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HomeMy WebLinkAbout2025-09-09 - AGENDA REPORTS - MOU LACO AFFORDABLE HOUSING SOLUTIONSO Agenda Item: 6 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: Li 7 ' DATE: September 9, 2025 SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE LOS ANGELES COUNTY AFFORDABLE HOUSING SOLUTIONS AGENCY FOR AFFORDABLE HOUSING PRODUCTION, PRESERVATION, AND OWNERSHIP; TECHNICAL ASSISTANCE; RESEARCH AND POLICY; AND RENTER PROTECTION AND HOMELESSNESS PREVENTION FUNDING DEPARTMENT: Community Development PRESENTER: Tracy Sullivan RECOMMENDED ACTION City Council to authorize City Manager or designee to execute a Memorandum of Understanding with the Los Angeles County Affordable Housing Solutions Agency for the disbursement and use of Measure A funds in substantially the form attached hereto, subject to approval of any further minor modifications by the City Manager and City Attorney. BACKGROUND In 2022, the California State Legislature passed Senate Bill (SB) 679, which created the Los Angeles County Affordable Housing Solutions Agency (LACAHSA). The Los Angeles County Affordable Housing Solutions Agency aims to increase the supply of affordable housing in Los Angeles County (County) by providing enhanced funding and technical assistance at a regional level for renter protections, affordable housing preservation, and new affordable housing construction. In 2024, County voters approved Measure A, a permanent half -cent sales tax to fund homeless services and affordable housing development throughout the County. Measure A is expected to generate over $1 billion in revenue annually. The Los Angeles County Affordable Housing Solutions Agency will receive 35.75 percent of Measure A revenues for affordable housing production and preservation, renter protection and homelessness prevention, and technical assistance. hi turn, LACAHSA must pass through 70 percent of funding to local governments. Page 1 Packet Pg. 39 O The City of Santa Clarita (City) is identified in SB 679 as an eligible jurisdiction to receive direct funding from LACAHSA. For the first year, the City is projected to receive a total allocation of $3,457,981. This funding will be distributed across three distinct eligible use categories: (1) Production, Preservation, and Ownership of Affordable Housing, (2) Renter Protection and Homelessness Prevention, and (3) Technical Assistance. Prior to receiving any funding, the City is required to execute a Memorandum of Understanding (MOU) with LACAHSA. The MOU is a binding commitment of the City to comply with all requirements of SB 679 and Measure A in the use of the funding and to comply with all policies and guidelines of LACAHSA. If approved, the MOU will remain in effect for one year and automatically renew each year for up to five years. The terms and conditions will remain the same at each renewal, except for the allocation amounts which may vary year -over -year depending on available revenues. After the MOU is fully executed, the City will be required to prepare an annual Expenditure Plan outlining how it intends to use its LACAHSA allocation. The Expenditure Plan will be presented to the City Council each year for review and approval prior to its submission to LACAHSA. ALTERNATIVE ACTION Other action as determined by City Council. FISCAL IMPACT The City will receive an annual direct allocation of funding from the Los Angeles County Affordable Housing Solutions Agency to support affordable housing, technical assistance, and homelessness prevention. Each year, the allocation amount and proposed uses will be presented to the City Council as part of the Annual Expenditure Plan process, as required by LACAHSA. ATTACHMENTS LACAHSA Memorandum of Understanding Santa Clarita Page 2 Packet Pg. 40 6.a AFFORDABLE HOUSING PRODUCTION, PRESERVATION, AND OWNERSHIP; TECHNICAL ASSISTANCE, RESEARCH AND POLICY; AND RENTER PROTECTION AND HOMELESSNESS PREVENTION FUNDING MEMORANDUM OF UNDERSTANDING Santa Clarita 2025-2026 This Affordable Housing Production, Preservation, and Ownership; Technical Assistance, Research and Policy; and Renter Protection and Homelessness Prevention Funding Memorandum of Understanding ("MOU"), effective July 1, 2025 ("Effective Date"), is between the Los Angeles County Affordable Housing Solutions Agency, a special act agency established pursuant to Government Code section 64710 and operating pursuant to the Los Angeles County Regional Housing Finance Act, Government Code section 64700 et seq. ("Agency"), and Santa Clarita, a California City Charter ("Recipient"), each individually a "Party" and collectively the "Parties." RECITALS This MOU is made with reference to the following facts: A. In September 2022, Governor Newsom signed Senate Bill 679, known as the Los Angeles County Regional Housing Finance Act ("Act"). The Act created Agency to increase the supply of affordable housing by providing enhanced funding and technical assistance for renter protections, affordable housing preservation, and new affordable housing production. B. In November 2024, Los Angeles County voters approved "Measure A," known as the Affordable Housing, Homelessness Solutions, and Prevention Now Transactions and Use Tax Ordinance. Measure A established a one-half percent sales tax on every dollar of goods sold in Los Angeles County to provide dedicated funding for various purposes, including reducing and preventing homelessness and increasing the supply of affordable housing. C. Measure A directs the Los Angeles County Auditor -Controller ("County Auditor - Controller") to disburse 35.75% of the proceeds generated to Agency for use in accordance with the Act's and Measure A's requirements through fiscal year 2029-2030 (and thereafter, such percentage may be modified by the Los Angeles County Board of Supervisors every five years, except that such percentage may not be less than 33.33%). These include, among other things, that: Agency use 60% of its Measure A funds for affordable housing production, preservation, and ownership ("PPO") (Gov. Code, § 64830(d)(1); Measure A, § 29(B)); that Agency use 5% of its Measure A funds for technical assistance, research, and policy development ("Technical Assistance") (Gov. Code, § 64830(d)(4)); and that Agency use 30% of its Measure A funds for Renter Protection and Homelessness Prevention ("RPHP") (Gov. Code, § 64830(d)(2)). D. The Act requires Agency's Board to adopt an Annual Expenditure and Strategy Plan, which must set forth the share of revenue and estimated funding to be spent on each of the above - stated categories ("Annual Expenditure and Strategy Plan"). Agency's Board adopted the first Annual Expenditure and Strategy Plan on June 25, 2025 (and it is anticipated that -1- Packet Pg. 41 6.a the Board will adopt subsequent Annual Expenditure and Strategy Plans on an annual basis). The Annual Expenditure and Strategy Plan establishes the proportional amount of revenues and estimated