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COUNCILMEMBER MITCH O’FARRELL LOS ANGELES CITY JNCIL,13TH DISTRICT Homelessness and the lack of access to services and affordable housing is the most serious crisis facing the Ci. The City is the most unaffordable housing market in the country, and it is estimated that there are nearly 28,000 homeless people in the City. As the elected representative of the 13th District, Mitch committed from day one that he would work to combat homelessness using a three-pronged approach @ Protecting Tenants & Preserving Our Rent Stabilized Units © Working to Increase Our Supply of Affordable Housing © Providing Access to Services and Permanent Supportive Housing HOUSING The United States Deparment of Housing and Urban Development defines “affordable housing” as housing that costs no more than 30 percent of a family’s gross income. Most Angelenos work hard everday and yet many struggle to find access to affordable housing making it difficult to provide basic needs for them and their families. Unfortunately, Los Angeles is now ranked as the most unaffordable city in the country, with over 60% of tenants paying more than 30% of their household income for rent and over 30% of tenants severely rent-burdened, paying more than 50% of their income for rent PROTECTING TENANTS & PRESERVING OUR RENT STABILIZED UNITS Mitch believes thot one of our top priorities in the City must be to preserve our older housing stock and protect our existing tenants, In the City, most multi-family residential units constructed on or before October 1, 1978 are subject fo the Rent Stabilization Ordinance (RS) which requires that the properly be registered with the Housing and Community Investment Department {HCIO) ‘and caps annual rent increases - eneraly to about no more than 3% a ear. The RSO is also intended to protect tenants from legal evictions, provide additional time Sse ili eyo pe pe ipl pt ea Alhough RSO units ore not covenanied “oflordable® units fmegning they do nol have a deed restriction that regulates ren\), they do provide de facto affordable housing for many of our residents because the units ‘ore older, generally below market rate and subject to rent stabilization. These units provide o home to many long-term tenants, especially the elderly. Because of this, there is a very low vacancy rate (roughly 3%) and it can be extremely dificult fo find an RSO unit if tenon! is evicted, This is a big problem because the difference between the rent for an RSO unit and newer units not subject fo rent stabilization is vast. Another problem is, that.o tenant may not be able fo pay for annua rent increases which ore not regulated by the R Although the Ellis Act is a provision in State low thot allows landlords to legally take RSO units out of the rental morket in certain circumstances and the City must comply with State law, Mitch believes that we need to do better at the local level,to strengthen our law and protect tenants from bad-oith-evictions ond preserve our RSO stock. Since Mitch took office, here are a number cof ways.he has worked to address tenant displacement and preserve our RSO units. @ © @MITCHOFARRELL @ www HOMELESSNESS 6 AFFORDABLE HOUSING | wCOI | SUPPORTING STATE LEGISLATION TO STRENGTHEN TENANT'S RIGHTS - In 2016, Mitch introduced resolutions supporting two State bills that would (a) authorize the legislative body of any city or county to establish, os a condition of development, inclusionary housing requirements (mandatory affordable housing) and (b) under an Elis Act eviction, provide a one year notice requirement to families who have children enrolled in primary or secondary school. CLOSING RELOCATION ASSISTANCE LOOPHOLES - While financial relocation assistance is required in most cases, there is an exemption to this requirement if the tenant received written notice, prior to entering into o writien or oral tenancy agreement, that an application to subdivide the property for condominium, stock cooperative or community apartment purposes wos on file with the City or had already been approved. When apprised of this loophole, Mitch immediately requested the City Altorney and HCID. to close potential loopholes that allow developers fo circumvent the payment of relocation assistance. REQUEST ANALYSIS OF DEVELOPMENT PROPOSALS ON RSO INVENTORY - In June 2016, Mitch joined his colleague Councilmember Huizar in instructing the Planning Department to include statement in its deparimental reports each time @ project is considered by the Planning & Land Use Management Committee which removes Rent Stabilization Ordinance (RSO) units, and which delineates how it impacts the City's RSO inventory. Mitch strongly believes that the community and City Council need a comprehensive view of a proposed project so that they can fully weigh its impacts DENOUNCING PROJECTS