TO: CITY COUNCIL
FROM: ADAM PIRRIE, CITY MANAGER
DATE: OCTOBER 13, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
UPDATE ON RENTAL ASSISTANCE PROGRAMMING (FUNDING SOURCES: SUCCESSOR HOUSING FUND AND INCLUSIONARY HOUSING FUND)
Body
SUMMARY
At its April 14, 2026, meeting, the City Council approved additional funding to continue the Claremont Temporary Housing Stabilization and Relocation Program through December 31, 2026. Although the City stopped accepting new applications on January 31, 2026, households currently enrolled in the program will continue receiving monthly rental assistance through December 2026.
As directed by the City Council, the purpose of this report is to provide an update on the program and discuss potential options beyond the current funding period.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Appropriate $140,000 from the Successor Housing Fund and $220,000 from the Inclusionary Housing Fund to continue the Claremont Temporary Housing Stabilization and Relocation Program through June 30, 2027; and
B. Provide additional direction to staff regarding the program structure.
Body
ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Take no action, in which case the Claremont Temporary Housing Stabilization and Relocation Program will sunset on December 31, 2026.
FINANCIAL REVIEW
The number of households receiving assistance and the amount disbursed each month vary based on rent increases and the number of households exiting the program (i.e., moving out of Claremont). The total amount disbursed each month ranges on average between $55,000 and $60,000. This program is temporary in nature and will conclude when the current allocation of $2,040,000 in funding is exhausted, which is anticipated to occur in December 2026 when insufficient funds will remain to pay participants’ January 2027 rent payments, unless the City Council directs otherwise.
Due to the program’s success, significant staffing resources have been required to review applications and process payments. Additionally, staff has spent a significant amount of time with program participants and prospective program applicants answering questions about the application process, assisting with filling the applications out, and corresponding with property managers and housing providers. The current estimated cost of staff time to date is well over $225,000. Currently, 191 subsidy payments are issued each month, which represents an approximate 25-30 percent increase in workload for Accounts Payable staff alone. While staff can maintain the current program without the need for additional staff positions, staff does not have the capacity to take on additional programming without creating new staffing positions and hiring qualified candidates to fill those positions.
During its September 8, 2026, City Council meeting, the City Council expressed an interest in using Inclusionary Housing Fund monies to continue the Claremont Temporary Housing Stabilization and Relocation Program. The Inclusionary Housing Fund receives in-lieu fees collected under the City’s Inclusionary Housing Ordinance (Claremont Municipal Code (CMC) Chapter 16.036), along with the City’s equity-share repayments upon resale of restricted for-sale inclusionary units. The current available fund balance is $613,638. The City also anticipates receiving approximately $1,700,000 in in-lieu fees from the Taylor Morrison Park View development. With this fee payment, the total amount of funding available in the Inclusionary Housing Fund will be approximately $2,313,638.
The timing of the in-lieu payments depends on each project’s development schedule. One half of the in-lieu fee must be paid prior to the issuance of a building permit for the project; the remainder of the fee is paid before a certificate of occupancy is issued for any unit in the project. The Taylor Morrison Park View project is anticipated to apply for building permits during the current fiscal year (2026-27) and receive a certificate of occupancy for the first units in 2027-28.
Consistent with CMC Section 16.036.080, Inclusionary Housing Fund monies may be used to increase and improve the supply of housing affordable to moderate-, low-, and very low-income households in Claremont, including rental assistance, pre-development loans, and assistance to housing development corporations or other government entities, as well as reasonable administrative costs of administering the ordinance.
On April 14, 2026, the City Council allocated $360,000 from the Successor Housing Fund to continue the Claremont Temporary Housing Stabilization and Relocation Program through December 2026. The California Health and Safety Code allows a "housing successor" (the city or county entity that took over the housing functions of a former redevelopment agency) to spend up to $500,000 from its Low- and Moderate-Income Housing Asset Fund (LMIHAF) for specific homeless prevention and rapid rehousing services, including rental assistance. The City’s Successor Housing Fund has a current balance of approximately $1.9 million. The estimated cost to extend the program for an additional six months, through June 2027, is $360,000. Staff therefore recommends that the City Council appropriate $140,000 from the Successor Housing Fund and $220,000 from the Inclusionary Housing Fund to fund the six-month extension.
The staff cost to prepare this report is estimated at $900 and is included in the operating budget of the Administrative Services Department.
ANALYSIS
On April 25, 2023, the City Council allocated $1 million in American Rescue Plan Act (ARPA) funding to establish the Claremont Temporary Housing Stabilization and Relocation Program. In response to continued demand for rental assistance, on April 23, 2024, the City Council allocated an additional $680,000 to the program. The additional funding was provided from the City’s General Fund and represented a portion of the $3.4 million in proceeds from the sale of the property at 451 W. Arrow Highway, of which 20 percent was set aside for affordable housing purposes.
At the City Council Priorities Workshop on January 31, 2026, the City Council directed staff to stop accepting new program applications and return at a future meeting with potential funding options. At its April 14, 2026, meeting, the City Council allocated an additional $360,000 from the Successor Housing Fund to continue providing assistance to existing program participants through December 2026. Households currently enrolled in the program have continued to receive monthly rental assistance; however, no new households have been enrolled since January 31, 2026.
As described in the Financial Review section of this report, at its September 8, 2026, meeting, the City Council expressed an interest in using Inclusionary Housing Fund monies to continue the program. The estimated cost of extending assistance to existing participants for an additional six months is $360,000. Staff therefore recommends appropriating $140,000 from the Successor Housing Fund and $220,000 from the Inclusionary Housing Fund to continue the program through the end of June 2027.
In June 2026, City staff met with representatives from the Los Angeles County Affordable Housing Solutions Agency (LACAHSA) to discuss potential strategies for supporting participating Claremont households beyond the conclusion of the City’s rental assistance program. Representatives from the San Gabriel Valley Council of Governments (SGVCOG) also participated in the discussion. As an outcome of that meeting, LACAHSA offered to provide approximately $150,000 in technical assistance funding to retain HR&A Advisors to assist the City in developing a long-term renter support strategy.
The technical assistance funding cannot be used to provide direct rental assistance. Rather, the funding is intended to support planning, program development, and implementation efforts. The financial agreement for these services is between LACAHSA and HR&A Advisors; the City is not a party to the agreement.
To support this work, the City entered into a data-sharing agreement with HR&A Advisors that allows the City to provide information regarding households currently participating in the Temporary Housing Stabilization and Relocation Program. Using this information, HR&A is working with the City and regional partners, including the Los Angeles Homeless Services Authority (LAHSA) and LACAHSA, to identify other resources for which participating households may be eligible and assist in connecting them with services and assistance they may not currently be receiving.
Staff anticipates providing the City Council with an update on these efforts in coming months. The update will also include recommendations regarding potential long-term funding strategies should the City Council wish to continue funding rental assistance beyond June 2027 using Inclusionary Housing Fund monies.
Extending the Program through June 2027 would provide additional time for staff and HR&A to work directly with participating households to identify and connect them with other available resources. The extension would also provide additional transition time for participating households should the City Council ultimately modify or discontinue the program after June 2027.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, General Plan, 2026-28 Budget, and the Youth and Family Master Plan.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Adam Pirrie Katie Wand
City Manager Deputy City Manager
Attachment:
Public Comment Received Before Publication