2026-02-03 CC Agenda Packet - ITEM D6 - Housing Trust Discussion & JPA Overview1
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Why A South Bay Housing Trust?
•Voters approved Measure A in
2024; legislating ~$13 million
a year for Housing ($7+
million) and Prevention ($5+
million) funding for SBCCOG.
•This presentation will talk
about the funds that are
dedicated to Production and
Preservation, and Ownership
of housing as those are the
funds we would be
considering for the proposed
Housing Trust
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Production, Preservation, and Ownership (PPO)
•SBCCOG mandated to
program $7.3 million of
LACAHSA PPO funds.
•LACAHSA agency
funds can also match
our funding – so
potentially +/- $14
million of funding for
our cities.
(allocations determined by
low income RHNA numbers)
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SGV and Gateway Housing Trust Before LACAHSA
SGV and
Gateway
COGS
Housing
Trust
Housing
Trust +
LACAHSA
LACAHSA
•SGV and Gateway formed their Housing Trust first, and then
incorporated LACAHSA funds into their Trust
2020/2023 2025
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SBCCOG Received LACAHSA Funding First
SBCCOG LACAHSA
•SBCCOG has received LACAHSA funding and is
contemplating a Housing Trust
2025
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Housing Trust Structure
Dues
•No dues first year. =➔ Paid for by LACAHSA
•Future Housing trust to decide on dues
•Trust Board made up of city representatives
•LACAHSA provides $1.4 million for administrative
funding
•Housing Trust administrative costs projected to be
$500k annually, so there is a cushion
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SBCCOG May Need a Trust to Fulfill LACAHSA Portfolio
LACAHSA Product Portfolio:
•Grants
•Soft Development Loans (revenue generating)
•Construction/Pre-Development Loans (revenue generating)
•Preservation Acquisition/Equity stakes (revenue generating)
•Master Leasing
•Rental or Operating Subsidies
•Direct Service - Homebuyer Assistance (revenue generating)
Items in Blue are only possible if SBCCOG partners with a Non-Profit
Activities in Red may not be possible under SBCCOG current authority –
handicapping our ability to maximize our LACAHSA funding
However, they would be possible under a Housing Trust
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No Housing Trust Scenario - Grants
1.Grants Create Tax Liability
•Treated as taxable income
•Increases developer's tax burden, reducing available equity for the project
•Tax hit can outweigh the value of the grant itself
2.Grants Reduce Basis For Federal Tax Credits
•Low-Income Housing Tax Credit Applications (a common form of financing)
rely on eligible basis to determine how many credits a project can receive
•Grants are considered "basis reducers" and lower the project's eligible
basis
•Lower Basis > fewer tax credits > less equity > weak financial package
3.Grants Can Make Capital Stack Less Competitive
•Developers often prefer financing tools that preserve or increase basis, not
reduce it
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SGV Housing Trust Generating Revenue
•SGV Housing Trust is generating
over $230,000 a year in Interest and
Loan Fee Revenue
•Their Revolving Loan Fund will
receive its first loan repayment,
allowing their Trust to recycle those
funds to another project
•We can achieve similar results
with our LACAHSA funds, but
need a Housing Trust in order
to do it
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What about cities with no development opportunities?
If cities have no development opportunities, there are other ways
to participate in LACAHSA PPO Funds + Housing Trust
▪Preservation of existing affordable housing
▪Master Leasing
▪Rent or Operating Subsidies
▪First Time Homebuyer Assistance
▪Income verification for existing low-income housing
o The Trust will have to find funding for this and/or can act as a
central administrator for cities to achieve economies of scale
o LACAHSA projects will have funding for income verification.
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Naturally Occurring Affordable Housing (NOAH)
•There are naturally
occurring affordable
housing in every city that
need to be preserved
before investors buy
them and charge market
rate rent
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Wall Street In Our Cities
Invitation Homes,
NYSE Ticker Symbol:
INVH
“We operate in
markets with strong
demand drivers, high
barriers to entry, and
high rent growth
potential, primarily in
the Western United
States, Florida, and
the Southeast United
States.”
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Financial Hardships in the South Bay
•No city is immune to
financial stress that
constituents are facing
•Evictions are one pathway into
homelessness
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Need For 100% Affordable
Constituents who would benefit from
100% affordable housing include –
•Seniors on fixed income (social
security)
•Essential workers (medical assistants,
city employees, restaurant/fast food
employees, teacher’s aids, child-care
workers, etc..)
