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HomeMy WebLinkAbout2026-05-12 - AGENDA REPORTS - MOU LACO AFFORDABLE HOUSING SOLUTIONS AGENCY SECTOR REPRESENTATIVEO Agenda Item: 8 CITY OF SANTA CLARITA .` AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: May 12, 2026 SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE LOS ANGELES COUNTY AFFORDABLE HOUSING SOLUTIONS AGENCY FOR SUPPORT OF SECTOR REPRESENTATIVE DEPARTMENT: City Manager's Office PRESENTER: Masis Hagobian RECOMMENDED ACTION City Council: 1. Authorize City Manager or designee to execute a Memorandum of Understanding with the Los Angeles County Affordable Housing Solutions Agency for the use of sector representative support funds, subject to approval of any further minor modifications by the City Manager and City Attorney. 2. Appropriate grant funding from Measure A LACAHSA Sector Support to Miscellaneous Revenue Account 277-462101 in the amount of $75,000 and appropriate the same amount to Expenditure Account 2773209-500201 for Fiscal Year 2025-26, $155,000 for Fiscal Year 2026-27, and $160,000 to Fiscal Year 2027-28. BACKGROUND The Los Angeles County Affordable Housing Solutions Agency (LACAHSA) was established through Senate Bill (SB) 679 (Chapter 557, Statutes of 2024) as a regional entity responsible for administering voter -approved funding to support affordable housing solutions throughout Los Angeles County (County). Funding for LACAHSA is provided through Measure A, a permanent one-half cent countywide sales tax approved by County voters in November 2024. Measure A revenues are intended to support the production and preservation of affordable housing, renter protections, and homelessness prevention efforts across the County. Of the 21 members serving on the LACAHSA Board of Directors, four are sector Page 1 Packet Pg. 95 O representatives, each representing a subregion of Los Angeles County. As a member of the LACAHSA Board of Directors, Councilmember Gibbs serves as the North Sector representative. In an effort to establish administrative support and intergovernmental coordination for the sector representatives, the LACAHSA Board of Directors approved grant funding of $75,000 for the remainder of Fiscal Year 2025-26, $155,000 for Fiscal Year 2026-27, and $160,000 for Fiscal Year 2027-28 to each sector. Prior to receiving any funding, the City of Santa Clarita (City) is required to execute a Memorandum of Understanding (MOU) with LACAHSA. The MOU is a binding commitment of the City to comply with all requirements of SB 679 and Measure A in the use of the funding and to comply with all policies and guidelines of LACAHSA. If approved, the MOU will remain in effect until June 30, 2026, unless earlier terminated or extended by written mutual agreement between the City and LACAHSA. Subsequent renewal terms will be on the same terms and conditions provided in the attached MOU, except that payment provided under this MOU shall be automatically updated to reflect the allocations set forth in the Annual Expenditure and Strategy Plan adopted by the LACAHSA Board of Directors. After the MOU is fully executed, the City will use the funding towards administrative support and sector coordination conducted by City staff. ALTERNATIVE ACTION Other action, as directed by the City Council. FISCAL IMPACT Upon approval of the recommended actions, revenue account Measure A LACAHSA Miscellaneous Revenue (277-462101) and expenditure account LACAHSA Contractual Services (2773209-516101) will be increased by $75,000 each starting in Fiscal Year 2025-26, $155,000 in Fiscal Year 2026-27, and $160,000 in Fiscal Year 2027-28. ATTACHMENTS LACAHSA Sector Support Grant Funding MOU (available in the City Clerk's Reading File) Page 2 Packet Pg. 96 SECTOR REPRESENTATIVE AND ELIGIBLE JURISDICTION CAPACITY SUPPORT PROGRAM MEMORANDUM OF UNDERSTANDING NORTH SECTOR This Sector Representative and Eligible Jurisdiction Capacity Support Program Memorandum of Understanding ("MOU"), effective April 1, 2026 ("Effective Date"), is between the Los Angeles County Affordable Housing Solutions Agency, a special act agency established pursuant to Government Code section 64710 and operating pursuant to the Los Angeles County Regional Housing Finance Act, Government Code section 64700 et seq. ("Agency"), and the City of Santa Clarita, a general law city ("Santa Clarita"), each individually a "Party" and collectively the "Parties." RECITALS This MOU is made with reference to the following facts: A. hi September 2022, Governor Newsom signed Senate Bill 679, known as the Los Angeles County Regional Housing Finance Act ("Act"). The Act created Agency to increase the supply of affordable housing by providing enhanced funding and technical assistance for renter protections, affordable housing preservation, and new affordable housing production. B. In November 2024, Los Angeles County voters approved "Measure A," known as the Affordable Housing, Homelessness Solutions, and Prevention Now Transactions and Use Tax Ordinance. Measure A established a one-half percent sales tax on every dollar of goods sold in Los Angeles County to provide dedicated funding for various purposes, including reducing and preventing homelessness and increasing the supply of affordable housing. Measure A directs the disbursement of proceeds generated to the Agency, and further directs the Agency's use of the Measure A funds. C. Measure A directs the Los Angeles County Auditor -Controller ("County Auditor - Controller") to disburse 35.75% of the proceeds generated to Agency for use in accordance with the Act's and Measure A's requirements through fiscal year 2029-2030 (and thereafter, such percentage may be modified by the Los Angeles County Board of Supervisors every five years, except that such percentage may not be less than 33.33%). These include, among other things, that: Agency use 60% of its Measure A funds for affordable housing production, preservation, and ownership ("PPO") (Gov. Code, § 64830(d)(1); Measure A, § 29(B)); that Agency use 5% of its Measure A funds for technical assistance, research, and policy development ("Technical Assistance") (Gov. Code, § 64830(d)(4)); and that Agency use 30% of its Measure A funds for Renter Protection and Homelessness Prevention ("RPHP") (Gov. Code, § 64830(d)(2)). D. The Act requires Agency's Board to adopt an Annual Expenditure and Strategy Plan, which must set forth the share of revenue and estimated funding to be spent on each of the above - stated categories ("Annual Expenditure and Strategy Plan"). Agency's Board adopted the first Annual Expenditure and Strategy Plan on June 25, 2025 (and it is anticipated that the Board will adopt subsequent Annual Expenditure and Strategy Plans on an annual basis). The 1 Annual Expenditure and Strategy Plan establish the proportional amount of revenues and estimated funding that Agency will distribute to each Eligible Jurisdiction for each funding category. E. The Agency's Board includes a member appointed to represent the North Sector ("Representative"). The Representative requires assistance with his or her duties as a member of the Agency Board, and the Agency acknowledges the need for the Representative to have professional assistance to provide support in the performance of his or her duties as a Board member and liaison to the North Sector, which includes multiple Eligible Jurisdictions in his or her sector area. F. The Parties desire that the City of Santa Clarita, subject to the approval of the Representative, employ or contract with a professional service provider or providers ("Liaison") for provision of services to aid the Representative and Eligible Jurisdictions in his or her sector area ("Services"), and that Agency provide reimbursement of such services via the provision of Technical Assistance funds pursuant to the terms of this MOU. TERMS AND CONDITIONS The Parties agree as follows: 1. Incorporation. The Parties agree that the Recitals above constitute the factual basis upon which Agency and City of Santa Clarita have entered into this MOU. Agency and City of Santa Clarita each acknowledge the accuracy of the Recitals and hereby agree to the incorporation of the Recitals into this MOU as though fully set forth herein. 2. Contract between City of Santa Clarita and Liaison. The contract(s) between the City of Santa Clarita and Liaison(s) for Services shall be referred to herein as the "Contract". The Parties acknowledge that the City of Santa Clarita intends to contract with multiple Liaisons for the Services; each contract shall be subject to the terms of this Agreement. The Liaison(s) shall be a contractor or employee of the City of Santa Clarita and shall not under any circumstances be deemed an employee of Agency. 3. City of Santa Clarita Liaison Term Extension. The term of this MOU is from January 1, 2026, through June 30, 2026, unless earlier terminated or extended by written mutual agreement of the Parties. The term of this MOU may be extended for an additional six-month term based on the availability of funding provided through the annual appropriation process of the Agency's Board. Any renewal terms shall be on the same terms and conditions provided herein, except that payment provided under this MOU shall be automatically updated to reflect the allocations set forth in the Annual Expenditure and Strategy Plan adopted by the Board for the 2026-2027 fiscal year. 4. Payment. 4.1 Agency shall reimburse City of Santa Clarita in an amount equal to the six-month cost of the Contract, plus an administrative fee not to exceed 5% of the actual six-month cost of the Contract. In no event shall the total reimbursement amount, including the administrative fee, exceed $75,000 for the six-month term of Contract or the term of this MOU. The Parties acknowledge that reimbursements shall be provided via Technical Assistance funds, the provision 2 of which are governed by the Act, Measure A, and program policies and guidelines adopted by Agency's Board. 4.2 Agency shall reimburse City of Santa Clarita in six monthly installments, with each installment representing approximately one -sixth of the six-month cost of the Contract. City of Santa Clarita shall provide the Agency a monthly invoice for the reimbursable amount due. Agency shall reimburse City of Santa Clarita the invoiced amount within thirty days of receipt of invoice. Upon City of Santa Clarita's request, Agency shall provide the equivalent of two months of the six-month cost of the Contract as an advance payment to City of Santa Clarita. Thereafter, Agency shall make four monthly installments for the remainder of the reimbursement within thirty days of receipt of each monthly invoice. 5. Agency Obligations; Accommodations. 