agenda - los angeles

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AGENDA LOS ANGELES CITY COUNCIL Called by the Council President SPECIAL COUNCIL MEETING Tuesday, March 1, 2016 at 10:15 AM OR AS SOON THEREAFTER AS COUNCIL RECESSES ITS REGULAR MEETING JOHN FERRARO COUNCIL CHAMBER ROOM 340, CITY HALL 200 NORTH SPRING STREET, LOS ANGELES, CA 90012 Click on the Council file number to access background documents for individual agenda items Click here for the entire agenda packet / documents President GILBERT A. CEDILLO, First District HERB J. WESSON, JR., Tenth District PAUL KREKORIAN, Second District BOB BLUMENFIELD, Third District President Pro Tempore DAVID E. RYU, Fourth District MITCHELL ENGLANDER, Twelfth District PAUL KORETZ, Fifth District FELIPE FUENTES, Seventh District Assistant President Pro Tempore MARQUEECE HARRIS-DAWSON, Eighth District NURY MARTINEZ, Sixth District CURREN D. PRICE, JR., Ninth District MIKE BONIN, Eleventh District MITCH O'FARRELL, Thirteenth District JOSE HUIZAR, Fourteenth District JOE BUSCAINO, Fifteenth District Tuesday - March 1, 2016 - PAGE 1

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Page 1: AGENDA - Los Angeles

AGENDALOS ANGELES CITY COUNCIL

Called by the Council PresidentSPECIAL COUNCIL MEETINGTuesday, March 1, 2016 at 10:15

AMOR AS SOON THEREAFTER AS

COUNCIL RECESSES ITSREGULAR MEETING

JOHN FERRARO COUNCILCHAMBER

ROOM 340, CITY HALL200 NORTH SPRING STREET,

LOS ANGELES, CA 90012Click on the Council file number to access background documents for individual agenda itemsClick here for the entire agenda packet / documents

President GILBERT A. CEDILLO, First District

HERB J. WESSON, JR., TenthDistrict PAUL KREKORIAN, Second District

BOB BLUMENFIELD, Third District

President Pro Tempore DAVID E. RYU, Fourth District

MITCHELL ENGLANDER, TwelfthDistrict PAUL KORETZ, Fifth District

FELIPE FUENTES, Seventh District

Assistant President Pro Tempore MARQUEECE HARRIS-DAWSON, Eighth District

NURY MARTINEZ, Sixth District CURREN D. PRICE, JR., Ninth District

MIKE BONIN, Eleventh District

MITCH O'FARRELL, Thirteenth District

JOSE HUIZAR, Fourteenth District

JOE BUSCAINO, Fifteenth District

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CITY COUNCIL MEETINGS ARE BROADCAST LIVE ON CABLE TELEVISION CHANNEL 35 AND ON THE INTERNET AT: HTTP://LACITY.ORG/CITY-GOVERNMENT/ELECTED-OFFICIAL-OFFICES/CITY-COUNCIL/COUNCIL-AND-COMMITTEE-MEETINGS . LIVE COUNCIL MEETINGS CAN ALSO BEHEARD AT: (213) 621-CITY (METRO), (818) 904-9450 (VALLEY), (310) 471-CITY (WESTSIDE) AND (310) 547-CITY (SAN PEDRO AREA)

SIGN LANGUAGE INTERPRETERS, COMMUNICATION ACCESS REAL-TIME TRANSCRIPTION (CART), ASSISTIVE LISTENING DEVICES, OROTHER AUXILIARY AIDS AND/OR SERVICES MAY BE PROVIDED UPON REQUEST. TO ENSURE AVAILABILITY, YOU ARE ADVISED TO MAKEYOUR REQUEST AT LEAST 72 HOURS PRIOR TO THE MEETING/EVENT YOU WISH TO ATTEND. DUE TO DIFFICULTIES IN SECURING SIGNLANGUAGE INTERPRETERS, FIVE OR MORE BUSINESS DAYS NOTICE IS STRONGLY RECOMMENDED. FOR ADDITIONAL INFORMATION,PLEASE CONTACT THE CITY CLERK'S OFFICE AT (213)978-1059.

