 6th Cycle Housing Element Environmental Impact Report (EIR) [SCH No. 20212269242021] that was certified by Council on October 12, 2021, with an Addendum to the EIR approved on October 11, 2022. Development of affordable housing on City-owned properties implements a portion of that 6th Cycle Housing Element, and is consistent with the Housing Element EIR. Therefore, no further CEQA review is necessary.

Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Staff estimates that the potential parking revenue loss due to the closure of Parking Lots 7, 8 and 12 would be approximately $0.2 million annually. Following Council selection of a development team, staff would return to Council with proposed business terms associated with the proposed development, including terms for disposition of City land, and any required investment of Housing Trust Funds or other City resources.

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Prepared By: Natalie Verlinich, Housing Manager
Approved Forwarded to Council
Attachments:

A. Housing Element _Appendix F_Figure F-7
B. Housing Element Program 2.E
C. Housing Commission Meeting Minutes, December 1, 2022 D. Euclid, Fourteenth St. and Sixteenth St. Sites
E. Adoption of Resolution Declaring Surplus Properties - March 14, 2023 Staff Report (Web Link)
F. 1217 Euclid St., 1211-1217 14th St., 1146 16th St. RFP G. City of Santa Monica Housing Trust Fund Plan
H. Housing Element_Appendix B_Housing Needs Assessment
I. Abode Communities Proposal
J. BRIDGE Housing Corporation Proposal
K. Cesar Chavez Foundation_Step Up on Second Proposal
L. Community Corporation of Santa Monica Proposal
M. EAH Housing Proposal
N. Hollywood Community Housing Corporation Proposal
O. Housing Diversity Corporation Proposal
P. Menorah Housing Foundation Proposal
Q. W.O.R.K.S._CTY Housing Proposal
R. Harris & Associates Summary of Proposals
S. Follow-Up Questions and Answers, Hollywood Community Housing Corporation T. Audit and Inspection Summary, The People Concern (May 20, 2021 Information Item)
U. Oaks Initiative Disclosure Form
V. Levine Act Disclosure Form
W. Written Comments
X. PowerPoint Presentation
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Packet Pg. 201 Attachment: Written Comments (6933 : Written Comments) 5 David Yakobson
From: Adelaide Kahn-Fowler <[email protected]>
Sent: Saturday, February 22, 2025 11:35 AM
To: Nikima Newsome; Clerk Mailbox; [email protected]; Susan Cola; Michelle M. Hugard
Cc: Corin L. Kahn
Subject: Companion Documents PART I to "On-Going City Business: Non-Agendized Item" RE Corin L. Kahn
Attachments: ATTACHMENTS PART I of V.pdf

EXTERNAL
Hello,
Please see companions attachments, Part I of V, to a letter sent by Corin L. Kahn on February 20, 2025 pertaining to "On-Going City Business: Non-Agendized Item for Council Meeting Tuesday, February 25, 2025."
Best,
Adelaide
–
A
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ATTACHMENT A
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@santamonicacity

MINUTES

HOUSING COMMISSION

REGULAR MEETING

MEETING LOCATION

VIA TELECONFERENCE
Thursday, December 1, 2022
6:00 P.M.

Call to Order
Chair Gray called the meeting to order at 6:00 p.m.

Roll Call
The following persons were recorded in attendance by the Recording Secretary:

Present: Commissioner Hilton, Commission Hamilton, Commissioner Gomez, Commissioner Borresen, Vice Chair Marasco, Chair Gray

Absent: Commissioner Evarts
Also present: Ayala Scott (Senior Development Analyst), James Kemper (Housing Program Manager), Noe Mendoza (Staff Assistant III)

1. Special Agenda Items
a. Commissioner Announcements
b. Commissioner Reports

ATTACHMENT A
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2. Consent Calendar: All items will be considered and approved in one motion unless removed by a member for discussion
Chair Gray would like to pull September and October Minutes for discussion Commissioner Hilton would like to pull September Minutes for discussion a. July 21, 20220 Minutes
b. August 4, 2022 Minutes
c. September 1, 2022 Minutes
i) Chair Gray does not remember inviting Douglas Sloan
ii) 4b should state that Commission Hilton made the motion, and not Commissioner Hamilton
iii) Typo on meeting date (year)
iv) Commissioner Hilton would like his motion for 4b to be include “remove or reword”
d. October 6, 2022 Minutes
i) Include in brackets for item 5b that the letter was discussed ii) Will provide Commissioner Hilton’s motion verbatim for item 5b e. November 10, 2022 Minutes
Motion to accept 2a,2b, and 2e
Ayes: Commissioner Hilton, Commissioner Hamilton, Commissioner Gomez, Commissioner Borresen, Vice Chair Marasco, Chair Gray
Noes:

Abstain:

Absent: Commissioner Evarts

5. Staff Administrative Items
a. Presentation by Ayala Scott (Senior Development Analyst). Discussion and possible action providing advisory recommendation(s) to City Council regarding authorization of a request for proposal (RFP) for the development of affordable housing on City-owned property near Wilshire Boulevard and 14th Street (1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street)
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Vice Chair Marasco Motions:

To ensure the design, construction and administration of affordable housing on the three aforementioned sites, that is
1) economically diverse, with tenants whose incomes are zero to 80% AMI but mostly below 60%. AMI
2) supports primarily families of two or more people
3) fully accessible to disabled people
4) conducive to its tenants thriving
5) contributes to housing stability,
The Housing Commission recommends that the successful RFP shows demonstrated competency in and previous success with diverse and extremely low and low income households, disabled people, families of two or more people, and previous projects that meet or exceed all ADA requirements, and design that enhances the quality of life of its tenants, including things like sunlight and air circulation with architecture that complements the local aesthetic
and priority given to parties who are willing and are able to dedicate one of the sites or part of the one of the sites to a demonstration of affordable home ownership.

Further, the Housing Commission strongly recommends advertising this RFP widely to attract the most diverse pool of applicants possible, including unconventional fora.

Second by Commissioner Gomez
Ayes: Commissioner Hamilton, Commissioner Gomez, Commissioner Borresen, Vice Chair Marasco, Chair Gray
Noes: Commissioner Hilton
Abstain:

Absent: Commissioner Evarts

6. Housing Commission Member Discussion Items
a. Commissioner Hilton on Proposition R (1990) affordable housing: Intent, history, including household incomes, community benefit.

Adjournment
Chair Gray adjourned the meeting at 9:42 p.m.

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Attest: Approved:
_______________________ _______________________
(Name) (Name)
Secretary Chair
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ATTACHMENT B
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CITY OF SANTA MONICA
1217 EUCLID STREET, 1211-1217 FOURTEENTH STREET,
1146 SIXTEENTH STREET AFFORDABLE HOUSING

DEVELOPMENT REQUEST FOR PROPOSALS

REQUEST FOR PROPOSALS
Housing Division
RELEASE DATE: June 22, 2023
DEADLINE FOR QUESTIONS: July 21, 2023
RESPONSE DEADLINE: September 15, 2023, 3:00 pm

APPROVED FOR ADVERTISEMENT
CITY CONTACT:

Ayala Scott

ATTACHMENT B
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Packet Pg. 209 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
Table of Contents

1. Introduction

2. Term

3. Scope of Work

4. Questions and Answers

5. Vendor Questionnaire

6. Evaluation Criteria

7. Award Process

8. Terms & Conditions
Attachments:

A - 2021-2029_Housing_Element_Program_2.E
B - 2021-2029_Housing_Element__Appendix_F_Figure_F-7
C - Housing_Element_Appendix_B_Housing_Needs_Assessment D - Housing_Trust_Fund_Plan
E - Housing_Trust_Fund_Guidelines
F - Site_maps
G - Assessor_maps
H - Santa_Monica_Housing_Authority_Administrative_Plan_2023-2024 I - Proposer Checklist
J - PSA Contract Template
K - Prevailing Wage Job Acknowledgement
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Packet Pg. 210 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
1 INTRODUCTION

1.1 Summary
For more than four decades, Santa Monica residents and voters have supported the preservation and production of affordable housing as a core local value. As market pressures have affected the affordability of housing in Santa Monica, the community has continued to support the urgency and need for more affordable housing. Creating more affordable housing is a key strategy for maintaining economic diversity and affordability in Santa Monica.

On October 11, 2022, the Santa Monica City Council adopted the 2021-2029 Housing Element, a State-mandated plan for meeting the City’s share of regional housing needs.

State law requires that the Housing Element include an inventory of sites that demonstrate the City’s capacity to realistically accommodate housing at all income levels. To address the City’s shortfall of sites that are suitable for the creation of housing affordable to lower income households, the City has committed to developing 100% affordable housing on City-owned land, as provided in Housing Element Program 2.E (Attachment A).

The Housing Element identifies the City-owned sites with the highest potential for affordable housing. These include three City public surface parking lots at 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street. As shown in Housing Element Appendix F, Figure F-7 (Attachment B), these three sites are estimated to accommodate a total of 130 residences. The City seeks creative conceptual proposals from proven development teams to build affordable housing on these sites.

The purpose of this RFP is to evaluate the qualifications, experience and capacity of proposer teams. Staff will evaluate and recommend a development team to the City Council, which will select a development team. The conceptual proposals will illustrate the teams’ qualifications as applied to the three sites, with the final development proposal to be determined by the community outreach process after Council selects a team.

Housing Objectives for the Development
The affordable housing objectives for the development at 1217 Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street include:
• The sites should collectively accommodate the 130 total homes estimated in the Housing Element for these three sites. If the number of homes projected in the Housing Element is not feasible or optimal for the proposer’s development concept, proposer(s) should explain why and propose an alternative.

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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
• The affordable housing will serve one or more of the groups identified in the Housing Element as having greater difficulty accessing housing in Santa Monica (Attachment C) or that are prioritized in the most recently adopted City Housing Trust Fund Plan (Attachment D). These include Santa Monicans experiencing homelessness, seniors, persons living with disabilities, large families, and small families (including individuals), single-parent households, and households living in poverty.
• All residences in the proposed developments must serve residents earning no more than 80% of area median income (AMI), subject to long-term income eligibility and affordability covenants.
• All residents must be referred from a City-maintained list of prospective applicants, with a priority for those who live or work in Santa Monica.

The developments should be cost-effective and minimize City Housing Trust Fund investment. The City’s Housing Trust Fund Guidelines are provided as Attachment E.

1.2 Background
The Neighborhood
The scattered sites (shown in Attachments F and G) consist of three (3) public surface parking lots located near Wilshire Boulevard between Euclid Avenue and Sixteenth Street, at the convergence of the City’s Wilmont and Mid-City neighborhoods. This segment of Wilshire Boulevard includes the UCLA Health Santa Monica campus and neighborhood-serving commercial uses such as restaurants, cafes, beauty salons, banks, a market, gym, and a post office. There are also retailers such as Vons, Rite Aid, Unleashed by Petco, Ulta Beauty and Target that occupy larger commercial spaces on Wilshire Boulevard. Several commercial properties on Wilshire Boulevard are vacant.

The areas surrounding Wilshire Boulevard generally feature multifamily developments of four to ten residences, though there are a few developments with more units on larger lots. There are several affordable housing developments in the area, including a 40-unit senior residence building near 10th Street and Broadway that opened in 2021.

An application was submitted in 2022 for a 34-residence 100% affordable development near 19th Street and Wilshire Boulevard. Other uses in the neighborhood include Lincoln Middle School and Lincoln Child Development Center.

The commercial uses on Wilshire Boulevard are generally one or two stories, while residential developments in the area are generally two or three stories. Medical buildings associated with UCLA Health, located on Fifteenth and Sixteenth streets, Wilshire and Arizona Avenue, are substantially taller than the other uses in the area.

Street parking is available at metered spaces on Wilshire Boulevard. Metered and unmetered street parking is available on the surrounding streets, subject to time restrictions and/or permit requirements. In addition to the three (3) City parking lots that Item 1
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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
are the subject of this RFP, off-street parking is provided by surface lots or structures that are accessory to the commercial and residential uses.

Regional roadway access to the area is provided from the Santa Monica Freeway (Interstate 10), located approximately 0.7 miles to the south of the site. Fixed-transit access is provided by the Exposition Light Rail Line, with the 17th Street/Santa Monica College station less than one mile to the south. Rapid and local bus service in the vicinity is provided by Metro and the Big Blue Bus.

The Sites
Responses to this RFP must include concepts for all three sites to maximize competitiveness for non-City sources of funding, achieve economies of scale in construction, and provide flexibility for locating replacement public parking.

Site Locations
1217 Euclid Street (Parking Lot 7)
The approximately 15,000-square-foot site is located between Wilshire Boulevard and Arizona Avenue. It is accessible via Euclid Street to the west and a midblock alley to the east. The lot contains 49 parking spaces. It is bordered to the north by a 10-space surface lot serving businesses fronting Wilshire Boulevard, as well as by a partially vacant commercial building that formerly housed Performance Bicycle and its parking garage. It is bordered to the south by a 10-residence apartment building.
1211-1217 Fourteenth Street (Parking Lot 12)
The approximately 15,000-square-foot site is located between Wilshire Boulevard and Arizona Avenue. It is accessible via Fourteenth Street to the west and a midblock alley to the east. The lot contains 49 parking spaces. It is bordered to the north by a four-space surface parking lot serving businesses fronting Wilshire Boulevard, as well as by a commercial building that houses Unleashed by Petco. It is bordered to the south by a four (4) residence multifamily property. A 52-space paid surface lot for Bank of America and Video and Audio Center customers lies across the alley to the east. 1146 Sixteenth Street (Parking Lot 8)
The approximately 7,500-square-foot site is located between Wilshire Boulevard and California Avenue. It is accessible via a midblock alley to the west and Sixteenth Street to the east. The lot contains 21 parking spaces. It is bordered to the north by a duplex and to the south by a restaurant and a partially vacant strip mall with a 9-space surface parking lot.

