Housing Authority
Report
City Council Meeting: April 14, 2026
Agenda Item: 12.B
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To: Housing Authority
From: Aileen Reynolds, Director, Housing and Human Services Department Subject: Public Hearing and Adoption of Fiscal Year 2026-2027 Annual Public Housing Authority Plan
Recommended Action
Staff recommends the Santa Monica Housing Authority Board:
1. Hold a public hearing and receive public comment
2. Adopt the Draft Fiscal Year FY 2026-2027 Annual Plan and Progress Report for the Five-Year Plan for 2025-2030
3. Adopt the FY 2026-2027 Administrative Plan
4. Authorize the Submission of the FY 2026-2027 PHA Plan which consists of the Draft Annual Plan and Progress Report, and Draft Administrative Plan to the United States Department of Housing and Urban Development
5. 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 1,690+ rental assistance vouchers to extremely low-, very low-, and low-income Santa Monica households across six federal housing voucher programs:
• Housing Choice Voucher (HCV);
• Continuum of Care (COC);
• HOME Investment Partnerships Program (HOME);
• Veterans Affairs Supportive Housing (VASH);
• Emergency Housing Voucher (EHV); and
• Housing Stability Vouchers (SV)
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Annually, the SMHA is required to submit a Public Housing Authority Plan (PHA Plan) and a Progress Report to United States Department of Housing and Urban Development Department (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. Draft FY 2026-2027 Annual Plan and Progress Report for the 2025–2030 Five-Year Plan (Attachment A).
2. Draft FY 2026-2027 Administrative Plan outlining the proposed discretionary policy changes (Attachment B).
3. A Summary of Proposed Discretionary Changes (Attachment C).
4. Public Comments and Input from the Resident Advisory Board (RAB), the Housing Commission, voucher participants, and the public and the Housing Authority Responses to the comments (Attachment D).
Background
City Council, along with tenant representatives, act as the Santa Monica Housing Authority Board (HAB) for the SMHA. On April 8th, 2025, the HAB approved the SMHA’s Five-Year Plan for 2025-2030 as well as the current PHA Plan, which provided updates to the SMHA’s goals and details of the rules and regulations that govern the SMHA’s operations. HUD issues mandatory updates to the Administrative Plan annually, while housing authorities such as the SMHA may propose additional discretionary revisions to the Administrative Plan.
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For each year of the Five-Year Plan, the SMHA is required to submit a PHA Plan, report on the progress of the current plan, and provide HUD with any updates to the Administrative Plan. Every five years, the SMHA must also submit a new Five-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 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 Section 8 Management Assessment Program (SEMAP) performance assessment
The deadline to submit the FY 2026-2027 PHA Plan to HUD is April 17, 2026.
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 Draft FY 2026-2027 Annual Plan and Progress Report, and proposed updates to the Draft FY 2026-2027 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 the SMHA’s commitment to improving operational efficiency, expanding affordable housing opportunities, and adapting to evolving federal requirements.
Draft FY 2026-2027 Annual Plan and Progress Report
The Draft FY 2026-2027 Annual Plan and Progress Report updates information on housing needs, housing strategies, and other City program information. FY 2025-26 is the first year of the current Five-Year Plan, and the progress updates reflect the 4 of 10
accomplishments and ongoing initiatives for that year. The Draft FY 2026-2027 Annual Plan and Progress Report includes the following updates:
• Berkeley Station, a new 13-residence development leasing in April 2026, will provide permanent homes for eight Santa Monica–based vulnerable youth households—who will also receive onsite supportive services—and an additional five vulnerable families from the Santa Monica waitlist, expanding deeply needed affordable housing in the City. After years of strong collaboration with the Community Corporation of Santa Monica (CCSM), the City of Santa Monica, and St. Joseph Center, this project stands as a major long-term- success for the community. • 2033–2101 Virginia Avenue involves the rehabilitation of an existing rent controlled apartment complex, with completion expected in 2027. Current residents have been temporarily relocated and will be able to return at their rent controlled rents. New households will be limited to those earning up to 80% of Area Median Income (AMI), and the SMHA has committed up to 20 Project Based Vouchers to the property.
• The SMHA also committed 40 Project-Based Vouchers to an 82-residence City-loan-funded affordable housing development planned for 1402 Wilshire Boulevard/1211-1217 14th Street.
• The City continues its strong collaboration with EAH and The People Concern (TPC) at The Laurel streamlining recertifications and new admissions processes. Weekly coordination with onsite staff has strengthened operations and support both for tenants and the property staff, resulting in the 57-residence property now being fully occupied with a short waitlist in place for future openings.
• The SMHA has broadened its network of partner agencies authorized to refer applicants to the CoC Program to include CLARE|MATRIX, Salvation 5 of 10
Army, and Exodus Recovery, thus creating more pathways for chronically homeless, disabled households to access permanent housing. At the same time continuing its strong relationship with long standing partners TPC, St. Joseph Center, and Step Up on Second.