funding that Agency will distribute to Recipient and each of the other "Eligible Jurisdictions" (as defined herein) for each funding category. Exhibit A, attached hereto and incorporated herein by reference, contains the allocations as approved by Agency's Board in the Annual Expenditure and Strategy Plan. E. Of the funds allocated for PPO, Agency must disburse 70% of such funds to Eligible Jurisdictions in accordance with each jurisdiction's pro rata share of the total lower income housing needs assessment goal for Los Angeles County allocated pursuant to Government Code section 65584 ("Pro Rata RHNA Share"). (Gov. Code, § 64830.5(a)(1)(A)-(F), (a)(2)(A)(i).). F. Each Eligible Jurisdiction and its Pro Rata RHNA Share is provided in Exhibit A. Recipient's Pro Rata RHNA Share for 2025-2026 is 0.63%. G. Of the funds allocated for Technical Assistance, Agency must disburse 70% of such funds to Eligible Jurisdictions on aper low-income renter basis. (Gov. Code, § 64830.5(a)(1)(A)- (F), (a)(2)(C)(i)) ("Technical Assistance Allocation"). H. Each Eligible Jurisdiction and its Technical Assistance Allocation is provided in Exhibit A,. Recipient's Technical Assistance Allocation is 0.04%. Of the funds allocated for RPHP, Agency must disburse 70% of such funds to Eligible Jurisdictions. Agency has elected to make such disbursement based on a per low-income renter basis. (Gov. Code, § 64830.5(a)(1)(A)-(F), (a)(2)(B)(i)) ("RPHP Allocation"). Each Eligible Jurisdiction and its RPHP Allocation is provided in Exhibit A. Recipient's RPHP Allocation is 0.23%. The Act and Measure A provide that Eligible Jurisdictions may receive their respective Pro Rata RHNA Share of PPO funds, Technical Assistance Allocation, and RPHP Allocation directly from Agency, provided that direct allocations are subject to the conditions and restrictions set forth in the Act and Measure A for the receipt and use of the funds. K. The Parties have entered into this MOU to comply with the Act and Measure A and memorialize the terms and conditions governing the disbursement and use of Recipient's Pro Rata RHNA Share of PPO funds, Technical Assistance Allocation, and RPHP Allocation. TERMS AND CONDITIONS The Parties agree as follows: 1. Incorporation. The Parties agree that the Recitals above constitute the factual basis upon which Agency and Recipient have entered into this MOU. Agency and Recipient each acknowledge the accuracy of the Recitals and hereby agree to the incorporation of the Recitals into this MOU as though fully set forth herein. -2- Packet Pg. 42 6.a 2. Term; Extension. The term of this MOU is one year starting on the Effective Date. The term will automatically renew for successive one-year terms unless either Party provides the other Party with a written notice of non -renewal at least 30 days before the end of the then -current term. Any renewal terms shall be on the same terms and conditions provided herein, except that the allocations provided in Exhibit A shall be automatically updated to reflect the allocations set forth in the Annual Expenditure and Strategy Plan adopted by the Board for that fiscal year (e.g., if this MOU is renewed for FY 2026-2027, the allocations provided in Exhibit A shall be those provided in the Board's Annual Expenditure and Strategy Plan for FY 2026-2027). This MOU will terminate upon the earlier of: (i) the fifth anniversary of the Effective Date; or (ii) the expiration of the then -current term following a Party's timely notice of non -renewal. 2.1. In the event that, during the term of this MOU, the Pro Rata RHNA Share changes as a result of a subsequent RHNA cycle, an addendum will be provided to each Eligible Jurisdiction's MOU, including this MOU, to incorporate the change. 3. Recipient Acknowledgment. 3.1. Eligible Jurisdiction; Pro Rata RHNA Share. Recipient acknowledges and agrees that it is an Eligible Jurisdiction whose Pro Rata RHNA Share is 0.63%. 3.2. Recipient's Share of PPO Funds. hi accordance with Section 3.1 above, Recipient acknowledges and agrees that it will receive 0.63% of the PPO funds available to be disbursed by Agency to the Eligible Jurisdictions for 2025-2026. Such share of PPO funds may change from time to time. 3.3. Eligible Jurisdiction; Technical Assistance Allocation. Recipient acknowledges and agrees that it is an Eligible Jurisdiction whose Technical Assistance Allocation is 0.04%. 3.4. Recipient's Share of Technical Assistance Funds. hi accordance with Section 3.3 above, Recipient acknowledges and agrees that it will receive 0.04% of the Technical Assistance funds available to be disbursed by Agency to the Eligible Jurisdictions for 2025-2026. Such share of Technical Assistance funds may change from time to time. 3.5. Eligible Jurisdiction; RPHP Allocation. Recipient acknowledges and agrees that it is an Eligible Jurisdiction whose RPHP Allocation is 0.23%. 3.6. Recipient's Share of RPHP Funds. hi accordance with Section 3.5 above, Recipient acknowledges and agrees that it will receive 0.23% of the RPHP funds available to be disbursed by Agency to the Eligible Jurisdictions for 2025-2026. Such Share of RPHP funds may change from time to time. 3.7. Recipient Reallocation to Agency. If Recipient so chooses, it may elect to re- allocate all or a portion of its funding allocation for any allocation to Agency to -3- Packet Pg. 43 6.a partner with on the operation or to solely operate a program on Recipient's behalf within Recipient's jurisdiction. 4. Disbursement Schedule. Agency will disburse funds to Recipient in accordance with the Master Funding Policy and Guidelines for Eligible Jurisdictions ("Master Funding Policy and Guidelines") published by Agency after the County Auditor -Controller disburses Measure A proceeds to Agency. 5. Direct Allocation of PPO Funds. Prior to disbursing a direct allocation of PPO Funds to Recipient, the following conditions of Government Code section 64830.5(a)(2)(A)(iv)(I) shall be met: 5.1. Recipient agrees to adopt and adhere to Agency financing policies and guidelines, including public engagement and notice provisions. 5.2. All funded projects are in compliance with Agency's eligible uses and affordability requirements. 5.3. Recipient agrees to allocate its funding within 12 months through administrative processes without being subject to additional legislative process. 5.4. Recipient is in compliance with Affirmatively Furthering Fair Housing in California guidelines. If Recipient is a regional agency, it shall expend the funds only in jurisdictions that are in compliance with Affirmatively Furthering Fair Housing in California guidelines. By executing this MOU, Recipient hereby agrees to adopt and adhere to Agency's Master Funding Policy and Guidelines (including public engagement and notice provisions) and any other policies and guidelines adopted by Agency related to the disbursement of funds to, or use of funds by, Eligible Jurisdictions. Execution of this MOU shall therefore satisfy the condition at subsection 5.1. Agency's Master Funding Policy and Guidelines will establish provisions for Recipient to meet the remaining three conditions, which Recipient shall meet prior to its receipt of a direct allocation of all or a portion of its PPO allocation. 