Planning and Zoning Information
The 2021-2029 Housing Element includes goals and policies to guide the City’s strategy for housing its residents at all income levels. The Housing Element includes programs and policies to implement the following goals:

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Packet Pg. 213 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

1. Production of new housing that is sustainable, innovative, safe and resilient, appropriate with the surrounding neighborhood, offers opportunities for active and healthy living, including walking and biking, and increases equitable housing opportunities.

2. Housing production for all income categories including for the community’s workforce and most vulnerable communities.

3. Preservation of the existing supply of housing and prevent displacement of existing tenants.

4. A community that provides equitable housing access to all neighborhoods.

5. Housing for persons experiencing homelessness.

6. Provision of housing assistance and supportive programs and services to extremely low-, very low-, low-, and moderate-income households and households with special needs, families, seniors, and the homeless.

7. Eliminate housing discrimination on the basis of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, age, marital status, national origin, ancestry, familial status, income level, source of income, disability, veteran or military status, genetic information, or other such characteristics.

As provided in the Housing Element, the City has adopted corresponding amendments to the Zoning Ordinance that are required to accommodate the estimated realistic capacity for affordable housing on City-owned sites. The sites’ residential capacity as projected in the Housing Element is shown in the table below. Conceptual proposals must demonstrate how they will accommodate a total of 130 estimated homes for households up to 80% of AMI across the three sites, although deeper affordability levels may be considered. If the number of homes projected in the Housing Element is not feasible, proposer(s) should explain why and propose a feasible alternative.

Site Estimated capacity in Housing Element for homes
affordable to low income households (earning up to 80%
AMI)

1217 Euclid Street 52
1211-1217 Fourteenth Street 52
1146 Sixteenth Street 26
The developments on City-owned sites will be subject to a ministerial review process and design review. As the sites that are the subject of this RFP are not located within Item 1
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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
the Coastal Zone, proposed developments will not require a Coastal Development Permit from the California Coastal Commission.

Land Ownership
The City will maintain ownership of the land and offer a long-term ground lease to the developer. The housing created must remain affordable for the longest of a) the length of the ground lease term; b) as long as the site is developed with a residential use; or c) 55 years.

Governing documents
The ground lease will be subject to City Council approval. Depending on the exact nature of the proposed development, it may also be governed by a development review permit, development agreement, or disposition and development agreement.

CEQA
The developments will be subject to a ministerial review process and statutorily exempt from CEQA.

Other Uses
Depending on the populations targeted, additional amenities and services (community room, exercise facility, homework center, etc.) may also be considered. Due to the sites’ location on mostly residential streets, public-serving ground floor commercial uses would not be appropriate to include in conceptual proposals.

Parking
Respondents to this RFP should illustrate approaches that would replace some or all of the public parking in their proposals. Proposals should describe any site, cost, or design constraints that inform the replacement parking proposal. Proposals should also consider the need for residential parking based on the anticipated needs of the priority population.

1.3 Contact Information
Any inquiries or requests regarding this procurement should be submitted via OpenGov. Other City officers, agents, employees or representatives do not have authority to respond on behalf of the City. Contact with unauthorized City personnel during the selection process may result in disqualification.

Ayala Scott
Senior Development Analyst
1685 Main Street
Santa Monica, CA 90401
Email: [email protected]
Phone: (310) 458-2200 Ext: 5116
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Packet Pg. 215 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
Department:

Housing Division
Department Head:

Danielle Noble
Acting Director Community Services

1.4 Timeline
Proposal Calendar
The following is a list of key dates:

Release Project Date June 22, 2023
Question Submission Deadline July 21, 2023, 3:00pm
Question Response Deadline August 4, 2023, 3:00pm
Proposal Submission Deadline September 15, 2023, 3:00pm 2 TERM
The City of Santa Monica, (referred to hereafter as “the City”) is inviting proposals from qualified persons or firms for an initial term of 0, with 0 for renewal of 0 each, to be exercised at the City’s sole discretion.
3 SCOPE OF WORK
Insert detailed statement/scope of work and deliverables including reporting requirements. List the criteria that must be met and that will be used to score and evaluate the proposals.

3.1 Priority Populations
Proposers must demonstrate how they will serve one or more of the City’s priority populations as described in the most recently adopted City Housing Trust Fund Plan (Attachment D) and/or populations identified in the Housing Element as having greater difficulty accessing housing in Santa Monica (Attachment C). These include Santa Monicans experiencing homelessness, seniors, persons living with disabilities, large Item 1
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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
families, small families (including individuals), single-parent households, and households living in poverty. The RFP will not prescribe specific numbers of homes for these populations. Developers would be required to use a City-managed waitlist to fill vacancies.

Permanent Supportive Housing (PSH)
Proposals are not required to include PSH. If proposed, PSH residences must be:
o Made available to households earning below 30 percent of Area Median Income who experience multiple barriers to housing stability. o Deeply affordable with rents subsidized so that a tenant pays no more than 30 percent of household income towards rent, even when tenants have limited or no income. Therefore, tenants without income would initially not be required to pay rent, though they should be provided with benefits enrollment assistance (i.e. SSI, GR) or job-placement and training assistance to help increase income.
o Supported by a flexible array of comprehensive services that are marketed and made available to all PSH tenants, with tenant participation being voluntary. Each tenant must have access to an array of services including, but not limited to, case management, medical services, mental health services, substance use treatment, employment and life skills counseling, eviction prevention programs, social and recreational events, benefits enrollment assistance, and tenant advocacy. However, a lease may not be terminated solely because a tenant chooses not to participate.

PSH proposers must include a supportive services plan in partnership with either a homeless service provider that is under contract with the County, or with another source of similar services. The supportive services plan should at minimum include a funding strategy, agency partners and roles, MOU or letter of support with partners, staffing plan, services on-site, services off-site, schedule of on-site staff, steps before beginning eviction, and coordination services with the County and/or local providers.
o The service provider(s) must have at least five years’ experience providing services to proposed homeless populations in supportive housing. See the Housing Authority’s Administrative Plan (Attachment H) for information on how the City prioritizes homeless populations in the Continuum of Care and Emergency Housing Voucher programs. The service provider(s) must be in good standing with the Los Angeles County Department of Health Services and must have a demonstrated track record producing successful client outcomes. The development is expected to provide on-site office space to the providers of or liaisons to the array of services described in the proposer’s supportive services plan.

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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

3.2 Submission Instructions
Criteria
Submit proposals that emphasize criteria outlined in the Evaluation Criteria (Section 6).

Submittal Content

1. Cover Letter
The cover letter shall serve as an Executive Summary of the major points contained in the proposal and must be signed by a principal or officer authorized to represent and commit on behalf of the firm(s). Cover letters should be no more than two (2) single-spaced pages and shall include the name, address, phone number and email address of the proposer’s lead contact person.

2. Development Team Information
Lead Developer Information:

1. State the official name, address, and the names and titles of the proposer’s principals.

2. Indicate the form of legal entity (e.g., individual, limited partnership, nonprofit corporation, general partnership, joint venture, for-profit corporation, limited liability company, etc.) and any relationship the development organization may have with a parent corporation, subsidiaries, joint ventures, or other entities.

3. Experience working within the region and in Santa Monica specifically.

4. Submit one copy of the proposer’s Articles of Incorporation, partnership, or other business organizational documents (as appropriate) filed with the California Secretary of the State. Organization must be in good standing and authorized to do business in California.

Development Team:

1. Provide the name, title, address, telephone and fax number, email address, and resumes for key development team members such as the developer(s), service provider(s), architects and designers, and other team members who will play a key role in the development and operation of the project. Please provide an organization chart that identifies key contacts and the relationship between team members.

2. For each firm included in the development team, provide examples and supporting narrative demonstrating prior experience with one or more of the following:
▪ Housing for the proposed priority population
▪ Housing affordable to a variety of income levels from zero to 80% AMI (either rental or for-sale)
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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
▪ Housing that meets or exceeds all Americans with Disabilities Act requirements
▪ Design that incorporates sunlight, air circulation, and/or architecture that complements the local aesthetic

3. If on-site services will be provided, include information demonstrating the proposed service provider’s experience in producing successful outcomes with the proposed priority population for the development. Such data may include, but not be limited to, client satisfaction survey results and/or thirdparty program evaluation.

3. Development and Services Concept

1. In narrative form, provide a description of the overall vision, housing concept (including affordability targets), feasibility of replacing public parking, and development program. Include a summary of uses and floor areas. The submittal should include statements indicating how the development concept satisfies the housing objectives and conditions specified in Section 1.1 of the RFP. Responses to this RFP must include concepts for all three sites.

2. If on-site services will be provided, include a general description of the on-site location where services will be provided, the name of the organization(s) that will provide the services, a conceptual service plan from the partner organization(s), and a funding strategy for the services. If PSH is proposed in the development concept, each proposal must include a letter of intent with any service partner identified.

3. If PSH is proposed, RFP respondents must include a supportive services plan in partnership with either a homeless service provider that is under contract with the County, or with another source of similar services. The supportive services plan should at minimum include a funding strategy, agency partners and roles, MOU or letter of support with partners, staffing plan, services onsite, services off-site, schedule of on-site staff, steps before beginning eviction, and coordination services with the County and/or local providers.

4. Provide a conceptual site and floor plan illustrating proposed site and building configurations, number of residences and bedroom sizes, target populations, amenities and services for residents, service provider space (if applicable), and bicycle, pedestrian, and vehicular circulation and access points.

5. Include a preliminary schedule of performance outlining the estimated time for each step and phase (if appropriate), including a summary timeline or other similar graphic representation of the development process. The schedule should recognize the time involved in finalizing the Disposition and Development Agreement (DDA) if necessary, receiving project entitlements, designing the project, financing the project, starting and completing construction, lease negotiations, marketing and final occupancy.

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Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

2. a.
b.
c.
i.

C. 4. Community Involvement Plan
Describe a plan and overall approach for engaging residents, neighborhood organizations, target populations (including potential future residents of the proposed development), and other interested stakeholders and individuals in providing feedback on the project, as well as how the development team will address community feedback on the development. The community involvement plan must detail an approach to reaching stakeholders who have barriers to engaging with traditional outreach methods, including but not limited to language, online access, and disability. At a minimum, the plan must include at least one (1) community workshop open to the public prior to finalizing design drawings for submittal to the Community Development Department. The workshop must be noticed to residents and businesses within 500 feet of each of the three sites, as well as widely publicized in the community.

5. Financing Strategy

1. Provide a conceptual construction period sources and uses of funds statement and a permanent sources and uses of funds statement for the proposed scope of development broken down by use (i.e. residential, replacement public parking).

2. Provide an annotated development pro-forma that identifies the direct construction costs, the indirect construction costs, and the construction period financing costs for the proposed scope of development. The information must include preliminary estimates of the contractor-related costs; developer fees; and any payments proposed to be made to parties related to the development team. The development will be subject to the California state prevailing wage rates.

3. Provide a summary of notes that will assist the City in understanding the assumptions applied in the financial analysis.

4. Provide the following operating pro forma information:
▪ Estimates of income, operating expenses and debt service payments for the project at stabilized occupancy.

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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
▪ A conceptual cash-flow projection for the project for the 55-year period following the project’s full buildout and achievement of stabilized occupancy. The projection should identify payments anticipated to be made to the tax credit partner (if applicable), debt service payments on any City assistance to the project, and the ground lease payments.

Describe the assumptions applied in the projections.

5. Based on information provided in the sources and uses of funds statements, clearly set forth the following information:
▪ Construction loan underwriting terms; and
▪ Permanent loan underwriting terms.

6. Describe any responsibilities and/or obligations that the team is proposing that the City accept.

7. Describe any anticipated rental subsidies for the development.

8. Identify any financial contingencies that the team is imposing on the proposal being offered to the City.

9. Identify the proposed repayment structure for any requested City financial assistance.

10.Identify the proposed ground-lease term, structure and payment schedule being proposed.

11.Financing timeline.

12.Services to be offered and budget with sources.

6. Development Team’s Financial Capacity and Experience

1. The most recent audit, including the management letter, review or compilation financial statement prepared by an independent accounting firm in accordance with generally accepted accounting principles. The Financial Capacity Materials should be submitted for the team member(s) that will be held responsible for the project financing and ground lease obligations imposed on the transaction. The Financial Capacity Materials must cover a three-year period ending no earlier than 2020.

2. Complete portfolio of developments, including current developments and developments in the pipeline. Highlight developments that are analogous to the project being proposed.

3. Complete portfolio of partnerships and financing for supportive services, including current partnerships and partnerships in the pipeline.

4. Demonstrated experience obtaining the funding sources identified in the sources and uses of funds statement required in Financing Strategy item #5a.

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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

5. List of developments that have successfully competed for 9% tax credits.

6. Receipt and administration of federal housing subsidies.

7. Identification of the outstanding recourse and non-recourse debt, including repayment terms for the team member(s) that will be financially responsible for the proposed project.

8. Identification of any non-performing loans including the outstanding balance and duration of the delinquency for the team member(s) that will be financially responsible for the proposed project.

9. Identification of any loans or financial obligations that the team member(s) that will be financially responsible for the proposed project have defaulted on during the last five years.

10.Any legal actions taken against developer in the last five years, including fair housing violations.

