STAFF REPORT
Meeting Date: September 22, 2026
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Chloe Chen, Principal Planner
Mandy Jiang, Senior Management Analyst
Subject: Potential Establishment of a Westside Cities Affordable Housing Trust Attachments: 1. Revised Joint Powers Authority (“JPA”) Agreement with redline changes from July 21, 2026, Study Session
2. Proposed Trust Fiscal Year 26-27 Budget
3. July 21, 2026, Study Session Staff Report (as annotated and without attachments)
INTRODUCTION
The Westside Cities Council of Governments (“WSCCOG” or the “COG”) has been studying the feasibility of establishing a new regional housing entity comprised of member cities Beverly Hills, Culver City, Santa Monica, and West Hollywood that would be known as the Westside Cities Affordable Housing Trust (“WSCAHT” or the “Trust”). The primary purpose of the Trust would be to fund (via loans) affordable projects within the Westside Cities utilizing Measure A
1 PPO2 and TA3
funds distributed by the Los Angeles County
Affordable Housing Solutions Agency (“LACAHSA”).
This topic was originally presented on July 21, 2026, when City Council expressed openness to joining the Trust but requested additional analysis and reconsideration of governance structure, administrative cost savings, financial value, geographic equity, and alternatives to Trust formation. Background information is available in the corresponding Staff Report (Attachment 3). Staff is providing additional information as requested by City Council and an update regarding the status of the potential member cities’ adoption. Staff seeks City Council direction on whether to enter into a Joint Powers Authority (“JPA”) agreement (Attachment 1).
1 A ½ cent countywide sales tax dedicated to addressing homelessness through affordable housing, prevention efforts, and renter support approved by Los Angeles County voters in 2024. 2 Production Preservation and Ownership
3 Technical Assistance
Meeting Date: September 22, 2026
DISCUSSION
Status of Trust Formation
In order to form WSCAHT, at least three potential member entities must adopt the JPA.
Table 1 below provides the current status of each City.
Table 1: JPA Adoption Status
City & Status Notes
Beverly Hills
Pending
07/21/26 – Initial Study Session discussion. City Council expressed openness to joining the Trust but requested
additional analysis and reconsideration of governance
structure, administrative cost savings, financial value, geographic equity, and alternatives to Trust formation.
Feedback considered when revising JPA, discussed below. 09/22/26 – Second Study Session discussion.
10/20/26 – JPA adoption, if directed by City Council to proceed.
Culver City
Adopted
09/14/26 – Initial presentation to Culver City Council for adoption. JPA adopted.
Santa Monica
Adopted
07/28/26 – Initial presentation to Santa Monica City Council for adoption. Santa Monica City Council expressed broad support for Trust formation but directed staff to renegotiate the JPA terms to address similar concerns regarding
governance safeguards and administrative cost savings.
Feedback considered when revising JPA, discussed below. 09/8/26 – JPA adopted.
West Hollywood
Pending
09/22/26 – Initial presentation to West Hollywood City
Council for adoption.
Non-Participating City Scenario
If only three of the four potential member cities elect to participate in WSCAHT and one city declines participation, the WSCCOG Board would revisit how to distribute PPO funds to the Trust and the non-participating city simultaneously.
At the August 13, 2026, WSSCOG Board Meeting, WSCCOG staff provided an update regarding the Trust formation status and indicated that WSCCOG staff would recommend an approach based on proportional total Regional Housing Needs Assessment (“RHNA”) allocation, in alignment with the LACAHSA FY 2026-27 Expenditure Plan, with a Call for Developments
4 process for the non-participating city funded by LACHASA PPO and TA resources. If no eligible projects were identified within the non-participating city’s jurisdiction, those funds could be reallocated to the WSCAHT for expenditure in accordance with applicable program requirements and expenditure deadlines. 4 Similar to a Notice of Funding Availability (“NOFA”) process. In 2025, WSCCOG underwent a Call for Developments process involving all four Westside Cities participation and awarded a $877,798 grant to developer WHCHC for the Robertson Sunflower project.
Meeting Date: September 22, 2026
LACAHSA requires the WSCCOG and any subrecipients to identify PPO recipient developments within one year and spend PPO funds within three years of receipt.
Therefore, a nonparticipating city would likely have six months to identify a PPO recipient development and two years to spend PPO funds on that development before the WSCCOG would redistribute funds to the Trust to avoid returning PPO funds to LACAHSA.
Based on Staff’s review of draft funding guidelines for the Trust, Staff anticipates WSCCOG would calculate a Baseline Index, as shown in Table 2 below, for each member city, which is based on each city's lower-income 6th Cycle RHNA allocation for the 2021– 2029 planning period. According to WSCCOG staff, this is consistent with LACAHSA’s methodology for allocating PPO funding to entities that receive direct Measure A funding.
Table 2: Baseline Index
City Lower Income
RHNA Allocation
Percent of Total /
Baseline Index
Beverly Hills 1,688 17.54%
Culver City 1,712 17.79%
Santa Monica 4,466 46.42%
West Hollywood 1,755 18.24%
Total 9,621 100.00%
For example purposes only, if Beverly Hills were the non-participating city, and there were $3 million of PPO funds in a given year, WSCCOG would conduct a separate Call for Developments process for Beverly Hills for a total of $526,2005. If there were no eligible projects during that Call for Developments process, the funds would then be reallocated to WSCAHT. The process described above is subject to final approval by the WSCCOG Board. Conversely, if Beverly Hills were a participating City, a successful project could be awarded substantially more funds through the Trust in a given year.
Geographic Equity Index
During the July 21, 2026, Study Session, City Council expressed a desire for the Trust to ensure there was equity among the four cities regarding how projects were awarded in each jurisdiction. Based on Staff’s review of the Trust’s draft funding guidelines, which would be subject to adoption by the future WSCAHT Board if formed, each Notice of Funding Availability (“NOFA”) to award affordable projects with funds would calculate a Geographic Equity Index for each member city. The Geographic Equity Index would equal the city’s percentage of Trust funding committed over the preceding four years divided by the Baseline Index of the city’s percentage of the Trust’s pro rata lower income housing need as defined by LACAHSA’s annual Expenditure Plan and Agency Strategy. Cities whose share of Trust funding equals their Baseline Index will have a Geographic Equity Index of 1.0. Cities whose share of Trust funding exceeds their Baseline Index will have a Geographic Equity Index above 1.0, and cities whose share of Trust funding is below their Baseline Index will have a Geographic Equity Index below 1.0. Projects in cities with the lowest Geographic Equity Index would be ranked highest when evaluating project applications. This process is subject to final review by the Board, if the Trust is formed. 5 In this example scenario, $3 million of total PPO funding times the Baseline Index for Beverly Hills equals $526,200 ($3,000,000 x 17.54% = $526,200).
Meeting Date: September 22, 2026
Revisions to JPA
Based on feedback received from Beverly Hills City Council during the July 21, 2026, Study Session and Santa Monica City Council during its July 28, 2026, Regular Meeting, the JPA agreement has been revised (Attachment 1). There are three primary modifications:
• Section 5(a)e, regarding the number of Expert Directors6. This modification sets the number of Expert Directors to two (2), which is the minimum required under State law. The JPA agreement originally provided for the number of Expert Directors to be one (1) less than the total number of Elected Official Directors. . • Section 7(c), regarding cost contributions. This modification clarifies that Measure A funds (from LACAHSA) will cover all administrative costs for at least the first twelve months of Trust operation, explicitly requires approval from all Trust member cities’ respective governing bodies for any hypothetical imposition of membership fees, and requires members to share these hypothetical fees equally.
• Section 10(b), regarding withdrawal from WSCHAT. This modification clarifies that Trust members withdrawing immediately before or after a new fiscal year do not need to pay membership fees if those fees do not exist per Section 7(c). described above.
