55C - RESO OC HOUSING FINANCE JOINT POWERS

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Adoption of Resolution to Join the Orange County Housing Finance Trust June 4, 2019 Page 4 definitions of city size) if the JPA Governing Board decides to adjust the population numbers shown with some specificity in the Draft Bylaws. Changing the bylaws is simpler than changing the JPA document, as the latter requires a full recirculation and new approvals by every Trust member agency. What are the advantages and disadvantages of joining the Trust? Supporters would argue that Trust member cities can participate in the region's solutions to homelessness, without any commitment of units or allocations of that city's funding for Trust projects (though there may be a commitment to help support any staff costs for the Trust after the start-up year). Participating in the Trust helps a city without an active housing function participate (voluntarily) in providing more funding for housing in their communities and region — without necessarily having to compete against more qualified or experienced applicants. Opponents of the Trust argue that the participation in any JPA comes with additional staff time commitment and possibly the additional commitment of elected officials, and that some cities will feel more comfortable seeking funding for housing projects on their own, using their own expertise. Further, in the event that Trust administrative costs are not covered by grant and other funds (as is the intent and goal), members of the JPA may be asked to cover all or a portion of administrative costs on a pro-rata basis. In regards to this pro-rata basis after Year 1, the highest cost estimate of contributions by the City is $24,306. In order to ensure that the City's contribution would never exceed this amount, the Resolution states that the our City's contribution towards staffing for the Trust must be less than or equal to $25,000 annually (adjusted by CPI). If this amount was ever to be higher, staff _would need to return to City Council to amend the Resolution. Please see Exhibit 4 for more detailed information on this pro-rata share. In addition, the Resolution encourages the Trust Governing Board to use every effort to minimize and offset the Trust's administrative costs, including by using contracted staff, partnerships with other like-minded entities for an office site or other administration functions, and by actively seeking bond or other non -General Fund sources to offset these administrative costs; and the Resolution directs City staff to report back to the Council within one year with a determination of whether the Trust has appropriately minimized its administrative costs in the manner suggested by this Resolution. Isn't there another Orange County Housing Trust? Yes. The Orange County Housing Trust (OCHT) is an existing but older Trust that was recently re -energized by the Orange County Business Council (OCBC). The OCHT is governed by private sector individuals, and primarily intended to receive private donations. The OC Housing Finance Trust, alternatively, is oriented towards public dollars but can accept private donations, too. Because AB 448 directed that all governing board members of the OC Housing Finance Trust be elected officials, some in the private sector saw that as a downside, and wanted to focus on their own Trust vehicle. OCBC representatives have said that the two trusts will and should work together closely to fund projects. 55C-4