COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY of the County of Los Angeles

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1 COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY of the County of Los Angeles 700 W. Main Street Alhambra, CA Tel: TDD: lacdc.org hacola.org Hilda L. Solis Mark Ridley-Thomas Sheila Kuehl Janice Hahn Kathryn Barger Commissioners Monique King-Viehland Executive Director AGENDA FOR THE REGULAR MEETING OF THE LOS ANGELES COUNTY HOUSING COMMISSION WEDNESDAY, FEBRUARY 27, 2019 (12:00 PM) CDC/HACOLA HEADQUARTERS 700 W. MAIN STREET ALHAMBRA, CA (626) Call to Order 2. Roll Call Ruthie Myers, Chair Gesele McBroom-Marsh, Vice Chair Marnell Banks James Brooks Mary Canoy Zella Knight Val Lerch Vanessa Luna Henry Porter Jr. Takao Suzuki Pamela Williams 3. Reading and Approval of the Minutes of the Previous Meeting Regular Meeting of January 23, Report of the Executive Director 5. Presentations Family Self-Sufficiency graduate Laitonya Waller We Boiyi Better Lives X Better Neighborhoods

2 6. Public Comments The public may speak on matters that are within the jurisdiction of the Housing Commission. Each person is limited to three minutes. Regular Agenda 7. Approve the Annual Plan for the Housing Authority of the County of Los Angeles (All Districts) Recommend that the Board of Commissioners find that the activities in the Annual Plan are not subject to the provisions of the California Environmental Quality Act because they will not have the potential for causing a significant effect on the environment; recommend that the Board of Commissioners approve the Annual Plan, as required by the U.S. Department of Housing and Urban Development (HUD), to update the Housing Authority's program goals, major policies and financial resources, including the Capital Fund Program (CFP) Annual Statement, the Admissions and Continued Occupancy Policy (ACOP) for the Public Housing Program, the Public Housing Lease Agreement, and the Housing Choice Voucher Program (HCV) Administrative Plan; recommend that the Board of Commissioners adopt and instruct the Chair to sign a Resolution approving the Annual Plan for submission to HUD, and authorize the Executive Director or her designee to take all actions required for implementation of the Annual Plan; recommend that the Board of Commissioners authorize the Executive Director or her designee to execute all documents required to receive HUD allocated CFP funds which are estimated to be approximately $4,800,000; recommend that the Board of Commissioners authorize the Executive Director or her designee to incorporate into the Annual Plan all public comments received and approved for inclusion by the Board; and authorize the Executive Director or her designee to submit the Annual Plan to HUD by April 17, Adopt Resolution Authorizing Issuance of Tax-Exempt Multifamily Housing Mortgage Revenue Bonds for Multifamily Housing in Unincorporated Florence Firestone (District 2) Recommend that the Board of Commissioners find that adoption of a Resolution is not subject to the provisions of the California Environmental Quality Act because the action will not have the potential of causing a significant effect on the environment; recommend that the Board of Commissioners adopt and instruct the Chair to sign a Resolution, as required under Section 147(f) of the Internal Revenue Code of 1986, authorizing the issuance of tax-exempt Multifamily Housing Mortgage Revenue Bonds (Bonds) by the Housing Authority of the County of Los Angeles, in an aggregate amount not exceeding $26,000,000 to Florence Fund, LP, or an affiliate or assignee thereof, to finance the site acquisition, construction and development of a 109-unit multifamily rental housing development to be located at East Florence Avenue in unincorporated 2

3 Florence Firestone; recommend that the Board of Commissioners authorize the Executive Director, or her designee, to negotiate, execute, and if necessary amend or terminate all related documents and take all necessary actions for the issuance, sale, and delivery of the Bonds. 9. Adopt Resolution Authorizing Issuance of Tax-Exempt Multifamily Housing Mortgage Revenue Bonds for Multifamily Housing in Unincorporated Willowbrook (District 2) Recommend that the Board of Commissioners find that adoption of a Resolution is not subject to the provisions of the California Environmental Quality Act because the action will not have the potential of causing a significant effect on the environment; recommend that the Board of Commissioners adopt and instruct the Chair to sign a Resolution, as required under Section 147(f) of the Internal Revenue Code of 1986, authorizing the issuance of tax-exempt Multifamily Housing Mortgage Revenue Bonds (Bonds) by the Housing Authority of the County of Los Angeles, in an aggregate amount not exceeding $10,000,000 to Whitfield Manor II, LP, or an affiliate or assignee thereof, to finance the site acquisition and rehabilitation of a 46-unit multifamily rental housing development to be located at South Compton Avenue in unincorporated Willowbrook; recommend that the Board of Commissioners authorize the Executive Director, or her designee, to negotiate, execute, and if necessary amend or terminate all related documents and take all necessary actions for the issuance, sale, and delivery of the Bonds. 10. Award a Construction Contract to Kisba Contracting, Inc. for a Unit Flooring Replacement Project at the South Bay Gardens Senior Public Housing Development (District 2) Recommend that the Board of Commissioners find that the approval of a Contract and the proposed Project for floor replacement and associated work at the South Bay Gardens senior public housing development is exempt from the provisions of the California Environmental Quality Act; recommend that the Board of Commissioners approve the proposed Project and adopt the plans and specifications that are on file in the Construction Management Unit of the Community Development Commission for construction of the Project; recommend that the Board of Commissioners authorize the Executive Director, or her designee, to award and execute a Contract in the amount of $405,960 with Kisba Contracting, Inc., the apparent lowest responsive and responsible bidder, for floor replacement and associated work at the South Bay Gardens senior public housing development in unincorporated Los Angeles County, following receipt of the acceptable Faithful Performance and Labor and Material Bonds and insurance filed by the Contractor; recommend that the Board of Commissioners authorize the Executive Director or her designee, upon her determination and as necessary and appropriate, to amend the contract, or to terminate the contractor's right to proceed with the performance of the Contract or to terminate the Contract for convenience; recommend that the Board of Commissioners authorize the Executive Director or 3

4 her designee to approve Contract change orders not to exceed $81,192, which represents 20% of the contract amount, for unforeseen project costs; recommend that the Board of Commissioners authorize the Executive Director to fund the Contract and contingency with a total of $487,152 in Community Development Block Grant funds allocated to the Second Supervisorial District by the U.S. Department of Housing and Urban Development and to incorporate all funds into the Housing Authority's approved Fiscal Year budget, as needed; recommend that the Board of Commissioners determine that the proposed Project is exempt from the application of the County's Local Targeted Worker Hire Policy because it is wholly funded with Federal funds, which prohibit geographic preferences. 11. Award Contracts to Floor Tech America Inc. and Midtown Carpet Company for Provide Floor Covering Services to the Housing Authority of the County of Los Angeles (All Districts) Recommend that the Board of Commissioners authorize the Executive Director or her designee to award and execute two one-year Contracts with Floor Tech America, Inc. and Midtown Carpet Company, the apparent lowest, responsive and responsible bidders, in the aggregate amount of up to $400,000, using funds included in the Housing Authority's Fiscal Year approved budget and Fiscal Year proposed budget, for floor covering services at public and affordable housing developments located throughout the County of Los Angeles; recommend that the Board of Commissioners authorize the Executive Director or her designee to execute amendments to the Contracts, following approval as to form by County Counsel, to extend the term for a maximum of four additional years, in one-year increments, with an annual aggregate compensation of up to $400,000, using funds to be included in the Housing Authority's annual budget approval process; recommend that the Board of Commissioners authorize the Executive Director, or her designee, upon determination and as necessary and appropriate under the terms of the Contracts, to amend or terminate the Contracts for convenience; recommend that the Board of Commissioners authorize the Executive Director or her designee to amend the Contracts to add or delete sites, modify the scope of work, and increase the annual compensation by up to 10% as needed for additional services; recommend that the Board of Commissioners find that approval of the Floor Covering Services Contracts is exempt from the provisions of the California Environmental Quality Act. 12. Housing Commissioners Comments or Suggestions for Future Agenda Items Copies of the preceding agenda items are on file and are available for public inspection between 8:00 a.m. and 5:00 p.m., Monday through Friday, at the Housing Authority's main office located at 700 W. Main St., Alhambra, CA Access to the agenda and supporting documents are also available on the Housing Authority's website. 4

5 Agendas in Braille are available upon request. American Sign Language (ASL) interpreters, or reasonable modifications to Housing Commission meeting policies and/or procedures, to assist members of the disabled community who would like to request a disability-related accommodation in addressing the Commission, are available if requested at least four (4) business days prior to the meeting. Later requests will be accommodated to the extent possible. Please contact the Executive Office of the Housing Authority by phone at (626) from 8:00 a.m. to 5:00 p.m., Monday through Friday, or by at nick.teske@lacdc.orq. 5

6 THE HOUSING AUTHORITY OF THE COUNTY OF LOS ANGELES MINUTES FOR THE REGULAR MEETING OF THE LOS ANGELES COUNTY HOUSING COMMISSION Wednesday, January 23, The meeting was convened at the Carmelitos housing development, located at 851 Via Carmelitos in Long Beach, California. Digest of the meeting. The Minutes are being reported seriatim. A taped record is on file at the main office of the CDC/HACoLA. The meeting was called to order by Vice Chair McBroom-Marsh at 12:05 p.m. Roll Call Present Absent Ruthie Myers, Chair X Gesele McBroom-Marsh, Vice Chair X Marnell Banks X James Brooks X Mary Canoy X Zella Knight X Val Lerch X Vanessa Luna X Henry Porter Jr. X Takao Suzuki X Pamela Williams X Partial List of Staff and Guests Present Emilio Salas, Deputy Executive Director Darlene Aikens, Acting Director of Housing Assistance Don Swift, Acting Director of Housing Operations Reading and Approval of the Minutes of the Previous Meeting On Motion by Commissioner Porter, seconded by Commissioner Suzuki, the Minutes of the Regular Meeting of November 28, 2018 were approved. 6

