City Council

(4) 25-0690-S1 HOUSING COMMITTEE REPORT relative to authority to release the Homes for LA (H4LA) Round 2 Notice of Funding Availability (NOFA) regulations and open the 2026 NOFA. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. AUTHORIZE the General Manager, Housing Department (LAHD), or designee, to: a. Release the LAHD H4LA: 2026 Affordable Housing NOFA Program Regulations and Term Sheets, attached to the LAHD report dated August 17, 2026, in substantially final form (Attachments A through J) and subject to the approval of the City Attorney as to form, based on availability of funds allocated in California Permanent Local Housing Allocation (SB2) grant funds, Affordable Housing Linkage Fee Funds (AHLF), United to House Los Angeles (ULA) Program funds, and Los Angeles County Affordable Housing Solutions Agency (LACAHSA) Program funds, up to a total amount of $466,575,674.71. b. Recommend project funding awards based on the approved H4LA NOFA regulations and term sheets, and to present such recommendations to the City Council and Mayor for approval. 2. APPROVE the enclosed ULA Program Guidelines, attached to the LAHD report dated August 17, 2026, (Attachments 3 and 4) amending and replacing the Program Guidelines for the ULA Alternative Models for Permanently Affordable Housing Program and the ULA Operating Assistance Program, respectively. 3. AMEND the Limit in Attachment G - Term Sheet - Portfolio Preservation Program, on page 5 (overall page 207 of the LAHD report dated August 17, 2026) from: "The maximum loan limit is up to $9,000,000, with up to $2,500,000 for a Portfolio Preservation Fee" to: "The maximum loan amount will be $30,000 per unit not to exceed $9,000,000, with up to $4,500 per unit not to exceed $2,500,000 for a Portfolio Preservation Fee". 4. INSTRUCT the LAHD to: a. Report to the Housing Committee on a quarterly basis on the status and implementation of the H4LA Round 2 NOFA, including the status of the solicitation and evaluation process; funding awarded and expended by program; the number of projects and units awarded, under contract, and proceeding toward construction or preservation; anticipated project timelines; and any significant delays, challenges, or changes to program implementation. b. Utilize popular education models on the LAHD website to explain the differences between these programs in order to increase access to and understanding of the technical specifics and differences by people intending to apply. Fiscal Impact Statement: The LAHD reports that there is no impact to the General Fund. The recommendations in this report will authorize LAHD to solicit applications utilizing set-asides of various Special Funds. Neither the City Administrative Officer nor the Chief Legislative Analyst has completed a financial analysis of this report.