SE OFRECE UN SERVICIO DE TRADUCCION AL ESPANOL EN TODAS LAS REUNIONES DEL CONSEJO MUNICIPAL

BASIC CITY COUNCIL MEETING RULES

AGENDAS - The City Council meets Tuesday, Wednesday and Friday at 10:00 A.M. The agendas for City Council meetings contain a brief generaldescription of those items to be considered at the meetings. Council Agendas are available in the Office of the City Clerk, Council and PublicServices Division, Room 395, City Hall, 200 North Spring Street, Los Angeles, CA 90012, and on the City's website at lacity.org; orlacouncilcalendar.com

Ten (10) members of the Council constitute a quorum for the transaction of business. The Council may consider an item not listed on the agendaonly if it is determined by a two-thirds (10) vote that the need for action arose after the posting of an Agenda. Some items on the agenda may beapproved without any discussion, however, any item may be called "special" by a Councilmember. If an item is called "special" it will be "held" untilthe remainder of the items on the Council agenda have been acted on by the Council. An item may also be called "special" if a member of the publichas requested to speak on the item and a public hearing was not previously held.

The City Clerk will announce the items to be considered by the Council, however items will be grouped. For example, all items for which requiredpublic hearings have not previously been held are listed in one section on the printed agenda. The Council President will ask if any Councilmemberor member or the public wishes to speak on one or more of these items. If anyone wishes to speak on an item, it will be called "special". Theremaining items in this section will be voted on by Council with one roll call vote.

PUBLIC INPUT AT CITY COUNCIL MEETINGS - An opportunity for the public to address the Council on agenda items for which public hearingshave not been held will be provided at the time the item is considered. Members of the public who wish to speak on any item (a cumulative time offive (5) minutes) are requested to complete a speaker card for each item they wish to address, and present the completed card(s) to the Sergeant-At-Arms. Speaker cards are available at the back of the Council Chamber.

The Council will also provide an opportunity for the public to speak on public interest items for a cumulative total of up to fifteen (15) minutes.Testimony shall be limited in content to matters which are within the subject matter jurisdiction of the Council. The City Council may not take anyaction on matters discussed during the public testimony period.

If you wish to provide documents to the full Council for consideration on an item, please present the Sergeant-At-Arms with 35 copies. Otherwise,your materials will simply be added to the official record.

COUNCIL DISCUSSION AND TIME LIMITS - Councilmembers requesting to address the Council will be recognized by the Council President in theorder requested. For any item, the Chairperson of the Committee, or the maker of the original motion, or the member calling a matter "special" shallhave up to six (6) minutes to discuss the item. All other Councilmembers may speak up to three (3) minutes each on the matter. After all membersdesiring to speak on a question have had an opportunity to be heard once, the time for each Member desiring to speak again shall be limited to amaximum of three (3) minutes.

A motion calling the "previous question" may be introduced by any member during a Council debate. If adopted, this motion will terminate debate ona matter and the Chair will instruct the Clerk to call the roll on the matter.

VOTING AND DISPOSITION OF ITEMS - Most items require a majority vote of the entire membership of the Council (8 members). Items which havenot been discussed in a Council Committee and have been placed directly on the agenda will require 10 votes to consider. Once considered, theseitems will normally require eight (8) affirmative votes to be adopted. Ordinances require a unanimous vote (at least 12 members must be present) inorder to be adopted on first consideration. If an ordinance does not receive the necessary unanimous vote, it is laid over one calendar week. Thevotes required for approval on second consideration vary and depend upon the type of ordinance, but a typical ordinance requires eight (8)affirmative votes upon second consideration.

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When debate on an item is completed, the Chair will instruct the Clerk to "call the roll". Every member present must vote for or against each item;abstentions are not permitted. The Clerk will announce the votes on each item. Any member of Council may move to "reconsider" any vote on anyitem on the agenda, except to adjourn, suspend the Rules, or where an intervening event has deprived the Council of jurisdiction, providing thatsaid member originally voted on the prevailing side of the item. The motion to "reconsider" shall only be in order once during the meeting, and onceduring the next regular meeting. The member requesting reconsideration shall identify for all members present the agenda number, Council filenumber and subject matter previously voted upon. A motion to reconsider is not debatable and shall require an affirmative vote of eight (8) membersof the Council.

When the Council has failed by sufficient votes to approve or reject an item, and has not lost jurisdiction over the matter, or has not caused it to becontinued beyond the next regular meeting, the item is continued to the next regular meeting for the purpose of allowing the Council to again voteon the matter.