7 Agenda Item No. 4 Report of the Executive Director Deputy Executive Director Emilio Salas welcomed all attendees to the meeting. He introduced Don Swift as the Acting Director for the Housing Operations Division. Emilio reported that the Housing Choice Voucher Program ended 2018 with a lease-up rate of 92%, with 93% budget utilization. Although this is lower than past years, it is much higher than where we were earlier in 2018 and speaks to the efforts of staff to ramp up the lease up process for year-end. Emilio provided an update on the federal government shutdown and its impact on CDC/HACoLA. The shutdown was in its 33rd day as of January 23, Of particular concern were the Housing Assistance Payments for the month of March and beyond, which had not yet been disbursed by HUD. CDC/HACoLA does not have sufficient reserves to cover the approximately $23 million monthly payment to landlords if HUD is unable to disburse funds. CDC/HACoLA was coordinating with the Board of Supervisors and Chief Executive Office to secure County funding if needed to continue payments to landlords in the event of a prolonged shutdown. Emilio also reported on various ongoing advocacy efforts to mitigate the impact of the shutdown on HUD programs. Emilio informed the Commission about his upcoming advocacy trip to Sacramento with Supervisors Hahn and Solis. Priorities for CDC/HACoLA include pursuing funding for affordable housing and seeking legislation that would implement protections against source of income discrimination. Source of income protections would prevent renters from being denied housing based on their participation in federal, state, or local public assistance or housing subsidies programs, such as the Housing Choice Voucher Program. On July 24, 2018, CDC/HACoLA released the Affirmatively Furthering Fair Housing in Los Angeles County report, which comprises a detailed assessment on the County's current efforts to address discriminatory housing and lending practices to by incorporating practices and policies that actively create integrated communities. The report also contained recommendations for future activities that go beyond what is required by federal law. Emilio reported that the Board recently approved a motion by Supervisor Kuehl for CDC/HACoLA to report back with a plan to implement some of those recommendations. This will include a draft ordinance for source of income discrimination protections as well as a gentrification study to help inform possible actions we can take to prevent displacement. Emilio provided an update on CDC/HACoLA participation in Woolsey Fire recovery efforts. CDC/HACoLA had two teams that staffed two separate Disaster Recover Centers in Malibu and Agoura Hills daily during the entire month of December. CDC/HACoLA staff spoke to over 200 residents, applications for housing assistance were provided, and 64 eligible residents had received vouchers as of January 23, 2019, with three families having located available units. HACoLA will continue to provide vouchers to eligible residents affected by the Woolsey Fire. We have also submitted waiver requests tied to 7

8 these voucher holders, including increasing the payment standard to 140% of fair market rent, not requiring social security cards for a period of 90 days, and an exception to our occupancy standards. Agenda Item No. 5 - Presentations None Agenda Item No. 6 - Public Comments Donna Janet Harbor Hills resident Agenda Item No. 7 Award a Construction Contract to Pipe Restoration Inc. for the Nueva Maravilla Family Public Housing Development Plumbing Proiect (District 1) Commissioner Porter offered an amendment to stipulate that work under the proposed contract should not commence until water quality testing is completed. The amendment was seconded by Commissioner Brooks and unanimously approved. On motion by Commissioner Lerch, seconded by Commissioner Suzuki, the following was unanimously approved as amended: Recommend that the Board of Commissioners find that the approval of the Contract and the proposed Project to complete epoxy coating of existing copper pipes and associated work in 347 dwelling units at the Nueva Maravilla family public housing development is exempt from the provisions of the California Environmental Quality Act; recommend that the Board of Commissioners approve the proposed Project and adopt the plans and specifications that are on file in the Construction Management Unit of the Community Development Commission for construction of the Project; recommend that the Board of Commissioners award a Contract to Pipe Restoration Inc., the lowest responsive and responsible bidder, in the amount of $4,495,835 to complete epoxy coating of existing copper pipes and associated work at the Nueva Maravilla family public housing development in unincorporated East Los Angeles, and authorize the Executive Director, or her designee, to execute the Contract following receipt of the acceptable Faithful Performance and Labor and Material Bonds and insurance filed by the Contractor; recommend that the Board of Commissioners authorize the Executive Director or her designee, upon her determination and as necessary and appropriate, to amend the Contract, or to terminate the contractor's right to proceed with the performance of the Contract or to terminate the Contract for convenience; recommend that the Board of Commissioners authorize the Executive Director or her designee to approve Contract change orders not to exceed $899,167, which represents 20% of the $4,495,835 contract amount, for unforeseen project costs; recommend that the Board of Commissioners authorize the Executive Director to fund the Contract and contingency with a total of $5,395,002, comprised of $1,000,000 in Community Development Block Grant funds allocated to the First Supervisorial District by the U.S. Department of Housing and Urban Development (HUD), $1,653,256 in Capital Fund Program funds allocated by HUD, and $2,741,746 in net sale proceeds of a Housing Authority administrative building and 8

9 included in the Housing Authority's Fiscal Year amended budget approved on September 11, 2018, as needed; recommend that the Board of Commissioners determine that the proposed Project is exempt from the application of the County's Local Targeted Worker Hire Policy because it is wholly funded with Federal funds, which prohibit geographic preferences. Agenda Item No. 8 Authorize the Executive Director to Execute Interagency Agreements with Housing Agencies Adjacent to the County of Los Angeles for the Veterans Affairs Supportive Housing Program (All Districts) On motion by Commissioner Brooks, seconded by Commissioner Canoy, the following was unanimously approved: Recommend that the Board of Commissioners find that the execution of the mutual Veterans Affairs Supportive Housing (VASH) interagency agreements is not subject to the provisions of the California Environmental Quality Act (CEQA) because the activities are not defined as a project under CEQA; recommend that the Board of Commissioners authorize the Executive Director, or her designee, to execute the attached mutual interagency agreement with the Housing Authority of the County of Kern, as well as mutual interagency agreements with other housing agencies adjacent to the County of Los Angeles, utilizing the same or similar format, relating to the VASH program, as needed in order to maximize utilization of funding and allow program participants greater access to affordable housing, following approval as to form by County Counsel; recommend that the Board of Commissioners authorize the Executive Director, or her designee, to amend the attached mutual interagency agreement and future mutual interagency agreements to extend the term and to incorporate any other administrative provisions that may be required for the purposes described above, following approval as to form by County Counsel. Agenda Item No. 9 Adopt Resolution Declaring Intent to Issue Mortgage Revenue Bonds or Notes for Multifamily Housing in Unincorporated Florence-Firestone (District 2) On motion by Commissioner Porter, seconded by Commissioner Suzuki, the following was unanimously approved: Recommend that the Board of Commissioners find that adoption of this Resolution is not subject to the provisions of the California Environmental Quality Act because the action will not have the potential of causing a significant effect on the environment; recommend that the Board of Commissioners adopt and instruct the Chair to sign a Resolution, as required under Treasury regulations, declaring an intent by Miramonte PSH, L.P., or an affiliate or assignee thereof, to undertake bond financing in an amount not exceeding $12,000,000 to finance the site acquisition, construction and development of Miramonte Apartments, a 44-unit multifamily rental housing development to be located at 7321 Miramonte Boulevard in unincorporated Florence-Firestone; recommend that the Board of Commissioners authorize the Executive Director, or her designee to submit an 9

10 application to the California Debt Limit Allocation Committee for a private activity bond allocation on an aggregate amount not exceeding $12,000,000. Agenda Item No. 10 Adopt Resolution Declaring Intent to Issue Mortgage Revenue Bonds or Notes for Multifamily Housing in the City of West Hollywood (District 3) On motion by Commissioner Canoy, seconded by Commissioner Lerch, the following was unanimously approved: Recommend that the Board of Commissioners find that adoption of this Resolution is not subject to the provisions of the California Environmental Quality Act because the action will not have the potential of causing a significant effect on the environment; recommend that the Board of Commissioners adopt and instruct the Chair to sign a Resolution, as required under Treasury regulations, declaring an intent by 980 North Palm, LP, or an affiliate or assignee thereof, to undertake bond financing in an amount not exceeding $10,000,000 to finance the site acquisition and rehabilitation of Palm View Apartments, a 40-unit multifamily rental housing development located at 980 North Palm Avenue in the City of West Hollywood; recommend that the Board of Commissioners authorize the Executive Director, or her designee to submit an application to the California Debt Limit Allocation Committee for a private activity bond allocation on an aggregate amount not exceeding $10,000,000. Agenda Item No. 11 Housing Commissioner Comments and Recommendations for Future Agenda Items On motion by Commissioner Canoy, seconded by Commissioner Porter, the Regular Meeting of January 23, 2019 was adjourned at 2:00 p.m. Respectfully submitted, -VIEHLAND Ex cut ctor Secretary Treasurer 10

