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Transfer of Floor Area Rights (TFAR) / Public Benefit Payment Trust Fund / Distribution of Funds

Council File 14-1411-S5

In progress — the city is redistributing public benefits money from a developer-fee program, most recently adjusting which department runs small-business services in Council District 1. Further review is underway.

Introduced
2024-05-16
Last changed
2026-06-25
Status
open
Expires
2028-06-24
Committee
Planning and Land Use Management Committee
Mover
EUNISSES HERNANDEZ
Second
BOB BLUMENFIELD
Initiated by
Chief Legislative Analyst
References
Chief Legislative Analyst Report: 23-11-0577; 25-10-0892; 26-06-0420

Brief

This file concerns the Transfer of Floor Area Rights (TFAR) Public Benefit Payment Trust Fund, which collects payments from developers who use floor area rights in Los Angeles. The Chief Legislative Analyst submitted recommendations on how to distribute funds held in the trust. Introduced by Councilmember Eunisses Hernandez in May 2024, the motion passed Council 14-0-1 in May 2026 and was sent to the Mayor. The Planning and Land Use Management Committee most recently waived consideration on June 25, 2026.

Full summary

The Transfer of Floor Area Rights program allows developers to purchase the right to build additional floor area in specific neighborhoods. Developers who use this mechanism must make public benefit payments that are held in a dedicated trust fund. This file tracks the Chief Legislative Analyst's recommendations on how those accumulated funds should be distributed across eligible projects and programs, and the Council's ongoing responses to those recommendations. The most recent substantive action came via a May 2026 motion by Councilmember Eunisses Hernandez, seconded by Bob Blumenfield, that amended the Council's original September 2024 allocation decision. The motion made two specific changes related to a Small Business Support program in Council District 1: it authorized the City Clerk to take over from the Economic and Workforce Development Department as the implementing city department for a program run by PACE Business Development Center, and it directed the Controller to transfer $200,000 from the Economic Development Trust Fund into the Council District 1 Public Benefits Trust Fund for that purpose. The practical effect is a bureaucratic reassignment meant to smooth the delivery of small business support services funded through TFAR revenues. The legislative path has been active across multiple years. The file entered the Planning and Land Use Management Committee in May 2024, the committee approved an amended version in October 2025, and the full Council adopted it on November 12, 2025. The May 2026 motion amending the earlier allocation passed Council 14-0-1 on May 12, 2026, with action becoming final on May 28, 2026. On June 25, 2026, PLUM Committee waived consideration of a new Chief Legislative Analyst document submitted June 23, 2026, suggesting further reporting or review is underway. The file remains open and pending in committee.

Activity (25)

  • 2026-06-25 Chief Legislative Analyst document(s) referred to Planning and Land Use Management Committee.
  • 2026-06-25 Planning and Land Use Management Committee waived consideration of item .
  • 2026-06-24 Document submitted by Chief Legislative Analyst, dated June 23, 2026.
  • 2026-05-28 Council action final.
  • 2026-05-12 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
  • 2026-05-08 City Clerk scheduled item for Council on May 12, 2026.
  • 2026-05-05 Motion referred to Council.
  • 2025-11-20 Council action final.
  • 2025-11-12 City Clerk transmitted file to Mayor. Last day for Mayor to act is November 24, 2025.
  • 2025-11-12 Council adopted item forthwith.
  • 2025-11-07 City Clerk scheduled item for Council on November 12, 2025.
  • 2025-10-28 Planning and Land Use Management Committee approved as amended .
  • 2025-10-24 Planning and Land Use Management Committee scheduled item for committee meeting on October 28, 2025.
  • 2025-10-22 Chief Legislative Analyst document(s) referred to Planning and Land Use Management Committee.
  • 2025-10-22 Document submitted by Chief Legislative Analyst, dated October 22, 2025.
  • 2024-09-17 Council action final.
  • 2024-09-13 City Clerk transmitted file to Mayor. Last day for Mayor to act is September 23, 2024.
  • 2024-09-11 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
  • 2024-09-06 City Clerk scheduled item for Council on September 11, 2024.
  • 2024-08-30 Planning and Land Use Management Committee approved item(s) .
  • 2024-08-23 Planning and Land Use Management Committee scheduled item for committee meeting on August 30, 2024.
  • 2024-08-23 Chief Legislative Analyst document(s) referred to Planning and Land Use Management Committee.
  • 2024-08-22 Document(s) submitted by Chief Legislative Analyst, as follows:Chief Legislative Analyst report 23-11-0577, dated August 14, 2024, relative to the Transfer of Floor Area Rights Public Benefit Payment Trust Fund Distribution.
  • 2024-05-16 Chief Legislative Analyst document(s) referred to Planning and Land Use Management Committee.
  • 2024-05-16 Document(s) submitted by Chief Legislative Analyst, as follows:Chief Legislative Analyst report 23-11-0577, dated May 16, 2024, relative to the Transfer of Floor Area Rights Public Benefit Payment Trust Fund Committee recommendations for the distribution of funds held in the Trust Fund.

Documents (14)

Council votes (1)

  • 2026-05-12 Adopted — 14-0-1 · Regular

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