CC RESOLUTION 5454RESOLUTION NO. 5454
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO ADOPTING AN AFFORDABLE HOUSING STRATEGIC
PLAN AFFIRMING THAT AFFORDABLE HOUSING IS A PRIORITY IN
THE CITY OF EL SEGUNDO
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares that:
A. In 2016, the City Council approved a residential development (24 single-family
units and 34 multi -family units) at the former Imperial Street School located at 540
East Imperial Avenue. After this approval, there were several meetings to discuss
the number of multi -family units that might be dedicated as "affordable units." On
Mach 17, 2020, the City Council amended the project's Specific Plan to allow the
developer, DR Horton, to pay an " in -lieu" fee of $5.3 million to the City in place of
dedicating and/or producing future affordable housing units. Before looking to
spend any of the $5.3 million, the City established an Affordable Housing Fund,
and the money was formally established with the adoption of the FY 2020-2021
Citywide Budget and became effective on October 1, 2020.
B. In accordance with California law, the City is required to prepare a Housing
Element for its General Plan every 8 years. The current planning cycle runs from
October 15, 2021, through October 15, 2029, for jurisdictions within the Southern
California Association of Governments ("SCAG") region.
C. The Regional Housing Needs Allocation ("RHNA") for the City of El Segundo for
the period of 2021-2029 indicates that the City has a total housing need of 521
units. From this allocation, the RHNA designates:
1. Among these, 207 units are designated for extremely/very low-income
households (earning less than 30%/50% of the Area Median Income or
"AMI," respectively),
2. 99 units are allocated for low-income households (earning less than 80%
of the AMI)
3. 84 units for moderate -income families with an AMI ranging from 81 % to
120%, not to exceed $105,600; and
4. 131 units for above moderate -income families with an AMI above 120%
D. On February 1, 2022, the City Council initially adopted El Segundo's 6th Cycle
Housing Element, which articulated the City's commitment to adopting an
Affordable Housing Strategic Plan ("AHSP").
1. A public workshop and study session with the City's Planning Commission
was held on March 24, 2022, to provide an opportunity for the Commission
and the public to provide input on the draft AHSP.
2. On June 21, 2022, the City Council was asked to review the draft AHSP
and provide feedback to staff on existing and proposed affordable housing
programs. Feedback was incorporated into the final AHSP
SECTION 2: Findings and Conclusions. The City Council finds as follows regarding the
Affordable Housing Strategic Plan:
A. The Affordable Housing Strategic Plan aligns with the Housing Element of
El Segundo's General to preserve and enhance the community's residential
character, expand housing opportunities for all economic segments, and
provide guidance and direction for local government decision -making in all
matters relating to housing.
B. The policies, programs, and funding opportunities have the potential to
contribute to the City's affordable housing production.
C. The proposed Affordable Housing Strategic Plan clarifies the direction and
prioritization to accelerate affordable housing production in El Segundo.
SECTION 3: Environmental Assessment. Based on the facts set forth in Section 2, and
on the evidence in the record as a whole, the City Council finds and determines that as a
policy document, there is no substantial evidence that the proposed project will have a
significant effect on the environment, cumulative or otherwise. The AHSP provides
direction on facilitating affordable housing by outlining several opportunities categorized
by policy, program, and funding; it does not modify or affect any allowable use or
development standard within the City. Future development will require independent
environmental assessment at time of implementation. Accordingly, adoption of this
Resolution is exempt from further review under the California Environmental Quality Act
("CEQA"), pursuant to CEQA Guidelines § 15061(b)(3), since it can be seen with certainty
that there is no possibility that the activity in question may have a significant effect on the
environment.
SECTION 4: Approval. The City Council adopts and approves the AHSP attached as
Exhibit "A" and incorporated by reference.
SECTION 5: Severability. If any part of this Resolution or its application is deemed invalid
by a court of competent jurisdiction, the City Council intends that such invalidity will not
affect the effectiveness of the remaining provisions or applications and, to this end, the
provisions of this Resolution are severable.
