CC SR 20220517 01 - SBCCOG Housing Trust
CITY COUNCIL MEETING DATE: 05/17/2022
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration and possible action to support the potential formation of a South Bay
Regional Housing Trust.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file a report on creating a South Bay Regional Housing Trust which
would facilitate the construction of affordable housing in participating cities;
(2) Authorize the Mayor to sign a letter of support for the South Bay Cities Council of
Governments’ (SBCCOG) proposed legislation in concept as well as support a
state budget request to create the South Bay Regional Housing Trust; and,
(3) Provide direction as to whether the City Council is interested, without having to
commit at this time, becoming a charter member of the Housing Trust if it is
created.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: McKenzie Bright, Administrative Analyst
REVIEWED BY: Same as below
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft letter supporting the South Bay Regional Housing Trust legislation
(page A-1)
B. Memo and draft bill language from the SBCCOG (page B-1)
C. SBCCOG presentation slides for Regional Housing Trust (page C-1)
BACKGROUND:
Due to the ongoing housing crisis, jurisdictions such as Orange County, San Mateo
County, and the San Gabriel Valley Council of Governments (SGVCOG) have been
exploring creating regional housing trusts. A regional housing trust is a voluntary multi-
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jurisdictional joint powers authority (JPA) that provides local officials a way to fashion
affordable housing strategies tailored to a community’s unique needs, conditions, and
political culture, with the support of other member-cities. A regional housing trust can be
used to develop new construction, preserve or rehabilitate existing affordable housing,
provide homeless housing services, and more, to provide an opportunity to meet regional
housing need assessment (RHNA) requirements. Furthermore, the trust would have
access to federal and state budget funding and grants (see Attachment C).
The SBCCOG is considering developing a South Bay Regional Housing trust and is
seeking support from its member cities.
DISCUSSION:
The SBCCOG has requested that the City consider supporting its proposed legislation in
concept for the creation of a South Bay Regional Housing Trust along with a state budget
request for funding to assist in the implementation of the future trust (see Attachment B).
After direction from the SBCCOG Board, SBCCOG Staff met with the offices of Senator
Ben Allen and Assemblymember Al Muratsuchi, which both indicated their support for the
concept; their intention to identify legislative avenues that could be pursued to create a
South Bay Regional Housing Trust; and explore funding opportunities in the state budget.
South Bay Regional Housing Trust Overview
The SBCCOG’s proposed language for a bill would authorize any or all of the cities within
the jurisdiction of the SBCCOG to, as a JPA, form the South Bay Regional Housing Trust
with the stated purpose of finding housing to assist the homeless population an d persons
and families of extremely low-, very low-, and low-income within the South Bay. The
proposed bill would authorize the housing trust to collectively fund the planning and
construction of affordable housing, receive public and private financing and funds, and
authorize and issue bonds at a very low interest.
The Housing Trust, as noted in the proposed bill, would be governed by a board of
directors consisting of at least two members that are experts in homeless or housing
policy. The board members shall serve without compensation. However, to administer the
program, the housing trust will have to hire experts in the field of lending. As a reference,
the San Gabriel Valley Council of Government’s housing trust portioned administrative
costs based on the population of participating cities. The City of Arcadia, with a population
of 57,000, had an annual fee of $15,000 for full membership, allowing the city to serve on
the Board and for potential projects within the city’s jurisdiction to be eligible for funding.
The City will have the opportunity to review all associated JPA documents, including
financial responsibility, prior to making a formal commitment on participation in the South
Bay Regional Housing Trust. Should the proposed bill be introduced and passed, Staff
will return once these documents have been received for the City Council to provide
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direction and potentially authorize the City’s participation in the JPA, if it is determined to
be in the best interest of the City.
Establishment of a JPA for the housing trust would allow for dedicated funds to be used
to provide affordable housing throughout the region. The South Bay Regional Housing
Trust would act as a vehicle to fund and finance projects, seek grants and/or funding
sources, and reduce the potential costs of borrowing funds for affordable housing
projects. It would additionally provide an organized forum to evaluate projects throughout
the region.
