City Council
Report
City Council Meeting: July 28, 2026
Agenda Item: 11.A
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To: Mayor and City Council
From: Aileen Reynolds, Director, Housing and Human Services Department Subject: Adoption of a Resolution Approving Membership in the Westside Cities Affordable Housing Trust (WSCAHT) Joint Powers Authority Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Adopt a resolution approving the City’s membership in the Westside Cities Affordable Housing Trust (WSCAHT);
3. Authorize the City Manager, or designee, to execute the Joint Exercise of Powers Agreement establishing the WSCAHT; and
4. Appoint one (1) City Council member to serve as the City’s Director and one (1) City Council member to serve as the City’s Alternate Director on the Board of Directors of the Westside Cities Affordable Housing Trust.
Executive Summary
In collaboration with three other cities – West Hollywood, Culver City and Beverly Hills - of the Westside Cities Council of Governments (WSCCOG), staff recommends that the City of Santa Monica join the proposed Westside Cities Affordable Housing Trust (“WSCAHT” or “Trust”), a regional Joint Powers Authority (JPA) being considered by the member cities of the Westside Cities Council of Governments (WSCCOG), to expand affordable housing financing opportunities through regional collaboration.
The Trust will provide a dedicated structure for receiving, managing, and deploying affordable housing funding resources, specifically Measure A funding, while preserving local control over land use and development decisions. The Trust is intended to help 2 of 7
member cities access additional housing resources, leverage regional funding opportunities, provide technical assistance, and support affordable housing production and preservation activities throughout the region.
Membership in the Trust does not obligate the City to approve any housing development, contribute funding to any housing development, waive local land use authority, or assume liability for the Trust’s obligations. Measure A, by way of the Los Angeles County Affordable Housing Solutions Agency (LACAHSA), will cover administrative costs of the Trust for an initial period. The JPA does anticipate that the member cities would be expected to share administrative costs on an annual basis should Measure A funding be insufficient, however that is not anticipated at this time.
BACKGROUND
The WSCCOG received Regional Early Action Planning (REAP 2.0) funding from the Southern California Association of Governments (SCAG) to evaluate the feasibility of creating a regional affordable housing trust.
Since the beginning of 2026, WSCCOG staff, housing finance consultants, a Steering Committee consisting of representatives from the four Westside member cities (West Hollywood, Culver City, Beverly Hills and Santa Monica), and local housing developers have evaluated regional housing needs, reviewed affordable housing trust best practices, assessed potential funding opportunities, conducted community and stakeholder outreach, and developed a Strategic Plan, Joint Powers Agreement, and Bylaws for the proposed Trust.
Following this process, the WSCCOG Board recommended formation of the WSCAHT and directed that the JPA be presented to teach member city for independent consideration and action by its respective City Council.
WESTSIDE CITIES AFFORDABLE HOUSING TRUST
The WSCAHT would be established as a separate public entity pursuant to the Joint Exercise of Powers Act (the “JPA”), California Government Code Sections 6500 et seq. 3 of 7
The mission of the Westside Cities Affordable Housing Trust is to expand affordable housing opportunities through financing, technical assistance, and regional collaboration that support participating cities and housing partners in creating, preserving, and improving housing opportunities throughout the Westside region.
The Trust would have authority to:
• Receive and administer public and private funding sources. • Provide grants and loans for affordable housing activities. • Support acquisition, predevelopment, construction, preservation, and homeownership programs.
• Provide technical assistance and project readiness support. • Pursue additional housing funding opportunities on behalf of member jurisdictions.
• Hire legal counsel and employees.
• Contract for professional services or staffing.
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.
GOVERNANCE
The Trust will be governed by a Board of Directors consisting of:
• One elected official appointed by each member agency. • One alternate director appointed by each member agency. • Housing and homelessness policy experts appointed by the WSCAHT Board.
The number of appointed expert members will be one less than the number of elected officials serving on the Board, with a minimum of two expert members. All Board members will have voting authority.
This governance structure is intended to maintain direct local government oversight while incorporating affordable housing and housing finance expertise into Trust 4 of 7
decision-making.
FUNDING CONTRIBUTIONS
The Trust Agreement requires each member agency to make annual contributions to fund the administrative costs of the Trust, though all administrative costs will be funded by Measure A funds for the first twelve (12) months following the formation of Trust, to the extent that such funds are available. If Measure A funding is not available, the member agencies will be required to contribute equally pursuant to a formula approved by the Board of Directors of the Trust.
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STRATEGIC PRIORITIES
The Trust’s Strategic Plan establishes four initial Strategic Priorities:
1. Technical Assistance and Pipeline Development
a. Support member cities in identifying, evaluating, and advancing housing opportunities while building a pipeline of viable housing projects.
2. Capital Funding, Deployment and Growth
b. Deploy available funding resources effectively, support housing production and preservation, and pursue additional funding opportunities.
3. Systems, Data and Communications
c. Strengthen organizational transparency, performance measurement, reporting, and public communication regarding Trust activities and outcomes.
4. Regional Partnerships and Member Engagement
d. 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, financing, and long-term organizational sustainability throughout the Westside region.
BENEFITS OF MEMBERSHIP
Membership in the Trust provides several potential benefits:
• Access to regional housing financing programs and funding opportunities. • Increased competitiveness for State, County, Federal, and philanthropic funding resources.
• Technical assistance and housing finance expertise.
• Access to acquisition, predevelopment, and project financing resources. • Regional collaboration and shared best practices.
• Ability to leverage funding through a revolving capital structure. • Shared administrative infrastructure and economies of scale. 6 of 7
Collectively, these benefits strengthen each member city’s ability to finance affordable housing, leverage external funding, and advance locally supported housing priorities through regional collaboration.
LOCAL CONTROL
Membership in the Trust does not alter the City’s authority over land use, zoning, planning, entitlement, environmental review, or project approval decisions.
The JPA expressly prohibits the Trust from regulating land use or requiring cities to approve housing developments. In addition, developments seeking Trust funding must first obtain preliminary written support from the host jurisdiction before being considered for funding.
Participation in the Trust does not obligate the City to approve any development, provide local funding, or modify existing land use policies.
ENVIRONMENTAL REVIEW
This contract is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The agreement is covered by the common sense exemption, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The action involves approval of the City’s membership with a JPA and does not entail any physical change to the environment. Therefore, it can be stated with certainty that the action will not result in adverse physical environmental impacts and is consequently exempt from CEQA.
FINANCIAL IMPACTS AND BUDGET ACTIONS
There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future.
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Administrative costs are anticipated to be funded primarily through Measure A and other eligible funding sources during the Trust's first year of operation.
The JPA does not require member agencies to contribute capital funding to housing developments. If future administrative contributions become necessary, the Trust Board would establish a cost allocation methodology after accounting for available grants and other eligible administrative revenue sources. Any proposed administrative contribution would require Board approval and advance notice to member agencies, providing each agency an opportunity to consider the proposal through its normal budget and decisionmaking process.
The Trust is a separate legal entity, and its debts, liabilities, and obligations are not debts, liabilities, or obligations of its member agencies.
Prepared By: Natalie Verlinich, Acting Director
Approved Forwarded to Council
Attachments:
A. Attachment A - Westside Cities Affordable Housing Trust Resolution B. Attachment B - Westside Cities Affordable Housing Trust Joint Power Agreement C. PowerPoint Presentation