Loans versus Grants
City Council requested additional information on the value of forming a Trust compared to continuing to administer LACAHSA PPO funds as grants through the WSCCOG.
As provided by WSCCOG staff, one advantage of a Trust structure is the ability to deploy funding as loans rather than grants. Affordable housing developers frequently use loans because they can preserve eligibility for Low-Income Housing Tax Credit financing and help maximize project leverage. According to Novogradac, grant funding may impose tax liabilities and other administrative challenges for affordable housing developers, as grants are considered as income, while loans are considered as debt. 7 Further, Legal Information
Institute describes how some grant funding reduces a project’s eligible basis, which is the total costs eligible within the project for generating tax credits.8 Affordable Housing Finance notes that a lower eligible basis reduces the amount of tax credit equity available to a project.9 As a result, some affordable housing developers avoid accepting any form of grant and strongly prefer loan products.
6 An “Expert Director” is a housing and homeless policy expert appointed by a majority vote of the “Elected Official Directors,” which are Councilmembers appointed by their respective City Councils). State law requires at least two directors be Expert Directors. 7 Shelburne, Mark., “Localities’ Interaction with the LIHTC: Being a Funding Source (post 2 of 4).” Novogradac, https://www.novoco.com/notes-from-novogradac/localities-interaction-with-the-lihtc-being-afunding-source-post-2-of-4 8 LII Leg. Inf. Inst., “26 CFR § 1.42-16 - Eligible Basis Reduced by Federal Grants.” https://www.law.cornell.edu/cfr/text/26/1.42-16
9 Mullen, “How to Use HOME Funds in a Tax Credit Deal.” https://www.housingfinance.com/news/howto-use-home-fundsin-a-tax-credit-deal_o Meeting Date: September 22, 2026
Trust Administration
Based on City Council feedback during the July 21, 2026, Study Session, WSCCOG staff examined potential opportunities for administrative cost reductions.
The proposed WSCAHT operating budget reflects a broader administrative platform than the WSCCOG's prior administration of a single LACAHSA PPO grant award from the FY2025-26 WSCCOG Call for Development. While the 2025 Call for Developments process required approximately $70,596 in administration costs to award a $877,798 grant, other portions of the WSCCOG’s LACAHSA TA budget supported design and administration of WSCCOG’s PPO funds throughout FY 2025-26.
Furthermore, the proposed $377,220 FY 2026-27 Trust operating budget (Attachment 2) anticipates awarding $8,241,186 in combined FY25-26 and FY26-27 funds. The FY2026- 27 Trust administration budget would support a wider range of activities than the Call for Developments, including loan underwriting, financial monitoring, and administration of multiple affordable housing programs.
The $65,000 Financial Consultant line item represents a potential cost-reduction opportunity to simplify Trust operations. However, reducing this consultant’s budget could limit the Trust's ability to administer additional loan products outside of new construction residual receipt loans.
Each year, the operating budget would be subject to final review and approval by the WSCAHT Board, if the Trust is formed. Pursuant to the revised JPA, any cost contributions from member cities to WSCAHT would be subject approval by all member cities’ respective governing bodies.
FISCAL IMPACT
There is no direct fiscal impact to entering into the proposed JPA at this time.
The purpose of the JPA is to establish a mechanism by which Measure A funds may be deployed across the Westside. Measure A funds do not directly flow to Beverly Hills or other WSCCOG member cities, but instead to WSCCOG. It is anticipated that affordable housing developers would apply to various financing opportunities announced by the Trust. Should projects in Beverly Hills be awarded funds, the City could indirectly benefit.
For example, funds awarded by the Trust might reduce any potential gap funding the City might have otherwise contributed.
The primary source of the Trust’s revenue would be funds from the 2024 voter-approved Los Angeles County Measure A, which allows up to 12.5% of funds to be allocated to administrative expenses and would fund the Trust’s operating expenses. Pursuant to the revised JPA, any cost contributions from member cities to WSCAHT would be subject to approval by all member cities’ respective governing bodies.
The proposed Fiscal Year 26-27 Trust budget (Attachment 2), shows estimated operating expenses would be paid entirely from 12.5% of Measure A funds allowed for administrative expenses and does not contemplate a fee from the member cities.
Meeting Date: September 22, 2026
RECOMMENDATION
Staff seeks City Council direction on whether to enter into the proposed JPA agreement, as shown in Attachment 1.
Given that WSCCOG has recommended the proposed JPA structure after thorough review and analysis and that the potential Trust would offer a mechanism by which Westside cities can pool and direct Measure A funds, and possibly other funds secured by the Trust, to projects that are proposed in each jurisdiction, Staff recommends City Council adopt the JPA.
If directed to proceed, Staff would bring the final JPA forward for City Council approval at the October 20, 2026, Formal Session on the Consent Agenda along with an update regarding whether West Hollywood adopted the JPA.
Staff and WSCCOG staff will be available to answer questions.
Ryan Gohlich,
City Manager
Approved By
Attachment 1
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JOINT EXERCISE OF POWERS AGREEMENT
of the
WESTSIDE CITIES AFFORDABLE HOUSING TRUST
THIS JOINT EXERCISE OF POWERS AGREEMENT (“Agreement”) is made this ___ day of __________, 2026 (“Effective Date”), by and between the public agencies listed in Exhibit A, attached hereto and incorporated herein by reference (each a “Party” and collectively the “Parties”).
RECITALS
A. The Parties are authorized to and have a strong interest in promoting the health, safety, and welfare of the residents within their geographic boundaries.
B. The Parties acknowledge that the State of California has declared the existence of an affordable housing crisis in communities and regions across the state due to the high cost of housing.
C. The Parties find it in their mutual interest to increase the availability of affordable housing, workforce housing, and supportive housing and to prevent and reduce homelessness in a coordinated manner on a regional level.
D. An adequate supply of housing throughout the Westside subregion of Los Angeles County will provide social and economic benefits to residents and taxpayers of the Parties.
E. California Government Code section 6500 et seq. (the “Joint Exercise of Powers Act”) permits two or more public agencies to create joint powers authorities to exercise powers common to the contracting parties.
F. In 2023, the Legislature amended the Joint Exercise of Powers Act by adding Government Code section 6539.1, which expressly authorizes the creation of regional housing trusts.
G. The Parties desire to create the Westside Cities Affordable Housing Trust (“WSCAHT”) as a regional housing trust pursuant to Government Code section 6539.1 for the purpose of receiving, managing, and deploying funds for the development, preservation, and financing of affordable housing.
H. WSCAHT shall perform governmental functions exclusively for public purposes and shall operate as a public entity separate and apart from the Parties.
I. The Parties intend that WSCAHT shall constitute a governmental entity and an instrumentality of its member public agencies, performing essential governmental functions on behalf of such agencies, and that all funds, assets, and activities of WSCAHT shall be used exclusively for public purposes in furtherance of affordable housing.
NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the Parties agree as follows:
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Section 1. Creation and Purpose.
(a) Creation of WSCAHT. Pursuant to the Joint Exercise of Powers Act, including Government Code sections 6500 et seq. and 6539.1, the Parties hereby create a public entity known as the Westside Cities Affordable Housing Trust (“WSCAHT” or “Trust”).
WSCAHT shall be a public entity that is separate and apart from the Parties of this Agreement and is responsible for the administration of this agreement. (b) Purpose. The purpose of WSCAHT is to receive, manage, and deploy public and private funding to finance the development and preservation of affordable housing for persons and families of extremely low-, very low-, and low-income, as defined in Section 50093 of the California Health and Safety Code.
