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CC - CONSENT ITEM: (1) Approval of an Affordable Housing Property Disposition Agreement Between the City and Actors Fund Housing Development Corporation for the Construction of a Mixed-Use Affordable Housing Project at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925) and (2) Adoption a Resolution Approving Actors Fund Housing Development Corporation’s Application for Housing Development and Finance Committee Funding.

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Meeting Date: September 28, 2026

Contact Person/Dept.:                       Diane Glauber, Housing & Human Services Director

                                                                                    Emily Stadnicki, Planning & Development Director

                                                                                    Christina Burrows, Assistant City Attorney

Phone Number:  (310) 253-6000

Fiscal Impact:  Yes [X]    No []                                          General Fund:  Yes []     No [X]

Attachments:   Yes [X]     No []   

Public Notification:   (E-Mail) Meetings and Agendas - City Council (09/24/2026)  

Department Approval: Heather Baker, City Attorney (09/20/2026), Adam Troy, Assistant City Manager (09/24/2026)

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RECOMMENDATION

Staff recommends the City Council (1) approve an Affordable Housing Property Disposition Agreement with Actors Fund Housing Development Corporation for the Construction of a Mixed-Use Affordable Housing Project at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925); and (2) adopt a resolution approving Actors Fund Housing Development Corporation’s Application for Housing Development and Finance Committee Funding

BACKGROUND

The City-owned property at 10401 Virginia Avenue (the “Property”) has historically been used as a parking lot to satisfy a redevelopment-era contractual obligation to provide parking for adjacent businesses.  In 2023 the City opened the Wellness Village interim housing site on a portion of the Property, with the remaining portion of the Property continuing to be used as a parking lot for adjacent businesses.

On December 6, 2023, the Actors Fund Housing Development Corporation (“AFHDC”) submitted a request for an Exclusive Negotiating Agreement (“ENA”) to negotiate a lease of the Property for development of a mixed-use, multi-story building with 70-80 unit affordable housing units for families and artists on the upper floors, along with ground floor arts-focused community commercial space (the “Project”).

In 2024, the AFHDC developed and opened a 151-unit all-affordable residential building in Hollywood (City of Los Angeles) that provides affordable housing units for arts and entertainment professionals. It is envisioned that a Culver City housing development would offer similar types of affordable housing.

On March 17, 2025, the City Council declared the Property exempt surplus land and approved an ENA with AFHDC to negotiate a lease for the Property.

In September 2026 AFHDC received its Project entitlements from the City.

DISCUSSION

Affordable Housing Property Disposition Agreement

The Affordable Housing Property Disposition Agreement (the “Agreement”) has the following terms:

Site Control

The Agreement gives AFHDC evidence of site control in order to allow AFHDC to apply for additional sources of funding.  Once funding has been acquired, including the allocation of tax credits by the California Tax Credit Allocation Committee (TCAC), the Agreement authorizes the parties to enter into a 99-year lease agreement. 

Regulatory Structure

The residential portion of the Project will be 100% affordable.  It is anticipated that the funding sources, including Low Income Housing Tax Credits (“LIHTC”) will impose affordability restrictions on the Project.

In addition, the City and AFHDC will enter into a regulatory agreement which will specify, among other requirements, eligible occupancy standards, maximum affordable rents, and minimum operating and replacement reserves.

Funding

AFHDC is proposing to apply for the following funding sources:

•                     Los Angeles County Affordable Housing Solutions Agency (“LACAHSA”)

•                     Housing Development and Finance Committee (“HDFC”)

•                     California Debt Limit Allocation Committee (“CDLAC”)/California Tax Credit Allocation Committee (“TCAC”)

Timing

The Agreement gives AFHDC until December 2027 to receive complete funding for the Project and close on the deal.  If AFHDC has not received complete funding by that date, the Agreement authorizes the City Manager to extend the term of the Agreement for up to an additional 12 months.

Termination

The Agreement allows AFHDC to terminate the Agreement in the event AFHDC determines that the Project is infeasible.

Approval of AFHDC’s Funding Application to Housing Development and Finance Committee

The Project will be applying in the first round of Housing Development and Finance Committee (“HDFC”) funding, which is anticipated to open in January 2027. HDFC is a newly formed entity that serves as California’s central body for the state’s multifamily affordable housing finance system by administering multifamily housing finance programs and coordinating funding resources across multiple state entities. The goal is to streamline the state’s developer-facing, multifamily affordable housing funding programs and improve the transparency of affordable housing policy, awards, and appeals decisions.

Within the California Housing and Homelessness Agency, HDFC coordinates with the Department of Housing and Community Development (HCD), the California Housing Finance Agency (CalHFA), and the California Interagency Council on Homelessness (Cal ICH).

Staff recommends the City Council adopt a resolution approving AFHDC’s application to HDFC for project funding.

FISCAL ANALYSIS

The anticipated lease of the Property to AFHDC is not anticipated to have any financial impact on the City.

ATTACHMENTS

1.                     2026-09-28_ATT_City Council Resolution Approving Actors Fund Housing Development Corporation’s Application for Housing Development and Finance Committee Funding

recommended action

MOTION(S)

That the City Council:

1.                     Approve an Affordable Housing Property Disposition Agreement between the City and Actors Fund Housing Development Corporation for the Construction of a Mixed-Use Affordable Housing Project at 10401 Virginia Avenue (APNs 4209-027-905, 4209-029-900, 4209-029-923, 4209-029-924 & 4209-029-925);

2.                     Authorize the City Attorney and City Manager to finalize the terms of the Affordable Housing Property Disposition Agreement;

3.                     Authorize the City Manager to execute the Affordable Housing Property Disposition Agreement on behalf of the City; and

4.                     Adopt a Resolution Approving Actors Fund Housing Development Corporation’s Application for Housing Development and Finance Committee Funding.