11 Community Development Commission/Housing Authority of the County of Los Angeles February 27, 2019 TO: FROM: Housing Commissioners Darlene Aikens, Acting Directo Housing Assistance Division RE: FSS PROGRAM UPDATE JANUARY 2019 The Family Self-Sufficiency (FSS) Program is a HUD initiative intended to assist Housing Choice Voucher and Public Housing participants achieve economic independence and self-sufficiency. NUMBER CURRENTLY ENROLLED ACTIVITIES 483 As of February 1, 2019, there were 418 Housing Choice Voucher (HCV) and 65 Public Housing (PH) FSS participants. NEW ENROLLMENTS 10 (9) FSS participants enrolled for Housing Choice Voucher (HCV) and - (1) for Public Housing (PH). CONTRACTS 8 (8) FSS contracts expired for Housing Choice Voucher (HCV) and (0) EXPIRED for Public Housing (PH). DIRECT ASSISTANCE As of January 31, 2019 REFERRALS 2227 Job Referrals/training 1086 EducationalNocational/Job Training 702 Work Source/Job Fairs 546 Youth Services 500 Credit Repair 428 Home Program/Seminars/Workshops Ownership 408 Financial Literacy 300 Health Services 147 Other/Utilities 64 Computer Training OUTREACH & 1 WCRC Network Meeting COMMUNITY EVENT 1 Rio Hondo Coordinating Committee 1 DPSS Network Meeting GRADUATIONS 1 (1) Request for Graduation for Housing Choice Voucher (HCV) and (0) for Public Housing (PH). If you have any questions, please feel free to contact me at (626) Attachment

12 FAMILY SELF-SUFFICIENCY (FSS) GLOSSARY OF TERMS Listed below are brief descriptions of each category in the monthly FSS Report. 1. Number Currently Enrolled Current number enrolled in the FSS program as of the date the FSS Report is presented. 2. New Enrollments - The number of Participants enrolled in the FSS program with an effective date in the month the FSS Report is presented. 3. Contract Expired The number of participant contracts that expired at the end of the month prior to the FSS Report presented. 4. Direct Assistance Referrals Referrals sent to FSS participants based on their requests and or the participant's goals needed to be accomplished prior to successfully completing the program. 5. Outreach and Community Events Information that was shared with FSS participants and or events or meetings the FSS Coordinators attended. 6. Graduations FSS participants that graduated last month. 7. Pending Graduations FSS participants who have requested to graduate and are pending review of successful completion of goals.

13 COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY of the County of Los Angeles 700 W. Main Street Alhambra, CA Tel: TDD: locdc.org hacolo.org Hilda L. Solis Mark Ridley-Thomas Sheila Kuehl Janice Hahn Kathryn Barger Commissioners Monique King-Viehland Executive Director February 27, 2019 Honorable Housing Commissioners Housing Authority of the County of Los Angeles 700 West Main Street Alhambra, California Dear Commissioners: APPROVE THE ANNUAL PLAN FOR THE HOUSING AUTHORITY OF THE COUNTY OF LOS ANGELES (ALL DISTRICTS) SUBJECT This letter recommends approval of the Housing Authority's Annual Plan for Fiscal Year The Annual Plan updates the Housing Authority's program goals, major policies, and financial resources. Submission of the Annual Plan is required by the U.S. Department of Housing and Urban Development for receipt of Capital Fund Program funds, operating funds for the Public Housing Program and administrative fees for the Housing Choice Voucher Program. IT IS RECOMMENDED THAT THE COMMISSION: 1. Recommend that the Board of Commissioners find that the activities in the Annual Plan, as described herein, are not subject to the provisions of the California Environmental Quality Act (CEQA), because they will not have the potential for causing a significant effect on the environment. 2. Recommend that the Board of Commissioners approve the Annual Plan, as required by the U.S. Department of Housing and Urban Development (HUD), to update the Housing Authority's program goals, major policies and financial resources, including the Capital Fund Program (CFP) Annual Statement, the Admissions and Continued Occupancy Policy (ACOP) for the Public Housing Program, the Public Housing Lease Agreement, and the Housing Choice Voucher Program (HCV) Administrative Plan. We BoAd Better Lives V, Better Neighborhoods

14 Honorable Housing Commissioners February 27, 2019 Page 2 3. Recommend that the Board of Commissioners adopt and instruct the Chair to sign a Resolution approving the Annual Plan for submission to HUD, and authorize the Executive Director or her designee to take all actions required for implementation of the Annual Plan. 4. Recommend that the Board of Commissioners authorize the Executive Director or her designee to execute all documents required to receive HUD allocated CFP funds which are estimated to be approximately $4,800, Recommend that the Board of Commissioners authorize the Executive Director or her designee to incorporate into the Annual Plan all public comments received and approved for inclusion by the Board; and authorize the Executive Director or her designee to submit the Annual Plan to HUD by April 17, PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION Section 511 of the Quality Housing and Work Responsibility Act of 1998 (QHWRA) mandates that the Housing Authority submit an Annual Plan for Fiscal Year FISCAL IMPACT/FINANCING There is no impact on the County general fund. Upon approval of the Annual Plan, the Housing Authority will receive approximately $4,800,000 in CFP funds from HUD for management improvements, administrative costs and housing rehabilitation for the Public Housing Program. HUD allocated funds for the Public Housing Program, CFP and the HCV Program will be included in the annual budget process. FACTS AND PROVISIONS/LEGAL REQUIREMENTS On October 21, 1998, the QHWRA mandated that all housing authorities submit an Annual Plan every year and a Five Year Plan every five years to HUD. The Five-Year Plan is a strategic planning document that identifies the Housing Authority's goals for the next five years. On March 27, 2018, the Board approved the current Five-Year Plan for Fiscal Years The Annual Plan identifies major program policies and financial resources. It updates information on housing needs, waiting lists, housing strategies, program policy changes and other program and management data as needed. The Annual Plan must be updated each year, and was last approved by the Board on March 27, 2018.

15 Honorable Housing Commissioners February 27, 2019 Page 3 Also included as part of the Annual Plan are the updated CFP Annual Statement, the ACOP for the Public Housing Program, the Public Housing Lease Agreement and the HCV Program Administrative Plan. Significant changes are discussed below. Capital Fund Annual Statement During Fiscal Year , a total of 1,763 housing units were rehabilitated at ten Public Housing Program developments. The Fiscal Year Capital Fund Annual Statement summarizes the Housing Authority's plan to use modernization funds for management improvements, administrative costs, and to rehabilitate 2089 housing units at eight Public Housing Program developments. Included are proposed work items, estimated costs, and an implementation schedule for the work to be completed. As authorized by HUD, the Executive Director may amend the CFP Annual Statement as necessary to respond to needs such as housing emergencies, to safeguard property or protect health and safety, or to implement other changes that are in the interests of the Housing Authority and public housing residents. The Executive Director may also implement changes to the CFP Annual Statement in response to changes in federal funding. Public Housing Program Admissions and Continued Occupancy Policy and Lease Agreement The purpose of the ACOP and Lease Agreement for the Public Housing Program is to set guidelines to determine eligibility for admission and continued occupancy. There are no significant changes to these documents for Fiscal Year Public Housing and Section 8 Tenant-Based Programs 1. Allowable Family Additions Policy Currently, the Housing Authority allows the addition of minors if a social service agency, such as the Department of Children and Family Services (DCFS) or the Department of Public Socials Services, previously approved the addition. Now, the Housing Authority will expand its policy to include the addition of "foster adults". This policy is in line with the Fostering Connections to Success and Increasing Adoptions Act and California's Fostering Connections Act, which provides more support to transitioning foster youth.

16 Honorable Housing Commissioners February 27, 2019 Page 4 Housing Choice Voucher Program Administrative Plan The purpose of the HCV Program Administrative Plan is to set forth the policies and procedures that govern the Housing Authority's administration of rental assistance under this program. The Housing Authority is hereby proposing the following changes: 1. Housing Choice Voucher Waiting List Local Preference Homeless Admission Preference Currently, the Housing Authority provide a Housing Choice Voucher (HCV) Waiting List local preference to homeless families. Now, the Housing Authority will expand its current HCV waiting list local preference to include families that are referred by a Housing Authority approved local service provider because they are moving on from a transitional or permanent supportive housing program. Secondly, the Housing Authority will also expand its homeless preference to include homeless families or individuals that are eligible for a Violence Against Women Act Emergency Transfer from a Housing Authority of the County of Los Angeles rental housing program. Lastly, the Housing Authority will explore the feasibility of implementing a policy that would require its HCV waitlisted families to obtain certification of homelessness through a Coordinated Access System. 2. Special Housing Types Currently, the Housing Authority permits a voucher holder to lease the following type of housing, as a Reasonable Accommodation: Congregate Housing; Group Home; Shared Housing; Cooperative Housing; Single Room Occupancy; and Homeownership. Now, the Housing Authority will remove the requirement for a Reasonable Accommodation request, and will permit the voucher holder to submit a request for the type of housing that best suit his/her needs. The housing types selected must continue to meet HUD's respective housing type definition and HQS requirements for tenancy approval. This policy is in line with expanding housing opportunity and choice for voucher holders. 3. Use of Alternative Inspections for Biennial Inspections Currently, the Housing Authority requires that each unit under a Housing Assistance Payments (HAP) contract have a biennial HQS inspection no more than 24 months after the most recent initial or biennial inspection. Now, in accordance with HUD regulation, the Housing Authority may elect to meet its biennial inspection requirement by accepting a comparable passed inspection performed under the HOME Investment Partnership (HOME) program, or housing

17 Honorable Housing Commissioners February 27, 2019 Page 5 financed using Low Income Housing Tax Credits (LIHTC), or inspections performed by HUD. 4. Project-Based Voucher Program Housing Assistance Payment Contract Term Currently, the Housing Authority may enter into a Project-Based Voucher (PBV) HAP Contract with an owner for an initial term of up to fifteen years. Now, the Housing Authority will extend the initial term to not more than twenty years. This change is in line with HUD regulatory changes. 5. Project-Based Voucher Program Public Housing Conversions The Housing Authority has now included regulatory requirements and discretionary policies that will permit the conversion of Public Housing to PBV assistance. The inclusion of these policies are in line with HUD regulatory changes. Public Housing selected for PBV conversion will be subject to announcement before the Housing Authority's governing Board of Commissioners. The Administrative Plan, ACOP and Public Housing Lease Agreement include language changes that are statutory, regulatory, and/or that clarify existing policy. Section 24 of the Code of Federal Regulations, Part , requires a public hearing to approve the Annual Plan. Copies of the Annual Plan were made available for review and comment during a public comment period from December 28, 2018 to February 11, 2019 at 11 housing developments, the South Whittier Community Resource Center, Housing Authority administrative offices, and the Housing Authority website. Notices of the availability of the documents and the public hearing were also published in newspapers of general circulation during the public comment period. The Summary of Public Outreach regarding the Annual Plan and a list of the eight Public Housing Program housing developments in the Capital Fund Annual Statement for Fiscal Year are provided as Attachments A and B, respectively. The Resolution approving the Annual Plan for submission to HUD has been approved as to form by County Counsel. At the conclusion of the Public Review and Comment period, the Housing Authority will provide to the Board all public comments pertaining to the Annual Plan. At the conclusion of the public hearing, public comments approved by the Board will be incorporated into the Annual Plan and submitted to HUD.

