To: MAYOR AND CITY COUNCIL
From: JOY A. FORD, CITY ATTORNEY
STEPHANIE JOHNSON, QUALITY OF LIFE PROSECUTOR
TITLE
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APPROVE THE FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING WITH THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS TO ACCEPT ALLOCATED COUNTY LOCAL SOLUTIONS FUNDS AND LOS ANGELES COUNTY AFFORDABLE HOUSING SOLUTIONS AGENCY FUNDS FOR SINGLE-ROOM OCCUPANCY (SRO) AND MOTEL BEDS IN THE AMOUNT NOT TO EXCEED $260,000
ADOPT BY 4/5 VOTE AND BY TITLE ONLY RESOLUTION NO. CC-2607-046, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING A FISCAL YEAR 2026-2027 BUDGET MODIFICATION TO APPROPRIATE $260,000 FROM THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS COUNTY ALLOCATED LOCAL SOLUTIONS GRANT FUNDS TO THE INTERGOVERNMENTAL GRANT FUND FOR SINGLE-ROOM OCCUPANCY (SRO) AND MOTEL BEDS
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EXECUTIVE SUMMARY
Given the continued success of the motel stays and SROs, the South Bay Cities Council of Governments (SBCCOG) has awarded Redondo Beach an additional $260,000 for continued operations of these programs. On June 16, 2026, the Mayor and City Council approved leases and addendums for eighteen (18) single room occupancy (SRO) units from Swami International. Staff recommends that the City Council approve the first amendment to the Memorandum of Understanding (MOU) and resolution to appropriate these funds to the Fiscal Year’s budget.
BACKGROUND
On November 5, 2024, Los Angeles voters approved Measure A, which is a half-cent of sales tax to address homelessness with housing and services. On March 25, 2025, the Board of Supervisors adopted the Local Solutions Fund (LSF) funding formula as part of the Measure A requirements, which is based 90% on a region’s Point-In-Time Homeless Count over a two-year average and 10% on a region’s low-income population percentage. Based on this formula, the SBCCOG is projected to receive $3,048,204 in the first year (FY25/26). For FY26/27, the 2026-2027 fiscal year, SBCCOG has been allocated $3,173,701 in Measure A LSF funding.
In addition to LSF funding, the SBCCOG, as an eligible jurisdiction per SB 679, will receive from the Los Angeles County Affordable Housing solutions Agency (LACAHSA), anticipated at approximately $11 million annually to support (1) housing production, preservation, and ownership; (2) renter protection and homeless prevention; and (3) technical assistance.
SBCCOG is now awarding the City with new funding in the amount of $260,000 for up to 18 SRO beds and motel stays. This program addresses the immediate and transitional housing needs for individuals experiencing homelessness, particularly those who are unsheltered, at high risk, or unable to access traditional shelter settings.
The program is specifically designed to provide bridge housing and emergency shelter alternatives, ensuring individuals can quickly move indoors while being connected to supportive services that promote stabilization and long-term housing outcomes. Currently, all SRO rooms are occupied and the City has a 42% exit rate to permanent housing. For comparison, the exit rate from interim shelter to permanent housing in all of SPA 8 and the County is 17%.
SBCCOG terminated the Homeless Court budget for FY26/27. This funding covered services provided by CLEAR Behavioral Health. The City will fund these services with opioid settlement funds.
COORDINATION
The City Attorney’s Office coordinated with the SBCCOG to execute the first amendment to the MOU and the Finance Department for the budget resolution.
FISCAL IMPACT
Approval of this first amendment to the MOU and resolution will appropriate $260,000 of funding to be used for motel stays and SROs.
Submitted by:
Joy A. Ford, City Attorney
ATTACHMENTS
• First Amendment to the MOU
• Resolution No. CC-2607-046 - Budget Modification - SBCCOG LSF Allocation