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CC – Item 7B – 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: FEBRUARY 13, 2024 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. DISCUSSION The SGVRHT offers cities two forms of membership— "member" and "affiliate". To date, the SGVRHT has 24 participating cities – the cities of Alhambra, Arcadia, Azusa, Baldwin Park, Claremont, Covina, Diamond Bar, Duarte, El Monte, Glendora, Industry, Irwindale, La Canada Flintridge, La Verne, Monrovia, Montebello, Monterey Park, Pasadena, Pomona, San Gabriel, South EI Monte, South Pasadena, Temple City, and West Covina. Of the 24 participating cities, 21 cities are "members" and the cities of La Canada, Industry and Temple City are affiliates. The SGVRHT is currently working on 12 affordable housing projects and funding is provided based on project readiness. 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 Baldwin Park. Full membership would allow Rosemead to apply for project ready affordable housing development. 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. Affiliate membership demonstrates regional support for solutions to affordable and homeless housing but is not eligible to seek board seats or apply for project *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 7.11 City Council Meeting February 13, 2024 Page 2 of 3 affordable and homeless housing but is not eligible to seek board seats or apply for project funding. 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. The SGVRHT Member and Affiliate fees include an annual ongoing fee of $15,743/$3,148 and a one-time "joining fee" of $3,000 for each year the City was a non-member (2020-2023), totaling $12,000. The annual fees are determined by population size and the increase in the annual Consumer Price Index (CPI). Therefore, for the City of Rosemead, should choose to join this quarter, the member/affiliate fees are as follows: Annual Member Fees First Year — $27,743 (includes annual and one-time joining fee of $12,000) Ongoing Annually: $15,743+ annual CPI increase Annual Affiliate Fees First Year - $ 15,148 (includes annual and one-time joining fee of $12,000) Ongoing Annually: $3,148+ 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 $27,743 for Fiscal Year 2023-2024; 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 $15,148 for the first year. FISCAL IMPACT Depending on direction received from Council, the cost for the first year could amount to $15,148 (Affiliate) or $27,743 (Member). Also depending on direction received from Council, the ongoing annual membership fees could vary from $3,148 plus annual CPI increases for the "Affiliate" status or $15,743 plus annual CPI increases for the "Member" status. Presently, this item is not allocated in the budget for fiscal year 2023-24. Should a budget amendment be necessary, staff would submit the amendment for Council approval along with the Mid -Year Budget Report in March 2024. STRATEGIC PLAN IMPACT — None City Council Meeting February 13, 2024 Page 3 of 3 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: O Destiny Garcia, Management Analyst Reviewed by: �k /—Zll. Lily enzuela, Deputy Director of Community Development Submitted by: Stan Wong, Interim Director of Community Development