1. Proposed Housing trust fund loan
th Street, Santa Monica, CA

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

3. 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

4. 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

5. 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

6. Affordable housing distribution

7. 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

8. Summary of proposed development
BORROWER: Community Corporation of Santa Monica
USE OF FUNDS: acquisition and development of affordable housing at th 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

9. 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

10. 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