6. Use of PPO Funds. For any fiscal year in which Recipient receives PPO funds from Agency, Recipient will comply with all of the following: 6.1. New Affordable Housing. Pursuant to Measure A, Section 29 B, Recipient will use at least 77.25% of PPO funds on constructing new affordable housing. 6.2. Government Code Section 64830(d)(1). Subject to Section 6.1 above, Recipient's use of PPO funds will comply with the requirements of Government Code section 64830(d)(1), attached hereto as Exhibit B-1 and incorporated herein by reference. 6.3. Prohibited Uses. Except as expressly authorized by Government Code section 64710, Recipient will not use PPO funds to perform or undertake any functions related to supports and services provided to people experiencing homelessness. -4- Packet Pg. 44 6.a 6.4. Supplemental Capacity for Existing Efforts. Recipient's use of PPO funds shall be consistent with Government Code section 64710(a)(1). 6.5. Timing. Upon receipt of a disbursement of PPO funds from Agency, Recipient will obligate its funding within 12 months through administrative processes without being subject to additional legislative process and will ensure that funds allocated to projects are expended within five years or as otherwise provided in Government Code section 64830.5(a)(2)(A), attached hereto as Exhibit B-2 and incorporated herein by reference, and any program policies and guidelines adopted by the Board. 6.6. Period of Affordability. Recipient shall record a restrictive covenant specifying an appropriate period of affordability in accordance with any program policies and guidelines adopted by Agency's Board. 7. Use of Technical Assistance Funds. For any fiscal year in which Recipient receives Technical Assistance funds from Agency, Recipient will comply with all of the following: 7.1. Government Code Section 64830(d)(4). Recipient's use of Technical Assistance funds will comply with the requirements of Government Code section 64830(d)(4), attached hereto as Exhibit B-3 and incorporated herein by reference. 7.2. Prohibited Uses. Except as expressly authorized by Government Code section 64710, Recipient will not use Technical Assistance funds to perform or undertake any functions related to supports and services provided to people experiencing homelessness. 7.3. Supplemental Capacity for Existing Efforts. Recipient's use of Technical Assistance funds shall not supplant, but may complement and supplement existing efforts by cities, counties, districts, and other local, regional and state entities that were in existence as of January 1, 2022. Nothing in this paragraph shall be construed to prohibit use of funds for new efforts. 7.4. Timing. Upon receipt of a disbursement of Technical Assistance funds from Agency, Recipient will obligate its funding within 12 months and will ensure that funds allocated to projects are expended within five years as provided in any program policies and guidelines adopted by Agency's Board. 8. Use of RPHP Funds. For any fiscal year in which Recipient receives RPHP funds from Agency, Recipient will comply with all of the following: 8.1. No Unrestricted Allocations. Government Code section 64830.5(a)(2)(B)(iii) prohibits Agency from making unrestricted direct allocations to government entities. Recipient therefore agrees to be subject to the restrictions set forth in this MOU and in t Agency's policies and guidelines for the receipt and use of RPHP funds. -5- Packet Pg. 45 6.a 8.2. Government Code Section 64830(d)(2). Recipient's use of RPHP funds will comply with the requirements of Government Code section 64830(d)(2), attached hereto as Exhibit B-4 and incorporated herein by reference. 8.3. Prohibited Uses. Except as expressly authorized by Government Code section 64710, Recipient will not use RPHP funds to perform or undertake any functions related to supports and services provided to people experiencing homelessness. 8.4. Supplemental Capacity for Existing Efforts. Recipient's use of RPHP funds shall not supplant, but may complement and supplement existing efforts by cities, counties, districts, and other local, regional and state entities that were in existence as of January 1, 2022. Nothing in this paragraph shall be construed to prohibit use of funds for new efforts. 8.5. Timing. Upon receipt of a disbursement of RPHP funds from Agency, Recipient will obligate its funding within 12 months and will ensure that funds allocated to projects are expended within five years as provided in any program policies and guidelines adopted by Agency's Board. 9. Construction Labor Requirements. 9.1. Measure A. Recipient will ensure that at least 80% of the housing units produced with PPO funds provided by Agency are built subject to a project labor agreement that satisfies the requirements of Section 28 of Measure A, attached as Exhibit C-1 and incorporated herein by reference. 9.2. The Act. Recipient will ensure that any construction or rehabilitation project receiving PPO funds provided by Agency complies with the requirements of Government Code section 64720.5, attached as Exhibit C-2 and incorporated herein by reference. 10. Recruitment and Retention of Workers. Recipient will ensure that all contracts funding social services positions, including but not limited to eviction prevention workers, comply with Section 27 of Measure A, attached as Exhibit C-31 attached hereto and incorporated herein by reference. 11. Records and Monitoring. 11.1. Progress Reports. Recipient will submit Quarterly Progress Reports ("QPRs") and an Annual Report ("Annual Report") to Agency on Recipient's use of PPO funds, Technical Assistance funds, and RPHP funds. Among other things, each QPR must address (with supporting documentation, as reasonably required by Agency) how Recipient has used, or plans to use, the PPO funds, Technical Assistance funds, and RPHP funds in accordance with this MOU, including, but not limited to, Sections 6 through 8 above. If Agency creates a template QPR, Recipient shall use Agency's template. Beginning July 1, 2025, Recipient must submit QPRs to Agency in accordance with the schedule set forth in Master -6- Packet Pg. 46 6.a Funding Policy and Guidelines for Eligible Jurisdictions. The July QPR submission will represent Recipient's Annual Report to Agency. 11.2. Financial Records. Recipient shall maintain financial records, supporting documents and agreements, statistical reports, official files, and any other evidence necessary to demonstrate compliance with this MOU. The foregoing shall be maintained on file by Recipient for at least five years after the expiration or termination of this MOU and made available to Agency upon request. 