Page 335 - 2022-23 Blue Book Vol 2

ACCESSIBLE HOUSING PROGRAM

BASIS FOR THE PROPOSED BUDGET

The 2022-23 Proposed Budget for the Accessible Housing Program relates to the current year funding as follows:

Accessible 2 3
Housing Fund 1 Special Funds Other Funds Total
2021-22 Adopted Budget $ 33,930,045 $ 50,664,075 $ 151,992,225 $ 236,586,345
2022-23 Proposed Budget $ 26,395,141 $ 46,492,638 $ 139,477,913 $ 212,365,692

Change from 2020-21 Budget $ (7,534,904) $ (4,171,437) $ (12,514,312) $ (24,220,653)
% Change (22.2%) (8.2%) (8.2%) (10.2%)
1. The source of funding for the Accessible Housing Fund is the General Fund. Funding in 2021-22 came from a General Fund
appropriation of $30,291,028 and carry-over of prior year appropriations of $3,639,017. Funding in 2022-23 comes from a General Fund
appropriation of $19,569,248 and a carry-over of prior year appropriations of $6,825,893.

2. Special Funds include Proposition HHH bond proceeds used to subsidize the construction of accessible units.
3. Other funds consist of funding for the construction of accessible units from other funding sources, including 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 2022-23 for the Accessible Housing Program is provided by the Accessible Housing 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 2022-23 Proposed Budget includes the following:

 $9.9 million for the Housing Department and the City Attorney’s Office to implement the requirements of
the Settlement Agreement and VCA;

 $46.5 million for the construction of accessible units under the Proposition HHH program, which is funded
by Proposition HHH Bond Proceeds; and,

 $1.9 million to pay for contracts associated with accessibility retrofits and relocation assistance to tenants
of occupied units.
Funding in 2022-23 will produce up to 731 accessible units toward the City’s 10-year goal of 4,000 units.

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