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CC RESOLUTION 5548RESOLUTION NO. 5548 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO ADOPTING A LIVEIWORK PREFERENCE POLICY FOR NEW CITY ASSISTED AFFORDABLE HOUSING 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 accordance with California law, the City of El Segundo ("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"). B. On February 1, 2022, the City Council initially adopted El Segundo's 6t" Cycle Housing Element, which articulated the City's commitment to adopting an Affordable Housing Strategic Plan ("AHSP"). C. On December 19, 2023, the City adopted its AHSP, which includes a total of ten policies, programs, and funding strategies created to encourage the creation of affordable housing within the city and further implement housing element goals. D. The City Council prioritized the establishment of a Live/Work Preference Policy ("Policy") in the AHSP, which would require that affordable housing agreements for new affordable housing rental units provide local priority preference for applicants who live or work in El Segundo. The Policy's intent is to remedy or mitigate the displacement and gentrification impacts that may result from development activities. E. During the January 23, 2025, Planning Commission meeting, staff and RSG held an affordable housing strategic plan study session in which they presented potential funding opportunities identified to date to help subsidize the costs of affordable housing development and presented considerations for the development of an affordable housing local preference policy to further support the City's housing objectives. The Commissioners asked staff to look further into a tenant preference policy. F. On April 24, 2025, Planning Commission meeting, staff and RSG held a public hearing for the consideration of a Live/Work Preference Policy for new affordable housing projects in the City of El Segundo and the Planning Commission by City staff adopted Resolution No. 2964, recommending City Council adopt a Live/Work Preference Policy for new city -assisted affordable housing projects in the City of El Segundo. G. On June 3, 2025, the City Council held a public hearing and considered the information provided by City staff and public testimony regarding this resolution; and H. The City Council seeks to adopt this Resolution to implement the Policy. SECTION 2: Actions. The City Council adopt the Policy attached hereto as Exhibit "A," which is incorporated by this reference. SECTION 3: Environmental Assessment. Based on the facts set forth in Section 2, the City Council finds that the zone text amendment is exempt from further review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. SECTION 4: 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 5: 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. SECTION 6: Effective Date. This Resolution will take effect immediately upon adoption and will remain effective unless repealed or superseded. SECTION 7: 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. PASS, APPROVED AND ADOPTED this 3rd day June 2025. r—, P" -/�� 11� - k Pimentel, Mayor APPROVED AS TO FORM:. ( — -- f' o r Mark D. Nnsley, City Attorney CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Susan Truax, 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. 5548 was duly passed, approved, and adopted by said City Council at a regular meeting held on the 3rd day of June, 2025, approved and signed by the Mayor, and attested to by the City Clerk, by the following vote: AYES: Mayor Pro Tern Baldino, Council Member Boyles, Council Member Giroux and Council Member Keldorf NOES: Mayor Pimentel ABSENT: None ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 31d day of June, 2025, usan Tr x, City Clerk of the City o EI Segundo, California a CITY OF EL SEGUNDO LIVE/WORK PREFERENCE POLICY Exhibit "A" Live/Work Preference Policy for New Affordable Housing in the City of El Segundo Definitions A. "Affordable Housing" shall mean deed -restricted residential property where the rent is limited to no more than affordable rent, as such term is defined in California Health & Safety Code Section 50053, for low- and moderate -income households whose gross income does not exceed 120 percent of the Area Median Income ("AMI") for the Los Angeles county, adjusted for family size. B. "City -Assisted Affordable Housing Project" shall mean Affordable Housing that receives financing or ground lease property interest from the City of El Segundo for new construction or acquisition rehabilitation; or is required to provide Affordable Housing under a development agreement with the City of El Segundo. C. "Owner" shall mean any person or entity having a legal right of ownership or rights under a ground lease in real property, or entities responsible for the management and leasing of the property to residential tenants. D. "Preference Units" shall mean units within a City -Assisted Affordable Housing Project that are subject to preference requirements set forth in this Policy. ll. Tenant Preferences A. Owners of a City -Assisted Affordable Housing Project shall give preference in occupying or renting a percentage of their units. The preferences shall apply to 20% of the deed -restricted affordable rental units not otherwise designated for a set -aside population. Preference requirements for the Preference Units shall be required at initial lease -up and continuing thereafter throughout the term of the affordability restriction. B. Owners of a City -Assisted Affordable Housing Project shall give preference to the following applicant households to the maximum extent allowed by law: Applicants with at least one household member whose primary place of residence is in El Segundo. ii. Applicants with at least one household member who works or who has received and accepted a bona fide offer of employment within El Segundo. III. Implementation A. Affordable housing agreements for City -Assisted Affordable Housing Projects, including, but not limited to, a Development Agreement or Density Bonus Agreement, entered into with the Owner shall contain preference provisions consistent with this Policy. B. The Owner of a City -Assisted Affordable Housing Project shall be responsible for the initial and continuous implementation of the Policy throughout the term of the affordability restriction, including the following: The Owner shall incorporate information about the Policy in marketing materials for the City -Assisted Affordable Housing Project, including documentation required by the Owner to qualify eligible applicants for the Preference Units. The marketing materials must not exclude individuals based upon their citizenship status (unless otherwise prohibited based upon funding source) and must allow alternative forms of documentation that establishes their residency and income. ii. The Owner shall maintain a list of applicants who have filed a complete application for the Preference Units and who have incomes which would qualify them as an eligible tenant. iii. The Owner shall determine eligibility for the preferences established by the Policy and offer to Preference Units in accordance with requirements set forth in the Policy. If multiple tenants are equally eligible and qualified to rent a Preference Unit, the Owner shall implement a lottery system based on the preference provisions consistent with this Policy to eligible Applicants. IV. Limitations A. This Policy shall be applied only if and to the extent that other funding sources for the project do not prohibit the preference. B. This Policy shall be applied only if and to the extent that the program does not violate federal and state fair housing law. 2