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Home My WebLink AboutPC RES 4095RESOLUTION N0.4095 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN RECOMMENDING THAT THE CITY COUNCIL APPROVE GENERAL PLAN AMENDMENT 08- 001, UPDATING THE TUSTIN HOUSING ELEMENT PURSUANT TO GOVERNMENT CODE SECTION 65588 AND MINOR TEXT AMENDMENT TO THE TUSTIN GENERAL PLAN. The Planning Commission does hereby resolve as follows: The Planning Commission finds and determines as follows: A. That California State Law Section 65588 requires each City to review as frequently as appropriate and to revise its Housing Element as appropriate. B. That minor text amendment to the Tustin General Plan is desirable to update and clarify certain items to bring the Tustin General Plan up to date. C. That a public workshop was held on May 21, 2008, to familiarize the general public with the purpose and intent of the Housing Element Update. D. That a public hearing was duly called, noticed, and held on said application on May 27, 2008, by the Planning Commission to consider and provide further opportunity for the general public to comment on and respond to the proposed Housing Element Update. E. That pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15063, the City of Tustin has completed an Initial Study to evaluate the potential environmental impacts associated with General Plan Amendment 08-001 and a Mitigated Negative Declaration was prepared for the project. II. The Planning Commission hereby recommends that the City Council approve General Plan Amendment 08-001, updating the Housing Element and minor text amendment to the Tustin General Plan as identified in "Exhibit A" and "Exhibit B" respectively attached hereto. PASSED AND ADOPTED by the Planning Commission of th it~ ~ Tustin, at a regular meeting on the 27t'' day of May, 2008. ~ JOHf~fVIEL"SEN ~~~ ~ Chairperson ELIZABETH A. I SACK Planning Commission Secretary Resolution No. 4095 Page 2 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, ELIZABETH A. BINSACK, the undersigned, hereby certify that I am the Planning Commission Secretary of the City of Tustin, California; that Resolution No. 4095 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 27tH day of May, 2008. ELIZABETH INSACK Planning Commission Secretary Exhibit A to Resolution No. 4095 Housing Element TUSTIN GENERAL PLAN May 1A08 Final Drak This page intentionally left blank. TABLE OF CONTENTS Section Page INTRODUCTION TO THE HOUSING ELEMENT 1 Purpose Of The Housing Element 1 Scope And Content Of Element 2 Consistency With State Planning Law 2 General Plan Consistency 4 Citizen Participation 5 SUMMARY OF ISSUES, NEEDS, CONSTRAIhITS AND OPPORTUNITIES 7 Summary Of Housing Needs 7 Preservation Of Units At Risk Of Conversion., ; ~ Summary Of Housing Issues;...,..... 27 Housing Constraints _ 30 Housing Opportunities 40 HOUSING ELEMENT GOALS AND PC-LICIE,S 55 Housing Supply/Hous$Zg Opportunities 55 Maintenance And Conservation 60 Environmental Sensitivit~€ 61 Related Goals And I~licies 62 HOUSING ELEMENT IMPLEMENTATION PROGRAM 63 Five Year Quantified Objectives ~ Identification Of Affordable Housing Resources 68 Housing Progran^is g8 APPENDICES A - Review of Past Performance B - Affordability Gap Analysis C - Affordable Housing Capital Plan D - Public Participation Mailing List E - References CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN i 2008 LIST OF TABLES Page TABLE H-1: STATE HOUSING ELEMENT REQUIREMENTS 3 TABLE H- 2: POPULATION GROWTH 8 TABLE H- 3:EMPLOYMENT PROJECTION ~ 9 TABLE H- 4: LIST OF MAJOR EMPLOYERS 11 TABLE H- 5: JOBS/HOUSING BALANCE ~ 12 TABLE H- 6: APARTMENT INVENTORY CHARACT'ERLSTTCS 15 TABLE H- 7: TENURE OF HOUSEHOLDS WITH HEAD OF HOUSEHOLD AGED 65 YEARS OR OLDER 16 TABLE H- 8: EMERGENCYSHELTER/TRANST'TIONAL HOUSING FACILITIES 20 TABLE H- 9: ASSLSTED HOUSING INVENTORY 24 TABLE H-10: SUMMARY OF EXISi'II~10 HOUSING NEEDS_ 27 TABLE H-11: ANTTCIPAT'ED DEVELOPMENT AT MCAS-TUSTIN 35 TABLE H-12: LAND INVENTORY AND RESIDENTIAL DEVELOPMENT POTENTIAL 41 TABLE H-13: PROGRESS TOWARD RHNA CONSTRUCTION NEEDS 42 TABLE H-14: VACANT, AND UNDERUTILIZED LAND WITH RESIDENTIAL DEVELOPMENT POTEfiJ'I'tAia ' 45 TABI..E H-15: VACANT LAND SUITABLE FOR RESIDENTIAL DEVELOPMENIS 49 TABLE H-1`& HOUSING RBLAT'ED GOALS AND POLICIES BY ELEMENT 60 TABLE H-17: NEW CONSIRUCTIONQUAN'ITFIED OBJECTIVES SUMMARY 63 TABLE H-18: REHABILITATION, PRESERVATION, AND OTHER AFFORDABLE HOUSING QUANTIFIED OBJECTIVES 65 TABLE H-19: SUMMARY OF QUANTIFIED OBJECTIVES 66 TABLE H- 20: LOW AND MODERATE INCOME HOUSING SET ASIDE FUNDS PROJECTIONS 67 TABLE H- 21: AFFORDABLE HOUSING RESOURCES 69 TABLE H- 22: HOUSING ELEMENT PROGRAMS 2006-2014 87 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN ii 2008 INTRODUCTION TO THE HOUSING ELEMENT The availability of decent housing and a suitable living environment for every family has been of increasing concern to all levels of government. In California, this concern is addressed by the California Government Code requirement that each City adopt a Housing Element as a mandatory pazt of its General Plan. State Planning Law mandates that jurisdictions within the Southern California Association of Governments (SLAG) region adapt revisions to their Housing Elements by June 30, 2008. As a consequence of this due date, a series of time frames for various aspects of the Housing Element preparation aze established. There are three relevant time periods: 1998-2005: The previous planning period began i 1998, and ended on June 30, 2005. January 2006-June 2014: a planning period for assessing short-term housing construction needs. 2008-2014: an implementation period. for housing programs. The planning period. for the Regional Housing Needs Assessment (RHNA) as prepared by SCAG, is from January 1, 2006 to June 30, 2014, an eight and one-half year period.:, The implementation` period covered by this element is June 2008 to June 2014: By 2012, the City, along with other jurisdictions in the SCAG region, again will begin preparation for a revision of the housing element to cover the period from 2014-2019. PURPOSE OF THE HOUSING ELEMENT The'Land Llse Element is concerned with housing in a spatial context while' the Housing Element identifies housing programs aimed at meeting the identified housing needs of the City's population. The Tustin Housing Element includes the identification of strategies and programs that focus on: 1) housing affordability, 2) rehabilitating substandard housing, 3) meeting the existing -demand for new housing, and 4) conserving the existing affordable housing stock. The Tustin Housing Technical Memorandum provides background information and supporting documentation. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 1 2008 SCOPE AND CONTENT OF ELEMENT The State Legislature recognizes the role of the local general plan, and particularly the Housing Element, in implementing statewide housing goals. Furthermore, the Legislature stresses continuing efforts toward providing affordable housing for all income groups. The Legislature's major concerns with regard to the preparation of Housing Elements are: ° Recognition by local governments. of their responsibility in contributing to the attainment of State'housing goals; ° Preparation and implementation of housing elements which coordinate with State and Federal efforts in achieving State housing goals; ° Participation by local jurisdictions in determining efforts required to attain State housing goals; and ° Cooperation between local governments to address regional housing needs. The. State Department of Housing and Community Development ~HCD) sets forth specific requirements regarding the scope and content of housing elements. CONSISTENCY WITH STATE PLANNING LAW The preparation of the City's Housing Element is guided by and must conform to Section 65580 et seq. of the California Government Code. In the introduction of these Government .Code sections, the Legislature establishes a policy that the availability of housing in a suitable environment is of vital statewide importance, and a priority of the highest order. It further states that local governments are to address the housing needs of all economic segments, while considering the economic, environmental and fiscal factors and community goals set forth in the General Plan. The following table cites the required components for the Housing Element and cites the document and page references for the required components. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 2 2008 TABLE H-1 STATE HOUSING ELEMENT REQUIREMENTS Required Housing Element Component Page A. Housing, Needs Assessment 1. Analysis of population trends in Tustin in relation to regional trends HTM 9 & HE 8 2. Analysis of employment trends in Tustin in relation to regional trends :; HTM 12 & HE 9 3. Projection and quantification of Tustin's existing and projected housing needs for all income groups HE 27, HE 40, HTM `~ 4. Analysis and documentation of Tustin's housing chanjcteristcs including the following: a) level of housin cost com ared to abili to a ; HTM 22 b overcrowdin HTM 17 c) housing stock condition. HTM 31 S. An inventory of land suitable, for residential development including vacant sites and having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites ~ 40 • .6: Analysis of" `existing and .potential governmental constraints upon the maintenance,. improvement, pr development of housing for all income levels HTM 49 & HE 32 7. Analysis of existing and':' potential non-governmental and market constraints upon maintenance,. improvement, or development of housing for all income levels HTM 62 & HE 30 8. Analysis of special housing need: disabled, elderly, large families, female- headed households, farmworkers . ~ 15 &HTM 23 9. Analysis concerning the needs of homeless individuals and families in Tustin HE 18 &HTM 26 10. Analysis of opportunities for energy conservation with respect to residential development HTM 67 B. Goals and Policies 1. Identification of Tustin's goals, quantified objectives and policies relative to maintenance, improvement, and development of housing HE 53 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 3 2008 TABLE H-1 STATE HOUSING ELEMENT REQUIREMENTS Required Housing Element Component Page C. Implementation Program An im lementation ro am should do the followin 1. Identify adequate sites which will be made available through appropriate action HE 58-98 with required public services and facilities for a variety of housing types for all income IeveLs 2. Assist in the development of adequate housing to meet the° needs of low-and HE 58-98 moderate-income households 3. Identify and, when appropriate and .possible, remove:. governmental constraints HE 58-98 to the maintenance, improvement, and development of housing 4. Conserve and improve the condition of the existing and affordable housing HE 58-98 stock 5. Promote housing opportunities for all persons I-~ ~"`~ 6. Identify programs to" address the potential conversion of assisted housing HE 58-98 developments to market rate units Source: California Government Code; §65583, et aL GENERAL PLAN CONSISTENCY" While a city must consider housing needs for all economic segments, it must also maintain internal consistency among other elements of the General Plan as required by state law. Neither the Housing Element nor any other element may supersede any other required Tustin General Plan elements. The Housing Element relates to other elements in a variety of ways. The Land Use Element directly relates to the Housing Element by designating areas of the City in which a variety of residential types and densities exist. The Housing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs in the areas of the City with CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 4 2008 the highest density. Also, housing needs for low cost land must be balanced by the need to conserve natural resources. The Circulation Element attempts to provide an efficient and well- balanced circulation system. This system must be designed to accommodate allowed land uses, including residential uses, and the intensity of allowable uses should not exceed the ultimate capacity to accommodate them. The Safety Element relates to the Housing Element by designating areas that are unsafe for development such as Alquist-Priolo Zones, floodplains, etcetera. Similar to the Safety Element, the Noise Element relates to the Housing Element by addressing a health related issue area. Techniques for reducing noise often involve buffers between land uses. The Growth Management Element overlaps the issues raised in the Housing Element in its efforts to ensure that the planning, management, and implementation of traffic improvements and public facilities are adequate to meet he current and projected needs of Orange County. ...The Housing IIement has been reviewed for consistency with the City's other°General Plan elements and policy directions. As parts of the General Plan are amended in the future, this housing element will be reviewed to ensure that consistency is maintained. CITIZEN PARTICIPATION The California Government Code requires that local governments make diligent efforts to solicit public participation from all segments of the community in the development of the Housing Element. Public participation in the Housing Element Update process occurred through the following methods: ° A public workshop was conducted on May 21, 2008 to present the draft Housing Element and provide an opportunity for interested persons to ask .questions and offer suggestions. Notice of this workshop was published in the Tustin News, on the City's website, and was also mailed to CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 5 2008 the City's list of local housing interest groups. A copy of the mailing list is included as Appendix C. ° Specific implementation programs included in the Housing Element Update were also discussed at various public hearings over the last 18 months in anticipation of the Housing Element Update. These- hearings include the Federal Community Development Block Grant Program public hearings held on February 25, 2008, April 15, 2008, and May. 6, 2008, adoption of the City's of Tustin's Comprehensive Housing Affordability Strategy for fiscal years :2008-2018 public hearing held on ,and adoption of the Second Five-year Implementation Plan f or the Town Center and South Central Redevelopment Project areas for fiscal years 2005-2006 to 2009-2010 public hearing held on December 6, 2004. ° Public hearings were held on May 27, 2008, by the Planning Commission and on June 17, 2008, by the City Council to provide additional opportunities for public review and comment on the Housing- Element Update and supporting documents. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 6 2008 SUMMARY OF ISSUES, NEEDS, CONSTRAINTS AND OPPORTUNITIES This section of the Housing Element summarizes Tustin's current and projected housing needs to form the basis for establishing program priorities and quantified objectives in the Housing Element. This section also: • Estimates the number of households that meet Federal or State criteria for special consideration when discussing specialized needs; • Evaluates assisted units at risk of conversion; • Describes constraints that may discourage the construction of new housing; and • Examines housing opportunity sites. SUMMARY OF HOUSING NEEDS A number of factors will influence the degree of demand or "need" for housing in Tustin. The major "needs" categories considered in this Element include: ° Housing needs resulting from increased population and employment growth in the City and the surrounding region; ° Housing needs resulting from household overcrowding; ° Housing needs resulting from the deterioration or demolition of existing units; ° Housing needs that result when households are paying more than they can afford for housing; ° Housing needs resulting from the presence of "special needs groups" such as the elderly, large families, female-headed households, households with a disabled person, and the homeless; and ° Housing needs resulting from conversion of the assisted housing stock to market rate. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 7 2008 Population Growth As shown in Table H-2, between 2000 and 2007 the City's population grew from 67,504 to 72,542, an increase of 7.5%. The City of Tustin's growth rate between 2000 and 2007 was slightly slower than the countywide growth rate but faster than most surrounding cities. Recent projections cited in the Comprehensive Affordable Housing Strategy 2008, indicate that Tustin's population will increase by an annual rate of approximately 1.5% during this implementation period, bringing the total population to 86,621 by the year 2015. Table H-2 compares the City's growth rate between 2000 and 2007 with other Orange County cities and the County as a whole. A large percentage of Tustin's population growth can be attributed to annexations that have occurred since 1980. The remainder can be attributed to a variety of other factors, including shifts in family structures from smaller to lazger families, redevelopment of existing developed areas, infill development, and new residential construction in East Tustin and Tustin Legacy (former Marine Corps Air Station [MCAS] Tustin). Substantial population and housing growth will continue during this planning period with the continued development at Tustin Legacy. TABLE H- 2 POPULATION GROWTH 2000-2007 CITY OF TUSTIN, SURROUNDING JURISDICTIONS AND ORANGE rnr iNTv Growth Jurisdiction 2000' 2007 z 2000-07 Tustin 67,504 72,542 7.5% Anaheim 328,014 345,556- 5.3°,6 Garden Grove 165,196 172,781 4.6°,6 Irvine 143,072 202,079 41.2% Santa Ana 337,977 353,428 4.6% Oran e Coun 2,846,289 3,100,313 8.9°~ Source: '2000 U.S. Census z Deuartment of Finance estimates, 2007 Population projections aze shown in .Table H-2A. According to Orange County Projections (OCP) 2006 data, the population in the City of Tustin is expected to increase by approximately 10 percent to 88,694 persons by the yeaz 2025. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 8 2008 TABLE H- 2A Population Projection 2010 2015 2020 2025 Percent Change (2010-2025) Tustin 80,728 86,621 88,245 88,694 10% Source: OCP 2006 Employment According to 2000 Census data, the City, of Tustin had 36,681 residents in the labor force, of which 34,906 j95.2°!°) were in the labor market. Of these, 79.3% were private wages and salary workers. Table HTM-4 in the Technical Memorandum shows the breakdown of employees by occupation. In 2000, the largesf occupational category was professional and related occupations, in which a total of 7,467 were employed. The second largest category'was the management, business, and financial operations occupations, employing 6,657. Table H-3 provides employment projections between the years 2010 and 2025. According to OCP-2006 Modified data, employment in the City of Tustin is expected to increase by approximately 47 percent by the year 2025. TABLE H- 3 Employment Projection 2010 2018 2020 2025 Percent Change (2mo-2oz~l Tustin 46,742 56,340 64,386 68,551 47% Source: OCP 2006 Modified, Prepazed by Center for Demographic Reseazch. In terms of industry, the manufacturing, and educational, health and social service sectors employed the largest number of persons with 5,980 (17.1%) and 5,081. (14.6%) employees, respectively. Table H-4 is a summary of the number of employees by industry. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 9 2008 Due to its favorable location, demographics, and business environment, Tustin is home to several best known employers. Appendix C lists major employers in the City of Tustin. The City's top ten employers include: Tustin Unified School District, AT&T, Ricoh Electronics, Inc., Rockwell Collins, Cherokee International, ADC Telecommunications, Balboa Instruments, Toshiba America Medical Systems, the City of Tustin, and Costco Wholesale. Table H-4 provides a list of the largest private sector employers in Tustin in 2007. The list includes a, variety of industries, including manufacturing, health care, retail, and technology sectors. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 10 2008 TABLE H- 4 LIST OF MA OR EMPLOYERS IN TUSTIN, CA Company/Address/Telephone No. Emp. Produc~/Service Tustin Unified School District - (714) 730-7301 1,586 Education 300 South C St. -Tustin 92780 AT&T - x(714) 259-6667 1,300 Telecommunications 1442 Edin er Ave.- Tustin 92780 Ricoh Electronics, Inc - (714) 259-1220 1,038; Manufacturer 1100 Valencia Ave. -Tustin, 92780 Rockwell Collins - (714) 317-8102 700 Manufacturer 14192 Franklin Ave.- Tustin, 92780 Cherokee International - (714) 544-6665 330 Power Supplies 2841 Dow Ave. -Tustin, 92780 ADC Telecommunications, Inc - (714) 259-7729 ~ 300 Telecommunications 15621 Red Hill Ave. -Tustin, 92780 u" t Balboa Instruments - (714) 384-0384 300 Electronic 1382 Bell Ave. -Tustin, 92780 Manufacturer Toshiba America Medical Systems - (714).730-5000 300 Distributor, Medical 2441 Michelle Dr. -Tustin, 92780 E ui ment City of Tustin - (714) 573-3000 300 Government 300 Centennial Wa -Tustin 92780 Costco Wholesale - (714) 838-7895 241 Wholesale Trade 2655 El Camino Real -Tustin 92780 Woodbridge Glass Inc - (714) 838-4494 - 205 Glass & Glazing Work 14321 M ford Rd. -Tustin 92780 Costco Wholesale - (714)338-1943 200 Wholesale Trade 2700 Pazk Ave• -Tustin 92780 Logomark Ins. -(714) 675-6100 200 Wholesale Trade 1201 Bell' Ave. -Tustin 92780 SMC Corporation of America,.- (714) 669-0941 200 Manufacturer 14191 M'' rd Rd. -Tustin 927$0 Tustin Hospital - {714) 669-5880 200 Hospital 14662 New ort Ave. -Tustin, 92780 Vitatech International, Inc. - (714) 832-9700 178 Pharmaceutical 2832 Dow Ave. -Tustin 92780 Pre orations Home Depot - (714) 838-9200 154 Retail 2782 El Camino Real -Tustin, 92780 Straub Distributing Company - (714) 247-7300 150 Wholesale Trade 2701 Dow Ave. -Tustin, 92780 Dawn Food Products, Inc - (714) 258-1223 150 Wholesale Bakery 15601 Mosher Ave. -Tustin, 92780 Durabag Company Inc - (714) 259-8811 150 Manufacturer 1301 Santa Fe Dr. -Tustin, 92780 SOURCE: City of Tustin Website, October 26, 2007, Tustin Chamber of Commerce, Tustin Community Development Depaztment, and Orange County Workforce Investment Board 2007 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 11 2008 Jobs-Housing Balance The "jobs-housing balance' test is a general measure of a community's employment opportunities with respect to its residents' needs. A balanced community would reach equilibrium between employment and housing opportunities so the majority of the residents could also work within the community. Table H-5 shows the 2005 jobs-housing balance for the City of Tustin as well as Orange County and the Southern California region. Tustin had ajobs/housing ratio of 1.56 in> 2005, while Orange County and the region had jobs/housing ratios of 1.48 and 1.19, respectively. This demonstrates that Tustin is a, job-rich community when compared to county and regional averages. TABLE H- 5 JOBS/HOUSING BALANCE CITY/COUNTY/REGION 2(NZ!~ Tustin Oran a Coun SCAG Re 'on Em to went `40,449 1';496,200 7,123,700 Housin'" Units 25,927 1,013,036 6,005,879 Jobs/Housin Ratio 1.56 1.48 1.19 Sources: California Department of Finance; Center for llemograptuc xesearcn; x.H~; Comprehensive Affordable Housin~Strategy 2008-2018. Overcrowding Along with the City's population growth, there has been an increase in unit overcrowding, as households "double up" to save on housing costs. Overcrowding is often reflective of one of three conditions: l) a family or household is living in too small a dwelling; 2) a family chooses to house extended family members (i.e., grandparents or grown children and their families living with parents, termed doubling); or 3) a family is renting living space to non-family members. State and Federal Housing Law defines overcrowded housing units as those in which the ratio of persons-to-rooms exceeds 1.0. The rooms considered in this equation exclude bathrooms, kitchens, and hallways, but includes other rooms such as living and dining rooms. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 12 2008 According to SCAG's 2007 Final RHNA, the incidence of overcrowding in Tustin was high in 2006, at 4,285 households, or 18.0 percent of all households. Renter households had a significantly higher incidence of overcrowding than owner households: 28.9 percent of renter and 6.9 percent of owner households were overcrowded. The 2007 1te-gional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SLAG) figures showed 2,390 (9 percent) households living in overcrowded conditions of .which 51 percent were Low- income households. Low-income households aze those earning 80 percent or less than the county median family income (MFI). Income levels are discussed further in the "affordability" section. Substandard Units By 2010, 68 percent of the City's housing stock will be over 30 years old, the age at which housing tends to require significant repairs. This indicates a potential need for rehabilitation and continued maintenance of over 14,500 dwelling unitsl. '' i r Affordability State and Federal standards. for rental housing overpayment are based on an income-to-housng cost ratio of 30 percent and above. Households paying greater than this percentage will have less income left over for other necessities, such as food, clothing and health care. Upper income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates. of housing overpayment generally focus on lower income groups. The 2007 RHNA estimates show 6,190 of Tustin households were paying more than 30 percent (overpaying) of their .income on housing needs. Of these over-payers, 3,935 or 64% were lower- income households (<80% of MF)), of which 2,410 were classified as Extremely-Low and Very Low-income households (<50% of MFi). The distinction between renter and owner housing overpayment is important because, while homeowners may over-extend themselves financially to afford the option of home purchase, the owner always 1 Housing Element Technical Memorandum Table HTM-21. CITY OF TUSTIN GENERAL PLAN 13 HOUSING ELEMENT X008 maintains the option of selling the home, thereby generally lowering housing costs. In addition, home ownership affords tax benefits to reduce monthly costs. Renters are limited to the rental market, and are generally required to pay the rent established in that market. According to the RHNA, of the total 3,935 lower income households identified as overpayers, 2,660 were renter households and 1,275 were owner households. This discrepancy is largely reflective of the disproportionate number of rental housing units in the City and the tendency of renter households to have lower incomes than owner households (see Table HTM-12 in Technical Memorandum). Table H-6 summarizes the characteristics of the current apartment inventory in the City of Tustin. as of the second quarter 2007 based on data from REALFACTS. The data include a total of 29 apartment properties and 5,903 units, with an average: of 203 units per property. All properties in the inventory have at least 93 units and were built between 1957 and ` 1997. Therefore, the data do not include small multifamily properties. The overall rental vacancy rate for Tustin in the second quarter of 2007 was 4.6 percent, up slightly from 4.3 percent in the first quarter of 2007. Generally, a vacancy rate of 5 percent is considered to reflect a "tight" housing market. 