3.3 Developer Agreement
The final agreement to develop the site between the team and the City will be in the form of a Ground Lease. Depending on the nature of the proposed improvements, a DDA may also be necessary. Additionally, if rental subsidies are anticipated, a contract for the rental subsidies would be required.
4 QUESTIONS AND ANSWERS
Vendor Queries Due
Questions must be submitted online in the “Q&A” tab. The City will only accept or respond to questions submitted through the online vendor portal. 5 VENDOR QUESTIONNAIRE

5.1 Proposal*
*Response required

5.2 Letter of Transmittal*
Please upload your letter of Transmittal as a PDF here. Make sure to include the following items.

A. Identify the submitting organization;
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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
B. Identify the name, title, telephone and fax numbers, and e-mail address of the person authorized by the organization to contractually obligate the organization; C. Identify the name, title, telephone and fax numbers, and e-mail address of the person authorized to negotiate the contract on behalf of the organization; D. Identify the names, titles, telephone and fax numbers, and e-mail addresses of persons to be contacted for clarification;
E. Be signed by the person authorized to contractually obligate the organization; F. Acknowledge receipt of any and all amendments to this RFP. *Response required

5.3 Qualifications*
Provide a brief summary of your company’s history, its capabilities, and its recent relevant experience (last five years). Also, describe your demonstrated experience with similar projects and qualification including professional licenses and certifications. *Response required

5.4 Key Personnel*
Describe the project team composition and include resumes of key personnel. Proposed members should be available for ninety (90) days from the proposal due date. The City must be promptly notified of any changes in key personnel prior to award. *Response required

5.5 References*
List a minimum of three (3) references for whom comparable services were provided to in the last five (5) years. Include the name of the firm, name of the contact, telephone number of the contact, email address of contact (if available), brief description of the services provided and your firm’s role, and the start and completion date. *Response required

5.6 Project Work Plan*
Describe your understanding of the project and approach. Include deliverables, milestones, assumptions, and identify potential risks that could delay the project. List any resources you expect the City to provide.
*Response required

5.7 Cost Proposal*
Provide a proposed total fee outlining the proposal and identify the hourly fee schedule for all personnel to be involved in the project. The hourly rates should include fringe benefits, indirect costs and profit. The Consultant should also indicate what percentage of the scope of work is expected to be completed by each individual or pay classification Item 1
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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
included in fee proposal. Additionally, if applicable, a schedule of reimbursable expenses should be included.
*Response required

5.8 Other Required Responses

5.8.1 Business License Requirements
WHO NEEDS A BUSINESS LICENSE?

1. Is this vendor physically located in the City of Santa Monica? Yes (Vendor must have a City of Santa Monica business license - contact the Business License unit for the appropriate forms. Skip question 2 & continue to “ADDITIONAL REQUIREMENTS” section below)
No (Continue to the next question)

2. Does this vendor physically come into the City of Santa Monica to conduct business and/or make deliveries?
Yes(Vendor must have a City of Santa Monica Out-of City Business License. contact the Business License unit for the appropriate forms. Continue to “ADDITIONAL REQUIREMENTS” section below)
No(STOP, no license needed)
ADDITIONAL REQUIREMENTS:

If this vendor is located in or comes into the City of Santa Monica to conduct business, in addition to having a CITY OF SANTA MONICA BUSINESS LICENSE, they will be required to have insurance (see agreement for descriptions).

The business license documentation is only required from the successful Proposer.

5.8.2 Notice Regarding Disclosure of Contents of Documents* All responses to this Request for Proposal (RFP) accepted by the City of Santa Monica (City) shall become the exclusive property of the City. All proposals accepted by the City shall become a matter of public record and shall be regarded as public, with the exception of those elements of each proposal which are defined by the contractor as business or trade secrets and plainly marked as "Trade Secret", "Confidential" or "Proprietary". Each element of a proposal which a contractor desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e. regarding entire pages, documents or other non-specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is required or permitted under the California Public Records Act, or otherwise by law, the Item 1
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Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
City shall not in any way be liable or responsible for the disclosure of any such records or part thereof.
☐ Please confirm
*Response required

5.8.3 Oaks Initiative*

CITY OF SANTA MONICA OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING

DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY

OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.

This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica.

All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period.

In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. • OAKS_INITIATIVE_FORM.pdf
• OAKS_INITIATIVE_FORM-Exampl...
*Response required
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Packet Pg. 225 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

5.8.4 Living Wage Ordinance Certification*

CITY OF SANTA MONICA LIVING WAGE ORDINANCE
Certification for Providers of Services to the City of Santa Monica (Fiscal Year 22/23 – July 1, 2022 through June 30, 2023)

TO BE COMPLETED BY ALL CONTRACTORS PROVIDING SERVICES TO THE CITY OF SANTA MONICA IN EXCESS OF $54,200
The City of Santa Monica Municipal Code Chapter 4.65, Living Wage Ordinance (LWO), establishes a Minimum Wage of $18.17 per hour for certain employees of contractors providing services to the City where services exceed $54,200 or more and requires that contractors also provide the same health care and other benefits to employees’ same sex spouses and domestic partners as are provided to other employees’ spouses.

An employee covered by the LWO is any person who does not actually work as a manager, supervisor, or confidential employee, and who is not required to possess an occupational license.

The Living Wage Ordinance applies the services sought pursuant to this bid and bidders are required to prepare and return the Living Wage Certification Form. If the bidder is selected, the bidder must maintain payroll records that include, at minimum, the full name of each employee providing services under the contract, job classification and rate of pay. Bids that fail to include Certification Forms may be considered nonresponsive and excluded from further consideration.

Please prepare the following certification if you are a contractor engaging in a contract for services with the City of Santa Monica in excess of $54,200.

Your signature on this certification grants the City permission to review any and all payroll books and records and any company documents pertaining to the benefits offered to employees to assure your compliance with the LWO during the term of the contract.

Please direct any questions to:

City of Santa Monica Finance Department
Attention: Living Wage Compliance Section
1685 Main Street, Mail Stop 09
Santa Monica, CA 90401
You can also contact staff regarding living wage ordinance questions by e-mail at [email protected] or by phone 310-458-8281.
• FY22-23_Living_Wage_Certifi...
*Response required

5.8.5 Certificate of Compliance*
Please upload your completed Certificate of Compliance document here. • Certification_of_Compliance...

Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 226 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
*Response required

5.8.6 Non-Discrimination Policy, Debarment Certification & NonCollusion Declaration* Please download the below documents, complete, and upload. • Proposal_Forms_(10).pdf
*Response required

5.8.7 Prevailing Wage Requirement*
• Prevailing_Wage.pdf
*Response required
6 EVALUATION CRITERIA
No. Evaluation Criteria Scoring Method Weight (Points)

1. Development and Operational
Experience
The team must possess strong
qualifications and experience in
the successful development and
operation of affordable housing of
comparable complexity and scale,
including leveraging diverse
funding sources, and
management of affordable and/or
permanent supportive housing
and resident services.

Points Based 30
(30% of Total)

2. Financing Analysis and
Capacity
The proposal must demonstrate
an ability to construct and operate
an affordable housing
development that minimizes the
City’s Housing Trust Fund
contribution, leverages diverse
resources, and will be financially
feasible and sustainable for at
least 55 years.

Points Based 25
(25% of Total)
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1.A.a
Packet Pg. 227 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

3. Design Experience
The team must demonstrate
design experience with
successful, completed projects of
comparable complexity, scale,
and nature.

Points Based 20
(20% of Total)

4. Overall Development Concept
The proposal must demonstrate a
thoughtful and feasible response
to the affordable housing,
resident services, overall design,
and feasibility of replacing public
parking.

Points Based 15
(15% of Total)
Item 1
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1.A.a
Packet Pg. 228 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

5. Community Involvement Plan
The proposal must include a plan
for engaging residents,
neighborhood organizations,
target populations (including
potential future residents of the
proposed development), and
other interested stakeholders and
individuals in providing feedback
on the project. The plan must
describe how the development
team will address community
feedback on the development.

The community involvement plan
must detail an approach to
reaching stakeholders who have
barriers to engaging with
traditional outreach methods,
including but not limited to
language, online access, and
disability. At a minimum, the plan
must include at least one (1)
community workshop open to the
public prior to finalizing design
drawings for submittal to the
Community Development
Department. The workshop must
be noticed to residents and
businesses within 500 feet of
each of the three sites, as well as
widely publicized in the
community.

Points Based 10
(10% of Total)
7 AWARD PROCESS

7.1 Selection
The City of Santa Monica, through either the City Council or the City Manager (or his designee) has the sole authority to select the consulting firm and reserves the right to reject any and all proposals. The City reserves the right to approve or reject all subconsultants and engineers proposed to be retained by the prime consultant. Upon signing of the agreement, no change in proposed personnel or sub-consultants can be made without the City’s review and written authorization.

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February 25, 2025

1.A.a
Packet Pg. 229 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
By submitting a response to this RFP, prospective consultants waive the right to protest after award or seek any legal remedies whatsoever regarding any aspect of this RFP.

The City reserves the right to select any number of finalists. In addition, the City reserves the right to issue written notice to all prospective consultants of any changes in the RFP terms or proposal submission schedule, should the City determine in its sole and absolute discretion that such changes are necessary.

The City reserves the right to request additional information from any proposing consultant and to reject any and all proposals. All original work products, including computer files, shall remain the property of the City.

The City reserves the right to retain an expert to evaluate the proposing consultant’s work or qualifications at all stages in the selection process. Additionally, any contract entered into will be subject to termination at any stage if in the judgment of the City, such termination is in the best interest of the City. In the event such decision is made, appropriate written notice would be given before any termination and the consultant would be compensated on a pro-rata basis for work performed.

The responsible proposer whose proposal is the most advantageous to the City, taking to consideration all the evaluation factors will be recommended for the contract award.

Notwithstanding the Evaluation Team’s selection, the City reserves the right to award this RFP and the resultant Contract in any manner it deems to be in the best interest of the City and make the selection based on its sole discretion. The City is the sole and exclusive judge of quality and compliance with proposal specifications in any of the matters pertaining to this RFP.

7.2 Contract Award and Execution
Selection of a proposer with whom the City enters into contract negotiations with, or a recommendation of an award by the Evaluation Committee or any other party, does not constitute an award of Contract. Once the City formally awards the contract, the successful consultant will be notified to enter into an agreement. If the selected consultant does not enter into the agreement, the City will begin negotiations with the second highest ranking proposing consultant.

Please review all contract forms prior to submitting a proposal. The City of Santa Monica intends to use these forms as the baseline agreements with the successful consultant. The City will not entertain proposals to make material changes to the contract form once the project has been awarded. If you wish to request changes to the contracting forms, you must do so during the proposal process. In addition, the City requires compliance with several other policies and ordinances, proposing consultants will need to complete these Exhibits and submit with their Proposal.

The RFP document and the successful proposal response, as amended by agreement between the City of Santa Monica and the successful consultant, will become part of the contract documents. Additionally, the City of Santa Monica may verify the successful Item 1
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1.A.a
Packet Pg. 230 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
consultant’s representations that appear in the proposal. Failure of the successful consultant to perform as represented may result in elimination of the successful consultant from further negotiation or in contract cancellation or termination.

No oral explanation or instruction of any kind or nature whatsoever given before the award of a contract to a consultant shall be binding. The City of Santa Monica shall not be bound, or in any way obligated, until the City has awarded the contract and all documents have been executed. The proposing consultant may not incur any chargeable costs prior to final contract execution.
8 TERMS & CONDITIONS

8.1 Best Qualified Person Or Firm
The award, if any, will be made to the best qualified person or firm(s). In evaluating whether a proposer(s) is (are) the best qualified person or firm(s) pursuant to the Santa Monica Municipal Code, City staff may utilize some or all of the following criteria:

A. The training, credentials and experience of the person or firm; B. The demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or provide the services;
C. The capacity of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; D. The sufficiency of the person’s or firm’s financial and other resources; E. The character, integrity, reputation and judgment of the person or firm; F. The ability of the person or firm to provide such future service as may be needed; G. The price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive; and
H. Any other factor which will further the intent set forth in Section 608 of the City Charter.

The City shall have absolute discretion in determining the applicability and weight or relative weight of some or all of the criteria listed above and is not required to select the lowest monetary proposer.

8.2 Receiving Time / Late Proposals
It is the responsibility of proposer to see that their proposal is submitted with sufficient time to be received by the City prior to the proposal closing time. The receiving time in the City Office will be the governing time for acceptability of proposals.

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1.A.a
Packet Pg. 231 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
Late proposals are not accepted.

8.3 Acceptance of Conditions Governing this RFP
Submission of a proposal constitutes acceptance of the Evaluation Factors contained in this RFP.

8.4 Incurring Cost
Any cost incurred by the proposer in preparation, transmittal, presentation of any proposal or material submitted in response to this RFP shall be borne solely by the proposer.

8.5 Prime Consultant Responsibility
Any agreement that may result from the RFP shall specify that the prime consultant is solely responsible for fulfillment of the agreement with the City. The City will make agreement payments only to the prime consultant.

8.6 Sub-consultants
Use of sub-consultants must be clearly explained in the proposal, and major subconsultants must be identified by name. Prime consultants shall be wholly responsible for the entire performance whether or not sub-consultants are used.

8.7 Amended Proposals
A proposer may submit an amended proposal before the deadline for receipt of proposals. Such amended proposals must be complete replacements for a previously submitted proposal and must be clearly identified as such in the transmittal letter. City personnel will not merge, collate, or assemble proposal materials.

8.8 Proposer’s Rights to Withdraw Proposal
Proposers will be allowed to withdraw their proposals at any time prior to the deadline for receipt of proposals. The proposer must submit a written withdrawal request signed by the proposer’s duly authorized representative addressed to the City Contact.

