Housing Authority
Report
City Council Meeting: April 8, 2025
Agenda Item: 12.A
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To: Housing Authority
From: Heather Averick, Director, Housing and Human Services Department Subject: Public Hearing and Adoption of Santa Monica Housing Authority Draft 5-Year Plan Fiscal Year 2025, the 2025-26 Annual and Administrative Plans Recommended Action
Staff recommends the Santa Monica Housing Authority Board:
1. Hold a public hearing and receive public comment
2. Adopt the Santa Monica Housing Authority 5-Year Plan Fiscal Year (FY) 2025 for FY 2025-2030
3. Adopt the FY 2025-2026 Annual Plan for the previous 5-Year Plan FY 2020-2025
4. Adopt the FY 2025-2026 Santa Monica Housing Authority Administrative Plan
5. Authorize the Submission of the FY 2025-2026 PHA plan which consists of the 5-Year Plan FY 2025, the Annual Plan FY 2025-26, and Administrative Plan to the United States Department of Housing and Urban Development (HUD)
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.
Executive Summary
The Santa Monica Housing Authority (SMHA) administers approximately 1,750 rental assistance vouchers to extremely low-, very low-, and low-income Santa Monica households across six federal housing voucher programs:
• Housing Choice Voucher;
• Continuum of Care;
• HOME Investment Partnerships Program;
• Veterans Affairs Supportive Housing;
• Emergency Housing Voucher; and
• Housing Stability Vouchers.
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Each year, the SMHA is required to submit a Public Housing Authority Plan (PHA Plan) and a progress report to HUD to inform the agency, voucher participants, and members of the public of updates to the SMHA’s mission, goals, and objectives. The SMHA’s mission mirrors that of HUD’s, focusing on promoting adequate and affordable housing, economic opportunity, and a discrimination-free, suitable living environment. The SMHA operates in accordance with the rules and regulations detailed in its Administrative Plan, which incorporates federally established regulations and local policies and procedures.
This year, as part of PHA Plan the SMHA is required to submit the following documents:
1. A Draft 5-Year PHA Plan FY 2025 for FY 2025-2030 (Attachment A).
2. The Annual Plan FY 2025-2026 and Progress Report, completing the previous 5- Year Plan for FY 2020-2025 (Attachment B).
3. The proposed discretionary policy changes, redlined in the Draft Administrative Plan for FY 2025-2026 (Attachment C).
4. A Summary of Proposed Discretionary Changes for FY 2025-2026 (Attachment D).
5. Public Comments and Input from the Resident Advisory Board, voucher participants, the Housing Commission, the public and the Housing Authority Responses to the comments (Attachment E).
Background
City Council, along with tenant representatives, act as the Santa Monica Housing Authority Board (HAB) for the SMHA. On October 13, 2020, the HAB approved the SMHA’s current 5-Year Plan which will end this year on June 30, 2025. On April 9, 2024, the HAB approved the current PHA Plan, which provided updates to the SMHA’s 3 of 10
goals and provided details of the rules and regulations that govern the SMHA’s operations. HUD issues mandatory updates to the Administrative Plan annually, and Housing Authorities like the SMHA can propose discretionary changes to the Administrative Plan.
Annually, the SMHA is required to submit a PHA Plan, report on the progress of the current 5-Year Plan, and provide any updates to the Administrative Plan to HUD. Every 5 years, the SMHA must also submit a new 5-Year Plan.
Each HUD-funded voucher program administered by the SMHA has its own performance reporting requirements, with the PHA Plan specifically serving as a progress update for the Housing Choice Voucher (HCV) program. The SMHA submits a Streamlined Annual Plan due to its "voucher-only" designation, which applies to housing authorities that:
• Administer more than 550 HCVs
• Do not own or manage public housing
• Were not designated as troubled in their most recent SEMAP performance assessment
The deadline to submit the FY 2025-26 PHA Plan is April 17, 2025.
Discussion
The SMHA continues to advance its mission of providing safe, stable, and affordable housing to low-income households through ongoing policy enhancements and strategic planning efforts. The following discussion outlines key updates, including the submission of a new 5-Year PHA Plan (FY 2025-2030), the Annual Plan Progress Report, and proposed updates to the Administrative Plan to align with recent regulatory changes, such as National Standards for the Physical Inspection of Real Estate (NSPIRE) and Housing Opportunity Through Modernization Act of 2016 (HOTMA).