SECTION 6: Signature Authority. The Mayor, or presiding officer, is hereby authorized to
affix his signature to this Resolution signifying its adoption by the City Council of the City
of El Segundo, and the City Clerk, or her duly appointed deputy, is directed to attest
thereto.
RESOLUTION NO. 5454
PAGE 2 of 4
SECTION 7: Effective Date. This Resolution will take effect immediately upon adoption
and will remain effective unless repealed or superseded.
SECTION 8: City Clerk Direction. The City Clerk will certify to the passage and adoption of
this Resolution, enter it in the City's book of original Resolutions, and make a record of this
action in the meeting's minutes.
PASSED, APPROVED AND ADOPTED this 19th day of December 2023.
Drew Ies or
ATTEST;
i Av,
Tracy WeavWr, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Atto
RESOLUTION NO. 5454
PAGE 3 of 4
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
1, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. 5454 was duly passed, approved, and adopted by said City Council, at a
regular meeting of said Council held on the 19th day of December 2023, approved and
signed by the Mayor, and attested to by the City Clerk, by the following vote:
AYES: Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk,
Council Member Giroux, and Council Member Baldino
NOES: None
ABSENT: None
ABSTAIN:. None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of December,
2023.
Tray Weaver, City Clerk
of the City of El Segundo,
California
RESOLUTION NO. 5454
PAGE 4 of 4
CITY OF EL SEGUNDO I Housing Division Adopted December 19, 2023
Summary...................................................................................................... ................................... 2
Background....................................... ............................................. ................................................. 2
Overviewof Affordable Housing ....................................... ............................................................. 3
Benefitsof Affordable Housing ...................................... ............» ....» .............................. ......... 4
Housing -Related Public Outreach and Engagement...................................................................... 4
BusinessCommunity Input ...................................... .................... .. ........................................ 5
HousingEfforts in Progress ..................................................». ........, ...................» ................... 6
AffordableHousing Opportunities................................................................................................. 6
AffordableHousing Priorities ..................» ........... .................... .......................... » ........» ....... » 7
Policy........ .... ................................................................. ........................... ... ...»............. .7
Program...........................»» ........, ...........................».».,.,.............................................. ..»...... 8
Funding............................................................. ......................................................................... 9
Appendix......................................................................................................................................... 13
Result........................................................................»»...... ................................................... 13
1
Summary
The City of El Segundo ("City") is committed to achieving a State -mandated objective of
constructing affordable housing for low- and moderate -income residents, with an estimated 40%
of the population eligible for this housing. On November 15, 2022, the City Council officially
endorsed the Housing Element Update for El Segundo, ultimately accepted by the State
Department of Housing and Community Development (HCD) in January 2023. This document
delineates specific actions that the City may undertake to fulfill these State -imposed housing
targets. The Affordable Housing Strategic Plan ("AHSP") outlines several strategic opportunities in
alignment with the Housing Element, all geared towards advancing the creation of affordable
housing within the City.
Background
The Southern California Association of Governments (SCAG) conducts a comprehensive
assessment of anticipated housing requirements for each city and county in the Southern
California region, a process referred to as the Regional Housing Needs Assessment (RHNA). For
the 6th cycle Housing Element, the City has been assigned a total RHNA obligation of 521 units.
Among these, 207 units are designated for extremely/very low-income households (earning less
than 309/o/50% of the Area Median Income or AMI, respectively), and an additional 99 units are
allocated for low-income households (earning less than 80% of the AMI). It's important to note
that these figures also include a carryover of 29 lower -income units (18 very low and 11 low-
income units) from the 5th cycle Housing Element.
l°`.xtrc I}/very .tamer Income
18
189
207
39.7%
I mw I name-
11
88
99
1 c) 00%
Aiuderaw Income
0
84
84
16.1%
Above Moderate Income
CI
131
131
2 .1"In
Total 29 L 492 521 100.0%
Pate. 11-te Ory has a RIINAaflocationof 2t1+ very late income u its (inclusive of extremely later inco ^ units).
