AGENDA TITLE:
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Adopt a Resolution Approving Participation in the San Joaquin Regional Housing Fund as One of the San Joaquin County Member Agencies (CD)
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MEETING DATE:
July 17, 2024
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
recommendation
RECOMMENDED ACTION:
Adopt a resolution approving participation in the San Joaquin Regional Housing Fund as one of the San Joaquin County member agencies.
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BACKGROUND INFORMATION:
Pursuant to California Health and Safety Code sections 50842.1 et seq. and the California Department of Housing and Community Development (“HCD”) Guidelines, HCD administers the Local Housing Trust Fund Matching Grant Program (“Program”), to support local housing trust funds dedicated to the creation or preservation of affordable housing. The Program provides matched funds for local housing trusts, which are composed of local constituencies coming together around affordable housing. These local trusts have shown HCD that they can more efficiently respond to regional housing needs and that they have an excellent record of disbursing resources at the local level.
A Local or Regional Housing Trust Fund is required to be a public, joint public and private, or charitable nonprofit organization organized under Section 501(c)(3) of the Internal Revenue Code. The key characteristic of a Local Housing Trust Fund is that it receives ongoing revenues from dedicated sources of funding sufficient to permit the Local Housing Trust Fund to comply with the requirements of the Program. While Lodi would be eligible to create a Local Housing Trust fund, the city would need to develop a public nonprofit organization under section 501(c)(3), however due to the ever-increasing costs of building affordable housing, and the administrative costs of operating our own nonprofit, this would significantly limit the resources available to develop a project locally. Having a Regional Housing Trust Fund with all County jurisdictions participating would increase the ability to leverage resources for a project locally. Additionally, in late 2022, SJCOG hired a consultant to prepare a needs assessment to study affordable housing countywide. This study was followed by a 2023 Housing Trust Fund Financial Feasibility Study, prepared by the same consultant, with input from all county jurisdiction, including Lodi. After these extensive discussions with local jurisdictions and stakeholders, SJCOG staff developed four regional housing priorities, one of these priorities including further development of the Regional Housing Trust Fund.
In light of the Program funding requirements, the San Joaquin Council of Governments (“SJCOG”) directed its staff to form a non-profit public benefit corporation to serve as an eligible regional housing trust fund on October 26, 2023 (Attachment 1). This would allow the new nonprofit to act as a Program applicant for available funding and matching grants to expand sources of housing funds. Following the SJCOG Board of Director’s instruction, the San Joaquin Regional Housing Fund (“Fund”) was formed in March 2024, and the SJCOG Board was selected to serve as the Board of the Fund (Attachment 2).
Currently, all cities within San Joaquin County are being asked to participate in the Fund. Participating jurisdictions will have the opportunity to apply and access resources and matching dollars through the Fund that would not otherwise be available to them. At this time, the SJCOG member agencies must express their commitment to participate in the Fund, to meet HCD’s definition of a regional housing trust fund and be eligible to apply for the Program matching funds when a notice of funding is released.
Although participation in the fund at this time does not require an initial funding commitment, SJCOG will continue meeting with jurisdictions, philanthropic organizations, and stakeholders to confirm details of their participation and potential funding to be dedicated to the trust fund. Including two tasks: 1) identify available funding streams available for housing related work, administration, ongoing or recurring revenues, or one-time resources of funding or land and 2) identify resources that can be used as matching funds for the specific HCD Local Housing Trust Fund Program expected to be released in late 2024.
Therefore, staff recommends that the City Council adopt the attached resolution signifying the City’s commitment to participate in the Fund through its representation on the SJCOG Board, and to pursue funding for housing resources in compliance with the Program requirements.
Attachments:
Attachment 1-SJCOG Housing Trust Fund Board Meeting Staff Report - 10.26.23
Attachment 2-SJCOG Housing Trust Fund Board Meeting Staff Report - 03.28.24
STRATEGIC VISION:
4C. Housing: Continued progress towards Regional Housing Needs Assessment goals.
FISCAL IMPACT:
Not applicable at this time.
FUNDING AVAILABLE:
Not applicable.
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John Della Monica
Community Development Director
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Scott R. Carney
City Manager