(a) Definitions. The following words and phrases, whenever used in this section, shall be construed as defined herein. Words and phrases not defined herein shall be construed as defined in Sections 12.03 or 91.0401 of the Los Angeles Municipal Code, if defined therein.
Affordable Housing Facility. Either: (1) a building containing one or more dwelling units, or (2) a Single Room Occupancy Hotel, which in either case is used for rental and occupancy by a low income household or a very low income household and which is, pursuant to this section, newly constructed or rehabilitated and is located within the City of Los Angeles. The rents for these units shall not exceed the maximum allowable rent.
Community Based Non-profit. An organization which complies with either Internal Revenue Code Section 501(c)3 or 501(c)4, and whose stated purpose includes the development, ownership, or management of affordable housing for low and very low income households.
Department. The Housing Department of the City of Los Angeles.
Low Income Household. A household whose income does not exceed 80% of the Los Angeles Area Standard Metropolitan Statistical Area (SMSA) median income as established by the U.S. Department of Housing and Urban Development (HUD) and as adjusted for family size.
Maximum Allowable Rent. The maximum rent that may be charged on any dwelling unit in an Affordable Housing Facility pursuant to this section. This amount shall be based upon:
(1) 25% of 80% of the median income is adjusted for bedroom and family size for low income households and
(2) upon 25% of 50% of the median income is adjusted for bedroom and family size for very low income households as determined by the Housing Department.
Public Financing Source. Funding or credits obtained from any of the following sources: Federal Low Income Housing Tax Credits, State Low Income Housing Tax Credits, Housing and Community Development Block Grant, Housing Development Action Grant, Proposition 77 (California Earthquake Safety and Housing and Homeless Bond Act of 1988), Proposition 84 (California Housing and Homeless Bond Act of 1988), the California Housing Rehabilitation Program, the California Rental Housing Construction Program, the California Family Housing Demonstration Program, or tax increment revenues.
Rehabilitated Unit. A dwelling unit in a building or structure that has been made to comply with Division 88 of Article 1 of Chapter IX of the Los Angeles Municipal Code (Earthquake Hazard Reduction in Existing Buildings) subsequent to citation of noncompliance with Division 88 of Article 1 of Chapter IX and with both of the following:
(1) any applicable provisions of the Los Angeles Municipal Code, and
(2) any habitability requirements, as set forth in Title 24, Part 882, Section 109 of the Code of Federal Regulations.
Single Room Occupancy Hotel. An apartment building, hotel, or other structure containing six (6) or more guest rooms in which thirty percent (30%) or more of the units do not contain a private bath and toilet facility within the unit.
Very Low Income Household. A household whose income does not exceed 50% of the Los Angeles area Standard Metropolitan Statistical Area (SMSA) median income as established by the U.S. Department of Housing and Urban Development (HUD) and is adjusted for family size.
(b) Credits. The developer or project owner required to pay a fee pursuant to the Affordable Housing Mitigation Fee Ordinance shall receive a credit against the fee by providing Affordable Housing Facilities within a ten (10) mile radius of the project which received notice pursuant to Los Angeles Municipal Code Section 91.0304(k). The facility shall be credited by the Department against the requirement of the payment of a mitigation fee for affordable housing purposes in an amount listed in this section.
However, the Department shall first find that the following standards have been met:
(1) That each dwelling unit qualifying for a credit is located within an Affordable Housing Facility, subject to a document in favor of the City recorded in the Office of the Los Angeles County Recorder against the site of the Affordable Housing Facility restricting the use and occupancy of the facility for very low or low income households, and the rent is restricted to maximum allowable rent for at least thirty (30) years or for the life of the building, whichever is longer; and
(2) That the applicant for any credit had received notice pursuant to Section 91.0304(k) of the Los Angeles Municipal Code prior to the effective date of an Affordable Housing Mitigation Fee Ordinance.
