Affordable Housing

The City strives to produce housing for low- and very low-income households to the greatest extent possible through Affordable Housing Production Program (AHPP) restrictions on the development of real property, loans to nonprofit developers available through City housing trust funds, and the pursuit of new resources to replace lost redevelopment housing funds. 

Sustained upward pressure on real estate prices and a loss of redevelopment funds have severely reduced the availability of affordable housing. Historically, the funding for subsidizing nonprofit developments, which have produced the majority of affordable housing, came from a Housing Trust Fund created by the Redevelopment Program. The dissolution of the Redevelopment Agency in February 2012 has meant the subsequent loss of funding for affordable housing. Without a new source of funding dedicated to subsidize nonprofit affordable housing, staff anticipates significantly fewer affordable apartments being built in the future. 

However, the City’s legal protections for renters, including just-cause eviction protections, and the requirements of Proposition R have contributed to preserving affordable housing for low and very-low income tenants. In addition to preserving the existing stock of affordable rental units, the City continues to invest in the development of new affordable housing. 

[Note: The City’s previous success in producing housing units that are deed-restricted to be affordable for low-, very low- and extremely low-income households was dependent on Redevelopment funds. These funds were eliminated at the state level as part of the 2011 Budget Act in order to protect funding for core local services. ] 

In Fiscal Year 2018/2019, the City added 68 affordable housing units. Since 2013, the City has completed 650 affordable housing units. The 2020 target is to add a total of 691 affordable housing units in Santa Monica. These targets are based on the 2013-2021 Housing Element. 

Through its Housing Division, the City works with private nonprofit developers to develop affordable rental housing for low and moderate income households, including seniors, persons with disabilities, and families. The affordable housing in Santa Monica, developed in partnership with these nonprofits, is privately owned and managed by these organizations.

According to the Annual Reports concerning the Affordable Housing Production Program, 59% of all multifamily residences that were completed in FY 2018/2019 (68 of 116 residences completed) were affordable to low-income households, thereby exceeding both Proposition R requirements.