The City Council rules provide that all items adopted by the Council will not be presented to the Mayor, or other designated officer by the City Clerkuntil the adjournment of the regular Council meeting following the date of the Council action. A motion to send an item "forthwith" if adopted by ten(10) votes, suspends these rules and requires the City Clerk to forward the matter to the Mayor, or other officer, without delay.

RULE 16 MOTIONS - Council Rule No. 16, in part, allows a member to send an item directly to the Council without it having to go to a CouncilCommittee first, by giving the City Clerk a motion (seconded by an additional member) during a Council session to be placed on the next regularavailable Council agenda.

Los Angeles City Council AgendaTuesday, March 1, 2016JOHN FERRARO COUNCIL CHAMBER ROOM 340, CITY HALL 200 NORTH SPRING STREET, LOSANGELES, CA 90012 - 10:15 AM

---SPECIAL COUNCIL MEETING---

10:15 AM or as soon thereafter as the Council recesses its Regular Meeting

ROLL CALL

Items for which Public Hearings Have Been Held

ITEM NO. (46)15-0087

HOUSING COMMITTEE REPORT relative to the 2016 Round 2 Funding Opportunityof the Strategic Growth Council’s Affordable Housing and Sustainable Communities(AHSC) Program. Recommendations for Council action:

1. AUTHORIZE the General Manager, Los Angeles Housing and CommunityInvestment Department (HCIDLA), upon Council’s approval of final list of projects,to sign on behalf of the City of Los Angeles as an AHSC Co-Applicant asdetermined by the proposed criteria.

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2. DIRECT the General Manager, HCIDLA, to continue to lead the coordination,partnership and engagement with Los Angeles Department of Transportation,Department of City Planning, Department of Public Works and other CityDepartments, as necessary, in joint planning efforts and assessment of individualaffordable housing projects to increase each AHSC applicant’s readiness andcompetitiveness for current and future funding rounds.

3. APPROVE the proposed City AHSC strategy and co-application selectioncriteria.

4. AUTHORIZE the General Manager, HCIDLA, to issue funding commitmentletters and letters of support for affordable housing projects that meet the City’sAHSC criteria as outlined in the HCIDLA report to the Mayor dated February 19,2016.

5. REQUEST the City Attorney to prepare the appropriate indemnification agreementand review the City’s insurance requirements for projects for which the City is a co-applicant.

6. AMEND co-application selection criteria to include a required Letter of Supportfrom the Council Office representing the district in which the project is located.

7. INSTRUCT the Chief Legislative Analyst to prepare a resolution for Councilapproval in support of the AHSC projects that the City will partner with as a co-applicant or offer general support.

Fiscal Impact Statement: The HCIDLA reports that this action will not impact theGeneral Fund. Approving the above recommendations will allow the City to compete forup to $320 million in AHSC funding. Community Impact Statement: None submitted.

EXHAUSTION OF ADMINISTRATIVE REMEDIES - If you challenge a City action in court, you may be limited to raising only those issues you orsomeone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at or prior to, the publichearing. Any written correspondence delivered to the City Clerk before the City Council's final action on a matter will become a part of theadministrative record.

CODE OF CIVIL PROCEDURE SECTION 1094.5 - If a Council action is subject to judicial challenge pursuant to Code of Civil Procedure Section1094.5, be advised that the time to file a lawsuit challenging a final action by the City Council is limited by Code of Civil Procedure Section 1094.6which provides that the lawsuit must be filed no later than the 90th day following the date on which the Council's action becomes final.

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in theCity Clerk's Office at 200 North Spring Street, City Hall, Room 395, during normal business hours.

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Council File Number 15-0087

Item: (46) HOUSING COMMITTEE REPORT relative to the 2016 Round 2 Funding Opportunity of theStrategic Growth Council’s Affordable Housing and Sustainable Communities (AHSC) Program. Recommendations for Council action:

1. AUTHORIZE the General Manager, Los Angeles Housing and Community InvestmentDepartment (HCIDLA), upon Council’s approval of final list of projects, to sign on behalf ofthe City of Los Angeles as an AHSC Co-Applicant as determined by the proposed criteria.

