RSG Solutions

South Gate

RSG has worked with the City of South Gate Housing Authority since 2014. Since this time, we have assisted the City on a number of engagements including:

9001-15 Long Beach Boulevard

RSG provided project feasibility and financial advisory services to the Housing Authority for the redevelopment of this property with Habitat for Humanity. Because of the unique nature of the ownership, RSG facilitated the creation of an ENA with Habitat that provides a framework for a combination of a mixed ownership and rental project to be operated by Habitat that fulfills a wide range of affordability, including the typically difficult to produce extremely low rental market.

9019 Long Beach Boulevard

RSG provided site acquisition and relocation services to the Housing Authority who is currently in the process of assembling this property for a potential second phase for the project at 9001-15 Long Beach Boulevard. As part of this, RSG evaluated marked conditions, available financing, and corresponding restrictions for the larger project. RSG’s role includes coordinating due diligence, including solicitation of environmental consultants, review of Phase II inspection reports, and advisory services to the client regarding their findings. Negotiations are ongoing with the seller due to elevated lead contamination discovered on the site.

Inclusionary Housing

As part of the City Council’s desire to address the threat of gentrification in the community, RSG evaluated and presented options for an inclusionary housing policy for consideration by the City. RSG conducted a review of fee levels in surrounding LA County communities, provided a policy framework to guide the rationale for an ordinance in the City, and provided informational briefings to the City Councilmembers. In June 2022, City Council adopted an inclusionary housing ordinance developed by RSG. RSG is currently developing an inclusionary housing in-lieu fee, expected to be adopted in Fall 2022.

Grant Application Assistance

RSG prepared the SB 2 Planning Grant for the City of South Gate, which sought to fund and/or reimburse various programmatic and procedural changes at the City to help expedite the production of all types of housing. Working closely with staff, RSG identified eligible projects and potential uses that required a nexus finding that RSG documented. The City was awarded funding for the grant earlier this year and has requested RSG’s services to assist with applying for the program’s year 2 funding, the Permanent Local Housing Allocation Grant. RSG continues to work with City staff on completing the grant application for submission in late July.

Annual Reporting

RSG prepares the annual Housing Successor Agency expenditure report and the Housing Authority Annual Report for South Gate (as well as several other RSG clients). As part of this work, RSG is proactive to engage our clients in the identification of issues and opportunities for investment to maximize the use of these resources.

Lease Negotiations

The City, as housing successor, owns a commercial building on Tweedy Boulevard as an interim use following the dissolution of redevelopment. After the City recognized that a long-term plan for disposition or redevelopment is needed for the site, RSG assisted the City extend the timeframe to dispose the property and negotiated a new lease agreement with the current market tenant with a final termination and exit to allow time for disposition of the site.

Housing Division Efficiency Audit

RSG conducted an audit of the operation, procedures, staff resources of the Community Development Department’s Housing Division. The report summarizes Housing Division staff management, analysis of operational budget trends, peer cities comparison, development of best practices and recommendations.

Density Bonus Ordinance Update

RSG worked with legal staff to assure that the City of South Gate was in compliance with the most recent state legislation regarding density bonuses.

Rent Control Analysis

RSG provided a training to members of the Planning Commission and staff on the history of rent control in California, peer cities analysis, and possible financial implications in South Gate if the City were to pursue rent control.

Housing Workshop for City Council and Planning Commission

In August 2021, RSG lead a Housing Workshop for City Council and Planning Commission on new housing legislation affecting the City. RSG also provided information on a variety of housing programs to assist in the production of affordable housing and to make progress towards the City’s RHNA goals.