8.9 Proposal Offer Firm
Responses to this RFP, including proposal prices, will be considered firm for ninety (90) days after the due date for receipt of proposals or sixty (60) days after receipt of a best and final offer, if one is requested.

Item 1
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1.A.a
Packet Pg. 232 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

8.10 Best and Final Offer
The City reserves the right to request Best and Final Offers from any or all proposers.

This will be the only opportunity to amend or modify proposals based on feedback from the City. Information from competing proposals will not be disclosed to other proposers prior to submission of a Best and Final Offer.

8.11 Living Wage Requirement
Any agreement issued as a result of this Request for Proposal may be subject to the City’s Living Wage Ordinance, Santa Monica Municipal Code Chapter 4.65 (LWO), and its implementing regulations.

8.12 Disclosure of Proposal Contents
All proposals are subject to the provisions of the California Public Records Act, California Government Code section 6250 et seq., and any information submitted with a response is a public record subject to disclosure, unless a specific exemption applies.

8.13 Notice Regarding Disclosure of Contents of Documents All responses to this Request for Proposal (RFP) accepted by the City of Santa Monica (City) shall become the exclusive property of the City. All proposals accepted by the City shall become a matter of public record and shall be regarded as public, with the exception of those elements of each proposal which are defined by the contractor as business or trade secrets and plainly marked as "Trade Secret", "Confidential" or "Proprietary". Each element of a proposal which a contractor desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e. regarding entire pages, documents or other non-specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is required or permitted under the California Public Records Act, or otherwise by law, the City shall not in any way be liable or responsible for the disclosure of any such records or part thereof.

8.14 No Obligation
This RFP in no manner obligates the City to the eventual rental, lease, purchase, etc., of any goods or services offered until a valid written agreement is executed by the City and the selected proposer.

8.15 Termination
This RFP may be canceled at any time and any and all proposals may be rejected in whole or in part when the City determines such action to be in the best interest of the City of Santa Monica.

Item 1
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1.A.a
Packet Pg. 233 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals

8.16 Sufficient Appropriation
Any agreement awarded for multiple years as a result of this RFP may be terminated if sufficient appropriations or authorizations do not exist. Such termination will be effected by sending written notice to the selected proposer. The City’s decision as to whether sufficient appropriations and authorizations are available will be accepted by the selected proposer as final.

8.17 Errors and Restrictive Specifications
If a proposer discovers any ambiguity, conflict, discrepancy, omission, or other error in the RFP, the proposer should immediately notify the City Contact designated in Section I, B. Without disclosing the source of the request, the City may issue a written addendum to clarify the ambiguity, or to correct the problem, omission, or other error.

If prior to the submission date, a proposer knows of or should have known of an error in the RFP but fails to notify the City Contact of the error, the proposer shall submit their proposal at his, her or its own risk, and, if awarded an agreement, shall not be entitled to additional compensation or time by reason of error or its later correction.

8.18 Legal Review
The City requires that all proposers agree to be bound by the General Requirements contained in this RFP.

8.19 Governing Law
This RFP, and any agreement entered into pursuant to this RFP, are governed by the laws of the State of California.

8.20 Oral Changes and Basis for Proposal
Proposers may not rely upon oral explanations. All changes and addenda will be issued in writing. Only information supplied by the City in writing through the City’s Contact, or in this RFP should be used as the basis for the preparation of proposals.

8.21 Agreement Terms and Conditions
The agreement between the City and the selected proposer(s) will follow the format specified by the City and contain the terms and conditions set forth in Exhibit A, Professional Services Agreement. However, the City reserves the right to negotiate with a successful proposer the final provisions or provisions in addition to those contained in this RFP. The contents of this RFP, as revised and/or supplemented, and the successful proposal will be incorporated into and become part of the agreement.

Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 234 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
Should a proposer object to any of the City’s terms and conditions, as contained in this Section or in Exhibit A, that proposer must propose specific alternative language in his, her, or its proposal. Proposer must provide a brief discussion of the purpose and impact, if any, of each proposed changed followed by the specific proposed alternate wording. The City may or may not accept the alternative language. General references to the proposer’s terms and conditions or attempts at complete substitutions are not acceptable to the City and may result in disqualification of the proposer.

8.22 Proposer’s Terms and Conditions
Proposers must submit with the proposal a complete set of any additional terms and conditions that they expect to have included in an agreement negotiated with the City.

8.23 Proposer Qualifications
The City may make such investigations as necessary to determine the ability of the proposer to adhere to the requirements specified within this RFP.

8.24 Right to Waive Minor Irregularities
The City reserves the right to waive minor irregularities and the right to waive mandatory requirements, provided that all of the otherwise responsive proposals fail to meet the same mandatory requirements and/or doing so does not otherwise materially affect the procurement. This right is at the sole discretion of the City.

8.25 Change in Agreement or Representatives
The City reserves the right to require a change in the selected proposer or representatives if the assigned representatives are not, in the opinion of the City, meeting its needs adequately.

8.26 City Rights
The City reserves the right to award the proposal to separate proposers on any of the services as set forth in the proposer’s proposal. It is further understood that if the proposer to whom any recommended award is made fails to enter into an agreement with the City, award may be made to the next best qualified person or firm, who shall be bound to perform as if she, he or it received the award in the first instance.

8.27 Right to Publish
Throughout the duration of this procurement process and agreement term, potential proposers, and proposers, must secure from the City written approval prior to the release of any information that pertains to the potential work or activities covered by this Item 1
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Item 1
February 25, 2025

1.A.a
Packet Pg. 235 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
procurement or the subsequent agreement. Failure to adhere to this requirement may result in disqualification of the proposer or termination of the agreement.

8.28 Ownership of Proposals
All documents submitted in response to the RFP shall be become the property of the City of Santa Monica and are subject to the provisions of the California Public Records Act, as described in Section II. A. 11. herein.

8.29 Agreement Award
Proposal will be evaluated by a committee comprised of City staff and may include outside consultants (the “Evaluation Committee”). The Evaluation Committee will make an award recommendation to City staff. City Council may give approval of the agreement and/or direct staff to negotiate the final terms and execute the agreement.

This agreement shall be awarded to the proposer or proposers whose proposal is best qualified, taking into consideration the evaluation factors set forth in the RFP. The most qualified proposal may or may not have received the most points or be the lowest cost proposal. Proposers will be notified when the award is being made or an award recommendation goes to the City Council for approval.

8.30 Protest Deadline
All parties wishing to file a protest shall comply with the procedures set forth in Santa Monica Municipal Code section 2.24.260 found here. Proposer may file a written protest with the Director of Finance no more than seven calendar days following the posting of award recommendation on the City’s online vendor portal website.

Protests received after the deadline will not be accepted.

8.31 Records and Audits
The Consultant shall maintain such detailed records as may be necessary to demonstrate its performance of the duties required by this Agreement, including the date, time and nature of services rendered. These records shall be maintained for a period of three years from the date of the final payment under this Agreement and shall be subject to inspection by City. The City shall have the right to audit any billings or examine any records maintained pursuant to this Agreement both before and after payment. Payment under this Agreement shall not foreclose the right of City to recover excessive and/or illegal payments.

8.32 Enforcement of Agreement/Waiver
A party's failure to require strict performance of any provision of this Agreement shall not waive or diminish that party's right thereafter to demand strict compliance with that or any other provision. No waiver by a party of any of its rights under this Agreement Item 1
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Item 1
February 25, 2025

1.A.a
Packet Pg. 236 Attachment: Written Comments (6933 : Written Comments) City of Santa Monica
Housing Division
Request for Proposals
1217 Euclid Street, 1211-1217 Fourteenth Street, 1146 Sixteenth Street Affordable Housing Development Request for Proposals
shall be effective unless expressed in writing and signed by the party alleged to have granted the waiver. A waiver by a party of any of its rights shall not be effective to waive any other rights.

Item 1
February 25, 2025
Item 1
February 25, 2025

1.A.a
Packet Pg. 237 Attachment: Written Comments (6933 : Written Comments) City Council
Report
City Council Meeting: February 25, 2025
Agenda Item: 3.A
1 of 1
To: Mayor and City Council
From: Nikima Newsome, City Clerk, Special Agenda Items
Subject: Proclamation: Women's History Month
Prepared By: Kennisha Williams, Customer Services Assistant Approved Forwarded to Council

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Packet Pg. 238
City Council
Report
City Council Meeting: February 25, 2025
Agenda Item: 3.B
1 of 1
To: Mayor and City Council
From: Nikima Newsome, City Clerk, Special Agenda Items
Subject: Proclamation: Kidney Disease Awareness Month
Prepared By: Kennisha Williams, Customer Services Assistant Approved Forwarded to Council

3.B
Packet Pg. 239
City Council
Report
City Council Meeting: February 25, 2025
Agenda Item: 4.A
1 of 6
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery & Recycling
Subject: Receive and File Emergency Procurement and Approval Agreement with Los Angeles County Sanitation Districts for Emergency Solid Waste Disposal Services
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 and 15308 of the California Environmental Quality Act (CEQA) Guidelines;

Summary
On December 31, 2024, Chiquita Canyon, LLC, the City’s contracted landfill, gave a one-day notice that the facility would cease active waste disposal operations effective January 1, 2025 (Attachment A). The abrupt closure of the Chiquita Canyon Landfill created an urgent, unforeseen event that threatens the general public health, safety, and welfare (SMMC Section 2.24.220(d)). As a result, the Public Works Department’s

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Resource Recovery and Recycling (RRR) Division relied on emergency procurement procedures to utilize the services of the Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility (LACSD) to provide interim landfill services until a contract can be executed. Pursuant to Santa Monica Municipal Code Sections

2.24.250(g), staff is submitting, as a receive and file, this report of the Purchasing Manager’s authority to shorten or waive all required notice periods and competitive solicitation procedures for this purchase, issued due to this emergency in fact, as long as within thirty days after the purchase or contract is made, the City Manager submits in writing to the City Council a full explanation of the emergency circumstances under which the purchase or contract was made. Although the thirty-day deadline has lapsed, it is important to note that the deadline coincided with a separate declared emergency (Regional Fires) that sequestered most of the time and resources across the city organization, and the City is demonstrating a good faith effort to comply with the statute under difficult circumstances.

Discussion
The City generates approximately 63,500 tons (127 million pounds) of landfill trash annually that was previously sent to the Chiquita Canyon landfill facility in Castaic, California, for over 15 years (Attachment B). Due to operational, seasonal, and environmental issues at Chiquita Canyon that periodically limited or delayed the City’s access to the facility, staff identified four viable backup facilities within the region in a report to Council on May 27, 2024 (Attachment C). These facilities were only meant to be utilized on an as-needed basis, from a day to a few days, when access to Chiquita was occasionally limited. However, the abrupt, permanent closure of Chiquita Canyon created an unanticipated public health and safety emergency. Therefore, it was necessary to immediately transition to one of the four viable backup facilities, Los Angeles County Sanitation District’s – Puente Hills Material Recycling Facility (LACSD), as the City’s primary contracted landfill beginning January 1, 2025.

Landfill facilities are capped at a mandated level, and once a facility reaches its capacity for the day, it is precluded from accepting any additional solid waste. As one of the largest landfills in the region, Chiquita Canyon had many customers, all of whom are

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now contending for an allotment of the remaining regional landfill capacity. In addition, the recent regional fires require a massive cleanup effort that will place additional stressors on the solid waste disposal market in the region. Thus, it is imperative to secure a long-term solid waste disposal solution for the City by entering into an emergency landfill services contract with LACSD.

Chiquita Canyon’s rate was $38 per ton. Staff contacted all four of the viable backup facilities, and all provided pricing came in substantially higher than Chiquita Canyon’s price. LACSD offered a flat rate of $90 per ton with only CPI increases for the next five years. Staff recommends LACSD as the most prudent option due to its proximity, pricing, and stability as a government-run facility in the heavily-regulated solid waste management industry. Staff does not anticipate an immediate impact to solid waste rates at this time but is actively analyzing the impact to the RRR Fund in future years, as this significant increase in landfill disposal services expenses was unexpected and therefore, not accounted for in the previous solid waste rate study.

Vendor Selection
Exception to Competitive Bidding
Staff requested and received procurement approval from the Procurement Manager for the Los Angeles County Sanitation District’s – Puente Hills Material Recycling Facility (LACSD) to provide interim emergency landfill disposal services as an exception to competitive bidding per Municipal Code 2.24.250 (g). The abrupt closure of the City’s contracted landfill facility required contractor assistance to immediately take on the acceptance of the City’s landfill trash and mitigate a potential health and safety crisis. In a previous analysis of regional landfill facilities, staff had recommended LACSD as the primary backup landfill facility based on its stability as a government-run agency, proximity, and pricing. Not having this option would significantly interfere with the City’s refuse collection operation, affecting both public health and the Council’s Clean and Safe Santa Monica priority. The City has used this facility in the past with positive results. It is also one the four closest landfills available for use by the City, which lowers hauling costs. Additionally, they have the capacity to

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accept the proposed volumes of landfill trash from the City. g. Due to circumstances outside of the control of the City, would result in a substantial economic loss, substantially compromise a legal position, or substantially interfere with a required City operation.

Environmental Review
The emergency procurement for landfill trash disposal service is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15308. Section 15301 of the CEQA State Guidelines provides Class 1 (Existing Facilities) exemption for projects that consist of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. The emergency procurement for landfill trash disposal would not result in any modifications to existing landfills or disposal facilities.