5.1 Should the City of Santa Clarita decide to contract with a consultant as the Liaison, Agency shall provide the Liaison throughout the term of this MOU with accommodations at Agency's offices to aid in the performance of Liaison's duties to provide support services for (1) the Representative in the performance of his or her duties as a Board member and (2) Eligible Jurisdictions within the City of Santa Clarita. The accommodations shall include a common area with access to an office, telephone, and a computer with Internet access, and any other accommodations to which the Parties mutually agree. 5.2 Should the City of Santa Clarita decide to contract with a consultant as the Liaison, the office space provided by Agency pursuant to Section 5.1 shall not be the primary office of the Consultant. 5.3 Should the City of Santa Clarita decide to contract a consultant as the Liaison, Agency shall provide the Consultant throughout the term of this MOU with the same access to and within the Agency's offices as that enjoyed by staff to the other Board members. Notwithstanding the above, Agency may require Consultant to enter into a separate agreement defining the provision of such office space before providing access to the office space to Liaison. 6. City of Santa Clarita Obligations. 6.1 Use of Funds. City of Santa Clarita shall comply with all of the following requirements related to the use of Technical Assistance funds from the Agency: A. Government Code Section 64830(d)(4). City of Santa Clarita's use of Technical Assistance funds will comply with the requirements of Government Code section 64830(d)(4), attached hereto as Exhibit A and incorporated herein by reference. B. Prohibited Uses. Except as expressly authorized by Government Code section 64710, City of Santa Clarita will not use Technical Assistance funds to perform or undertake any functions related to supports and services provided to people experiencing homelessness. C. Supplemental Capacity for Existing Efforts. City of Santa Clarita's use of Technical Assistance funds shall not supplant, but may complement and supplement existing efforts by cities, counties, districts, and other local, regional and state entities that were in existence as of January 1, 2022. Nothing in this paragraph shall be construed to prohibit use of funds for new efforts. 9 6.2 Consent and Approval of Representative. City of Santa Clarita shall obtain consent from the Representative before entering into the Contract or employing a Liaison for the provision of services to aid the Representative and Eligible Jurisdictions in his or her sector area. Final selection of the Liaison shall be subject to Representative's approval. 6.3 Procurement. Contract shall be subject to the established procurement procedures and processes of City of Santa Clarita. 6.4 Financial Records. City of Santa Clarita shall maintain financial records, supporting documents and agreements, statistical reports, official files, and any other evidence necessary to demonstrate compliance with this MOU. The foregoing shall be maintained on file by City of Santa Clarita for at least five years after the expiration or termination of this MOU and made available to Agency upon request. to: 7. Notice. 7.1 Addresses. Notices and other written communications to the Parties must be sent For Agency: Los Angeles County Affordable Housing Solutions Agency 370 N St. Andrews Place Room B-16 Los Angeles, CA 90012 Attention: Ryan Johnson, Chief Executive Officer Email: ryan.johnson2lacahsa.gov With a copy to: Best Best & Krieger LLP 300 South Grand Ave., 25th Floor Los Angeles, CA 90071 Attention: Michael Maurer and Paula de Sousa Emails: michael.maurerkbbklaw.com or paula.desousakbbklaw.com For Sector: City of Santa Clarita Santa Clarita City Hall 23920 Valencia Blvd. Santa Clarita, CA 91355 Attention: Kenneth W. Striplin, City Manager Email kstriplinksanta-clarita.com With a copy to: Burke, Williams, & Sorensen 444 Flower St, 40th Floor Los Angeles, CA 90071 Attention: Joseph M. Montes Email: jmonteskbwslaw.com rd 7.2 Methods. All notices, consents, requests, demands, and other communications required or permitted under this MOU must be in writing and are conclusively deemed effective: A. On personal delivery; B. On confirmed delivery by courier service; C. On the first business day after transmission if sent by registered electronic mail transmission, with unmodifiable proof of content, delivery, and time of delivery; D. If delivered by non -registered email, when the recipient, by an email sent to the email address for the sender stated in this Section 1616 or by a notice delivered by another method in accordance with this Section 1616 acknowledges having received the sender's email, provided that an automatic "read receipt" does not constitute acknowledgment of an email for purposes of this Section 1616; or E. On the third day after deposit in the United States mail, by certified or registered mail, postage prepaid, addressed to the other Party. 8. Refused or Undeliverable Notice. Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the Party to be notified is deemed effective as of the first date that the notice was refused, unclaimed, or deemed undeliverable by the postal authorities, courier service, or other delivery service (as applicable). 