The Trust may support, finance, or facilitate housing, including but not limited to:
• Permanent supportive housing
• Affordable rental housing
• Affordable ownership housing
• Workforce housing
• Homeless housing solutions
The Trust may accomplish these purposes by engaging in activities including, but not limited to, the following (with further detail provided under Section 3(b)):
• making loans
• providing grants
• issuing bonds or other debt instruments
• entering into public-private partnerships
• preserving existing affordability restrictions.
WSCAHT is intended to operate as a governmental instrumentality of its member agencies, exercising essential governmental functions on their behalf. All activities, funds, and operations of WSCAHT shall be carried out exclusively for public purposes, and no activities shall be conducted for the benefit of any private individual or entity except as incidental to the accomplishment of such public purposes.
Section 2. Term and Termination
(a) Term. This Agreement shall become effective upon approval by the governing bodies of at least three eligible Parties.
The Agreement shall remain in full force until terminated as provided herein. 3 | P a g e
(b) Termination. This Agreement may be terminated by agreement of a majority vote of the Parties. Upon termination of this Agreement, WSCAHT shall be dissolved and, after payment of or provision for payment of all liabilities of WSCAHT, the assets of WSCAHT shall be distributed to the Parties in proportion to the contributions of each Party to WSCAHT and the amounts paid by each Party in connection with WSCAHT’s activities.
Section 3. Powers and Duties of WSCAHT.
(a) General Powers. WSCAHT shall have all the powers common to the Parties to this Agreement which are necessary, convenient, specified, or implied, to accomplish the purpose of WSCAHT as set forth in Section 1 hereof, subject to the restrictions set forth in Section 3, subdivision (c) hereof. Said powers shall be exercised in the manner provided in the Joint Exercise of Powers Act, including without limitation as set forth in Government Code section 6539.1, and, except as expressly set forth herein, shall be subject only to such restrictions upon the manner of exercising such powers as are imposed upon the City of Santa Monica, a charter law city, in the exercise of similar powers provided however, that if the City of Santa Monica shall cease to be a member, then the WSCAHT shall be restricted in the exercise of its power in the same manner as the City of Culver City, a charter law city.
(b) Specific Powers. Without limiting the generality of the powers conferred in subdivision (a) of this Section 3, WSCAHT is hereby authorized, in its own name, to do all of the acts necessary or convenient to the accomplishment of the purposes of this Agreement and the full exercise of the powers conferred in subdivision (a) of this Section 3, including but not limited to the following:
1. to make and enter into contracts;
2. to hire employees or contract for staff assistance, including but not limited to contracting with other public agencies;
3. to sue and be sued in its own name;
4. to apply for, accept, and receive grants, loans, and other aids from any agency of the United States of America, the State of California, Los Angeles County, a Party to this Agreement, or any other agency providing funding related to the purposes of this Agreement;
5. to originate, fund, administer, and hold loans, lines of credit, or other financing instruments for the planning, development, preservation, or rehabilitation of affordable housing, including loans that may be secured or unsecured, and including loans secured by deeds of trust, affordability covenants, ground leases, or other security interests in real or personal property.
6. to invest any money in the treasury pursuant to Section 6505.5 of the Joint Exercise of Powers Act that is not required for the immediate necessities of WSCAHT, as 4 | P a g e
WSCAHT determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code;
7. to apply for letters of credit or other forms of financial guarantees in order to enter into agreements in connection therewith;
8. to incur and discharge debts, liabilities, and obligations, subject to the limitations set forth in this Agreement and to the extent permitted by law;
9. to assume ownership of and assume enforcement obligations and authority for affordability covenants governing a property from another entity in order to preserve the units as affordable;
10. to engage the services of private consultants to render professional and technical assistance and advice in carrying out the purposes of this Agreement;
11. to employ and compensate legal counsel determined appropriate by WSCAHT in carrying out the purposes of this Agreement;
12. to contract for engineering, construction, architectural, accounting, environmental, land use, or other services determined necessary or convenient by WSCAHT in connection with the accomplishment of the purposes of this Agreement;
13. for the purposes of enforcing affordable housing covenants or holding security interests for loans, to take title to, and transfer, sell by installment sale or otherwise, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which WSCAHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;
14. for the purposes of renting space for WSCAHT to operate, to lease to, and to lease from, a Party or any other person or entity, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which WSCAHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;
15. to solicit, accept, receive, administer, and expend donations, charitable contributions, gifts, endowments, or other voluntary financial support from public or private sources, including, without limitation, foundations, nonprofit organizations, corporations, and individuals, provided that all such funds are used exclusively for public purposes consistent with the mission of WSCAHT.
WSCAHT may accept restricted or project-specific donations, provided that:
(a) such restrictions are consistent with WSCAHT’s public purposes; (b) WSCAHT retains full and independent discretion over the ultimate use and allocation of such funds;
(c) no donation shall be accepted that would result in impermissible private benefit or private control over WSCAHT’s decisions; and
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(d) all funding decisions shall remain subject to approval by the Board of Directors in accordance with applicable law, including the Ralph M. Brown Act.
16. to acquire, hold, or dispose of property, contributions and donations of property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities;
17. to partner with Parties on funding solicitations and other opportunities for the purposes set forth in this Agreement, including but not limited to jointly exercising powers with a Party pursuant to the Joint Exercise of Powers Act;
18. to authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by the WSCAHT.
19. to propose amendments to this Agreement;
20. to the extent not herein specifically provided for, to exercise any and all other powers as may be provided for WSCAHT in the Joint Exercise of Powers Act or any other applicable law; and
21. to carry out and enforce all the provisions of this Agreement. (c) Limitation on Powers. This Agreement does not authorize WSCAHT to do any of the following:
1. Regulate land use within the jurisdiction of any of the Parties;
2. Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation, or tax assessment, as a condition of approving the funding for or approval of a development project;
3. Require or incentivize inclusionary zoning requirements;
4. Require the Parties to dedicate or assign funding for any WSCAHT obligations or programs;
5. Fund a housing project or program that is not supported by the city or jurisdiction where the project will be sited. Prior to Trust funding consideration, the applicable city or jurisdiction shall have provided preliminary written support from the City Manager, Community Development Director, or equivalent authorized official acknowledging that the applicant may pursue Trust funding for the proposed project.
Such acknowledgment shall not constitute any land use, entitlement, environmental, or other project approval or any pre-commitment from that city or jurisdiction to approve or fund the project. ;
6. Require the Parties to accept or provide any number of housing units as a prerequisite to joining or remaining a member of WSCAHT; and
7. Affect the individual power of each Party separately to implement affordable housing projects and programs generated within its jurisdictional boundaries.
Section 4. Members
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The members of WSCAHT shall be the Parties to this Agreement, and such other public agencies as may join WSCAHT after execution of this Agreement. New members may join on the terms and conditions set forth in Section 10 hereof. Only the City of Los Angeles, County of Los Angeles, and cities within the jurisdiction of the Westside Cities Council of Governments may be a party to this Agreement and a member of WSCAHT.