Solid waste disposal and diversion services currently exist, and the emergency procurement would not expand or materially change existing landfill facilities or waste disposal operations. The selected vendor is required to comply with existing solid waste regulations and provide similar services to those currently being required and provided.

Therefore, the project is categorically exempt as set forth in Section 15301 of the CEQA State Guidelines.

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• Assembly Bill 341 (2011) requires both businesses that generate four cubic yards or more of solid waste and multifamily projects with five units or more to participate in a recycling program;
• Assembly 1826 (2014), requires businesses, including public entities and multifamily projects, to recycle their organic waste. Businesses must develop strategies to reduce and/or arrange for recycling services for the following types of organic waste: food waste, food-solid paper, green waste, landscaping and pruning waste, and non-hazardous wood waste;
• Senate Bill 1383 (2016) established methane emission reduction targets for California, requiring a 50 percent reduction of organics sent to the landfill by 2020, and a 75 percent reduction by 2025; and
• City’s Zero Waste Plan (Updated 2019) provides an environmental policy framework to guide the City on its path to achieving zero waste.

The emergency procurement requires the landfill disposal vendor to comply with both State and local regulations for disposing of waste and ensures the protection of the environment since the contract contains compliance requirements with State mandates.

Therefore, the project is categorically exempt as set forth in Section 15308 of the CEQA State Guidelines.

Past Council Actions
Meeting Date Description
11/15/2022
(Attachment B)
Original bid and award of agreement with Chiquita Canyon, LLC for landfill trash disposal services
05/14/2024
(Attachment C)
Award of agreements for backup landfill trash disposal
services.

Financial Impacts and Budget Actions
Staff seeks acknowledgement that available funding from the Resource Recovery and Recycling Fund was approved for an interim emergency procurement with Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility for emergency interim landfill services, and also seeks authority to approve funding from the Resource Recovery and Recycling Fund to award a contract with Los Angeles County Sanitation

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Districts – Puente Hills Material Recycling Facility for contracted landfill disposal services.

In FY 2024-25, staff anticipates being able to absorb the cost increase in its current budget. Staff will incorporate the increase as part of the FY 2025-27 Biennial Budget.

Emergency Procurement Request
LACSD – Puente Hills Material Recycling Facility
Method of
Payment
FY 2024-25
Budget Request
Amount
Department
Account #
Future Years
Amount Total Amount
Direct Entry
Invoices $1,800,000 54500002.523010 $0 $1,800,000
Contract $1,800,000 54500002.523010 $36,222,585 $38,022,585 Total $3,600,000 $36,222,585 $39,822,585
Future year funding is contingent on Council budget approval.

Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Chiquita Canyon Landfill Closure Notice
B. Chiquita Canyon, LLC CSA Contract
C. May 14, 2024 Staff Report

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Packet Pg. 246
Attachment: Chiquita Canyon Landfill Closure Notice (6882 : Emergency Contract for Solid Waste Disposal Services)

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Attachment: Chiquita Canyon Landfill Closure Notice (6882 : Emergency Contract for Solid Waste Disposal Services) - 1 -
Agreement No. 11337 (CCS)

CONTRACTUAL SERVICES AGREEMENT
This Contractual Services Agreement (“Agreement”), entered into as of _________________ (“Execution Date”), by and between the CITY OF SANTA MONICA, a municipal corporation (“City”), and CHIQUITA CANYON, INC., dba CHIQUITA CANYON, LLC (“CHIQUITA”), is made with reference to the following:

RECITALS:

A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.

B. CHIQUITA is qualified to do business, and is doing business, in the State of California. CHIQUITA represents it has the background, knowledge, experience, and expertise necessary to provide the services set forth in this Agreement.

C. The City and CHIQUITA desire to enter into an agreement for the CHIQUITA to provide contractual services to the City as set forth herein, upon the terms and conditions set forth below.

NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:

TERMS AND CONDITIONS

1. Term. This Agreement begins on the Execution Date and terminates two (2) years after the Execution Date (“Expiration Date”), unless extended in accordance with Section

1.1 or terminated sooner under the provisions of Section 14.

1.1 Option to Extend. The undersigned parties (individually referenced as “Party” and collectively referenced as “Parties”) shall have the option to mutually extend the term of this Agreement for three (3) additional one-year options upon the same terms and conditions as are set forth in this Agreement. Each Party shall exercise its option no later than sixty (60) days prior to the Expiration Date by giving the other Party a written notice of its intent to exercise the option. Upon mutual agreement to exercise the option, this Agreement shall be renewed on the Expiration Date for one additional year and any extensions thereto, and shall continue in full force and effect on the same terms and conditions as set forth herein, unless otherwise terminated pursuant to this Agreement.

2. CHIQUITA Services. CHIQUITA will perform all of the services (“Services”) described in Exhibit A, Scope of Services. CHIQUITA will complete the Services in accordance with Exhibit B, Budget.

3. City Services. The City agrees to:

3.1 Make available to CHIQUITA any currently existing documents, data or information required for the performance of the Services.

DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232 7/19/2023

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3.2 Designate a representative authorized to act on behalf of City.

3.3 Promptly examine and render findings on all documents submitted for staff review by CHIQUITA.

4. Compensation. The City will compensate CHIQUITA for the Services performed in an amount not to exceed NINE MILLION NINE HUNDRED THIRTEEN THOUSAND FIVE HUNDRED AND SIXTY DOLLARS ($9,913,560), as set forth in Exhibit B.

5. Invoices. CHIQUITA will invoice the City for the Services in accordance with Exhibit B and the City will pay any undisputed amount within 30 days of receipt.

6. Notices. All notices, demands, requests or approvals to be given under this Agreement, must be in writing and will be deemed served when delivered personally, by email, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:

6.1 All notices, demands, requests or approvals to the City:

Resource Recovery & Recycling
City of Santa Monica
2500 Michigan Ave, Building A
Santa Monica, California 90404
Attention: Ryan Kraemer
Re: Agreement No. 11337 (CCS)
with a copy to:

Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, California 90401
Attention: City Attorney
Re: Agreement No. 11337 (CCS)

6.2 All notices, demands, requests or approvals to CHIQUITA:

Chiquita Canyon, LLC
29201 Henry Mayo Dr
Castaic, CA 91384 USA
Attention: Steven Cassulo
[email protected]
Re: Agreement No. 11337 (CCS)

7. Independent Parties. Both parties to this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers of one another.

Neither the City nor its officers or employees will have any control over the conduct DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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of CHIQUITA or any of CHIQUITA’s agents, employees, or subcontractors, except as otherwise provided in this Agreement.

8. Integrated Agreement. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties. Any preliminary negotiations and agreements of any kind or nature are merged into this Agreement. No oral agreement or implied covenant may be held to vary the provisions of this Agreement. This Agreement may be modified only by written agreement signed by City and CHIQUITA, and approved as to form by the City Attorney.

9. Insurance. Prior to commencing work, CHIQUITA must procure, maintain and pay for insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the Services by CHIQUITA or CHIQUITA’s agents, representatives, employees or subconsultants for the duration of this Agreement. CHIQUITA must obtain insurance that, at a minimum, meets the requirements for insurance set forth in Exhibit C, Insurance Requirements and Verifications.

10. Defense and Indemnification.

10.1 CHIQUITA agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, boards and commissions, and employees (collectively, “City”) from and against any and all liability, claims, demands, damages, or costs, including but not limited to attorney’s fees, or payments for injury to any person or property (collectively, “Losses”) caused or claimed to be caused by the act, errors, and/or omissions of CHIQUITA, or CHIQUITA’s employees, agents, officers, and subcontractors. CHIQUITA’s responsibilities under this Section 10.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, which may be in combination with the acts or omissions of CHIQUITA, its employees, agents or officers, or subcontracors; provided, however, that CHIQUITA’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City. Notwithstanding CHIQUITA’s obligation to defend City hereunder, City has the right to conduct its own defense and seek reimbursement for reasonable costs of defense from CHIQUITA, if City chooses to do so.

10.2 Enforcement Costs. CHIQUITA agrees to pay any and all costs the City incurs enforcing the indemnity, defense and hold harmless provisions set forth in Section 10.1.

11. Prohibition Against Transfers.

11.1 CHIQUITA may not assign, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any attempt to do so without the City’s DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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consent will be null and void, and any assignee, hypothecatee or transferee acquires no right or interest by reason of such attempted assignment, hypothecation or transfer.

11.2 The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of CHIQUITA or of any general partner or joint venturer or syndicate member of CHIQUITA, if a partnership or joint venture or syndicate exists, which results in changing the control of CHIQUITA, will be construed as an assignment of this Agreement. Control means 50% or more of the voting power of the corporation.

12. Permits and Licenses. CHIQUITA, at its sole expense, must obtain and maintain during the term of this Agreement all required business and professional permits, licenses and certificates.

13. Waiver. A waiver of any breach of this Agreement may not be deemed a waiver of any subsequent breach of the same or any other term, covenant, or condition of this Agreement.

14. Default and Termination.

14.1 If CHIQUITA fails or refuses to perform any of the provisions of this Agreement, and if the default is not cured within a period of five days after the City’s written notice of default specifying the nature of the default, City may immediately terminate this Agreement by written notice to CHIQUITA.

14.2 The City has the option, at its sole discretion and without cause, of terminating this Agreement by giving ten days’ written notice to CHIQUITA. Upon termination of this Agreement, City will pay CHIQUITA any compensation earned and unpaid up to the effective date of termination.

15. Compliance with Law. CHIQUITA must comply with all laws of the State of California and the United States, and all ordinances, rules and regulations enacted or issued by City.

16. Discrimination. CHIQUITA may not discriminate in the provision of services hereunder because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability.

17. Nuisance. CHIQUITA may not maintain, commit, or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.

18. Records.

18.1 CHIQUITA must maintain complete and accurate records with respect to costs, expenses, receipts and other such information required by the City for any services provided where compensation is on the basis of hourly rates, subcontractor costs, or other direct costs. CHIQUITA must keep the records, DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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together with supporting documents, separate from other documents and records and maintain them for a period of three years after receipt of final payment.

18.2 CHIQUITA must maintain records in sufficient detail to permit an evaluation of the Services and in accordance with generally accepted accounting principles.

CHIQUITA must clearly identify all records and make them readily accessible to the City. At the City’s request, CHIQUITA must provide records in an electronic format and, if necessary, access to any proprietary software to view such electronic records.

18.3 CHIQUITA must allow the City to have free access to CHIQUITA’s books and records and to inspect all work, data, documents, proceedings and activities related to this Agreement. The City has the right to examine or audit CHIQUITA’s records, and CHIQUITA agrees to cooperate with any examination or audit of its records. If a City audit discloses an error of 5% or more in information reported by CHIQUITA, CHIQUITA agrees to pay the cost of the City’s audit computed on the basis of four times the direct payroll of the audit staff completing the audit and audit report.

19. Work Product; Reports.

19.1 Any work product prepared or caused to be prepared by CHIQUITA or any subcontractor for this Agreement will be the exclusive property of City. No work product given to or prepared by CHIQUITA or any subcontractor pursuant to this Agreement may be made available to any individual or organization by CHIQUITA without prior written approval by City.

19.2 At the City’s request, CHIQUITA must furnish reports concerning the status of the Services.

20. Standard of Care. CHIQUITA agrees to provide all Services, including services performed by any subconsultant, in a manner consistent with the level of care and skill ordinarily exercised by members of CHIQUITA’s profession currently practicing in the same locality under similar conditions.

21. Subcontractors.

21.1 If CHIQUITA proposes to have any subcontractor perform any part of the Services, CHIQUITA must submit a request for approval in writing, describing the scope of work to be subcontracted, the name of the proposed subcontractor, and the total price or hourly rates used in preparing an estimated cost for the subconsultant’s services. The City, in its sole discretion, may grant or deny the request.

21.2 CHIQUITA will be responsible for the quality of any subcontractor’s work.

Every subcontract or agreement of any kind entered into between CHIQUITA and any subcontractor (or between any subcontractor and others) must contain DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 252 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) - 6 -
the following provision:

This agreement is consistent with all terms and conditions of the Agreement No. 11337 (CCS) entered into between the City of Santa Monica and CHIQUITA
on^^____________________.

22. Governing Law. The laws of the State of California, without regard to any choice of law provisions, will govern this Agreement.

23. Venue and Jurisdiction. The City and CHIQUITA agree that the Services will take place in Los Angeles County. Any litigation arising out of this Agreement may only be brought in either the United States District Court, Central District of California, or the Superior Court of California, County of Los Angeles, West District, as appropriate. The parties agree that venue exists in either court, and each party expressly waives any right to transfer to another venue. The parties further agree that either court will have personal jurisdiction over the parties to this Agreement.

24. Survival of Provisions and Obligations. Any provision of this Agreement, which by its nature must be exercised after termination of this Agreement, will survive termination and remain effective for a reasonable time. Any obligation that accrued prior to termination of this Agreement will survive termination of this Agreement.

25. Execution in Counterparts. This Agreement may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single modification.

Any signature to this Agreement transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).

26. Exhibits. The following exhibits are incorporated by reference into this Agreement as though fully set forth herein.

Exhibit A Scope of Services
Exhibit B Budget
Exhibit C Insurance Requirements
Exhibit D RFP No. 313
In witness whereof, the parties have caused this Agreement to be executed the day and year first above written.