11.3. Audit Requirements. Agency shall contract for an annual audit, to be initiated within six months after the end of the fiscal year being audited, for the purpose of determining Recipient's compliance with this MOU, the Act, and Measure A. Upon completion of the annual audit, Agency will provide Recipient with a copy thereof. 12. Compliance with Funding Requirements. Recipient and any of its sub -recipients shall comply with the programmatic and financial grant implementation policies and guidelines included in the Master Funding Policy and Guidelines for Eligible Jurisdictions, published by the Agency, for all categories of funds. 13. Indemnification. Recipient agrees to indemnify, defend (with counsel reasonably approved by Agency) and hold harmless Agency and its board members, officials, officers, employees, agents, and volunteers, at Recipient's sole expense, from and against any and all claims actions, losses, damages, liability, and/or legal proceedings brought against Agency, its board members, officials, officers, employees, agents, and volunteers arising out of Recipient's performance of, or lack of performance of, any of its obligations under this MOU. 14. Dispute Resolution; Breach and Remedies. 14.1. Avoidance of Disputes. The Parties recognize that, as public agencies that are mutually interested in the efficient and effective use of Measure A revenues to prevent homelessness and increase access to affordable housing, the Parties desire to avoid legal disputes related to this MOU or to the pass -down and expenditure of Measure A revenues. The Parties therefore commit to make their respective best efforts to work collaboratively and cohesively to address questions of eligible uses or other compliance -related issues prior to the issue rising to the level of a dispute. 14.2. Dispute Resolution. Except as otherwise provided below, before proceeding in accordance with Sections 14.3 and 14.4, the Parties will attempt to informally resolve any disputes that arise from the application or interpretation of this MOU. The aggrieved Party shall notify the other Party of its intent to invoke this dispute resolution procedure within 10 business days after such dispute arises. If the Parties fail to resolve the dispute within 10 business days after delivery of such notice, each Party shall, within five business days thereafter, nominate a senior officer of its management to meet at a mutually agreed location to resolve the dispute. If the dispute remains unresolved within 10 business days after such a meeting, each Party, without further delay, shall have the right to proceed in accordance with -7- Packet Pg. 47 6.a Sections 14.3 and 14.4. Notwithstanding the foregoing, this Section 14.2 does not apply to a dispute involving Recipient's alleged misuse or misappropriation of funds in violation of the Act, Measure A, or other applicable laws. 14.3. Recipient's Breach. Recipient shall be in breach under this MOU if it fails to perform or satisfy any obligation or requirement set forth herein, or if it fails to comply with the Agency's established policies and guidelines, the Act, Measure A or other applicable law. If such violation is subject to cure, it shall be deemed a breach of this MOU after 60 calendar days of receiving written notice from Agency. 14.4. Remedies. 14.4.1. Recipient's sole remedy shall be to institute an action at law or equity to seek specific performance of the terms of this MOU. Recipient shall not be entitled to recover damages for any breach by Agency hereunder. For clarity, this Section allows for Recipient to obtain a court order to receive disbursement of Agency funds that Recipient is legally entitled to receive or to obtain a declaration of rights among the Parties under the law or this MOU. 14.4.2. If Agency alleges that Recipient has misused or misappropriated funds in violation of the Act, Measure A, or both, Agency may institute an action at law or equity to pursue all available legal or equitable remedies without providing a period for cure. In addition to the foregoing, Agency may pause disbursements of PPO funds, Technical Assistance funds, and/or RPHP funds to Recipient until such time as Agency reasonably determines that Recipient is complying with this MOU or a court of competent jurisdiction orders Agency to resume disbursing PPO funds, Technical Assistance funds, and/or RPHP funds to Recipient. 15. Most Favored Nation. Recipient acknowledges that Agency receives Measure A revenues for the purpose of passing through funding to multiple Eligible Jurisdictions throughout the County of Los Angeles and that each Eligible Jurisdiction, including Recipient, benefits from terms that ensure that another Eligible Jurisdiction (or its Subrecipients or contractors) does not take actions against Agency that would put Agency's pool of funds at risk. Therefore, Agency recognizes that the terms of this MOU, including the indemnity provisions and limitations on damages against Agency, are most effective if applicable to all Eligible Jurisdictions. Recipient shall therefore be subject to the same terms and conditions of the Eligible Jurisdiction that receives the most favorable terms in its Funding Memorandum of Understanding with Agency. This most favored nation clause is not triggered by, and shall not preclude, Agency from settling or resolving disputes with Eligible Jurisdictions or other claimants; it is only intended to ensure the standardization of the various MOUs. 16. Notice. -8- Packet Pg. 48 6.a 16.1. Methods. All notices, consents, requests, demands, and other communications required or permitted under this MOU must be in writing and are conclusively deemed effective: (A) On personal delivery; (B) On confirmed delivery by courier service; (C) On the first business day after transmission if sent by registered electronic mail transmission, with unmodifiable proof of content, delivery, and time of delivery; (D) If delivered by non -registered email, when the recipient, by an email sent to the email address for the sender stated in this Section 1616 or by a notice delivered by another method in accordance with this Section 1616 acknowledges having received the sender's email, provided that an automatic "read receipt" does not constitute acknowledgment of an email for purposes of this Section 1616; or (E) On the third day after deposit in the United States mail, by certified or registered mail, postage prepaid, addressed to the other Party. 16.2. Courtesy Notice. (A) If a Party gives notice under Section 16.116.1(A), (B), or (E) above, the noticing Party will make a good -faith effort to also send a courtesy copy of the notice to the other Party by email. (B) Failure to receive a courtesy copy is not a defect in notice. 