title
APPROVE A RESOLUTION SUPPORTING THE SAN JOAQUIN COUNCIL OF GOVERNMENTS’ (SJCOG) PURSUIT OF THE SAN JOAQUIN REGIONAL HOUSING FUND AND CITY OF STOCKTON PARTICIPATION IN PLANNING AND IMPLEMENTATION ACTIVITIES
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Supporting the San Joaquin Council of Governments’ (SJCOG) pursuit of the Housing Trust Fund (“San Joaquin Regional Housing Fund Inc.”).
2. Approving the City of Stockton’s participation in planning and implementation activities of the San Joaquin Regional Housing Fund Inc. to accelerate housing production and housing-related initiatives.
body
Summary
In October 2023, the San Joaquin Council of Governments’ (SJCOG) Board of Directors approved the creation of a 501 (c)(3) non-profit corporation to implement a regional housing trust fund and to develop and submit required documents to the appropriate state and federal agencies. Now known as the San Joaquin Regional Housing Fund Inc., the creation of this regional entity is intended as a tool to accelerate housing production, boost current local housing activities, and leverage other state and federal funding opportunities.
In order to keep the trust fund project moving forward in the short term, the SJCOG Board requests that each member agency adopt a resolution committing to participate in the planning and implementation of the San Joaquin Regional Housing Fund (“Fund”). As the City of Stockton is one of SJCOG’s member agencies, it is recommended that City Council adopt a resolution supporting the Fund and approving of the City’s participation in planning and implementation activities of the Fund which accelerate housing production and housing-related activities.
DISCUSSION
Background
In 2021, SJCOG received a Regional Early Action Planning (REAP) 1.0 grant, which funded planning activities to lead to more housing construction in San Joaquin County. After discussions with local jurisdictions and stakeholders, SJCOG staff developed four priorities for the REAP 1.0 program. One of the priorities identified was the exploration of a regional housing fund.
REAP 2.0 builds on the success of 2019’s REAP 1.0 program but expands the focus by integrating housing and climate goals and allowing for broader planning and implementation investments, including infrastructure that supports future housing development. REAP 2.0 activities must meet multiple state objectives by prioritizing infill development, providing housing for people of all incomes, placing housing in locations with good transportation options to reduce the need to drive, affirmatively furthering fair housing, and accelerating the implementation of existing regional and local plans to achieve these goals.
Following discussions with local jurisdictions and stakeholders, SJCOG staff developed four regional housing priorities for its REAP 2.0 program framework. SJCOG is required by California Department of Housing and Community Development (HCD) to develop regional housing priorities to qualify to receive REAP funds. One of these priorities is the establishment of a regional housing trust fund (RHTF). REAP 2.0 funds will be utilized to advance recommendations from SJCOG’s RHTF Feasibility Study. Of the total, $1 million will be used as “seed” money and/or administrative set-up for the RHTF, depending on the type and amount of philanthropic resources received.
Housing funds (HFs) are typically not the primary funding source for affordable housing. Instead, HFs often offer “gap financing” to fill the void between housing costs and available financing. Housing Trust Funds (HTFs) can offer a flexible form of financing that can be used in a wide range of investment approaches. HF financing investments include grants, low interest loans and credit guarantees. Affordable housing projects that are supported by these investments include new construction, preservation of existing housing, homeless shelters, and permanent supportive housing. Commitment of local resources can often result in making the region more attractive to other potential funders, thereby multiplying the effectiveness of the local dollars over and above the actual investment.
Present Situation
SJCOG is the leading entity in leveraging the ability to access Local Housing Trust Fund (LHTF) dollars, coordinating efforts necessary to obtain the additional match funding. On March 1, 2024, HCD awarded $10,412,514.62 in grant funds to members through the SJCOG, making a significant milestone in our regional housing efforts. All necessary charitable documents have been developed and filed for the formation of the nonprofit public benefit corporation. Additional actions by SJCOG and the consultant team include:
• Conducting meetings with local affordable housing developers to establish a list of pipeline projects for which additional gap funding is needed.
• Hosting continued meetings with philanthropic organizations, stakeholders, and other potential funders to identify both short-term and potentially long-term funding opportunities and partnerships.
• Submitting a funding ask to the Stockton Housing Innovation Fund (SHIF) program through the San Joaquin Community Foundation (SJCF). Began establishing a non-profit partnership/joint grant application for the Community Economic Mobilization Grant Initiative (CEMI), also through SJCF.
• Developing the HCD LHTF grant application to be prepared for submittal upon release of the NOFO, which is anticipated in July 2024.
• Developing a strategic-long range funding plan to ensure future viability of the regional housing fund program.
Council-approved resolutions are needed at the time of submittal of the HCD LHTF grant application to meet the threshold requirements of the grant.
FINANCIAL SUMMARY
There is no financial impact to the General Fund with this resolution.