Page 295 - FY 2021-22 Blue Book Volume 2

ACCESSIBLE HOUSING PROGRAM

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget for the Accessible Program relates to the current year funding as follows:

General Fund Special Funds * Other Funds ** Total

2020-21 Adopted Budget $ 21,404,085 $ 25,064,664 $ 24,644,260 $ 71,113,009
2021-22 Proposed Budget $ 33,930,045 $ 50,664,075 $ 151,992,225 $ 236,586,345
Change from 2020-21 Budget $ 12,525,960 $ 25,599,411 $ 127,347,965 $ 165,473,336
% Change 58.5% 102.1% 516.7% 232.7%
* Special Funds include Proposition HHH bond proceeds used to subsidize the construction of accessible units.

** Other funds consist of funding for the construction of accessible units from other funding sources. For 2020-21, the source included tax credits
only. For 2021-22, the other sources include tax credits, federal, 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 2021-22 for the Accessible Housing Program is provided by the General Fund, Special Funds (Proposition
HHH bond proceeds), and funding for the construction of accessible units from Low Income Housing Tax Credits,
HOME Investment Partnerships Program funding, State, County and other funds.

The 2021-22 Proposed Budget includes the following:

 $9.2 million for the Housing Department and the City Attorney’s Office to implement the requirements of the
Settlement Agreement;

 $51 million for the construction of accessible units under the Proposition HHH program and funded by
Proposition HHH Bond Proceeds;

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

 $3.2 million to pay for contracts associated with accessibility retrofits and relocation assistance to tenants of
occupied units.

Funding in 2021-22 will produce 745 accessible units toward the City’s 10-year goal of 4,000 units.

761