Section 5. Board of Directors
(a) Selection of Directors. WSCAHT shall be governed by a Board of Directors selected as follows:
a. The WSCAHT shall be governed by a Board of Directors constituted in accordance with applicable provisions of California law governing regional housing trusts, including Government Code 6539.1.
b. The Board of Directors shall consist of not fewer than five (5) members. The governance and control of WSCAHT shall at all times be vested in public officials or individuals appointed by public agencies in accordance with this Agreement, and no private entity shall have the authority to direct or control the actions or decisions of WSCAHT.
c. The Board of Directors shall consist of one (1) elected official appointed by each Member Agency that is a party to this Agreement. The Board shall at all times consist of not fewer than three (3) directors that are elected officials appointed by the Member Agencies, consistent with the minimum number of Member Agencies required for this Agreement to become effective pursuant to Section 2(a). The governance and control of WSCAHT shall at all times be vested in public officials or individuals appointed by public agencies in accordance with this Agreement, and no private entity shall have the authority to direct or control the actions or decisions of WSCAHT. Each Member Agency shall also appoint one of its elected officials as an Alternate Director, who may serve in the absence of the Party’s appointed Director.
d. All directors appointed directly by a Member Agency pursuant to subsection (c) shall be elected officials of a local agency that is a party to this Agreement. Each Member Agency shall determine its own method of appointment, replacement, and removal of its director.
e. In addition to the directors appointed pursuant to subsection (c), the Board shall include individuals with expertise in homeless or housing policy who are not elected officials of a local agency. The number of these appointed expert directors shall be one (1) less than the total number of elected official directors serving on the Board, but in no event fewer than two (2). These expert directors shall be appointed by a majority vote of the elected official directors serving on the Board. f. Any additional directors shall meet the eligibility requirements described above, provided that a majority of the Board of Directors shall remain elected officials from the member agencies.
g. Each Director shall have one (1) vote on matters before the Board. 7 | P a g e
h. All Directors must represent a city or county that is a party to the Joint Powers Agreement, unless serving as a housing or homelessness policy expert appointed pursuant to this section.
(b) Board Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of WSCAHT shall be vested in and exercised by, and its property and its affairs administered by, the Board of Directors. (c) Advisory Bodies. The Board of Directors may appoint advisory bodies that may include such persons as are designated by the Board of Directors. The Board of Directors shall adopt bylaws that govern the appointment of advisory bodies, should it determine in its discretion to appoint such advisory bodies.
(d) Compensation. Members of the Board shall serve without compensation but shall be entitled to reimbursement for any expenses actually incurred in connection with serving as Director; provided such expenses have been approved by the Board of Directors before they are incurred, and incurred in accordance with any WSCAHT policies or procedures governing the same.
(e) Term. The Parties shall appoint the Directors for the WSCAHT Board of Directors no later than the Effective Date, or at such other time as the Board may determine. Any appointment made prior to the Effective Date shall become effective upon the Effective Date of this Agreement. Each Director shall serve at the pleasure of the appointing Party and may be removed or replaced at any time by that Party. Directors who are elected officials may not continue serving as Directors after ceasing to hold the elected office that qualified them for appointment.
In the event of a vacancy on the Board of Directors, the Party holding the appointment for that Director seat shall select a replacement Director within sixty (60) days of the vacancy. The Board of Directors shall thereafter ratify the appointment of the replacement Director, who shall serve the remainder of the applicable term, if any, unless otherwise determined by the appointing Party.
Each Party shall determine its own procedures for appointment, reappointment, replacement, and removal of its Director consistent with Government Code Section 6539.1 and this Agreement.
(f) Meetings of the Board of Directors.
1. Call, Notice and Conduct of Meetings. All meetings of the Board of Directors, including, without limitation, regular, adjourned regular, special meetings, and adjourned special meetings, shall be called, noticed, held, and conducted in accordance with the provisions of the Ralph M. Brown Act, Government Code sections 54950 et seq.
2. Regular Meetings. Regular meetings of the Board of Directors shall be held at such dates and times as the Board may fix by resolution from time to time. If any day so 8 | P a g e
fixed for a regular meeting shall fall upon a legal holiday, then such regular meeting shall be held on the next succeeding business day at the same hour, unless otherwise determined by the Board. No notice of any regular meeting of the Board of Directors need be given to the individual Directors.
3. Special Meetings. Special meetings of the Board of Directors shall be held whenever called by the Chairperson of the Board or by a majority of the Directors. Notice of special meetings shall be provided to all Parties.
4. Quorum. A majority of the Board of Directors shall constitute a quorum at any meeting of the Board, except that less than a quorum may adjourn a meeting to another time and place. Unless otherwise provided in this Agreement or required by applicable law, actions and decisions of the Board of Directors may be taken by a majority of the quorum present at any meeting.
5. Minutes. The Board of Directors shall cause minutes of all regular, adjourned regular, and special meetings to be kept and presented to the Board for approval at a subsequent meeting.
6. Officers. The Board of Directors shall elect a Chairperson and a Vice Chairperson from among its Directors at the first meeting held in each calendar year. In the event that the Chairperson or Vice Chairperson so elected ceases to be a Director, the resulting vacancy shall be filled at the next regular meeting of the Board of Directors held after such vacancy occurs or at a special meeting called for that purpose. In the absence or inability of the Chairperson to act, the Vice Chairperson shall act as Chairperson. The Chairperson, or in the Chairperson’s absence, the Vice Chairperson, shall preside at and conduct all Board of Directors’ meetings.
7. Rules and Regulations. The Board of Directors may adopt, from time to time, by resolution, such rules, regulations, and bylaws for the conduct of its meetings and affairs as the Board determines are necessary or convenient.
Section 6. Staff and Treasurer
(a) Staff
1. WSCAHT may contract with a Party or the WSCCOG for staff services pursuant to Section 6(d), hire its own employees, or retain independent contractors, agents, or volunteers as the Board of Directors may deem necessary to carry out any of WSCAHT’s powers, upon such terms and conditions as the Board may require, including without limitation the retaining of professional and technical assistance, provided that adequate funds are available in WSCAHT’s budget and are appropriated by WSCAHT therefor.
2. None of the officers, agents, or staff, if any, directly contracted by WSCAHT shall be deemed, by reason of their roles or duties or contracted status, to be employed by the Parties.
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(b) Treasurer and Auditor/Controller. Pursuant to Government Code Sections 6505.5 and 6505.6, the Board of Directors shall appoint either one person to serve in both capacities, or separate persons, to serve as Treasurer and Auditor/Controller of WSCAHT. Such appointee or appointees may be officers or employees of WSCAHT, officers or employees of a Party, or certified public accountants, as authorized by the Government Code.
This provision is intended to be consistent with and implement the requirements of Government Code Sections 6505, 6505.1, 6505.5, and 6505.6, including any subsequent amendments thereto. The Treasurer and Auditor/Controller shall perform the duties required by applicable law, including maintaining strict accountability over WSCAHT funds and reporting all receipts and disbursements.
The Treasurer and Auditor/Controller shall file any bond required by the Board of Directors in the amount established by the Board. Any premiums attributable to such bond shall constitute an expense of WSCAHT.
(c) Attorney. The Board of Directors shall have the power to appoint one or more legal advisors to WSCAHT who shall perform such duties as may be prescribed by the Board. (d) Administrative Services and Reimbursement of Costs.
1. The Board of Directors may contract with a Party to provide necessary administrative services to WSCAHT, including the services described in Section 6(a), (b) and (c). The amount charged by the Party to provide such services to WSCAHT shall be fixed by agreement between the Board of Directors and the governing body of the Party providing such services. In the absence of an agreement on costs, the Party providing services to WSCAHT under this Section 6 may charge WSCAHT the amounts necessary to recover all direct and indirect costs of such services.
2. If WSCAHT contracts with a Party to provide WSCAHT with administrative services through persons who are employees and officers of the Party, then any retirement liabilities associated with that Party’s employees and officers shall not constitute a liability of WSCAHT or any other Party. This Section 6(d)(2) shall not preclude a Party providing administrative services to WSCAHT pursuant to a contract with WSCAHT from accounting for such salary and benefit costs when negotiating the rates that the Party will charge WSCAHT for providing such services.
Section 7. Financial Provisions
(a) Fiscal Year. The Fiscal Year of WSCAHT shall, unless and until changed by the Board of Directors, commence on the 1st day of July of each year and shall end on the 30th day of June of the succeeding year except that the initial Fiscal Year of WSCAHT shall commence on the Effective Date and end on the immediately following 30th day of June. (b) Budget.
