City Council

(22) 23-0321-S1 BUDGET, FINANCE AND INNOVATION COMMITTEE REPORT relative to a request for authorization to increase the receiver loan for the Court-appointed receiver of the Skid Row Housing Trust. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: AUTHORIZE the General Manager, Los Angeles Housing Department (LAHD), or designee, subject to review and approval of the City Attorney as to form, to negotiate and execute a second loan agreement and related documents to lend up to an additional $10 million, to the already Council approved $2 million (Council file No. 23-0321-S1, October 13, 2023 Council action), to Receivership Specialists, a California corporation, the Court-appointed receiver in the matter of City of Los Angeles v. Crest Apartments LP, et al., Case No. 23STCP01011, pending in the Los Angeles County Superior Court (Receivership) for some or all of the Properties located at the addresses below, collectively referred to as “The SRHT Receivership Properties”: ​​​​​​ Flor 401 Lofts: 401 East 7th Street, Los Angeles, California 90014 Senator Hotel Apartments: 729 South Main Street, Los Angeles, California 90014 San Pedro House Apartments: 647 South San Pedro Street, Los Angeles, California 90014 SP7 Apartments: 519 East 7th Street, Los Angeles, California 90014 649 Lofts: 649 Wall Street, Los Angeles, California, 90014 Olympia Hotel Apartments: 1201 East 7th Street, Los Angeles, California 90021 Las Americas Hotel Apartments: 1205 East 6th Street, Los Angeles, California 90021 Abbey Apartments: 625 San Pedro Street, Los Angeles, California 90014 Charles Cobb Apartments: 521 San Pedro Street, Los Angeles, California 90013 Boyd Hotel: 224 East Boyd Street, Los Angeles, California 90013 St. George Hotel: 115 East 3rd Street, Los Angeles, California 90013 Dewey Hotel: 721 South Main Street, Los Angeles, California 90014 Edward Hotel: 713 East 5th Street, Los Angeles, California 90013 Hart Hotel: 508 East 4th Street, Los Angeles, California 90013 Lincoln Hotel: 549-551 Ceres Avenue, Los Angeles, California 90021 New Carver Apartments: 1624 South Hope Street and 325 West 17th Street, Los Angeles, California 90015 Genesis Apartments: 452-458 South Main Street, Los Angeles, California 90013 Produce Hotel Apartments: 676 South Central Avenue, Los Angeles, California 90021 Rainbow Apartments: 643 South San Pedro Street, Los Angeles, California 90014 Sanborn Hotel: 526 South Main Street, Los Angeles, California 90013 Crescent Hotel: 617 East 5th Street, Los Angeles, California 90013 St. Mark's Hotel: 611 East 5th Street, Los Angeles, California 90013 AUTHORIZE the Controller to increase appropriation in the amount of $10,000,000 in Account No. 43YC87, Skid Row Housing Trust Receivership Properties, within the Low and Moderate Income Housing Fund No. 55J/43 from the Fund’s available cash balance to fund this loan, and expend funds upon written demand of the General Manager, LAHD, or designee. AUTHORIZE the General Manager, LAHD, or designee, to prepare Controller instructions and any necessary technical adjustments consistent with Mayor and City Council actions, subject to the approval of the City Administrative Officer (CAO); and, instruct the Controller to implement the instructions. INSTRUCT the LAHD to report back to the Budget, Finance and Innovation Committee with a projection of total costs and roadmap relevant to the Court-appointed receivership of the Skid Row Housing Trust. INSTRUCT the LAHD to report back every 30 days to the Budget, Finance and Innovation Committee including, and not limited to, the progress of the receivership, funds expended, funds remaining, future expected costs and more. INSTRUCT the Chief Legislative Analyst (CLA), with assistance from the CAO, LAHD, and the City Attorney, to conduct an analysis and report to Council on how the funding is being spent for the conservation of the housing units of the Skid Row Housing Trust, to be completed before any additional funding is requested from Council, with the goal of verifying that the allocated funds were spent in a fiscally prudent and efficient manner. Fiscal Impact Statement: The LAHD reports that there is no impact to the General Fund.  Neither the CAO nor the CLA has completed a financial analysis of this report.