16.3. Addresses. (A) Notices and other written communications to Agency must be sent to: Los Angeles County Affordable Housing Solutions Agency Kenneth Hahn Hall of Administration 500 West Temple Street, Room B50-b Los Angeles, CA 90012 Attention: Ryan Johnson, Chief Executive Officer Email: ryan.johnsonklacahsa.gov With a copy to: Best Best & Krieger LLP 300 South Grand Ave., 25th Floor Los Angeles, CA 9007 1 Attention: Michael Maurer and Paula de Sousa Emails : michael.maurerkbbklaw or paula.desousa@bbklaw.com -9- Packet Pg. 49 6.a (B) Notices and other written communications to Recipient must be sent to Santa Clarita City Manager Santa Clarita City Hall 23920 Valencia Blvd, Santa Clarita, CA 91355 Attention: Ken Striplin Email: kstriplin@santaclarita.gov With a copy to: Burke, Williams, & Sorenson LLP 444 South Flower Street, 40th Floor Los Angeles, CA 90071 Attention: Joseph M. Montes Email: jmontes@bwslaw.com 16.4. Change of Address. Either Party may change its address or email address by giving the other Party notice of the change in any manner permitted by this MOU. 16.5. Refused or Undeliverable Notice. Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the Party to be notified is deemed effective as of the first date that the notice was refused, unclaimed, or deemed undeliverable by the postal authorities, courier service, or other delivery service (as applicable). 17. Miscellaneous. 17.1. Governing Law; Venue. This MOU is governed by the laws of the State of California. Venue lies only in the state and federal courts in Los Angeles County, California. 17.2. Integrated Agreement. This MOU is the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior written and oral agreements or understandings between the Parties. This MOU cannot be modified except by a written document signed by both Parties. No Party is relying on any other negotiation, discussion, or agreement in connection with the subject matter of this MOU. This is a fully integrated agreement. 17.3. Independent Representation by Counsel. The Parties represent that in executing this MOU they have relied solely upon their own judgment, belief, and knowledge, and the advice and recommendations of their own independently selected counsel. -10- Packet Pg. 50 6.a 17.4. Capacity to Contract. Recipient has the capacity and the authority to fulfill the obligations required of it hereunder and nothing prohibits or restricts the right or ability of Recipient to carry out the terms hereof. 17.5. Authority to Execute. Each person executing this MOU on behalf of Recipient represents and warrants to Agency that they are duly authorized to execute and deliver this agreement on behalf of Recipient. 17.6. Enforcement Costs. If any action or proceeding is brought by any Parry against any other Party to enforce any of the provisions hereof, or to seek damages by reason of any alleged breach of any of the provisions hereof (whether at the trial court level, appellate level, in a bankruptcy, probate or administrative proceeding or otherwise), the prevailing Party shall be entitled to recover from the other Party its attorney's fees in such amount as the court may adjudge reasonable in such action or proceeding, together with the prevailing Party's other costs and expenses (including, without limit, court costs and other litigation costs and expenses). 17.7. Assignment. Recipient may not assign this MOU without Agency's prior written consent, which may be withheld for any reason. 17.8. Severability. If any provision of this MOU is held by a court of competent jurisdiction to be invalid, void, or unenforceable and the invalidity or unenforceability of such a provision does not deny a Party the material benefit of this MOU, then the other provisions of this MOU that can be given effect without the invalid provision remain in effect. 17.9. Headings. This MOU's headings are inserted solely for convenience of reference and are not intended to govern, limit, or aid in the construction of any term or provision hereof. 17.10. Counterparts; Electronic Signatures (A) This MOU may be signed and delivered in counterparts. (B) In addition to any other lawful method of executing this MOU, this MOU may be signed and delivered by each Party either: (i) electronically by facsimile (e.g., scanned image or PDF copy); or (ii) digitally through the use of EchoSign, DocuSign, or such other commercially available digital - signature software that results in verified and confirmed signatures delivered electronically to each Party. (C) Each electronic or digital signature of a Parry is treated as an original, as if personally signed by that Party. 17.11. Agreements with Third Parties. If Recipient enters into any agreements with contractors, consultants, subrecipients or other parties ("Other Contracting Party") for the use of PPO Funds, Technical Assistance Funds, or RPHP Funds for the implementation of eligible activities ("Third -Party Contracts"), such Third - Packet Pg. 51 6.a Party Contracts shall be consistent with the terms of this MOU. Recipient shall include in all Third -Party Contracts a requirement to comply with all terms of this MOU applicable to the work or services provided by the Other Contracting Party, and all legal requirements, including the Measure A requirements. -12- Packet Pg. 52 6.a 17.12. No Third -Party Beneficiary. There is no intended third -party beneficiary of this MOU. 17.13. No Waiver. No waiver of a provision of this MOU is valid unless it is made in writing and signed by the Party against whom such waiver is sought to be enforced. A failure to enforce a right hereunder does not constitute a continuing waiver of that right or a waiver of any other right hereunder. No waiver, benefit, privilege, or service that is voluntarily given or performed by a Party gives the other Party any contractual right by custom, estoppel, or otherwise. 17.14. Successors and Representatives. This MOU binds and inures to the benefit of the Parties and their respective heirs, personal representatives, successors, and (where permitted) assignees. (Signatures on the following page) -13- Packet Pg. 53 6.a IN WITNESS WHEREOF, the Parties have executed this MOU as indicated below. RECIPIENT City of Santa Clarita, a California Charter City Ken Striplin, City Manager APPROVED AS TO FORM Joseph Montes, Santa Clarita City Attorney AGENCY Los Angeles County Affordable Housing Solutions Agency, a special act agency established pursuant to Government Code section 64710 and operating pursuant to the Los Angeles County Regional Housing Finance Act, Government Code section 64700 et seq. ("LACAHSA") Ryan Johnson, Chief Executive Officer APPROVED AS TO FORM itz Michael Maurer, Agency Co -General Counsel -14- Packet Pg. 54 6.a EXHIBIT A Eligible Jurisdictions Eligible Jurisdiction PPO Pro Rata Technical RPHP Share RHNA Sharel Assistance Share Burbank -Glendale -Pasadena 1.03% 0.09% 0.56% Regional Housing Trust City of Glendale 0.69% 0.09% 0.55% City of Long Beach 1.38% 0.20% 1.21% City of Los Angeles 22.80% 1.72% 10.34% City of Santa Clarita 0.63% 0.04% 0.23% Gateway Cities Council of 2.37% 0.35% 2.12% Government/Gateway Cities Affordable Housing Trust Las Virgenes/Malibu