(c) Requirements. Immediately following the effective date of an Affordable Housing Mitigation Fee Ordinance, the Department shall issue written notification to each developer or project owner who is subject to that ordinance. This notification shall state the amount of the fee imposed by that ordinance for that development or project. Subsequent to the mailing of this notification, the developer or project owner shall either:
(1) Present to the Department within thirty (30) calendar days a Certificate of Occupancy dated after the effective date of this section for all Affordable Housing Facilities which are intended to qualify as a credit pursuant to this section; or
(2) Complete both of the following:
(a) Post with the Department within thirty (30) calendar days an irrevocable letter of credit equal to the amount of the fee imposed. The letter of credit shall name the City of Los Angeles as the recipient and beneficiary. The letter of credit may be drawn upon to cover any Affordable Housing Mitigation Fee if the project intended to qualify as a credit does not receive a Certificate of Occupancy within the time requirements, including any extensions, of this section; and
(b) present to the Department a Certificate of Occupancy for the Affordable Housing Facilities which are intended to qualify as a credit pursuant to this section within the later of either:
(1) Twelve (12) months from the initial issuance of the letter of credit; or
(2) Twelve (12) months from the date of any Certificate of Occupancy first issued for the project which received notice pursuant to Los Angeles Municipal Code Section 91.0304(k).
The Department shall grant to the developer or project owner a credit for any Affordable Housing Facilities in an amount as established in this section.
(d) Regulations. Upon the direction of the City Council, the Department shall promulgate regulations in order to effectuate the purpose of this section. These regulations shall become effective upon approval by the City Council and publication once in a daily newspaper of general circulation in the City of Los Angeles.
(e) Amount of Credit.
(1) Credits in the following amounts shall be granted when the developer or project owner certifies that no funds from public financing sources were used for the Affordable Housing Facility for which credit is sought:
(A) The credit granted for each newly constructed unit in an Affordable Housing Facility shall be in the following amounts:
Single Room Occupancy Hotel guest rooms: $40,000 for very low income and $32,000 for low income.
Single room units: $71,500 for very low income and $55,000 for low income.
One bedroom units: $76,500 for very low income and $60,000 for low income.
Two bedroom units: $86,500 for very low income and $70,000 for low income.
Three bedroom units: $96,500 for very low income and $80,000 for low income.
Additional rooms: Each additional room in excess of three bedrooms shall be $10,000 per additional room.
(B) The amount of the credit granted for each Rehabilitated Unit in an Affordable Housing Facility shall be in the following amounts:
Single room units and single room occupancy hotel guest rooms: $25,000 for very low income and $19,600 for low income.
One bedroom: $25,000 for very low income and $19,600 for low income.
Two bedroom: $30,000 for very low income and $23,400 for low income.
Three bedroom: $35,000 for very low income and $27,300 for low income.
(2) Credits in the following amounts shall be granted when the Department determines that funds from one or more public financing sources have been used in developing the Affordable Housing Facility:
(A) If the Department determines that a community based non-profit is involved with the development of the Affordable Housing Facility, then the credit granted to a developer or project owner for each unit shall be fifty percent (50%) of the credit amounts set forth in Subsection (e).
(B) If the Department determines that a community based non-profit is not involved with the development of the Affordable Housing Facility, then the credit granted to a developer or project owner for each unit shall be thirty-three percent (33%) of the credit amounts set forth in Subsection (e).
(f) Extensions of Time. A developer or project owner may obtain one or more extensions of up to six (6) months each in order to complete the Affordable Housing Facilities pursuant to this section. An extension may be obtained by submitting an application to the Director of Planning with a copy to the Mayor’s office upon the forms supplied by the Department of Planning. An extension of time may be granted by the Director of Planning subsequent to a determination that the extension of time for compliance with this section is reasonable. The determination shall be made based on consideration of the following factors:
Whether significant activity is proceeding upon the project including, but not limited to, the acquisition of land, completion of project plans, and an application for necessary City approvals is deemed to be complete pursuant to Government Code Section 65950.
SECTION HISTORY
Added by Ord. No. 165,531, Eff. 4-5-90.
Amended by: Ord. No. 182,718, Eff. 10-30-13; Ord. No. 187,122, Eff. 8-8-21.