Loading...
HomeMy WebLinkAboutAGENDA REPORT 2025 0604 CC REG ITEM 09CCITY OF MOORPARK, CALIFORNIA City Council Meeting of June 4, 2025 ACTION APPROVED STAFF RECOMMENDATION, INCLUDING ADOPTION OF RESOLUTION NO. 2025- 4321. (ROLL CALL VOTE: 4-0, COUNCILMEMBER MEANS ABSENT) BY A. Hurtado. C. Receive a Presentation from the Housing Trust Fund Ventura County and Consider Request for Contribution and an Associated Resolution Amending the Fiscal Year 2024/25 Budget to Allocate $200,000 from the City Affordable Housing Fund (2121). Staff Recommendation: Authorize a one-time $200,000 financial contribution to the Housing Trust Fund Ventura County for Fiscal Year 2024/25 and adopt a resolution amending the Fiscal Year 2024/25 budget to appropriate $200,000 from the City Affordable Housing Fund (2121) for contribution to the Housing Trust Fund Ventura County. (Staff: April Rosser, Management Analyst - Housing) (ROLL CALL VOTE REQUIRED) Item: 9.C. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Doug Spondello, Community Development Director BY: April Rosser, Housing Management Analyst DATE: 06/04/2025 Regular Meeting SUBJECT: Receive a Presentation from the Housing Trust Fund Ventura County and Consider Request for Contribution and an Associated Resolution Amending the Fiscal Year 2024/25 Budget to Allocate $200,000 from the City Affordable Housing Fund (2121) BACKGROUND The Housing Trust Fund Ventura County (HTFVC), formerly the Ventura County Housing Trust Fund, was established to support affordable housing development. During times of limited resources, housing trust funds can attract capital from non-traditional housing sources. By leveraging private investments alongside foundation and public agency funds, they create a revolving loan fund dedicated to expanding affordable and workforce housing. Housing trust fund loans are often issued early in the development cycle, before traditional financing is available, providing both financial support and credibility to attract other conventional funding. These funds offer flexibility, allowing loans to be issued at any stage of a project's development as needed and to address gaps in traditional funding cycles. These loans also generate interest, which in turn helps grow the fund and expand the fund’s ability to produce additional affordable housing. With the City Council’s ongoing consideration of contributions to HTFVC, the following is a summary of key actions and funding decisions made over the years: • On July 6, 2011, the City Council approved a $50,000 contribution to HTFVC from the City Affordable Housing Fund (2121), to be disbursed over five years, marking the beginning of HTFVC’s revolving loan fund. Subsequently, on December 7, 2011, the City Council approved a revised operational request and authorized the $50,000 contribution to be paid in two annual installments. On February 1, 2012, Item: 9.C. 173 Honorable City Council 06/04/2025 Regular Meeting Page 2 the Council authorized a budget amendment to allocate $25,000 for Fiscal Year 2011/12 and $25,000 for Fiscal Year 2012/13. • On February 18, 2015, the City Council received a presentation and funding request from HTFVC in the amount of $25,000; the request was not approved. • A subsequent request for $100,000 was presented on July 19, 2017, to the City Council, the request was not approved. • On March 4, 2020, the City Council approved a $100,000 contribution to HTFVC, to be distributed in two $50,000 installments from Fiscal Years 2019/20 and 2020/21. Since its inception, HTFVC loans have helped create 1,829 housing units throughout Ventura County, including the Walnut Street Apartments developed by the Area Housing Authority. For that project, HTFVC provided three loans totaling $1.6 million. The development known as Walnut Canyon Apartments includes 24 affordable units and is located at the corner of Walnut and Everett Streets in Moorpark. DISCUSSION Nearly all developments require financing, and with limited funding sources, leveraging financing is an important factor in building affordable housing. HTFVC provides below- market interest rate loans to affordable housing developers, utilizing funds not traditionally allocated for housing development. Since its inception in 2011, HTFVC has raised over $50 million and has provided $47.8 million in loans for affordable housing developments. In 2024, HTFVC funded $14 million in predevelopment and construction loans. Looking ahead, new developments are in progress, with an estimated $17 million in loans projected for the first half of 2025. Beginning in 2025, HTFVC plans to introduce a 15– 16 year Receipts Residual Loan designed to help developers earn critical Low-Income Housing Tax Credit (LIHTC) bonus points. A $5 million