TO: TARA SCHULTZ, CITY MANAGER
FROM: ANNE K. TURNER, DIRECTOR OF HUMAN SERVICES
DATE: FEBRUARY 25, 2020
Reviewed by:
City Manager: TS
Finance Director: AP
SUBJECT:
Title
SAN GABRIEL VALLEY REGIONAL HOUSING TRUST JOINT EXERCISE OF POWERS AGREEMENT (FUNDING SOURCES: 2018 HOMELESSNESS PLAN IMPLEMENTATION GRANT TRI-CITIES PRIORITY AREA 1 AND SUCCESSOR HOUSING FUND)
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SUMMARY
In October 2019, Governor Gavin Newsom signed SB 751 (Rubio), legislation that allows the cities in the San Gabriel Valley and the County of Los Angeles to form the San Gabriel Valley Regional Housing Trust (SGVRHT) Joint Powers Authority (JPA). The Trust is intended to provide a stronger opportunity for San Gabriel Valley cities to attract and secure funding for supportive housing and affordable housing projects.
In order to join the SGVRHT, the City must execute the joint powers agreement, which sets forth the powers of the Trust that the member parties would share. Any city within the San Gabriel Valley is eligible - though not required - to join by executing the agreement. Joining the Trust would provide additional potential funding resources for the planning and construction of affordable housing and homeless housing projects in the City.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council authorize the execution of the San Gabriel Valley Regional Housing Trust Joint Exercise of Powers Agreement and join the San Gabriel Valley Regional Housing Trust as a full member.
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ALTERNATIVE TO RECOMMENDATION
• Request additional information from staff
FINANCIAL REVIEW
The Agreement establishes an annual administrative fee for Parties to the Agreement. This fee is based on population size.
|
Population |
Administrative Fee |
|
Up to 30,000 |
$10,000 |
|
30,001 - 60,000 |
$15,000 |
|
60,001 - 100,000 |
$20,000 |
|
100,001 - 175,000 |
$25,000 |
|
County (per district) |
$25,000 |
The SGVRHT will actively pursue public and other grant funding and private donations. However, there are some activities that the SGVRHT will likely undertake - i.e. fundraising and advocacy efforts - that may not be eligible for these funding sources. The annual administrative fees will provide the SGVRHT with a funding source for these important activities.
The cost for full membership in the SGVRHT for the City of Claremont will be $15,000 annually. The Cities of Claremont, La Verne, and Pomona were awarded $50,000 through the 2018 Homelessness Plan Implementation Grant Tri-Cities Priority Area 1 Proposal which will cover the first year of membership. In subsequent years the annual membership will be funded through the City’s Successor Housing Fund.
The staff cost to prepare this report and administer this project is estimated at $642 and is included in the operating budget of the Human Services Department.
ANALYSIS
The SGVRHT is being created to increase the availability of funding for the planning and construction of housing projects for the homeless and extremely low, very low, and low-income populations within the San Gabriel Valley. It will be able to receive public and private financing and funds and will also be able to authorize and issue bonds. The SGVRHT will be governed by elected officials from the San Gabriel Valley, so they will be able to direct funding to those projects and programs that are most important to the region.
As indicated above, the SGVRHT is a Joint Powers Authority (JPA) that any city and the Los Angeles County Supervisorial Districts within the San Gabriel Valley can join by executing the joint powers agreement. The agreement was developed by a working group of staff from approximately seventeen cities in the San Gabriel Valley. Staff from every city was invited to bi-weekly meetings. Before finalization, the agreement was also circulated to city managers and city attorneys for additional comment and review. The finalized agreement, based on input, is attached (Attachment).
The agreement sets forth the powers authorized to the SGVRHT in support of its purpose of funding and financing the planning and construction of affordable housing and housing for the homeless. The agreement also establishes the limitations on the powers of the SGVRHT. Specifically, the SGVRHT cannot do the following:
• Regulate land use within the jurisdiction of any of the parties;
• Levy, advocate for, incentivize the levying of an impact fee, charge, or other land-use exaction as a condition of approval for the funding for a development project;
• Require inclusionary zoning requirements;
• Fund or otherwise approve an agreement for a housing project that is not supported by the party; or
• Require the parties to this agreement to accept or provide any specific number of housing units as a prerequisite to joining or remaining a party to this agreement.
The SGVRHT will be responsible for preparing an annual audit and annual financial report to describe the funds received by the SGVRHT, the use of said funds, and how they have furthered the purpose of the SGVRHT.
The City may decide to leave the SGVRHT at the end of any fiscal year, with at least six months’ notice to the SGVRHT Board of Directors. If the City decided to leave the SGVRHT and a project was currently being funded in its jurisdiction, it would be responsible for an exit fee associated with the cost of the SGVRHT’s completion of the project. If the City were to leave and return to the SGVRHT, it would be responsible for additional administrative fees upon its re-entry into the SGVRHT.
SGVRHT Board of Directors
The agreement establishes that the SGVRHT shall be governed by a Board of Directors composed of the following members:
• Seven members from jurisdictions that are parties to the agreement (i.e. any city or the County of Los Angeles); and
• Two members that are experts in housing or homeless policy.
