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Home My WebLink About15 TTWHA Master Leasing Program - SCG Edits (01044341-2) TRUCKEE - AGENDA ITEM #15 Public District MEETING DATE: September 7, 2022 TO: Board of Directors FROM: Brian Wright, General Manager SUBJECT: Consideration of a Master Leasing Program for Public Employee Housing Administered Through the Truckee Tahoe Workforce Housing Agency APPROVED BY Brian C. Wright, General Manager RECOMMENDATION: Authorize the District's participation in a Master Lease Agreement for public employee temporary housing resources, administered through the Truckee Tahoe Workforce Housing Agency for a total annual cost to the District not to exceed $30,000. BACKGROUND: The District has for a long time identified employee access to achievable local housing as an important need for employee recruitment and retention. The District has also had a need for short-term/overnight housing for staff to improve emergency response, particularly during winter storms. To address local housing challenges, District staff have been collaborating with local agencies, has participated in the Mountain Housing Council 1.0, and continues to pursue new ways to address local housing challenges for public employees. Starting in 2018, the District began discussing a formal partnership with Tahoe Truckee Unified School District, Tahoe Forest Hospital District, and Truckee Tahoe Airport District (Member Agencies) to leverage resource and collaborate on ways to improve the Member Agencies' employee's access to affordable housing. Through a series of meetings and investigations, it was determined that forming a Joint Power Authority (JPA) for housing was the best path forward. In mid-2020, the Truckee Tahoe Workforce Housing Agency (TTWHA) Board started to focus on the initial steps needed to define the key goals and activities of TTWHA. This included the development of a work plan, creation of a website, a TTWHA Board workshop, and conducting a TTWHA Employee Housing Needs Study to better Page 1 of 4 understand the scope of the housing issues and the needs of the Member Agencies' employees. The TTWHA entered into a contract with WSW Consulting, Inc. to conduct a housing survey of all Member Agencies' employees (over 1,650 total employees). The purpose of the study was to understand the impact of housing cost/availability, employee housing problems/needs and gap, and potential programs. The methodology included: employee surveys; focus groups and interviews; housing market information; and review of existing TTWHA Member Agencies' employee housing programs. Over 50% (828) of the Member Agencies' employees completed the survey. Survey results were analyzed at the macro level for all participants but also broken down by each member agency throughout the report. In general, the survey documents that employee housing is a major issue overall for recruitment and retention. This includes: new employees needing to find housing (rent or own); renters wanting to buy, and owners that want to move-up or repair. Some concerning results include 16% of Member Agencies' employees considering leaving employment due to housing concerns and 43% saying that it is very difficult to find housing. Since the completion and dissemination of the employee housing survey towards the end of 2020, TTWHA has been busy maturing the organization while executing immediate programs to start helping employees while exploring longer-term solutions and partnerships. This includes the: Employee `Concierge Services; Housing Match Program, TTWHA Housing Work Plan development; and regional partnerships/developer cultivation. The results achieved by TTWHA in just a very short time have been significant. TTWHA continues to develop and refine programs and services and the rate of participation is increasing. TTWHA has also become an integral part of the local housing conversation and efforts to address the many challenges. The TTWHA JPA model is also creating collaborative discussions across our community on how agencies can effectively work together to solve problems and create community value. While the results to date are encouraging, there remains a significant amount of work to do. In 2021, the list of TTWHA Member Agencies expanded to include the Town of Truckee, Nevada County, and Placer County, each of which have been faced with similar challenges in identifying affordable housing opportunities for their respective employees. With the expansion of Member Agencies, TTWHA continues to evolve the organization and existing programs while exploring more substantial opportunities such as, down payment assistance programs and master leasing programs, or actual development of workforce housing on publicly-owned land, in addition to TTWHA Member Agency employee education programs on housing opportunities and support. In 2022, TTWHA began the process of developing a strategic plan with an emphasis on establishing short and long term goals, defining organizational metrics for success, identifying available funding sources, and further developing viable models for to meet local employee housing needs. Page 2 of 4 ANALYSIS AND BODY: Over the past two years, the Truckee Tahoe region has experienced dramatic increases in housing prices with a very competitive market for potential buyers. These conditions have left very limited opportunities for TTWHA Member Agency employees and potential recruitments to enter into the local housing market. The competitive housing market has also contributed to a relatively significant increase in single family residential housing rental or lease rates. The District has experienced on multiple occasions potential new hire candidates forced to withdraw their interest in employment offers due to high housing costs and/or the inability to find affordable short-term solutions to their housing needs. In many cases, the potential new hire is seeking short term affordable solutions to accommodate their family's relocation to the Truckee Tahoe region, establish employment and afford more time to identify more long term housing solutions on their own. One of the short term housing solutions identified by TTWHA is a proposed Master Leasing Program. TTWHA staff have been approached by multiple property owners in the Truckee Tahoe region who are interested in leasing residential properties to public employees who provide critical services within our communities. The program presents several community benefits, including the securing of local housing stock for employees that might otherwise be utilized as short-term vacation rentals, providing opportunities to house critical labor resources locally for emergency response, and significantly enhancing the successful recruitment and retention of a local skilled workforce. One of the additional benefits of securing local housing through a TTWHA Master Leasing Program is the short-term housing resources for emergency response staff during winter storm events and summer PSOM conditions. Goals and Objectives: This item is in support of the following goals and objectives: District Code1.05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient, and fiscally responsible manner. Strategic Goals: 1. Manage for Financial Stability and Resiliency 4. Take the best of private sector thinking to modernize the utility and add value to our communities. FISCAL IMPACT: Staff is recommending Board authorization of an amount not to exceed $30,000 annually to secure Master Leasing Program opportunities for District employees that have recently been made available through the TTWHA. The lease agreements will be executed between the property owner and the TTWHA. Monies contributed by the District will be utilized to secure the monthly lease of at least one residential unit (deposits, monthly lease payments, administration). The actual cost to the District is anticipated to be Page 3 of 4 significantly less, as the program is intended to provide transitional housing for public agency employees participating in a cost (rent) sharing and tenant agreement. Occupancy of the secured residential unit(s) by employees of any of the other TTWHA Member Agencies will further reduce the total cost to the District. TTWHA Member Agencies seeking to house temporary or emergency workforce will be invoiced through the TTWHA for proportional costs. ATTACHMENTS: None Page 4 of 4