ATTEST:
______________________________

CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232 7/19/2023

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DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________

LANE DILG
City Attorney

RICK COLE
City Manager
CHIQUITA CANYON, LLC Corporation
#VENDOR
By: ________________________________
DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

DOUGLAS SLOAN
City Attorney
7/18/2023
7/19/2023
Chiquita Canyon LLC
District Manager
Steve Cassulo
City Manager
7/19/2023
Denise Anderson-Warren David White
City Clerk
7/20/2023

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Packet Pg. 254 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) Exhibit A
Scope of Services
CHIQUITA CANYON, LLC shall provide landfill processing services for the City of Santa Monica in accordance with the rate schedule submitted in RFP No. 313 and in Exhibit B, Budget, including the following services:

1. Receive, accept, process, and/or dispose of the City of Santa Monica's landfill materials collected from the City's solid waste collection customers and delivered to the Chiquita Canyon landfill by the City's contracted transfer hauler six days a week, Monday through Saturday. Operational hours for delivery shall be:
a. Monday - Friday 4 am to 5 pm, Saturday 5 am to 2 pm through Dec.31 2024.
b. Monday - Friday 5 am to 5 pm, Saturday 5 am to 2 pm after Dec.31 2024.

2. Provide accurate, monthly tonnage reports to the City for all materials received from the City. All monthly invoices and reports must be delivered electronically via email to [email protected]

3. Provide well-maintained facilities, equipment, and adequate staffing.

4. Comply with all applicable Federal, State, County, and local laws.

DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 255 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) Exhibit B
Budget

1. Not-to-exceed amount. The City will compensate CHIQUITA for the Services performed in this Agreement for an amount not to exceed NINE MILLION NINE

HUNDRED THIRTEEN THOUSAND FIVE HUNDRED AND SIXTY
DOLLARS ($9,913,560) over the initial term of two years plus three one-year renewal options for a total of five years.

2. Tipping Fee. The all-inclusive, per-ton cost for each ton delivered (“Tipping Fee”) shall be:

Contract Year Initial Rate Annual Increase Adjusted Rate 1 $37.00 0% $37.00
2 -- $1.00 $38.00
3 -- $1.00 $39.00
4 -- $1.00 $40.00
5 -- $1.00 $41.00
DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 256 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) Exhibit C
Insurance Requirements
Contractual Services Agreement Insurance Requirements
Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.

Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (Insurance Services Office Form CG 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and Code 9 (non-owned), with limits of no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: Workers’ Compensation insurance as required by the State of California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease (see footnote #1).

If the Contractor maintains broader coverage or higher limits than the minimums shown above, the City of Santa Monica requires and shall be entitled to the broader coverage or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Monica.

Other Insurance Provisions

1. The insurance policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status: The City of Santa Monica, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Contractor including materials, parts, or equipment furnished in connection with such work or operations. CGL coverage can be provided in the DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 257 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) form of an endorsement to the Contractor’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37). b. Primary Coverage: For any claims related to this Agreement, the Contractor’s insurance shall be primary coverage as least as broad as Insurance Services Office Form CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it. c. Notice of Cancellation: Each insurance policy required herein shall state that coverage shall not be cancelled except after notice has been given to the City of Santa Monica.
d. Waiver of Subrogation: Contractor hereby grants to the City of Santa Monica a waiver of any right of subrogation which any insurer of said Contractor may acquire against the City of Santa Monica by virtue of payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Santa Monica has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Santa Monica for all work performed by the Contractor, its employees, agents and subcontractors.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.

Verification of Coverage
Contractor shall furnish the City of Santa Monica with original certificates and amendatory endorsements (or copies of the applicable policy language effecting coverage provided by this clause). All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. However, failure to obtain required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them.

Failure to Maintain Insurance Coverage
If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. The City of Santa Monica, at its sole option, may terminate this Agreement and obtain damages DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 258 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) from the Contractor resulting from said breach.

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. All exceptions must be approved in writing by the Risk Manager.

Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Contractor does not have employees. The Contractor must, however, execute the City’s Workers’ Compensation Coverage Exemption Declaration Form.

DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 259 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) Exhibit D
RFP No. 313
[Behind this page]
DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 260 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services)

CITY OF SANTA MONICA

LANDFILL SERVICES REQUEST FOR PROPOSALS

PROPOSAL SUBMISSION FORM

1. Legal Name of Company
Chiquita Canyon LLC.

2. Name and Address of Receiving Facility and Subcontractor 29201 Henry Mayo Dr. Castaic, CA. 91384

3. Days and Hours of Operation
Monday - Friday 4am to 5pm, Saturday 4am to 2 pm now until Dec.31 2024.

4. Name, Job Title, and Email Address of Contact Person for This Proposal Steven Cassulo, District Manager, [email protected]

5. EXECUTIVE SUMMARY: Summarize your proposal. Explain how your company and facility's personnel, infrastructure, operation, equipment, technology, and cost differentiate your proposal from your competitors; why your proposal is best suited for Santa Monica; and any other pertinent information you would like the Evaluation Committee to know about this proposal.

Chiquita Canyon Landfill (CCL) will provide a safe, reliable, consistent, and compliant facility for the city of Santa Monica’s solid waste disposal needs 6 days a week. CCL is a Class 3 nonhazardous waste landfill that operates under subtitle D regulations and is permitted by CalRecycle.

CCL will provide monthly tonnage reports to the City for all materials received from the City. The major project milestones include the completion of the new entrance and scale house on Wolcott way in 2024 and the final closure of the site in 2047. Project assumes all estimated solid waste from the city of Santa Monica with room for slight growth will be disposed of at CCL. The risks that could delay the project are facility shut downs due to permit noncompliance or events of force majeure. The city of Santa Monica is responsible for delivering the waste to the facility where it will be handled by CCL for disposal.

6. EXPERIENCE AND TECHNICAL COMPETENCE: Indicate the facility name(s) and all/any subcontractor(s) that will be handling the City of Santa Monica's delivered materials. Explain the proposed operational processes, equipment, DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 261 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) and/or technology. Explain your facility's history, experience, and track record in landfill services.

Chiquita Canyon Landfill (CCL) We will be the only company handling your waste. opened around 1970. The landfill is owned and operated by Chiquita Canyon LLC, which is a wholly-owned subsidiary of Waste Connections, Inc.

Waste Connections, Inc. the thrid largest Waste Company oprating in the United States.

CCL proposed a new lateral and vertical expansion, relocated entrance, and increased daily and weekly disposal tonnage. An EIR was prepared for the proposed project and the final EIR (FEIR) was certified by the Los Angeles County Board of Supervisors on July 25, 2017. The Los Angeles County Board of Supervisors also issued CUP 2004-00042-(5) on July 28, 2017. CCL is operated in accordance with SWFP No. 19-AA-052. The current SWFP was issued September 30, 1998 and reviewed October 18, 2016 and again in January 2022. The landfill is also operated in accordance with WDRs contained in Order No. 98-086, adopted on November 2, 1998 by the California Regional Water Quality Control Board, Los Angeles Region (RWQCB). Waste is delivered to CCL in transfer trucks, collection trucks, and various other vehicles by commercial haulers and the general public.

Some of the transfer trucks are designed to be unloaded using tippers, which lift and tilt the transfer trailers to unload them. District Manager Steven Cassulo is a Certified Manager of Landfill Operations (MOLO), a Qualified SWPPP Practitioner (QSP), and has been a Landfill Manager for over 29 years. The City of Santa Monica had been send us trash for more then 10 years. We use stander landfill equipment, dozers and compactors.

7. COST OF SERVICES:

Proposed cost per ton delivered. Please indicate all exceptions and extra charges.
$ 37 PER TON
Proposed cost per year based on the Fiscal Years 2018-21 three-year landfill average annual tonnage of 64,114 tons per year. Please show steps, indicate all exceptions, and all extra charges.
$2,436,332
($37 + $38 + $39) / 3 = $38 X 64,114 = $2,436,332

8. COST OF SERVICES:

Proposed price increase (in %, $, or CPI) for Year 2: $1.00 Proposed price increase (in %, $, or CPI) for Year 3: $1.00 Proposed price increase (in %, $, or CPI) for Year 4: $1.00 Proposed price increase (in %, $, or CPI) for Year 5: $1.00 DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 262 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services)

9. COST OF SERVICES: Indicate hauling distance in miles to your receiving facility from 1908 Frank Street, Santa Monica, CA 90404.
38MILES
(OFFICAL USE: (A) 0-30; (B) 31-39; (C) 40-59; (D) 60-75

10. VALUE ADDED AND BREADTH OF SERVICE: Describe how your company value and operation may align or assist the City with its sustainability goals of "Zero Waste by 2030" (i.e. reducing per capita landfill disposal to 1.1 pounds per person per day) and "Carbon Neutrality by 2050" (e.g. clean fleet, carbon footprint reduction, greenhouse gas emission reduction).

Through the breakdown of waste disposed at the site, Chiquita Canyon Landfill (CCL) generates landfill gas consisting of 50% methane. This methane gas, which is collected on site, is burned in turbines (CAT generators) that produce electricity. This electricity is sent to the grid and used for powering homes and industrial facilities. Currently, not all of the gas is able to be used in the turbines so a portion is flared on site.

In order to increase the use of the excess methane generated at the site and to improve the amount of renewable energy generated at CCL, we are working with Ameresco (the LFG to Energy Plant owner) to permit and install a renewable natural gas (RNG) plant on site. This RNG facility is currently in the permitting process with the County and is expected to break ground in 2023.

11. STABILITY AND REFERENCES: Indicate your facility name(s), permit type(s), and permit number(s).

12. STABILITY AND REFERENCES: List any permit violations and citations. 7 NOV in 2021 for odor, 1 NOV for not reporting an odor NOV within 24 hours

13. STABILITY AND REFERENCES: Provide three references of current or recent contracts for landfill services -- Name of
DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 263 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) Municipality, Annual Tonnage, Name of Contact, and Email Address Mark Blackburn, President of Universal Waste Systems Inc. (909) 859-5547 350,000 tons per year
[email protected]
Dennis Verner, GM Burrtec Waste (661) 476-4780 City of
Santa Clraita 75,000 tons per year. Greg Loughnane,
President of Athens Services (626) 255-8121 700,000 tons per year, [email protected]

14. OTHER INFORMATION:

Thank you for working with Chiquita for the last 10 years and hope to continue to serve the City for years to come. Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, along with resource recovery primarily through recycling and renewable fuels generation.

The Company serves more than eight million residential, commercial and industrial customers in mostly exclusive and secondary markets across 43 states in the U.S. and six provinces in Canada. - END OF FORM -
DocuSign Envelope ID: 7E9502B6-9902-4938-9BF5-5E47904C7232

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Packet Pg. 264 Attachment: Chiquita Canyon, LLC CSA Contract (6882 : Emergency Contract for Solid Waste Disposal Services) City Council
Report
City Council Meeting: May 14, 2024
Agenda Item: 5.H
1 of 8
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery & Recycling
Subject: Award Contracts to Browning Ferris Industries, Inc., Waste Management of California, and County Sanitation Districts of Los Angeles County for Backup Landfill Facility Services
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15301 and 15308 of the California Environmental Quality Act (CEQA) Guidelines;

2. Authorize the City Manager to negotiate and execute an agreement with Browning Ferris Industries, Inc., dba Sunshine Canyon Landfill to provide backup landfill services for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section

2.24.250 (g) and is for a total amount not to exceed $2,277,521 (including a 20% contingency) for 10 years, with future year funding contingent on Council budget approval;

3. Authorize the City Manager to negotiate and execute an agreement with Waste Management of California – Simi Valley Landfill to provide backup landfill services for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (g) and is for a total amount not to exceed $1,824,264 (including a 20% contingency) for 10 years, with future year funding contingent on Council budget approval; and

4. Authorize the City Manager to negotiate and execute an agreement with Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility to provide backup landfill services for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (g) and is for a total amount not to exceed $1,175,856 (including a 20% contingency) for 1.5 years, with future year funding contingent on Council budget approval.

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Summary
The City annually generates approximately 63,500 tons (127 million pounds) of landfill trash that is sent to landfill facilities in the Southern California region. Due to operational, seasonal, and environmental factors at the City’s current primary landfill, the 639-acre Chiquita Canyon in Castaic, California, has periodically limited or delayed the City’s access to the facility. To continue to meet the Council’s Clean and Safe Santa Monica priority and in the interest of public health, it is necessary for the City to identify backup landfill locations. Staff recommends entering into three contracts with Browning Ferris Industries, Inc., dba Sunshine Canyon Landfill, Waste Management of California – Simi Valley Landfill, and Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility (MRF) as the best contractors to receive landfill trash from the City. As there will not likely be any new landfills established and as the capacity of existing landfills continues to shrink, cities will begin to vie for their use. Therefore, staff recommends a ten-year contract with each vendor.

Discussion
The City’s Resource Recovery and Recycling Division (RRR) provides solid waste management services for residents, businesses, and visitors for various waste streams: construction and demolition (C&D) materials, recyclable (blue bin) materials, organics (green bin) materials, and landfill trash (black bin) materials. Each material type is accepted and handled by different processing facilities. To increase the quantity of materials diverted from landfills, the City Council has adopted several ordinances over the years that mandate the recycling of construction and demolition materials, recyclables, and organics.

The remaining materials that are non-recyclable and not reusable are considered landfill trash, and include items such as styrofoam, plastic utensils, broken dishes, candy wrappers, chip bags, plastic bags. These materials are sent to regional landfill facilities for disposal. There are only a few landfill facilities operating in the local region. These facilities are heavily regulated and once they reach their capacity, they are permanently closed. The density of the region and the State’s regulatory requirements make it difficult for new landfills to open.

