Los Angeles Housing Department report relative to a Middle-Income Affordable Housing Pilot Program, and related matters. (This item is referred to the Housing and Homelessness Committee and the Personnel and Hiring Committee.)

This report from the Los Angeles Housing Department (LAHD) analyzes the feasibility of developing a Middle-Income Affordable Rental Housing Pilot Program. The program aims to address the gap for essential middle-income earners (60-120% AMI) who are priced out of traditional affordable housing and market-rate options. The proposed program would utilize tax-exempt governmental purpose revenue bonds, issued through a conduit issuer, to finance the construction of new rental housing. Key guidelines include a 55-year affordability covenant, new construction only, limited fee guidelines, and a maximum developer fee of $2.5 million. The program would also require amending LAHD's existing Affordable Housing Bond Policies and Procedures to accommodate this new bond instrument. The report also discusses potential impacts on property tax revenues and addresses concerns raised by the SEC regarding Joint Powers Authorities (JPAs) and potential risks associated with such partnerships. Recommendations include authorizing LAHD to amend its bond policies, launch the pilot program, release an RFP for conduit issuers, and authorize a Financial Development Officer II position to manage the program. The estimated cost for this position is $178,538.65, to be funded from the Municipal Housing Finance Fund.

This initiative seeks to create more housing options for middle-income residents who are currently struggling with high rents. If successful, it could lead to increased housing availability and potentially more stable rental costs for a segment of the population often overlooked by traditional affordable housing programs.

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