Long Beach amends Housing Trust Fund to qualify for state grants

An aerial view of some of the houses within the newly formed Nehyam Historic District along the 6000 block of Walnut Avenue in North Long Beach on March 16, 2022. Most of the homes on this block are from the 1920s and ’30s in the minimalist traditional style. (Richard H. Grant | Signal Tribune)

The changes incentivize the City to prioritize low-income and extremely low-income households.

In an effort to increase its chances for state funding, Long Beach City Council voted to update its Housing Trust Fund guidelines at its meeting Tuesday night. 

The Housing Trust Fund (HTF) was approved by the council on Oct. 11, 2005. The goal of the HTF is to “meet the housing needs of the city’s extremely low and above-moderate income households” through housing assistance and homeownership opportunities, according to a representative from the Community Development Department. 

The fund was created with $250,000 from the Douglas Park project mitigation fund and $500,000 from transient occupancy taxes from Fiscal Years 2005 and 2006. 

A member from the Community Development Department said the two projects that have been funded through the HTF are a mobile home repair grant program and second mortgage assistance—currently, $33,000 remains in the trust fund. 

Funds can be used on construction loans, loans for the costs associated with development or rehabilitation of affordable rental housing projects as well as emergency shelters, permanent supportive housing, transitional housing and the construction of Accessory Dwelling Units. 

The Motel 6 Long Beach site located at 5665 East 7th Street was purchased by the City and used as an Interim Shelter site before being converted to permanent supportive housing. (Signal Tribune File Photo)

Since its inception, Long Beach’s HTF has not been eligible to receive funding from the California Department of Housing and Community Development’s Local Housing Trust Fund Program. The program helps by providing matching funds toward the creation, rehabilitation or preservation of affordable housing, transitional housing and emergency shelters. 

According to Community Development Director Christopher Koontz, Long Beach’s HTF “hasn’t been structured in a way to get matching funds.” City Council is hoping to receive these funds by updating their “goal populations,” meaning the groups they aim to assist through the HTF. 

Previous guidelines for the HTF stated that at least half of the funds must be used to assist extremely low-income households, while the other 50% must go to above moderate-income households. 

The new guidelines for the Housing Trust Fund are as follows: 

  • At least 30% of the funds must be used on assisting extremely low-income households. 
  • No more than 20% of the funds can be used on moderate-income households. 
  • The remaining funds must be used on lower-income households. 

Councilmember Kristina Duggan asked Community Development Department members what plans exist surrounding the funding, and the department said there are no plans at the time. 

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