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The City has used the Chiquita Canyon landfill facility for 15 years and will continue to use it as the primary landfill. However, due to recent delays and operational issues at the facility, staff recommends having backup options. Staff identified and assessed the following 17 landfill facilities:

Number Landfill Viable?
1 Puente Hills MRF Y
2 Sunshine Canyon Landfill Y
3 Simi Valley Landfill Y
4 Athens Services Y
5 Commerce Waste-to-Energy Facility N
6 Palmdale Landfill & Recycling Center N
7 Lancaster Landfill & Recycling Center N
8 Azusa Land Reclamation N
9 Burbank Landfill No. 3 N
10 Calabasas Landfill N
11 Orange County Waste & Recycling N
12 Pebbly Beach Landfill N
13 Puente Hills Landfill N
14 San Clemente Landfill (Orange County) N
15 Savage Canyon Landfill N
16 Scholl Canyon Landfill N
17 Southeast Resource Recovery Facility N
The three primary reasons for the City’s limited options are:

1. Facility closures: Three facilities
• The Puente Hills Landfill closed on October 31, 2013. • The Commerce Waste-to-Energy Facility closed on June 24, 2018. • The Southeast Resource Recovery Facility (SERRF) closed on January 31, 2024.

2. The establishment of wasteshed areas (service areas): Eight facilities • In 1972, Orange County, California adopted Ordinance No. 2622, making it unlawful for any person to place, deposit or dump or cause to be placed, deposited, or dumped in or upon any County disposal station any solid wastes originating outside of the County, which prohibits use of the Orange County Waste & Recycling and San Clemente Landfill facilities.

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• In 1987, the City of Glendale implemented a defined wasteshed area that limited the cities which could utilize Glendale’s Scholl Canyon Landfill. The purpose was to provide access to those agencies which did not have a landfill within their own jurisdiction.
• On February 13, 1991, the Los Angeles County Board of Supervisors adopted Ordinance No. 91-0003, which established the Calabasas Landfill wasteshed. The Ordinance prohibits the Calabasas landfill from accepting waste, including tires, from outside of the wasteshed area. • Azusa Land Reclamation provides disposal services for communities, businesses and industries serving Los Angeles metro and eastern Los Angeles County.
• Several cities that own a landfill restrict usage to residents and businesses of their city, such as Burbank (Burbank Landfill No. 3), Whittier (Savage Canyon Landfill), and Avalon (Pebbly Beach Landfill).

3. Distance: Two facilities
• Two other landfill facilities in Los Angeles County are in Palmdale and Lancaster, which makes the use of these locations prohibitive due to the hauling distance and cost.

To provide coverage for Santa Monica’s landfill trash disposal needs and continue the uninterrupted transportation of landfill trash out of the City, staff recommends awarding three contracts with Browning Ferris Industries, Inc., dba Sunshine Canyon Landfill, Waste Management of California – Simi Valley Landfill, and Los Angeles County Sanitation Districts – Puente Hills MRF, as these three facilities would be used as alternatives to the current primary facility and contracted for between 1,200 to 5,400 tons of landfill trash per year.

The Sunshine Canyon Landfill and Simi Valley Landfill contracts would be for a period of ten years and the Puente Hills MRF contract for 1.5 years, due to the facility’s anticipated rate restructuring in January 2026, with a not to exceed amount as outlined in the recommended action, and the City paying only for the actual amount of landfill

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trash delivered with no guarantee of additional service. The contract amounts are set at the upper limits of possible expenditures based on historical landfill service.

Staff recommends Puente Hills MRF as the primary backup landfill facility based on its distance and overall cost, followed by Sunshine Canyon Landfill and Simi Valley Landfill. Having a wider range of disposal options is the most prudent path to ensure uninterrupted landfill trash disposal for the City. Athens Services, the fourth viable site listed in the landfill assessment table above, will also be used as a backup under a larger contract that is currently under negotiation.

Vendor Selection
Exception to Competitive Bidding
Staff recommends Browning Ferris Industries, Inc., dba Sunshine Canyon Landfill in Sylmar, Waste Management of California – Simi Valley Landfill, and Los Angeles County Sanitation Districts – Puente Hills MRF in the City of Industry to provide landfill services as an exception to competitive bidding per Muni Code 2.24.250 (g). This purchase meets the City’s exception to competitive bidding criteria because of the limited number of landfill facilities available for City use. To prepare for the unexpected, the Resource Recovery and Recycling Division would need immediate access to an alternate facility if operational, seasonal, or environmental factors force a road closure or otherwise restrict the access to one or more facilities, leaving the City with no place to take its landfill trash. Not having this option would significantly interfere with the City’s refuse collection operation, affecting both public health and the Council’s Clean and Safe Santa Monica priority. The City has used each of these three facilities in the past with positive results. They are also the three closest landfills available for use by the City, which lowers our hauling costs. Additionally, they have the capacity to accept the proposed volumes of landfill trash from the City.

Athens Services will also be used as a backup under a larger contract, and that contract is currently under negotiation.
g. due to circumstances outside of the control of the City, would result in a substantial economic loss, substantially compromise a legal position, or substantially interfere with a required City operation;
Environmental Review

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The award contracts for landfill trash disposal service are categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15308. Section 15301 of the CEQA State Guidelines provides Class 1 (Existing Facilities) exemption for projects that consist of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. The award contracts for trash hauling and disposal would not result in any modifications to existing landfills or disposal facilities. Solid waste disposal and diversion services currently exist, and the proposed award contract would not expand or materially change existing landfill facilities or waste disposal operations. The selected vendors will be required to comply with existing solid waste regulations and terms of the agreement and provide similar services to those currently being required and provided. Therefore, the project is categorically exempt as set forth in Section 15301 of the CEQA State Guidelines.

The project is also exempt pursuant to Section 15308 of the CEQA Guidelines. Section 15308 (Class 8 Actions for Protection of Environment) exempts actions taken by a regulatory agency, as authorized by state and local ordinances, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for the protection of the environment. The award contracts would ensure City compliance with solid waste disposal regulations for the protection of the environment including:
• Integrated Waste Management Act (IWMA) of 1989 requires cities to permit and regulate solid waste handling;
• Assembly Bill 341 (2011) requires both businesses that generate four cubic yards or more of solid waste and multifamily projects with five units or more to participate in a recycling program;
• Assembly 1826 (2014), requires businesses, including public entities and multifamily projects, to recycle their organic waste. Businesses must develop strategies to reduce and/or arrange for recycling services for the

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Packet Pg. 270 Attachment: May 14, 2024 Staff Report (6882 : Emergency Contract for Solid Waste Disposal Services) 7 of 8
following types of organic waste: food waste, food-solid paper, green waste, landscaping and pruning waste, and non-hazardous wood waste; • Senate Bill 1383 (2016) established methane emission reduction targets for California, requiring a 50 percent reduction of organics sent to the landfill by 2020, and a 75 percent reduction by 2025; and • City’s Zero Waste Plan (Updated 2019) provides an environmental policy framework to guide the City on its path to achieving zero waste.

The award contracts require the landfill disposal vendors to comply with both State and local regulations for disposing of waste and ensures the protection of the environment since the contract contains compliance requirements with State mandates. Therefore, the project is categorically exempt as set forth in Section 15308 of the CEQA State Guidelines.

Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the RRR Fund to award contracts with Browning Ferris Industries, Inc., dba Sunshine Canyon Landfill, Waste Management of California – Simi Valley Landfill, and Los Angeles County Sanitation Districts – Puente Hills MRF for backup landfill services.

Contract Request
Vendor
FY 2023-
24 Request
Amount
Future Years
Amount
Department
Account #
Total
Contract
Amount
Browning Ferris
Industries, Inc., dba
Sunshine Canyon
Landfill
$37,959 $2,239,562 54500002.523010 $2,277,521
Waste Management of
California
Simi Valley Landfill
$30,404 $1,793,860 54500002.523010 $1,824,264
Los Angeles County
Sanitation Districts
Puente Hills MRF
$130,651 $1,045,205 54500002.523010 $1,175,856
Total: $199,014 $5,078,627 $5,277,641
Future year funding is contingent on Council budget approval.

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Packet Pg. 271 Attachment: May 14, 2024 Staff Report (6882 : Emergency Contract for Solid Waste Disposal Services) 8 of 8
Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. Levine Act Disclosure Form - BFI
B. Oaks Initiative Form - BFI
C. Levine Act Disclosure Form - Waste Management of California, Inc., dba Simi Valley Landfill
D. Oaks Initiative Form - Waste Management of California, Inc., dba Simi Valley Landfill

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Packet Pg. 272 Attachment: May 14, 2024 Staff Report (6882 : Emergency Contract for Solid Waste Disposal Services) City Council
Report
City Council Meeting: February 25, 2025
Agenda Item: 4.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Fleet Services Subject: Approve Acceptance of Environmental Protection Agency Grant and Purchase of Street Sweepers for the Resource Recovery and Recycling Division
Recommended Action
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) guidelines;

2. Authorize the City Manager to accept a grant awarded in the amount of $945,000 from the United States Environmental Protection Agency for the Clean Heavy-Duty Vehicles Grant Program for the City of Santa Monica Street Sweeper Replacement Project in the Public Works Department, and to accept all grant renewals;

3. Authorize the City Manager to execute all necessary documents to accept the grant, all grant renewals, and modifications;

5. Authorize the Procurement Manager to issue a purchase order with Mar-co Equipment Company for the purchase of one Compressed Natural Gas (CNG) Tymco Model 600 sweeper for the Public Works Department, Resource Recovery and Recycling Division. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $185,987 including a 10% contingency with future year funding contingent on Council budget approval; and

6. Authorize budget amendment as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).

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If the grant is not received, pending the outcome of the Presidential Executive Order:

7. Authorize the Procurement Manager to issue a purchase order with Mar-co Equipment Company for the purchase of two Compressed Natural Gas (CNG) Tymco Model 600 sweepers for the Public Works Department, Resource Recovery and Recycling Division. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $996,976 including a 10% contingency with future year funding contingent on Council budget approval.

Summary
The City of Santa Monica’s Public Works Department provides essential services that maintain clean and safe neighborhoods and open spaces for Santa Monica’s residents, visitors, and City staff. These operations rely on vehicles and equipment managed and maintained by the City’s Fleet Management Division. Many of these vehicles are aging past their useful lives. The Fleet Management and Resource Recovery & Recycling divisions developed a plan to begin replacing existing internal combustion street sweepers with EV street sweepers to reduce emissions and to pursue the goals defined in Santa Monica’s Climate Action and Adaptation plan. To ensure reliable operations, provide uninterrupted services to the community, reduce downtime and maintenance costs, and comply with California Air Resources Board (CARB) Advanced Clean Fleet (ACF) regulations, staff recommends that Council authorize the City Manager to accept the grant awarded in the amount of $945,000 from the United States Environmental Protection Agency (EPA) for the Clean Heavy-Duty Vehicles (CHDV) Grant Program, and to purchase three battery electric street sweepers (EV), and one compressed natural gas (CNG) sweeper. This recommendation is based on competitive contract pricing available to governmental agencies and serves as an exception to competitive bidding per Santa Monica Municipal Code (SMMC) Sections 2.24.250(c).

Current pricing for EV sweepers is cost prohibitive without a grant subsidy, and there is a low inventory for CNG sweepers that meet the City’s specifications. If the Presidential Executive Order to freeze federal funds prevents the City from receiving the grant from the US EPA’s CHDV Grant Program, staff recommends procuring the only two CNG sweepers currently available on the market and postpone the replacement of two of its existing CNG sweepers until the cost of EV sweepers fall within the City’s budget. This

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recommendation is based on competitive contract pricing available to governmental agencies and serves as an exception to competitive bidding per Santa Monica Municipal Code (SMMC) Sections 2.24.250(c).

Discussion
The Fleet Management Division is responsible for ensuring that over 800 vehicles in the City’s diverse fleet are available, dependable, meet the highest environmental standards for a sustainable fleet, and are safe to operate from acquisition through disposal. The division routinely replaces vehicles that have reached the end of their useful lives through the Vehicle Replacement Fund. The Fleet Management Division and the Resource Recovery and Recycling Division (RRR) Division have collaborated to maximize the useful lifespans of RRR’s vehicles to the greatest extent possible. The vehicles identified for replacement have surpassed their six-year asset lifespans. Due to their age and use, these vehicles require significant maintenance and costly repairs to remain reliable, safe, and operational.

The RRR Division uses these vehicles to provide daily street sweeping services along the City’s approximately 253 curb lane miles. These sweepers are used year-round and are on standby 24 hours per day to respond to cleanup emergencies and to directly support the City Council’s priority of providing a clean and safe environment for our residents, visitors, and the business community. The City depends on the reliability of RRR equipment to carry out street sweeping operations for a clean and sanitary appearance of the city. A lack of functioning and reliable equipment to support operations would result in slower 311 response times. Delays could cause unsanitary conditions and increase the risk to cyclists due to debris remaining on the streets, creating unsightly areas around the city.

In addition to daily activities, RRR utilizes street sweepers for cleanup after major events, as well as in emergencies such as glass and liquid pickup after traffic collisions.

These vehicles would also be used in cleanup efforts in the event of a natural disaster.

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The sweeper vehicles are used in street sweeping activities along the city’s curbs to help ensure debris is collected before reaching the storm drain system. These are specialized vehicles with a self-contained water collection and storage system, ensuring the water used does not enter storm drains. The sweepers scheduled for replacement have been used heavily since 2018 and have a typical useful life of six years.

On December 12, 2024, the City of Santa Monica was awarded a $945,000 grant through the competitive, nationwide CHDV Grant Program from the EPA. The grant would be used to purchase EV street sweepers.

Subsequently, a Presidential Executive Order to pause all federal funding was issued which has impacted availability of the grant funds. As a result, staff has developed two paths forward: 1) if the grant is received and 2) if the grant is not received.