18 Honorable Housing Commissioners February 27, 2019 Page 6 ENVIRONMENTAL DOCUMENTATION These activities are exempt from the provisions of the National Environmental Policy Act (NEPA) pursuant to 24 Code of Federal Regulations, Part 58, Section (a)(1), because they involve planning activities that will not have a physical impact on or result in any physical changes to the environment. The activities are also not subject to the provisions of CEQA pursuant to State CEQA Guidelines 15060(c)(3) and 15378, because they are not defined as a project under CEQA and do not have the potential for causing a significant effect on the environment. Prior to implementation of any particular project, an Environmental Service Request will be submitted to the Community Development Commission's Environmental Services Unit for review. Each project will receive an environmental clearance in accordance with CEQA Guidelines and NEPA regulations before proceeding with the project. IMPACT ON CURRENT PROGRAMS Submission of the Annual Plan is required by HUD for the receipt of CFP funds and for the continuation of the Public Housing and HCV Programs. Respectfully submitted, Director IELAND Enclosures

19 Attachment A Summary of Public Outreach Section 511 of the QHWRA instructs every public housing authority to convene one or more Resident Advisory Boards (RABs) to assist and make recommendations on the development of the Annual Plan, as well as on any significant amendments or modifications. Public Housing Program residents and Section 8 Program participants were invited to participate on the RAB to learn about programs included in the Annual Plan and to provide input. Summary of RAB Activities Public Housing Program A request for RAB volunteers is advertised continuously on HACoLA's website. In November of 2018, a letter was mailed to all RAB members inviting them to attend one of two meetings On Thursday, November 7, 2018 a Public Housing RAB meeting was held at Nueva Maravilla public housing development located at 4919 E. Cesar E Chavez Avenue, Los Angeles, CA which had 23 RAB members in attendance. At the meeting the Agency Plan/ACOP were discussed. As well as a Healthy Living Presentation, CDBG Presentation and Community Survey for Annual Plan. On Thursday, November 29, 2018 a second meeting was held at the Housing Authority Administrative Office located at 700 W. Main St, Alhambra CA where 17 RAB members were in attendance. The Agency Plan/ACOP were discussed, 5 Year Goals for FY , and possible changes for FY Staff also answered several questions from the sites and heard feedback. Section 8 The June and October 2018 issues of Tenant Talk Newsletter advertised the RAB to all Section 8 program participants and requested volunteers. On December 4, 2018, at the Administrative Office located at 2323 E. Palmdale Blvd. Suite B, Palmdale, CA 93655, a RAB meeting was held. An overview of the Annual Plan was provided. On December 13, 2018, at the Section 8 Administrative Office located at 700 W. Main Street, Alhambra, CA 91801, a second RAB meeting was held. An overview of the Five-Year and Annual Plan was provided. A total of 26 RAB members participated in the two (2) RAB meetings. Other Outreach Activities A summary of the RAB comments and Housing Authority responses are included in Attachment A of the Annual Plan. Translators were provided during the Public Housing and Section 8 RAB meetings if requested.

20 In December 2018, a public notice was mailed to all Public Housing residents notifying them of the Public Review and Comment Period. A request for Section 8 RAB volunteers is advertised continuously on the Housing Authority website. The November 2018 Tenant Talk Newsletter advertised the RAB to all Section 8 program participants. Additionally, a letter was sent in November 2018 to all past RAB members, as well as new Section 8 participants inquiring about the RAB, inviting them to attend a RAB meeting. In December of 2018, a public notice announcing the Public Review and Comment Period was published in the Los Angeles Times, Los Angeles Sentinel, Daily Breeze, La Opinion, International Daily News, Whittier Daily News and the Long Beach Press Telegram. The names of bilingual (Spanish and Russian) Housing Authority staff contacts were provided in the public notice. During the Public Review and Comment Period, the Annual Plan was made available at 11 housing developments, the South Whittier Community Resource Center, the Housing Authority Administrative Offices and the Housing Authority website. Summaries of the Annual Plan were available during the Public Review and Comment Period in Russian, Mandarin Chinese, Korean and Spanish at the above locations. Information regarding the RAB and the Annual Plan is published annually in the Section 8 Tenant Talk newsletter.

21 Attachment B Housing Development Address District 1. Harbor Hills S. Western Ave. 4 Lomita, CA Nueva Maravilla 4919 Cesar E. Chavez Ave. 1 Los Angeles, CA Palm Apartments 959 Palm Ave. 3 West Hollywood, CA Marina Manor Via Dolce 3 Marina Del Rey, CA Williamson /2 S. Williamson Ave. 1 Los Angeles, CA McBride 1229 S. McBride Ave. 1 Los Angeles, CA Simmons 927 S. Simmons Ave. 1 Los Angeles, CA Triggs /2 Triggs St. 1 Los Angeles, CA 90023

22 COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY of the County of Los Angeles 700 W. Main Street Alhambra, CA Tel: TDD: lacdc.org hacola.org Hilda L. Solis Mark Ridley-Thomas Sheila Kuehl Janice Hahn Kathryn Barger Commissioners Monique King-Viehland Executive Director February 27, 2019 Honorable Housing Commissioners Housing Authority of the County of Los Angeles 700 West Main Street Alhambra, California Dear Commissioners: ADOPT RESOLUTION AUTHORIZING ISSUANCE OF TAX-EXEMPT MULTIFAMILY HOUSING MORTGAGE REVENUE BONDS FOR MULTIFAMILY HOUSING IN UNINCORPORATED FLORENCE FIRESTONE (DISTRICT 2) SUBJECT This letter requests that the Board authorize the issuance and delivery of tax-exempt Multifamily Housing Mortgage Revenue Bonds for the acquisition, construction and development of Florence Apartments, a 109-unit multifamily affordable rental housing development located in unincorporated Florence Firestone. IT IS RECOMMENDED THAT THE COMMISSION: 1. Recommend that the Board of Commissioners find that adoption of this Resolution is not subject to the provisions of the California Environmental Quality Act (CEQA) because the action will not have the potential of causing a significant effect on the environment. 2. Recommend that the Board of Commissioners adopt and instruct the Chair to sign the attached Resolution, as required under Section 147(f) of the Internal Revenue Code of 1986, authorizing the issuance of tax-exempt Multifamily Housing Mortgage Revenue Bonds (Bonds) by the Housing Authority of the County of Los Angeles (Housing Authority), in an aggregate amount not exceeding $26,000,000 to Florence Fund, LP (Borrower), or an affiliate or assignee thereof, to finance the site acquisition, We Boild Better Lives OCBetter Neighborhoods...

23 Honorable Housing Commissioners February 27, 2019 Page 2 construction and development of a 109-unit multifamily rental housing development to be located at East Florence Avenue in unincorporated Florence Firestone. 3. Recommend that the Board of Commissioners authorize the Executive Director, or her designee, to negotiate, execute, and if necessary amend or terminate all related documents and take all necessary actions for the issuance, sale, and delivery of the Bonds. PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION The purpose of this action is to authorize the issuance, sale and delivery of the tax-exempt Bonds, in an aggregate amount not to exceed $26,000,000, to finance the acquisition, construction and development of Florence Apartments (Project). This action will also allow the Bonds to qualify for a tax exemption under Section 103 of the Internal Revenue Code of The Project, to be located at East Florence Avenue in unincorporated Florence Firestone, will consist of a four-story building comprised of 97 one-bedroom units and 12 two-bedroom units, for a total of 109 units. Fifty-four of the units will be reserved for households with incomes that do not exceed 30% of the area median income (AMI), and 54 units will be reserved for households with incomes that do not exceed 60% of the AMI, adjusted for household size, as determined by the U.S. Department of Housing and Urban Development (HUD). The two-bedroom manager's unit will have no affordability requirements. Fifty-four units will be occupied by homeless individuals and the remaining 54 units will be occupied by families. The affordability requirements will remain in effect for 55 years. The developer for the project is AMCAL Multi-Housing, Inc. The Borrower is a limited partnership that includes the developer as a partner. FISCAL IMPACT/FINANCING There is no impact on the County General Fund. The Borrower will repay the Bonds solely through rent revenues, and will pay all fees and related costs. FACTS AND PROVISIONS/LEGAL REQUIREMENTS On June 6, 2018, the Housing Authority conducted a public hearing regarding the issuance of the Bonds to finance the Project, at its office located at 700 West Main Street in Alhambra. No comments were received at the public hearing concerning the issuance of the Bonds or the nature and location of the Project. On July 10, 2018, the County of Los Angeles' Board of Supervisors adopted an Inducement Resolution declaring the intent of the Housing Authority to undertake the financing of a Multifamily Housing Mortgage Revenue Bond project in accordance with