'As noted above, Department of Finance data for`Tustimas of January 2007 show a vacancy rate of 2.71 percent for all housing types in Tustin (single-.and multi-family, owner and rental). The data show that approximately 40 percent of apartment units in the City have one bedroom, 52 percent have two bedrooms, and 5 percent have three bedrooms. Average monthly rents are $1,292 for a one-bedroom, one-bath unit. For two-bedroom units, average monthly rents are $1,436 for units with one bath, $1,253 for units with one and a half baths, $1,810 for units with two baths, and $1,674 for two-bedroom townhouse units. The average monthly rent for a three-bedroom unit with one and a half baths is $1,641 and for a three-bedroom unit with two baths the average rent is $2,431. The average rent for athree-bedroom townhouse unit is $1,861. The weighted average rental rate for the inventory increased 5.4 percent over the past year2. Rents for one-bedroom/one-bath z These weighted average rents weight the average rent by bedroom count by the number of units in that bedroom count category. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 14 - 2008 properties increased the most at 6.9 percent, followed by three- bedroom townhouse units at 6.8 percent, junior one-bedrooms at b.6 percent and two-bedroom/one-bath units at 5.2 percent. ' TABLE H- 6 Apartment Inventory Characteristics City of Tustin - Tune 2007 Unit Size Units Percent .Average;.... SF Average Rent Average Rent/SF Studio 200 3.4°,6 521 $1,138 $2.18 Jr 1 BR 32 0.5%'` 470 $1,050 $2.23 1 BR 1 BA 2,312 3912°,6 733 $1;292 $1.76 2 BR 1 BA 706 12.0°,6- 974 $1,436 $1.47 2 BR 1.5 BA 266 4.5°~ ` 945 $1,253'' $1.33 2 BR/2 BA 1,885 31.9°~ 1,024 $1,81b $1.77 2 BR TH 194 3.3°~ ` '1,074 $1,674 $1.56 3 BR 1.5 BA 36 0.6°,6 1,371 $1,641 $1.20 3 BR/2 BA 216 37% 1,173 $2,431 $2.07 3 BR TH 5b 0.9%'' 1,441 $1,861 $1.29 TOTAL 5,903 100.0% 894 $1;528 $1.72 "TH" signifies a:Townhouse Unit: Note: Averages for the Total row are weighted averages. Sources: Realfacts; Comprehensive Affordable Housing Strategy 2008 - 2018 Affordability Gap Analysis: In addition to information related to Housing Constraints provided in the City's Housing Element Technical' Memorandum, a Comprehensive Housing Affordability Strategy has been prepared. The report contains a detailed affordability gap analysis to illustrate the "gap" between the cost of developing housing for rent and ownership and what households at a variety of income levels can afford to pay toward their housing expenses. A Summary of Renter and Owner Affordability Gaps for certain prototypical unit types and incomes are provided as Appendix "B 3" s Summary based on data contained in Comprehensive Housing Affordability Strategy, 2008. E E CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 15 2008 Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances and may require specific accommodation or assistance to meet their housing needs. Included as special needs groups are the elderly, disabled, female-headed households, large families, and homeless. With the closure of MCAS-Tustin, military personnel are no longer covered as a special needs group. Additionally, there are no known "farmworkers" residing in Tustin and, therefore, this group is not discussed. Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and need for assistance. As shown in Table HTM-2, persons aged 65 years or alder in Tustin comprised 7.1 percent of the population in 2000. Table H-7 shows the tenure of households with the head of household aged 65 years or older in the City of Tustin in 2000. The City had 747 renter households and 2,086 owner households with a head of household aged b5 years or alder. Households with a senior householder represented 11'.9 percent of all households in the City. -TABLE H- 7 Tenure of Households with Head of Household Aged 65 Years or Older City of Tustin 2000 Head of Household 65 Years or Older # Households % Households Tenure Renters. 747 6.2°~~ Owners 2,086 17.6%2 Total Households 2,833 11.9°,63 ~ As a percentage of 12,002 renter households. z As a percentage of 11,829 owner households. s As a percentage of 23,831 total households. Source: 2000 U.S. Census; Com rehensive Affordable Hous' Strate 2008 -2018. Table H-7A shows the estimated household income distribution for householders aged 65 years or older in 2000. Approximately 27 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 16 2008 percent of elderly households earned less than $20,000 annually, or about 36 percent of AMI for a household of two persons in 2000 a TABLE H-7A Estimated Household Income Distribution Households with Head of Household Aged 65 Years or Older City of Tustin 2000 t y i Income Range Numbers Percent Cumulative % Less Than $10,000 300 10.4% 10.4% $10,000-$19,999 467 16.2% 26.6% $20,000 $34,999 618 21.4% 48.0% $35,000-$49,999 439 $50,000-$74,999 520 $75,0110-$99,999 211 15.2% 63.2% 18.09'° .81.2% 7.3%'` 88.5% $1(}0,000 or More 332 11.5% 1(10.0% Total Households 2,887 100.0% ~ Derived by applying the percentage of households with head of household aged 65 years or older by income category from Summary File 3 Table P55 (based on sample data; total number of households shown as 23,853) to a total of 23,831 households from Summary File 1, Table H-1 for consistency with other Census dafa on the number of households used in this report. Source: 2400 U.S. 2008-2018. Disabled: Physical. disabilities can hinder access to housing units of traditional design and potentially limit the ability to earn adequate income, According to the 2000 U.S. Census, a total of 7,610 persons in Tustin between 16 and b5 years of age reported a disability. In addition, 1,795 persons over age 65 reported a disability in 2000. Special housing needs of disabled individuals include wheelchair accessibility, railings, and special construction for interior living spaces.. .:The Housing Element sets forth policies to encourage the development of disabled-accessible housing (see policies 1.14, 1.17, 1.19). Large Families: A family household containing five or more persons is considered a large family, as defined by the Census. Large families are identified, as groups with special housing needs because of the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the a HUD median household income for a family of four in Orange County in 2000 was $69,600. f. t F f 1 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 17 2008 overcrowding of smaller dwelling units and accelerating unit deterioration. According to the 2000 Census, 3,267 family households, or 15 percent of all households, had five or more persons (see Housing Element Technical Memorandum Table HTM-14). Of those, approximately 40 percent were owner-households and 60 percent were renter households. Female-Headed Parent Households: The housing needs of female- headed households with children are generally related to affordability since such households typically have lower than average incomes. According to the 2000 Census, the City of Tustin had 1,178 female-headed households with children less.than 18 years of age. The Homeless: Measuring the extent of the homeless population specifically in Tustin_remains a challenge for community leaders. To complicate the challenge of meeting homeless persons' needs, the issue of homelessness 'is considered.... regional in nature. Nomadic tendencies of homeless `; persons make it difficult to assess the population accurately on a citywide basis; therefore,, homelessness should be addressed on a` countywide basis, in conjunction with cities and local non-profit organizations. The Orange County Housing and Community Services Department (HCS) .defines .homelessness as not having a permanent address, sleeping in places nat meant for habitation, not having ample food and medical attention or a place to change clothes or bathe. Per this definition, ' HCS estimates there are nearly 35,000 homeless in the County. The County's homeless population is comprised of about 30 percent individuals and 70 percent families, including an estimated 16,300 homeless children. For those 35,0()0 homeless, there are only about 3,400 available beds, including 1,512 emergency shelter beds and 1,888 beds in transitional housing facilities. The homeless population is comprised of subgroups, which include: a) The economic homeless who lack financial resources to pay rent; b) The situational homeless who have suffered economic or personal trauma and find themselves in personal disorganization; and, CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 18 2008 c) 'The chronic homeless who are unable to care for themselves due to chronic illness, disability or debilitating substance abuse. The City of Tustin's 2005-2010 Consolidated Plan states that, according to police reports .and windshield surveys performed within the City of Tustin, most homeless persons migrate through Tustin to other parts of the County rather than stay for extended periods of time within the City. Thee:.. City's Police department estimates that there are 10-12 homeless persons residing in the City at any given time. There are numerous factors that contribute to homelessness in Tustin and Orange County. The known causes of homelessness include unemployment, limited skills, and a breakdown in the family as a social and economic unit. Additionally; cutbacks in social service programs and the de-institutionalization of the mentally ill during the 1980s have contributed to the homeless population. A new trend, however, is emerging " as a significant.: contributing element to homelessness: afast-growing lack of affordable housing, which could exacerbate any of the above conditions, but may increasingly become a stand alone cause of homelessness. ~ Although there are no established areas where homeless persons s congregate in the City, there are'several homeless services facilities in the City. Of the shelters in Tustin, the 45-bed Sheepfold shelter provides shelter, food clothing, job training, and job-referral services primarily to battered women and children. Guests are admitted on a first-come, first-served basis. Usually all beds are fully occupied. The shelter services a large area including many portions of Orange and San $ernardino Counties. Within the City of Tustin, there are a variety of Non-Profit Organizations (NPOs) that provide direct housing and related services to homeless persons. These include Village of Hope, an emergency/transitional home; Sheepfold, a feeding program affiliated with the United V~ay; Families Forward, . a homeless provider; Olive Crest, transitional homes and services for abused and neglected children, a and Laurel House, an emergency shelter and transitional housing provider for homeless youth in the City. Additional programs will also be provided at the Tustin Legacy site. A Homeless Assistance Plan has been established for MCAS, Tustin that is consistent with the continuum of care model embodied in the CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 19 2008 Consolidated Plans for the Cities of Tustin and neighboring Irvine. The fundamental components of the continuum of care system to be implemented with the MCAS Tustin Specific Plan would: ° Provide emergency shelter beds and intake assessment ° Offer transitional housing and services ° Provide opportunities for permanent affordable housing by the private sector. In the Tustin Legacy, the Local Redevelopment Agency owns sites and four homeless service providers: including„the Salvation Army, Orange Coast Interfaith Shelter, Families Forward, and Human Options have been approved and currently are operating 48 family units. The Orange County Rescue Mission operates a 192-unit transitional/emergency shelter (Village of Hope) and the Orange County Social Services Agency will operate a 90 beds facility for abused and neglected children and their family. Numerous other agencies provide shelter and other services to the homeless in the nearby .cities of Santa Ana, Irvine, and Orange. The Orange County Homeless Issues Task Force, anon-profit homeless advocacy organization, maintains a list of these and other homeless services in Orange County. Table HTM-16 is a list of organizations in Tustin that provide homeless services. TABLE H- S EMERGENCY SHELTER/TRANSITIONAL HOUSING FACILITIES CITY OF'I'US'11N Facility Services Provided Provides shelter, food, clothing, job training, and Sheepfold job-referral services to women with children. Temporary housing for teenagers in crisis. The Laurel House facility also provides food, informal counseling, and access to medical care and clothin . St. Cecilia's Distributes food supply to needy populations. Operates emergency food program where a Redhill Lutheran rson can receive food su 1 3 times a ear. Collects food supplies and distributes the food to Tustin Presbyterian various organizations involved in providing homeless services. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 20 2008 F' i Aldergate Refers interested persons to Ecumenical Services Alliance in Santa Ana. 192 beds transitional home at the Village of Hope Village of Hope to be operated by the Orange County Rescue Mission 90 beds intermediate care shelter for abused Tustin Family Campus children and their parents to be operated by the Orange County Social Services Agency. Salvation Army Six {6) new transitional units at Tustin Field I to be operated. by Salvation Army and Acquisition of 16 transitional units in Buena Park Salvation Army to be operated by Salvation Army. The City assisted iin acquisition and contributed grant funds to ac uire the units Fourteen (14) new transitional units at Columbus Families Forwards Grove to be operated by Families Forward, formers Irvine Tem or Housin in Irvine. Human Options Six (6) new transitional units at Columbus Grove to be operated by Human Options Orange Coast Interfaith Six (6) new transitional units at Columbus Grove Shelter to be operated by Orange Coast Interfaith Shelter. Although these units are located'in the City of Irvine, these units were negotiated as part of the base realignment/conveyance process which Tustin is the Local Redevelopment Agency. Source: City of Tustin, 200$ Additional discussion regarding land use regulations that apply to facilities serving the homeless is found in the Housing Constraints section of this document and in the Technical Memorandum. PRESERVATI4N,OF UNITS AT RISK OF CONVERSION. According to 2007 RHNA, Tustin has one project that contains units at risk of converting to unrestricted market rate during the 2006-2014 planning period. Tustin Gardens is a 101-unit Section 221(D)(4) project with a Section 8 contract for 100 units that is due to expire on July 13, 2008. .Projects financed under the Section 221(D)(4) market rate program alone have no binding income use restrictions. Current provisions under the law allow for the existing project to opt out of contracts or for HUD to terminate such contracts. The project owners CITY OF TUSTIN GENERAL PLAN 21 HOUSING ELEMENT 2008 of Tustin Gardens have indicated that they intend to continue or to accept the conversion of the project to individual Section 8 certificates (household by household income qualifying criteria). In addition to Tustin Gardens, there are at total of 177 units in three other bond financed projects (Rancho Alisal, Rancho Maderas, and Rancho Tierra) located in Tustin Ranch that are at risk of converting to market rate by 2012 . Table H-9 is an inventory of all multi-family rental units assisted under federal, state, and/or local programs, including HUD programs, state and local bond: programs, redevelopment programs, and local in-lieu fee, inciusionary, density bonus, or .direct assistance programs. The inventory includes all units that are eligible: to convert to non-lower income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. Various restrictions and incentives affect the likelihood that at risk units will convert to other uses. Congress passed the Low Income Housing... Preservation and Resident Homeownership Act (LIHPRHA) in 1991. This measure assured residents that their homes would be preserved for their remaining useful lives while owners were"assured of fair-market compensation. However, modifications to the Act in 1996 restored the- owners' right to prepayment, under the previsions that the.. owner would be encouraged to sell the property to resident endorsed or other non-profit organizations. Tustin Gardens is the'only project based Section 8 subsidized project at-risk of lasing affordability restrictions during the Housing Element planning period. However, it appears unlikely that the affordability of these units will be threatened based on the determination that project based Section 8 contracts can be renewed on an annual basis. Given the relative weakness of economic conditions and the current housing market, the city will proceed to negotiate the extension of affordability restrictions on these units. The amount of assistance provided will be negotiated based on the specific economics of each development and the potential availability of leverage financing, such as tax-exempt bonds and 4% tax credits. The total amount of funds allocated to this program during this planning period is $2,181,672. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 22 2008 Programs for Preservation of At-Risk Units: The City will make efforts to preserve units "at risk" at Tustin Gardens and the three projects owned by The Irvine Company in Tustin Ranch. The cost of acquiring and preserving the at-risk units is less than replacing the units with new construction. As discussed earlier, the City allocated $2,181,672 of the Redevelopment Housing Set Aside funds as the City enters into negotiation with respective property owners. Actual amount required to preserve these units is currently unknown. The City will also be looking at possible"'subsidizing units and/or work with nonprofits in the community to explore possible new construction of replacement housing by nonprofits or acquisition of existing buildings with at risk units by nonprofit organizations. The specific actions that the City will take to protect (or replace) at risk units -are identified in the Housing ' Element Implementation Program. 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O •~ ~ x 0 -~ ,~ ~ :~ v o 0 ~ ~ v ~ ~.~ ~~~ ~~ ~~ ~ V ~ Q W p*° '' ~ ~ ~ in ~ ~ ~ ~n '~ a • ~ ,, ~ . a. ~a ~ .~ a b ~. c d+ . Z ~ ~ a ~ ~ :.. p ~ o ~ ~ b a • o, ~ ~ o, ~ ~ O a, c 'o ~ a x ,. ~ ~ . a x ~ ~'o ~cn ~ "~~ ts C ° '~ 0 b ~ 0 b A ~ ~ ~ ` o 3 . . 3 ~ o a, ~ r ~ w ~ r ~ ~ ~ m '~ o 0 0 ~ ~ F ~ v ~ ~ ~ a Q a Q ~ Q v ~ v ~ ~ ~ ~ v v v~ 3 3 3 ~ „^; o 0 0 eo ^O v 3 z F ~ ~ a 0 a Q o 0 vo ~~ a •.+ ~ N v~ u N N Z ~ N O~ R O~ 6~ ~ U U y G • ¢.., ^o c G ~ .°U a ~ , ~ v ~ ~ O F H ~ UE~ UE -~ O a~ x w a c~ Q H G v v a 0 v v~ o~ ~ O zs ¢Q z~ zo w N a w c7 z 0 x N zz `n a Na w~ O Fz U C7 SUMMARY OF HOUSING ISSUES Housing is a fundamental component of land use within a community necessary to support the resident population. Obtaining affordable housing has become a problem for persons of all income groups in California. The following Table H-10 presents an overview of households in the City with special housing needs or problems with their existing housing, such as overpayment or overcrowded conditions. The following text highlights the issues relevant to the City of Tustin, which are addressed by the goals, policies and implementation plans. TABLE H- ltl SUMMARY OF EXISTING Ht}USING NEEDS CITY OF TUSTIN` 2006-2014 Growth Needs 1 Special Needs Group Ve Low Units 512 Elderl Personsz 4,804 Low Units 410 Disabled Persons>' 2,162 Moderate Units 468 Lar e Households3 3,095 Above-Moderate (Units) 991 Femal+~Headed Households with Children under 18 ears 1,700 TOTAL .2,380 Overcrowdin Ove a 'n Househol ds 1 Renter Owner 3,465 820 Renter -Total Renter-<80% MFI Owner -Total Dwner - <80 % MFI 3,080 2,fifi0 3,110 1,275 TOTAL 4,285 Total 8,569 ~ Regional Housing Needs Assessment, SCAG, 2007. z Persons age 65 and over. s Households containing 5 or more people. Sources: 2000 Census; Comprehensive AtTordable Housing Strategy 2005-2018. ° Overpayment. 44 percent of the City's lower income households (households which earn less than 8U percent of the County median) are currently overpaying for housing see Table HTM- 12). ° Overcrowding. Household overcrowding has increased over the past decade as individuals and families "double up" to save on housing costs. Over 18 percent of lower income households currently experience overcrowded conditions (see Table HTM-8). CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 27 2008 ° Housing Growth Needs. For the 2006-2014 planning period, SCAG identifies a housing growth need of 2,380 dwelling units in Tustin. These units are allocated among the following income categories: 991 above-moderate income units; 468 moderate- income units; 410 low-income units; and 512 very-low income units (see Table H-10). ° Large Families. 15.2 percent of City's households contain 5 more persons in the households. The average household size in the City was 2.91 in 2007, up slightly from 2.82 in 2000, largely due to changes in the ethnic composition. This indicates a potential need for larger housing units to accommodate these families {see Table HTM-14). ° Affordability Gap. Based upon available information on rental rates in the City, it is difficult to find rental housing that is large enough and affordable for large, low-income families (see Table HTM-24 and Table HTM-25). ° Elderly. As the City's population ages, the number of elderly persons will increase. This underscores an increasing need to address the special housing needs of the elderly (see Table HTM- 2). ° Disabled. Disabled individuals have particular housing needs relating to access and. adaptability. ° Female-Headed Parent Households. Female-headed households made up 18 percent of all families with children under 18 in Tustin in 2000. Many of these households have incomes below the poverty level and have special housing needs such as access to childcare services. ° Homeless. Growing numbers of homeless persons in Southern California have created particular housing and social service needs. The redevelopment of MCAS Tustin for civilian uses provides an opportunity for additional housing supply in the City including accommodation of the needs of the homeless and the need for affordable housing (see Table HTM-15). In addition, a group housing arrangement (with less than six (6) residents) in a single family home is not subject to a Conditional Use Permit (consistent with State Law). A group housing arrangement of over six (6) residents is classified as a boarding house. The R-3 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 28 2008 and R-4 zoning districts would allow for boarding houses with a Conditional Use Permit (CUP). post Time Homebuyers. High housing costs have put home ownership beyond the reach of many potential first-time homebuyers. Governmental Constraints. Governmental regulations, such as land use controls, fees, and processing procedures, can act as constraints to the maintenance and production of housing. Units at risk of Conversion to Market Rate. By State law, the City must identify and develop programs and policies to address affordable housing units that are a# risk of converting.. to market rate housing. During the X006 2014 planning period, the City of Tustin faces the potential conversion of 1001ow-income units (see Table HTM-27). ° Tenure. The City has a high proportion of renter-occupied housing as compared to other jurisdictions in Orange County. In 2000, 50.4 percent of the City's units were renter-occupied, compared to 38.6 percent renter occupied units countywide. Promotion of home ownership opportunities in the City may be necessary to maintain a balanced community {see Table HTM- 20). ° Housing Stock Condition. Over 64 percent of the City's housing stock is 30 years :old or older -the age at which housing typically begins ; to require major repairs. In addition, the lack of adequately sized affordable housing can lead to overcrowding and in urn, deteriorated housing conditions. Maintenance and -improvement of existing housing conditions over the long term will' require ongoing maintenance of existing units, rehabilitation or replacement of substandard housing and programs to maintain neighborhood quality (see Table HTM-21). Historic Resources. Older neighborhoods in Tustin contain several historic residences that should be preserved as part of the community's heritage. These historic homes were identified through an inventory of historic buildings in 1990. ° Target i\leighborhoods. A large portion of the City's lower income housing is concentrated in the southwest neighborhoods. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 29 X008 Targeted programs such as graffiti removal, proactive code- enforcement, loan and grant housing rehabilitation program, removal of abandoned vehicles, increased police presence, removal/trimming overgrown trees in public right-of-way, various physical improvements for street widening, and street lighting and alley improvements have been implemented. ° Energy Conservation. Due to its climate, the City can take advantage of solar energy to reduce reliance on non-renewable energy supplies. HOUSING CONSTRAINTS Actual or potential constraints on the provision and cast of housing affect the development of new housing...,... and the maintenance of existing units for all income levels. Market, governmental, infrastructure, and environmental constraints to housing development in Tustin are summarized below and discussed in greater detail in the Housing Element Technical Memorandum. Market Constraints The high cost of renting or buying 'adequate housing is a primary ongoing constraint. High construction costs, land costs and market financing constraints are contributing to increases in the cost of "`affordable housing. Constncction Costs: The 2005-2010 Tustin Consolidated Plan reports that the single largest cost associated with building a new house is the cost of building materials, usually comprising between 30 to 50 percent of the sales price of a home. These costs are influenced by many factors such as the cost of labor, building materials, and site preparation. The Residential Cost Handbook, published by Marshall & Swift estimates that the cost of residential two-story wood frame construction averages $87.85 per square foots. This estimate includes labor and materials, excluding the cost of land, off-site improvements, and indirect costs such as financing costs, escrow fees, property tax, etc. The costs attributed to construction alone for a typical 2,200 square foot, wood frame home would be at nunimum $193,270. s Two-story wood frame average quality for Orange County area CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 30 2008 A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing may provide for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced, based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Although it should be noted that the reduced costs are most attributed to a reduction in land> costs; when that cost is spread on a per unit basis. Land: Although the Consolidated Plan 2()05-10 reported that the single largest cost was related to construction costs, other factors such as the cost of land, depending upon the type of residential product and market condition is often a more significant cost than that of labor and materials. V1~ith the exception of the former MCAS Tustin site that is now referred to as Tustin Legacy, the City of Tustin is generally built out. This' scarcity of land within the developed areas of the City and the price of land on the fringes are constraints adding. to the cost of housing and pricing housing out of the reach of low- to'moderate-income families. Financing: Interest rates can have an impact on housing costs. Some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust for inflation will cause existing households to overextend themselves financially, and create situations where high financing costs constrain the housing market. An additional obstacle for the first-time homebuyer is the minimum down-payment required by lending institutions. Even if Tustin homebuyers are able to provide a 3 percent down- payment and obtain a 6.00 percent 30-year loan {loan rate for FHA or VA guaranteed loans for January 2008), monthly mortgage payments on median priced single-family detached homes in the City place such homes out of the reach of moderate and lower-income households in the City. At a 6.00 percent interest rate, monthly mortgage payments on median priced condominiums and CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 31 2008 townhouses can place such units out of reach of Tustin's low and very low income households {see Tables HTM-23 and HTM-25). The greatest impediment to homeownership, however, is credit worthiness. According to the Federal Housing Authority, lenders consider a persons debt-to-income ratio, cash available for downpayment, and credit history, when determining a maximum loan amount. Many financial institutions are willing to significantly decrease downpayment requirements and increase loan amounts to persons with good credit rating. Persons with poor credit ratings may be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. Poor credit rating can be especially damaging to lower-income residents, who have fewer financial resources with which to qualify for a loan. The FHA is generally more flexible than conventional lenders in its qualifying guidelines and allows many residents to re-establish a good credit history. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to report lending activity by census tract. Analysis of available HMDA reports does not indicate documented cases of underserved lower income census tracts in the City. Profif, Marketing and Overhead: Developer profits in the last several years in, Orange County generally comprise 6 to 9 percent of the selling price of single-family homes and slightly higher for attached units. According to the recently completed Comprehensive Affordable Housing Strategyb, minimum developer profit is estimated at 12 percent of development costs, based on input from developers and the Building Industry Association. This level is considered a baseline profit or "hurdle rate; ' representing the minimum necessary for the deal to proceed. In the past, due to high market demand in the communities like Tustin, developers were able to command for higher prices and realized greater margins for profit. As demand increased and prices rose, this profit margin was impacted by the escalating costs of land resulting from a shrinking supply of land. Marketing and overhead costs also add to the price of homes. The Comprehensive Affordable Strategy 2008 - 2018 estimated developer overhead is at 4 percent of total development costs. 6 City of Tustin Comprehensive Affordable Housing Strategy, 2008 - 2018. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 32 2008 Governmental Constraints Housing affordability is affected by factors in the private and public sectors. Actions by the City can have an impact on the price and availability of housing. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Land Use Controls: In efforts to protect the public's health, safety, and welfare, government agencies may place administrative constraints on growth through the.. adoption and implementation of land use plans and ordinances. The General Plan may restrict growth if only limited areas are set aside for. residential land uses, and if higher residential densities are not. accommodated. ,The zoning ordinance may impose further restrictions if development standards are too rigid, or if zoning designations do not conform to existing land uses. On the contrary, the zoning ordinance may also be utilized as a tool in encouraging and directing affordable housing, i.e. relaxed development standards, higher density, provision of incentives {waiver of fees, expedited' review process, etc.) in exchange of the production of affordable housing, etc. Tustin's existing zoning ordinance allows for a range of residential densities from an effective density of 4.35 units per net acre in the E-4 Residential Estate District to 24.9 units per net acre in the R-3 Multiple Family Residential District. Tustin's General Plan allows a maximum of seven (~ units per acre with effective density of 5.61 dwelling units per acre within the Low Density Residential sand use to a maximum of 25 units per acre with effective density of 21:53 dwelling units per acre within High Density Residential land use. A 10'units per net acre is also permitted in the MHP Mobilehome Park District (see Table HTM-32). The Planned Community District has authorized residential subdivisions with single-family lots of 3,500- 5,000 net square feet, which significantly increases density potential. Within the Multi-Family Residential District ~R-3), a 35 foot height limitation and 65 percent coverage precludes the development of housing projects with building height above the 35 foot limitation. In the interest of protecting adjoining single-family lot owners, multifamily structures above 20 feet in height require a conditional use permit when the structures are within 150 feet of single-family residentially zoned lots. While these height limits may place some CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 33 2008 restrictions on housing development, these limits are designed to maintain compatibility of land use intensity and to ensure proper and effective transportation within the community and are commonly used by local governments as a development tool to further this ideal Conversely, within Planning Area D of the MCAS Tustin Specific Plan, a 150 foot height limitation up to 180 foot if approved by the Community Development Director would be allowed which provides for layering products (i.e. stacked flats, podium styie, etc.) with mixed use developments, thereby providing opportunities for the development of higher density residential products. The Land Use Element indicates that residential development that supports commercial uses may also be permitted in the .City's Old Town Commercial area. A market analysis of the Old Town area prepared in conjunction with comprehensive 1994 General Plan Amendments, indicated that new multi-family residential development would be an important supporting use for the area s mixed-used commercial/retail development. As a result, the General Plan was amended in 1997 to permit up to 291 additional residential units in the Old Town commercial area. To ensure compatibility of residential uses with the commercial'area, the location, density, and building intensity standards for these residential units will be governed. by planned community regulations or adoption of a specific plan. The East Tustin Specific Plan provides for single-family detached products to be developed at a variety of densities. The Low Density designation requires a minimum lot area of 5,000 net square feet while the Medium-Low designation requires a minimum lot area of 3,000 net square feet and densities not to exceed 5 and 10 units per nel-acre respectively. The MCAS Tustin Specific Plan designation provides opportunities for development of a variety of residential products at varied density ranging up to 25 dwelling units per acre. The Final Joint EIS/EIR for the Disposal and Reuse of the MCAS-Tustin (hereafter referred to as Program EIS/EIR for MCAS-Tustin) for the reuse of the base identifies specific improvements needed to support residential development. The buildout of the MCAS Tustin Specific Plan is expected to occur incrementally over a 20+ year timeframe. The actual level of development within any given phase will be tied to CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 34 2008 the availability of infrastructure necessary to support such development. Implementation triggers of specific infrastructure improvements are included in the EIS/EIR for the project. The anticipated timing of residential development of the MCAS- Tustin Specific Plan is as follows: TABLE H-11 Anticipated Development at MCAS-Tustin Land Uses Acreage -'` Through 2011-2015 (gross) 2010 Low Density (1-7 DU/acre) 1822 1 630 Planning Area 4 and 21 , Medium Density (8-15 DU/acre) 5L7 1 396 116 Planning Area 5 , Medium to High Density (16-?S DU/acre) ~'4 568 Planning Area 20 Community Core (16-25 DU/acre) 111.7. 