Agenda Item No. 14
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer Benjamin J. Matlock, Planning Manager/City Planner «�
Ryan Miller, Housing and Economic Development Analysf
FOR: City Council Meeting of November 14, 2022
SUBJECT: Consideration of a Letter of Interest for the City's Participation in the San Bernardino Regional Housing Trust.
RECOMMENDATION:
That City Council receive a presentation from the San Bernardino Council of Governments (SBCOG) and consider the submittal of a Letter of Interest from the Mayor on behalf of the City Council for participation in the San Bernardino Regional Housing Trust.
BACKGROUND:
As the production of housing that can meet the demands for residents has diminished, the state legislature has made a priority to create new laws intended to increase the development of additional affordable housing throughout the State and has also declared an overall housing crisis in California.
The past few years have resulted in more legislation regarding cities efforts towards housing production than had been seen in several decades, which includes both funding opportunities for jurisdictions that can provide affordable housing, but also significantly higher repercussions for cities that fail to support the development of housing.
At the local region level, the San Bernardino Council of Governments/San Bernardino County Transportation Authority, referred to as the SBCOG, has been exploring various options to help support local housing related programs for its member jurisdictions, including addressing the funding gap that resulted from the dissolution of redevelopment agencies in 2011.One of these solutions that SBCOG has been exploring is the establishment of a regional housing trust fund, which would serve as a funding mechanism that would support the housing programs of the participating agencies.
A housing trust fund is a program or independent organization that accepts grant funding and raises funding dedicated to housing construction, preservation, and rehabilitation, often concentrated on affordable housing, homeless housing services, down payment assistance, gap financing, supporting housing trusts, and related activities. The goals of a housing trust are to create housing solutions by leveraging new funding sources, and with the trust developed at a more local level, member agencies can better assess and develop projects that can meet the local needs. There are at least 48 affordable housing trusts in California, with more than 60 local jurisdictions participating in those trusts. Housing trusts in Southern California include the West Hollywood Affordable Housing Trust Fund, the Orange County Housing Finance Trust, the Santa Monica Citywide Housing Trust Fund, the County of
Letter of Interest for the San Bernardino Regional Housing Trust City Council Meeting of November 14, 2022
Ventura Housing Trust Fund, and the newly formed San Gabriel Valley Regional Housing Trust, among others.
As part of the exploration of various locally developed housing solutions, the City/ County Managers Technical Advisory Committee (CCMTAC) of the SBCOG formed an adhoc subcommittee to explore different solutions, including the feasibility of implementing a housing trust fund for the San Bernardino region. SBCOG released a Draft San Bernardino Regional Housing Trust White Paper in January 2022 that detailed the potential benefits, structures, and an assortment of relevant case studies to help inform agencies about a Regional Housing Trust Fund. The discussion of the housing trust was also presented to the Planning and Development Technical Forum, which consists of the Planning and Community Development Directors of the region, to further gather feedback on efforts that could benefit the local jurisdictions.
DISCUSSION:
SBCOG is in the process of identifying jurisdictions that may be interested in participating in a housing trust, which would be the San Bernardino Regional Housing Trust (SBRHT). In the White Paper that was prepared by SBCOG, it was recommended that SBRHT be structured as a Joint Powers Authority (JPA) made up of the participating members, and that it be administered by SBCOG to use their staff resources and expertise related to administration of regional grant funds as well as to better connect housing with the regional transportation efforts of the County.
The key goal of the SBRHT is to attract significant funding and development interest to address the housing needs of its membership communities. Through the JPA, member jurisdictions would work to increase and/or preserve the region's housing supply and increase resources to help achieve the goals of their Housing Element. Housing trusts receive financial support from a variety of sources, including funding from local jurisdictions, State and federal grants, bonds, and private donations.
These funds ultimately can help support housing initiatives for lower and middle -income earners such as teachers, service workers, and other essential workers that are early in their career. The City's review and experience with different grant programs found that there are significant funding sources that are only accessible to housing trusts, as well as many housing -related competitive grants that provide additional consideration to applicants that are part of a housing trust. In addition, there may be more flexibility to use grant funding for a wider range of income levels with housing trusts.
These potential funding benefits are potential solution for the City to encourage housing development that aligns with the General Plan, and ultimately provides another tool that, as a participating member of the JPA, could help maintain a more focused local approach in serving the community. The ultimate operations for the housing trust would be determined through the development of an Administrative Plan, which would including establishing a board of directors from the JPA to be responsible for managing housing trust fund activities and goals. These approved activities could include new construction of affordable housing, predevelopment activities for affordable housing, down payment assistance for first-time homebuyers, preservation or rehabilitation of existing affordable housing, support for community land trusts, and establishment of housing and supportive services for people experiencing homelessness. As Council is aware, the City's Regional Housing Needs Allocation (RHNA) over the next 8-year period is 2,866 housing units, and this type of effort -187-
Letter of Interest for the San Bernardino Regional Housing Trust City Council Meeting of November 14, 2022
can help the City encourage or facilitate quality housing projects desired by the community and ultimately provide solutions for safe, affordable homes for all income levels.
As part of the initial formation process, staff is recommending City Council consider the submittal of a letter to SBCOG noting interest in the participation of the SBRHT. It is important to note that this letter of interest does not bind the City to participate in the trust, but gives SBCOG a framework for the JPA, membership dues, and key programs that would be part of the SBHRT. Formal participation would require the adoption of a resolution to join the JPA. The City would also have the ability to opt out at a later date by adopting a resolution that rescinds the membership of the JPA.
FISCAL IMPACT:
There is no fiscal impact associated with the submittal of the Letter of Interest. Should the City ultimately choose to join the Housing Trust, membership dues and administrative costs will be required on an annual basis based on a combination of factors, such as the jurisdiction's population, jobs, and anticipated growth and the total number of jurisdictions in the trust. However, it is expected that these dues would be offset from the grant funding opportunities that are made available through the housing trust.
Attachments: Draft Letter of Interest
Approved by:
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CITY OF
November 14, 2022
Raymond W. Wolfe, Executive Director
San Bernardino Council of Governments
1170 W. Third Street, 2°a Floor
San Bernardino, California 92410
RE: 1NTREST IN PARTICIPATING IN SAN BERNARDINO REGIONAL HOUSING TRUST Dear Mr. Wolfe,
The City of Yucaipa is interested in participating in the San Bernardino Regional Housing Trust (SBRHT) to be established by the San Bernardino Council of Governments (SBCOG). Through the SBHRT, the City of Yucaipa intends to further the SBHRT's goal to attract significant funding and affordable housing development interest into the San Bernardino region.
The City of Yucaipa anticipates that SBCTA/SBCOG will administer SBRHT and that each participating Party shall make annual contributions toward the budgeted administrative cost of SBRHT. In return, SBRHT will provide services and support to the region and its Parties to carry out the purpose of SBRHT.
This letter of interest is not a commitment, and we are providing this letter only to further the planning for the establishment of the SBRHT. Final commitment to join the SBHRT will be subject to the City of Yucaipa's City Council approval, funding availability, and other factors.
If you have any questions regarding the City if Yucaipa's interest, please contact Ben Matlock, Planning Manager/City Planner at [email protected] or at (909) 797-2489 Ext. 261.
Sincerely,
David Avila
Mayor
City of Yucaipa
City of Yucaipa
34272 Yucaipa Blvd, Yucaipa, CA 92399
909-797-2489
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