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HA - CONSENT ITEM: (1) Award of 42 Project-Based Vouchers to Community Corporation of Santa Monica for the Jubilo Village 95-Unit 100% Affordable New Construction Project; and (2) Approval of an Agreement to Enter into a Housing Assistance Payments Contract.
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Meeting Date: April 28, 2025
Contact Person/Dept.: Tevis Barnes/Assistant Executive Director Culver City Housing Authority/Housing and Human Services
Phone Number: (310) 253-5780
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: Community Corporation of Santa Monica (02/19/2025), Entertainment Community Fund/ Kingdom Development, Inc. (02/19/2025); (E-Mail) Meetings and Agendas - City Council (04/23/2025).
Department Approval: Tevis Barnes, Assistant Executive Director Culver City Housing Authority/ Housing and Human Services Director (04/07/2025)
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RECOMMENDATION
Staff recommends that the Culver City Housing Authority Board (Board) (1) award 42 Project-Based Vouchers (PBVs) to Community Corporation of Santa Monica (CCSM) for the Jubilo Village 95-Unit 100% Affordable New Construction Project; and (2) approve entering into an Agreement to Enter into a Housing Assistance Payments Contract (AHAP).
BACKGROUND/DISCUSSION
The US Department of Housing and Urban Development Department (HUD) provides funding for affordable housing production through PBVs. In Fall of 2024, the Culver City Housing Authority (CCHA) was approved by HUD to issue up to 50 PBVs. PBVs provide developers/owners with a set amount of funding per affordable unit, reducing the rent that unit’s tenant must pay, and providing a consistent income stream to the developer/owner. PBVs are part of the way affordable development projects are financed and built. CCHA administers the PBV program for HUD in Culver City. HUD must approve CCHA’s budget authority to support the annual PBV rental subsidies.
Per HUD regulations, the issuance of PBVs occurs via a competitive process. At its regular meeting on November 11, 2025, the CCHA Board authorized the release of a Request for Proposals (RFP) to award up to 50 Section 8 Housing Choice Voucher (HCV) PBVs for the creation of affordable housing units through new construction or substantial rehabilitation.
On December 2, 2024, the CCHA invited owners/developers of multi-family rental projects to submit proposals to receive project-based voucher assistance. Project-based voucher assistance was available for up to 50 units under the RFP. The funding was to be committed to specific units for up to 20 years.
Applications under the CCHA PBV RFP were due on January 9, 2025. There was a total of two submissions. Submissions were evaluated by CCHA staff. Each submission was evaluated on the criteria listed below:
• Experience/ Administrative Capacity- Experience creating affordable housing units and working with PBVs. Submission must show evidence of being able to bring the project to completion and properly manage the completed project per HUD PBV rules/regulations and other requirements set by the Authority.
• Need- The extent to which the proposed housing project addresses the housing needs and proposes to provide permanent supportive housing intended to serve homeless individuals and families.
• Financial/Marketability- The proposed project’s operating budget evidence project financial stability and sustainability. Proposed rents and expenses are reasonable per market standards. Replacement and operating reserves are adequate.
CCSM submitted an application for 42 PBVs for the Jubilo Village Project. Jubilo Village is a proposed new construction multi-family 100% affordable housing development at 4464 Sepulveda Boulevard that will provide 93 affordable one, two and three-bedroom apartments to at-risk and low-income households (“Project”). The Project will be service-enriched and provide onsite supportive services through a partnership with Upward Bound House, a Culver City local emergency shelter for homeless children and their families. In addition to providing residents with access to resources, the Project will also include onsite property management services. The Project will be developed in partnership with the property owner, Culver Palms United Methodist Church. Once completed, Jubilo Village will be the City’s second 100% affordable mixed-used project, the first being Tilden Terrace on Washington Boulevard.
On February 19, 2025, CCHA staff notified CCSM that their submission for the Jubilo Village Project was selected to be awarded up to 42 PBV, subject to the final approval of the Board and entering into an AHAP. The developer/owner, CCSM, only requested 42 PBVs as part of their RFP submission. Because approximately 50% (43 units) of the Project will serve the unhoused, deeper rental subsidies will be needed to support these households. The value of a PBV is variable and depends on the size of the unit it is supporting and that unit’s affordability level. While Culver City was approved by HUD for budget authority “up to” 50 PBV, given the value of the 42 PBVs requested by CCSM, no additional budget authority remains in CCHA’s budget to grant additional PBVs.
Agreement to Enter Into a Housing Assistance Payments Contract
Staff recommends that the Board award CCSM 42 PVBs for the Jubilo Village new construction project and enter into an AHAP. The purpose of the AHAP is to create a formal agreement between the public housing authority and the project developer/owner before construction begins. Construction cannot start before the execution of the AHAP.
The AHAP is a form prescribed by HUD. The AHAP stipulates the conditions under which the developer/owner agrees to construct the units to be subsidized and under which the CCHA agrees to subsidize the units upon satisfactory completion of construction. All units must meet HUD-established Housing Quality Standards (HQS) inspection and other requirements such as local codes before assistance can commence.
The terms of the AHAP are detailed below:
• Date of Project Commencement.
• Project Construction Schedule - including completion date.
• Description of Work - including working drawings and specifications.
• Description of Housing - including total number of units, number of contract units by area (size) and number of bedrooms and bathrooms, services, maintenance or equipment supplied by the developer/owners without charges to the tenant, rent schedule, estimated initial rent to developer/ owner for the contract units.
• Acknowledgement that the CCHA must inspect and accept the completed product.
• CCHA approval to entering into a Housing Assistance Payment (HAP) Contract.
Housing Assistance Payment Contract
Upon meeting all requirements, a HAP Contract will be executed between CCHA and the owner/developer for the specified units for a term of up to 20 years, as determined by the CCHA. The HAP Contract establishes the initial rents for the units and describes the responsibilities of the CCHA and the developer/owner. All HAP Contract renewals are contingent upon the future availability of the appropriated HUD funds for the Section 8 HCV Program.
The 42 PBVs requested by CCSM are expected to provide the Project with an annual income stream of approximately $824,976 per year for 20 years, with annual increases as allowed by HUD. Funding is not released until the project is completed and approved for occupancy.
FISCAL ANALYSIS
Based on an analysis performed by the CCHA’s financial consultant, Keyser Marston and Associates (KMA) and through discussion with the HUD Los Angeles Field Office, the CCHA has the budget authority to provide up to 50 PBVs for an estimated annual subsidy of $825,000 annually. However, to reiterate, given the value of the 42 PBVs requested by CCSM, no additional budget authority remains in CCHA’s budget to grant additional PBVs or any other housing vouchers.
Entering into an AHAP with CCSM does not impact the City’s General Fund. Funding for the PBV is through the CCHA HUD Annual Contribution Contract (ACC) as part of the Section 8 HCV Program.
Entering into an AHAP with CCSM will impact the amount of remaining funding available through the City’s Section 8 HCV program. Once Jubilo Village is completed, it is anticipated that CCHA will not have additional budget through its ACC from HUD to issue any additional Housing Choice Vouchers or Project Based Vouchers for 20 years post-construction. A significant portion of the City’s Section 8 budget will be directed towards Jubilo Village ($825,000 of approximately $1.2 million).
There are at least two other potential Culver City affordable housing projects that have expressed interest in PBVs from Culver City in the future. These include the Entertainment Community Fund project proposed for the City’s Virginia Avenue Parking Lot, and a project contemplated by the California Community Foundation. The Entertainment Community Fund was the other applicant for PBVs during the City’s December 2024 RFP, but staff is not recommending awarding its project PBVs at this time due to the project not being anticipated to be completed within the required 24-month timeframe. Should the City award the 42 PBVs to CCSM, Culver City will not have sufficient funding available through its ACC from HUD to issue any Project Based Vouchers for either of the Entertainment Community Fund or California Community Foundation projects.
ATTACHMENT
None.
MOTIONS
That the Culver City Housing Authority Board:
1. Award 42 Project-Based Vouchers to Community Corporation of Santa Monica (CCSM) for the Jubilo Village 95-Unit 100% Affordable New Construction Project;
2. Approve entering into an Agreement to Enter into a Housing Assistance Payments Contract with CCMC; and
3. Authorize the City Attorney/Housing Authority General Counsel to prepare/review the necessary documents; and
4. Authorize the City Manager/Housing Authority Executive Director to execute such documents on behalf of the City.