2. DIRECT the General Manager, HCIDLA, to continue to lead the coordination, partnershipand engagement with Los Angeles Department of Transportation, Department of CityPlanning, Department of Public Works and other City Departments, as necessary, in jointplanning efforts and assessment of individual affordable housing projects to increase eachAHSC applicant’s readiness and competitiveness for current and future funding rounds.

3. APPROVE the proposed City AHSC strategy and co-application selection criteria.

4. AUTHORIZE the General Manager, HCIDLA, to issue funding commitment letters andletters of support for affordable housing projects that meet the City’s AHSC criteria asoutlined in the HCIDLA report to the Mayor dated February 19, 2016.

5. REQUEST the City Attorney to prepare the appropriate indemnification agreement andreview the City’s insurance requirements for projects for which the City is a co-applicant.

6. AMEND co-application selection criteria to include a required Letter of Support from theCouncil Office representing the district in which the project is located.

7. INSTRUCT the Chief Legislative Analyst to prepare a resolution for Council approval insupport of the AHSC projects that the City will partner with as a co-applicant or offergeneral support.

Fiscal Impact Statement: The HCIDLA reports that this action will not impact the General Fund. Approving the above recommendations will allow the City to compete for up to $320 million inAHSC funding. Community Impact Statement: None submitted.

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TRANSMITTAL

To: Date: 02/22/2016THE COUNCIL

From:

THE MAYOR

TRANSMITTED FOR YOUR CONSIDERATION. PLEASE SEE ATTACHED.

(Ana Guerrero)

ERIC GARCETTI Mayor

Tuesday - March 1, 2016 - PAGE 6

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m Ip ■#*OEb

r Los Angeles

HOUSING +COMMUNITYInvestment Department

Eric Garcetti, Mayor Rushmore D. Cervantes, General Manager

Office of the General Manager1200 West 7th Street, 9th Floor, Los Angeles, CA 90017 tel 213.808.8808 | fax 213.808.8616 hcidla.lacity.org

February 19, 2016

Council Files: 15-0087 Council District(s): All

Contact Person(s): Rushmore Cervantes (213) 808-8808 Claudia Monterrosa (213) 808-8650

Helen Campbell (213) 922-9622

The Honorable Eric Garcetti Mayor, City of Los Angeles 200 N. Spring Street, Room 303 Los Angeles, CA 90012

Attn: Mandy Morales, Legislative Coordinator

REQUEST FOR APPROVAL OF VARIOUS ACTIONS RELATIVE TO THE CITY’S STRATEGY FOR THE 2016 ROUND 2 FUNDING OPPORTUNITY OF THE STRATEGIC GROWTH COUNCIL’S (SGC) AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES (AHSC) PROGRAM

SUMMARY

The Affordable Housing and Sustainable Communities (AHSC) Program is one of the eleven cap-and- trade proceeds programs in the state. Its main goal is to reduce greenhouse gas (GHG) emissions through reduced vehicle miles traveled by providing grant and loan opportunities to fund affordable housing developments with sustainable transportation infrastructure, mobility and urban greening components in disadvantaged communities. On January 29, 2016 the Strategic Growth Council (SGC) released the Second Notice of Funding Availability (NOFA) for $320 million. The Concept Application deadline is March 16, 2016, thereafter, SGC will invite the selected proposers to submit a complete full application by June 20, 2016.

As directed by the City Council and the Mayor’s Office (CF #15-0087, Attachment A), the Los Angeles Housing + Community Investment Department (HCIDLA) hereby reports back on the recently approved AHSC guidelines, the concept application process, the ongoing City AHSC working group progress and the strategy the City of Los Angeles used to make final determinations about which projects to join as a Co-Applicant and which projects to recommend for funding. The City’s interdepartmental working

An Equal Opportunity / Affirmative Action Employer

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Affordable Housing and Sustainable Communities Program Funding, Round 2Page 2

group determined that between nine and 16 affordable housing and sustainable transportation projects will submit AHSC Concept Applications to the SGC by the March 16, 2016 deadline.

RECOMMENDATIONSThe General Manager of the Los Angeles Housing and Community Investment Department (HCIDLA) respectfully requests that:

I. Your office schedule this transmittal at the next meeting(s) of the appropriate City Council committee(s) and forward it to the City Council for review and approval immediately thereafter;and

II. The City Council, subject to the approval of the Mayor, take the following actions:

AUTHORIZE the HCIDLA General Manager to sign on behalf of the City of Los Angeles as an AHSC Co-Applicant as determined by the proposed criteria.