Scenario 1 - Grant Received (Pending Outcome of Presidential Executive Order) Staff is requesting approval to purchase the following vehicles and equipment for a total amount not to exceed $2,614,820 including a 10% contingency. The pricing for the CNG sweeper listed below includes the trade in value of three City sweepers.

Vehicle Replacement Program
Fund Description Vendor Purchase Price Quantity Extended Price*
RRR EV Sweeper
Municipal
Maintenance
Equipment
$809,611 3 $2,428,833
RRR CNG Sweeper
Mar-co
Equipment
Company
$185,987 1 $185,987
Total 4 $2,614,820
*Amount noted includes 10% contingency and applicable trade-in value.

Scenario 2 - Grant NOT Received (Pending Outcome of Presidential Executive Order) Staff is requesting approval to purchase the following vehicles and equipment for a total amount not to exceed $996,976 including a 10% contingency. In this scenario, staff would procure the only two CNG sweepers available in the marketplace that meet the City’s specifications. Fleet Management would trade in one existing sweeper and retain

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two existing CNG sweepers (that otherwise would have been traded in in Scenario 1) for active use until it becomes financially feasible to purchase EV sweepers. The current available city funds allocated for the replacements of these vehicles are insufficient to purchase un-subsidized EV sweepers.

Vehicle Replacement Program
Fun
d
Description Vendor Purchase
Price Quantity Extended Price*

RRR CNG
Sweeper
Mar-co
Equipment
Company
$498,488 2 $996,976
Total 2 $996,976
*Amount noted includes 10% contingency and applicable trade-in value.

Vendor Selection
Scenario 1 - Grant Received (Pending Outcome of Presidential Executive Order) Exception to Competitive Bidding
Staff recommends 1) Municipal Maintenance Equipment, a distributor of Ravo equipment, to furnish and deliver three EV sweepers, and 2) Mar-co Equipment Company, a local dealer of Tymco equipment, to furnish and deliver one CNG sweeper as an exception to competitive bidding per Municipal Code 2.24.250 (c).

Sourcewell issued an RFP for street sweepers and specialty sweepers, with related equipment, accessories, and supplies. Under the terms of the RFP, and the resulting Sourcewell Agreement with Municipal Maintenance Equipment, similar nationally leveraged purchasing discounts are also available to other government agencies.

Sourcewell is a cooperative purchasing agency that serves government, education, and nonprofit organizations. As a cooperative purchasing agency, they acquire goods or services by aggregating the demand of two or more entities in an effort to obtain more economical pricing. Purchase of the EV Ravo sweeper is contingent upon the vendor successfully providing California Air Resources Board certification for the specified sweeper.

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The Houston-Galveston Area Council (H-GACBuy), a government agency that establishes nationally leveraged and competitively solicited purchasing contracts for education, government, and nonprofits, issued a Request for Proposals (RFP) for purpose-built and commercial cab-chassis mounted street sweeper body designs.

Furthermore, per the cooperative, Tymco would offer a $125,000 trade-in credit per sweeper. This $125,000 trade-in credit per sweeper is a better alternative compared to auction, as this amount is above the average auction price of $86,395 the City has received for sweepers of its kind in the past.
c. Competitive procedures were followed by a governmental agency, federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency and the goods or services are supplied to the City at the same or better price.

Scenario 2 - Grant NOT Received (Pending Outcome of Presidential Executive Order) Exception to Competitive Bidding
Staff recommends Mar-co Equipment Company, a local dealer of Tymco equipment, to furnish and deliver two CNG sweepers as an exception to competitive bidding per Municipal Code 2.24.250 (c).

The Houston-Galveston Area Council (H-GACBuy), a government agency that establishes nationally leveraged and competitively solicited purchasing contracts for education, government, and nonprofits, issued a Request for Proposals (RFP) for purpose-built and commercial cab-chassis mounted street sweeper body designs.

Under the terms of the RFP and the resulting H-GACBuy agreement with Tymco, similar nationally leveraged purchasing discounts are also available to other government agencies. Furthermore, Tymco would offer a $125,000 trade-in credit per sweeper. This
$125,000 trade-in credit per sweeper is a better alternative compared to auction, as this amount is above the average auction price of $86,395 the City has received for sweepers of its kind in the past.
c. Competitive procedures were followed by a governmental agency, federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency and the goods or services are supplied to the City at the same or better price.

Environmental Review

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Purchase orders for replacement vehicles are categorically exempt from CEQA pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines.

Section 15302 exempts Class 2 projects which “consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced”. The replacement vehicles would replace existing City fleet vehicles, with essentially the same purpose and capacity.

Therefore, this purchase order qualifies for a Class 2 exemption.

Further, in Scenario 1, staff considered an EV version of the sweeper for the replacement of the fourth sweeper. Nonetheless, staff selected a CNG sweeper due to available budget and to address Resource Recovery & Recycling’s operational requirements. The price of the EV sweeper is $248,623 higher than the CNG variant but offers the same approximate useful life.

Use of Grant Funds (Scenario 1)
On December 12, 2024, the City of Santa Monica was awarded a $945,000 grant through the competitive, nationwide Clean Heavy-Duty Vehicles (CHDV) Grant Program from the United States Environmental Protection Agency. The grant would be used to purchase EV street sweepers.

Financial Impacts and Budget Actions
Scenario 1 - Grant Received (Pending Outcome of Presidential Executive Order) Staff seeks authority to accept a grant from the United States Environmental Protection Agency for the Clean Heavy-Duty Vehicle Grant to purchase street sweepers for the Public Works Department and appropriate funds from the Resource Recovery and Recycling Fund to the Vehicle Management Fund to pay for the required local match.

Staff seeks authority to purchase the more expensive EV sweepers since doing so is in accordance with the City’s Climate Action and Adaptation plan, the lack of availability of compatible CNG sweepers for City operations, and since this would reduce emissions in the City and improve air quality.

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FY 2024-25 Budget Amendment
Funding
Source
Establish Revenue Budget Appropriate Funds
Account # Amount Account # Amount

EPA CHDV
Grant 20500006.406130 $945,000 C2009090.689000 $945,000 Vehicle
Management
Fund
70500001.410540 $867,035 C7000010.689000.90535 $867,035 RRR Fund* I5400010.689000 $867,035
*As part of the vehicle replacement program, RRR has already contributed $802,785.

Staff also seeks authority to approve funding from the Miscellaneous Grants and Vehicle Management Funds to award a purchase order with Municipal Maintenance Equipment for purchase and delivery of three EV sweepers and with Marco Equipment Company for the purchase of one CNG sweeper.

FY 2024-25 Purchase Order Request
Vendor Funding Source CIP Account # Request
Amount
Municipal
Maintenance
Equipment
EPA CHDV Grant C2009090.689000 $945,000
Vehicle Management Fund C7000010.689000.90535 $1,483,833 Total $2,428,833
Marco
Equipment
Company
Vehicle Management Fund C7000010.689000.90535 $185,987
Total $185,987
Future year funding is contingent on Council budget approval.

Scenario 2 - Grant NOT Received (Pending Outcome of Presidential Executive Order) Staff would not issue purchase orders to vendors if grant funds were rescinded due to the current Presidential executive order (as of January 28, 2025) since the higher cost of the EV sweepers is cost-prohibitive when compared to natural gas sweepers. As a contingency plan if grant funds are unavailable, staff would instead procure (2) CNG

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street sweepers to replace existing equipment. Doing so would be feasible since the cost of (2) CNG sweepers would cost less than the EV sweepers, even without grant funds.

Staff seeks authority to approve funding from the Vehicle Management Fund to award a purchase order with Mar-co Equipment Company for the purchase of two CNG sweepers.

FY 2024-25 Purchase Order Request
Vendor Funding Source CIP Account # Request
Amount
Marco Equipment
Company
Vehicle
Management Fund C7000010.689000.90535 $996,976
Total $996,976
Future year funding is contingent on Council budget approval.

Prepared By: Ernest Kwong, Senior Administrative Analyst Approved Forwarded to Council
Attachments:

A. MME - Oaks
B. MME - Levine Act
C. Mar-co - Oaks
D. Mar-co - Levine Act

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Packet Pg. 281

CITY OF SANTA MONICA

OAKS INITIATIVE NOTICE

NOTICE TO APPLICANTS, BIDDERS, PROPOSERS

AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,

OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk.

This information is required by City Charter Article XXII—Taxpayer Protection.

It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after theofficial votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of SantaMonica.

Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period.

In order to facilitate compliance with the requirements of the Oaks Initiative, theCity compiles and maintains certain information. That information includes the name of any personorpersons whois seeking a “publicbenefit.” If the“public benefit” is sought by an entity, ratherthan an individual person, the information includes the nameof everyperson who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months.

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Packet Pg. 282 Attachment: MME - Oaks (6908 : Acceptance of EPA Grant Funds and Purchase of Street Sweepers for RRR)

CITY OF SANTA MONICA

OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.

Public benefits include:

1. Personal services contracts in excess of $25,000 over any 12-monthperiod;

2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;

3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;

4. Non-competitive franchise awards with gross revenue of $50,000 or more inany 12-month period;

5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;

6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or

7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.

Name(s) of persons or entities receiving public benefit:

Name(s) of trustees, directors, partners, and officers:

Name(s) of persons with more than a 10% equity, participation, or revenue interest:

Prepared by: Title:

Signature: Date:

Email: Phone:

Permit #
FOR CITY USE ONLY:

Bid/PO/Contract #

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Packet Pg. 283 Attachment: MME - Oaks (6908 : Acceptance of EPA Grant Funds and Purchase of Street Sweepers for RRR) City of Santa Monica Levine Act Disclosure Form

CITY OF SANTA MONICA

CALIFORNIA LEVINE ACT DISCLOSURE
In 2022, California’s SB1439 extended requirements under Government Code Section 84308, also known as the "Levine Act", to prohibit City “Officers” from participating in any action related to a contract, license, permit, or entitlement if such Officer received campaign contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from a party or participant to the proceeding, or their agent.

Section 84308(a)(4) of the Levine Act defines an "Officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “Officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency or officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position;
(2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or
(4) Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Santa Monica Elected Officials and members of boards and commissions can be found at the following links. The party making this certification is responsible for determining whether a recipient of a political contribution is a City Officer prior to completing this form.
https://www.smgov.net/departments/council/
https://www.santamonica.gov/departments/rent-control
https://www.smgov.net/boards
Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the twelve months preceding the date of the submission of your application or proposal? ____YES ____ NO
Name of Councilmember or City Officer: _________________________________

4.B.b
Packet Pg. 284 Attachment: MME - Levine Act (6908 : Acceptance of EPA Grant Funds and Purchase of Street Sweepers for RRR) City of Santa Monica Levine Act Disclosure Form
Name of Contributor: _________________________________________________ Date(s) of Contribution(s): ____________________________________________ Amount(s) ________________________________________________________ Please specify below and/or add additional sheet(s) to identify additional Councilmembers or City Officers to whom you and/or your agents made campaign contributions.

Answering YES does not preclude the City of Santa Monica from awarding a contract, license, permit, or entitlement or taking any subsequent action related to the item. It does, however, preclude the identified City Officer from participating in any actions related to such item.

By signing below, you certify you also agree to disclose to the City any future contributions made to Councilmembers or other City Officers by you or your agent(s) after the date of signing this disclosure form, and within 12 months following the approval, renewal, or extension of the requested contract, license, permit, or entitlement.

I HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signed: ____________________________ Date: ____________________ Print Name: _________________________ Title: _____________________ Company: __________________________
Additional Disclosures:

Please note this form is a public record and subject to a California Public Records Act request.

4.B.b
Packet Pg. 285 Attachment: MME - Levine Act (6908 : Acceptance of EPA Grant Funds and Purchase of Street Sweepers for RRR) SANTA MONICA CITY ATTORNEY’S OFFICE
TO: Public
FROM: City Attorney’s Office
RE: Levine Act Disclosure Form
DATE: January 25, 2024
The Levine Act (Government Code 84308) is a California law aimed at preventing “pay to play” practices by prohibiting parties, participants, and their agents in a proceeding involving a license, permit, or other entitlement from contributing more than $250 to an officer of the City during a 12-month period. The prohibition applies to any 12-month period while the proceeding is pending and for 12 months following the date a final decision is rendered in the proceeding.

State law requires a party to a proceeding to disclose any contributions exceeding an aggregate $250 that the party and their agents have made to an officer of the City within the preceding 12 months. The Disclosure Form is intended to assist City officials with recognizing when they have an obligation to disclose and recuse themselves, and to aid parties with their disclosure obligations.

1. To what sort of proceedings is the disclosure form applicable? The Levine Act applies to all discretionary entitlements and contracts, with the exception of labor contracts, personal employment contracts, and contracts that must be awarded to the lowest responsive/responsible bidder. It does not apply to ministerial approvals.

For instance, the Levine Act applies to the following:
• Building and development permits
• Conditional use permits
• Contracts generally (unless an exception applies):
o Contracts for goods, services, professional services
o Real property contracts for purchase, sale, lease
o Contract amendments
o Settlement agreements
o Small contracts, including purchase orders, and zero dollar contracts (no de minimis exception)
• Public street abandonments
• Private development plans
• Professional license revocations
• Rezoning of specific real estate parcels
• Event permits
• Rulemaking procedures affecting a particular industry where only a small number of businesses are affected

4.B.b
Packet Pg. 286 Attachment: MME - Levine Act (6908 : Acceptance of EPA Grant Funds and Purchase of Street Sweepers for RRR)

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Santa Monica City CouncilFebruary 25, 2025

Santa Monica City Council
February 25, 2025