REAP 2.0 grant has been secured to initiate the program from the State Department of Housing and Community Development (HCD). Due to ongoing uncertainty in federal and state funding, identifying local solutions has become increasingly important to support the development of affordable housing. The City of Moorpark is being asked to consider a one-time investment of $200,000 into the Housing Trust Fund Ventura County for Fiscal Year 2024/25. This funding would be leveraged through HTFVC’s existing regional programs to support housing initiatives for low-income individuals and families (see Attachment 2). This proposed contribution aligns with the City’s 2021–2029 Housing Element goal (Program 6) of evaluating the feasibility of establishing a local housing trust fund. Rather than creating and administering a city-specific trust fund (which could require significant staffing, operational resources, and expertise), participating in the established and regionally coordinated HTFVC may offer a more efficient means of achieving that goal. By leveraging HTFVC’s infrastructure, experience, and access to broader funding 174 Honorable City Council 06/04/2025 Regular Meeting Page 3 sources, the City can effectively support affordable housing development while maximizing the return on its local investment. The full description of Program 6 is included below: ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT At present, funding for this request has not been included in the FY 2024/25 Budget. The City’s available fund balance set aside for Affordable Housing (Fund 2121) as of April 30, 2025, is $3,438,629. Therefore, sufficient funds exists to allocate an aggregate amount of $200,000 from Fiscal Year 2024/25 for contribution to the HTFVC and this use aligns with the purpose of Fund 2121. COUNCIL GOAL COMPLIANCE This action supports Goal 1, Objective 1.4 Housing Trust Fund Development in that it provides funding to promote the development of affordable housing within Ventura County, including the City of Moorpark. 175 Honorable City Council 06/04/2025 Regular Meeting Page 4 STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Authorize a one-time $200,000 financial contribution to the Housing Trust Fund Ventura County for Fiscal Year 2024/25 and adopt a resolution amending the Fiscal Year 2024/25 budget to appropriate $200,000 from the City Affordable Housing Fund (2121) for contribution to the Housing Trust Fund Ventura County. Attachment 1: Draft Resolution No. 2025-___ Attachment 2: HTFVC Request for Contribution 176 ATTACHMENT 1 RESOLUTION NO. 2025-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2024/25 BUDGET TO APPROPRIATE $200,000 FROM THE CITY AFFORDABLE HOUSING FUND (2121) FOR CONTRIBUTION TO THE HOUSING TRUST FUND VENTURA COUNTY WHEREAS, on June 19, 2024, the City Council adopted the Operating and Capital Improvement Projects budget for fiscal year (FY) 2024/25; and WHEREAS, the 2021-2029 Certified General Plan Housing Element included Program 6: Affordable Housing Trust Fund to establish the feasibility of establishing a local housing trust fund to help address the gaps in funding; 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 $200,000, to be paid in FY 2024/25; and WHEREAS, a budget amendment of $200,000 from the City Affordable Housing Fund (2121) is needed for the FY 2024/25 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 $200,000 to the Housing Trust Fund Ventura County to be paid in FY 2024/25 is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 4th day of June, 2025. ________________________________ Chris R. Enegren, Mayor ATTEST: ___________________________________ Ky Spangler, City Clerk Exhibit A: Budget Amendment 177 FUND BALANCE ALLOCATION: Fund Title Unassigned Fund Bal Revision Amended Balance CITY AFFORDABLE HOUSING FUND 3,438,629.00$ (200,000.00)$ 3,238,629.00$ Total 3,438,629.00$ (200,000.00)$ 3,238,629.00$ EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2121-422-00000-56990 1,500.00$ 200,000.00$ 201,500.00$ -$ -$ -$ -$ -$ -$ Total 1,500.00$ 200,000.00$ 201,500.00$ EXHIBIT A BUDGET AMENDMENT FOR CITY AFFORDABLE HOUSING FUND CONTRIBUTION FY 2024/2025 TO HOUSING TRUST FUND VENTURA COUNTY 178 BOARD OFFICERS Chair Ken Trigueiro People’s Self-Help Housing Corp. Vice Chair Elenore Vaughn Housing Authority of the City of Santa Paula Treasurer Karen Flock Housing Authority of the City of San Buenaventura Secretary Derrick Wada Cabrillo Economic Development Corporation Former Chair Tracy McAulay County of Ventura Chair -Housing Land Trust Ventura County Alex Russell Homes & Hope Chair Emeritus Dawn Dyer Dyer Sheehan Group, Inc. Advisor Mary Ann Krause, AICP Urban Planner BOARD OF DIRECTORS Elsa Brown City of Oxnard Maruja Clensay City of San