City performs these remaining responsibilities, HCD urges the City to continue to take actions consistent with state law, including its housing element commitments and its duty to affirmatively further fair housing (AFFH), to ensure the continued viability of the Project.
Housing Element Commitments and RHNA Credit
Housing Element Commitments
As the City is aware, through Housing Element Law, the Legislature has established that “the availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.” (Gov. Code, § 65580, subd. (a).) The City contributes to this statewide effort through its adopted housing programs in its 6th Cycle Housing Element (2023-2031).
In addition, under Government Code section 65585, subdivision (i), HCD “shall review any action or failure to act by [the City] that it determines is inconsistent with an adopted housing element…, including any failure to implement any program actions included in the housing element….” Moreover, if HCD “finds that the action or failure to act by [the City] does not substantially comply with this article,” HCD may revoke its findings that the City’s housing element is in compliance with Housing Element Law until it determines that the City has come into compliance with state law.
The City’s failure to approve the TEFRA resolution for the Project may be inconsistent with several of the City’s housing element programs, including but not limited to the following:
Program 3: Affordable Housing Development Toolkit: “The City will actively work with the development community to assist in the development of affordable housing, especially housing for extremely low-income households and households with special housing needs.”
• The Project will provide 181 units of affordable housing, including 19 units of housing for extremely low-income households.
Program 8: Fair Housing: “The City seeks to expand the range of housing opportunities, including for residents with low and moderate incomes, older adults, people with disabilities, large families, female-headed households with children, and people experiencing homelessness.”
• The Project will provide 181 units of affordable housing for residents with low incomes.
Program 8: Fair Housing: “Analysis of Impediments to Fair Housing Choice – As part of the Contra Costa County Consortium, the City participates in the regional Analysis of Impediments to Fair Housing Choice. The City will continue to collaborate in the Analysis
12.C.c
Packet Pg. 2189 Attachment: C. HCD Letter to City of Concord (7606 : TEFRA Hearing - Wilshire/14th) Mayor Edi Birsan, Vice Mayor Carlyn Obringer
Councilmembers Dominic Aliano, Laura Hoffmeister, Laura Nakamura
of Impediments to Fair Housing Choice for the Contra Costa County Consortium and continue to work with the Contra Costa CDBG/HOME Consortium to reduce impediments to fair housing choice.” Recommendation #2 in the regional Analysis of Impediments to Fair Housing Choice is “Improve Financial Assistance for Housing.” • Approving the TEFRA resolution for the Project would improve financial assistance for housing.
Program 11: Incentives to Assist in Development: “The City will continue to provide financial and regulatory incentives to proactively encourage and facilitate the development of affordable housing for lower-income households, particularly those with extremely low incomes and special housing needs including large households, older adults, and persons with physical or developmental disabilities.” • Approving the TEFRA resolution for the Project would provide meaningful financial incentives for the development of affordable housing for lower-income households, including those with extremely low incomes.
Regional Housing Needs Allocation (RHNA) Credit
The City’s RHNA for the 6th cycle housing element planning period includes 744 lowincome units and 1,292 very low-income units (inclusive of extremely low-income units).
The Project would provide 44 low-income units and 46 very low-income units (inclusive of extremely low-income units) to count towards the City’s unmet RHNA. As a reminder, approved entitlements do not count towards RHNA credit – only building permits issued do.
Affirmatively Furthering Fair Housing
Under Government Code section 8899.50, all public agencies must affirmatively further fair housing through their housing and community development programs. Government Code section 8899.50, subdivision (a)(1), defines “affirmatively furthering fair housing” as taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.
Protected groups, for purposes of California’s fair housing laws (including Government Code section 8899.50), encompass persons or families of very low or low income (Gov.
Code, § 65008, subdivisions (a)(1)(B)(3), (b)(1)(C) and (D), (b)(2)(B)). The Project would provide affordable housing for low-income persons and families who fall within the protections of California’s fair housing laws. Furthermore, the Project is located within a half mile of a BART station, grocery stores, restaurants, and shops, thereby providing access to needed resources and amenities.
The duty to AFFH extends to all of a public agency’s activities and programs relating to housing and community development. Public agencies are required to take meaningful actions to AFFH and take no action that is materially inconsistent with its obligation to
12.C.c
Packet Pg. 2190 Attachment: C. HCD Letter to City of Concord (7606 : TEFRA Hearing - Wilshire/14th) Mayor Edi Birsan, Vice Mayor Carlyn Obringer
Councilmembers Dominic Aliano, Laura Hoffmeister, Laura Nakamura
AFFH. (Gov. Code, § 8899.50, subd. (b).) A City decision not to certify the TEFRA resolution may make this project infeasible. If that were to happen here, the benefits of those affordable homes will not accrue to low-income individuals and families. Given that the TEFRA approval creates no risk, obligation, or liability for the City, a denial of the resolution raises concerns about whether that denial is “materially inconsistent” with the City’s obligation to AFFH.