Draft FY 2026-2027 Administrative Plan
The Draft FY 2026-2027 Administrative Plan includes changes to statutory and regulatory language and redlines 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.
The mandatory implementation deadline for NSPIRE has been revised from October 1, 2025, to February 1, 2027. Until then, SMHA will continue to use the existing Housing Quality Standards (HQS) for HCV inspections. To prepare for the transition, the Draft FY 2026-2027 Administrative Plan includes two versions of Chapter 8: one reflecting current pre-NSPIRE regulations, and one outlining the NSPIRE requirements that will take effect upon HUD implementation.
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 on December 18, 2025 6 of 10
that the implementation has been extended to January 1, 2027. Therefore, the Draft FY 2026-2027 Administrative Plan still has two versions of Chapters 6, 7 and 11.
Specifically:
• 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 officially implements them.
Community Input
The proposed streamlined and formulaic PHA Plan requires a 45-day public review and 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 a 45-day public review and comment period. All documents were available for public review and comment from January 20, 2026, through March 6, 2026.
• On January 8, 2026, staff attended the regularly scheduled Housing Commission meeting to introduce the forthcoming PHA Plans to the public, including the Draft FY 2026-2027 Annual Plan and Progress Report and Draft FY 2026-2027 Administrative Plan.
• On January 20, 2026, staff posted the start of the public review and comment period on the Housing Division website.
• On January 21, 2026, staff notified all RAB members (all HCV program participants) and all other voucher participants via email about the opportunity to provide input on the Draft FY 2026-2027 Annual Plan and Progress Report and Draft FY 2026-2027 Administrative Plan. The notification also included details about the upcoming Housing Commission meeting on February 5, 7 of 10
2026, and the public hearing during the regularly scheduled City Council meeting on March 24, 2026.
• On January 28, 2026, staff notified all RAB 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. • On February 3, 2026, staff hosted a virtual session with voucher participants to explain the annual PHA Plan process and share upcoming opportunities to contribute to the Draft FY 2026–2027 PHA Plans.
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• On February 5, 2026, staff presented at the monthly Housing Commission meeting, providing an overview of the annual PHA Plan process, highlighting major accomplishments from the Draft FY 2026-2027 Annual PHA Plan and Progress Report, outlining key changes to the Draft FY 2026-2027 Administrative Plan, and offering additional opportunities for community input.
Public Comments
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:
• Ensuring disabled CoC participants can regularly express their concerns and needs
• Enhancing access for participants with disabilities to fully engage in the PHA Plan review and public comment process
• Offering portability under CoC program without participants having to switch to HCV program
• Allowing for extra bedrooms for individuals added to a household through court order and for rotating aides
Staff Responses
Staff received comments regarding expanding outreach efforts, particularly for individuals with disabilities. All voucher participants were invited to attend the Housing Commission meeting on February 5, 2026, where staff presented the PHA Plan and accepted public comments. In response, staff will enhance outreach efforts and present the PHA Plan to the Disability Commission in future cycles. Participants may also share input at City Council, Housing Commission, and Disability Commission meetings, or by submitting written comments to [email protected] or at the 9 of 10
Housing Office located next City Hall East.
Staff received feedback on workshop accessibility. A virtual workshop was held to explain the PHA Plan process and how to submit public comments. Moving forward, staff will also host an in-person meeting and provide additional details on major Administrative Plan updates.
Staff received comments regarding portability for CoC participants. Under HUD regulations, portability is not permitted in the CoC program and cannot be changed locally. However, Santa Monica allows limited moves within nearby areas where inspections, recertifications, and supportive services can be maintained, including through virtual inspections. CoC participants may transition to the HCV program, which allows full portability.
Staff also received comments regarding additional bedrooms. SMHA follows HQS occupancy standards of two persons per bedroom. The FY 2025–2026 Administrative Plan allows an additional bedroom for a live-in aide. The Draft FY 2026–2027 Plan clarifies that an extra bedroom may be approved for a foster child or adult if occupancy standards would otherwise be exceeded. Reasonable Accommodations remain available where applicable.
A comprehensive list of comments received from RAB, other voucher program participants, and the public is included in Attachment D.
Environmental Review
The SMHA Plans are exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, 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 provide updates and establishes policies to allocate vouchers for housing and do not cause the construction of any new projects that could have a significant environmental effect. Therefore, it can 10 of 10
be seen with certainty that the SMHA plans would not result in adverse physical impacts on the environment, and as such, is 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.
Prepared By: Yelena Solovyeva, Senior Administrative Analyst - Housing Authority
Approved Forwarded to Council
Attachments:
A. Draft FY 2026-2027 Annual Plan and Progress Report (Web Link) B. Draft FY 2026-2027 Administrative Plan
C. Summary of Proposed Changes
D. Public Comments and Responses
E. Written Comments
F. PowerPoint Presentation