These efforts reflect SMHA’s commitment to improving operational efficiency, expanding affordable housing opportunities, and adapting to evolving federal requirements.
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5-Year Plan FY 2025-2030
The proposed 5-Year Plan FY 2025-2030 outlines SMHA’s long-term vision, focusing on enhancing housing services, expanding rental assistance opportunities, and strengthening partnerships to meet the community’s housing needs. This plan introduces new goals and strategic initiatives designed to improve access, efficiency, and program effectiveness.
Key Goals and Initiatives:
• Expand Supportive Housing Solutions
o Actively seek and apply for additional vouchers as they become available. o Pursue new construction and rehabilitation projects to increase the supply of affordable housing, subject to funding availability. • Enhance Access to Voucher Programs for Santa Monica’s Vulnerable Populations
o Implement targeted interventions to reduce homelessness among individuals and families.
o Develop prevention strategies to help at-risk households maintain stable housing.
• Promote Excellence and Innovation in Service Delivery o Foster a client-centered approach that prioritizes responsiveness, empathy, and efficiency.
o Strengthen relationships with current landlords while actively recruiting new property owners to expand housing options.
o Provide education and outreach to reduce stigma and increase awareness of needs-based housing programs.
o Explore innovative database solutions and technology to enhance efficiency and improve customer service.
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This strategic roadmap will guide SMHA’s efforts over the next 5 years, ensuring its programs remain adaptable to the community’s evolving needs while maintaining compliance with federal regulations.
Annual Plan FY 2025-2026
Additionally, the SMHA Annual Plan Progress report updates information on housing needs, housing strategies, and other City program information. This year marks the final year of the current 5-Year Plan FY 2020-2025, and the progress updates reflect the accomplishments and ongoing initiatives from last year. The proposed Annual Plan Progress Report for FY 2025-2026 includes the following updates:
• The Preserving Our Diversity or POD program, which assists low-income senior renters (65+) in Santa Monica, has implemented its first benefit increase since 2019 to counteract inflation. In May 2024, the adjustment was raised the average monthly assistance from $510 to $766 for 205 participants, helping to alleviate the rising costs of rent, food, and medicine. • The Laurel at 1413 Michigan Avenue received $11,742,234 in City Housing Trust Fund financing to develop 57 residences for individuals experiencing homelessness. Construction was completed in 2024, and SMHA allocated 57 PBVs, achieving full lease-up within the same year.
• The development at 1342 Berkeley Street received a funding commitment of $1,730,153 from the City Housing Trust Fund to construct 13 residences for young adults at risk of homelessness or experiencing housing insecurity.
Construction began in May 2024 and is expected to be completed by Q3 2025. SMHA has allocated 13 PBVs, including 8 designated as permanent supportive housing units.
• The project at 1318 Fourth Street will include 122 residences, with 50 designated as Permanent Supportive Housing (PSH) apartments supported by PBVs. On October 8, 2024, City Council approved the terms of a Disposition and Development Agreement (DDA) and a Ground Lease for this project.
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• The affordable senior housing development at 1211-1217 14th St./1402 Wilshire Blvd. will provide 82 apartments, including 40 PSH residences with PBVs. On December 17, 2024, City Council approved the terms of a DDA and a Ground Lease to move forward with the project.
Administrative Plan
The Draft Administrative Plan FY 2025-2026 includes language changes that are statutory, regulatory, and redlines of any clarifications or policy changes. On September 29, 2023, HUD issued PIH Notice 2023-28, finalizing the administrative procedures for NSPIRE. This new inspection approach prioritizes health, safety, and functional deficiencies over appearance-related issues.
NSPIRE establishes a single, standardized inspection protocol for units under the Public Housing, HCV, Multifamily, and Community Planning and Development programs. It emphasizes resident-impact areas, particularly the dwelling unit, and features clear, objective standards, enhanced inspection protocols, and more defensible scoring criteria to simplify the process.
NSPIRE has replaced the Housing Quality Standards inspection process. The new rules became effective on October 1, 2023, and have been implemented in SMHA operations. As a result, Chapter 8 of the Administrative Plan has been updated to incorporate NSPIRE requirements.
On February 2, 2024, HUD issued the final version of PIH Notice 2023-27, providing Housing Authorities with guidance on implementing Sections 102 and 104 of HOTMA.