Pursuant to State lave (AB 2634), the City mUSI proicact the nuaTalacr of extremely law income housing rweds based an
Census Inca ne distribution or assume 5 Y% of the: veo, laver income units as extremely law. Assuming an even split,
the Grv's R1INA allocation of 207 %,LTv low income u ks may be divided into 104 veal° law and 103 cxtmmely low
income units. If lowever, for purposes of identifying adequate sites for the R1INA allocation, State law does not
taa.analatc the separate accounting for the extremely law Income carq,01"i%
Includes the 51t' Cycle I lousing I"leirnent shortfall o4 18 extrernely/vm flow and 11 lo%r income units.
Source: Southern C;aiifor Assuciation cif Governments (SC_,kQ, 61h C vcle Final R1INA Allocation Plan, 2021.
Meeting RHNA goals presents a formidable challenge for the City. Currently, there are no deed -
restricted affordable housing units within the City, as defined by Gov. Code § 65583 (A) (8).
Progressing significantly towards achieving RHNA goals is of paramount importance for several
reasons. Firstly, in 2021, HCD established a Housing Accountability Unit (HAU) with the authority
to take escalating enforcement measures to ensure municipalities comply with their RHNA goals
7
if persistent noncompliance is observed. This may involve imposing fines and further revoking
local control over housing decisions.
Additionally, the City's desire to create more affordable housing is driven by the fact that
approximately forty percent of households in the City earn moderate incomes (less than 120% of
the Area Median Income or AMI), with twenty-five percent of households earning lower incomes
(less than 80% of the AMI). Furthermore, 7.8% (1,306) of the City's residents live in poverty, and
7.8% (1,306) are disabled. Yet, housing options for this significant portion of El Segundo's
population are severely limited.
The median sale price of condos, single-family homes, and new homes in El Segundo stands at
approximately $1,466,000, well exceeding the maximum affordable purchase price of $359,325
for households qualifying as moderate income. Naturally occurring affordable housing is scarce
and unreliable, often falling victim to issues such as dilapidation, overcrowding, or marketforces.
These circumstances underscore the need for a thoughtful, coordinated, and a strategic approach
beyond the Housing Element to foster an environment conducive to increasing the supply of
decent, safe, and high -quality affordable housing for all City residents.
Overview of Affordable Housing
Affordable housing is typically defined by the U.S. Department of Housing and Urban
Development as housing in which occupants pay no more than 30 percent of their gross income
for housing costs, including utilities.
The development of affordable housing caters to several "special needs groups" as recognized in
the 2021— 2029 Housing Element of the City's General Plan. These groups encompass:
o Seniors
% Large households
a The Homeless
Military veterans
Farmworkers
Persons with disabilities
Affordable housing units frequently accommodate a diverse range of occupants, including
essential workers, vulnerable young adults, and survivors of domestic violence and human
trafficking.
3
Benefits of Affordable Housing
The advantages of affordable housing extend to:
• Enabling lower -income individuals, seniors, and children to remain in the communities
where they have roots
• Enhancing educational outcomes for lower -income adults and children
• Improving overall health by alleviating overcrowding, enhancing living conditions, and
allowing more disposable income to be allocated to healthcare expenses
• Stimulating local economic activity by creating construction -related employment and
increasing disposable income spent on goods and services
• Enhancing employers' capacity to attract and retain employees, thus maintaining
competitiveness in the global economy
a Reduction in the homeless population results in significant cost savings within public
health and safety systems, such as police and fire departments.
Moreover, affordable housing developments frequently provide a range of on -site services to
residents at no cost. These services may encompass:
• Children's homework tutoring programs
• Children's summer camps
• Life skills workshops covering topics such as financial management, nutrition, and
healthcare
• Job skills workshops
• Supportive services for homeless residents, including case management, mental health
services, and substance abuse treatment services
These services can be offered by the developer and/or partnering organizations, offering
residents opportunities to acquire the knowledge and skills necessary for independent living.