City’s Support of Affordable Housing on a Regional Level
The City’s 2022 Legislative Platform includes support for regional trust policies within the
Housing and Local Land Use appendix. On April 6, 2021, the City Council supported
Senator Allen’s Senate Bill (SB) 809 which would have allowed cities to enter into
multijurisdictional housing trust agreements, allowing greater flexibility for cities to meet
their regional housing need allocation (RHNA) shares. SB 809 died in the committee
process. The SBCCOG’s proposed legislation would allow South Bay cities to benefit
from a similar structure that was proposed in SB 809.
Due to the City’s support of SB 809 and the City Council’s position to support affordable
housing at a regional level, Staff recommends the City Council authorize the Mayor to
sign a letter, supporting in concept the SBCCOG’s South Bay Regional Housing Trust
and associated budget request from the state legislature.
Consideration of Becoming a Charter Member
The SBCCOG also requests to know if the City would be interested in being a charter
member of the regional housing trust should it be created. While the City is supportive of
activities which increase affordable housing stock and provide homeless services, the
City does not have any projects in development. As such, Staff recommends the City
Council take no action on indicating charter membership status until it is better understood
how the City specifically could participate in the regional housing trust. That said, Staff
will continue to gather more information in this regard specifically as it relates to attracting
developers, supporting appropriate mixed-use development with affordable housing, and
meeting the City’s RHNA allocation.
While the specific costs, responsibilities, and impacts of the JPA are unknown at this time,
in general, participating in a regional housing trust could assist with leveraging funds
and/or finding funding that may not otherwise be available or accessible. Additionally, if
an affordable housing or homelessness project makes sense outside of the City’s
jurisdiction but within the jurisdiction of the JPA, the City’s funds could assist in leveraging
that particular project, ensuring services that benefit the City can be provided.
Furthermore, given that affordable housing and homelessness are regional issues, a
regional funding source is a more appropriate venue than a city -by-city basis.
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Each party within the JPA would maintain the individual power to implement projects and
programs within its jurisdiction – participation would not be contingent on providing any
affordable units or projects, aside from annual dues.
Neither the support letter as drafted nor any statement on the City’s interest in
participating are a formal commitment to the South Bay Regional Housing Trust. Should
the legislation be introduced and approved, the SBCCOG would draft JPA documents,
by-laws, and other administrative documents related to the formation of the housing trust.
After evaluation and due diligence of all documentation, the SBCCOG will request the
final, formal commitment on participation.
ADDITIONAL INFORMATION:
SBCCOG Representation at the May 17 City Council Meeting
SBCCOG Legislative Committee Chair Stacey Armato will be attending the May 17
meeting and will be available to answer any questions.
San Gabriel Valley Regional Housing Trust (SGVRHT)
The San Gabriel Valley Council of Governments (SGVCOG) recently created the San
Gabriel Valley Regional Housing Trust (SGVRHT) consisting of 22 city members –
authorized through SB 751 (Statutes of 2019), along with a $20 million earmark through
the state’s 2021 Budget Act and is likely to receive $100 million for fiscal year 2022-23.
The SBCCOG modeled the South Bay Regional Housing Trust on the SGVRHT –
information on the SGVRHT is available at sgvrht.org.
SBCCOG’s Homeless Services Task Force
The SBCCOG’s Homeless Services Task Force convenes once every two months to
discuss innovative new solutions to combat homelessness, regional updates, and
state/federal updates. City Staff participate in the Task Force.
CONCLUSION:
Given the City’s previous support of regional housing trusts and the City’s continued
support of the SBCCOG’s priorities as a member-city, Staff recommends the City Council
authorize the Mayor to sign a letter supporting, in concept, the SBCCOG’s proposed
South Bay Regional Housing Trust and associated budget request (see Attachment A).
Once the bill is introduced, Staff will return for the City Council to take a formal position
on the bill.