A.

DIRECT the HCIDLA General Manager to continue to lead the coordination, partnership and engagement with LA Department of Transportation (LADOT), Department of City Planning (DCP), Department of Public Works (DPW) and other City Departments, as necessary, in joint planning efforts and assessment of individual affordable housing projects to increase each AHSC applicant’s readiness and competitiveness for current and future funding rounds.

B.

APPROVE the proposed City AHSC strategy and Co-Application selection criteria.C.

AUTHORIZE the HCIDLA General Manager to issue funding commitment letters and letters of support for affordable housing projects that meet the City’s AHSC criteria as outlined herein.

D.

BACKGROUNDThe Affordable Housing and Sustainable Communities (AHSC) program furthers the purposes of AB 32 and SB 375, and is one of 11 funding programs included in the State’s Cap-and-Trade program. The purpose of the AHSC program is to reduce GHG emissions by fostering walkability and public transit use to reduce vehicle miles traveled. This goal is achieved by funding affordable housing developments that are coupled with mobility and urban greening improvements.

This program is currently slated to receive an annual statutory allocation (per SB 862) of 20 percent of the proceeds generated by the Cap-and-Trade auction program through 2020. In fiscal year 2015-2016, the state generated over $3 billion in proceeds amounting to an allocation of $320 million for the AHSC program. The fund is projected to grow to $5 billion by 2020, of which $1 billion would go to the AHSC program. Advocacy efforts are underway to make this revenue source permanent. AHSC awards are available as grants and/or loans to capital projects that can achieve GHG reductions and benefit disadvantaged communities (DACs). DACs are census tracts whose combined economic, demographic and environmental factors demonstrate a relatively disproportionate negative impact.

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Affordable Housing and Sustainable Communities Program Funding, Round 2Page 3

Successful projects are those that achieve substantial GHG reduction by increasing the accessibility of affordable housing, employment centers, and key destinations through low-carbon transportation, such as shortened or reduced vehicle trip length or mode shift to transit, bicycling, or walking. With the elimination of the jurisdictional cap limiting the number of awarded projects, a single project may receive up to $20 million in Round 2. The state has identified three project types to implement this strategy: Transit Oriented Development (TOD) Projects, Integrated Connectivity Projects (ICP), and Rural Innovation Project Areas (RIPA). While all types may include affordable housing, only TOD projects are required to include an affordable housing development or an affordable housing related infrastructure.

Of the 20 project proposals that HCIDLA and the City’s AHSC working group reviewed, between nine and 16 affordable housing and sustainable transportation projects have been deemed to meet AHSC program threshold requirements to potentially submit AHSC concept applications to the Strategic Growth Council (SGC) by the March 16, 2016 deadline. The working group is led by HCIDLA in close partnership with the LADOT, DCP, DPW, Chief Legislative Analyst (CLA), Mayor’s Office, Los Angeles County Metropolitan Transportation Authority (LACMTA), and Enterprise Community Partners (Enterprise), a non-profit organization.

AHSC STATUS AND PROPOSED STRATEGY

2nd Round NOFA Approach

In anticipation of the new funding round, HCIDLA has led the City’s AHSC planning efforts and worked collaboratively with the Mayor’s Office, the City Council, the CLA’s Office, LADOT, DCP, DPW, LACMTA, and Enterprise to discuss the AHSC program requirements and coordinate applications within the City of Los Angeles. In order to support these efforts, HCIDLA and Enterprise entered into a Memorandum of Understanding whereby Enterprise agreed to provide technical assistance and expertise to build internal capacity, help facilitate joint planning efforts and increase the City’s AHSC competitiveness in order to help it achieve its policy goals. Since AHSC is a relatively new program, the City sought external support to help ramp up and meet the demand for the current and subsequent rounds of AHSC funding.

The revised AHSC Program structure creates a strong incentive for meaningful coordination between affordable housing developers and public agencies with authority over public transit or transportation infrastructure. AHSC requires project applications with multiple components that include affordable housing, transportation infrastructure, transportation amenities, transportation programming, urban greening and other investments. In some cases, affordable housing developers are ineligible to apply unless they can incorporate significant transportation related infrastructure into their project scopes. Thus, to maximize the number of competitive applications, City staff need to actively integrate, coordinate, and engage in deep joint planning efforts across multiple departments for the current and future AHSC funding rounds.

