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DISCUSSION
City of San Bernardino
Request for Council Action
Date: October 18, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Mary Lanier Interim Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, and Economic Development Subject: San Bernardino Regional Housing Trust Letter of Intent
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino:
1. Receive and file presentation from San Bernardino Council of Governments; and
2. Authorize the City to join the San Bernardino Regional Housing Trust by submitting a Letter of Intent to the San Bernardino Council of Governments.
Executive Summary
The recommended action is for the Mayor and City Council to listen to a Regional Housing Trust presentation from the San Bernardino Council of Governments that highlights the purpose and benefits of the City joining a Regional Housing Trust, which would give the City a competitive edge when applying for various funding which is needed to increase the development of affordable housing in the City.
The submission of a Letter of Intent to the San Bernardino Council of Governments serves as the initial step in becoming a member of the San Bernardino Regional Housing Trust. Participation in the Regional Housing Trust does not financially obligate the City in any way.
Background
In response to increasing concern around the region’s housing shortage, the San Bernardino Council of Governments (SBCOG) City/County Managers Technical Advisory Committee (CCMTAC) determined that an ad hoc Committee was needed to explore the feasibility of implementing a housing trust for the San Bernardino region. 1 6
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On January 4, 2023, SBCOG approved the establishment of an ad hoc committee to review the governance structure of the proposed Regional Housing Trust.
On January 23, 2023, the ad hoc committee met to discuss governance structure options and voted to proceed with SBCOG’s staff recommendations to establish a separate Joint Powers Authority (JPA) for the Regional Housing Trust. It was recommended that the JPA be its own separate legal entity known as the San Bernardino Regional Housing Trust (SBRHT) and be made up of member agencies with a non-profit component that would enable the SBRHT to solicit and accept private donations. The purpose of SBRHT is to attract significant funding and affordable housing interest into the San Bernardino Region. The goals of the SBRHT are to:
•Attract affordable housing developers.
•Increase/preserve the region’s affordable housing supply. •Increase equitable access to community resources.
•Provide financial relief for vulnerable and cost burdened households. •Protect against displacement, overcrowding, and poor housing conditions.
On April 5, 2023, SBCOG authorized the following:
•The process of establishing a San Bernardino Regional Housing Trust; •The process of establishing a new JPA;
•Hiring necessary consultants upon receipt of award of Regional Early Action Planning (REAP) 2.0 funds; and
•Direction for its staff to work with the housing trust ad hoc committee to develop recommendations for SBCOG Board’s consideration on policy decisions regarding the establishment of a Regional Housing Trust.
SBCOG will utilize Southern California Association of Governments (SCAG) REAP
2.0 funds once awarded to initiate and implement the new JPA. This includes all studies, research, analysis, legal action/fees, etc. to be funded by REAP 2.0. Qualified staffing will be selected through a procurement process that will likely include member agency staff.
Discussion
The HOME Investment Partnerships Program (HOME) is administered by the United States Department of Housing and Urban Development (HUD) and is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions, and funding can be used to perform a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. 1 6
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On average, the City receives approximately $1.4 million in HOME funds annually. This amount is not nearly enough to create the level of affordable housing needed in the City. According to the SCAG 2021-2029 6 th cycle Regional Housing Needs Assessment (RHNA) Report, the County needs 8,832 affordable housing units to meet its housing demand, but specifically, the City has a future housing need of 1,415 units for very low-income units, of which half (703 units) are the projected need for extremely low-income households.
A Housing Trust is created to provide the following:
•Raise funds for new construction of affordable and workforce housing •Affordable housing preservation or rehabilitation
•Financing for the purchase of land
•Transitional and supportive housing
•Pre-development loans
•Down payment assistance
•Community land trust
The above listed items would be offered to the City should it decide to join the San Bernardino Regional Housing Trust. There are several benefits to joining a Regional Housing Trust that include flexible gap financing, pooled funding to preserve and produce affordable housing in the City, strengthening the financial viability of individual housing projects and programs, and increasing each project’s competitiveness for additional state and federal funding sources. Additionally, a Housing Trust works with a variety of government and philanthropic groups to attract more housing funds to the San Bernardino region.
Joining the SBRHT would allow the City the opportunity to work with other jurisdictions’ policy makers who have submitted a Letter of Intent to SBCOG’s Board to participate in SBHRT. To date, there are eleven (11) jurisdictions that have provided a Letter of Intent:
•City of Colton
•City of Fontana
•City of Needles
•City of Ontario
•City of Rancho Cucamonga
•City of Redlands
•City of Rialto
•City of Twentynine Palms
•City of Yucaipa
•City of Yucca Valley
•County of San Bernardino
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The first step in becoming a member of the SBRHT is to submit a Letter of Intent (LOI), signed by the City Manager, to the San Bernardino Council of Governments. The LOI does not financially obligate the City or commit the City to remaining in the SBRHT; it only serves to communicate the City’s interest in becoming a member. 2021-2025 Strategic Targets and Goals
Joining a Regional Housing Trust aligns with Strategic Target No. 3: Focused, Aligned Leadership and Unified Community as a Regional Housing Trust would allow the City to expand its funding pool and the resources necessary to increase affordable housing.
Joining a Regional Housing Trust also aligns with Strategic Target No. 4 - Improved Quality of Life. According to the 2021-2029 6 th cycle Regional Housing Needs Assessment (RHNA) Report, the City is in need of 1415 affordable housing units for low- and very low-income residents.
Fiscal Impact
There is no financial impact in expressing the City’s intent to join a Regional Housing Trust. Should the City enter a Memorandum of Understanding (MOU) with SBCOG to administer a Housing Trust the annual administrative fee would be approximately $26,000 (based on population size).
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino:
1. Receive and file presentation from San Bernardino Council of Governments; and
2. Authorize the City to join the San Bernardino Regional Housing Trust by submitting a Letter of Intent to the San Bernardino Council of Governments.
Attachments
Attachment 1: Regional Housing Trust Fund Slide Deck
Attachment 2: Regional Housing Trust Letter of Intent
Ward:
All Wards
Synopsis of Previous Council Actions:
Feb 1, 2023 The City declared a Homelessness State of Emergency, which is exacerbated by the lack of affordable housing.