2025-06-03 CC Agenda Packet - ITEM D13 - Live-Work Preference PolicyCITY OF
ELSE GUNDO
Live / Work Preference
Policy
City of El Segundo —Affordable Housing Strategy
RSG I June 2025
Proposed Policy
• The City's Affordable Housing Strategic Plan prioritizes a
LiveMork Preference Policy with the following goals:
• Codify that part of an affordable housing agreement (incl. a DDA,
density bonus agreement, etc.) include 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
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City of El Segundo 1 350 Main St. El Segundo, CA 90245
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ELSEGUNDO
Policy Background
• The U.S. Housing and Urban Development Department ("HUD")
permits jurisdictions to establish tenant preference policies that
prioritize applicants based on specific criteria, provided such
policies comply with federal civil rights and fair housing laws
• In other words, the City must ensure that policies or practices
do not have a discriminatory effect on federally protected
groups, even if there is no explicit discriminatory intent
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City of El Segundo 1 350 Main St. El Segundo, CA 90245
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EL�,EGUtiDO
Progress to Date
• Staff, in coordination with RSG, has taken the following actions
to design the proposed policy:
• Reviewed existing demographic conditions and housing prices within
the City
• Conducted an analysis of applicable fair housing laws and reviewed
relevant case law
6/3/25
• Reviewed comparable tenant preference policies
• Incorporated comments from the Planning Commission on the draft
Preference Policy
City of El Segundo 1 350 Main St. El Segundo, CA 90245
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EXISTING DEMOGRAPHIC
CONDITIONS
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Renter vs. Owner Occupied Housing
Units
60 %
50 %
40%
30 %
20%
10%
0%
Owner -Occupied Renter -Occupied
Los Angeles County ElSegundo
Source: ACS Census Bureau (2023 5-Year Estimates)
Li„ ;tcck Nuo
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Median Household Income
35%
30 %
25%
20 %
15%
10%
5%
0%
LA County Median Income: $86,587
El Segundo Median Income: $149,149
Less than $SO 0 $S0 000 to $99 9 100 000 to $14$1 S0 000 to $19$200 000 Or rnor
00 9g 9 999 9 999 e
Los Angeles County F El Segundo
Source: ACS Census Bureau (2023 5-Year Estimates)
EL;•;EGG VDU
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Percentage of Rent -Burdened
Households
60% - -
55%
50%
40 %
30 %
20 %
10%
0%
Rent -Burdened Severely Rent -Burdened
Los Angeles County ElSegundo
Note: Rent -burdened households refer to households in which rent exceeds 30% income earned. Severely rent -burdened households refer
to households in which rent exceeds 50% income earned.
Source: ACS Census Bureau (2023 5-Year Estimates)
EL;}EGl':V UU
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RELEVANT FAIR HOUSING AND CASE
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Relevant Fair Housing and Case Law
• Disparate impact claims may be brought against policies or
practices that disproportionately affect members of federally
protected classes, particularly when the impact contributes to,
reinforces, or perpetuates patterns of residential segregation
• Relevant Case Law
• New York City
• San Francisco
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COMPARABLE POLICIES
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Comparable Policies
• Staff, in coordination with RSG, identified three key policy
components that varied across jurisdictions and warranted
tailored consideration by the Planning Commission:
1. Tenant Eligibility Requirements
2. Property Applicability
3. Unit Proportion
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ELSEGUYDO
PLANNING COMMISSION DIRECTION
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Planning Commission Direction
• The Planning Commission requested Staff incorporate the
following policy components:
1. Tenant Eligibility Requirements: Local residents and local employees,
including preferences based on specific employment criteria*
2. Property Applicability: City -assisted affordable housing projects
throughout the term of the affordability restriction
3. Unit Proportion: 15% of units
*The Planning Commission also requested the City Council consider an
alternative option in which additional employment criteria is omitted from
the policy
ELSEGUNDO
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PROPOSED POLICY
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Proposed Policy
• Applicant Preferences
• Local Residency: Preference is given to applicants with at least one household
member who lives in El Segundo
• Local Employment: Applicants with at least one household member who works or
who has received and accepted a bona fide offer of employment within El
Segundo
• Additional preference is given within the local employment preference:
• Employees of the City of El Segundo, including but not limited to, public safety
personnel such as law enforcement, firefighters, emergency medical technicians, and
paramedics
• Employees of a school district
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Proposed Policy (cont.)
• Property Applicability
• City -assisted affordable housing projects in which preferences apply
both at the initial lease -up and throughout the term of the affordability
restriction
• Unit Proportion
• 15% of the deed -restricted affordable rental units must prioritize these
applicants
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Proposed Policy (cont.)
• Policy Implementation
• Affordable housing agreements must include provisions for the
preferences
• The project owner is responsible for enforcing this policy throughout
the affordability period, including:
• Marketing the preference units with eligibility criteria
• Maintaining a list of eligible applicants and ensuring compliance with preference
requirements
• Offering Preference Units based on a lottery system if multiple applicants are
equally eligible
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Proposed Policy (cont.)
• Policy limitations
• This policy applies only when other funding sources or regulations don't prohibit
it.
• It must comply with federal and state fair housing laws.
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Alternative Policy Options
• The City Council may consider alternative language for Section
(11)(B) of the proposed Live/Work Policy ("Exhibit B"), which
omits additional preference for public service employees
• Alternatively, the Council may choose to retain the preference
for public service employees as outlined in the proposed policy
("Exhibit A")
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City of El Segundo 1 350 Main St. El Segundo, CA90245
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EESEGIINDO
Requested Council Direction
1. Consider the adoption of the proposed policy as approved by
the Planning Commission (with additional preferences for
public service employees)
a. Alternatively, adopt the policy without the additional preferences for
public service employees
2. Do not approve the policy and/or provide staff other direction.
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