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CC - Item 5A - Discussion on Joining the San Gabriel Valley Regional Housing Trust Joint Powers AuthorityROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: MAY 31, 2022 SUBJECT: DISCUSSION ON JOINING THE SAN GABRIEL VALLEY REGIONAL HOUSING TRUST JOINT POWERS AUTHORITY 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. The City of Rosemead is within the Central District. At the April 12, 2022, City Council Meeting, Regional Housing Trust Administrator, Brielle Acevedo, conducted a presentation and provided an overview of SGVRHT activities over the last year. Ms. Acevedo concluded 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 participating cities – the cities of Alhambra, Arcadia, Azusa, Baldwin Park, Claremont, Covina, Diamond Bar, Duarte, El Monte, Glendora, Irwindale, La Canada Flintridge, La Verne, Monrovia, Montebello, Pasadena, Pomona, San Gabriel, South El Monte, South Pasadena, Temple City, and West Covina. Of the 22 participating cities, 18 cities are "members" and the cities of La Canada, Pasadena and Temple City are affiliates. The SGVRHT is currently working on 10 affordable housing projects and funding is provided based on project readiness. *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 5.A City Council Special Meeting May 31, 2022 Page 2 of 3 Member status allows the City to apply for affordable housing project funding* and apply to serve on the SGVRHT Board of Directors. The Central District is currently represented by the City of EI Monte. Full membership would allow Rosemead to apply for project ready affordable housing development. Affiliate membership demonstrates regional support for solutions to affordable and homeless housing but is not eligible to seek board seats or apply for project funding. To join the SGVRHT as a member, the City Council would 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 would 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. In addition, SGVRHT can provide administrative and technical assistance with Permanent Local Housing Allocation (PHLA). The California Department of Housing and Community Development (HCD) provides the PHLA grant to local governments in California for housing - related projects and programs that assist in addressing the unmet housing needs of the community. To receive the funding, a 5 -year plan must be submitted to HCD and requires annual reporting. Affiliate and full member Cities may elect to give portions of their PHLA funding allocation to the Housing Trust to pool for future projects. The membership fees include a one-time "joining fee." Currently, the joining fee is $6,000. 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 2022-23 are as follows: Annual Member Fees First Year — $21,750 (includes one-time joining fee) Ongoing: $15,750+ annual CPI increase Annual Affiliate Fees First Year - $ 6,150 (includes one-time joining fee) Ongoing: $3,150+ annual CPI increase 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 of $21,750 for Fiscal Year 2022-2023; 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 of $6,150 for the first year. City Council Special Meeting May 31, 2022 Page 3 of 3 FISCAL IMPACT In anticipation of this item, funding at the membership level has been included in the proposed FY 2022-23 budget. STRATEGIC PLAN IMPACT No impact. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Pree'parred by: ayK l �i vim- Charlotte Cabeza, Management Analyst