Proposed City AHSC Strategy Components

Proposed Criteria for General AHSC Support - The City’s goal is to provide assistance and general support to all AHSC applicants developing projects in the City of Los Angeles who approach the City consistent with the City’s working group and AHSC’s timetable. General

I.

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Affordable Housing and Sustainable Communities Program Funding, Round 2Page 4

support includes an evaluation of project readiness in order to determine the project’s likelihood for meeting minimum AHSC threshold requirements. The City’s evaluation includes a collaborative joint planning session between the developer and staff representatives from the HCIDLA, the LADOT, the DCP and other City staff as necessary. If the City’s working group determines that a project meets all of the AHSC program requirements, an official City of Los Angeles resolution that provides general support for both the AHSC concept proposal as well as the AHSC full application will be provided.

II. Proposed Criteria for AHSC Co-Application - The AHSC program awards additional points at the concept proposal and full application stage for affordable housing projects that have teamed up with their local jurisdiction and/or local transportation agency to apply to AHSC as Co­Applicants. An AHSC application that includes the City as a Co-Applicant can potentially improve competitiveness in seven of the 11 possible point categories as outlined in Appendix C. The City will prioritize AHSC applications for Co-Application status that meet the following criteria:

Co-Applicant Criteria:Each Co-Applicant must be project ready and must meet the AHSC minimum threshold requirements. In addition, a Co-Applicant must satisfy at least one of the following criteria:

Have been admitted into the City’s Affordable Housing Trust Fund Managed Pipeline. Advance the HCIDLA’s prioritized planning efforts and policy objectives that implement the production and preservation of affordable housing near transit.Advance and promote sustainable transit infrastructure and amenities that implement prioritized LADOT and LACMTA planning efforts and policy objectives.

A.B.

C.

Evaluating all potential AHSC applications in a collaborative planning session and prioritizing those that meet minimum threshold and advance the Mayor and City Council’s planning and policy objectives for co- application increases the City’s potential to achieve a greater share of AHSC grant and loan funds. This process enhances the City’s AHSC competitiveness in order to produce and preserve quality affordable housing that integrates carbon-reducing measures through sustainable transportation infrastructure and amenities in the City.

Potential AHSC applications that are reviewed by the City’s AHSC working group and are determined not to meet the above Co-Applicant criteria can still proceed to submit their concept applications to the SGC and will receive general support from the City. However, those submissions would not include the City as a Co-Applicant.

Legal Co-Application Requirements - In preparation for the March 16, 2016 concept application deadline, the City is required to self-certify their role as a Co-Applicant and intention to enter into an agreement that clarifies the responsibility borne for specific portions of the award. Thereafter, the City and the pertinent City departments will work with each project invited to submit a full application to develop contractually binding indemnification agreements that address joint and several liability as well as funding administration and overall responsibility. Because each project’s structure is unique there is no template for this type of agreement; the City has the flexibility to develop agreements that do not include broader liability. The City will also require an insurance policy for the benefit of the City from the

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Affordable Housing and Sustainable Communities Program Funding, Round 2Page 5

applicant developer. This indemnification agreement and insurance must be completed by the fall ASHC application deadline of June 20, 2016.

Provide Enforceable Funding Commitments - At the concept phase, applications will be filtered according to (a) satisfaction of AHSC threshold requirements; and (b) demonstration of the level of enforceable funding commitments (i.e. permanent funding commitments such as low-income housing tax credit equity, Community Development Block Grant program, HUD supportive housing program). In order to count 9% tax credits as a possible leveraged source of funding on the AHSC concept proposal and application, an official award letter is required. The HCIDLA will issue preliminary reservation letters as prescribed by the City’s Affordable Housing Trust Fund Managed Pipeline to increase the competitiveness of AHSC applications in the City.

III.

AHSC OUTCOMES TO DATESince the creation of the cap-and-trade program in 2012, HCIDLA, together with the housing community, sought inclusion of affordable housing as a qualifying program through letters and comments to the Air Resources Board (ARB). In 2014, for the first time, the cap-and-trade investment plan created the Affordable Housing and Sustainable Communities program effectively requiring funding set-asides for affordable housing development.

