The City of South Pasadena is establishing an Affordable Housing Trust Fund to support programs and projects that help make affordable housing a reality for residents. This fund will help local officials coordinate state and federal programs to create a housing strategy tailored to the community's unique needs. Proceeds from the sale of properties recently transferred from CalTrans to the City and in-lieu fees from projects under the Inclusionary Housing Ordinance will contribute to the fund.
Community input is welcomed to help prioritize the projects and programs the fund should support. Email us at housing@southpasadenaca.gov to submit your thoughts and sign up for updates.
What is a Housing Trust Fund?
A Housing Trust Fund is a locally controlled, dedicated pool of resources specifically for affordable housing development or preservation. Funds can be used to meet urgent needs or cover gaps that other housing programs cannot address.
Examples of Funding Sources
- Affordable housing in-lieu fees paid by developers
- State and federal grants or contributions
- Private donations or philanthropic partnerships
Benefits of a Housing Trust Fund
- Consistency: A dedicated revenue stream ensures stable housing funds, often diversified across sources, enhancing cash flow, reducing risk, and distributing costs across community sectors.
- Leverage: Housing Trust Funds attract more funding, leveraging additional dollars from private, nonprofit, and governmental sources for every dollar invested in affordable housing.
- Flexibility: Housing Trust Fund flexibility lets communities address local priorities, such as transitional housing, rental subsidies, or permanent housing for low-income families.
Who Should the Trust Fund Serve?
A Housing Trust Fund may focus on addressing an unmet community need, such as housing for very low-income individuals, or target special populations, such as seniors.
What Projects and Programs Should the Fund Support?
Deciding what kinds of projects and programs to pursue will depend on an assessment of housing needs, the revenue sources available, and the capacity of organizations and developers in the community to use the resources.
The following are some typical uses for Housing Trust Funds:
- Permanent affordable rental housing
- Acquisition of land to provide local sites for affordable housing development
- Rehabilitation of existing affordable homes and apartments
- Transitional or emergency housing and homeless shelters
- Preservation of assisted housing (such as purchase of apartments when affordability contracts expire)
- Rental assistance for lower income residents
- Foreclosure prevention and rehabilitation loans or grants for owner-occupants
- Home weatherization and emergency repairs
- Homeownership assistance, including down payments, closing costs or mortgage assistance
- New homebuyer counseling/education
Who Should Be Eligible to Receive Funds, and What Types of Assistance Should the Fund Provide?
Eligibility for support depends on the programs and projects. While some programs may directly serve individuals, most work through intermediaries like nonprofit or for-profit developers, public agencies, or community service organizations.
Housing Trust Funds typically provide gap financing, encouraging beneficiaries to leverage other funding sources. Assistance can include grants, credit lines, or conditional loans convertible to grants.