City Council

(22)\n24-0544\nHOUSING AND HOMELESSNESS and PERSONNEL AND HIRING\nCOMMITTEES’ REPORT relative to a Middle-Income Affordable\nHousing Pilot Program, and related matters.\nRecommendation for Council action:\nADOPT the following in lieu of the recommendations listed in the\nOctober 20, 2025 Los Angeles Housing Department (LAHD) report:\n1. AUTHORIZE the General Manager, LAHD, or designee, to\namend the Affordable Housing Bond Policies and\nProcedures approved by City Council in August of 2019 to\nallow for the creation of a Middle-Income Pilot Program to\noperate within the boundaries of the City of Los Angeles\nthat could utilize partnership with a conduit issuer to issue\ngovernmental bonds for the purpose to develop, acquire,\nand operate real property assets; and to impose\ncovenants or regulatory agreements limiting the\noccupancy of housing units in such properties to families\nwith incomes between 50% and 120% of the area median\nincome for Los Angeles County, to be leased at affordable\nrental rates to such families with rents capped at 4 percent\nannually.\n2. INSTRUCT the LAHD to address the following when the\nBond Guidelines are amended and to submit the Conduit\nIssuer Bond Guidelines to the City Council for approval\nbefore any bond is issued:\n​\na. To issue, the bond, the City will have no liability\nb. That Possessory Interest tax will not ever\nbecome the responsibility of the tenant or the\nCity but will be the responsibility of the\ndeveloper should it be required.\nc. That future potential property taxes are offset\nby other taxes and tenant savings\nd. Construction completion will be protected by\nperformance bonds, insurance and completion\nreserves.\n3. DIRECT the LAHD to report back with the value of\npotential loss of tax revenue, if any.\n4. INSTRUCT the LAHD to report back within 30 days on the\nparameters of the Los Angeles County Affordable Housing\nSolutions Agency social bond program and how it\ninterrelates to the creation of a City-led Middle-Income\nPilot Program.\n5. INSTRUCT the LAHD to report back during the FY2026-\n27 Budget process on staffing needs for this pilot program.\nFiscal Impact Statement: The LAHD reports that there is no General\nFund impact for the requested position, Financial Development Officer\nII, to develop the expertise to manage the pilot program, select\npartnership entities, and monitor investments. The cost of this position\nis $178,538.65 to be paid from the Municipal Housing Finance Fund\nNo. 815. These middle-income projects are exempt from property\ntaxes and could potentially replace other developments that would\ncontribute property tax revenue. In 2024, property tax revenue\nrepresented 34.64% of total revenue for the City’s General Fund.