HCIDLA has helped shape the AHSC program guidelines through multiple rounds of comments that include the Mayor’s Office, the City Council, other City Departments, LACMTA, the Southern California Association of Governments (SCAG), and advocacy organizations to ensure the City’s interests and needs are incorporated in final guidelines. In the first NOFA (2014-2015), a total of nine projects located in the City received an AHSC award totaling $30 million and supporting 856 new affordable housing units located in transit-oriented districts and infill areas of the City.

In response to a City Council directive in the Fall 2015, HCIDLA made recommendations to the AHSC program to better consider Los Angeles’ uniqueness. In response, some of the most notable changes to AHSC include a $15 million jurisdictional cap removal, a restructured scoring rubric to better balance GHG and policy objectives, additional points awarded for deeper affordability, and incentives for meaningful coordination between public agencies and housing developers.

HCIDLA also hosted a developer informational session in the fall of 2015 to provide all prospective applicants with an overview of recent key changes to the program guidelines, introduce the City’s approach in assisting potential applicants for the upcoming funding round in January 2016, and identify all potential City of Los Angeles AHSC applicants for 2016. Developers were informed of the new funding guidelines, timelines, and requirements of the program. Representatives from LACMTA, LADOT, DCP and TransForm (a private consultant) also presented at the session and discussed their prospective roles in preparing 2016 AHSC applications. The Mayor’s Office, the CLA’s Office, the Los Angeles River Works section in the Mayor’s Office, the Housing Authority of City of Los Angeles, and the Economic and Workforce Development Department were also in attendance.

Finally, in preparation for the $320 million AHSC Round 2 NOFA HCIDLA, along with key staff from the LADOT, DCP, LACMTA and Enterprise, conducted a series of AHSC one-on-one clinics in early February 2016. Jointly, the working group conducted personalized planning sessions with each developer intending to apply. Each developer met individually with the interdepartmental working

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group to evaluate project readiness, align their affordable housing development with existing transit and community plans, and identify potential opportunities to solidify City-Developer partnerships for possible Co-Application.

CONCLUSIONPositioning the City to maximize its AHSC competitiveness to successfully secure capital loans and grants advances the City’s policy goals as outlined in Mayor Garcetti’s Sustainable pLAn to develop strategies that address climate change impacts to Los Angeles neighborhoods. The AHSC program helps the City achieve its policy goals of producing and preserving strategically developed affordable housing combined with sustainable transit and greening infrastructure improvements to reduce greenhouse gas emissions.

FISCAL IMPACTWhile there is no fiscal impact associated with this report at this time, these recommendations will allow the City to compete for up to $320 million in AHSC funding.

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Prepared by: Reviewed by:

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HELEN CAMPBELL 1Housing, Planning and Economic Analyst

CLAUDIA MONTERROSA Director, Public Policy and Research Unit

Reviewed by: Approved by:

LAURA K. GUGLLELM0 Executive Officer

RUSHMORE D. CERVANTES General Manager

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APPENDICES

APPENDIX A

PROJECTS APPLYING FOR AHSC PROGRAM ROUND 2, 2016No. Managed Project

Pipeline__________Developer Project Address UnitsCouncil

District1 Y PATH

Metro Villas320 N. MadisonPATH Ventures 13 122Ave., 900441036 E. 35th St., 90011

FlorenceMills

2 HollywoodCommunityHousingCorporation

Y 9 54

3 PaulWilliams

HollywoodCommunityHousingCorporation

Y 1010 E. Jefferson Blvd., 90011

9 71

7th &Witmer

1301 E. 7th St., 90017

4 Y Deep Green Housing

1 76

Apts.Y Westmore

Elden PhaseWest Hollywood5 1250 S.

Westmoreland Ave., 90006

1 93CHC

16 Y Westmore

Elden PhaseWest Hollywood 1255 Elden Ave.,

900061 93

CHC2

1077 W. 38th St., 90037

Rolland Curtis West

Y AbodeCommunities

7 8 70

8 Y Metro at Western

Meta Housing Corporation

3651 S. Western Ave., 90018

8 33

9 Sun Valley Sr. Apts.

Y East LA 9041 N. Laurel Canyon Blvd., 91352

6 96CommunityCorporation

Six Four Nine Lofts

Skid Row Housing10 Y 649 S. Wall St., 90014

14 55

54th St. Crenshaw

11 Y West Angeles CDC

5414 S. Crenshaw Blvd, 90043

8 69

12 Buckingham Place Phase

Y Meta Housing Corporation

4020 Buckingham Rd., 90088

10 TBD

IIJordanDowns

Michaels Development, Bridge Housing, HACLA

13 N 9901 S. Alameda, 90002

15 250

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Affordable Housing and Sustainable Communities Program Funding, Round 2Page 9

