In a move that almost snuck under the radar last month, the City Council voted 4-3 to support an effort by an affordable housing developer to purchase another large property along Wilshire Blvd as part of a larger housing development push that will now include dedicated units for senior citizens.
The closed session decision was a surprise to many in the audience who had attended the meeting to speak on a previously agendized open session item specifically addressing the kind of housing that Hollywood Community Housing Corporation (HCHC) would build on several public parking lots in the area. In fact, 25 of the 30 speakers for Public Input on Agenda Items Under Closed Session, addressed the item, as a reminder of just how significant this issue is to nearby residents.
It all started in March of this year, when Council unanimously voted to build affordable housing on three city-owned sites, the original proposal included approximately 130 units on three city-owned properties at 1217 Euclid St, 1211-1217 14th St and 1146 16th St, in line with the city’s 2021-2029 Housing Element.
Then came HCHC’s community outreach efforts that met with criticism. On July 12 of this year, residents from the mid-Wilshire neighborhood gathered at Saint Anne Church on Colorado Ave to engage with HCHC over the proposed plans. Locals said it was an attempt to divide the room and make their management of resident’s opposition easier to control. Sarah Letts, Executive Director of HCHC, even objected to the Daily Press filming the meeting, despite the fact that it was a public event.
Resident opposition to the projects persisted with locals arguing the housing would increase crime in the area and that the buildings themselves were out of character for the neighborhood. Rather than build housing for currently homeless individuals (Permanent Supportive Housing or PSH), residents pushed for housing for senior citizens.
In August, discussion Item 16J was placed on the Council’s agenda by Vice Mayor Lana Negrete, Councilmember Oscar de la Torre and Councilmember Christine Parra. This stated that after hearing community feedback, Council would direct the City Manager to explore HCHC revising its proposed housing projects on surface parking lots owned by the City to replace all proposed Permanent Supportive Housing (PSH) units with senior affordable housing. The City Manager was also to be asked to return to City Council with an evaluation of the impacts of replacing the permanent supportive housing units with senior affordable housing within 45 days.
Simultaneously, a request was made by Parra, Negrete and de la Torre to also have a Closed Session discussion on this item. However, Councilmembers were made aware by City staff that a new, key element would be added to that conversation, but no one had any idea that it would involve the potential purchase of the Unleashed building at 1402 Wilshire Blvd.
Back in January of this year, there was some confusion when a "For Lease" sign appeared above the Unleashed store signage on the 14th Street side of the site. We reached out to Petco at the time, the parent company of Unleashed and a spokesperson told the Daily Press that the store was very much there to stay. But, the building, which includes the adjacent 14th Street property, has been for sale for some time, so the future of current tenants is unclear.
According to Parra, she, Negrete and de la Torre, along with Heather Averick, Housing and Human Services Director for the City of Santa Monica, other members of City staff, and representatives from HCHC and People Concern, met with mid-Wilshire residents on July 31. One resident asked Letts if their funding was directly tied to PSH, to which Letts replied, no. Coincidently, two days later on August 2, Averick began posting articles on the City of Santa Monica website promoting the benefits of PSH.
It was also when these items were placed on the August 27 meeting agenda that residents in the mid-Wilshire area actually learned of the plan to revise the original proposal (to attempt to buy 1402 Wilshire) and introduce (senior) PSH units along with senior affordable housing.
When Councilmembers returned from Closed Session, City Attorney Doug Sloan made the following statement, "In the Hollywood Community Housing Corporation matter – it’s a real estate matter – the council voted four to three to approve the following: Give direction to continue exclusive negotiations with HCHC based upon a revised 100% affordable development with large family housing on 1217, Euclid Street and senior housing with 40 permanent supportive housing units for seniors on 1211, to 1217 14th Street and 1402 Wilshire Boulevard, provided that 1402 Wilshire Boulevard (Unleashed) can be acquired by HCHC, from a third party.
"Also, this revised project would be coupled with a city subsidy development on 1146 16th Street would be eliminated to mitigate parking impacts [sic] and would remain public parking. Development of 85 senior [affordable] housing apartments, inclusive of 40 permanent supportive housing apartments for seniors would be built on two parcels, 1211 and 1217 14th Street and 1402 Wilshire Boulevard instead of one to reduce building height adjacent to neighboring residential buildings on 14th Street."
Vice Mayor Lana Negrete provided the swing vote as she joined Councilmembers Gleam Davis, Jesse Zwick and Caroline Torosis in voting to continue exclusive negotiations with HCHC, while Councilmembers Christine Parra, Oscar de la Torre and Mayor Phil Brock voted against.
Speaking to the Daily Press regarding her decision, Negrete said, "What we did do successfully is we did change out [sic] the fact that it is not just PSH mixed with families. We got what we wanted, which is senior housing. We don't have enough senior housing … It is [what] the majority of the units are geared towards. It is the majority, more than half goes towards just someone who's on the senior housing wait list … And so we did win there, but we have to negotiate in good faith. If we don't, we will be subject to Builder's Remedy and they'll build whatever they want with no parking. So that's what happened."
"While I know we're all glad to see more units for senior housing, this compromise still falls short," Penelope McClowry, 84-year-old, mid-Wilshire resident, told the Daily Press. "We have been told that over 700 local seniors are waiting for affordable housing, yet 30% of this proposed project remains permanent supportive housing. It's troubling that based on the city's own waitlist, homeless individuals can qualify for PSH units simply by being 'high users of city services,' without any other connection to Santa Monica. I think our City should be focusing on affordable units for long-time Santa Monica seniors struggling to stay in their homes."
+++UPDATE+++ At the August 27 meeting, the City Council directed staff to continue negotiations with HCHC under the Exclusive Negotiating Agreement. Part of those negotiations include an updated proposal by HCHC for the development that includes added senior housing and additional parking and reduced building height. That proposal involves HCHC acquiring a privately-owned property at 1402 Wilshire Blvd, adjacent to the city-owned site. The city is not currently involved in HCHC attempting to acquire the property at 1402 Wilshire. While a city subsidy is proposed for the revised project that includes the purchase, the subsidy has not yet been finalized in amount or scope and has not been dedicated for the explicit purchase of 1402 Wilshire Blvd. City Hall further clarified that development of city-owned properties, including parking lots, has been required by the state for several years to maintain a compliant housing element and as these developments begin to move forward, the city is continuing to provide information to the community.