24 Honorable Housing Commissioners February 27, 2019 Page 3 Treasury Department regulations. This action established a base date after which costs incurred by the Borrower for the Project could be included in the acquisition, construction and permanent financing obtained pursuant to the issuance of tax-exempt Bonds. At the same meeting, the Board of Supervisors adopted a resolution approving issuance of the Bonds, as authorized by Section 147(f) of the Internal Revenue Code of The attached Resolution was prepared by Hawkins Delafield and Wood, Housing Authority Bond Counsel, and approved as to form by County Counsel. All other related documents, in substantially final form, are on file with the Executive Office. They will be approved as to form by County Counsel prior to execution by the authorized parties. ENVIRONMENTAL DOCUMENTATION The proposed action is not a project pursuant to the California Environmental Quality Act (CEQA) because it is an activity that is excluded from the definition of a project by Section (b) of the State CEQA guidelines. The proposed action is an administrative activity of government which will not result in direct or indirect physical change to the environment. IMPACT ON CURRENT PROJECT The proposed action is a necessary step to facilitate Bond financing for the Project, which will expand the supply of affordable housing in the County with long-term affordability. Respectfully submitted, M NIQ KIN Ex cu e Director IEHLAND MKV:LN:JWR Enclosure

25 RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $26,000,000 FOR THE PURPOSE OF MAKING A LOAN TO PROVIDE FINANCING FOR A MULTIFAMILY RENTAL HOUSING PROJECT KNOWN AS FLORENCE APARTMENTS, DETERMINING AND PRESCRIBING CERTAIN MATTERS RELATING THERETO, AND APPROVING AND AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS, AGREEMENTS AND ACTIONS. WHEREAS, the Housing Authority of the County of Los Angeles (the "Authority") is authorized and empowered by the provisions of Section of the Health and Safety Code of the State of California (the "Act") to issue and sell revenue bonds for the purpose of making loans or otherwise providing funds to finance the acquisition, construction, rehabilitation and development of multifamily residential rental housing projects, including units for households meeting the income limits set forth in the Act; and WHEREAS, there has been prepared and presented to this Board of Commissioners (this "Board") for consideration at this meeting the documentation required for the issuance of bonds for the financing of the acquisition, development and construction of a multifamily rental housing development consisting of 109 total units located at East Florence Avenue in unincorporated Los Angeles County (the "Project"), to be known as Florence Apartments and to be owned by Florence Fund, LP, a California limited partnership, or an affiliate, assignee or designee thereof; and WHEREAS, pursuant to Section of the California Government Code, this Board has received the following information as a good faith estimate of the cost of the Project financing and the Authority has disclosed such information in accordance with Section of the California Government Code: (a) the true interest cost of the Bonds (as hereafter defined); (b) the finance charge of the Bonds, including all third party expenses; (c) the amount of proceeds received by the Authority for the sale of the Bonds less the finance charge of the Bonds and any reserves or capitalized interest paid or funded with proceeds of the Bonds; and (d) the total payment amount; and WHEREAS, it appears that each of the documents and instruments above referred to which are now before this meeting is in appropriate form and is an appropriate instrument to be executed and delivered for the purposes intended. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing Authority of the County of Los Angeles, as follows: 1. It is hereby found and determined that it is necessary and desirable for the Authority to provide financing for the Project through the issuance, sale and delivery of the Bonds in order to assist in the acquisition, construction, rehabilitation and development of the type of dwelling units provided by the Project. 2. For the purpose of raising moneys with which to effectuate financing for the Project, the Authority hereby determines to issue its Multifamily Housing Revenue

26 Bonds (Florence Apartments), 2019 Series A (or such other name or series designation as may be designated by officers or agents of the Authority), in one or more series or subseries, each with an appropriate series designation (the "Bonds"), in an aggregate principal amount not to exceed $26,000,000. The Bonds shall bear interest at the interest rate or rates set forth in or determined in accordance with a Trust Indenture (the "Indenture"), maturing as provided in the Indenture, but not later than 35 years from the date of issue. The Bonds shall be in substantially the form set forth in the Indenture, with such appropriate variations, omissions, insertions and provisions as are permitted or required by the Indenture, which shall be appropriately completed when the Bonds are prepared. The Bonds shall be a limited obligation of the Authority payable solely from the revenues, receipts and other moneys pledged therefor under the Indenture. The Bonds shall be executed on behalf of the Authority by the manual or facsimile signature of the Chair of this Board or the Executive Director of the Authority. 3. The proposed form of Indenture, in the form presented to this meeting, is hereby approved. Each of the Chair of this Board, the Executive Director of the Authority and their respective designee is each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Indenture, in substantially said form, with such additions thereto or changes therein as such officer may approve or recommend upon consultation with counsel to the Authority and Bond Counsel to the Authority (provided that such additions or changes shall not authorize an aggregate principal amount of Bonds in excess of the amount stated above or result in an initial interest rate on the Bonds in excess of 9%), the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Indenture. The proposed form of the Bonds, as set forth in the Indenture, is hereby approved, and the Chair of this Board and the Executive Director of the Authority is each hereby authorized and directed to execute, by manual or facsimile signatures of such officers, and the trustee named in the Indenture (the "Trustee") is hereby authorized and directed to authenticate, by manual signature of an authorized officer of the Trustee, the Bonds in substantially such form, and the Authority and the Trustee are each hereby authorized and directed to deliver the Bonds to the purchaser, which shall be JPMorgan Chase Bank, N.A., or an affiliate thereof in accordance with the Indenture. The Bonds may, if so provided in the Indenture, be issued as a "draw down" bonds to be funded over time as provided in the Indenture. The date, maturity date, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Indenture as finally executed. 4. The proposed form of Loan Agreement (the "Loan Agreement"), in the form presented to this meeting, is hereby approved. Each of the Chair of this Board, the Executive Director of the Authority and their respective designee is each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Loan Agreement, with such additions or changes in said document as such officer may recommend or approve upon consultation with counsel to the Authority and Bond Counsel

27 to the Authority, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Loan Agreement. 5. The proposed form of Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement"), in the form presented to this meeting, is hereby approved. Each of the Chair of this Board, the Executive Director of the Authority and their respective designee is each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Regulatory Agreement, with such additions or, changes in said document as such officer may recommend or approve upon consultation with counsel to the Authority and Bond Counsel to the Authority, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Regulatory Agreement. 6. This Board hereby appoints the Executive Director of the Authority or her designee as administrator/manager with respect to the Project and other matters arising in connection with the Bonds (the "Administrator"). 7. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this resolution, whether before or after the issuance of the Bonds, including without limitation any of the foregoing which may be necessary or desirable in connection with any default under or amendment of such documents, any transfer or other disposition of the Project or any redemption of the Bonds, may be given or taken by the Administrator without further authorization by this Board, and the Administrator is hereby authorized and directed to give any such consent, approval, notice, order or request and to take any such action which such officer may deem necessary or desirable to further the purposes of this resolution. 8. All actions heretofore taken by the officers and agents of the Authority with respect to the sale, issuance and delivery of the Bonds are hereby approved, confirmed and ratified, and the proper officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents, including but not limited to those described in the Indenture and the other documents herein approved, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds and to effectuate the purposes thereof and of the documents herein approved in accordance with this resolution and resolutions heretofore adopted by the Authority. 9. All resolutions or parts thereto in conflict herewith are, to the extent of such conflict, hereby repealed. 3

28 10. This resolution shall take effect upon its adoption. PASSED AND ADOPTED by the Board of Commissioners of the Housing Authority of the County of Los Angeles, State of California, this day of, 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: By: Chair of the Board of Commissioners ATTEST: CELIA ZAVALA Executive Officer Clerk of the Board of Commissioners By: Deputy APPROVED AS TO FORM: MARY C. WICKHAM County Counsel By: Deputy

29 COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY of the County of Los Angeles 700 W. Main Street Alhambra, CA Tel: TDD: lacdc.org hacola.org Hilda L. Solis Mark Ridley-Thomas Sheila Kuehl Janice Hahn Kathryn Barger Commissioners Monique King-Viehland Executive Director February 27, 2019 Honorable Housing Commissioners Housing Authority of the County of Los Angeles 700 West Main Street Alhambra. California Dear Commissioners: ADOPT RESOLUTION AUTHORIZING ISSUANCE OF TAX-EXEMPT MULTIFAMILY HOUSING MORTGAGE REVENUE BONDS OR NOTES FOR MULTIFAMILY HOUSING IN UNINCORPORATED WILLOWBROOK (DISTRICT 2) SUBJECT This letter requests that the Board authorize the issuance and delivery of tax-exempt Multifamily Housing Mortgage Revenue Bonds or Notes for the site acquisition and rehabilitation of Whitfield Manor, a 46-unit multifamily affordable rental housing development located in unincorporated Willowbrook. IT IS RECOMMENDED THAT THE COMMISSION: 1. Recommend that the Board of Commissioners find that adoption of this Resolution is not subject to the provisions of the California Environmental Quality Act (CEQA) because the action will not have the potential of causing a significant effect on the environment. 2. Recommend that the Board of Commissioners adopt and instruct the Chair to sign the attached Resolution, as required under Section 147(f) of the Internal Revenue Code of 1986, authorizing the issuance of tax-exempt Multifamily Housing Mortgage Revenue Bonds or Notes (Bonds) by the Housing Authority of the County of Los Angeles (Housing Authority), in an aggregate amount not exceeding $10,000,000 to Whitfield Manor II, LP (Borrower), or an affiliate or assignee thereof, to finance the site We Bkt d Better Lives Better Neighborhoods