9. Indemnification. City of Santa Clarita agrees to indemnify, defend (with counsel reasonably approved by Agency) and hold harmless Agency and its board members, officials, officers, employees, agents, and volunteers, at City of Santa Clarita's sole expense, from and against any and all claims, actions, losses, damages, liability, and/or legal proceedings brought against Agency, its board members, officials, officers, employees, agents, and volunteers arising out of City of Santa Clarita's performance of, or lack of performance of, any of its obligations under this MOU, including any and all claims, actions, losses, damages, liability, and/or legal proceedings brought by Liaison. 10. Governing Law; Venue. This MOU is governed by the laws of the State of California. Venue lies only in the state and federal courts in Los Angeles County, California. 11. Integrated Agreement. This MOU is the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior written and oral agreements or understandings between the Parties. This MOU cannot be modified except by a written document signed by both Parties. No Party is relying on any other negotiation, discussion, or agreement in connection with the subject matter of this MOU. This is a fully integrated agreement. 12. Independent Representation by Counsel. The Parties represent that in executing this MOU they have relied solely upon their own judgment, belief, and knowledge, and the advice and recommendations of their own independently selected counsel. 13. Capacity to Contract. City of Santa Clarita has the capacity and the authority to fulfill the obligations required of it hereunder and nothing prohibits or restricts the right or ability of City of Santa Clarita to carry out the terms hereof. 9 14. Enforcement Costs. If any action or proceeding is brought by any Party against any other Party to enforce any of the provisions hereof, or to seek damages by reason of any alleged breach of any of the provisions hereof (whether at the trial court level, appellate level, in a bankruptcy, probate or administrative proceeding or otherwise), the prevailing Parry shall be entitled to recover from the other Party its attorney's fees in such amount as the court may adjudge reasonable in such action or proceeding, together with the prevailing Party's other costs and expenses (including, without limit, court costs and other litigation costs and expenses). 15. Assignment. City of Santa Clarita may not assign this MOU without Agency's prior written consent, which may be withheld for any reason. 16. Severability. If any provision of this MOU is held by a court of competent jurisdiction to be invalid, void, or unenforceable and the invalidity or unenforceability of such a provision does not deny a Party the material benefit of this MOU, then the other provisions of this MOU that can be given effect without the invalid provision remain in effect. 17. Headings. This MOU's headings are inserted solely for convenience of reference and are not intended to govern, limit, or aid in the construction of any term or provision hereof. 18. Counterparts; Electronic Signatures. 18.1 This MOU may be signed and delivered in counterparts. 18.2 In addition to any other lawful method of executing this MOU, this MOU may be signed and delivered by each Party either: (i) electronically by facsimile (e.g., scanned image or PDF copy); or (ii) digitally through the use of EchoSign, DocuSign, or such other commercially available digital -signature software that results in verified and confirmed signatures delivered electronically to each Party. 18.3 Each electronic or digital signature of a Party is treated as an original, as if personally signed by that Parry. 19. No Third -Party Beneficiary. There is no intended third -party beneficiary of this MOU. 20. No Waiver. No waiver of a provision of this MOU is valid unless it is made in writing and signed by the Party against whom such waiver is sought to be enforced. A failure to enforce a right hereunder does not constitute a continuing waiver of that right or a waiver of any other right hereunder. No waiver, benefit, privilege, or service that is voluntarily given or performed by a Parry gives the other Parry any contractual right by custom, estoppel, or otherwise. 21. Successors and Representatives. This MOU binds and inures to the benefit of the Parties and their respective heirs, personal representatives, successors, and (where permitted) assignees. IN WITNESS WHEREOF, the Parties have executed this MOU as indicated below [signature on following page] 31 LOS ANGELES COUNTY AFFORDABLE HOUSING SOLUTIONS AGENCY Ryan Johnson Interim Chief Executive Officer APPROVED AS TO FORM: Michael Maurer Paula C. P. de Sousa Co -General Counsels CITY OF SANTA CLARITA Kenneth W. Striplin City Manager APPROVED AS TO FORM: Joseph M. Montes City Attorney EXHIBIT A Government Code Section 64830 64830. (d) Subject to funding eligibility and adjustment pursuant to subdivision (b) of Section 64717, the agency shall distribute regional housing revenue in the form of a grant, loan, or other financing tool pursuant to subdivision (q) of Section 64720 in a manner that achieves the following shares in the annual expenditure plan: (4) At least 5 percent of the total annual programmatic budget, excluding any bond indebtedness, shall be used for technical assistance, research, and policy development. Eligible uses for these funds include, but are not limited to, all of the following: (A) Collecting and tracking information related to displacement and displacement risk, rents, and evictions in the region. (B) Drafting model affordable housing land use ordinances that may be adopted by any jurisdiction in the County of Los Angeles. (Amended by Slats. 2024, Ch. 80, Sec. 73. (SB 1525) Effective January 1, 2025.