The SGVRHT Board of Directors will be named by the Governing Board of the San Gabriel Valley Council of Governments (SGVCOG) for two-year terms. These criteria for the SGVRHT Board of Directors were established in the authorizing legislation.
The SGVCOG Governing Board is anticipated to use a district-based approach to appoint the seven jurisdictional members. The following districts would be used:
• Northeast District: Azusa, Claremont, Glendora, La Verne, San Dimas
• Southeast District: Covina, Diamond Bar, Industry, La Puente, Pomona, Walnut
• Central District: Baldwin Park, El Monte, Rosemead, South El Monte, Irwindale, West Covina
• Northwest District: Arcadia, Bradbury, Duarte, La Canada Flintridge, Monrovia, San Marino, Sierra Madre
• Southwest District: Alhambra, Montebello, Monterey Park, San Gabriel, South Pasadena, Temple City
• Two at-large members from any city that is a party to the agreement, or the County if it is a party to the agreement.
If only one city from a district were to join the SGVRHT, an at-large election amongst any jurisdiction that is a party to the agreement (including any city and the County of Los Angeles) would occur. This will help to ensure that there is regional representation amongst the parties, while also ensuring that there is adequate opportunity for every city to have representation on the Board, regardless of their district.
The SGVCOG Governing Board will develop and adopt a process by which to appoint all members of the SGVRHT Board of Directors, including the two housing and homeless experts. At this time, the SGVCOG anticipates that the Governing Board will approve this process at its February 2020 meeting and hold elections for the SGVRHT Board of Directors at its April 2020 meeting.
SGVRHT Staffing
The SGVRHT will not have its own staff but will instead contract with another public entity for its core staff. The SGVRHT will also procure and hire consultants to provide additional technical support and expertise for more specialized topics. At this time, the participating cities have indicated that they intend to contract with the SGVCOG for core staffing support. The contract between the SGVRHT and the SGVCOG for core staffing would be considered and executed by the SGVRHT Board of Directors upon its seating.
Next Steps
At this time, twenty-one cities in the San Gabriel Valley have indicated their intent to consider joining the SGVRHT. Currently, the following cities have indicated that the SGVRHT joint powers agreement will also be considered by their city councils in the coming weeks:
February
• South El Monte
• La Verne
• Arcadia
• West Covina
• Baldwin Park
• Alhambra
• Claremont
• Duarte
March
• Covina
• Pomona
• El Monte
• Diamond Bar
April
• Montebello
• Diamond Bar
• San Gabriel
• Monrovia
• Azusa
Affiliates
• Temple City
• La Canada Flintridge
• Irwindale
Currently, $1.35 million in funding has been allocated to the SGVRHT. This seed money will be awarded to projects for the region’s extremely low, very low, and low-income residents and homeless residents in cities that join the SGVRHT. In addition, it is anticipated that the SGVRHT will apply for funding from the State’s Local Housing Trust Fund Grant Program. The SGVRHT would be eligible to apply for between $500,000 and $5 million in funding through this program. The State has indicated that the notice of funding availability (NOFA) for this program is anticipated to be released in spring 2020.
As indicated above, it is anticipated that the SGVCOG Governing Board will hold elections for and appoint members to the SGVRHT Board of Directors in April 2020. The SGVRHT Board of Directors would be seated shortly thereafter. The SGVRHT Board of Directors will initially consider a process for awarding the $1.35 million in funding available to the SGVRHT. Over the first year of its operation, the SGVRHT will also undertake a number of foundational efforts, including the development of a housing pipeline, priorities and a strategic plan, and a long-term funding strategy.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds the following:
Council Priority List - This item applies to the Increase Livability section of the City Council Priority List.
General Plan - This item is consistent with General Plan Goal 8-3: Provide opportunities throughout the City for adequate and affordable housing in a wide range of housing types to meet the needs of all socioeconomic segments of the community.
2019-2020 Budget - This item is consistent with the following work plan goal of the Community Development Department:
CD-3: Facilitate housing opportunities for individuals at all income levels.
Sustainability Plan -This item does not apply to the Sustainability Plan.
Economic Sustainability Plan - This item does not apply to the Economic Sustainability Plan.
Youth and Family Master Plan - This item does not apply to the Youth and Family Master Plan
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a “project” as defined in Section 15378). CEQA Guidelines Section 15378(b)(2) excludes “[c]ontinuing administrative ... activities, such as ... general policy and procedure making,” Section 15378(b)(4) generally excludes “[t]he creation of government funding mechanisms or other government fiscal activities,” and Section 15378(b)(5) generally excludes “[o]rganizational or administrative activities of governments” from the definition of “project.”
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. Copies are available at the City Hall public counter, the Youth Activity Center, the Alexander Hughes Community Center, and the City website.
Submitted by:
Anne K. Turner
Human Services Director
Attachment:
The San Gabriel Valley Regional Housing Trust Joint Exercise of Powers Agreement