30 Honorable Housing Commissioners February 27, 2019 Page 2 acquisition and rehabilitation of a 46-unit multifamily rental housing development to be located at South Compton Avenue in unincorporated Willowbrook. 3. Recommend that the Board of Commissioners authorize the Executive Director, or her designee, to negotiate, execute, and if necessary amend or terminate all related documents and take all necessary actions for the issuance, sale, and delivery of the Bonds. PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION The purpose of this action is to authorize the issuance, sale and delivery of the tax-exempt Bonds, in an aggregate amount not to exceed $10,000,000, to finance the site acquisition and, rehabilitation of Whitfield Manor (Project). This action will also allow the Bonds to qualify for a tax exemption under Section 103 of the Internal Revenue Code of The Project, to be located at South Compton Avenue in unincorporated Willowbrook, will consist of 8 two-story buildings comprised of 18 one-bedroom units, 10 two-bedroom units and 18 three-bedroom units, for a total of 46 units. Ten of the units will be reserved for households with incomes that do not exceed 50% of the area median income (AMI), and thirty-five units will be reserved for households with incomes that do not exceed 60% of the AMI for Los Angeles Statistical Area, adjusted for household size, as determined by the U.S. Department of Housing and Urban Development (HUD). The affordability requirements will remain in effect for 55 years. The three-bedroom manager's unit will have no affordability requirements. The rehabilitation will include the construction of a community room and six accessible units. The project currently has a Section 8 project-based Housing Assistance Payment contract. The developer for the project is GWDC at VH, LLC. The Borrower is a limited partnership that includes the developer as a partner. FISCAL IMPACT/FINANCING There is no impact on the County General Fund. The Borrower will repay the Bonds solely through rent revenues, and will pay all fees and related costs. FACTS AND PROVISIONS/LEGAL REQUIREMENTS On August 20, 2018, the Housing Authority conducted a public hearing regarding the issuance of the Bonds to finance the Project, at its office located at 700 West Main Street in Alhambra. No comments were received at the public hearing concerning the issuance of the Bonds or the nature and location of the Project. On September 18, 2018, the County of Los Angeles' Board of Supervisors adopted an Inducement Resolution declaring the intent of the Housing Authority to undertake the

31 Honorable Housing Commissioners February 27, 2019 Page 3 financing of a Multifamily Housing Mortgage Revenue Bond project in accordance with Treasury Department regulations. This action established a base date after which costs incurred by the Borrower for the Project could be included in the acquisition, construction and permanent financing obtained pursuant to the issuance of tax-exempt Bonds. At the same meeting, the Board of Supervisors adopted a resolution approving issuance of the Bonds, as authorized by Section 147(f) of the Internal Revenue Code of The attached Resolution was prepared by Kutak Rock, Housing Authority Bond Counsel, and approved as to form by County Counsel. All other related documents, in substantially final form, are on file with the Executive Office of the Board. They will be approved as to form by County Counsel prior to execution by the authorized parties. ENVIRONMENTAL DOCUMENTATION The proposed action is not a project pursuant to the California Environmental Quality Act (CEQA) because it is an activity that is excluded from the definition of a project by Section (b) of the State CEQA guidelines. The proposed action is an administrative activity of government which will not result in direct or indirect physical change to the environment. IMPACT ON CURRENT PROJECT The proposed action is a necessary step to facilitate Bond financing for the Project, which will expand the supply of affordable housing in the County with long-term affordability. Respectfully submitted, MO IQU c KIN IEHLAND Executi Director MKV:LN:JWR Enclosure

32 RESOLUTION AUTHORIZING THE ISSUANCE AND DELIVERY OF ONE OR MORE SERIES OF MULTIFAMILY HOUSING REVENUE BONDS OR NOTES IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000 FOR THE PURPOSE OF MAKING A LOAN TO PROVIDE FINANCING FOR A MULTIFAMILY RENTAL HOUSING PROJECT KNOWN AS WHITFIELD MANOR, DETERMINING AND PRESCRIBING CERTAIN MATTERS RELATING THERETO, AND APPROVING AND AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS, AGREEMENTS AND ACTIONS. WHEREAS, the Housing Authority of the County of Los Angeles (the "Authority") is authorized and empowered by the provisions of Section of the Health and Safety Code of the State of California (the "Act") to issue and sell revenue bonds or notes for the purpose of making loans or otherwise providing funds to finance the acquisition, construction, rehabilitation and development of multifamily residential rental housing projects, including units for households meeting the income limits set forth in the Act; and WHEREAS, there has been prepared and presented to this Board for consideration at this meeting the documentation required for the issuance of one or more series of bonds or notes for the financing of the acquisition, development, rehabilitation and construction of a multifamily rental housing development consisting of 46 total units located at Compton Avenue in unincorporated Los Angeles County (the "Project"), to be known as Whitfield Manor and to be owned by Whitfield Manor H, LP (or an affiliate or assignee thereof); and WHEREAS, pursuant to Section of the California Government Code, this Board has received the following information as a good faith estimate of the cost of the Project financing and the Authority has disclosed such information in accordance with Section of the California Government Code: (a) the true interest cost of the Note (as hereafter defined); (b) the finance charge of the Note, including all third party expenses; (c) the amount of proceeds received by the Authority for the sale of the Note less the finance charge of the Note and any reserves or capitalized interest paid or funded with proceeds of the Note; and (d) the total payment amount; and WHEREAS, it appears that each of the documents and instruments above referred to which are now before this meeting is in appropriate form and is an appropriate instrument to be executed and delivered for the purposes intended. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing Authority of the County of Los Angeles, as follows: 1. It is hereby found and determined that it is necessary and desirable for the Authority to provide financing for the Project through the issuance and delivery of the Note in order to assist in the acquisition, construction, rehabilitation and development of the type of dwelling units provided by the Project. 2. For the purpose of raising moneys with which to effectuate financing for the Project, the Authority hereby determines to issue its bonds or note as Multifamily

33 Housing Revenue Bonds or Note (Whitfield Manor), 2019 Series B (or such other name or series designation as may be designated by officers or agents of the Authority), in one or more series or subseries, each with an appropriate series designation (the "Note"), in an aggregate principal amount not to exceed $10,000,000. The Note shall bear interest at the interest rates set forth in or determined in accordance with a funding loan agreement (the "Funding Loan Agreement"), maturing as provided in the Funding Loan Agreement, but not later than 40 years from the date of issue. The Note shall be in substantially the form set forth in the Funding Loan Agreement, with such appropriate variations, omissions, insertions and provisions as are permitted or required by the Funding Loan Agreement, which shall be appropriately completed when the Note is prepared. The Note shall be a limited obligation of the Authority payable solely from the revenues, receipts and other moneys pledged therefor under the Funding Loan Agreement. The Note shall be executed on behalf of the Authority by the manual or facsimile signature of the Chair of this Board or the Executive Director of the Authority. 3. The proposed form of Funding Loan Agreement, in the form presented to this meeting, is hereby approved. The Chair of this Board and the Executive Director of the Authority or his or her designee are each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Funding Loan Agreement, in substantially said form, with such additions thereto or changes therein as such officer may approve or recommend upon consultation with counsel to the Authority and Bond Counsel to the Authority (provided that such additions or changes shall not authorize an aggregate principal amount of Note in excess of the amount stated above or result in an initial interest rate on the Note in excess of 9%), the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Funding Loan Agreement. The proposed form of the Note, as set forth in the Funding Loan Agreement, is hereby approved, and the Chair of the Board and Executive Director of the Authority or his or her designee are hereby authorized and directed to execute, by manual or facsimile signatures of such officers, and, if deemed necessary or desirable, a fiscal agent (the "Fiscal Agent") to be designated by the Authority in the Funding Loan Agreement or an authenticating agent is hereby authorized and directed to authenticate, by manual signatures of one or more authorized officers of the Funding Loan Agreement or an authenticating agent, if applicable, the Note in substantially such form, and the Authority or the Fiscal Agent, as applicable, is hereby authorized and directed to deliver the Note to the purchaser, which shall be R4 Capital Funding, LLC, or its designee in accordance with the Funding Loan Agreement. The Note may, if so provided in the Funding Loan Agreement, be issued as a "draw down" bond to be funded over time as provided in the Funding Loan Agreement. The date, maturity date, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Note shall be as provided in the Funding Loan Agreement as finally executed. 4. The proposed form of Borrower Loan Agreement (the "Loan Agreement"), in the form presented to this meeting, is hereby approved. The Chair of this Board and the Executive Director of the Authority or his or her designee are each hereby authorized and

34 directed, for and in the name and on behalf of the Authority, to execute and deliver the Loan Agreement, with such additions or changes in said document as such officer may recommend or approve upon consultation with counsel to the Authority and Bond Counsel to the Authority, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Loan Agreement. 5. The proposed form of Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement") in the form presented to this meeting, is hereby approved. The Chair of this Board and the Executive Director of the Authority or his or her designee are each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Regulatory Agreement, with such additions or changes in said document as such officer may recommend or approve upon consultation with counsel to the Authority and Bond Counsel to the Authority, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of the Regulatory Agreement. 6. This Board hereby appoints the Executive Director of the Authority or her designee as administrator/manager with respect to the Project and other matters arising in connection with the Note (the "Administrator"). 7. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this resolution, whether before or after the issuance of the Note, including without limitation any of the foregoing which may be necessary or desirable in connection with any default under or amendment of such documents, any transfer or other disposition of the Project or any redemption of the Note, may be given or taken by the Administrator without further authorization by this Board, and the Administrator is hereby authorized and directed to give any such consent, approval, notice, order or request and to take any such action which such officer may deem necessary or desirable to further the purposes of this resolution. 8. All actions heretofore taken by the officers and agents of the Authority with respect to the issuance and delivery of the Note are hereby approved, confirmed and ratified, and the proper officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents, including but not limited to those described in the Funding Loan Agreement and the other documents herein approved, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Note and to effectuate the purposes thereof and of the documents herein approved in accordance with this resolution and resolutions heretofore adopted by the Authority. 9. All resolutions or parts thereto in conflict herewith are, to the extent of such conflict, hereby repealed. 10. This resolution shall take effect upon its adoption.

