United States Department of Housing and Urban Development (HUD) defines the term affordable housing as which the occupant, rental or owner-occupied, is paying no more than 30 percent of gross income for housing costs, including utilities. HUD conducts annual household income surveys to determine the maximum affordable housing payments that could be made. The table below shows the annual income for extremely low, very low, low, and moderate-income households by the size of the household and the maximum affordable housing payments. From these income and housing cost limits, the maximum affordable home prices and rents are determined.

Communities thrive when people have safe and stable housing; when they live near their jobs, good schools, and amenities; and when families can build roots and meet diverse neighbors.

Supports Economic Vitality

Affordable homes can attract and retain employees to a community, a selling point and a competitive advantage for employers.

Reduces Congestion

The proximity of affordable homes to workplaces reduces commute distances, enabling workers to spend more time with their families. This not only alleviates traffic congestion but also curtails air pollution and diminishes expenditures related to road infrastructure. Affordable housing residents tend to own fewer cars and drive less often.

Ensures Diversity of Housing and Residents

A balanced mix of housing alternatives, encompassing market-rate and affordable rentals, single-family homes, duplexes, and developments for seniors, provides opportunities for individuals of all backgrounds to enhance their economic standing and contribute meaningfully to their communities

 What is the City doing to support affordable housing?

The City’s Housing Division develops policies and programs to advance the development of affordable housing in El Segundo.  Efforts of the Division include:

• Identifying properties with the potential for affordable housing development
• Identify Federal, State, and other funding sources and grants, and program the user of Affordable Housing Funds
• Develop and implement the City’s Affordable Housing Strategic Plan
• Identify existing rental projects that may be suitable for acquisition, rehabilitation, and conversion to deed-restricted affordable and/or senior housing units
• Implementation of the City’s Housing Element and Regional Housing Needs Assessment compliance
• Work with market-rate residential developers, with the goal of obtaining as many affordable housing units as possible

The City is dedicated to finding housing affordability solutions through its various policies, programs, and funding sources. City Council adopted a comprehensive Affordable Housing Strategic Plan on December 19, 2023. This serves to supplement and build upon the Housing Element and help the City meet its future housing goals.

PROJECTS WITH AFFORDABLE HOUSING UNITS

FIRST TIME HOMEBUYER ASSISTANCE PROGRAMS

• Los Angeles County Home Ownership Program (HOP)

The HOP has been designed to meet the needs of low-income families and individuals who want to purchase a new home. HOP is financed with HOME funds provided through the U.S. Department of Housing and Urban Development (HUD) and is subject to the applicable federal regulations. The HOP is available for existing, new construction, approved short sales, and real estate owned (REO) properties. HOP funds are available on a first come, first serve basis, until all funds are used.

• Mortgage Credit Certificate (MCC) Program 

The MCC Program offers qualified first-time homebuyers a federal income tax credit. The homebuyer must work directly with a participating lender. If the homebuyer and the residence to be purchased are eligible, the lender fills out the MCC application on the homebuyer's behalf and sends it to the County for review. If approved, the County will then issue an MCC. After the homebuyer receives the MCC, the homebuyer can take the income tax credit every year, as long as the homebuyer keep the original first mortgage and continue to live in the house as the principal home.

• California Housing Finance Agency (CalHFA) Loan Programs

California Housing Finance Agency (CalHFA) has supported the needs of low- and moderate-income renters and homebuyers by providing financing and programs with a focus on equity. Its Single-Family Division partners with a preferred lender network to provide first-time homebuyers with down payment and closing cost assistance and access to first mortgage loans. CalHFA understands that buying a home is a huge responsibility; it is also a huge opportunity. CalHFA offers a variety of loan programs to help you purchase a home in California.