1 SOUTH BAY HOUSING TRUST
Why A South Bay Housing Trust?
• Voters approved Measure A in
2024; legislating ~$13 million
a year for Housing and
Prevention funding for
SBCCOG
• This presentation will talk
about the funds that are
dedicated to Production and
Preservation, and Ownership
of housing as those are the
funds we would be
considering for the proposed
Housing Trust
2 LACAHSA PPO FUNDS
Production, Preservation, and Ownership (PPO)
• SBCCOG mandated to
program $7.3 million of
LACAHSA PPO funds.
• LACAHSA agency
funds can also match
our funding – so
potentially +/- $14
million of funding for
our cities.
(allocations determined by
low income RHNA numbers)
3 SGV AND GATEWAY
SGV and Gateway Housing Trust Before LACAHSA
SGV and
Gateway
COGS
Housing
Trust
Housing
Trust +
LACAHSA
LACAHSA
• SGV and Gateway formed their Housing Trust first, and then incorporated LACAHSA funds into their Trust
2020/2023 2025
4 SBCCOG
SBCCOG Received LACAHSA Funding First
SBCCOG LACAHSA
• SBCCOG has received LACAHSA funding and is
contemplating a Housing Trust
2025
5 PROBLEM
SBCCOG May Need a Trust to Fulfill LACAHSA Portfolio
LACAHSA Product Portfolio:
• Grants
• Soft Development Loans (revenue generating)
• Construction/Pre-Development Loans (revenue generating) • Preservation Acquisition/Equity stakes (revenue generating) • Master Leasing
• Rental or Operating Subsidies
• Direct Service - Homebuyer Assistance (revenue generating) Activities in Red may not be possible under SBCCOG current authority – handicapping our ability to maximize our LACAHSA funding However, they would be possible under a Housing Trust
6 SGV REVENUE EXAMPLE
SGV Housing Trust Generating Revenue
• SGV Housing Trust is generating
over $230,000 a year in Interest and
Loan Fee Revenue
• Their Revolving Loan Fund will
receive its first loan repayment,
allowing their Trust to recycle those
funds to another project
• We can achieve similar results
with our LACAHSA funds, but
need a Housing Trust in order
to do it
7 ALL CITIES CAN BENEFIT
What about cities with no development opportunities?
If cities have no development opportunities, there are other ways to participate in LACAHSA PPO Funds + Housing Trust ▪ Preservation of existing affordable housing
▪ Master Leasing
▪ Rent or Operating Subsidies
▪ First Time Homebuyer Assistance
8 Evictions
• No city is immune to financial stress that
constituents face, whether they are renters
or homeowners
• Evictions are one pathway into
homelessness
9 SBCCOG LACAHSA
SBCCOG LACAHSA Activity FY25/26
• SBCCOG issued soft notice of funding
availability in September – sent to all cities
• Hawthorne and Inglewood may have viable
projects – currently being evaluated projects
totaling 120 units
• Other cities have reached out to discuss
interest in developing opportunities
• SBCCOG will be developing programs,
funding criteria, and documentation
requirements for the evaluation
This activity
is similar to a
housing trust
10 HOUSING TRUST SCENARIO
SBCCOG LACAHSA + Housing Trust Option
• Without a Housing Trust - Hawthorne and Inglewood – may be limited in how we can help them
• Will encourage those cities to also apply for LACAHSA agency funds • Option to wait for the Trust when a loan or other more complicated arrangement could be done – COG can only grant
• Recommendation to come back at a future meeting
• In order to maximize our LACAHSA funding – consider moving all LACAHSA Production, Preservation, and Ownership activities into the SBCCOG Housing Trust JPA
SBCCOG LACAHSA
2025 Housing
Trust
2026
11 SBCCOG LACAHSA
LACAHSA Production, Preservation, and Ownership
• IF HOUSING TRUST
• Housing Trust could work directly with developers on behalf of cities (pertinent for small cities)
• Developers would know to come to a Trust
• Cities must approve all projects funded by the Trust in their city • Benefits for all cities on LACAHSA projects
• Need to increase staffing and hire consultants
• NO HOUSING TRUST
• Cannot implement full LACAHSA Portfolio (Loans, Acquisitions, Ownership..) • Work directly with cities, but not work with developers on behalf of cities • LACAHSA would still benefit all cities
• Would still need to increase staffing and hire consultants 12 NEXT STEPS
Information You Need to Know to Decide
Questions?