LAHD briefed committee on Measure ULA revenue, spending and 'Super NOFA' plan; homelessness prevention pilots under way

The Los Angeles Housing Department told a City Council committee on April 2 that Measure ULA revenue is trending upward and that the department plans to issue a consolidated "Super NOFA" this spring to allocate funds across several program categories.

Greg Goode, LAHD's director of strategic engagement and policy, reported the department received just short of $33,000,000 in ULA revenue in March and said total revenue for the fiscal period tracked in the presentation was over $320,000,000 for the current fiscal year and more than $632,000,000 overall since collections began. He noted the total is below the ballot measure's highest initial expectations but represents a significant new local funding stream for affordable housing and homelessness prevention.

Goode explained Measure ULA's spending structure: after an 8% administrative set-aside, 70% of revenue is mandated for affordable housing production and 30% for homelessness prevention. LAHD said the only ULA production program that had been authorized and spent funds in the earliest phase was the multifamily affordable housing program, where $55,600,000 in allocations were authorized for FY 2023-24. Those funds provided gap financing or commitments that allowed nine projects to proceed, producing or supporting 795 units overall; four projects described as "category A" accounted for 364 new units currently in construction and nearing completion, and five "category B" projects in predevelopment are expected to generate 431 units once financed.

To accelerate deployment across program areas, LAHD described plans for a consolidated solicitation the department called a "Super NOFA." The Super NOFA would include term sheets for the multifamily affordable housing program and other ULA program categories, possibly including the affordable housing managed pipeline, and would consolidate loan limits, program specifications and application materials. LAHD told the committee it expects to present loan limits to the ULA Citizen Oversight Committee in April, transmit the Super NOFA to the council for approval in April or May, and aim to have the NOFA approved before the council's summer recess so that solicitations can be posted in the fall.

On homelessness prevention, LAHD provided updates on multiple pilots and contracts. The department said it shifted funds in year one to create a $30,000,000 short-term emergency assistance pool; that pool saw nearly a half-billion dollars in demand and has been zeroed out in planning for fiscal year 2024-25, although LAHD told the committee it expects there may be money available in 2025-26 as revenue rises. LAHD also launched an income support pilot for rent-burdened seniors and people with disabilities, funded with $11,000,000 and providing a one-time $20,000 benefit intended to serve roughly 500 households; as of April 2, the department said 28 participants had received payment and another 63 were expected to receive payment within about a week, while 985 pre-eligible applicants were pending verification.

LAHD reported other prevention work drawing on ULA funds, including eviction defense contracts (Legal Aid Foundation of Los Angeles) and tenant outreach efforts that the department said have produced thousands of workshops and tens of thousands of tenant engagements. On tenant protections from harassment, LAHD said it has hired eight of the 10 positions the council authorized and was finalizing an RFP for a $3,000,000 pilot for proactive civil litigation.

Committee members pressed LAHD on timeline risks and tenant selection. LAHD said term sheets and program guidelines were negotiated with the Citizen Oversight Committee and that the Super NOFA would shorten review time by consolidating materials, but committee members urged LAHD to ensure council has adequate review time in May and June, noting that the budget cycle and summer recess could compress committee availability. On tenant selection, LAHD said affirmative marketing requirements will apply and that selection rules can vary depending on project funding stacks (for example, if federal tax credits or vouchers are involved); LAHD said it would report back on whether ULA-funded projects could adopt additional local tenant-selection preferences.

LAHD director Goode said he would leave his post April 18 and encouraged the committee to continue close collaboration with the oversight committee and city departments to implement Measure ULA. The committee took no formal vote on the ULA overview; members directed LAHD to return with required materials and timelines for Council and COC review.