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<br />REPORT <br /> <br />70 <br />Page 1 <br /> <br /> <br />To the Honorable Mayor and. City Council and <br />The Redevel '., i, ent Agency Board <br />From The Executive Director and Ci' Mana er <br /> <br />August 25,2008 <br /> <br />SUBJECT <br />Request for Adoption of a Revised Joint. Powers Agreement for the Housing <br />Endowment and Regional Trust Fund. <br /> <br />RECOMMENDATION <br />Adopt a Resolution approving a Revised Joint Powers Agreement (JPA) for the Housing <br />Endowment and Regional Trust (HEART) Fund. <br /> <br />BACKGROUND <br />HEART was formed in 2003 as a joint powers authority to fund affordable housing in <br />San Mateo County. In December 2005, the City Council/Redevelopment Agency <br />approved Resolutions 14680 and RD 05-08 respectively authorizing expenditure of <br />Housing Setaside funds for contribution to the administrative budget of the Housing <br />Endowment and Regional Trust of San Mateo County. The City <br />Council/Redevelopment Agency recommended that the City join HEART and pursue <br />modifications of the JPA bylaws after joining. Some of the member cities asked <br />HEART to revise the JPA. After receiving input from those members, Supervisor <br />Richard Gordon and the San Mateo County Counsel's Office drafted a revised JPA. <br /> <br />Summary of Process <br />The revised joint powers agreement was conditionally approved by the Member Agency <br />Committee. The revision subsequently satisfied the condition, which was to include <br />language that satisfied one committee member's concerns about how HEART's <br />financial obligations are handled. The HEART Board of Directors then approved <br />sending the revised JPA to the member agencies for consideration and adoption. The <br />revised JPA becomes effective when it is adopted by the members. <br /> <br />Summary of Changes <br />The following are the primary changes to the JPA: <br /> <br />1. Requested changes from members: <br />a. Clarify HEART's role is to facilitate housing programs and production, and not <br />to regulate or govern housing activities. <br />b. Clarify that HEART would take on debt only if it is secured by a dedicated <br />funding source or other security, such as real property. <br /> <br />2. HEART has applied for 501 (c)(3) tax-exempt status with the Internal Revenue <br />Service. Certain phrases were added to meet IRS requirements. The JPA now <br />specifies that HEART has a charitable purpose, which is to develop funds for <br />affordable housing. <br /> <br />3. Finally, the JPA is changing the official name of the JPA from the "Housing <br />Endowment And Trust" (HEAT) to "Housing Endowment And Regional Trust" <br />(HEART). The JPA has been doing business as HEART since early on. <br /> <br />R:\STAFF REPORTS\JPA Agreement\Staff Report.doc <br />