1. General Budget. Within one hundred and twenty days (120) after the first meeting of the Board of Directors, a general budget for the first fiscal year shall be adopted by the vote 10 | P a g e
of a majority of the total membership of the Board of Directors. Notwithstanding the foregoing, and in order to align with the fiscal year schedule described in 7(a), the initial budget period may cover less than a full fiscal year or may be combined with the subsequent fiscal year, at the discretion of the Board. The budget shall distinguish between administrative costs (i.e., the cost of operating WSCAHT) and Program costs (i.e., the financing of the programs funded or sponsored by WSCAHT). Thereafter, at or prior to the last meeting of the Board of Directors for each fiscal year, a general budget shall be adopted for the ensuing fiscal year or years by a vote of at least a majority of the total membership of the Board.
2. Expenditures for the Approved Budget. The payment of all WSCAHT obligations is limited to the amount of appropriations allowed in WSCAHT’s approved budget, except as it may be revised with the approval of a majority of the total membership of the Board of Directors.
3. Program Cost Contribution. The particular programs and program budgets funded, sponsored, or operated by WSCAHT, including the level and mechanisms of funding and cost allocation for such programs, shall be determined and approved by the Board of Directors.
2. (c) Contributions by the Parties.
1. Administrative Cost Contributions. In consideration of the mutual promises contained herein, the Parties agree to make annual contributions (each a “Fee” and collectively, the “Fees”) toward the budgeted administrative costs of WSCAHT as set forth in a duly adopted resolution of the Board of Directors.
1. Initial Funding Period. Notwithstanding the foregoing, fFor the first twelve (12) months following the formation of WSCAHT, all administrative costs shall be funded entirely from Measure A funds, to the extent such funds are available and eligible for such use, as determined by the Board of Directors.
The Parties may adopt an annual contribution requirement (each a “Fee” and collectively, the “Fees”) toward the budgeted administrative costs of WSCAHT should Measure A or other non-Party funds not be available and eligible for such use. WSCAHT shall not require Fees without approval by the governing body of each of the Parties.
Ongoing Cost Allocation. Thereafter, to the extent the Board of Directors determines that additional funding is necessary to support the administrative operation of the WSCAHT, the Parties shall share the administrative costs of WSCAHT remaining after accounting for all eligible administrative revenue, including but not limited to grants and other external funding sources available to WSCAHT. Such remaining costs shall be allocated among the Parties pursuant to a formula under which each Party bears an equal share of Formatted: Underline
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such costs. The governing body of each of the parties must approve the cost allocation for it to go into effect.approved by the Board of Directors.
Annual Assessment. Fees and assessments, if any, shall be determined and assessed on an annual basis. The Board of Directors shall establish the amount and allocation of such Fees each fiscal year as it deems financially prudent and consistent with the adopted budget. WSCAHT shall provide member agencies with reasonable advance notice of any proposed Fees or assessments in order to allow sufficient time for consideration and incorporation into each member agency’s budget process. The Board of Directors may establish additional policies and procedures regarding the timing, calculation, adoption, and payment of Fees and assessments.
Payment Terms. Payment of the Fees shall be due within thirty (30) days of receipt of an invoice from WSCAHT. Each invoice shall indicate the basis upon which the Fees were calculated.
2. Form of Contribution. A Party’s contribution shall be in the form of money unless the Board of Directors approves another form of contribution, including services, personal property, use of real or personal property, or other in-kind contributions. The acceptance and valuation of any non-monetary contribution, and the extent to which it offsets a Party’s Fee obligation, shall be determined in the sole and absolute discretion of the Board of Directors.
3. Program Cost Contribution. The particular programs and program budget, funded, sponsored, or operated by WSCAHT, as well as the level of and mechanisms for the involvement of WSCAHT and each Party, in such programs and program budget, shall be determined and approved by the Board of Directors. (d) Accounts and Reports.
1. Books and Records. There shall be strict accountability of all WSCAHT funds and accounts, and a report of all WSCAHT receipts and disbursements. Without limiting the generality of the foregoing, WSCAHT shall establish and maintain such funds and accounts as may be required by good government accounting practice. The books and records of WSCAHT shall be open to inspection at all reasonable times by each Party and its duly authorized representatives.
2. Annual Audit. The person appointed by the Board of Directors to perform the auditor function for WSCAHT shall cause an annual independent audit of the accounts and records of WSCAHT and records to be made by a certified public accountant or firm of certified public accountants in accordance with Government Code section 6505. Such audits shall be delivered to each Party and shall be made available to the public. Any material audit findings or significant accounting deficiencies identified through the annual audit shall be presented to the Board of Directors and addressed in accordance 12 | P a g e
with applicable law and generally accepted public agency financial and auditing practices.
3. Annual Financial Report. Pursuant to section 6539.9(d) of the Government Code, WSCAHT shall publish an Annual Financial Report that shall describe the funds received by WSCAHT and the use of such funds by WSCAHT. The Annual Financial Report shall describe how the funds received by WSCAHT have furthered the purposes of WSCAHT.
(e) Funds. Subject to the applicable provisions of any instrument or agreement which WSCAHT may enter into, which may provide for a trustee or other fiscal agent to receive, have custody of and disburse WSCAHT funds, the person appointed by the Board of Directors to perform the Treasurer function for WSCAHT shall receive, have the custody of and disburse WSCAHT funds in accordance with generally accepted accounting principles, shall make the disbursements required by this Agreement in order to carry out any of the provisions or purposes of this Agreement.
Section 8. Amendments.
(a) This Agreement may be amended or modified with the approval of a majority of all the Parties through formal action approving such an amendment by the Parties’ respective governing bodies.
(b) No addition to, or alteration of, the terms of this Agreement, whether by written or oral understanding of the Parties, their officers, employees, or agents, shall be valid or effective unless made in the form of a written amendment which is formally adopted and executed by the Parties as provided in subparagraph (a) of this Section.
Section 9. Non-Liability for Obligations of WSCAHT.
(a) The debts, liabilities, and obligations of WSCAHT shall not be considered the debts, liabilities, and obligations of any of the Parties or their respective officers, employees, agents, or volunteers, or the personal debts, liabilities, and obligations or the Directors, officers or employees of WSCAHT.
1. Indemnification. The WSCAHT shall defend, indemnify and hold harmless each Party, and its respective officers, elected officials, agents, employees, representatives and volunteers (the “Indemnitees”) from and against any loss, injury, claim, lawsuit, liability, expense, or damages of any kind or nature (collectively, “Claims”) brought by a third party which arises out of or in connection with WSCAHT’s administration of or performance under this Agreement, including such third party claims arising out of or in connection with any Indemnitees acting within their authorized capacity as an officer, elected official, agent, employee, representative or volunteer of WSCAHT. The WSCAHT’s duty to defend and indemnify under this Section shall not extend to Claims otherwise arising out of the Indemnitees’ own gross negligence, or willful misconduct, whether in whole or in part. The WSCAHT shall maintain adequate liability protection, as determined by the Board of Directors through one or more of the following: (i) a liability reserve fund, (ii) purchasing commercial insurance, or (iii) by joining a joint 13 | P a g e
powers insurance authority (JPIA). In the event the WSCAHT’s financial obligations to indemnify, defend and hold harmless, pursuant to this Subsection, exceed the liability reserve fund and/or the proceeds from any applicable insurance and/or JPIA coverage maintained by the WSCAHT (hereinafter “Unfunded Liability”), a Party or Parties may meet and confer with WSCAHT in good faith to negotiate alternative means or mechanisms by which WSCAHT may fund such Unfunded Liability; however, in no event shall the event of an Unfunded Liability relieve, limit or waive WSCAHT’s obligations of indemnity or defense to each Party as first set forth above in this Section.
