HomeMy WebLinkAboutAGENDA REPORT 2020 0304 REG CCSA ITEM 10CCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of March 4, 2020
ACTION Approved Staff Recommendation,
Including Adoption of Resolution No. 2020-
3891.
BY B.Garza.
C. Consider Request from Housing Trust Fund Ventura County for $100,000
Contribution and Resolution Amending Fiscal Year 2019/20 Budget to Allocate
$50,000 from the City Affordable Housing Fund (2121) for First Installment of
Contribution. Staff Recommendation: 1) Authorize contribution of $100,000 to
Housing Trust Fund Ventura County with the first installment to be paid in Fiscal
Year 2019/20 and the second installment to be paid in Fiscal Year 2020/21; and
2) Adopt Resolution No. 2020-3891, amending the Fiscal Year 2019/20 Budget
to allocate funding for the first $50,000 contribution. (ROLL CALL VOTE
REQUIRED) (Staff: Jessica Sandifer)
Item: 10.C.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Jessica Sandifer, Community Services Manager
DATE: 03/04/2020 Regular Meeting
SUBJECT: Consider Request from Housing Trust Fund Ventura County for
$100,000 Contribution and Resolution Amending Fiscal Year 2019/20
Budget to Allocate $50,000 from the City Affordable Housing Fund
(2121) for First Installment of Contribution
BACKGROUND
Ten years ago, Housing Trust Fund Ventura County (HTFVC) (formerly Ventura County
Housing Trust Fund) began to fulfill their mission: To support more housing choices, by
generating and leveraging financial resources, working in partnership with the public,
private, and non-profit sectors throughout Ventura County. During this time of limited
resources, Housing Trust Funds are able to attract capital from sources not traditionally
dedicated to housing. They leverage these funds by combining private resources and
investments with foundation and public agency funds to build a revolving loan fund
dedicated to expanding affordable and workforce housing. Housing Trust Fund loans
are often made early in the development cycle, before traditional funds are available,
providing the financial support and credibility to attract other conventional means of
financing. But Housing Trust Funds have the flexibility to lend their funds at whatever
stage of the development project is needed.
In 2012, the City Council approved a contribution to HTFVC in the amount of $50,000
from the City Affordable Housing Fund (2121). These funds were the beginning of the
HTFVC’s revolving loan fund. Since the revolving loan fund began, HTFVC loans have
been leveraged to create 365 units of housing, including the 24 unit Walnut Street
Apartments project developed by the Area Housing Authority across the street from City
Hall. For that project, HTFVC made three loans to the project totaling $1.6 million
dollars.
DISCUSSION
Almost all developments require financing. In this time of limited funding sources, being
able to leverage financing is key to being able to build affordable housing. HTFVC is
Item: 10.C.
65
Honorable City Council
03/04/2020 Regular Meeting
Page 2
filling a gap by providing below market interest rate loans to affordable housing
developers using funds not traditionally used to build affordable housing. HTFVC
lending is a critical piece of affordable housing production in Ventura County.
Currently, HTFVC is in the middle of a fundraising campaign to bring $10 million dollars
of Proposition 1 funding. Proposition 1 was approved by voters in 2018 to provide
funding for affordable housing. Proposition 1 provides matching grant funds, up to
$10 million dollars. In order to get the full $10 million, HTFVC has set a goal to raise
$10 million dollars of matching funds. In order to assist with meeting this goal, HTFVC
is requesting another contribution from the City of Moorpark for the trust fund. Staff is
recommending a contribution of $100,000 be approved. Staff is recommending paying
the contribution in two installments of $50,000 from Fiscal Year 2019/20 and Fiscal Year
2020/21.
FISCAL IMPACT
Funds have not been budgeted for the first installment contribution of $50,000. A
budget amendment of $50,000 from the City Affordable Housing Fund (2121) is needed.
The second $50,000 contribution will be budgeted in the Fiscal Year 2020/21 budget for
disbursement in the first quarter of the next Fiscal Year.
The City’s Projected Affordable Housing Fund (2121) balance at June 30, 2020 is
$3.2 million dollars. Sufficient fund balance exists to allocate the funding for the
contribution to HTFVC.
COUNCIL GOAL COMPLIANCE
While no specific objective for this action exists, this action is consistent with City
Council Strategy 5, Goal 1, “Facilitate development of housing options for all income
levels.”
STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED)
Authorize contribution of $100,000 to Housing Trust Fund Ventura County with the first
installment to be paid in Fiscal Year 2019/20 and the second installment to be paid in
Fiscal Year 2020/21; and Adopt Resolution No. 2020-____, amending the Fiscal Year
2019/20 Budget to allocate funding for the first $50,000 contribution.
Attachment 1: Draft Resolution No. 2020-____
Attachment 2: Request Letter from Housing Trust Fund Ventura County
66
ATTACHMENT 1
RESOLUTION NO. 2020-_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR
2019/20 BUDGET BY APPROPRIATING $50,000 FROM THE
CITY AFFORDABLE HOUSING FUND (2121) FOR
CONTRIBUTION TO HOUSING TRUST FUND VENTURA
COUNTY
WHEREAS, on June 19, 2019, the City Council adopted the Operating and
Capital Improvement Projects budget for fiscal year (FY) 2019/20; and
WHEREAS, a staff report has been presented to the City Council requesting
approval of a contribution to Housing Trust Fund Ventura County (HTFVC) in the
amount of $100,000, with the first $50,000 installment to be paid in FY 2019/20 and the
second $50,000 installment to be paid in FY 2020/21; and
WHEREAS, a budget amendment of $50,000 from the City Affordable Housing
Fund (2121) is needed for the first $50,000 contribution; and
WHEREAS, Exhibit “A”, attached hereto and made a part hereof, describes said
budget amendment and the resultant impact to the budget line item.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The total contribution of $100,000 to the Housing Trust Fund
Ventura County with the first $50,000 installment to be paid in FY 2019/20 and the
second $50,000 installment to be paid in FY 2020/21 is hereby approved.
SECTION 2. A budget amendment in the amount of $50,000 from, the City
Affordable Housing Fund (2121), as more particularly described in Exhibit “A”, attached
hereto, is hereby approved.
SECTION 3. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 4th day of March, 2020.
_____________________________
Janice S. Parvin, Mayor
ATTEST:
___________________________________
Ky Spangler, City Clerk
Exhibit A – Budget Amendment
67
Resolution No. 2020-_____
Page 2
FUND BALANCE ALLOCATION:
Fund-Account Number Amount
2121-000-00000-33990 50,000.00$
Total 50,000.00$
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
2121-422-00000-56990 -$ 50,000.00$ 50,000.00$
-$ -$
-$ -$
-$ -$ -$
Total -$ 50,000.00$ 50,000.00$
CITY AFFORDABLE HOUSING FUND
EXHIBIT A
BUDGET AMENDMENT FOR
CITY AFFORDABLE HOUSING FUND
FY 2019/20
Fund Title
FIRST INSTALLMENT OF HOUSING TRUST FUND CONTRIBUTION
68
BOARD OFFICERS
Chair
Jennie A. Buckingham
City of San Buenaventura
Vice Chair
Alex Russell
Many Mansions
Treasurer
Marni Brook
Women’s Economic Ventures
Secretary
Tracy McAulay
County of Ventura
Chair Emeritus
Dawn Dyer
Dyer Sheehan Group, Inc.
BOARD OF DIRECTORS
Stephen Boggs
The Boggs Group, LLC
Karen Flock
Housing Authority of the
City of San Buenaventura
John Fowler
Peoples’ Self‐Help Housing Corp
Sal Gonzalez
Retired, City of Oxnard Housing
Director
Mary Ann Krause, AICP
Urban Planner
Anthony Mireles
Laborers Int’l Union Local 585
David Moe
City of Camarillo
Sean Morreale
Pacific Western Bank
Cathi Nye
V.C. Office of Education
Lynn Oshita
City of Thousand Oaks
Stratis Perros
City of Simi Valley
Mark Pettit
Lauterbach & Associates
Architects
Greg Regier, Esq.
Jackson Tidus, A Law
Corporation
Donna Sepulveda‐Weber
Stewart Title of California
CHIEF EXECUTIVE OFFICER
Linda Braunschweiger
February 18, 2020
Troy Brown
City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93030
Dear Troy,
Thank you again for meeting with John Fowler and I a few months ago. We
appreciated your time.