THAT DISPLACE TENANTS - The first question that Mitch always asks of a property owner when presented with a project is: Are there existing tenants that will be displaced? If the answer is yes, his onswer is no. Ifa project includes displacing tenants in an RSO building, Mitch sees it as 0 deal breaker, period TENANT BUYOUT NOTIFICATION ORDINANCE - In December of 2016, Mitch and his colleagues approved a significant change to the rent stabilization ordinance to establish the “tenant buyout notification program.” This program will protect tenants from developers trying to circumvent requirements that require @ landlord to pay tenants relocation assistance and fully inform tenants of their rights. Historically, many renters have not realized that they're not required to sign the buyout agreements -- which is a writen agreement where a landlord pays a tenant money or other consideration to “voluntarily” vacate can RSO unit. In fact, under this “cash for keys" practice, tenants can offen get much more money and time {0 vacate if they wait for landlords to formally file with the city) to remove their units from the rentol market. This process kicks in protections under the State's Ellis Act, which allows tenants to stay longer, depending on their age and triggers relocation payments that range from roughly $7,000 to $20,000, based on the length of tenancy, age and any disabilities. The tenant buyout nofification program that Mitch approved will help to ensure that tenants are fully advised oftheir rights when dealing with buyout offers and agreements between a tenant and his or her landlord ‘WORKING TO INCREASE OUR SUPPLY OF AFFORDABLE HOUSING While RSO units provide a more affordable type of housing option for our residents, “affordable” housing refers to housing with a specific rent restriction. Each year, the State publishes the median family income of «a geogrophic region known as the “Area Median Income” (AMI). In 2016, the AMI for Los Angeles ranged between $62,400 - $64,800. A tenant whose income is 80% or less than the AMI is considered “low” income. A tenant whose income is 50% or less than the AMI is considered “very low” income and a tenant whose income is 30% or less than AM is considered “extremely low” income. When a property owner has received a land use concession from the Ciy or is subject to a Ciy ordinance or law that requires on affordable housing set-aside, the City requires the owner to record @ covenant that restricts the rent level of the unit. The covenant obligctes an owner to designate a specified number and type of dwelling units for occupancy by very low, low, or moderate income households, usually for a term of 30 - 55 years. Unlike RSO units, the percentage of income paid towards rent cannot change for the duration of the agreement even when an existing tenant moves out and a new tenant moves in. 1B a HOMELESSNESS 6 AFFORDABLE HOUSING wD Since Mitch took office, here are a number of ways he has worked to increase our covenanted affordable housing stock, VALUE CAPTURE/MEASURE JJJ - In September 2014, Mitch saw a lost opportunity to increase the City’s supply of affordable housing and requested the Planning Department move forward with a value capture policy that would establish a mandatory set aside of covenanted affordable units whenever a developer requested a zone change, general plan amendment or variance in lieu of case-by-case negotiations. Mitch was the trailblazer for this policy which became a key part of Measure dW ‘and wos passed with nearly a 64% vote in November 2016. Although, the City is limited to what types of amendments it can make to JU (any honaes would have to go back to the voters), Mitch is arr to seeing if there is an opportunity to build off of and improve the value capture component J. NEW AFFORDABLE HOUSING UNITS - Most property owners that come in to meet with Mitch about a proposed project know that one of the first things he is going to stress is the importance of affordable Housing’ Mitch works tirelessly to mandate that proieds that come before City Counc incorporate affordable housing on-site and that the units be covenanted for at least 55 years! AFFORDABLE HOUSING TRUST FUND - In addition to negotiating onsite affordable units, Mitch sometimes negotiates payment into the CD 13 Affordable Housing Trust Fund - a subaccount of the City’s Affordable Housing Trust Fund. This fund provides low interest loans to affordable housing developers. Between 2014-2016, this fund has helped hundreds of covenanted affordable units come to fruition in Council District 13! ENHANCED INFRASTRUCTURE FINANCING DISTRICT - In October 2014, Mitch began work fo establish the City's first Enhanced Infrastructure Financing District (EIFD) for the Los Angeles River. This groundbreaking opportunity would enable the district to capture revenue from