County housing trust fund asks Fillmore to consider renewed contribution after reporting $45M in lending

Linda Braunchreiger, chief executive officer of the Housing Trust Fund of Ventura County, told the Fillmore City Council on March 11 that the nonprofit has expanded short-term lending to support affordable housing development across the county and is asking cities to consider new contributions to sustain lending capital.

Brunchreiger said the trust, created in 2008 and operating as a lender since 2013, has leveraged public and private funds to provide short-term loans for predevelopment, acquisition and construction for affordable projects. "We started with a $2,000,000 match from the state," she said, and said that since 2013 the organization has raised about $45,000,000 and last year funded roughly $14,000,000 in loans. "In the first 6 months of this year, we're expected to do about $17,000,000," she added, and staff recently funded $7,200,000 on a single transaction.

Why it matters: The trust provides bridge financing and short-term loans that developers often need before permanent financing and tax credits are in place. The agency said it has financed projects targeted to farmworkers, veterans, youth transitioning from foster care and people experiencing homelessness; the trust reported it has produced about 1,898 affordable units to date.

Brunchreiger described recent and anticipated funding sources, including a $5,000,000 REAP award the trust reclaimed after an earlier clawback, and a $25,000,000 Prop 1 (2018) state matching program for which the trust has received $14,000,000 so far and is awaiting an additional award. She told the council the trust is asking smaller cities for $50,000 contributions in this round and larger or more active cities $100,000 for multi-year payments; she emphasized the city’s initial $50,000 contribution to the trust in 2018 had been leveraged into multiple loans in Fillmore.

Council members asked how the requested contributions are treated. Brunchreiger answered directly when asked whether the city would receive the money back: "It's a grant," she said. She clarified the trust uses the term "investment" because it leverages city and other public contributions to secure larger pools of lending capital, but the municipal contributions themselves are not returned as a simple cash repayment to the city.

Council direction: Mayor Christina Villasenor and other council members agreed to place the topic on a future meeting agenda for further council discussion. Mayor Villasenor said, "So we'll put housing trust fund discussion on the agenda." No formal funding decision was made at the March 11 meeting.

Background and next steps: Brunchreiger asked councils to consider renewed contributions this budget cycle as some state and federal funding sources become less certain. She offered to show council members trust-financed properties and told Fillmore officials the trust already has projects in the city pipeline, including Fillmore Terrace with People’s Self-Help Housing and Mountain View, which she said is occupied. The council asked staff to agendize a discussion about potential contributions and the trust’s request so members can examine amounts and timing before any appropriation vote.

Ending: City staff will return the item to a future council agenda for more detailed discussion of contribution amounts and the trust’s planned use of any new city funding.