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CC - Item 6A - Discussion on Joining the San Gabriel Valley Regional Housing TrustROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER ,)S`N\ . DATE: SEPTEMBER 7, 2021 SUBJECT: DISCUSSION ON JOINING THE SAN GABRIEL VALLEY REGIONAL HOUSING TRUST SUMMARY Formation of the San Gabriel Valley Regional Housing Trust (SGVRHT) was authorized by SB 751 (Rubio), which allowed the San Gabriel Valley cities to band together to bring additional affordable housing resources to the San Gabriel Valley region. Consequently, the SGVRHT was established in February 2020 as a Joint Powers Authority (JPA) developed by a working group of staff from cities within the San Gabriel Valley and reviewed by the San Gabriel Valley Council of Government's City Managers' Steering Committee. The SGVRHT is governed by a nine -member board of directors composed of seven local elected officials and two housing and homeless experts. At the June 14, 2021, City Council Special Meeting, SGVRHT Board Member and City of Monrovia City Council Member Becky ' Shevlin conducted a presentation and provided an overview of SGVRHT activities over the last year. Ms. Shevlin ended her presentation by asking the Rosemead City Council to consider joining the SGVRHT. DISCUSSION The SGVRHT offers cities two forms of membership— "member" and "affiliate". To date, the SGVRHT has 22 member cities. Member status allows the City to apply for funding from the SGVRHT for a project in its jurisdiction and be eligible to apply for a seat on the Board of Directors.* Affiliate membership shows support for regional solutions to affordable and homeless housing. To join the SGVRHT as a member, the City Council must adopt an Agreement and pay an annual administrative fee to support the ongoing operations of the SGVRHT JPA. To join the SGVRHT as an affiliate member, a city must submit a letter from the City Manager or City Council indicating the City's intent to join as an affiliate member and pay the affiliate annual administrative fee. *The funding for projects by the SGVRHT comes from a variety of sources such as the State's Local Housing Trust Fund Grant Program and the Permanent Local Housing Allocation Program, earmarked State budget funds, and additional capital funds secured by the SGVRHT, among other funds. AGENDA ITEM 6.A City Council Special Meeting September 7, 2021 Page 2 of 2 The membership fees include a one-time "joining fee." Currently the joining fee is $3,750. However, the joining fee is increased by $750 every quarter. For example, if the City of Rosemead does not choose to join the SGVRHT in September 2021 but decides to join in November 2021, the joining fee would be $4,500 ($3750 + $750 = $4,500). The annual fees are determined by population size and the increase in the annual Consumer Price Index (CPI). Therefore, for Rosemead the member fees for FY 2021-22 (if joining this quarter, July through October) are as follows: Member $3,750 (joining fee) + $15,000 (annual fee) x.9% (CPI) = $18,885 Affiliate $3,750 (joining fee) + $3,000 (annual fee) x.9% (CPI) = $6,777 STAFF RECOMMENDATION Staff recommends that the City Council discuss joining the San Gabriel Valley Regional Housing Trust. Should Council decide to join at this time: 1. Direct staff to bring back an Agreement with the SGVRHT to join as a member city and pay member fees, not to exceed, $18,885 for the first year; or 2. Direct the City Manager to submit a letter to the SGVRHT indicating Rosemead's intent to join as an affiliate and pay affiliate fees, not to exceed, $6,777 for the first year. FISCAL IMPACT Should Council decide to join the SGVRHT, the fees will be determined whether the City joins as a member ($18,885) or affiliate ($6,777). Necessary funding will be presented for appropriation with the 1St Quarter Budget Review. STRATEGIC PLAN IMPACT No impact. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: