February 21, 2024 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

“Women in Jazz” Event at the Moss Theater to Benefit College Scholarship Program

February 20, 2024

February 20, 2024

The Scholarship Trains Students to be Ambassadors for Antiracist Learning and Teaching Los Angeles-based jazz vocalist Amber Weekes, an alumna...

Countdown to the 30th Annual SAG Awards: Celebrating Excellence in Film and TV

February 20, 2024

February 20, 2024

SAG Awards Ceremony Set for Feb. 24, 2024, to be Globally Streamed on Netflix The anticipation for the 30th Annual...

“20’s/20s” Exhibit at ARCANE to Showcase Emerging Artists’ Work

February 20, 2024

February 20, 2024

The Featured Artists Were All in Their Twenties During the 2020s ARCANE Space is set to host an exhibition showcasing...

(Video) If Not Now Los Angeles Protest at Vice President Kamala Harris’ Home in Brentwood

February 20, 2024

February 20, 2024

The group held a Shiva or Jewish mourning ceremony as a protest. @smmirrornews If Not Now Los Angeles Protest at...

Atmospheric River Update for Los Angeles, Santa Monica, and Malibu for February 19

February 19, 2024

February 19, 2024

Road Closures, Mudslides, and Heaviest Rainfall of This Storm Still on the Way The City of Los Angeles intensified its...

A Sustainable “Air Taxi” Service Will Operate Out of West L.A.

February 19, 2024

February 19, 2024

Based on Images and Videos, the Aircraft’s Design Mixes a Helicopter With an Airplane By Zach Armstrong Los Angeles is...

Upcoming “Liquid Grooves” Concert Will Have Ocean and Sea Theme

February 19, 2024

February 19, 2024

Compositions Include “Pacific Grooves” by Tyler S. Grant and “Water Reflections” by Yukiko Nishimura The Emeritus Concert Band of Santa...

Los Angeles Gears Up for Another Slow-Moving Storm: Residents Urged to Prepare

February 18, 2024

February 18, 2024

National Weather Service Issues Flood Watch for Los Angeles County Even though Los Angeles County is still recovering from the...

Downtown L.A. and the Pacific Ocean can be seen from this Nearly $50M Palisadian Home

February 18, 2024

February 18, 2024

A movie theater, waterfall and infinity pool are among its amenities.  By Zach Armstrong A seven bedroom Palisadian estate with...

Two Bedroom Santa Monica Condo Lists for $9.5M

February 18, 2024

February 18, 2024

Originally established in 1928 and meticulously reconstructed in 1996, El Tovar By The Sea stands as an architectural masterpiece Originally...

(Video) Ghost Kitchen Kitchen United MIX has closed on Third Street Promenade

February 16, 2024

February 16, 2024

The Kitchen United MIX Location in Westwood is also closed. It’s a Wingstop Now. @smmirrornews Ghost Kitchen Kitchen United MIX...

Pacific Coast Highway In Western Malibu Faces Nightly Closures Due to Erosion Until Further Notice

February 15, 2024

February 15, 2024

Caltrans Implements Emergency Measures to Address Ocean Side Shoulder Damage Starting on February 14, a full closure of Pacific Coast...

Fiery Crash Shuts Down Pacific Coast Highway in Malibu Near Nicholas Canyon

February 15, 2024

February 15, 2024

Collision and Vehicle Fire Leads to Helicopter Evacuation of Injured Driver A two-car traffic accident resulted in the destruction of...

Council Votes to Advance City Hall Mural Project Focused on Equity

February 15, 2024

February 15, 2024

The Recommendations Center on Changes to the Mural Display and Surrounding Space The Santa Monica City Council voted on Tuesday...

Los Angeles Culinary Community Mourns the Untimely Passing of Chef Jonathan Whitener

February 15, 2024

February 15, 2024

Tributes Pour In for Co-owner of Here’s Looking at You and All Day Baby By Dolores Quintana After the announcement...