RESOLUTION NO. 8585 - AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A DISPOSITION, DEVELOPMENT, AND LOAN AGREEMENT (“DDLA”) WITH ABODE COMMUNITIES, A CALIFORNIA NONPROFIT ORGANIZATION, FOR THE DEVELOPMENT AND OPERATION OF AFFORDABLE HOUSING ON REAL PROPERTY IMMEDIATELY SOUTH OF 14115 CORDARY AVENUE (ASSESSOR PARCEL NUMBER 4051-030-902).
 

Background:
The property immediately south of 14115 Cordary Avenue (“Property”) was acquired by the former Hawthorne Community Redevelopment Agency in 2011 and remained with the City in its role as the Housing Successor Agency. The Property is identified in the City’s certified Housing Element as an entitled or proposed residential development site suitable for housing development during the current planning period. On August 1, 2024, the City issued a Notice of Funding Availability and Request for Affordable Housing Proposals (“NOFA/RFP”) seeking a qualified developer to construct and operate affordable housing on the Property. Following evaluation of submitted proposals, the City selected Abode Communities (“Developer”), a California nonprofit organization with experience developing and operating affordable housing, and entered into an Exclusive Negotiating Agreement (“ENA”) on June 24, 2025 to negotiate the terms of a future Disposition, Development, and Loan Agreement (“DDLA”).

Draft DDLA:
Since the execution of the ENA, City staff and the Developer have engaged in good faith negotiations and have arrived at a draft DDLA. The DDLA establishes the general terms and conditions under which the Property would be leased to the Developer for the development and long-term operation of an affordable housing project. Key elements of the draft DDLA include:

• A 55-year ground lease of the Property for affordable housing purposes;
• Development of 93 affordable residential units, affordable to households earning 30%-70% Area Median Income (“AMI”);
• A City funding commitment of $7,000,000 from City sources, including the Low- and Moderate-Income Housing Asset Fund and Permanent Local Housing Allocation (“PLHA”) funds; and
• Ongoing affordability and operational covenants to ensure compliance with City and funding source requirements.

The resolution before the City Council does not approve the DDLA in its current, draft form. Rather, it authorizes the City Manager to continue negotiations and to execute the final DDLA and related documents once all parties are satisfied with the agreement in the best interests of the City. The Developer is applying for funding offered by the Los Angeles County Affordable Housing Solutions Agency as part of its competitive Production and Preservation Notice of Funding Availability (“PPO NOFA”). City staff and the Developer expect that approval of this resolution would help the Developer’s application to meet all requirements and to make the application more competitive for the PPO NOFA.

Environmental Review:
Public Resources Code section 21080.66, enacted by Senate Bill 130 (SB 130), provides a statutory exemption from the California Environmental Quality Act (“CEQA”) for qualifying urban infill housing development projects that meet specified objective criteria. The Property qualifies for this statutory exemption based on its location, zoning, and identification in the City’s Housing Element. Adoption of the proposed resolution includes a finding that the project qualifies for this CEQA exemption.

Consistency with City Goals:
Approval of the resolution supports the City Council’s adopted housing policies and Housing Element goals by facilitating the development of new affordable housing on City-owned land. The project advances the City’s objectives related to housing production, affordability, and use of publicly owned property to address local and regional housing needs.
 

Not Applicable

Approval of the resolution authorizes the City Manager to negotiate and execute a DDLA that includes a City funding commitment of up to $7,000,000, subject to the final terms of the agreement. Funding is anticipated to be provided from the City’s Low- and Moderate-Income Housing Asset Fund and Permanent Local Housing Allocation (PLHA) funds.
The timing of expenditures, repayment terms, and long-term fiscal impacts will be governed by the final DDLA. No immediate General Fund impact is anticipated as a result of this action.
 

72 hours posted notice pursuant to the Ralph M. Brown Act.