Page 353 - FY 2020-21 Blue Book Volume II

ACCESSIBLE HOUSING PROGRAM

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget for the Accessible Program relates to the current year funding as follows:

General Fund Special Funds * Other Funds ** Total
2019-20 Adopted Budget $ 16,134,422 $ 39,801,385 $ 42,180,113 $ 98,115,920
2020-21 Proposed Budget $ 21,404,085 $ 25,064,664 $ 24,644,260 $ 71,113,009

Change from 2019-20 Budget $ 5,269,663 $ (14,736,721) $ (17,535,853) $ (27,002,911)
% Change 32.7% (37.0%) (41.6%) (27.5%)

* Special Funds include Proposition HHH bond proceeds used to subsidize the construction of accessible units.
** Other funds consist of subsidies for the construction of accessible units from other funding sources including tax credits, State, and County
funds.

In 2016, the City Council and Mayor approved a settlement relative to the class action lawsuit, Independent Living
Center of Southern California v. the City of Los Angeles, et al (Settlement Agreement) (C.F. 16-1389). The terms of the
Settlement Agreement require the City to:

 Invest $200 million over 10 years (an average value of $20 million per year) and hire staff, architects,
contractors, consultants, and experts in accessibility standards to implement the program; and,

 Produce 4,000 units of accessible rental housing (target number of accessible units) within 10 years by
retrofitting existing housing developments and financing new units.

In 2019, the City entered into a Voluntary Compliance Agreement (VCA) with the U.S. Department of Housing and
Urban Development (HUD) (C.F. 12-0291). The terms of the VCA require the City to:

 Produce 4,031 units of accessible rental housing (target number of accessible units) within 10 years by
retrofitting 3,100 existing housing developments and financing new units.

Funding in 2020-21 for the Accessible Housing Program is provided by the General Fund, Special Funds (Proposition
HHH bond proceeds and HOME Investment Partnership Program funding), and subsidies for the construction of
accessible units from Low Income Housing Tax Credits.

The 2020-21 Proposed Budget includes the following:

 $8.5 million for the Housing and Community Investment Department and the City Attorney’s Office to
implement the requirements of the Settlement Agreement;

 $25 million for the construction of accessible units under the Proposition HHH program and funded by
Proposition HHH Bond Proceeds; and,

 $2 million in the Unappropriated Balance to pay for the contracts associated with inspecting accessibility and
conducting accessibility retrofits.

Funding in 2020-21 will produce 225 accessible units toward the City’s 10-year goal of 4,000 units.

815