The City has noted, including in its housing element (see Program 8: Fair Housing), that one key action to AFFH is to provide more opportunities for affordable housing in higher resource areas and areas of affluence. HCD applauds the City’s efforts to increase geographic equity and opportunities for residents by identifying and rezoning areas appropriate for medium and high residential densities, specifically in moderate- and highresource areas with majority white population.
However, during the May 28, 2024, TEFRA hearing, several Councilmembers expressed concern that approving more affordable housing in the downtown area would go against the City’s obligations to AFFH. The goal of AFFH is to provide more affordable housing opportunities in more locations, not fewer affordable housing opportunities. The obligation under AFFH to increase affordable housing opportunities in one place does not permit the City to block affordable housing in another. AFFH is focused on ensuring households with protected characteristics have equal access to opportunity. In addition to approving affordable housing throughout the community, the City must also implement place-based strategies to encourage community conservation and revitalization in lowerresource areas. HCD applauds the City’s place-based strategies found in Housing Element Program 26.
Conclusion
In sum, HCD commends the City on its approval of the Project and urges the City Council to approve the TEFRA resolution. HCD will continue to monitor the Project and reminds the City that, pursuant to Gov. Code section 65585, subdivision (j), HCD has authority to enforce Housing Element Law and AFFH, among other state housing laws.
Thank you for your attention to this matter. If you have any questions regarding the content of this letter or need additional technical assistance, please contact Stephanie Reyes at [email protected].
Sincerely,
David Zisser
Assistant Deputy Director
Local Government Relations and Accountability
12.C.c
Packet Pg. 2191 Attachment: C. HCD Letter to City of Concord (7606 : TEFRA Hearing - Wilshire/14th)
STATE OF CALIFORNIA
FAIR POLITICAL PRACTICES COMMISSION
1102 Q Street • Suite 3050 • Sacramento, CA 95811
March 16, 2026
Trevor Nichols
Via email:
Re: FPPC Complaint No. COM-01272026-00248; Caroline Torosis Dear Trevor Nichols:
This letter is in response to the sworn complaint you submitted to the Enforcement Division of the Fair Political Practices Commission (FPPC) regarding the above-named individual. After review of the complaint and evidence provided, the Enforcement Division will not pursue an enforcement action in this matter. California Government Code § 82030(b)(2) excludes “Salary and reimbursement for expenses or per diem, and social security, disability, or other similar benefit payments received from a state, local, or federal government agency…”, from the definition of “income.” Furthermore, Regulation 18702.5(b)(1) states that a governmental decision’s reasonably foreseeable financial effect on a public official’s financial interest in personal finances is not material if the decision would affect only the salary, per diem, or reimbursement for expenses the public official or a member of the official’s immediate family receives from a federal, state, or local government agency unless the decision is to appoint (other than an appointing decision permitted under subdivision (b)(2) and (3)), hire, fire, promote, demote, suspend without pay or otherwise take disciplinary action with financial sanction against the official or a member of the official's immediate family, or to set a salary for the official or a member of the official's immediate family which is different from salaries paid to other employees of the government agency in the same job classification or position, or when the member of the public official's immediate family member is the only person in the job classification or position. Therefore, the salary Caroline Torosis receives from the County of Los Angeles does not constitute a financial interest that could result in a conflict of interest related to the December 2024 vote. Furthermore, the FPPC does not have jurisdiction over the other allegations in your complaint, such as those involving the Brown Act. If you have any questions regarding this letter, please contact Cole Smith by email at [email protected] or by phone at (279) 237-3770.