Nothing herein shall obligate any Party to indemnify or hold harmless WSCAHT for any Unfunded Liability.
2. Assignment. Each Party shall assign to the WSCAHT its rights, title, and interest to recover damages from any third party for Claims arising out of this Agreement, to the extent that the WSCAHT has met its obligations to defend and indemnify such Party pursuant to this Section.
3. Survival. WSCAHT’s duty to defend, indemnify, and hold harmless shall survive and continue in full force and effect after withdrawal of any Party from this Agreement, including as to the withdrawing Party, or termination of this Agreement for any reason with respect to any Claims that occurred before the date of such withdrawal or termination.
Section 10. Admission and Withdrawal of Parties.
(a) Admission of New Parties. An eligible public agency may become a Party to the Trust upon approval by its governing body and adoption of the JPA.
If an eligible public agency joins more than one (1) year after the Effective Date, it shall be required to pay a late joining fee. The late joining fee shall be equal to the total amount of annual administrative contributions the entity would have paid had it been a Party since the Effective Date, in alignment with Section 7(c); provided, however, that such fee shall not exceed four (4) years' worth of cumulative administrative cost contributions.
For a period of twelve (12) months following admission of a late joining public agency, the Board of Directors may prioritize projects, programs, or funding allocations located within or benefiting existing Parties over projects, programs, or funding allocations located within or benefiting the late joining public agency. After such twelve (12) month period, the late joining public agency shall be eligible for participation in WSCAHT programs and funding opportunities on the same basis as all other Parties.
Payment shall be due within 30 days of receipt of an invoice from WSCAHT. (b) Withdrawal from WSCAHT. A Party may withdraw from WSCAHT at any time upon its governing body’s adoption of a resolution stating the Party’s intent to withdraw from WSCAHT and written notice of withdrawal accompanied by an executed copy of the 14 | P a g e
resolution of intent to the WSCAHT. The withdrawal of any Party, unless otherwise provided by the Board of Directors, shall be subject to the following prerequisites and conditions:
1. The withdrawal shall be effective immediately upon receipt by the WSCAHT of the written notice of withdrawal, subject to subsection (2) below.
2. If the withdrawal notice is received by the WSCAHT less than ninety (90) days before the start of a fiscal year or after the commencement of a fiscal year but before payment of that year’s Section 7(c) Fee, if any, the withdrawal shall not be effective unless and until the withdrawing Party has fully paid that fiscal year’s contribution; otherwise, the notice of withdrawal shall be null and void.
3. Unless otherwise provided by a unanimous vote of the Board of Directors, withdrawal shall result in the forfeiture of that Party’s rights and claims relating to distribution of property and funds upon termination of WSCAHT as set forth in Section 2 above.
Withdrawn members shall not be entitled to any reimbursement of Fees.
4. Withdrawal of a Party will not relieve that Party of prior financial obligations of liabilities unless otherwise approved by the Board.
Section 11. Notices.
(a) Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the persons and entities listed at the addresses set forth in Exhibit A, or to such other address as may be designated in writing to WSCAHT for formal notice.
Section 12. Miscellaneous.
(a) Section Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing or in any manner affecting the scope, meaning or intent of the provisions or language of this Agreement. (b) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one and the same Agreement.
(c) Laws Governing. This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California.
(d) Severability. Should any part, term, portion or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual it shall be deemed severable, and the reminder of this Agreement or the application thereof to other persons or circumstances shall continue to constitute the Agreement the Parties intended to enter into in the first instance.
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(e) Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Parties. No Party may assign any right or obligation hereunder without the written consent of a majority of the other Parties.
IN WITNESS THEREOF, the Parties hereto have caused this Agreement to be executed and attested by their duly authorized officers as follows:
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(NAME OF CITY)
______________________________
BY: (NAME/TITLE OF CITY OFFICER)
Dated: ___________________________
ATTEST:
___________________________________________
(NAME) City Clerk Date
APPROVED AS TO FORM:
By: __________________________________________
(NAME) City Attorney Date
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EXHIBIT A
Parties to this Agreement and their Addresses for notice pursuant to Section 11 are as follows:
Attachment 2
FY 2025-26
Actual
FY 2026-27
Proposed
Amount
Change
%
Change
BEGINNING NET ASSETS AS OF JULY 1 - 3,667,435
REVENUES
Operating Revenues
LACAHSA PPO New Construction - Program Administration - 264,992 2 LACAHSA PPO Flexible - Program Administration - -
LACAHSA Technical Assistance - 205,500 3
Subtotal Operating Revenues - 470,492
Capital Revenues
LACAHSA PPO New Construction 3,511,192 3,268,231 (242,961) -7% LACAHSA PPO Flexible 1,034,041 1,040,528 6,487 1%
Subtotal Capital Revenues 4,545,233 4,308,759
TOTAL REVENUES 4,545,233 4,779,251
TOTAL ASSETS AS OF JULY 1 4,545,233 8,446,686
EXPENDITURES
Operating Expenses
Contract Services
Contract for Trust Manager Services - 168,000 4
Legal Counsel - 50,000 5
Accounting/Auditor-Controller/Treasurer - 50,000
Financial Consultant - 65,000
Administrative
Travel, Conferences, and Trainings - 5,000 6
Printing and Postage - 720 7
Website and Virtual Meeting Services - 1,500 7
Audit Services - 20,000 6
Bank Fees - 1,000 6
Fidelity Bond for Treasurer and Trust Manager - 10,000 6 SDRMA General Liability, Auto, Public Official E&O - 4,000 6 CA Special District Assoc (required by SDRMA) - 2,000 6 Subtotal Operating Expenses - 377,220
Capital Expenses
LACAHSA PPO New Construction 877,798 1 5,901,625 8
LACAHSA PPO Flexible - 2,074,569 8
Subtotal Capital Expenses 877,798 7,976,194
TOTAL EXPENDITURES 877,798 8,353,414
Net Operating Revenue 93,272
CHANGE TO FUND BALANCE 3,667,435 (3,574,163)
ENDING ASSETS AS OF JUNE 30 3,667,435 93,272
Required 15% Contingency Reserve of Operating Revenues - 70,574 Net Assets in Excess of Reserve Requirement 3,667,435 22,698 1 2
3 4 Trust Manager is Cecilia V. Estolano (Estolano Advisors). 5 6
7 WESTSIDE CITIES AFFORDABLE HOUSING TRUST - PROPOSED ANNUAL BUDGET FISCAL YEAR 2026-2027
Based on WSCCOG FY 2025-26 budget
Assumes expenditure of all remaining FY 2025-26 and FY 2026-27 capital revenues .
Grant committed to Robertson Sunflower development in Beverly Hills via 2025 WSCCOG Call for Developments and LACAHSA NOFA #1.
Legal Counsel is Lauren Langer (Best Best & Krieger).
58% of FY 2026-27 LACAHSA TA allocation, with remaining 42% allocated to WSCCOG.
Harris and Associates recommendation.
5% of FY 2026-27 LACAHSA PPO allocation, with remaining 95% allocated to capital revenues.
Item 3D – Attachment A
WSCCOG June 2026 Agenda - Page 33 of 127
8 Attachment 3
STAFF REPORT
Meeting Date: July 21, 2026
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Chloe Chen, Principal Planner
Mandy Jiang, Senior Management Analyst
Subject: Potential Establishment of a Westside Cities Affordable Housing Trust Attachments: 1. Draft Joint Powers Authority (“JPA”) Agreement
2. Proposed Trust Fiscal Year 26-27 Budget
3. Proposed Trust Strategic Plan
INTRODUCTION
The Westside Cities Council of Governments (“WSCCOG” or the “COG”) has been studying the feasibility of establishing a new regional housing entity comprised of member cities Beverly Hills, Culver City, Santa Monica, and West Hollywood that would be known as the Westside Cities Affordable Housing Trust (“WSCAHT” or the “Trust”).