Staff is seeking direction on the City Council’s interest in being a potential charter member
of the South Bay Regional Housing Trust. Staff recommends the City Council provide
direction that Staff return when formal documents have been created and it is better
understood what the City’s responsibilities and benefits would be as a charter member.
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ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available
for the City Council’s consideration:
1. Identify revised language to add to the letter.
2. Do not authorize the Mayor to sign the letter.
3. Take other action, as deemed appropriate.
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May 17, 2022 Via Email
The Honorable Drew Boyles, Board Chair;
The Honorable Stacey Armato, Legislative Committee Chair; and
Members of the Board
South Bay Cities Council of Governments
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
SUBJECT: Support for South Bay Regional Housing Trust Legislation and Budget
Request
Dear Chair Boyles, Legislative Committee Chair Armato and Members of the Board:
On behalf of the City of Rancho Palos Verdes, I offer our support in concept for legislation
requested by the South Bay Cities Council of Governments’ (SBCCOG) Board of
Directors that would create a South Bay Regional Housing Trust. The City is also
supportive of the state budget request for funding to assist in the implementation of the
housing trust.
Residents throughout the state face an unprecedented housing affordability crisis. The
City intends to work with the SBCCOG as it further explores the feasibility of a regional
housing trust that could facilitate the development of affordable housing in participating
South Bay cities and help cities reach their regional housing need s assessment (RHNA)
allocation.
At this time, the City is interested in learning more about being a charter member of the
regional housing trust should it be created before making any commitments. The City
requests that when forming a joint powers authority that the by-laws allow cities to opt-in
and/or opt-out during certain funding cycles.
We look forward to the final bill language as we further explore the possibility of joining
the South Bay Regional Housing Trust should it be created.
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Chair Boyles, Legislative Committee Chair Armanto, and Members of the Board
May 17, 2022
Page 2
Sincerely,
David L. Bradley
Mayor, City of Rancho Palos Verdes
cc: Ben Allen, Senator, 26th State Senate District
Al Muratsuchi, Assemblymember, 66th State Assembly District
Jacki Bacharach, South Bay Cities Council of Governments
David Leger, South Bay Cities Council of Governments
Jeff Kiernan, League of California Cities
Marcel Rodarte, California Contract Cities Association
Sharon Gonsalves, Renne Public Policy Group
Rancho Palos Verdes City Council and City Manager
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L O C A L G O V E R N M E N T S I N A C T I O N
Carson El Segundo Gardena Hawthorne Hermosa Beach Inglewood Lawndale Lomita
Manhattan Beach Palos Verdes Estates Rancho Palos Verdes Redondo Beach Rolling Hills
Rolling Hills Estates Torrance Los Angeles District #15 Los Angeles County
2355 Crenshaw Blvd., #125
Torrance, CA 90501
(310) 371-7222
sbccog@southbaycities.org
www.southbaycities.org
April 28, 2022
To: South Bay Mayors & Council Members
Re: South Bay Regional Housing Trust Legislation update
Dear South Bay Mayor and Council Members:
The SBCCOG Board of Directors held a special meeting on April 11 th to discuss the potential
creation of a South Bay Regional Housing Trust which would provide loans to facilitate the
construction of affordable housing in participating cities. With this letter, we are asking you to
support proposed formation legislation (attached) in concept as well as to support a state
budget request for seed funding. Further, the legislators would like an indication – without
a commitment – of whether your city would be interested in being a charter member of the
regional housing trust should it be created.