As discussed, this is a very excited time of growth and impact at the Housing
Trust Fund. Since our inception in 2012, the Housing Trust Fund VC (HTFVC)
has raised over $6.3M, lent $9.1M to affordable housing developments, and
produced 365 new units of workforce affordable housing. HTFVC provides
short term, below market interest rate loans to developers (nonprofit and for
profit) producing new affordable housing through our “Revolving Loan
Fund”.
At this time, we are asking all the cities in VC and the County to reinvest in
this valuable loan fund. With the passage of Proposition 1, Veterans and
Affordable Housing Bond Act of 2018, all Local Housing Trust Fund dollars
raised will be matched up to $25M ($5M a year for five years starting in
2020). We would be honored to partner again with the City of Moorpark
through a $100,000 investment by the City into the Housing Trust Fund.
HTFVC is an independent 501(c)(3) non‐profit and a State and Federal
certified Community Development Financial Institution. Our mission is to
support more housing choices, by generating and leveraging financial
resources, working in partnership with the public, private, and non‐profit
sectors throughout Ventura County providing below market interest rate
funding. HTFVC places a priority on funding housing targeted toward
extremely low and low income, Farmworkers, Homeless, Veterans, and Youth
transitioning from Foster Care.
The City of Moorpark is one of the best examples of how HTFVC leverages
funds. HTFVC loaned $1,625,000 (in three loans) of its original $4m loan pool
(including Moorpark’s $50,000 investment), at a below market interest rate
ATTACHMENT 2
69
Page 2
Troy Brown Letter
to the Area Housing Authority of Ventura County and its partner Many Mansions for the
Walnut Street Apartments in Moorpark. These funds helped the developers to leverage
millions in development funding to produce 24 units for low to extremely low income
residents in Moorpark.
Our loan product is short term 2‐5 year revolving loans for pre‐development, construction and
gap/bridge funding. However, HTFVC’s Board of Directors recognized the extreme need for
the Walnut project to receive a 16 year construction to mini perm loan (considered local
money) for $250,000 in order to give the developer the needed tie‐breaker points to receive
tax credits. That loan paid off early in 2019. One of the strengths of the housing trust fund
model it our ability to be flexible and address the special needs of our developers to make a
deal successful. The Walnut project is a prime example of this flexibility. HTFVC provided
Walnut a $500,000 predevelopment loan in 2016 which was repaid during the construction
funding phase. Walnut also received a construction loan for $875,000.
Over the last few years, our County has seen significant rent increases and real estate prices
have returned to top dollar. Over the last ten years, we have watched the demise of RDA
funds, State and Federal affordable housing dollars significantly cut, and other grants sources
dry up. Finally in 2019, we started to see a turn‐around in new funding sources from the State.
Through Proposition 1 Local Housing Trust Funds, like HTFVC, can bring up to $25M in
matching funds for new affordable developments back to Ventura County starting in late 2020.
Since February 2019, we have seen our pipeline explode generating $4.2M in loans in 2019
alone which will generate 155 new units. This year, we expect to apply for the first $5M Prop.
1 match when the NOFA is announce this summer. At this moment, we have raised $3.5M
towards the match and are negotiating with investors for another $2M. The City of Ventura,
City of Simi Valley, and the City of Camarillo have reinvested in the Fund for a second and third
time.
The Housing Trust Fund model is unique for the very reason that it is able to leverage funds
from investors not traditionally funding affordable housing (example: Mechanics Bank
(formerly RaboBank) $250,000 EQ2 Investment, Pacific Western Bank $1M, City National Bank
$1M, Montecito Bank $550,000, and McCune Foundation $250,000 investments). In addition,
as loans are repaid (such as the projects listed below) funds are recycled back out into the
community to develop more affordable housing units.
As HTFVC moves into the next phase of growth, while continuing to fill the critical need for
dollars for the development and preservation of affordable housing, we need the City of
Moorpark’s help. We ask the City of Moorpark continue to show leadership and foresight by
making an investment of $100,000 into the Housing Trust Fund. This investment will be
leveraged to highly impact positive change for low income individuals and families.
70
Page 3
Troy Brown Letter
Please feel free to contact me with any questions. I would be happy to make a formal
presentation to the City Council and be available for questions when the request goes on the
Council agenda. As we discussed, to receive the Proposition 1 match in the first round all we
need at this time is a commitment of funding. The timing of disbursement from the City can
be discussed.
Regards,
Linda Braunschweiger
Linda Braunschweiger
CEO
805‐407‐2455
Linda@HousingTrustFundVC.org
71