Affordable Housing Production
Program
Inclusionary Housing
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What is AHPP?
What is a Deed Restriction?
What are my responsibilities as the owner or
property manager of a Deed Restricted property?
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AHPP = Affordable Housing Production Program
(aka Inclusionary Housing Program) The program
was created when residents of Santa Monica
passed Proposition R which added Section 630 to
the City Charter.
The charter amendment specified that 30% of
newly constructed multifamily housing be
affordable to low and moderate income
households.
A deed restriction is an agreement that was signed
by the developer of the property and recorded on
title. It places restrictions on the property which
generally run with the property for a 55 year
period.
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Pre-Lease Up Responsibilities
 Check your deed restriction agreement to confirm the
specific requirements for your property as they may
vary from property to property
 Your deed restriction may require you to submit a
Marketing Plan or a draft lease for City review and
approval
 Your deed restriction will explain if you are required to
select tenants from the City’s waiting list or self-select.
 If you self-select, you must conduct Income
Certification of tenants
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Post Lease Up Responsibilities
 Annual Re-Certification of tenants
 Submitting annual report to City
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Some deed restriction agreements call for a
Marketing Plan.
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A Marketing Plan is a brief explanation of how
vacancies of deed restricted units will be
advertised.
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The Marketing Plan should be submitted to the
City’s Housing Division for review and approval.
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The lease or rental agreement being used for the
affordable units needs to be submitted to the
Housing Division for review and approval.
If the lease or rental agreement doesn’t include
language indicating that the unit is deed restricted
and annual certification is required, then an
Affordable Housing Addendum needs to
accompany the lease or rental agreement.
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When a vacancy occurs, follow the guidelines
of your deed restriction and either contact the
City to use the waiting list or implement your
Marketing Plan if you are self-selecting.
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You may list your vacant unit with the Housing
Authority to attract a Section 8 tenant.
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If you take a Wait List or Section 8 tenant you
do not have to certify the household’s income
(the City will do this for you)
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If you select a Section 8 tenant you may be
able to collect a higher rent than allowed by the
AHPP program maximum
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If your deed restriction allows you to self select
a tenant, be mindful of the local live/work
preference requirement and remember that you
will be responsible for conducting the income
verification for that household
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Income includes the following:
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Employment income including bonuses & commissions
Alimony
Social security
Disability
Welfare
Unemployment Benefits
Pensions
Financial Aid
Supplementary benefits
Support payments (gift from friends & family included)
Income from sale of real property
Income from assets over $5,000 (not including automobiles
and furniture)
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Collect income declarations from households
members over 18 years of age.
Gather income verification documents to backup
the income declaration.
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Verification for income can be in the form of pay stubs,
income tax returns, bank account statements, financial
statements, stock certificates etc.
The income of a live-in aide is not considered if the
tenant can verify the need for a live-in aide.
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Add the income of each household member over
the age of 18 and adjust as follows:
Deduct $480 for each dependent (household member
under 18 years of age)
 Deduct $400 for any family with a head of household over
the age of 62 years of age
 Deduct medical expenses in excess of 3% of annual
income for any elderly family.
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For households whose total assets exceed $5,000,
you must calculate the annual asset income by
multiplying the value of the total assets by 10%.
Add this total to the other household income to get
the adjusted gross income.
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Assets include the following:
Checking and Savings balances
 CD and Money Market Accounts
 Mutual Funds
 Real Estate
 Trust Funds
 401k/IRA
 Stocks and Bonds
 Life Insurance Policies
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To determine the value of each asset calculate
the cash value (i.e. what is the asset worth
once it’s converted to cash).
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If the Assets amount to over $5,000 calculate
the value into the household income total.
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The deed restrictions require annual reporting to
the City which involves recertification.
Every year you must certify what the household’s
income is to determine whether they have
exceeded the maximum allowable income by
140%.
If a household exceeds the maximum allowable
income by 140% you may either move them into a
different unit or serve them with a one year notice
to vacate.
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Every year you will receive a letter from the
Housing Division asking you to use your assigned
user name and password to log into our online
system to submit your annual report.
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Your Deed Restriction Agreement requires you
to submit an annual report to the City.
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In an effort to simplify and expedite the reporting
process the City has created an online reporting
system which allows you to use your personal
username and password and log-in to submit your
report electronically.
You will receive a letter every year prompting you to
use your log-in information to log-on to the City’s
reporting website and submit your report.
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Every year the City will randomly select a certain
percentage of its portfolio to audit.
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If you are selected for an audit, you will notified in
writing in advance about the date and time of the
audit.
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City staff will conduct an audit of your tenant files
and/or inspection of your unit(s)