Council 0.07% 0.01 % 0.04% of Governments North Los Angeles County 0.76% 0.09% 0.56% Transportation Coalition JPA San Fernando Valley Council of 0.09% 0.01% 0.04% Governments San Gabriel Valley Council of 4.22% 0.36% 2.14% Governments/San Gabriel Valley Regional Housing Trust South Bay Cities Council of 1.91% 0.21% 1.28% Governments/South Bay Regional Housing Trust Unincorporated Los Angeles 4.86% 0.23% 1.39% County Westside Cities Council of 1.19% 0.09% 0.55% Governments ' As approved by Agency's Board on 6/25/2025. Pursuant to the Act, the Pro Rata RHNA Shares attributable to the Councils of Governments exclude any share attributable to an individually listed jurisdiction. Exhibit A Packet Pg. 55 6.a EXHIBIT B-1 Government Code Section 64830 64830. (d) Subject to funding eligibility and adjustment pursuant to subdivision (b) of Section 64717, the agency shall distribute regional housing revenue in the form of a grant, loan, or other financing tool pursuant to subdivision (q) of Section 64720 in a manner that achieves the following shares in the annual expenditure plan: (1) A minimum of 40 percent of the annual programmatic budget, excluding any bond indebtedness, shall be spent on affordable housing creation, preservation, and ownership as follows: (A) The following conditions shall apply with regard to affordable housing creation: (i) Funding pursuant to this subparagraph may be used for the following purposes, including, but not limited to, land acquisition, housing acquisition, financing, and ownership programs, including the agency serving as a single source of financing as appropriate, income assistance for extremely low income households, and project -based rental assistance contracts with no time limit that are restricted to the support of extremely low income households. (ii) Financing for any development costs associated with a project or funding grant that is for housing that is 100 percent affordable, which means restricted to any household that earns less than 80 percent of the area median income (AMI), including permanent supportive housing that includes onsite supportive services. An eligible project may also include a subset of at least 50 units, or 50 percent of the total units, whichever is greater, in a larger development that includes units targeted up to 120 percent of AMI, in which case the agency may only fund units that are designated for extremely low and very low income households, and agency funds shall not be used in connection with any unit that is income restricted due to development incentives, density bonuses, or similar programs. (I) For each of the eligible jurisdictions, as defined in paragraph (1) of subdivision (a) of Section 64830.5, 25 percent of all funded units shall be reserved for extremely low income households, as defined in Section 50106 of the Health and Safety Code, and 25 percent shall be reserved for very low Exhibit B-1 Packet Pg. 56 6.a income households, as defined in Section 50105 of the Health and Safety Code, over any two-year period, with regular monitoring by the citizens' oversight committee and board of units funded and constructed during that two-year period. (II) For each project, 10 percent of the units in the project shall be reserved for extremely low income households and 10 percent of the units shall be reserved for very low income households. (B) Funding pursuant to this paragraph for affordable housing preservation programs may be used to acquire, rehabilitate, place affordability restrictions on, and preserve existing housing units, housing from the private market, and units in residential hotels as defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code for affordability, in order to prevent the loss of affordability and expand permanent affordability. Funding provided pursuant to this subparagraph shall be subject to both of the following conditions: (i) Existing residents of buildings acquired for the purpose of affordable housing preservation shall not be permanently displaced, even if the resident's household income exceeds the moderate - income limits in Section 50093 of the Health and Safety Code. (ii) Buildings acquired for the purpose of affordable housing preservation shall achieve 100 percent occupancy by extremely low or very low income households over time through unit turnover. Grants, loans, or other financing provided to community land trusts and other similarly structured nonprofit entities to acquire, rehabilitate, and preserve existing housing units are an eligible use pursuant to this subparagraph. Programs to enable low- or moderate -income households to become or remain homeowners, including, but not limited to, below market rate ownership programs, downpayment assistance programs, residential rehabilitation loan programs, and grants or loans to assist in the rehabilitation or replacement of existing mobile homes located in a mobile home or manufactured home are eligible uses pursuant to this subparagraph. (C) Funding provided pursuant to this paragraph shall be subject to the following conditions in the event that demolition or rehabilitation of housing units is required: (i) (I) Any funded development or affordable housing grant on any property that includes a parcel or parcels that currently have residential uses, or within the five years preceding the grant have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that Exhibit B-1 Packet Pg. 57 6.a restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entity's valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. (II) Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915, provided that any dwelling unit that is or was, within the five-year period preceding the grant, subject to a form of rent or price control through a local government's valid exercise of its police power and that is or was occupied by persons or families above lower income shall be replaced with units made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families. (ii) If existing residents are required to be relocated due to demolition or rehabilitation needs, the developer is required to provide relocation benefits to the occupants of those housing rental units subject to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1. The developer shall comply with either the local government requirements for relocation assistance to displaced households or the policy set by the agency for relocation assistance to displaced households, whichever provides a greater benefit to the relocated or displaced households. (iii) If existing occupants who are lower income households are required to vacate their units due to demolition or rehabilitation needs, the developer shall provide a right of first refusal for a comparable unit available in the new or rehabilitated housing development that is affordable to the household at an affordable rent, as defined in Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code. (Amended by Slats. 