Housing -Related Public Outreach and Engagement
City staff and consultants have implemented multiple outreach initiatives to date with the goal
of gathering community input to shape its housing initiatives. The following is a summary of
outreach activities:
• Community meeting on April 13, 2021
• Development of a City webpage for the Housing Element Update
• Community survey
• YouTube video regarding Housing Element Update
• Social media (Facebook, Twitter, City's website, etc.)
• Postcards to agencies, local businesses, non -profits, & religious facilities
• Notices published in El Segundo Herald on April 8, May 13, & June 10, 2021
4
Joint Planning Commission/City Council meeting on June 14, 2021
Planning Commission review of the Housing Element on September 30, 2021 & January
13, 2022
• City Council review & adoption of the Housing Element on February 1, 2022
• The Housing Element was reviewed and adopted by the City Council on February 1,
2022.
• On March 24, 2022, the Planning Commission held a study session on the Affordable
Housing Strategic Plan.
IIT-0tworSTAIWITIGNMIZI owl
The El Segundo Economic Development Corporation (ESEDC) emphasized the need for increased
housing opportunities, enabling younger professionals to reside within the City. They recognized
that integrating work and life aspects, such as housing, in the same city fosters employee well-
being. The consensus was that more housing is essential for the thriving of the business
community in the City.
5
Housing Efforts in Progress
The Housing Programs outlined in the EI Segundo Housing Element for the 6th Cycle represent a
commendable initial step in addressing the City's unmet housing needs. Notably, three of these
Programs (Programs 3, 5, and 8) have the potential to contribute to the City's affordable housing
production significantly. However, additional efforts are imperative to stimulate the development
of affordable housing, as the Programs outlined in the Housing Element are unlikely to yield a
sufficient number of units to fulfill the City's RHNA goals. Specifically:
The properties identified in the Housing Element's Site Inventory are privatelyowned, and
their owners may not be inclined to sell at a viable price point during this housing cycle„
The City is predominantly developed, and many existing parcels are too diminutive, even
when combined, to be considered viable. This is due to various factors such as rising land
costs, escalating construction expenses, increasing interest rates, and governmental
funding criteria thatfavor large-scale projects. Building more than 30 units, and ideally50
or more units, is imperative for the feasibility of an affordable housing development.
It is highly improbable that market -rate developments will be capable of meeting the
City's RHNA goals on their own, especially regarding very low-income units. To illustrate,
despite being the first apartment project approved in over 30 years and exceeding the
capacity of all other rezoning sites in size, density, and height (e.g., 90 units per acre
compared to the 30/50 units per acre for the rezoning sites), the Pacific Coast Commons
(PCC) project is expected to create 32 affordable housing units of the total 263, including
3 designated for very low-income individuals. Consequently, it would take 3.41 PCC
projects to satisfy the City's low-income RHNA goals and a staggering 69 PCC projects to
meet the very low-income goals.
Affordable Housing Opportunities
The initiatives outlined in this AHSP to promote affordable housing align with, complement, and
execute the Housing Programs outlined in the City's Housing Element Update, originally adopted
on February 1, 2022, by the City Council. This AHSP also aligns with the Housing Goals and Policies
articulated in the Housing Element to fulfill the City's RHNA affordable housing production goals.
The following are five strategic goals that guide the 2021-2029 Housing Element:
Goal 1: Preserve and protect the existing housing stock by encouraging the rehabilitation
of deteriorating dwelling units and the conservation of the currently sound housing
stock.
Goal 2: Provide sufficient new, affordable housing opportunities in the City to meet the
needs of groups with special requirements, including the needs of lower and moderate-
0
income households.
Goal 3: Provide opportunities for new housing construction in a variety of locations and
a variety of densities.
Goal 4: Remove Governmental constraints on housing development.
Goal 5: Provide housing opportunities including ownership and rental, fair -market and
assisted, in conformance with open housing policies and free of discriminatory
practices.
While all policy, program, and funding strategies will be studied for future implementation to
spearhead affordable housing developments, the City has selected four primary strategies (in
bold below) to prioritize efforts toward meeting RHNA goals.