Buenaventura Garry Collett California Commercial Investment Group Angel Garcia County of Ventura Sarah McCarthy-Garcia McCarthy Companies Anthony Mireles Laborers Int’l Union Local 585 Sean Morreale Bank Executive Cathi Nye V.C. Office of Education Lynn Oshita City of Thousand Oaks Stratis Perros City of Simi Valley Mark Pettit Lauterbach & Associates Architects CHIEF EXECUTIVE OFFICER Linda Braunschweiger January 22, 2025 Troy Brown City Manager City of Moorpark 799 Moorpark Avenue Moorpark, CA 93030 Dear Troy, I hope this finds you well and safe. Today I am reaching out to all ten cities and the County on behalf of the Housing Trust Fund Ventura County (HTFVC), with an urgent regional need for lending capital for the development of affordable housing. We ask that the City of Moorpark consider reinvesting in the HTF Revolving Loan Fund with a commitment of $200,000 for (FY24/25). Previously, the City of Moorpark invested $50,000 in 2012 and then a $100,000 investment spread over FY19/20 and FY20/21 fiscal years. The lack of affordable housing has become a significant challenge for our communities, impacting diverse groups, from young families to seniors. We believe that addressing this issue requires a collaborative effort, involving both public and private sectors, on a countywide basis. After many years of very little development in CA, particularly affordable housing development, in 2024 HTFVC had a record year funding $14M in predevelopment and construction loans. Our pipeline for the first six months of 2025 is approximately $17M. New developments are finally moving forward. However, due to uncertain funding for affordable housing at the Federal and State levels it is critical that we find ways to fund more units here at the local level. Sadly, for far too many in our community today, homes are not a clean, safe or affordable place to gather. HTFVC is an independent 501(c)(3) non-profit, and a State and Federal certified Community Development Financial Institution, with the goal to change this dynamic. Our mission is to support more housing choices, by generating and leveraging financial resources, working in partnership with public (with investments made by ATTACHMENT 2 179 all ten cities and the County), private, and charitable investments 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, Seniors, and youth transitioning from Foster Care. Funds can also be used for residents earning up to 120% of AMI. In 2023, Ventura County was the number one county in the U.S. with the least number of available affordable units based on a survey done by the National Realtors Association. Affordable housing is a countywide problem needing a countywide solution. Since our inception in 2011, HTFVC has raised over $45M, lent $41M to affordable housing developments, and produced 1829 new units of workforce affordable housing countywide. The key to our success is our ability to leverage public, private and charitable funds, increasing our lending capital significantly. HTFVC provides short term, below market interest rate loans to developers (nonprofit and for profit) producing new affordable housing through our “Revolving Loan Fund”. Our loan products’ terms range from 6 months to 5 years for pre-development, acquisition, construction, and gap/bridge funding. Beginning in 2025, HTFVC will be offering a new 15-16 year Receipts Residual loan to help developers earn the critical LIHTC bonus points. HTFVC received a $5M REAP II grant to begin funding this program. One of the strengths of the housing trust fund model it our ability to be flexible and address the special needs of our community and the developers to make a deal successful. Since 2020, developers have seen double and tripling of their construction budgets with significant interest rate and insurance cost escalation. HTFVC has been able to assist with short term bridge loans until permanent financing ensuring the development is able to open its doors. 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 $1.5M Equity (EQ2) Investment, Weingart Foundation $1.5M Program Related Investment (PRI), City National Bank $1M, Mission Bank $1M, Montecito Bank $1M, US Bank $500,000,and McCune Foundation $250,000 investments). In addition, as loans are repaid funds are recycled back 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 to continue showing leadership and foresight by making an 180 investment of $200,000 (2024/25 FY) into the Housing Trust Fund. This investment will be leveraged to highly impact positive changes for low income individuals and families. 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. Regards, Linda Braunschweiger Linda Braunschweiger CEO 805-407-2455 Linda@HousingTrustFundVC.org Cc: Doug Spondello 181