Key Information
• The Trust would operate independently from WSCCOG and would be governed by a separate Board of Directors. If the four Westside cities join, there would be seven Directors: four would be an elected official appointed by each of the four cities (each an “Elected Official Director”) and three would be housing and homeless policy experts appointed by a majority vote of the Elected Official Directors (each an “Expert Director”).
• The primary source of the Trust’s revenue would be funds from the 2024 voterapproved Los Angeles County Measure A, which allows up to 5% of funds to be allocated to administrative costs and would fund the Trust’s operating expenses.
The Trust could require member cities to pay fees for certain administrative costs for the Trust. The proposed Fiscal Year 26-27 Trust budget shows estimated operating expenses would be paid entirely from 5% of Measure A funds allowed for administrative expenses and does not include a fee from the member cities. • Subject to direction from the Trust Board, if established, it is anticipated the Trust would distribute Measure A funds to potential projects in each of the four cities through competitive processes issuing loans.
Meeting Date: July 21, 2026
• Membership in the Trust would not obligate the City to approve any housing development, contribute funding to any housing project, waive local land use authority, or assume liability for the Trust's obligations.
Staff seeks City Council direction on whether to enter into a Joint Powers Authority (“JPA”) agreement, as shown in Attachment 1. If directed to proceed, Staff would bring the final JPA forward for City Council approval at an August or September Formal Session on the Consent Agenda. Staff, WSCCOG staff, and the WSCCOG’s consultant assisting with establishment of the Trust, Harris & Associates, will be available to answer questions.
DISCUSSION
Westside Cities Council of Governments (“WSCCOG” or the “COG”) Background WSCCOG is a multi-jurisdictional governing body that is comprised of the four Westside cities (Beverly Hills, Culver City, Santa Monica, and West Hollywood) along with the City of Los Angeles and County of Los Angeles representing their respective Westside areas.
The COG has worked toward establishing a regional housing trust since 2022 utilizing funds from the Southern California Association of Governments (“SCAG”) Regional Early Action Planning (“REAP”) 1.0 program to evaluate whether to form the Trust. The recommendation resulting from that study, which was completed in 2023, was to form a trust to serve as a regional, Westside-cities-focused tool that can effectively pool resources across its member cities and facilitate housing production. Utilizing SCAG REAP 2.0 funding, the COG is currently working to form the Trust and has engaged consultant Harris & Associates to assist in these efforts.
On June 11, 2026, the COG Board voted to endorse the formation of the Trust and directed that the draft JPA agreement be presented to each Westside city for consideration.
Rationale to Form the Trust
Formation of the Trust would create a tool for the Westside cities to maximize their collective impact in producing new affordable units while maintaining compliance with LACAHSA’s requirements and timelines associated with Measure A funds. While WSCCOG already coordinates regional housing initiatives and funding programs, it does not function as a comprehensive housing financing entity.
For example, the COG cannot directly issue loans to affordable housing developments, instead relying on grants such as the $877,798 awarded to developer WHCHC’s Robertson Sunflower development in Beverly Hills through the 2025 WSCCOG Call for Developments. Issuing future housing development awards as loans, rather than grants, would reduce administrative burden on affordable housing developers while also over the long-term eventually replenishing the Trust’s funds. The Trust would have authority to originate, fund, administer, and hold loans, lines of credit, or other financing instruments for the planning, development, preservation, or rehabilitation of affordable housing.
The Trust would provide a dedicated regional mechanism to accelerate affordable housing production and preservation by deploying funding strategically, consistently, and at a scale that individual jurisdictions may be unable to achieve on their own. The Trust would also create shared technical capacity and expertise to support member cities as affordable housing projects become increasingly complex and competitive for funding.
Meeting Date: July 21, 2026
The Trust would not replace individual city-level housing programs or individual city discretion over land use. Rather, the Trust would strengthen and complement existing local programs by providing additional funding resources, technical expertise, and regional coordination.
Measure A Funds and Allocation
In 2024, Los Angeles County voters approved the Affordable Housing, Homelessness Solutions, and Prevention Now Transactions and Use Tax Ordinance, commonly referred to as Measure A. This authorized a ½ cent countywide sales tax dedicated to addressing homelessness through affordable housing, prevention efforts, and renter support.
Measure A allocates 35.75% of the tax to the Los Angeles County Affordable Housing Solutions Agency (“LACAHSA”), and LACAHSA allocates 70% of its funds to “eligible jurisdictions” as defined in the County’s Measure A Ordinance. Measure A funds do not flow directly to Beverly Hills but instead to WSCCOG, which is one of the eligible jurisdictions. LACAHSA’s program guidelines require that funds are allocated across four separate categories as shown in Table 1.
Table 1: Fiscal Year 26-27 LACHASA Funding Allocated to WSCCOG PPO1 RPHP2 TA3 Total
$4,573,751 $2,117,286 $352,881 $7,043,918
65% 30% 5% 100%
On June 11, 2026, the WSCCOG Board voted to transfer $8,446,686 to the Trust, if it is formed by October 2026, from Measure A Fiscal Years 25-26 and 26-27 funds as shown in Table 2 below. Attachment 2 details the Fiscal Year 26-27 proposed Trust budget. The Trust would primarily utilize LACAHSA’s Production, Preservation and Ownership (“PPO”) funds in its initial years and could seek additional funding through opportunities from various state or regional sources as they become available.
Table 2: Initial WSCCOG Measure A Funds Transferred to WSCAHT Amount Description
$ 3,667,435 A portion of Fiscal Year 25-26 LACHASA PPO funds4 $ 4,573,751 All Fiscal Year 26-27 LACAHSA PPO funds shown in the table above
$ 205,500 A portion of Fiscal Year 26-27 LACHASA TA funds shown in the table above
$ 8,446,686 Total
1 Production Preservation and Ownership. This consists of two categories. The PPO New Construction category consists of constructing new permanent residential units, the substantial rehabilitation of residential or non-residential structures into affordable housing, or other subsidies that support new construction. The PPO Flexible category can be spent on new construction or other approved uses. 2 Renter Protection and Homelessness Prevention
3 Technical Assistance
4 Total FY 25-26 PPO funds were $4,545,233. $877,798 has been allocated to the 327-335 South Robertson Beverly Hills Robertson Sunflower project after completion of a competitive process. $3,667,435 remains available.
Meeting Date: July 21, 2026
Trust Evaluation and Formation Process
Through SCAG-funded REAP 1.0 and 2.0 efforts, WSCCOG completed a feasibility assessment, received a recommendation to pursue formation of a regional housing trust, and proceeded with implementation planning. WSCCOG engaged consultant Harris & Associates in February 2025 and has worked with COG member cities to evaluate governance structures, funding opportunities, operational models, housing needs, stakeholder priorities, and implementation strategies associated with the Trust formation.
Over the past year, WSCCOG has completed technical analysis and stakeholder engagement to evaluate the feasibility and structure of the potential Trust, including:
• A governance and best practices assessment reviewing successful housing trust models throughout California;
• A funding opportunities analysis examining local, regional, state, federal, and philanthropic funding sources;
• An outreach and engagement plan, including a public community forum held on May 14, 2026, to gather public input regarding housing needs and potential Trust priorities;
• Interviews with COG member cities’ staff, elected officials, affordable housing developers, housing finance professionals, philanthropic organizations, and other regional partners;
• A regional housing needs assessment evaluating housing conditions and affordable housing needs across Beverly Hills, Culver City, Santa Monica, and West Hollywood;
• Establishment and organization of a Steering Committee to serve as an advisory policy body to guide and evaluate the potential formation of the Trust; • An implementation framework for the ongoing development of draft trust formation documents, including a JPA Agreement and By-Laws, which have been reviewed by staff and legal counsel from each respective city; and • Development of a proposed Fiscal Year 26-27 operating budget and management structure.
