June 14, 2021 Breaking News, Latest News, and Videos

$8 Million Bond To Fund 41 Santa Monica Affordable Apartments:

Affordable housing and the Santa Monica Civic Auditorium – two issues impacted by the loss of redevelopment – were both on the City Council’s last Tuesday night agenda.

Both City Hall and members of the community have made no secret their respective desire to preserve affordable housing programs in Santa Monica and prevent the Civic Auditorium from being nothing more than a memory.

Thanks to a consent calendar item, county officials will be issuing bonds worth as much as $8 million to finance 41 affordable apartments in Santa Monica.

The bonds would be issued by the Housing Authority of the County of Los Angeles (HACLA) and would specifically fund affordable apartments at 1855 Ninth Street, 1450 Fourteenth Street, and 2006 Twentieth Street.

Through a resolution unanimously adopted by Council members June 11, City Hall would consent to HACLA issuing the bonds and issue or acquire a mortgage loan to finance the 41 affordable units.

Since HACLA would issue the bonds, that responsibility is off the City’s hands. Accordingly, so, too, is any obligation for Santa Monica to pay back the bonds.

According to City staff, subsidies currently offered by the State of California are expected to dry up by 2015.

“In an effort to preserve 41 affordable apartments, HACLA intends to restructure the financing of the (three properties), City staff stated. “HACLA proposes issuance of tax-exempt, multi-family mortgage revenue bonds as a potential subsidy source.”

Each of the units to be funded by this bond is owned by the County of Los Angeles as part of a single 99-year ground lease for all three properties. That lease was entered into in 1982.

All three properties are “subsidized by the State of California Housing and Community Development Department (HCD) through its Rental Housing Construction Program (RHCP), which provides financing to HACLA to construct, maintain, and operate affordable housing” there.

When it was determined by state officials that the RHCP and the HCD would no longer be able to subsidize the three properties at a financially sustainable level beyond 2015, the County of Los Angeles was approached to find alternate sources of funding.

“Without the continued HCD subsidy, continued operation of the Properties as affordable housing is not financially viable because rental income from the very low-income residents is insufficient to fund operating expenses,” City staff stated. “In order to preserve the 41 affordable apartments, HACLA has identified federal tax credits, tax-exempt multi-family revenue bonds, and Section 8 project-based vouchers as appropriate financial restructuring mechanisms for the Properties.”

The HACLA plans to seek low-income housing tax credits from the California Tax Credit Allocation Committee (CTCAC).

Should they be issued, the bonds would be tax-exempt and assist both the County and City to financially restructure each of the three properties to maintain 41 affordable housing units.

The council’s decision to go along with the bond follows an ordinance modification earlier this year that allowed developers to potentially fast track their respective projects if it provided as many affordable units as possible.

When the current council met in December 2012, it had directed staff to search for ways to bolster revenues to City Hall in an attempt to infuse cash into Santa Monica’s affordable housing programs.

Until 2012, City Hall regularly funded affordable housing programs with redevelopment funds. However, after Gov. Jerry Brown successfully campaigned to shut down redevelopment agencies across the state, funding for affordable housing programs in Santa Monica was almost immediately jeopardized.

Mayor Pro Tem Terry O’Day was not present at the June 11 council meeting.

in News
Related Posts

Martin Cadillac Redevelopment Takes Shape on Olympic Near Bundy

June 11, 2021

June 11, 2021

West Edge development underway near Expo/Bundy station By Sam Catanzaro Wood and concrete framing is now visible at the Martin...

Sheriff Villanueva Announces Plan to Clear Encampments by July 4th

June 10, 2021

June 10, 2021

LASD Homeless Outreach Services Team visits Venice Boardwalk Tuesday By Sam Catanzaro Deputies were on the Venice Beach Boardwalk Tuesday...

In-Person Events Are Back with Summer Swing Nights: Jazzy Vocals plus Live Big Band – Now with Tap Dance, Swing Lessons, Vendors to Benefit Museum

June 10, 2021

June 10, 2021

Live, in-person entertainment is bringing out happy fans of all ages for Summer Swing Nights: Drive-In Edition. The concert fundraiser features the...

Annenberg Beach House Set for Reopening

June 8, 2021

June 8, 2021

Community beach house begins reopening June 15 for splash pad, stand up paddle and courtyard The Annenberg Community Beach House...

Letters to Editor: Main Street Closures

June 7, 2021

June 7, 2021

The following are two letters sent to the Santa Monica Mirror, one in support and one in opposition, regarding a...

Man Attempts to Cut Throat at St. Monica’s Coffee Shop

June 7, 2021

June 7, 2021

Victim in stable condition following Monday morning incident By Sam Catanzaro A man is in stable condition after cutting himself...

Will Parking Structure #3 Be Demolished? Santa Monica Beat – June 7, 2021

June 7, 2021

June 7, 2021

Local news and culture in under 5 minutes. * Will Parking Structure #3 Be Demolished? * Police Make Two Arrests...

Santa Monica City Council to Consider Main Street Traffic Closure

June 7, 2021

June 7, 2021

City staff recommending closure of the roughly 1,000 feet between Hill Street and Kinney Avenue  By Sam Catanzaro Santa Monica...

Artists Featured For SaMo Pride Rainbow Road Art Walk

June 4, 2021

June 4, 2021

In honor of Pride month Santa Monica Pride (SaMo Pride) is featuring a Rainbow Road Art Walk from June 4th-...

Santa Monica Affordable Housing Development Takes Shape

June 4, 2021

June 4, 2021

Pacific Landing apartments underway at Lincoln and Pacific  By Sam Catanzaro A $28 million affordable housing development is taking shape...