Sincerely,
Kendall L.D. Bonebrake
Kendall L.D. Bonebrake
Chief, Enforcement Division
KLDB:cts
cc: Caroline Torosis
12.C.d
Packet Pg. 2192 Attachment: D. Rejection Letter - FPPC Complaint No. COM-01272026-00248; Caroline Torosis_Redacted (7606 : TEFRA Hearing - Wilshire/14th) Tierra Apartments TEFRA Hearing
June 9, 2026
Item 12-C
June 9, 2026
Item 12-C
June 9, 2026
12.C.e
Packet Pg. 2193 Attachment: PowerPoint Presentation (7606 : TEFRA Hearing - Wilshire/14th) 2 Development Overview
• Proposed 82-unit affordable senior housing development • Including 40 residences for permanent supportive housing for seniors • Locations: 1402 Wilshire Blvd and 1211–1217 14th Street • Developer: Hollywood Community Housing Corporation
Upcoming Milestones
• June – July 2026: City Parking Lot Closed / Construction Begins • Spring 2028: Construction Completed / Lease-Up of New Residences Item 12-C
June 9, 2026
Item 12-C
June 9, 2026
12.C.e
Packet Pg. 2194 Attachment: PowerPoint Presentation (7606 : TEFRA Hearing - Wilshire/14th) 3 Purpose of TEFRA Hearing
• Required under IRS and the Tax Equity and Fiscal Responsibility Act (TEFRA) for tax-exempt bonds
• Allows California Municipal Finance Authority (“CMFA”) to issue up to $28M in revenue bonds
• City approval is procedural
• No financial obligation or liability to the City
• Bonds are solely the responsibility of the Borrower
Item 12-C
June 9, 2026
Item 12-C
June 9, 2026
12.C.e
Packet Pg. 2195 Attachment: PowerPoint Presentation (7606 : TEFRA Hearing - Wilshire/14th) 4 Recommended Actions
Staff recommends that the City Council:
1. Determine that the development of affordable housing at 1211-1217 Fourteenth Street was previously analyzed in the 6th Cycle Housing Element Environmental Impact Report (SCH# 2020100575), and the issuance of the TEFRA bond for this project has no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Hold a public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended; and
3. Adopt a resolution approving the issuance of bonds by the CMFA in an amount not- to-exceed $28,000,000 for the benefit of Tierra Apts, L.P. to finance and refinance the acquisition, construction, development, and equipping of an affordable multifamily rental housing development to be located at 1402 Wilshire Boulevard and 1211-1217 Fourteenth Street.
Item 12-C
June 9, 2026
Item 12-C
June 9, 2026
12.C.e
Packet Pg. 2196 Attachment: PowerPoint Presentation (7606 : TEFRA Hearing - Wilshire/14th) City Council
Report
City Council Meeting: June 9, 2026
Agenda Item: 16.A
1 of 1
To: Mayor and City Council
From: Oliver Chi, City Manager, City Manager's Office
Subject: Request of Councilmembers Negrete, Hall, and Zernitskaya to approve an expenditure of up to $5,000 in Council discretionary funds to support Art on Ocean, a free public arts festival planned for August 8, 2026, on Ocean Avenue and Palisades Park in Santa Monica, with allocations from each Councilmember’s portion of discretionary funds as follows: $1,000 allocated from Councilmember Hall, $2,000 from Councilmember Negrete, and $2,000 from Councilmember Zernitskaya
Prepared By: Sergio Ramirez, Chief of Staff
Approved Forwarded to Council
Attachments:
A. Discretionary Funds Tracking
16.A
Packet Pg. 2197
FY 2025-26 Council Discretionary Funds
Updated: 5/19/2026 Council Discretionary Funds 01100001.532330.Project# FY 2025-26 - New Appropriation and allocations
Entered
Into Tyler
Project#
Description Amount Programmed Date Negrete Torosis Hall Raskin Snell Zernitskaya Zwick FY 2025-26 - New Appropriation 140,000.00 Budget Adoption FY25-26, 6/24/25, Council meeting, 10/14/25, Item 11B $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 11/26/25 12095 Legado Latino-2025 Dia de Muerto Celebration (6,000.00) Council Meeting 11/18/25, Item 16C (3,000.00) (3,000.00) 12/15/25 12096 SMC Annual Givnig THANKS(giving) Event (3,000.00) Council Meeting 11/18/25, Item 16D (1,000.00) (1,000.00) (1,000.00) 04/02/26 12097 Summer Willis Foundation Denim Run (4/12) (7,000.00) Council Meeting 03/24/26, Item 16I (1,000.00) (1,000.00) (1,000.00) (1,000.00) (1,000.00) (1,000.00) (1,000.00) 4/23/26 12098 The Giving Place 40th Anniv. Celebrarion (4/18) (5,000.00) Council Meeting 04/14/26, Item 16I (1,000.00) (1,000.00) (1,000.00) (1,000.00) (1,000.00) 12091 SM Library's LEGO Club Program (5,000.00) Council Meeting 05/12/26, Item 16C (5,000.00) 5/18/26 12095 Legado Latino Graduation Activities (Match Funds) (5,000.00) Council Meeting 05/12/26, Item 16D1 (2,000.00) (1,000.00) (2,000.00) 12088 Black Student Union Graduation Night (Match