35 PASSED AND ADOPTED by the Board of Commissioners of the Housing Authority of the County of Los Angeles, State of California, this day of, 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: By: Chair of the Board of Commissioners ATTEST: CELIA ZAVALA Executive Officer - Clerk of the Board of Commissioners By: Deputy APPROVED AS TO FORM: MARY C. WICKHAM County Counsel By: Deputy

36 COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY of the County of Los Angeles 700 W. Main Street Alhambra, CA Tel: TDD: lacdc.org hacola.org Hilda L. Solis Mark Ridley-Thomas Sheila Kuehl Janice Hahn Kathryn Barger Commissioners Monique King-Viehland Executive Director February 27, 2019 Honorable Housing Commissioners Housing Authority of the County of Los Angeles 700 West Main Street Alhambra, California Dear Commissioners: AWARD A CONSTRUCTION CONTRACT TO KISBA CONTRACTING, INC. FOR A UNIT FLOORING REPLACEMENT PROJECT AT THE SOUTH BAY GARDENS SENIOR PUBLIC HOUSING DEVELOPMENT (DISTRICT 2) SUBJECT This letter recommends award of a Construction Contract (Contract) to Kisba Contracting, Inc. for floor replacement and associated work at the South Bay Gardens senior public housing development, located at 230 E. 130th Street in unincorporated Los Angeles County. IT IS RECOMMENDED THAT THE COMMISSION: 1. Recommend that the Board of Commissioners find that the approval of the Contract and the proposed Project for floor replacement and associated work at the South Bay Gardens senior public housing development is exempt from the provisions of the California Environmental Quality Act (CEQA) for the reasons stated in this letter and the record of the Project. 2. Recommend that the Board of Commissioners approve the proposed Project and adopt the plans and specifications that are on file in the Construction Management Unit of the Community Development Commission (CDC) for construction of the Project. 3. Recommend that the Board of Commissioners authorize the Executive Director, or her designee, to award and execute a Contract in the amount of $405,960 with Kisba Contracting, Inc., the apparent lowest responsive and responsible bidder, for floor replacement and associated work at the South Bay Gardens senior public housing development in unincorporated We Bed Better Lives "r, Better Neighborhoods

37 Honorable Housing Commissioners February 27, 2019 Page 2 Los Angeles County, following receipt of the acceptable Faithful Performance and Labor and Material Bonds and insurance filed by the Contractor. 4. Recommend that the Board of Commissioners authorize the Executive Director or her designee, upon her determination and as necessary and appropriate, to amend the contract, or to terminate the contractor's right to proceed with the performance of the Contract or to terminate the Contract for convenience. 5. Recommend that the Board of Commissioners authorize the Executive Director or her designee to approve Contract change orders not to exceed $81,192, which represents 20% of the contract amount, for unforeseen project costs. 6. Recommend that the Board of Commissioners authorize the Executive Director to fund the Contract and contingency with a total of $487,152 in Community Development Block Grant (CDBG) funds allocated to the Second Supervisorial District by the U.S. Department of Housing and Urban Development (HUD) and to incorporate all funds into the Housing Authority's approved Fiscal Year budget, as needed. 7. Recommend that the Board of Commissioners determine that the proposed Project is exempt from the application of the County's Local Targeted Worker Hire Policy because it is wholly funded with Federal funds, which prohibit geographic preferences. PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION The approval of the recommended actions will award a Contract for unit flooring replacement in 100 dwelling units, including removal of existing flooring and base, subfloor preparation, installation of new carpet, resilient flooring, vinyl floor base, and all other associated work at the South Bay Gardens senior public housing development. FISCAL IMPACT/FINANCING There is no impact on the County general fund. The Housing Authority will fund the improvements with up to $405,960 in CDBG funds allocated to the Second Supervisorial District by HUD. A 20% contingency, in the amount of $81,192 is being set aside for unforeseen costs using the same source of funds. This contingency is recommended because completion of floor replacement, and associated work often involves unforeseen conditions or damaged subfloor that extend further than initially identified in the scope of work.

38 Honorable Housing Commissioners February 27, 2019 Page 3 FACTS AND PROVISIONS/LEGAL REQUIREMENTS The South Bay Gardens senior public housing development consists of three story building with a total of 100 units. Floor replacement will be completed at the 100 units. The scope of work for this Contract includes removal of existing flooring and base, subfloor preparation, installation of new carpet, resilient flooring, vinyl floor base, and all other associated work. The improvements are being federally funded, and will not be subject to the requirements of the Greater Avenues for Independence (GAIN) Program, and the General Relief Opportunity for Work (GROW) Program implemented by the County of Los Angeles. Instead, Kisba Contracting, Inc., will consider hiring Section 3 qualified residents at least 30 percent aggregate new hire positions; and/or subcontract 25 percent or more of the contract amount to Section 3 qualified business concerns. The Housing and Community Development Act of 1968, as amended, requires that employment and other economic opportunities generated by certain HUD assistance be directed to low- and very lowincome persons, particularly to persons who are recipients of HUD housing assistance. This project is exempt from the application of the County's Local Targeted Worker Hire Policy because it is wholly funded with federal funds, which prohibit geographic preferences. The Housing Authority partners with the Los Angeles County Workforce Development, Aging and Community Services (WDACS) to implement a workforce development program at public housing developments located in the 1st, 2nd, 3rd and 5 th Supervisorial Districts. Residents who participate are provided with employment and supportive services through a network of Los Angeles County America's Job Centers of California (AJCC). ENVIRONMENTAL DOCUMENTATION Pursuant to 24 Code of Federal Regulation, Part 58, Section (a) (3) (ii), this project is excluded from the National Environmental Policy Act (NEPA), because it involves activities that will not alter existing environmental conditions. The proposed Project is categorically exempt from CEQA. The Project, flooring replacement, including removal of existing flooring and base, subfloor preparation, installation of new carpet, resilient flooring, vinyl floor base, and all other associated work, is within a class of projects that have been determined not to have a significant effect on the environment in that it meets the criteria set forth in Section and of the CEQA Guidelines and Classes 1 and 2 of the County's Environmental Document Reporting Procedures and Guidelines, Appendix G. In addition, the project is not in a sensitive environment, and there are no cumulative impacts, unusual circumstances, or other limiting factors that would make the exemption inapplicable based on the project records. The project will not adversely affect natural watercourses, wetlands, environmentally sensitive areas, remove scenic resources, remove rare plants or mature

39 Honorable Housing Commissioners February 27, 2019 Page 4 trees. Upon the Board's approval of the proposed Project, we will file a Notice of Exemption with the County Clerk in accordance with Section of the State CEQA Guidelines. CONTRACTING PROCESS On December 4, 2018, the Housing Authority initiated an outreach to identify a contractor to complete the work at the subject property. Invitations for Bids were electronically sent to all 395 Class B licensed contractors identified from the CDC's vendor list. Advertisements also appeared in the Dodge Green Sheet, and on the County WebVen and CDC websites. On January 3, 2019, two bids were received and formally opened. The lowest bidder, Kisba Contracting, Inc., was determined to be the lowest responsive and responsible and is being recommended for the Contract award. The Summary of the Outreach Activities is provided in Attachment A. IMPACT ON CURRENT PROJECT Approval of the recommended actions will allow for flooring replacement at the South Bay Gardens senior public housing development and allow the Housing Authority to continue providing residents with modest affordable housing. Respectfully submitted, MO IQ ExecutiJe Director Enclosures,e el EHLAND

40 ATTACHMENT A Summary of Outreach Activities On December 4, 2018, the following outreach was initiated to identify a contractor for flooring replacement at the South Bay Gardens senior public housing development located at 230 E. 130th Street, Los Angeles, CA A. Newspaper Advertising Announcements appeared in the following local newspaper: Dodge Green Sheet An announcement was also posted on the County WebVen and CDC websites B. Distribution of Bid Packages The CDC's vendor list was used to notices to 395 Class B licensed contractors to visit the CDC's website for details and to download the solicitation package. As a result of the outreach, one hundred thirty four bid packages were downloaded from the CDC web site. C. Pre-Bid Conference and Site Walk On December 13, 2018, a mandatory pre-bid meeting and site walk was conducted. Nine contractors were in attendance. D. Bid Results On January 3, 2019, a total of 2 bids were received and publicly opened. The bid result was as follows: Engineers' Estimate $459, Company Bid Amount Kisba Contracting, Inc. $405, Harry H. Joh Construction, Inc. $728,000.00

41 E. Minority/Female Participation Selected Contractor Name Ownership Employees Kisba Contracting, Inc. Minority Women Total: 2 No County certification 1 Minorities 1 Woman 50% Minorities 50% Women F. Minority/Female Participation Contractors Not Selected Name Ownership Employees Harry H. Joh Construction, Minority Total: 26 Inc. No County certification 25 Minorities 6 Women 96% Minorities 23% Women The Housing Authority conducts ongoing outreach to include minorities and women in the contract award process, including: providing information at local and national conferences; conducting seminars for minorities and women regarding programs and services; advertising in newspapers to invite placement on the vendor list; and mailing information to associations representing minorities and women. The above information has been voluntarily provided to the Housing Authority. The recommended award of the contract is being made in accordance with the Housing Authority's policies and federal regulations, and without regard to race, creed, color, or gender.

