Council adopts city-assisted affordable housing 'live‑work' preference, increases set‑aside to 20%

The El Segundo City Council adopted a resolution June 3 establishing a live‑work preference policy for future city‑assisted affordable housing projects, with modifications to the proposal presented by staff and consultants.

The policy, developed with consultant RSG and vetted by the Planning Commission, directs that for qualifying city‑assisted projects a portion of deed‑restricted units be prioritized for households that either live or work in El Segundo. RSG senior analyst Jillian Glickman summarized fair‑housing constraints and said local preference policies must avoid disparate impacts on federally protected classes. "Local preference policies can have consequences that cause discrimination even if unintended," she said, explaining HUD scrutiny of neighborhood preference set‑asides.

The Planning Commission recommended a 15% set‑aside and included optional additional preference for public‑service employees. At council, members debated the size and scope of the preference and the legal risk of neighborhood‑based preferences. Council Member Drew moved to adopt the policy, remove an extra preference specifically for city and school employees (noting employees already qualify under the "work in city" criterion), and increase the set‑aside from 15% to 20%. The motion passed. Staff and consultants said the policy applies only to projects that receive city assistance (financial assistance, fee waivers, development agreements or other in‑kind support) and must comply with federal and state fair‑housing laws.

Council members and staff emphasized the measure is modest relative to overall housing needs but is intended to help local residents and workers access some units in future city‑assisted projects. Staff said implementation will rely on project owners at lease‑up and include marketing, eligibility lists and lottery procedures where multiple equally eligible applicants apply.