El Segundo planning commission reviews affordable housing strategic plan and funding options

El Segundo Planning Commission members on Jan. 23 received an update and study-session briefing on the city’s Affordable Housing Strategic Plan and options for using a $5.3 million developer in‑lieu payment, consultants with RSG and city staff said.

The presentation, led by Jim Simon, principal with RSG, summarized funding options, state programs and legal constraints and flagged that the single local trust balance would not by itself satisfy many competitive grant programs. “You have $5,300,000 held in a trust for future housing activities,” Simon said, adding that the city lacks an ongoing revenue stream that many state matching programs require.

Why it matters: the plan is intended to guide how El Segundo spends existing developer funds, seeks new revenue sources and structures programs to produce affordable units. Commissioners discussed tenant‑preference (sometimes called “live‑work”) policies, potential legal risk under the federal Fair Housing Act, and administrative burdens of running ongoing preference lists.

Funding and program options

RSG walked commissioners through HCD and regional programs that could be combined with the city’s funds. Simon noted the city could apply for a variety of programs but that many are competitive and favor jurisdictions with larger, ongoing local revenue sources.

- Permanent Local Housing Allocation (PLHA): generated from a $75 recording fee countywide; Simon said El Segundo’s recent share would have been roughly $35,000, making PLHA a limited option on its own.

- SCAG’s Regional Early Action Planning (REAP 2.0): described as a potentially more substantial source for projects that…