The requests for support are a result of the Board’s action at the special meeting, where the
SBCCOG Board approved a motion to move forward in the following ways:
-Support requesting legislation to form a South Bay Regional Housing Trust
-Support requesting seed funding from the state budget
-Direct Board Members to return to their respective city councils to find out if their city
is interested in being a charter member of a regional housing trust should it be created
-Form a subcommittee of the Board to work on bylaws and Joint Powers Authority
(JPA) documents
-Follow-up:
-Cities will submit letters to the SBCCOG as soon as possible informing of their
city’s intention to participate
-Board Member & Hermosa Beach Councilmember Stacey Armato will present to
city councils as requested to answer questions and explain the trust in further detail
Following the Board’s direction, we, along with SBCCOG staff, met with staff from Senator Ben
Allen’s and Assembly Member Al Muratsuchi’s offices to discuss housing trust formation
legislation and a budget request. Both offices indicated their support for the concept; their
intention to identify legislative avenues that could be pursued to create a South Bay Regional
Housing Trust; and explore funding opportunities in the state budget.
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Although legislation has not yet been introduced, we are asking your city to support the proposed
legislation in concept, as well as support seed funding from the state budget. Attached is a draft
of what the legislation might look like when introduced. It was modeled after other housing trust
formation bills which have previously been approved by the Legislature. When legislation has
been introduced and has a bill number, we will ask you for formal support of the bill. At this time,
we are not asking for your commitment to join a regional housing trust, but would like to know if
you think your city will become a charter member of the trust if it is created.
Other subregions in Los Angeles County have already created or are in the process of creating
regional housing trusts and received state earmarks We feel that this is a good time for the South
Bay to take advantage of the support in Sacramento to request funding specifically for cities in our
subregion to begin addressing their affordable housing needs.
Should you have any questions, please feel free to contact SBCCOG Senior Project Manager,
David Leger at DavidL@southbaycities.org or (310) 371-7222. Please email letters of support
to David by May 25th, 2022.
Sincerely,
Drew Boyles
Chair, SBCCOG Board of Directors
Mayor, City of El Segundo
Stacey Armato
SBCCOG Legislative Committee Chair
Council Member, City of Hermosa Beach
Attachment: Draft legislation
CC: City Manager and Community Development Director
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ATTACHMENT
Senate Bill No. XXX
CHAPTER 670
An act to add Section 6539.6 to the Government Code, relating to joint powers.
SB XXX, (Senator). Joint powers authorities: South Bay Regional Housing Trust.
The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers
authority to exercise any power common to the contracting parties, as specified. Exi sting law authorizes the
agreement to set forth the manner by which the joint powers authority will be governed. That act specifically
authorizes the creation of the Orange County Housing Finance Trust, a joint powers authority, for the purposes
of funding housing specifically assisting the homeless population and persons and families of extremely low,
very low, and low income within the County of Orange, as specified.
This bill would similarly authorize the creation of the South Bay Regional Housing Trus t, a joint powers
authority, by the County of Los Angeles and any or all of the cities within the jurisdiction of the South Bay
Cities Council of Governments, with the stated purpose of funding housing to assist the homeless population
and persons and families of extremely low, very low, and low income within the South Bay. The bill would
authorize the South Bay Regional Housing Trust to fund the planning and construction of housing, receive
public and private financing and funds, and authorize and issue bonds. The bill would require that the joint
powers agreement establishing the South Bay Regional Housing Trust incorporate specified annual financial
reporting and auditing requirements.
This bill would make legislative findings and declarations as to the necessity of a special statute for the South
Bay Cities region of Los Angeles County.
_________________________________________________________________________________________
The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares the following:
(a) California has an affordable housing crisis, which is especially acute in the South Bay Cities region of Los
Angeles County due to the high cost of housing in that area, even in formerly affordable communities.
(b) The establishment of the South Bay Regional Housing Trust to receive available public and private funds
could help finance affordable housing projects for homeless and l ow-income populations.
SEC. 2. Section 6539.6 is added to the Government Code, to read:
6539.6. (a) (1) Notwithstanding any other law, the County of Los Angeles and any or all of the cities within
the jurisdiction of the South Bay Cities Council of Governments may enter into a joint powers agreement
pursuant to this chapter to create and operate a joint powers agency to fund housing to assist the homeless
population and persons and families of extremely low, very low, and low income, as defined in Section 50093
of the Health and Safety Code, within the South Bay Cities region.
