By Eugene T. Lowe
October 7, 2002

Conference of Mayors President Boston Mayor Thomas M. Menino convened several members of the Conference of Mayors Executive Committee in Los Angeles on September 19 to learn from Los Angeles Mayor James K. Hahn about his city's housing trust fund. The Los Angeles Housing Trust Fund has received national attention since its adoption by the city council in March.

To brief the mayors, Mayor Hahn brought together four panelists who have been key to the development of the city's housing trust fund and who will play important roles in the trust fund's future success. The panelists were: Mike Feur, former council member and an attorney with Morrison & Foerster; Jan Briedenbach, Executive Director, SCANPH (Southern California Association of Non-Profit Housing); David Grunwald, Executive Director, LA Family Housing; Robin Hughes, Executive Director, LA Community Design Center; and, Wendy Greuel, council member, LA 2nd District.

Mike Feur, who served as moderator for the briefing, told the mayors how the trust fund began: a task force was created by the previous mayor which recommended a trust fund, and Mayor Hahn had committed to carry the recommendation out by creating the trust fund. Mr. Feur said that five questions would have to be answered if the trust fund is to be successful: Who ought to benefit from the trust fund?; What kind of funding should the trust fund provide?; How will the trust fund leverage its resources?; How will the trust fund be governed ?; and, How will the trust fund be sustained over the years?

Jan Briedenbach then gave an overview of the housing crisis that made it necessary to create the city's trust fund. She said that with great gaps in income between people and rising housing costs, along with cutbacks at the federal level, Los Angeles has been caught in a housing crisis as most cities in the nation. She also said that Los Angeles has the lowest homeownership in the nation except New York City. In Los Angeles, 61 percent of the people are renters. She added: "When people want to buy a home they have to move out of the city."

David Grunwald described how the trust fund will leverage funds. He said that funds would come from local, state, private, and federal sources. Leveraging the funds is necessary, he said, because you have to do this "to get affordability." Mr. Grunwald pointed out that the development that the mayors would tour—the Offsay/Steinhauser Village—was a model project of leveraging.

Robin Hughes spoke about sustaining the trust fund. She said that there had to be a dedicated permanent revenue source, and that it must be predictable. In addition, she said that the trust fund had to have a clear focus, and measurable outcomes. It is also important that the "trust fund dollars get out on the street." Ms. Hughes added that the "program must be flexible" with a clear sense of accountability. Over the years, she concluded, a broad coalition supporting the trust fund must stay together.

Wendy Gruel said that the biggest challenge to the trust fund is a dedicated revenue stream. She said that "we have a lot of education to do on what affordable housing is." Council member Gruel said that Mayor Hahn has embraced the housing trust fund. But she said: "It is a challenge. We must address many issues. But we have a dynamic group of people working on the trust fund. We must get HUD to recognize that they have an important role to play."