the annual incremental increases in property toxes that the County already collects. Over the course of 5 to 10 years, this could generate a dedicated revenue stream for the LA. River up to $50 to $90 million dollars which could be used for public works/iransit projects, infill development, affordable housing and park space projects. HOLLYWOOD COMMUNITY PLAN UPDATE (HCPU) - Mitch is committed to tying additional development rights proposed in the HCPU to the provision of affordable housing so that as new housing units come online we ensure that we are building mixed income communities that preserve our diversity and build stronger, better neighborhoods. PUBLIC PRIVATE PARTNERSHIPS - Mitch believes that the City has a role in lending one of its most important assets - land - to increase our affordable housing supply. To this end, Mitch commited to redeveloping a City-owned public parking lot in Hollywood into a vibrant mixed-use development, replacing the existing parking spaces while providing ample affordable housing, Affer a robust public process, Mitch and fis colleagues selected The Actors Fund and Thomas Safran & Associates as the development team to create The Hollywood Arts Collective, a $35-million vibrant, new mixed-use, affordable and market-rate housing community intended for artists. The development, to be built on Hollywood Boulevard between Schrader Boulevard and Wilcox Avenue, will also provide a reinvigorated home for local non-profit arts organizations to support Hollywood as an accessible arts and entertainment district. ARRELL HOMELESSNESS 6 AFFORDABLE HOUSING | wCOI | HOMELESSNESS PROVIDING ACCESS TO SERVICES AND PERMANENT SUPPORTIVE HOUSING Current estimates show that there are 28,000 homeless living in the City. This is the number one issue that Mitch and his team hear about. While this can be a polarizing issue, Mitch firmly believes that the City has an obligation to provide services and access to affordable, supportive housing. Below are a few highlights that show how Mitch is tackling this complicated issue around the district. PEOPLE ASSISTING THE HOMELESS (PATH) - Since Mitch took office, he has contracted with PATH to outreach to the homeless three times a week. PATH works to provide the homeless with access to facilities, shelters and permanent or transitional housing. COMMUNITY PARTNERS - Mitch and his team love to connect our community partners working to. address our homeless crisis. By introducing local Cte partners such as Covenant House - one of the largest privately-funded child care agencies in the U.S. that provide services to homeless and runaway youth - to our local business community, Mitch has been able to establish relationships that have resulted in job training and employment. When given access to support and a second chance, many of these youth have been able fo permanently get off of the streets and build a better life. MEASURE HHH - Mich supported Measure HHH - which voters overwhelmingly approved in November 2016, authorizing the issuance of up to $1.2 billion in bonds to pay for the construction of an estimated 10,000 units of permanent supportive housing, with wrap around services. ‘COMPREHENSIVE HOMELESS STRATEGY - In addition to the initiatives above, Mitch and his colleagues supported the Comprehensive Homeless Strategy which is a detailed approach fo address homelessness with shared responsibilities between the City and County. The table below shows the housing and homelessness policies that Mitch has initioted since taking office in July 2013. ‘AMfordable Housing | Requesting the HCID, Planning, CAO, CLA to develop policy intiatves that would | 13-1624 encourage the development of affordable housing, permanent supportive housing, senior housing, workforce housing, veterans housing, etc. Further request that the report include possible sources for permanent funding fo suppor the development of affordable housing, Policy/Incentives for Development Boomerang Funds | Requesting HCID, CLA and CAO to report on a policy thal would earmark a percent of | 14-132 for Affordable the tax revenue the City receive from the dissolution ofthe former CRA forthe Affordable Housing Trust Fund | Housing Trust Fund Value Capture | Requesting Planning and HCID report on the feosibiliy of implementing @ volve capivre | 14.1325 Policy policy that would establish o nexus between discretionary land use entilements ond «affordable housing, Further insrucs that the repor include recommendations aimed at reducing costs associated wih housing production. Enhanced (On September 29, 2014, Govemor Brown, signed $B 628 (Beall to law regording the | 14-1349 Infrosructure formation of Enhanced Infasrucure Finoncing Discs (EFD). Tis new law will alow cies to Financing District | eo EID to raise the necessary copil fo invest in pubic works/ranst projec, infil Se