Research Design
The following methodology was used to select the affordable housing strategies prioritization:
A total of ten policies, programs, and funding strategies were created to encourage the
creation of affordable housing within the City of El Segundo and further implement
housing element goals.
All council members were given a list with a description of all the strategies and then asked
to independently recommend one policy, two programs, and one funding strategy to
prioritize.
Council members' preferences are shown anonymously as provided in the Appendix.
w Strategies with the highest choice are given preference for implementation,
The proposed services and programs support the core vision of what the Housing Element hopes
to accomplish by reducing the displacement of lower -income households, expanding affordable
housing opportunities, and conserving existing housing stock affordable to lower -income
households. These opportunities are categorized by policy, program, and funding. The strategies
highlighted in bold were selected as the Council Member's Affordable Housing Strategies
prioritization.
R
7
Live/Work Preference Policy
Codify that part of the affordable housing agreement (including, but not limited to, a
Development Agreement, or Density Bonus Agreement) includes a local priority
preference for people who live or work in El Segundo when applying for new
affordable housing rental units
Remedy or mitigate the displacement and gentrification impacts that may result
from development activities
Long-lasting Affordable Homes Policy
o Currently, most affordability restrictions are placed for 30 or 55 years, after which
time those units return to market rate
It is recommended that any new pro -housing policies or development agreements
include language restricting the affordable units in perpetuity.
Waiver or Deferment of Fees for Affordable Homes Policy
Alleviate cost burden for affordable housing developers
Improve the competitiveness of certain affordable housing funding sources
Program Strategies
Helping Affordable Housing Grow Program
Give money to developers building affordable homes
Buy land and encourage developers to build affordable homes there
• Pay developers or homeowners to keep homes affordable
Restructuring Park Vista for Housing Credits Program
• Refinance using a government funding source that will deed -restrict the property as
low-income housing
Park Vista will be subject to a Land Use Regulatory Agreement (LURA) that is
recorded against the property and establishes the affordability for RHNA credit
Keep current residents, no rent increase
Affordable Housing Focus Area Program
Community survey shows residents want affordable housing in high -resource areas:
o Smoky Hollow
o West side of PCH between Imperial and El Segundo Blvd
o E. Imperial Ave.
o Downtown El Segundo
These areas are competitive for tax-exempt bonds and low-income tax credits to
build affordable housing because of the proximity to amenities
Workforce Housing in Smoky Hollow
Downtown Homes for Young Professionals to Work, Live, and Play Program
0
Integrate work/life in the downtown area by developing more housing opportunities
and cooperating with El Segundo Development Corporation and the City's Economic
Development staff to attract younger professionals
Funding Strategies
Charge fees and other in -lieu fees for new developments
Commercial Linkage Fees may be charged to developers of new, non-residential
buildings including office, retail, industrial, and manufacturing facilities to generate
revenue for the City's Affordable Housing Fund
In -lieu fees, such as the in -lieu fee of $5.3 million charged by the City in 2017 to the
developer of a former school site who ultimately did not provide 6 affordable units in
accordance with the permits issued for the project
Enhanced Infrastructure Financing Districts (EIFDs)
Financed through increased property tax within designated boundaries
I. Freeze the property tax revenues that flow from a designated project area to the
city at the "base level"
Additional tax revenue in future years is diverted into a separate pool of money
for affordable housing
All housing that is developed must be affordable
Local Trust Fund for Affordable Housing
Apply to State's Local Housing Trust Fund Program
Match funds to local housing trust funds dedicated to the creation of affordable
housing
These opportunities are categorized by policy, program, and funding. To guide plan
implementation, the strategies highlighted in bold were identified as the short-term priorities.
•• •"Catego
!me/
TASKPROJECT DESCRIPTION M
Policy
Live/Work •Codify that part of the affordable housing
Preference agreement (including, but not limited to, a
Development Agreement, or Density Bonus
Agreement) includes a local priority preference for
people who live or work in El Segundo when
applying for new affordable housing rental units
7deemspolicy
1-5 years
2. Text
Amendment
Policy
Long-lasting
*Currently, most affordability restrictions are placed
Affordable
for 30 or 55 years, after which time those units
Homes
return to market rate
* It is recommended that any new pro -housing
policies or development agreements include
language restricting the affordable units in
perpetuity.