891 Planing Area 8,13, and 14 Transitional/Emergency/Social Services' 9.1 332 Total 384.1 " 4,817 116 ~ Rescue Mission 192 unit'project, 50 unit transitional housing to be operated by various non-profits and 90 bedstransitional housing to be operated by the County of Orange Social Services Agency. Notes: All figures are estimates as schedule will be impacted by market conditions. Figures in text are rounded fore discussion Purl~~'• Figures aze based on estimated antxipated development indicated in the environmental document for MCAS Tustin Specific Plan. Actval construction figures may be different. Source: Final Joint EIS/EIR for. the Disposal and Reuse of MCAS-Tustin, MCAS Tustin Specific Plan/Reuse Plan and its Addendum jCity of Tustin June 2007). Future market demand and the complexity and timing of environmental cleanup efforts are additional factors influencing the schedule of development. Other than the MCAS Tustin area, a large proportion of the small amount of vacant and underutilized land is located within Redevelopment Project areas within the City or Old Town. residential areas where infrastructure is available and no major improvements would be anticipated. Limited residential uses are also permitted in areas designated Public/Institutional provided the intended occupants are associated with the primary institutional uses. Additionally, homeless facilities are permitted by right in the MCAS Tustin Specific Plan and are allowed throughout the remainder of the City either as an outright CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 35 2008 permitted or conditionally permitted use depending on the number of residents in the project. Parking requirements in Tustin are generally two spaces per unit, with an additional requirement of one guest space per every four units in multi-family development. In response to State mandated requirements-and local needs, the City has adopted ordinances allowing for the development of accessory rental units and density bonuses. Beyond_ local requirements, state law created a sliding scale which allows developers to increase the density of a residential development by at least 20 percent up to 35 percent provided that certain numbers of units. are allocated for lower and moderate-income housing. In addition, in response to state-mandated requirements and local needs, the City allows for second dwelling units. Second units serve to augment resources for senior housing and the needs of other segments of the population. Second dwelling units are outright permitted in residentially zoned properties that are at least 12,000 square feet in lot size. A wo-car gazage is required. The City's land use regulatory mechanisms accommodate the development of housing at a range of densities and products and do not constrain the: potential for: new construction at densities suitable to meet the needs of all income ranges, although assistance may be required for units offered at prices affordable to lower income households. Homeless'Accommodation .Homelessness is a statewide concerns that affects many cities and counties. Throughout the country, homelessness has become an increasing problem Factors contributing to the rise in homeless include the general lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level, reductions in public subsidy to the poor, and the deinstitutionalization of the mentally ill. The issue of homelessness is considered regional in nature. Nomadic tendencies of homeless persons make it difficult to assess the population accurately. Within the City of Tustin, Police reports and windshield surveys indicate a limited numbers of persons on the street and have shown that there are no established areas where homeless persons congregate CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 36 2008 in the City and that most persons migrate through Tustin to other areas within Orange County, rather than stay for extended periods of time. Information regarding the nature and extent of homelessness by racial and ethnic groups is not available at this time. l~levertheless, in response to Senate Bill (SB) 2, statute of 2007, the City is required to engage in more detailed analysis of emergency shelters, transitional, and supportive housing (See Technical Memorandum for further details). SB 2 requires cities to identify the needs for. emergency shelters in its Housing Element and to designate zoning districts adequate to accommodate the need. In those 'districts, emergency shelters must be allowed without a conditional use permit or other discretionary permit. Within the City of Tustin, emergency shelters, transitional homes, and supportive housing are designated as permitted uses within Planning Areas 1 and ~ of the MCA5 Tustin Specific Plan. 1n addition, community:. care facilities such as group homes, foster homes, elderly care facilities, etc. with six {6) or fewer people are outright permitted within any residentially zoned properties. Table HTM 11-A summarizes zoning regulations for homeless accommodation. TABLE H-11A SUMMARY OF HOMELESS ACCOMMODATION ZONING REGULATIONS Permitted/ Housing Type Conditionally Zoning Permitted Transitional'Home Permitted Planning Area 3 of MCAS Tustin Specific Plan Emergency Shelters permitted Planning Area 3 of MCAS Tustin Specific Plan Supportive housing Permitted planning Areas 1 and 3 of MCAS Tustin Specific Plan Community Care Facility for six (6) or Permitted All residentially zoned fewer properties Family care home, foster home, or permitted All residentially zoned group home for six (6) or fewerl properties ~ Includes congregate care facility, single room occupancy hotel, and children's intermediate caze shelter Source: City of Tustin CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 37 2008 The following are transitional homes that have been provided at Tustin Legacy. • A 192-bed transitional home at the Village of Hope to be operated by the Orange County Rescue Mission. • A 90-bed intermediate care shelter for abused children and their parents to be operated by the Orange County Social Services Agency. • Six (6) new units at Tustin Field I operated by Salvation Army. • Acquisition of 16 units in Buena. Park operated by the Salvation Army. The City assisted in acquisition and contributed grant funds to acquire the units. • Fourteen (14) new units at Columbus Grove :.operated by Families Forward, formerly Irvine Temporary Housing. • Six (6) new units at Columbus Grove operated by Human Options. • Six (6) new unify. at Columbus Grove operated by Orange Coast Interfaith Shelter. With the exception of the transitional homes, these units are transparent and dispersed through out the community consistent with the City's goals and policies to provide adequate supply of .housing to meet the need for a variety of housing types and the diverse socio-economic and to promote the dispersion and integration of housing for all socio-economic through out the community. The Cis policies for homeless accommodation do not create constraints in the location of adequate emergency shelters, transitional homes, shelters, and supportive housing. In addition, current provision of homeless accommodation supports not only the need of the city but the county as well. Fees and Improvements: Various fees and assessments are charged by the City and other outside agencies (e.g., school districts) to cover costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. These fees are assessed based on the concept of cost recovery for services provided. ~ Although these units are located in the City of Irvine, these units were negotiated as part of the base realignment/conveyance process which Tustin is the Local Redevelopment Agency CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 38 2008 Tustin is urbanized with most of the necessary infrastructure, such as streets, sewer and water facilities in place. Nonetheless, site improvements can significantly add to the cost of producing housing. Cost-effective site planning or use of housing set-aside funds for those projects within redevelopment project areas can nLn;m;~e site improvement costs. The Housing Element Technical 1Vlemorandum describes in detail required site improvements and provides a list of fees associated with development (Table HTM-34) Development fees are not considered a constraint to housing. However, fees do contribute to the total cast of development and impact the final purchase or rental price. Building Codes and Enforcement: The City of Tustin adopts the Uniform Construction Codes, as required by State .law, which establish m;nimum construction standards as applied to residential buildings. The City's building codes are the m;n;mum standards necessary to protect. the public health, safety and welfare and ensure safe housing. C-nly local modifications to the codes are made which respond to local climatic or geographic conditions and clarify administra#ive procedures. Although not mandated to do so, the City has adopted the State Historical Code that relaxes building code requirements citywide for historic structures/buildings. Adoption of codes reduces rehabilitation costs. Local Processing and Permit Procedures: The evaluation and review process required ; by City procedures contributes to the cost of housing. State law establishes maximum time limits for project approvals .and City. policies provide for the uLn;mum processing time .necessary to comply with legal requirements and review procedures. The Community Development Department serves as the coordinating agency to process development applications for the approval of other in-house departments such as Redevelopment Agency, Police, Public Works/Engineering, and Parks and Recreation. All projects are processed through plan review in the order of submission. The City has eliminated the potential increase in financing costs caused by a delay in permit processing by assigning priority to the plan review and permit issuance for low- income housing projects. If a complete application is submitted, all CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 39 2008 Design Review Committee members and plan checking departments simultaneously review the plans. This process provides fora "one- ~~ stop processing system. For projects of significant benefit to the low- income community, costs can be waived by the City Council or the use of redevelopment set-aside funds can reduce or eliminate these costs to the developer. Workload: Another governmental constraint is the number of staff and amount of staff time available for processing development projects. Since the workload is ..determined by outside and uncontrolled forces (economy and market for housing and availability of general fund revenue), a shortage. of staff time may occur which could lead to increased processing time for development projects. HOUSING OPPORTUNITIES Table H-12 shows the existing and potential dwelling units permitted under each General Plan land use category, as well as the potential net increase within each:: category. Based on the City's Land Use Plan, Tustin has a residential holding capacity of approximately 29,793 dwelling units. The Land Use Plan provides for a mix of unit types and' densities, including low-density single-family homes, medium density homes, higher density homes, and mixed-use projects that ' allow for a combination of commercial and residential uses. A large portion of future residential development in the City of Tustin will take place in the MCAS Tustin Reuse Specific Plan area. The other large Specific Plan community in Tustin, Tustin Ranch (the East Tustin Specific Plan) has been built out. Between 2006 and 2008, 1,076 units were constructed in the City of Tustin. A total of 322 Very Low` Income, 48 Low Income, 57 Moderate Income, and 649 Above Moderate Income were built mostly at Tustin Legacy. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 40 2008 H w H O a. H W a 0 w W ~ Q x~,g W ~ W N Q Q H W z Q 0 H W Q d a tQ ~+ v ~ ~ ~ ~ ~ ~ ~ ~ ~ \D ~ a" p N ~ V~ 00 N ~O Cn C V~ C~ v i0 'b a,~ w n~i ~ t7 0 c " ~ o ~ o 0 o g ~ , ~ ,jr" ~ +. 4/ N ' ~ ~ C Q ~ ~" 7+ a >~~ O ~ oQ O O O O O ~ v ~, ~ ~ r, 00 ~~ a ~~ O to N,~ O O D O O M m W w y d~ O O ~ ~ :~ t~a~~ O ~ ~ O ^ O O O ~ ~ ~,~ ~ d' .~: Q ~ ~ a ~ O ~ N O N 0 0 ~ y„ N L` 00 M O w ~ d ~ ~ ~ o ~ ~ ~ ~ QD a N O N M ei+ N r.r ~ /~ M1..I W ~ ~ ~ ~ ~ C ~ R r+ '~ R r' G ~ ~ T3 ~ ~ a C ~ a, y v ~ x i G :~? ~ w in ~ .~ y c~ .a V ~ .~'' ~ ~, ~ cn ~' v ... °' Q `~ 'y u~ U cC ~ O ~0 ~ Q ~ (] , a~ ~ ~ ~ ~ ~ F, 3 ;~ ,~ a ~ A :a~ Q R :a~o Q a° ~ ~ H-~ a°~ ~00 z-v ~~ ~ ~ a a ~: ~ zo ~ ~ O a W z ~ m Q o ~ x v .~ ~ g Ft G v w a °° ~" a ~ O v ~ ~ O ~ ~ ~ .~ ~ A o b S9 Vl :3 F ~ '.: oG] ~ c'rRi ~' ~ . ~ +r U ~ y aA ~ Q+ .~ :~ ~ p ~ ~~ ~ v~ G, ~ •~ ~ O ~ bA ~' ~ eyu ~a c ~ .~ ~ ~ ~ 0 0 F v , p , ~ v H ~~ ~ ~ o '7 v zz H d zc.~ ~ `aa c ~ ~ ~ .a w~ Ow ~z ~w U~ Table H-13 illustrates Tustin's progress in achieving RHNA construction needs for the 2~6-2014 planning period. As of_2008, the City has satisfied approxirnately 45 percent of its total RHNA Construction Need. TABLE H-13 PROGRESS TOWARD RHNA CONSTRUCTION NEEDS 2006-2014 CITY OF TUSTIN: ncome Cate o RHNA Construction Need 2006-2014 Units Added 2006-2008 Net RHNA Construction Need 2008-2014 Ve -Low 512 322 63% 190 Low 410 48 12% 362 Moderate 468 57 12°,6 411 Above Moderate 991 649 65% 342 Total 2,381 1,076 45% 1,305 t Source: 2W7 RHNA; City of Tustin, Redevelopment Agency and Community Development Department. Table H-14 illustrates the residential development potential of the vacant and underutilized land inventory in the City of Tustin. The Tustin Legacy site {formerly MCAS Tustin) presents the City with 389.2 acres.