42 ATTACHMENT B Contract Summary Project Name: South Bay Gardens Unit Flooring Replacement Project Location: 230 E. 130th Street, Los Angeles, CA Bid Number: CDC Bid Date: January 3, 2019 Contractor: Kisba Contracting, Inc. Services: Includes removal of existing flooring and base, subfloor preparation, installation of new carpet, resilient flooring, vinyl floor base, and all other associated work in 100 dwelling units Contract Documents: Section 1.0 General Conditions and Requirements; Section 2.0 Instructions to Bidders; Appendices A through H; and all Addenda to the Contract Documents. Time of Commencement and Completion: The work to be performed under this Contract shall commence within ten (10) days after a Notice to Proceed is received by the Contractor, or on the date specified in the Notice, whichever is later, and shall be completed within One Hundred and Twenty (120) calendar days following the required commencement date. Liquidated Damages: In the event of a breach of contract, the Contractor and his/her sureties shall be liable for, and shall pay to the Housing Authority the sum of Five Hundred Dollars and Zero Cents ($500.00) as liquidated damages for each calendar day of delay, until the Work is accepted by the Owner. Contract Sum: The Housing Authority shall pay the Contractor for the performance of the Construction Contract subject to additions and deductions by Change Order(s) as provided in the Contract Documents, in current funds, the sum of Four Hundred and Five Thousand Nine Hundred and Sixty Dollars and Zero Cents ($405,960.00). The Contract Sum is not subject to escalation, includes all labor and material increases anticipated throughout the duration of this Construction Contract. Contract Contingency: $81,192.00

43 SOUTHBAY GARDENS UNIT FLOORING PROJECT In Ili!eel, _ 11, _,.t.. 1 1/4 41 t ti4.1' Ai 4; L f...-. S r t 334.1" t k - 1Y, Exterior View of the Project Site

44 SOUTHBAY GARDENS UNIT FLOORING PROJECT Interior unit with existing flooring and base

45 SOUTH BAY GARDENS UNIT FLOORING PROJECT --- Existing bathroom flooring (ceramic tiles in accessible bathrooms shall remain)

46 COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY of the County of Los Angeles 700 W. Main Street Alhambra, CA Tel: TDD: lacdc.org hacola.org Hilda L. Solis Mark Ridley-Thomas Sheila Kuehl Janice Hahn Kathryn Barger Commissioners Monique King-Viehland Executive Director February 27, 2019 Honorable Housing Commissioners Housing Authority of the County of Los Angeles 700 West Main Street Alhambra, California Dear Commissioners: AWARD CONTRACTS TO FLOOR TECH AMERICA INC. AND MIDTOWN CARPET COMPANY TO PROVIDE FLOOR COVERING SERVICES TO THE HOUSING AUTHORITY OF THE COUNTY OF LOS ANGELES (ALL DISTRICTS) SUBJECT This letter recommends award of two Contracts, one with Floor Tech America, Inc., and one with Midtown Carpet Company, to provide floor covering services on an as-needed basis at public and affordable housing developments located throughout the County of Los Angeles. IT IS RECOMMENDED THAT THE COMMISSION: 1. Recommend that the Board of Commissioners authorize the Executive Director or her designee to award and execute two one-year Contracts with Floor Tech America, Inc. and Midtown Carpet Company, the apparent lowest, responsive and responsible bidders, in the aggregate amount of up to $400,000, using funds included in the Housing Authority's Fiscal Year approved budget and Fiscal Year proposed budget, for floor covering services at public and affordable housing developments located throughout the County of Los Angeles. 2. Recommend that the Board of Commissioners authorize the Executive Director or her designee to execute amendments to the Contracts, following approval as to form by County Counsel, to extend the term for a maximum of four additional years, in one-year increments, with an annual aggregate compensation of up to $400,000, using funds to be included in the Housing Authority's annual budget approval process. We BsId Better Lives Better Neighborhoods Cr 6...."

47 Honorable Housing Commissioners February 27, 2019 Page 2 3. Recommend that the Board of Commissioners authorize the Executive Director, or her designee, upon determination and as necessary and appropriate under the terms of the Contracts, to amend or terminate the Contracts for convenience. 4. Recommend that the Board of Commissioners authorize the Executive Director or her designee to amend the Contracts to add or delete sites, modify the scope of work, and increase the annual compensation by up to 10% as needed for additional services. 5. Recommend that the Board of Commissioners find that approval of the Floor Covering Services Contracts is exempt from the provisions of the California Environmental Quality Act (CEQA) for the reasons stated in this letter and the record of the Project. PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION The purpose of this action is to provide floor covering services on an as-needed basis at public and affordable housing developments located throughout the County of Los Angeles. This action will allow for the replacement of the current contract which expired on January 18, FISCAL IMPACT/FINANCING There is no impact on the County general fund. The cost for the first year of services will be up to $400,000 using funds included in the Housing Authority's Fiscal Year approved budget and the Fiscal Year proposed budget. If extended, the cost of years two through five will remain at the same annual amount of up to $400,000, to be included in the Housing Authority's annual budget approval process. A 10% contingency, in the amount of $40,000 per year or $200,000 over the maximum five-year term, is also being set aside for any additional needed floor covering services. If the Contracts are fully extended, the total aggregate Contract and contingency amount for all five years will be $2,200,000. FACTS AND PROVISIONS/LEGAL REQUIREMENTS The floor covering services are being federally funded and are not subject to the requirements of the Greater Avenues for Independence (GAIN) Program or the General Relief Opportunity for Work (GROW) Program implemented by the County of Los Angeles. Instead, both Floor Tech America, Inc. and Midtown Carpet Company will

48 Honorable Housing Commissioners February 27, 2019 Page 3 comply with Section 3 of the Housing and Community Development Act of 1968, as amended, which requires that employment and other economic opportunities generated by certain HUD assistance be directed to low- and very low-income persons, particularly to persons who are recipients of HUD housing assistance. These Contracts may result in additional local hires as the work progresses. ENVIRONMENTAL DOCUMENTATION This action is exempt from the provisions of the National Environmental Policy Act pursuant to 24 Code of Federal Regulations, Part 58, Section (a)(3)(ii) because it involves activities that will not alter existing environmental conditions. The action is exempt from the provisions of CEQA pursuant to State CEQA Guideline because it involves activities that do not have the potential for causing a significant effect on the environment. Prior to implementation of any particular project, an Environmental Service Request will be submitted to the Community Development Commission's Environmental Services Unit for review. Each project will receive an environmental clearance in accordance with CEQA Guidelines and NEPA regulations before proceeding with the project. CONTRACTING PROCESS On October 18, 2018, the Housing Authority initiated an outreach to identify contractors to provide floor covering services to the Housing Authority. Notices were electronically sent to 133 vendors from the Housing Authority vendor list. An announcement was also posted on the County's WebVen and Housing Authority websites. A mandatory pre-bid meeting was held at the Housing Authority on October 24, A total of six contractors participated in the Mandatory Pre-Bid Meeting. On October 31, 2018, Addendum # 1 was issued to amend the Statement of Work, and the deadline was extended. Four bids were received by the submission deadline of November 7, During the period of November 8, 2018 through January 22, 2019, an evaluation of the minimum requirements was conducted. Because the services are federally and state funded, price preferences were not applied for Local Small Business Enterprise (LSBE) status. Both Floor Tech America, Inc. and Midtown Carpet Co. were determined to be responsive and responsible and are therefore being recommended for Contract awards. The Summary of the Outreach Activities is provided in Attachment A. The recommended Contract awards to Floor Tech America, Inc. and Midtown Carpet Co. are contingent upon the conclusion of the protest period on March 4, We do not anticipate receiving any protests. However, if a protest is received and subsequently determined to have merit, the Housing Authority will not move forward with a recommendation to the Board of Commissioners to award the Contracts.

49 Honorable Housing Commissioners February 27, 2019 Page 4 IMPACT ON CURRENT PROJECT The proposed Contracts will provide necessary floor covering services for the public and affordable housing developments owned by the Housing Authority and continue to provide the residents and staff with modest affordable housing. Respectf, Ily submitted, MO KIN -VIEHLAND Executi Director Enclosures

50 ATTACHMENT A Summary of Outreach Activities On October 18, 2018, the following outreach was initiated to identify Floor Covering Service contractors for the Housing Authority. A. Announcement An announcement was also posted on the County WebVen and on the Housing Authority websites. B. Distribution of Notices The Housing Authority's vendor list was used to out the IFB notices to 133 floor covering service contractors of which 76 identified themselves as firms owned by minorities or women (private firms that are 51 percent owned by minorities or women, or publicly owned businesses, in which 51 percent of the stock is held by minorities or women). As a result of the outreach, 30 solicitation packages were downloaded, and 4 bids were received. C. Bid Results On November 7, 2018, four bids were received. Bidders were required to provide bids which includes prevailing wage rates for floor covering services. Because the services are federally and state funded, price preferences were not applied for Local Small Business Enterprise (LSBE) status. The Lowest Bidders were determined to be responsive and responsible and are being recommended for the Contract awards.

51 D. Minority/Female Business Enterprise Selected Contractors L Name Townership/Certification Employees Floor Tech America, Inc. Midtown Carpet Co. Minority Business No County Certification Minority Business No County Certification Total: Minorities 5 Women 63% Minorities 17% Women Total: 6 6 Minorities 2 Women 100% Minorities 34% Women E. Minority/Female Participation/Non-Minority Contractors Not Selected Name Ownership/Certification Employees PUB Construction, Inc. The General Floor Prep and Installation Company Minority Business No County Certification Non-Minority Business Total: Minorities 5 Women 86% Minorities 12% Women Total: 9 Other information incorrectly completed. The Housing Authority conducts ongoing outreach to include minorities and women in the contract award process, including: providing information at local and national conferences; conducting seminars for minorities and women regarding programs and services; advertising in newspapers to invite placement on the vendor list; and mailing information to associations representing minorities and women. The above information has been voluntarily provided to the Housing Authority. The recommended award of the contracts is being made in accordance with the Housing Authority's policies and federal regulations, and without regard to race, creed, color, or gender.