Policy
Waiver or
*Alleviate cost burden for affordable housing
Deferment of
developers
Fees for
*Improve the competitiveness of certain affordable
Affordable
housing funding sources
i
Homes
Program
Affordable
*Community survey shows residents want
Housing Focus
affordable housing in high -resource areas:
Area
o Smoky Hollow
o West side of PCH between Imperial and El
Segundo Blvd
o E. Imperial Ave.
o Downtown El Segundo
*These areas are competitive fortax-exempt bonds
and low-income tax credits to build affordable
housing because of the proximity to amenities
*Workforce Housing in Smoky Hollow
Program
Downtown
*Integrate work/life in the downtown area by
Homes for
developing more housing opportunities and
Young
cooperating with El Segundo Development
Professionals
Corporation and the City's Economic Development
to Work, Live,
staff to attract younger professionals
and Play
1. Text 5-10 years
Amendment
1. City
Council
approval
2. Create a
"No Fee"
Permit
Ordinance
5-10 years
1. Rezone I I 1-5 years
any
necessary
sites to allow
for housing
1. Adopt the 1-5 years
Downtown
Specific Plan
10
Program
Helping
wGive money to developers building affordable
Affordable
homes
Housing Grow
*Buy land and encourage developers to build
affordable homes there
• Pay developers or homeowners to keep homes
affordable
Program
Restructuring
• Refinance using a government funding source that
Park Vista for
will deed -restrict the property as low-income
Housing Credits
housing
• Park Vista will be subject to a Land Use Regulatory
Agreement (LURA) that is recorded against the
property and establishes the affordability for RHNA
credit
+Keep current residents, no rent increase
1. The
adopted city
budget
includes
matching
fundsfor
affordable
housing
2. Submit
grant
application(s)
3. Receive
funding
1. Refinance
PV
Funding
Local Trust
•Apply to State's Local Housing Trust Fund Program
1. Budget
Fund for
# Match funds to local housing trust funds dedicated
Housing Fund
Affordable
to the creation of affordable housing
Housing
Funding
Charge fees
*Commercial Linkage Fees may be charged to
1. Adopt text
and other in-
developers of new, non-residential buildings
amendment
lieu fees for
including office, retail, industrial, and manufacturing
2. Update fee
new
facilities to generate revenue forthe City's
schedule
developments
Affordable Housing Fund
• In -lieu fees, such as the in -lieu fee of $5.3 million
charged by the City in 2017 to the developer of a
former school site who ultimately did not provide 6
affordable units in accordance with the permits
issued for the project
5-10 years
5-10 years
1-5 years
5-10 years
11
Funding Enhanced *Financed through increased property tax within
Infrastructure designated boundaries
Financing I. Freeze the property tax revenues that flow from a
Districts (EIFDs) designated project area to the city at the "base
level"
II. Additional tax revenue in future years is diverted
into a separate pool of moneyforaffordable housing
*All housing that is developed must be affordable
1. Establish 5-10 years
EIFD
12
Appendix
Prioritization Result
The below displays each council member's selection. The results are as follows: Live/Work
Preference, an Affordable Housing Focus Area, Downtown Homes for Young Professionals, and a
Local Trust Fund for Affordable Housing strategy.
Policy
Live/Work Preference
•
•
Long-lasting Affordable Housing
Waiver or Deferment of Fees for Affordable
Housing
Program
Helping Affordable Housing Grow
Restructuring Park Vista for Housing Credits
Affordable Housing Focus Area
•
•
•
•
Downtown Homes for Young Professionals
•
Funding
Charge Fees and Other In -Lieu Fees for New
Developments
•
Enhanced Infrastructure Financing Districts
Local Trust Fund for Affordable Housing
•
•
13