The OCHFT is a Joint Powers Authority that shares among city members and the County of Orange the power to secure and allocate funding for affordable housing projects and programs, more specifically as it relates to housing that addresses persons formerly homeless. 

OCHFT emphasizes funding for supportive housing, which is housing for persons that may require additional on-site or other local services to remain in housing.  These services may include social services, mental health services, health care, counseling, and life and budget planning. 

The attached Resolution would allow the City to participate in OCHFT.  The City’s participation means that the City agrees to share the ability to secure and allocate funding for affordable housing projects and programs, especially supportive housing, with other members of the Joint Powers Agreement.  Recent actions by the voters and at the State level have led to several billions of dollars becoming available for projects to create housing.

OCHFT is envisioned to provide a stronger voice for the Orange County region to secure the region’s share of State and other funds (including private grants) to help address longer-term housing for persons formerly homeless.  Public funds include Proposition 1 funds, SB 2 funds, and community development block grant funds.   

The funding available through OCHFT will serve as gap financing and will be made available through an application filed jointly by the developer and the partnering city.  OCHFT will not build projects itself, own projects, manage projects, or place projects in cities which did not apply for them.  OCHFT cannot require member cities to take a share of any allocation of supportive housing units, nor to come to the table with funds to allocate. OCHFT governing board will determine whether a project application is worthy of funding from the Trust. 

The JPA sets forth the powers to fund affordable and supportive housing projects that the member cities and County would share.  It sets forth the Governing Board as follows:

•  Four representatives from the County of Orange, all elected officials (including two members of the Board of Supervisors) and placed on the Trust Governing Board by the Orange County Board of Supervisors.

 Five representatives from cities, as follows:

•  One city council member for the city member with the greatest population in the North Service Planning Area (SPA).
•  One city council member for the city member with the greatest population in the Central SPA.
•  One city council member for the city member with the greatest population in the South SPA.
•  Two city council members who are each selected from member cities, which are not already represented on the Board of Directors.
•  An ex officio advisory board to the Governing Board is envisioned, including representation from city managers, housing authorities, the County CEO, law enforcement, and the public.

The selection of the city representatives shall be made by the City Selection Committee.  Cities who are members of OCHFT are eligible to be members of the Board.  Any Orange County city is eligible to be a member of OCHFT.

The JPA document also expresses that:

•  OCHFT can have staff level assistance, but such assistance shall come from contractors.
•  Members of OCHFT can leave at any time.
•  Members of OCHFT cannot have, as a condition of membership, a requirement to provide any number of housing units;
•  OCHFT shall have an annual report to maximize transparency; and
•  OCHFT cannot issue debt.  If at a later date the OCHFT governing board wishes to pursue debt, a recirculation and amendment of the JPA document is required.
  
  

The draft bylaws (Attachment No. 3) were developed by a working group comprised of elected officials, County representatives, city management representatives and retired City Managers.  The draft bylaws will be adopted by OCHFT once the board is seated. Attached to this report is a letter from First District Supervisor Andrew Do further explaining the OCHFT and encouraging the City of Garden Grove to join the Trust (Attachment No. 4).  In May 2018, the City Council adopted a related resolution authorizing staff to participate in the Association of California Cities -Orange County's planning efforts regarding county-wide supportive housing.

Initially, there is no financial impact.  The County of Orange will provide a year’s worth of start-up staffing costs for the administration of OCHFT. The OCHFT Board may, in a future year, ask for the City’s pro-rata share of any OCHFT administrative costs should State, County, or other funds not cover those costs. It is anticipated that the City’s share, if any, of those administrative costs will not exceed $15,000 in any year.

As the Trust becomes operational, there is a likelihood that the City or City-supported affordable housing projects will receive funding from the OCHFT. 

It is recommended that the City Council:

• Adopt the Resolution authorizing the City’s membership in the Orange County Housing Finance Trust, as described by the attached Joint Powers Agreement; and

• Authorize the Mayor to execute the Joint Powers Agreement.