•Developmentally/physically disabled
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Affordable Housing Without a Housing Trust
Market Rate Housing (green) vs 100% Affordable (red)
•Unlike market rate housing, cities/developers need help building 100% affordable
•100% affordable projects are very difficult to pencil out. Many often fail to get off
the ground (ie. United Methodist Church in San Pedro)
•San Gabriel Valley Housing Trust has a pipeline 875 units, and 927 units built to
date on top of what is naturally occurring in their market
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A Regional Approach vs Cities Doing It Alone
Housing Trust Matters
Cities face increasing housing
responsibilities with limited staff and
resources.
A Regional Housing Trust creates shared
capacity, expertise, and funding leverage to
benefit cities.
Identifies and applies for multiple funding
opportunities for the benefit of the region
Organizes developments so that projects are
not competing with each other
Cities acting independently increases cost,
duplication, and administrative burden.
One set of housing program guidelines, loan
documents, legal and staff expertise, and
compliance instead of many.
Centralized income verification and compliance,
tracking system and process.
Shared legal, underwriting, and reporting
expertise specializing in affordable housing and
complex loan negotiations and closings.
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Information You Need to Know to Decide
Questions?
SOUTH BAY REGIONAL HOUSING TRUST
STRATEGIC PLAN OVERVIEW
&
JPA SUMMARY
EXECUTIVE SUMMARY
•Mission Statement
•To empower South Bay cities with flexible funding,
strategic guidance, and technical assistance that advance
local housing priorities, expand housing opportunity, and
support the development and preservation of affordable
and supportive housing across the region.
•Vision Statement
•A South Bay region collaborating to expand housing
opportunities through innovation, strategic partnerships,
and coordinated Trust resources—supporting access to
diverse housing choices that strengthen community
stability and economic vitality.
•Governance Board
•One Trust Board Director from each
member city + Two Trust Board
Directors representing housing experts.
•Trust Staff
•Option 1: SBCCOG Employees
•Option 2: Contracted Consulting Firm
•Organization Chart
•Advisory Committee Framework
•Purpose and Role
•Membership Composition
•Meeting frequency and output
•Benefits to the Trust
GOVERNANCE, TRUST STAFF, AND
ADVISORY COMMITTEE
TRUST FORMATION & IMPLEMENTATION
GOALS
1.Secure initial capital funding commitments.
2.Establish transparent, accountable, and sustainable governance.
3.Promote regional collaborative and shared solutions.
4.Strengthen local capacity through technical assistance.
5.Establish performance metrics and evaluation tools.
6.Building the Trust’s brand and demonstrating early impact.
7.Design and launch housing funding programs
SOUTH BAY REGIONAL HOUSING TRUST
DRAFT JOINT EXERCISE OF POWERS
AGREEMENT
INTRODUCTION
•2022 Legislation added to the CA Government Code section 6539.9 authorizing
the creation of the South Bay Regional Housing Trust.
•Purpose: Receive and leverage public and private funding for planning and
construction of housing of all types and tenures for persons and families of
Extremely-Low, Very-Low, and Low-Income.
•Term –The Effective Date of the JPA will be the date of approval by the fourth
city to join the Trust.
LIMITATION ON POWERS
•Regulate land use within the jurisdiction of any of the Parties;
•Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication,
reservation or tax assessment, as a condition of approving the funding for or approval of a development
project;
•Require or incentivize inclusionary zoning requirements;
•Require the Parties to dedicate or assign funding for any SBRHT obligations or programs;
•Fund or approve a housing project or program that is not supported by the governing body of the
jurisdiction (a city or the county) in which the proposed project is sited;
•Require the Parties to accept or provide any number of housing units as a prerequisite to joining or
remaining a member of SBRHT; and
•Affect the individual power of each Party separately to implement affordable housing projects and
programs generated within its jurisdictional boundaries.
TERMS OF THE JPA
•One elected official from each Trust member City, appointed by that City Council + Two
Housing Experts appointed by the City Managers Committee.
•Withdrawal –anytime with written notice and executed copy of city resolution subject to
notice received at least 90 days prior to start of fiscal year and payment of any
administrative fees.