Proposed Housing trust fund loan 1834-1848 14th Street, Santa Monica, CA

Funding Policy Context Housing Trust Funds (HTF) HTF Plan HTF Guidelines

Housing trust funds Loans to nonprofits to create affordable housing Funding sources include: Measure GSH – transactions and use tax RDA loan repayments to City Development impact fees

HTF PLAN Establishes funding priorities and annual reporting requirements Aligns with Housing Element cycle Allocates equal funding among four groups: persons living with disabilities/persons experiencing homelessness seniors large families small families/individuals

HTF guidelines Establishes loan terms and limits Administrative approval process for loans consistent with HTF Guidelines Goals include: depth of affordability leveraging non-City funds geographic dispersion of affordable housing

Affordable housing distribution

HTF guidelines Loans for development of 51+ residences must be approved by Council Proposed loan involves approximately 55 residences, requiring Council approval Proposed loan is otherwise consistent with Guidelines

Summary of proposed development BORROWER: Community Corporation of Santa Monica USE OF FUNDS: acquisition and development of affordable housing at 1834-1848 14th Street LOAN AMOUNT: within limits established in the HTF Guidelines; currently estimated at approximately $15 million AFFORDABILITY: 30% - 80% of area median income HOUSEHOLD TYPE: individuals, small families, large families HOUSING MIX: one-, two-, and three-bedroom apartments

MERITS OF THE PROPOSED LOAN Increases affordable housing supply for extremely low-, very low-, and low-income households Leverages $25 million in private (tax credit) equity and bank loan Furthers goals of Housing Element, HTF Plan, and Proposition R

Staff recommendations APPROVAL OF LOAN TO AFFORDABLE HOUSING DEVELOPMENT (50+ APARTMENTS): within limits established in the HTF Guidelines; currently estimated at approximately $15 million DEVELOPER FEE: $19,379 per apartment, or $1,065,845 for 55 apartments [clarification: no portion would be deferred; milestone payments per HTF Guidelines] LOCAL PRIORITY: occupancies must be filled using the City-administered wait list