(2) The joint powers agency created pursuant to this section shall be known as the South Bay Regional
Housing Trust, and shall be created and operate in accordance with this section.
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(b) (1) The South Bay Regional Housing Trust shall be governed by a board of directors , consisting of an
appropriate number of directors to be determined by the governing board of the South Bay Cities Council of
Governments.
(2) (A) The board of directors shall be appointed by the governing board of the South Bay Cities Council of
Governments and shall include Mayors, Council Members, or County of Los Angeles Supervisors that
represent either of the following:
(i) A city that is a party to the joint powers agreement.
(ii) A County of Los Angeles board of supervisor district that is located wholly or partially within the territory
of the South Bay Cities Council of Governments, if the county is a party to the joint powers agreement.
(B)Two members of the board of directors shall be experts in homeless or housing policy.
(3) The board of directors shall elect a chairperson and a vice chairperson from among its members at the first
meeting held in each calendar year.
(4) (A) Members of the board of directors shall serve without compensation.
(B) Members of the board of directors may be reimbursed for actual expenses subject to the approval of the
governing board of the South Bay Regional Sustainable Housing Trust. Actual expenses shall be approved
before they are incurred.
(5) If a vacancy occurs on the board of directors, the governing board of the South Bay Cities Council of
Governments shall appoint a qualified individual to fill the vacancy within 60 days of the vacancy.
(c) Notwithstanding any other law, the South Bay Regional Housing Trust may do any of the following:
(1) Fund the planning and construction of housing of all types and tenures for the homeless population and
persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health
and Safety Code, including, but not limited to, permanent supportive housing.
(2) Receive public and private financing and funds.
(3) Authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds
and financing received pursuant to paragraph (2) and pledged by the South Bay Regional Housing Trust.
(d) The South Bay Regional Housing Trust shall incorporate into its joint powers agreement annual financial
reporting and auditing requirements that shall maximize transparency and public information as t o the receipt
and use of funds by the agency. The annual financial report shall show how the funds have furthered the
purposes of the South Bay Regional Housing Trust.
(e) The South Bay Regional Housing Trust shall comply with the regulatory guidelines o f each specific state
funding source received.
SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot
be made applicable within the meaning of Section 16 of Article IV of the California Constitutio n because of
the unique circumstances, described in Section 1 of this act, in the South Bay Cities region of Los Angeles
County.
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It’s a voluntary multi-jurisdictional joint powers authority (JPA) that provides local officials a way to fashion
affordable housing strategies tailored to the community’s unique needs, conditions, and political culture
Could be used for new construction, preservation/rehabilitation of existing affordable housing, homeless
housing services, and more, to provide an opportunity to meet RHNA requirements
Access federal/state budget funding (earmarks) and grants
No projects would be funded by the trust that have not been approved by the city first
Exploring the Creation of a
South Bay Regional Housing Trust
What is a regional housing trust?
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Examples of other California regional housing
trust JPAs
Orange County
(24 city members)
San Gabriel Valley
(22 city members)
San Mateo County
(20 city members)
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Support State
legislation and
budget request
•Legislation to form the
JPA is being evaluated
•$50M state budget
request to seed the trust
is being considered
•San Gabriel Valley
received $20M in FY21-
22 and is expected to
request $100M in FY22-
23
Provide indication of
initial city interest in
participating (not a
commitment)
Draft JPA documents,
by-laws, and other
administrative
documents
Request final
commitment on
participation from
cities after
evaluation and due
diligence
Implementation Steps
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•Support in concept for legislation to form the JPA
•Support the request for state budget funding
•Indicate whether your city would consider joining a regional housing trust,
understanding there is no commitment to participation at this time
What is Today’s Request?
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Contacts
•SBCCOG Board Member & Hermosa Beach Councilmember Stacey Armato:
sarmato@hermosabeach.gov
•SBCCOG Staff:
•Jacki Bacharach, Executive Director: jacki@southbaycities.org
•David Leger: davidl@southbaycities.org
Questions?
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