2024, Ch. 80, Sec. 73. (SB 1525) Effective January 1, 2025) Exhibit B-1 Packet Pg. 58 6.a 64830.5(a)(2). (A) EXHIBIT B-2 Government Code Section 64830.5(a)(2)(A) (i) Seventy percent of annual funding for the purpose of affordable housing preservation, affordable housing production, income assistance for extremely low- income households, and long-term, project -based rental assistance shall be allocated, based on the eligible jurisdiction's pro rata lower income housing need, to the eligible jurisdictions, provided that the allocation is consistent with the eligible uses of the funding set forth in paragraph (1) of subdivision (d) of Section 64830. (I) Thirty percent of annual funding for the purpose of affordable housing preservation, affordable housing production, and long-term rental assistance, with no time limit, shall be allocated by the agency to the eligible jurisdictions consistent with the guiding principles of the agency and the eligible uses outlined in Section 64830. (II) At least 5 percent of funds allocated pursuant to subclause (I) shall be used for technical assistance grants to cities with a population under 50,000. (iii) If an eligible jurisdiction is found to be out of compliance with affordability targets at the end of a two-year period, the board may take any of the following actions: (iv) (I) Limit the funding for the jurisdiction to extremely low and very low income housing units only until compliance is reestablished. (II) Require the funding allocated to the jurisdiction to be administered by the agency instead of the jurisdiction. (III) Increase funding incentives as needed to meet project and programmatic targets. (I) Any eligible jurisdiction may receive a direct allocation of all or part of the jurisdiction's funding described in this subparagraph if all of the following conditions are met: (ia) The jurisdiction agrees to adopt and adhere to agency financing policies and guidelines, including public engagement and notice provisions outlined in this chapter. Exhibit B-2 Packet Pg. 59 6.a (ib) All funded projects are in compliance with the agency's eligible uses and affordability requirements. (ic) The jurisdiction agrees to allocate its funding within 12 months through administrative processes without being subj ect to additional legislative process. (id) The jurisdiction is in compliance with Affirmatively Furthering Fair Housing in California guidelines. (ia) Once committed to a specific project, funds shall remain available for expenditure for an additional five years, unless an extension is authorized pursuant to sub-subclause (ib). (ib) If the funds have not been expended within five years of receipt as required in sub-subclause (ia), the jurisdiction shall show that it has made adequate progress towards completing the project. If the agency finds that the city has made adequate progress, the agency shall authorize an additional 24 months to grant entitlements to the remainder of the project. If the agency does not find that the city has made adequate progress, the funds shall be transferred to the agency. The agency shall hold the funds until the city submits a plan satisfactory to the agency to move forward with the project or allocate funds to another qualified project consistent with the jurisdiction's expenditure plan. (ic) For purposes of this subclause, "adequate progress" means the project has received the land use approvals or entitlements necessary for at least 75 percent of the project's units. .. . (Amended by Slats. 2024, Ch. 80, Sec. 73. (SB 1525) Effective January 1, 2025 Exhibit B-2 Packet Pg. 60 6.a EXHIBIT B-3 Government Code Section 64830 64830. (d) Subject to funding eligibility and adjustment pursuant to subdivision (b) of Section 64717, the agency shall distribute regional housing revenue in the form of a grant, loan, or other financing tool pursuant to subdivision (q) of Section 64720 in a manner that achieves the following shares in the annual expenditure plan: (4) At least 5 percent of the total annual programmatic budget, excluding any bond indebtedness, shall be used for technical assistance, research, and policy development. Eligible uses for these funds include, but are not limited to, all of the following: (A) Collecting and tracking information related to displacement and displacement risk, rents, and evictions in the region. (B) Drafting model affordable housing land use ordinances that may be adopted by any jurisdiction in the County of Los Angeles. (Amended by Slats. 2024, Ch. 80, Sec. 73. (SB 1525) Effective January 1, 2025. Exhibit B-3 Packet Pg. 61 6.a EXHIBIT B-4 Government Code Section 64830 64830. (d) Subject to funding eligibility and adjustment pursuant to subdivision (b) of Section 64717, the agency shall distribute regional housing revenue in the form of a grant, loan, or other financing tool pursuant to subdivision (q) of Section 64720 in a manner that achieves the following shares in the annual expenditure plan: (2) (A) At least 30 percent of the total annual programmatic budget, excluding any bond indebtedness, shall be spent on countywide renter protection and support programs. (B) These programs include any effort that helps renters of lower income households, as defined in Section 50079.5 of the Health and Safety Code. (C) Eligible uses of the funds include, but are not limited to, all of the following: (i) Preeviction and eviction legal services, counseling, advice and consultation, training, renter education and representation, and services to improve habitability that protect against displacement of tenants. (ii) Providing rental assistance for lower income households. Rental assistance shall be provided to a specific household for a reasonable amount of time not to exceed six months, and shall be paired with supportive services, such as eviction prevention and defense, to the greatest extent possible. (iii) Providing relocation assistance for lower income households beyond what is legally required of landlords according to local or state law. (Amended by Slats. 