Navigating Mello Act Compliance in 2023: Insights for LA Expedite Inc. Clients
We hope this content finds you thriving in your development pursuits. In our commitment to keeping you informed, we are pleased to share the latest insights on Mello Act compliance within the Los Angeles Coastal Zone. As we venture further into 2023, understanding the ever-evolving landscape of affordable housing regulations is crucial.
A Recap of the Proposed Ordinance
You may recall that the City of Los Angeles was contemplating a proposed ordinance to bolster existing interim procedures for Mello Act compliance. The 1982 Mello Act, a state law, was crafted to safeguard housing for individuals and families with low to moderate incomes in California's picturesque Coastal Zone. The proposed ordinance, which we discussed back in 2021, outlined several pivotal provisions:
Onsite Replacement: The ordinance aimed to mandate onsite replacement of affordable housing wherever feasible.
One-for-One Replacement: Units were to be replaced on a one-for-one basis, ensuring like-for-like affordability.
Coastal Zone Affordable Housing Trust Fund: The creation of this fund was intended to collect in-lieu fees from projects unable to replace affordable units, with the aim of financing the construction of new affordable housing.
Effective Date: The ordinance was slated to take effect 30 days after its adoption.
Mello Act Compliance Updates - 2023 Insights
Initiating Mello Act Compliance:
Starting the Process:
Consultation with DCP: Begin by consulting with the Department of City Planning (DCP) to determine if your project qualifies for an exemption.
LAHD Mello Determination: If an LAHD Mello Determination is required, DCP provides a Mello Act Advisory Notice, Screening Checklist for Coastal Zone Projects, and a DCP Case Number.
LAHD Mello Determination Process: Applicants referred to LAHD are presumed vetted by DCP and are not exempt. They must complete LAHD's Demolition-Conversion Mello Application.
Assessment by LAHD: LAHD conducts its assessment of potential affordable units based on rental history from the past three years and current residents' income levels.
Affordability & Documentation:
Confirmation of Affordability: Affordability status requires confirmation by an LAHD Mello Act Analyst.
Vacant Units: Units vacant for over 365 days before the application are not considered affordable. Owners must provide evidence of such vacancies.
Required Documentation: It is imperative to provide documents substantiating the project's rental history. Failure to do so within 30 days could result in an roadblock.