Long Beach Municipal Code Ch. 3.92 Housing Trust Fund

It is the intent of the City Council to create a Housing Trust Fund as a source of revenue to meet, in part, the housing needs of the City's extremely low, low, and moderate income households.

The Housing Trust Fund will serve as a vehicle for addressing the housing needs of extremely low, low, and moderate income households through a combination of funds as provided for in this Chapter.

It is further the intent of the Council to increase ownership opportunities available to extremely low, low, and moderate income households throughout the City.

It is the purpose and intent of this Chapter to preserve and increase renter and ownership housing units which are affordable to extremely low, low, and moderate income households which are located within the City, including federally assisted units.

It is further the intent of the City Council to foster and encourage the private sector to join with the public sector to further the goals of this Chapter.

(ORD-23-0050 § 1, 2023; ORD-06-0021 § 1 (part), 2006)

Unless the context requires otherwise, the words and phrases used in this Chapter shall have the meanings as defined below:

A. "Affordable" means a housing unit that has an affordable housing or rental cost.

B. "Affordable housing cost" shall have the meaning ascribed to that term in Section 50052.5 of the California Health and Safety Code ("Code"), or any successor section thereto.

C. "Affordable rent" shall have the meaning ascribed to that term in Section 50053(a) of the Code, or any successor section thereto.

D. "Area median income" means the median income in the Long Beach standard metropolitan statistical area adjusted for family size, as published by the United States Department of Housing and Urban Development.

E. "Assisted unit" means a housing unit that is affordable because of assistance from the fund.

F. "Extremely low income household" means a household whose income is no more than thirty percent (30%) of area median income.

G. "Housing Trust Fund" means the Long Beach Housing Trust Fund account maintained by the City to fund the activities authorized by this Chapter.

H. "Low income household" means a household whose income is no more than eighty percent (80%) of area median income.

I. "Moderate income household" means a household whose income is no more than one hundred twenty percent (120%) of area median income.

J. "Recipient" means a person or legal entity which receives funds from the Housing Trust Fund other than the company.

(ORD-23-0050 § 2, 2023; ORD-06-0021 § 1 (part), 2006)

A. There is established a fund to be known and denominated as the Long Beach Housing Trust Fund ("housing trust fund"). The housing trust fund shall consist of such sums as are directed to the fund by ordinance of the City Council and any other appropriations as determined from time to time by action of the City Council. The housing trust fund shall be administered by the Long Beach Community Investment Company ("company") pursuant to the provisions of this Chapter, the program plan (defined below), the appropriation ordinances and Council policies applicable thereto.

B. All funds received by the housing trust fund, either from special funds or general fund appropriations, shall be deposited in an account to be known and denominated as the housing trust fund account. Principal and interest from loan repayments, proceeds from grant repayments, forfeitures, reimbursements, and all other income from housing trust fund activities, shall be deposited in the housing trust fund account unless required otherwise by funding regulations. All funds shall earn interest at least at the same rate as pooled investments managed by the City Treasurer. All interest earnings from the housing trust fund account shall be reinvested and dedicated to the account. All appropriated funds in the housing trust fund account shall be available for program expenditures as directed by the company. The City's annual appropriation ordinance shall provide for the transfer of designated funds to the housing trust fund. Transfers shall be made quarterly or upon direction of the City Manager. Designated funds shall accrue interest from the time of transfer to the housing trust fund account.

(ORD-23-0050 § 3, 2023; ORD-06-0021 § 1 (part), 2006)

Funds in the housing trust fund shall be used solely for programs and administrative support approved by the City Council in the program plan to meet the housing needs of extremely low, low, and moderate income households. After payment of administrative expenses, funds in the housing trust fund account shall be allocated according to the following requirements:

A. Not more than twenty percent (20%) of the funds in the housing trust fund account shall be expended to provide housing assistance and homeownership opportunities for moderate income households at affordable costs;

B. Not less than thirty percent (30%) of the funds in the housing trust fund account shall be expended to provide housing assistance and homeownership opportunities to extremely low income households at affordable housing costs; and

C. The remaining funds in the housing trust fund account shall be expended to provide housing assistance to low income households.

(ORD-23-0050 § 4, 2023; ORD-06-0021 § 1 (part), 2006)

A. Whenever funds from the housing trust fund account are used for the acquisition, construction or substantial rehabilitation of affordable housing, the company shall impose enforceable requirements on the owner of the housing unit requiring that the unit remain affordable for a minimum of fifty-five (55) years for rental housing and thirty (30) years for ownership housing.

B. For programs funded with funds from the housing trust fund which are not described in Subsection A of this Section, the company shall develop appropriate mechanisms to ensure the continued affordability of the involved units.

C. The affordability restriction requirements described in this Section shall run with the land and the company shall develop appropriate procedures and documentation to enforce these requirements and shall record such documentation in the official records of the Recorder of Los Angeles County.

(ORD-06-0021 § 1 (part), 2006)

Prior to the commencement of the fiscal year, the company shall adopt a plan ("program plan") and present it to the City Council for action. The program plan shall include:

A. A description of all programs and projects to be funded with funds from the housing trust fund; and

B. The amount of funds budgeted for the programs and projects administered by the company.

(ORD-06-0021 § 1 (part), 2006)

Funds from the housing trust fund may be used in any manner consistent with this Chapter, through loans, grants, or indirect assistance, for the production and maintenance of assisted units and related facilities. Funds shall not be used for the operation of supporting services such as childcare or social services unless:

A. The funds are used in connection with affordable housing; and

B. The recipient can demonstrate to the satisfaction of the company that other funds are not available.

(ORD-06-0021 § 1 (part), 2006)

The company shall publish such administrative rules and guidelines as are necessary and desirable to implement the programs approved by the City Council in the program plan.

(ORD-06-0021 § 1 (part), 2006)

The company shall once each year prepare and submit a report to the City Council on the activities undertaken with funds from the housing trust fund. The report shall contain the information necessary to support the findings specified in Section 66001 of the California Government Code.

(ORD-06-0021 § 1 (part), 2006)

The City Treasurer shall maintain and report within the City's accounts a separate housing trust fund account and any required related subsidiary funds for all related financing transferred from the City and any related income. Such funds shall be accounted for and reported separately on the company's annual financial report, and such funds shall be audited for compliance with this Chapter and related policies and regulations. The company shall prepare any other reports legally mandated for financing sources of the housing trust fund.

(ORD-06-0021 § 1 (part), 2006)