(a) There is hereby created and established within the Treasury of the City of Los Angeles a special fund to be known as the City of Los Angeles Affordable Housing Trust Fund (the Fund) for the purposes of receiving and disbursing monies to address the affordable housing needs of the City of Los Angeles. In addition to the initial deposit of funds, the Mayor and City Council may establish additional revenue sources and appropriate funds for deposit in the Fund from time to time. An amount equal to 25% of the initial and continuing net revenue attributable to the 2001 business tax and payroll expense tax amnesty program and the initial and continuing net revenue attributable to the revenue program initiated pursuant to information obtained as a result of the enactment of Revenue and Taxation Code Section 1955.1 (AB 63) received in the applicable reporting period shall be allocated to the Fund and shall be transferred by the Controller from the General Fund to the Fund. The Fund shall be administered by the LAHD.
(b) The money from the Fund shall only be expended within the boundaries of the City of Los Angeles, pursuant to guidelines (the “Guidelines”) promulgated for this purpose by the Los Angeles Housing Department (“LAHD”). The Guidelines shall authorize expenditures from the Rental Housing Production Account, as established by Chapter I, Article 2.9 of the Los Angeles Municipal Code, and the Municipal Housing Finance Fund, Chapter 6, Article 4.5 of the Los Angeles Administrative Code. The Guidelines and any amendments thereto shall be approved by the City Council.
(c) Money in this account shall be used exclusively for the housing needs of the City, for the development and preservation of affordable housing and such other housing activities as that term shall be defined in the Guidelines.
Such activities shall include loans and grants, including but not limited to:
(1) Activities by qualified entities to provide affordable housing;
(2) Predevelopment activities, acquisition, development, new construction, rehabilitation and/or restoration of rental and/or ownership of affordable housing in the City of Los Angeles;
(3) Any other activity that contributes to an increased supply of decent, safe and sanitary affordable housing in the City of Los Angeles.
(d) All monies in the Fund shall be held separately from all other funds expended by the LAHD. All monies loaned from the Fund shall be repaid to the Fund in accordance with the terms of the loan. The repaid principal and interest shall be placed in the Fund.
(e) Any gifts, contributions or other money received for the stated purposes of the Fund shall be placed in the Fund. All interest earnings accruing on money in the Fund shall become part of the Fund. Money in the Fund shall not revert to the Reserve Fund of the City.
(f) The General Manager of LAHD or the General Manager’s designee shall make recommendations to the City Council for expenditures from the Fund. No expenditure may be made from the Fund without the prior approval of the Mayor and the City Council, unless otherwise authorized by the Guidelines.
(g) The provisions of this Section are suspended during the fiscal year from July 1, 2009 through June 30, 2010.
(h) All building and construction work on the project, to extent allowed by the law, will be performed at all tiers by contractors which (a) are licensed by the State of California and the City of Los Angeles; (b) shall make a good-faith effort to ensure that at least 30% of all their respective workforces’ construction workers’ hours of Project Work shall be performed by permanent residents of the City of Los Angeles of which at least 10% of all their respective workforces’ construction workers’ hours of Project Work shall be performed by Transitional Workers whose primary place of residence is within a 5-mile radius of the covered project; (c) employ only construction workers which possess all licenses and certifications required by the State of California and the City of Los Angeles; (d) pay their construction workers performing project work the wages prevailing in the project area determined pursuant to California Labor Code § 1770; and (e) have at least 60% of their respective construction workforces on the project from: (1) workers who have graduated from a Joint Labor Management apprenticeship training program approved by the State of California, or have at least as many hours of on- the-job experience in the applicable craft which would be required to graduate from such a state approved apprenticeship training program, and (2) registered apprentices in an apprenticeship training program approved by the State of California or an out-of-state, federally- approved apprenticeship program. For the purposes of this subsection the following terms have the meaning shown:
“Transitional Worker” means an individual who, at the time of commencing work on the project, resides in an Economically Disadvantaged Area or Extremely Economically Disadvantaged Area and faces at least two of the following barriers to employment: (1) being homeless; (2) being a custodial single parent; (3) receiving public assistance; (4) lacking a GED or high school diploma; (5) having a criminal record or other involvement with the criminal justice system; (6) suffering from chronic unemployment; (7) emancipated from the foster care system; (8) being a veteran; or (9) being an apprentice with less than 15% of the apprenticeship hours required to graduate to journey level in a program.
“Economically Disadvantaged Area” means a zip code that includes a census tract or portion thereof in which the median annual household income is less than $40,000 per year, as measured and reported by the U.S. Census Bureau in the 2010 U.S. Census and as updated by the parties upon the U.S. Census Bureau issuing updated Median Annual Household Income data by census tract in the American Community Survey.
“Extremely Economically Disadvantaged Area” means a zip code that includes a census tract or portion thereof in which the median annual household income is less than $32,000 per year, as measured and reported by the U.S. Census Bureau in the 2010 U.S. Census and as updated by the parties upon the U.S. Census Bureau issuing updated Median Annual Household Income data by census tract in the American Community Survey.
The Department of Public Works, Bureau of Contract Administration, shall bear administrative responsibilities for the labor standards required by this subsection. The requirements of this subsection, except clause (d) concerning wages, shall not apply to affordable housing developments of 25 units or less in which all units in the development except for managers’ units will be affordable to and occupied by Lower Income households (as defined in Section 50079.5 of the Health and Safety Code). The requirements of this subsection, except clause (d) concerning wages, shall not apply to developments that have been issued award letters for state and/or local funding, which must include City of Los Angeles Affordable Housing Trust Fund award letters issued, prior to November 30, 2016.
On an annual basis, the Los Angeles Housing Department shall collect data, including but not limited to number and size of affordable housing developments and number of affordable units produced. The City may, by majority vote of City Council, adjust the labor standards required by this subsection, except clause (d) concerning wages, for affordable housing developments between 26 to 50 units in which all units in the development except for managers’ units will be affordable to and occupied by Lower Income households (as defined in Section 50079.5 of the Health and Safety Code), if at all, during the calendar year beginning on January 1, 2020, only upon a showing of substantial evidence, which shall include technical documentation and a detailed factual or legal basis, that such adjustments are necessary to maximize production of affordable housing with good, construction jobs that pay wages in accordance with clause (d).
SECTION HISTORY
Chapter and Section Added by Ord. No. 173,346, Eff. 7-14-00.
Amended by: Sec. 5.122 renumbered 5.522 and Subsec. (a) amended, Ord. No. 174,035, Eff. 7-30-01; Subsec. (a), 174,709, Eff. 8-24-02; Subsec. (a) amended and Subsec. (g) added, Ord. No. 180,752, Eff. 7-27-09; Ord. No. 182,718, Eff. 10-30-13; Ord. No. 184,745, Eff. 12-13-16; Ord. No. 187,122, Eff. 8-8-21.