Enacted on July 29, 2016, HOTMA’s Title I includes 14 sections that impact the administration of Section 8 rental assistance programs, modifying income review requirements and establishing maximum asset limits. While the final HOTMA rules were initially set to take effect on January 1, 2025, HUD announced in May 2024 that the compliance deadline has been postponed, with no new date established. In response to this delay, SMHA has updated Chapters 6, 7, and 11 of its FY 2025-2026 Administrative Plan. Specifically:
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• Chapters 6A, 7A, and 11A retain pre-HOTMA policies
• Chapters 6B, 7B, and 11B incorporate HOTMA regulations These revisions ensure SMHA is prepared for a smooth transition to HOTMA-compliant procedures once HUD announces the new implementation timeline.
Community Input
The proposed streamlined and formulaic PHA Plan requires a 45-day public comment period and subsequent approval by the HAB, even if there are no substantive changes since the previously approved PHA Plan. SMHA welcomed input regarding the PHA Plan, and the proposed discretionary policy changes during the public review period. All documents were available for review and public comment from January 10, 2025, through February 25, 2025.
• On December 5, 2024, staff attended the regularly scheduled Housing Commission meeting to introduce the forthcoming PHA Plans to the public, including the 5-Year Plan, Annual Plan, and Administrative Plan. • On December 30, 2024, staff notified all Resident Advisory Board members (all HCV program participants) and other voucher participants via email about the opportunity to attend the annual PHA Plan workshop. The workshop was designed to educate participants on the PHA Plan process, emphasize the importance of active engagement, and provide guidance on how to submit input.
• January 8, 2025: staff hosted a virtual session with recipients to provide information and inform them about the PHA Plan process, as well as upcoming opportunities to contribute to the FY 2025-2026 PHA Plans. • On January 7 and January 22, 2025, staff notified all Resident Advisory Board members (all HCV program participants) and all other voucher participants— via their preferred method of correspondence, either direct mail or email— about the opportunity to provide input on the SMHA PHA Plan and Administrative Plan. The notification also included details about the upcoming 8 of 10
Housing Commission meeting on February 6, 2025, and the public hearing during the regularly scheduled council meeting on April 8, 2025. • January 10, 2025: staff posted the start of the public review period on the Housing Division website.
• February 6, 2025: staff delivered a presentation at the monthly Housing Commission meeting, providing a thorough overview of the Annual Plan process and allowed for additional opportunities for community input.
Public Comment
During the public comment period, staff engaged with various stakeholders, receiving feedback through multiple channels including email, mail, in-person interactions, phone calls, and discussions at the Housing Commission meeting. The input received addressed several key areas related to the PHA Plan and SMHA operations, including:
• Prioritizing assistance for vulnerable Santa Monica families • Increasing availability of affordable housing
• Strengthening Landlord Liaison/Housing Navigator services • Exploring a Homeownership Program
• Enhancing Customer Service
• Improving transparency and streamlining procedures and access Staff Response
In response to feedback from Resident Advisory Board members and the public, staff has enhanced its Tier 1 priority for vulnerable Santa Monica residents to better address the evolving needs of the community and expand partnerships that will support these needs.
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The City has already developed several affordable housing initiatives, as detailed in the Progress Report in Attachment B. Additionally, a proposed discretionary policy is being considered for Santa Monicans experiencing homelessness or at risk of homelessness.
Currently, SMHA does not have the resources to administer a homeownership program as the focus remains on core responsibilities for Santa Monica residents in compliance with HUD requirements. However, this is something which remains on a list of opportunities to explore as the capacity of the SMHA and Housing Division grows.
Regarding customer service, procedures, and waitlist management, staff recognizes the feedback requesting improvements in transparency, accessibility, and communication strategies. Efforts will continue to enhance customer service and delivery in these areas, including looking at innovative ways to utilize technology to enhance and streamline procedures and processes.
A comprehensive list of comments received from Resident Advisory Board members, other voucher program participants, and the public is included in Attachment E.
Environmental Review
The SMHA plans are categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The plans are covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The proposed strategies in the plans allocate vouchers for housing and do not cause the construction of any new projects that could have a significant environmental effect. Therefore, it can be seen with certainty that the SMHA plans would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.
Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. 10 of 10
Prepared By: Natalie Verlinich, Housing Manager
Approved Forwarded to Council
Attachments:
A. Draft 5-Year Plan Fiscal Year 2025-2030
B. Annual Plan Fiscal Year 2025-2026
C. Draft Administrative Plan FY 2025-2026 2
D. Summary of Proposed Discretionary Changes for FY 2025-2026 E. Public Comments and Input
F. Written Comments
G. Power Point Presentation