On June 11, 2026, the WSCCOG Board voted to endorse the formation of the Trust and directed that the draft JPA agreement be presented to each Westside city.
Trust Draft Strategic Plan
The Trust’s draft Strategic Plan establishes a three-year roadmap for the Trust's initial operations and is organized around four strategic priorities:
1. Technical Assistance and Pipeline Development
Support member cities in identifying, evaluating, and advancing housing opportunities while building a pipeline of viable housing projects.
2. Capital Funding, Deployment and Growth
Deploy available funding resources effectively, support housing production and preservation, and pursue additional funding opportunities.
Meeting Date: July 21, 2026
3. Systems, Data and Communications
Strengthen organizational transparency, performance measurement, reporting, and public communication regarding Trust activities and outcomes.
4. Regional Partnerships and Member Engagement
Strengthen collaboration among member cities, developers, lenders, nonprofit organizations, funding partners, and other housing stakeholders.
Together, these priorities are intended to support housing production, preservation, and financing throughout the Westside. The draft Strategic Plan is included as Attachment 3.
Proposed Joint Powers Authority (“JPA”) Agreement
Key details of the JPA include the following:
• Only City of Los Angeles, County of Los Angeles, and cities within the jurisdiction of WSCCOG may be party to the JPA and a member of WSCAHT. It is not anticipated that City of Los Angeles or County of Los Angeles will adopt the JPA. • The JPA would become effective upon approval by the governing bodies of at least three eligible member cities and could be terminated by agreement of a majority vote of the member cities. The JPA includes a process for eligible agencies that join more than one year after the JPA’s effective date. It also includes provisions for withdrawal.
• WSCAHT would be established as a separate public entity pursuant to California Government Code §§ 6500 et seq. and 6539.1.
• The purpose of the Trust would be to receive, manage, and deploy public and private funding to finance the development and preservation of affordable housing for extremely low-, very low-, and low-income households. • The Trust would maintain all the powers common to the cities that are party to the JPA which are necessary, convenient, specified, or implied, to accomplish the purpose of the Trust, including but not limited to:
o Receiving and administering public and private funding sources; o Providing grants and loans for affordable housing activities; o Supporting acquisition, predevelopment, construction, preservation, and homeownership programs;
o Providing technical assistance and project readiness support; and o Pursuing additional housing funding opportunities on behalf of member jurisdictions.
• The JPA does not authorize the trust to do any of the following:
o Regulate land use within the jurisdiction of any of the JPA parties; o Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation, or tax assessment, as a condition of approving the funding for or approval of a development project; o Require or incentivize inclusionary zoning requirements; o Require the member cities to dedicate or assign funding for any WSCAHT obligations or programs;
Meeting Date: July 21, 2026
o Fund a housing project or program that is not supported by the city or jurisdiction where the project will be sited. Prior to Trust funding consideration, the applicable city or jurisdiction shall have provided preliminary written support from the City Manager, Community Development Director, or equivalent authorized official acknowledging that the applicant may pursue Trust funding for the proposed project; o Require the member cities to accept or provide any number of housing units as a prerequisite to joining or remaining a member of WSCAHT; or o Affect the individual power of each city separately to implement affordable housing projects and programs generated within its jurisdictional boundaries.
The Trust would operate independently from WSCCOG, maintain separate financial records, comply with the Brown Act, conduct annual independent audits, and provide annual public reporting.
Trust Board of Directors and Governance Structure
California Government Code § 6539.1 requires that a regional housing trust be governed by a board of directors consisting of a minimum of five directors, that at least three board members shall be elected members from a local agency that is a party to the JPA, and that at least two additional board members shall be experts in homeless or housing policy that are not elected officials of a local agency. The proposed JPA is structured to comply with these and all other legal requirements.
The proposed JPA would be governed by a Board of Directors consisting of one elected official appointed by each member city (each an “Elected Official Director”). The Elected Official Directors would appoint, by majority vote, additional Directors that are housing and homeless policy experts (each an “Expert Director”). All Directors would have one vote on matters before the Board.
At all times, the Board would consist of not fewer than three Elected Official Directors and a number of Expert Directors that is one less than the number of Elected Official Directors.
If all four cities join the Trust, there would be a total of seven Directors: four Elected Officials and three Experts.
Status of Trust Formation
WSCCOG has attempted to gain consensus on establishing the Trust to the greatest extent possible. In order to enter into the JPA, all parties must adopt the same JPA document.
On June 11, 2026, the WSCCOG Board voted to endorse the formation of the Trust and directed that the draft JPA agreement be presented to each COG city. Culver City, Santa Monica, and West Hollywood are each targeting review and discussion with their respective City Councils for late July through mid-August.
The June 11, 2026, WSCCOG Board recommendation also assumed all four proposed member cities would join the Trust, and, if formed, WSCCOG would subsequently transfer the identified Measure A LACAHSA PPO funds to the Trust to support its housing financing and program activities. If one or more cities ultimately choose not to participate in the Trust, or if a Trust is not formed, WSCCOG would need to reevaluate the recommended Meeting Date: July 21, 2026
funding strategy and determine how best to allocate available PPO resources consistent within LACAHSA requirements and WSCCOG Board direction.
FISCAL IMPACT
There is no direct fiscal impact to entering into the proposed JPA at this time.
The purpose of the JPA is to establish a mechanism by which Measure A funds may be deployed across the Westside. Measure A funds do not directly flow to Beverly Hills or other WSCCOG member cities, but instead to WSCCOG. It is anticipated that affordable housing developers would apply to various financing opportunities announced by the Trust. Should projects in the Beverly Hills jurisdiction be awarded funds, the City could indirectly benefit. For example, funds awarded by the Trust might reduce any potential gap funding the City might have otherwise contributed.
The primary source of the Trust’s revenue would be funds from the 2024 voter-approved Los Angeles County Measure A, which allows up to 5% of funds to be allocated to administrative expenses and would fund the Trust’s The operating expenses The Trust could require member cities to pay fees for certain administrative costs for the Trust.
The proposed Fiscal Year 26-27 Trust budget, shows estimated operating expenses would be paid entirely from 5% of Measure A funds allowed for administrative expenses and does not contemplate a fee from the member cities.
RECOMMENDATION
Staff seeks City Council direction on whether to enter into the proposed JPA agreement, as shown in Attachment 1.
Given that WSCCOG has recommended the proposed JPA structure after thorough review and analysis and that the potential Trust would offer a mechanism by which Westside cities can pool and direct Measure A funds to projects that are proposed in each jurisdiction, Staff recommends City Council adopt the JPA.
If one or more cities ultimately choose not to participate in the Trust, or if a Trust is not formed, WSCCOG would need to reevaluate the recommended funding strategy and determine how best to allocate available PPO resources consistent within LACAHSA requirements and WSCCOG Board direction. Culver City, Santa Monica, and West Hollywood are each targeting review, discussion, and possible adoption with their respective City Councils for late July through mid-August If directed to proceed, Staff would bring the final JPA forward for City Council approval at an upcoming August or September Formal Session on the Consent Agenda along with an update of the other three cities’ adoption status.
Staff, WSCCOG staff, and WSCCOG’s consultant assisting with establishment of the Trust, Harris & Associates, will be available to answer questions.
Ryan Gohlich,
City Manager
Approved By