Bartlett Hill Manor

14 N LINC Housing 625 N. Bunker Hill Ave., 90012

1 65

Skid Row Housing15 N Senator 729 S. Main St., 90014

14 100

401 E. 7th St., 90014

16 Skid Row HousingN TBD 14 100

850-854 E. 29th St., 90011

Griffith & 29th St.

N17 UHC LLC 8 TBD

Griffith & 29th St.

18 N UHC LLC 2901 - 2907 E. Griffith Ave., 90011

8 TBD

3401 E. 1st St., 90063

19 N A Community of Friends

LorenaPlaza

14 49

DerbyHeights

20 N 315 N. Bonnie Brae St., 90026

LINC 13 46

12 At Least1442Units

ManagedPipeline

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Affordable Housing and Sustainable Communities Program Funding, Round 2Page 10

APPENDIX BThe 2016 AHSC Program Schedule as of 2/17/16

Release of 2015-2016 AHSC Notice of FundingAvailability_______________________________Release of2015-2016 AHSC Concept Proposal Application_______________________________

January 29, 2016

February 3, 2016

Concept Proposals Due March 16, 2016Notification of Invite to Submit Full Application Week of April 25, 2016Full Applications Due June 20, 2016Awards Announced September 2016

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Affordable Housing and Sustainable Communities Program Funding, Round 2Page 11

APPENDIX CAHSC Scoring Criteria and Scoring Elements

PointsScoring ElementGHG Reduction

GHG Quantification Methodology• Estimated GHG Emissions Reductions (CalEEMod and TAC):

Total Project GHG ReductionsCost Efficiency of Reductions (Total Project GHG Reductions/AHSC $ Request)

Supplemental Strategies__• Active Transportation Improvements____________________ ________________

1515

10• Water, Energy, and Greening 10

GHG REDUCTION CATEGORY SUBTOTAL 50Policy Objectives

• Decth and Level of Housing Affordability 10• Housing and Transportation Collaboration 10• Community Benefit and Engagement 8• Location Efficiency and Access to Destinations 8• Funds Leveraged 5» Anti-Displacement and Workforce Training Strategies 4• Frcgram Need and Readiness 3» Implementation of Planning Efforts 2

POLICY OBJECTIVES CATEGORY SUBTOTAL 50TOTAL POINTS 100

AHSC Scoring Elements

Policy Objectives 50%

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APPENDIX D Concept Proposal Criteria

Figure 5AHSC Concept Proposals

Required ContentsProject Overview

Project Description defining each of the following:* Project Area Type (TOD, ICP or RIPA)* Project Area (defined by vicinity map, service area, etc.)* Project location (i.e. address)* Transit Service map and schedules

■ct Description* Eligibility for Statutory Set-Asides, if applicable

v Affordable Housing * Disadvantaged Communities

* Identification of Project Co-Benefits_________________AHSC Program funding amounts requested for.* Grant funds

1

2

Loan funds3 Applicant Information:

• Identification of joint applicants• Identification of participating entities

Threshold Requirements4 Description of GHG emission reduction strategies attributable to the Project

Demonstration of how the Project supports the implementation of the applicable SCS or other qualifying regional plan _________ ^_________________________

5

6 ansistencv with State Planning Priorities (Self-Certification form)Readiness

Evidence of Enforceable Funding Commitments8 Project Budgets

Demonstration of Project readiness as appropriate:• Site Control (per Section 106(a)(7))• All necessary NEPA and CEQA clearances per Section 106(a)(4)• All necessary discretionary land use approvals, excludinq design review (per

Section 106(a)(5)*■ Consistency with local public works department, or other responsible local

agency requirements (for Housing-Related and Transportation-Related Infrastructure Capital Projects only) (per Section 106(a)(14)(D) or (15)(A))

• Estimated Project milestone schedule• Demonstration (self-certification) that Project construction has not yet

commenced (per Section 106(a)( IQ)) _____________________________

9

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