Funds)
(5,000.00) Council Meeting 05/12/26, Item 16D2 (1,000.00) (3,000.00) (1,000.00) 5/26/26 TBD Santa Monica Pier Corp-Rt. 66 Event (5,000.00) Council Meeting 05/26/26, Item 16A (2,500.00) (2,500.00) 6/9/26 TBD Art on Ocean* (5,000.00) Council Meeting 6/9/26, Item _____ (2,000.00) (1,000.00) (2,000.00) -
-
Total $ 94,000.00
*PENDING COUNCIL APPROVAL
$ 94,000.00 Unprogrammed Balance Available $ 13,500.00 $ 14,000.00 $ 5,000.00 $ 18,000.00 $ 15,000.00 $ 9,500.00 $ 19,000.00
16.A.a
Packet Pg. 2198 Attachment: Discretionary Funds Tracking (7754 : Support for Art on Ocean) City Council
Report
City Council Meeting: June 9, 2026
Agenda Item: 16.B
1 of 1
To: Mayor and City Council
From: Oliver Chi, City Manager, City Manager's Office
Subject: Request of Councilmembers Hall, Zernitskaya, and Snell that Council direct the City Manager to sign “A Pledge for Shared Prosperity,” the anti-poverty pledge launched by the Los Angeles County Poverty Alleviation Initiative (PAI), and to integrate the pledge’s three countywide goals into Santa Monica’s existing outreach and benefits-access work
Prepared By: Sergio Ramirez, Chief of Staff
Approved Forwarded to Council
Attachments:
A. 20260609 16 Item - A Pledge for Shared Prosperity - Hall, Zernitskaya, Snell
16.B
Packet Pg. 2199
Meeting: June 9, 2026
16 ITEM BY COUNCILMEMBERS HALL, ZERNITSKAYA, AND SNELL
Request of Councilmembers Hall, Zernitskaya, and Snell that Council direct the City Manager to sign “A Pledge for Shared Prosperity,” the anti-poverty pledge launched by the Los Angeles County Poverty Alleviation Initiative (PAI), and to integrate the pledge’s three countywide goals into Santa Monica’s existing outreach and benefits-access work.
On April 7, 2026, the Los Angeles County Board of Supervisors, on a motion1 by Supervisors Mitchell and Horvath, directed the Poverty Alleviation Initiative (PAI) to launch a public-facing anti-poverty pledge2inviting all 88 cities in the County to sign on as partners. The pledge sets three countywide goals: 1) increase CalWORKs enrollment by 10,000 families; 2) increase Earned Income Tax Credit and Child Tax Credit filings by 10% over two years through expanded Volunteer Income Tax Assistance and the County’s “Claim Your Cash Los Angeles” program; and 3) promote the “Keep Your Benefits” campaign to residents already enrolled in CalFresh and Medi-Cal. The goals respond to a sharp federal contraction: beginning June 2026, SNAP work requirements established by H.R. 1 will affect more than 250,000 CalFresh recipients across the County.
Cities that sign receive in-kind technical assistance, neighborhood-level data through the State of Poverty Dashboard, ready-to-use outreach toolkits, and eligibility for micro-grants to support local implementation. Santa Monica residents are eligible for these benefits but underclaim them; signing equips City staff with County-built tools to close that gap more effectively than we could on our own, and pairs naturally with the Affordability Agenda Council adopted on January 27, 2026.
In order to join Los Angeles County in connecting more Santa Monica families to the benefits and tax credits they are eligible to receive, WE THEREFORE MOVE THAT THE COUNCIL:
1. Direct the City Manager to:
1.1. Sign “A Pledge for Shared Prosperity” on behalf of the City and register the City as a pledge partner with PAI.
1.2. Promote CalWORKs enrollment, Claim Your Cash Los Angeles, Volunteer Income Tax Assistance, and the Keep Your Benefits campaign through the City’s standard communications channels and resident-facing touchpoints.
1.3. Coordinate with PAI on technical assistance, data sharing, and progress reporting.
###
2 https://ceo.lacounty.gov/poverty-pledge/
1 https://ceo.lacounty.gov/wp-content/uploads/2026/05/213997.pdf
16.B.a
Packet Pg. 2200 Attachment: 20260609 16 Item - A Pledge for Shared Prosperity - Hall, Zernitskaya, Snell (7755 : A Pledge for Shared Prosperity)