2024, Ch. 80, Sec. 73. (SB 1525) Effective January 1, 2025. Exhibit B-4 Packet Pg. 62 6.a EXHIBIT C-1 Measure A Labor Requirements SECTION 28. CONSTRUCTION WORK. A. It is the intent of this section to encourage the development of local job opportunities and career pathways into the building and construction trades, including but not limited to apprenticeship and pre -apprenticeship programs. B. Any construction or rehabilitation project receiving funding or financing from this Ordinance, including but not limited to a project of fewer than 40 units, shall constitute a public work for which prevailing wages shall be paid for purposes of Chapter 1 (commencing with section 1720) of Part 7 of Division 2 of the Labor Code. C. A project of 40 or more units is eligible to receive funding or financing from this Ordinance only if all construction and rehabilitation is subject to the City of Los Angeles Department of Public Works Project Labor Agreement 2020-2030 if the project is within the City of Los Angeles, or the Countywide Community Workforce Agreement executed by the Chief Executive Officer on June 7, 2023 if the project is elsewhere, or any successor to either agreement. D. For purposes of sections 28 and 29 of this Ordinance, the number of units means the maximum number of units authorized in an entitlement granted by the land use permitting authority for a development project, regardless of whether construction or rehabilitation proceeds in phases or project ownership is divided. E. The Designated Enforcement Agency ("DEA") shall have authority to enforce Labor Code sections 1720-1815, as amended from time to time, for projects funded by the tax imposed by this Ordinance. Any developer, contractor, or subcontractor as to such projects shall be required to cooperate fully in any investigation the DEA initiates. For projects located in the City of Los Angeles, the DEA shall be the Department of Public Works, Bureau of Contract Administration. For projects elsewhere, the contracting Funding Recipient shall act as or designate the DEA. The DEA shall be authorized to work with joint labor management committees established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. section 175a) in order to carry out the enforcement/investigation duties under this Ordinance. A joint labor management committee may bring an action in any court of competent jurisdiction against an employer that fails to comply with the labor standards required under this Ordinance. F. Notwithstanding subsection C of this section, if a project labor agreement is agreed between the Funding Recipient or project developer, the Los Angeles/Orange Counties Building and Construction Trades Council, and the Western States Regional Council of Carpenters, then a project with 40 or more units is eligible to receive funding or financing from this Ordinance if all construction and rehabilitation is subject to that project labor agreement. G. For purposes of this Ordinance, "project labor agreement" has the meaning stated in subdivision (b)(1) of section 2500 of the Public Contract Code. Exhibit C-1 Packet Pg. 63 6.a EXHIBIT C-2 Government Code Section 64720.5 64720.5. (a) Any construction or rehabilitation project receiving funding or financing from the agency, a measure proposed by the agency pursuant to subdivision (a) of Section 64720, or a joint powers authority of which the agency is a member, including, but not limited to, a project with under 40 units, shall constitute a public work for which prevailing wages shall be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (b) A project with 40 units or greater is eligible to receive funding or financing from the agency, a measure proposed by the agency pursuant to subdivision (a) of Section 64720, or a joint powers authority of which the agency is a member, only if all construction and rehabilitation is subject to the City of Los Angeles Department of Public Works PLA. For purposes of this subdivision and subdivision (c), the number of units means the maximum number of units authorized in an entitlement granted by the land use permitting authority for the development project, regardless of whether construction or rehabilitation proceeds in phases or ownership is divided. (c) Notwithstanding subdivision (b), if a specific countywide project labor agreement is negotiated with mutual agreement between the Los Angeles/Orange Counties Building and Construction Trades Council and the Southern California Association of Nonprofit Housing and approved by the agency, then a project with 40 units or greater is eligible to receive funding or financing from the agency, a measure proposed by the agency pursuant to subdivision (a) of Section 64720, or a joint powers authority of which the agency is a member, only if all construction and rehabilitation is subject to the specific countywide project labor agreement rather than the Department of Public Works PLA. (d) For purposes of this section, "project labor agreement" has the same meaning as in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code. (e) For purposes of this section, "Department of Public Works PLA" means the City of Los Angeles Department of Public Works Project Labor Agreement 2020-2030 with Los Angeles/Orange Counties Building and Construction Trades Council, effective August 25, 2021. (Added by Slats. 2022, Ch. 661, Sec. 1. (SB 679) Effective January 1, 2023) Exhibit C-2 Packet Pg. 64 6.a EXHIBIT C-3 Measure A Section 27 SECTION 27. IMPROVING RECRUITMENT AND RETENTION OF HOMELESSNESS SERVICE AND PREVENTION WORKERS. A. All contracts funding social services positions, including but not limited to homelessness services and eviction prevention workers, financed by the tax imposed by this Ordinance must: Set sufficient payment rates to enable contractors to pay wages aligned with public and private market conditions; 2. Allow amendments, as needed, to provide that incentives and wage increases for cost of living similar to those offered to County staff and/or Los Angeles Homeless Services Authority staff are also available to service provider and prevention worker staff, Allow annual adjustments to reflect cost -of -living adjustments, increases in administrative allowances, and operational cost changes due to inflation or other factors (such as supply shortages, insurance market changes, etc.); 4. Be paid in a timely manner to prevent unnecessary cost increases borne by service providers; and Not result in displacement of public employees. Multi -year contracts are encouraged to support system, service delivery, workforce, and nonprofit service provider stability. B. By June 30, 2025, the County shall establish a labor council with equal representation from organized labor and nonprofit social service provider leadership to discuss pay equity and career development at contracted service providers, especially with regard to racial disparities and for those with lived experience of homelessness. This council shall make recommendations to the Board of Supervisors on issues related but not limited to all levels of compensation, wages and benefits, and appropriate pay ranges as compared to County employees performing similar work, including the feasibility of contracts for social services positions financed by this Ordinance meeting or exceeding area wage standards, pay equity for service provider staff, and the allowance of cost -of -living adjustments. The labor council shall provide initial recommendations to the Board of Supervisors by June 30, 2026. C. Every three years, the Chief Executive Officer shall conduct a review every three years of current payment rates across service types (such. as interim housing bed rates) to inform rate changes and, every five years, shall review current administrative rates allowed in service contracts compared with industry standards and best practices. Exhibit C-3 Packet Pg. 65