Glendale council notes FY 2023–24 Low‑ and Moderate‑Income Housing Asset Fund report after auditors find shortfall on extremely low‑income spending

The Glendale City Council voted to note and file the fiscal year 2023–24 Low and Moderate Income Housing Asset Fund (LMIHAF) Annual Report, a report required by state law that outlines deposits, expenditures and statutory tests for who benefits from the fund.

City Manager Galania introduced the report and asked Pam Jackson, the city's housing coordinator, to present the findings. Jackson told the council the LMIHAF received $263,000 in deposits in 2023–24, down from $779,000 the previous year, and that the fund's balance fell to about $4.2 million at the end of the fiscal year. "The state requires us to annually report deposits and expenditures into the fund and perform tests to show who benefits from the fund," Jackson said. She said the city expended $1.5 million during the year, including about $1 million in construction costs for two new affordable housing projects, Harrower Village and Citrus Crossing.

Jackson also reported the fund did not meet the state's five‑year extremely low income housing test: "We performed the test and this year we did not meet the requirement. Sixteen percent of our low mod dollars went toward 30% of AMI households," she said. Under state rules, a jurisdiction must spend at least 30% of such funds on rental housing for households at or below 30% of area median income over a five‑year period; failing that can change future spending requirements.

The report said the fund carries a committed annual reservation of $1.2 million for the Doran Gardens program, in which the city or its service provider acquires condominium units and resells them to moderate‑income first‑time buyers. Jackson explained the reservation and five years of administrative expense reserves are reasons the city does not anticipate funding new programs from the LMIHAF in the near term. She warned revenue will continue to decline as long‑term loans from an earlier first‑time‑buyer program reach maturity and are forgiven: "Beginning this October, the first borrowers from that program reached the 30 year mark on their loans, which means their loans are now forgiven, and we no longer get those monthly interest only payments."

Council members asked several questions about the fund's flexibility and administration. Mayor Asatrian said he wanted the fund's benefits to go "directly to the community" and asked whether the LMIHAF could be used for rent‑assistance programs targeted at very low‑income households rather than only development projects. Jackson replied that such a use might be possible but would require a closer analysis of the fund and the city's ability to pay staff to administer a program, noting the revenue decline would limit how long any new commitment could be sustained. Jackson said the fund currently helps pay contract services and portions of five housing‑division positions and that, at the current burn rate, the fund could cover administrative costs for a little less than four years.

Council members also raised optics and policy concerns about reserving LMIHAF dollars for staffing while housing needs persist. Jackson and City Manager Galania said the city would research options and come back with analyses of whether the LMIHAF could support rental‑assistance programs and what alternative sources would be needed to fund administration.

With no public comment, the council voted to note and file the FY 2023–24 LMIHAF Annual Report in accordance with California Health and Safety Code 34176.1(f). The motion passed on roll call; the vote recorded as five yes, zero no.

The council directed staff to return with additional analysis on potential program uses for the fund and on the administrative funding implications if LMIHAF dollars were redirected.

The meeting record shows the council considered only this item during the joint session before adjourning to closed session.