- suited for residential development that could accommodate an additional 4,049 units. During the planning period, the majority of the anticipated units will be accommodated at Tustin Legacy and is being implemented through both the adoption of a Specific Plan by'the City and the adoption of a Redevelopment Project Area. Based on State Redevelopment Law and the proposed Specific Plan requirements, at least 15 percent of the units (607 units) constructed at the MCAS Tustin site will be affordable to Very-Low, Low, .and Moderate-income households, of which at least 6 percent or 243 units must be affordable to Very Low-income households. The remaining 364 units would be distributed among the Low and Moderate income households by utilizing RHNA Low and Moderate income percentages. In addition to these inclusionary obligations, the acreage and densities permitted by the MCAS-Tustin Reuse Plan would create 282 additional for Very Low-income households (192 transitional housing units and 90 social services housing units). CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 42 2008 Aside from MCAS Tustin, additional sites are located either within existing Redevelopment project areas or in Old Town Tustin area. Sites that are located within the Redevelopment Project area subject to Redevelopment Law as well. As a means to ensure affordability and the use of housing set-aside funds, the City and its Redevelopment Agency will require developers to provide at least 15 percent of all units constructed or rehabilitated at prices affordable to Very Low, Low, and Moderate Income households consistent with State Redevelopment Law affordable housing requirements. The City's Redevelopment Agency aggressively.. negotiates affordable housing units with individual potential project. An example of approved infill site is the development of a fifty-four (54) unit affordable senior housing project an a 1.76 acre site. The .project was granted atwenty-five (25) percent density bonus above the City's maximum allowable density. In addition, the City entered into a Disposition and Developer Agreement with the developer to issue loans not to exceed $600,000. The loans are secured by loan agreements, promissory notes and deeds of trust, along with Regulatory Agreement and Declaration of Restrictive Covenants to be recorded against the property for a period of not less than 55 years. The project is 100 percent affordable to very low and low income seniors. The remaining capacity in Old Town Tustin will be achieved through recycling of underutilized and vacant infill sites (see Figure 1). According to the .City's Land Use Element, the sites in Old Town Tustin area are able to accommodate an overall population range for residential use of 2-54 persons per acre8. The Land Use Element `further identifies the potential development of dwelling units in the Old Town Commercial area, which will be facilitated by the proposed adoption of zoning regulations and development standards which will allow mixed-use development (see Program 1.21 of Table H-22 Housing Element Programs). This development potential is supported by the market analysis of the Oid Town area. To further create housing opportunities, the City provides the issuance of tax-exempt bonds for the development of affordable s See Table LU-3 - "Future Land Use Density/Intensity and Population Capacity of the Land Use Plan' in the City of Tustin General Plan Land Use Element, January 16, 2001. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 43 2008 housing through a Joint Powers Authority with the California Statewide Communities Development Authority. Other means would include the City's participation in the State and Federal programs such as the Low- Income Housing Revenue Bond Financing program, Low Income Tax Credits, CHFA financing programs, and others. Additionally, a Density Bonus Ordinance is available and can be applied to infill sites to increase allowable density and the Tustin City Code also provides for a Planned Community District which allows flexibility in site development standards such as the creation of smaller lots to allow for higher density. As demonstrates in Table H-14, there' are a total of 151.69 acres of land (74.10 acres from MCAS' Tustin, 7.27 acres vacant land, and 70.32 acres underutilized land) with High Density residential development potential. These sites could potential be developed with approximately 3,426 units. This demonstrates that the City has sufficient amount of'land available to accommodate the residential developments to meet the remaining RHNA construction needs through the 2014 period. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 44 2008 a H W O a W O W W Q H z W H Q ax H z A a x W z z H v d a ~ w Q 0 V M ~A 0 M d o ~ ~ A ~ a ~ ' ° ~s ts . a ~~ Q b o~ w '~ ~ N b +. 6~i ~ C Q b c ~ ~ o 0 a u ° A ~ ~d ~ ~ 1 u d Q rn pp o N ~ e-i ~-i ~ ~-+ ~' c!i ° ~ O ~ N O~ ~ N v U Q ~ ~p ~ N W Q~ pp N ~p O ~' h ~+ M ( c 'L 6 t`1 h Oi ~ ~ Q € '} ~~ R ~ ~ ~ ~ a ~ a ~ Q ~' ~ ~ c; v ~ ' j 'C ~ ¢ a , ~ ~ ~ ~ ° ~ ~ ~ .~ o a ¢ ~ v z ° a Q ~ ~ ~, o ~ ~ Z ~' ~: b C ~ ~ ~ ~ O ~ ~ ~ ~' ~ ~ N ~ ~ .. x O ~, ~ O w u ~ Q ~ .~ ~ o ~ ~ Q ~ x~ ~ ~ ~ o o, ~ ~ Q ~ ~ ~a ~ ~° v -c .~ ~ ~ ~ ~ ~ -~ ~ ~ ~' w A ~ ~ o ~ v ~ O o t~ v ,-~ oo ,r, o ~ .r ~' 3 ~ ~ r' v ,b .a a v u u ~ '° • U° . a v a r' ~ O0 x ''" ~ '"" cn ~ ~ '-' ~ °0 ~ '-' cn a . a w a. a. cn .. zo ~ ~ ~° ~ g W ~ W o ~ ~ ~ ~ ~ o ~ ~ ~ G ~ ~ ~ ~ v G v '-" O ~ .~ y ~' 3 H `~ ~ o v~ 6~ u .~ o v ~m r% ~ o ~ t° v ~~jy .~ b Q ~ o ~ ~ 3 G ~r o ~ °J a..~ 'cs a mm rx :.~ N , O 3 .~ O v f ~ ~ ~ 0. Cn i~~ ~ ~ ~ v ~ ~ N "~ >~ i~~ ~ v 3 i ~ a a G p o ~ i a .c ~~~ ~ ~~~v i R ~ ~ 4 a .5 °" :: ~ ~G~yJj 'Ci 41 [Y R ~~ ~ ~ ~~~ u aa~ ~ G "'~ ~ V) $, 3 a .s ~ H id n'f~ ~>~ u zz i °Q ~ ~~~ ~ ~a '~ "o", a ~ .Q¢~ v o O W ~,~~ ~z v ~ c~ .53°~ "a r r. ~ Figure 1 and Table H-15 detail the zoning designations of vacant and underutilized land in Tustin. The vacant and .underutilized land inventory includes land that is currently zoned medium- and high- density residential and land that could potentially be designated as high-density residential. Although the availability of vacant and underutilized land for the .provision of housing is not considered a constraint for the 2006-2014 planning period, future planning periods may be marked by a lack of available land. While the City's Land Use Plan provides an adequate land capacity to fulfill housing needs, current development costs in Tustin may preclude the private housing market from providing affordability for low and very low- income households without subsidies. Necessary infrastructure improvements and litigation constraints may cause some delays in the build-out development of the MCAS Tustin project. Satisfaction of the City's quantified objectives through new construction will be heavily dependent upon real estate market trends, cooperation of private funding sources, and available funding and programs at the local, county, state and federal levels. 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V A a LOO LOO a a a. a w T~ ~ ~ g ~ S ~ g ~ g ~ L L L L L I3 Y3 oo a [~ eo '~ H oo ~ F eo a H oo a F ~ ~ ~ ~ N N N po t~ ~ ~ ~ ~ ~ ~ ~ v 00 b m a ~ ¢ N .~~ ~+ ~ 0. a v Q v v a ~ ~. > ~. ~~~~ G .~ '~ .{7 ,~„ a O .~ ~j~ Q ^" O G L~' G 'd A d' a ~t~ U v V ~~ G v ~~ v~ ~~ d CL 'C~3 R W v r N ~ O V V~ ~ op N.; ~ y 7 W >, ~ a : b b ~a .s w 5fi~ a d ~° A e 6 a °" , s 6 + a c ~ ~ ~ ~ ~ o e , ~ 6 ,, ~, o ,a ~' U l p~ i C O ~, ~ N ~ ~ R a V ~ r . . .,' u O iD 5 ~ ~~ 'q O C C q6s ~ '+ w d ~ a ~ 'O OD p ^y C G a' ~ ~' N c.'~ 6 a Q o v o a ~~ ¢ ., , d ~ A fidgd a H o ~ c b~~ ` w v < d L O 'b a ~ ~ N '~' C .d O~ G d ` d ~`'~ V .. ~0. ~ ~w :: ~a.cr.m~n g ~- o0 Wo° N W W z .~ O x z z `° a E_- a ~~ Ow ~z ~w U V H~ za w ~N w a w z 0 x 0 w 00 c N zz ~~ ~a ~~ w~ ow ~z ~w U~ HOUSING ELEMENT GOALS AND POLICIES This section of the Housing Element contains the goals and policies the City intends to implement to address a number of housing-related issues. To implement the Housing Element, the following five major issue areas are identified with related goals and policies: 1) ensure that a broad range of housing types are provided to meet the needs of existing and future residents; 2)' provide equal housing opportunities for all City residents; 3) ensure a reasonable balance between rental and owner occupied housing; 4) preserve existing affordable housing; ~) promote conservation and rehabilitation of housing and neighborhood identity; and 6) ensure housing is sensitive to the existing natural and built environment. HOUSING SUPPLY/HOUSING OPPORTUNITIES Tustin is home to persons requiring. a variety of housing options. At different stages in their lives, people require different housing arrangements. Additionally, the City must respond to the housing needs of all economic segments of the community and ensure that housing discrim;,,ation does not serve as a barrier. It is also important that the City maintain a balance of housing types and that the City's housing stock is not overly skewed towards the provision of one type of housing. Finally, the continuing need for affordable housing in the region requires the City to attempt to preserve Low- irtcome housing units that are at risk of converting to other uses. The City used the following goals and policies to achieve the above objectives:. GOAL 1: Provide an adequate supply of housing to meet the need for a variety of housing types and the diverse socio-economic needs of all community residents. Policy 1.1: Promote the construction of additional dwelling units to accommodate Tustin's share of regional housing needs identified by the Southern California Association of Governments {SLAG), in accordance with adopted land use policies. Policy 13: Apply available Tustin Community Redevelopment Agency financial resources to meet the requirements of any identified "'Opportunity Sites' as part of the Tustin "Town Center- A CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 53 2008 New Beginning" comprehensive implementation study to respond to RHNA requirements. Policy 1.3: Examine potential increases in residential density as part of the "Town Center-A new Beginning" implementation study as it specifically impacts the Center City Study Area (a portion of which is within the Town Center and South Central Redevelopment Project Areas), the Southern Gateway Study Area (a large portion of which is within the South Central Project Area),`--:`and the West Village Area generally located west of the SR-5.5 Freeway between McFadden Avenue and Main Street to assist 'the City ` in accommodating its housing needs. Policy 1.4: Pursue smart growth principles by supporting the construction of higher density housing,...:, affordable housing, and mixed use development (the vertical and horizontal"' integration of commercial and residential uses) in proximity to transit, services, shopping, schools, senior centers and recreational facilities, where possible. Policy:::. 1.5: Consider site .scoring, income targeting, and other selection criteria for competitive funding sources for affordable housing, such as Low Income Housing Tax Credits, when allocating Agency resources for affordable housing to maximize leverage of Local funds. Policy 1.6: Continue to implement best practices for developer selection, .project ''underwriting and due diligence for affordable housing developments that receive financial and other assistance to ensure long-term viability of affordable housing and to ensure the maximized leverage of local resources. Policy.: 1.7: Preserve affordable housing units, where possible, through actions surh as the maintenance of a mobile home park zone, restrictions on R-3 zone uses to preserve the multiple family residential characters, facilitate resident access to funding sources for preservation of low income and assisted housing. Policy 1.8: Promote the dispersion and integration of housing for low- and very-low income families throughout the community as opposed to within any particular geographic area, neighborhood, or project. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 54 2008 Policy 1.9: Encourage the County of C-range to exercise its responsibilities for housing accommodations for low- and very-low income families within Tustin's sphere of influence. Policy 1.10: Utilize the Tustin Community Redevelopment Agency's authority, where feasible, to assist in creating opportunities which will expand opportunities for development of affordable housing in the community. Policy 1.11: Allow second (attached/detached) units in single- and multi-family districts consistent with the Tustin City Code. Policy 1.12: Utilize Planned Community Districts. and Specific Plans to authorize and promote a variety of lot sizes and housing. types. Policy 1.13: Promote cluster housing consistent with General Plan land use density standards to reduce the cost of housing construction. Policy 1.14: Encourage the availability of affordable housing for special needs households, .including large, low-income families. Special needs households include the elderly, large families, female-headed households, households with a disabled person, and the homeless (see discussion under Summary of Housing iVeeds for Special Needs Groups). Policy 1.15: Encourage incentives to assist in the preservation and development of affordable housing such as 1) reducing permit processing, time and waiving or reducing applicable permit fees; 2) on-site density bonuses when appropriate; 3) tax-exempt financing '`including continuing to make use of the City's membership in the California Statewide Communities Development Authority to provide opportunities for developer assistance in pre-development and development financing of affordable housing programs; 4) flexibility in zoning or development standards; and 5) other financial incentives using Tustin Community Redevelopment Agency housing set-aside funds and a variety of special State and Federal grant and housing programs. Policy 1.16: Use tax increment housing set-aside funds of the South Central, Town Center, and MCAS Tustin Redevelopment Areas to CI'T'Y OF TUSTIN HOUSING ELEMENT GENERAL PLAN 55 2008 assist in constructing, rehabilitating, and preserving low and moderate income housing within the jurisdiction of the City. Policy 1.17: Encourage the design and occupancy of housing for senior citizens and the disabled. Promote the construction or rehabilitation and adoption of dwelling units accessible to seniors and/ or the disabled. Policy 1.18: Provide continued support for the County Homeless Assistance Program and other homeless assistance programs within Tustin and in adjacent cities, including the continued use of the City's membership in California Statewide Communities Development Authority to issue private activity mortgage bonds in support of these programs Policy 1.19: Encourage the provision of grants and technical assistance to various organizations and agencies that provide assistance to persons `with special needs such as the homeless, disabled, low-income,,and elderly persons. Policy 1.20: Participate 'in federal and state housing assistance and rehabilitation programs aimed at assisting households in need. Policy 1.21: Utilize design criteria in evaluating projects to ensure compatibility with surrounding developments, while taking into consideration ways to m;nim;ze housing costs. Policy 1.2~: Promote and encourage non-profit and for-profit private sector interests to use available federal and state programs for new or rehabilitated affordable housing. Policy 1.23: Support state-enabling legislation for employers to contribute to the cost of housing for their employees. GOAL 2: Ensure equal housing opportunities for all existing and future City residents regardless of race, religion, ethnicity, sex, age, marital status or household composition. Policy 2.1: Promote equal opportunity housing programs within the community. Policy 2.2: Provide active support to provide fair housing opportunities. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 56 2008 Policy 2.3: Support programs to match elderly and low and moderate-income individuals who want to share housing costs in a joint living arrangement. Policy 2.4: Support public and private efforts to eliminate all forms of discrimination in housing. Policy 2.5: Minimize displacement of lower. income and special needs households, whenever possible, to ensure that displacement is carried out in an equitable manner. GOAL 3: Increase the percentage of ownership housing to ensure a reasonable balance of rental" and owner-occupied housing within the City. Policy 3.1: Encourage new housing- construction for home-ownership in a mixture of price ranges. Policy 3.2: Examine existing City and Agency home purchasing assistance programs for low- and moderate-income households, including down-payment assistance, -and mortgage revenue bond financing, and recommend program modifications to make them more effective in the cuxrent housing market. Policy 3.3:,Encourage rental unit conversion and aitemative forms of homeownership, such as shared equity ownership and limited equity cooperatives where feasible. Policy 3.4: Examine existing condominium conversion standards to promote renovation of existing units through rental conversion. GOAL 4: Preserve the existing supply of affordable housing in the City. Policy 4.1: Continue to use Federal and State housing initiatives available for low-income households. Policy 4.2: Monitor all federal, state and local funds available to preserve and/or replace lower i~ome units at risk of converting to market rate housing, including tax credit bond financing and redevelopment tax increment funds. CITY OF TtJSTIN HOUSING ELEMENT GENERAL PLAN 57 2008 Policy 4.3: Assist non-profit organizations in securing the resources necessary to preserve/replace lower to moderate income units at risk of converting to market rate housing. Policy 4.4: Consider incentives to non-profit housing and for-profit private sector interests to purchase and/or maintain lower income units at risk of converting to non lower income housing. Policy 4.5: Take advantage of favorable market conditions, as appropriate, to pursue early negotiation and preservation of at-risk affordable housing through extension of existing affordability restrictions. MAINTENANCE AND CONSERVATION Maintenance and preservation of a City's housing stock prevents unhealthy living conditions; eliminates the need for future, more costly housing rehabilitation;. prevents neighborhood deterioration; and encourages community pride. The City enforces codes and provides incentives to promote main#enance and conservation. GOAL 5: Conserve, maintain, rehabilitate, and/or replace existing housing in neighborhoods which are safe, healthful and attractive, in accordance' -with adopted Land Use Policy. Improve the residential .character of the City with an emphasis on revitalizing neighborhoods showing signs of deterioration. Promote conservation of the City's sound housing stock, rehabilitation of deteriora#ed units where they may exist Citywide, and elimination of dilapida#ed units that endanger the health, safety and well being of occupants. Policy 5.1: Through available financial incentives, encourage owners of rental housing units that are determined to be substandard, in need of repair and a hazard to the health and safety of the occupants to remove and replace or rehabilitate the structures. Policy 5.2: Promote the availability of funds for the rehabilitation of single-family dwellings and apartments. Policy 5.3: Periodically evaluate .housing conditions and, when appropriate, address any increase in deteriorated housing conditions. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 58 X008 Policy 5.4: Continue to enforce health, safety, and zoning codes to eliminate conditions which are detrimental to the health, safety and welfaze of residents. Policy 5.5: Promote preservation of historic and architecturally significant residential properties. Policy 5.6: Study and revise existing zoning codes, if warranted, to provide flexibility to facilitate additions and improvements to existing historic and architecturally significant residential properties. Policy 5.7: Review existing guidelines for single- and multi-family rehabilitation programs, including income targeting and neighborhood location,..: to achieve.. maximum .neighborhood revitalization, particulazly around identified Opportunity Sites as part of the Town Center-A New Begiruung Implementation Study. ENVIRONMENTAL SENSITIVITY Housing. ,design and land use patterns can have substantial impacts on the natural as well as the built environment. City policies and programs seek to m;n;m;~e negative environmental impacts. GOAL 6: Ensure that new housing is sensitive to the existing natural and built envirorunent. Policy 6.1: Attempt to locate new housing facilities in proximity to services and employment centers thereby enabling walking or bicycling to places of employment. Policy 6.Z Promote energy conservation measures in the design of new housing units and the redevelopment of older housing units. Policy 6.3: Require design review of lot placement in subdivisions to maximize passive solar energy and solar access. Policy 6.4: Promote water efficient landscapes, efficient irrigation, and use of permeable paving materials. Policy 6.5: Streamline processing for approved green building. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 59 2008 Policy 6.6: Consider, support, or partner with utility companies to promote energy rebate programs. RELATED GOALS AND POLICIES The goals and policies described in the Housing Element are related to and support the goals and policies included within other General Plan elements. Many goals and policies from the other elements directly or indirectly support the goals and policies of the Housing Element. These supporting goals and policies are identified in Table H-16. TABLE H-16 HOUSING RELATED GOALS AND POLICIES BY ELEMENT RELATED GOALS AND POLICIES BY ELEM ENT Housing Land Conservation) Public Growth Issue Area Use Housin Circulation O en S ace Saf Noise Mana ement 1.8,10.2, Housing 13.3,13.4, ortunities 13.10 1.1,1.10 2.5, 3.1, 4.1 Maintenance 1.1, 4.6,,5.8, 3.4, 3.5, and Preservation 6.4, 6.6 5.4 1.7, 22 Affordable Housing Support Service/ Fair Housin 5.3 4.1 3.6, 9.6, Environmental 9.7, 9.8, ':1:14,1.17, 3.3, 4.8, 1.11, Sensitivi 13.1 3.5 2.12, 3.1, 4.1 4.12 1.12 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 60 2008 HOUSING ELEMENT IMPLEMENTATION PROGRAM The Housing Element Implementation Program provides specific actions the City intends to undertake to achieve the goals and policies of the Element. This section identifies quantified objectives, available financial resources and affordable housing resources, and provides a list of specific programs the City intends to pursue. Housing programs include those currently in operation and new programs added to address housing needs. A description of each program is> provided, along with the program funding source, responsible agency, and time frame for implementation. A review of City's past performance on housing element implementation programs is contained in Appendix A of the Housing Element. FIVE YEAR QUANTIFIED OBJECTIVES 2006-2014 State law requires the City to accommodate its fair share of the State's housing need. In=doing so, the City must quantify the number of homes that are projected to be built and conserved. The following quantified objectives are adopted as guidelines toward meeting Tustin's housing needs through 2014. It is important to note that while the quantified objectives of the RHNA are required to be part of the Housing Element and the City will strive to attain these objectives, Tustin cannot guarantee that these needs will be met given its own limited financial resources and the present affordability gap. Satisfaction of the City's regional housing needs will partially depend upon cooperation of private funding sources and the funding levels of County, State, and Federal programs that are used to support the needs of the very-low, low and moderate-income persons. Additionally, outside economic forces heavily influence the housing market. New Construction Objectives The City of Tustin promotes and encourages the development of a variety of housing opportunities to accommodate current and projected housing needs which include 512 very low-, 410 low-, 468 moderate-, and 991 above moderate-income households per the Regional Housing Needs Assessment (RHNA) allocation. While the Land Use Plan provides adequate sites to fulfill needs established by RHNA, construction of new units will depend upon the timing of the landowner and developer in the submission of building plans to meet market demands. Housing subsidies will depend upon the availability of government funds -local, County, State, and Federal. Redevelopment projects axe subject to the interests of private CITY OF TLTSTIN HOUSING ELEMENT GI/NEIZAL PLAN b 1 2008 developers. The construction of secondary units depends upon the desires of the property owners as related to family needs for housing and economic resources. The achievements of the housing objectives are thus dependent upon the private sector and other governmental agencies. The responsibility of the City is to encourage the construction of affordable housing by providing programs and assistance to developers and to assist in its creation by facilitating the review and approval of development permits. Table H-17 provides new construction housing objectives for the period 2006-2014. With the exception of the MCAS-Tustin, all sites identified in Table H-17 are privately owned. Units identified are broken down into various income limits in light of RHNA percentages and production requirements under the Redevelopment Law. Based upon past development trends (Tustin Grove and Ambrose Lane) that utilized Planned Community Districts to allow for higher densities, the actual number of units created could be higher than identified. The City' will strive to ensure that newly constructed units are developed at sufficient densities to assist in fulfillment of low and very low income needs by employing inclusionary zoning for those sites located within redevelopment project areas, mixed use zoning in Old' Town Tustin, density bonuses`"particularly in infill sites to allow for increase densities to accommodate affordable housing developments, and Planned Community Districts to allow for flexibility in development standards. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 62 2008 TABLE H-17 NEW CONSTRUCTION QUANTIFIED OBJECTIVES SUMMARY CITY OF TUSTIN 2006-2014 Very Total # Low Low Moderate Upper Pro am of Units <50% <SO% 80-120% 120%+ tvFw ~nnt~TUUr~rrc~rt MCAS Tustin Housin Unitsi 3,645 1994 2204 3424 2,884 MCAS Tustin Emer en Hous' 2 192 192 MCAS Tustin Transitional Family Housin 49 49 MCAS Tustin Social Services 2 90 90 Grann Flats 10 7 3 New Owner Housin a 1,354 78 57 162 1,057 New Senior Hous' 2(11 12 9 10 170 R clip of SFD to MFD 25 5 11 9 Total Quantified Ob'ectives 5,566 632 300 523 4,111 RHNA 2381 512 410 468 991 Difference 3,185 1205 110 s 55 3,120 1 MCAS Tustin Specific Plan authorized a total 4,1344 potential units at Tustin Legacy. t3ased upon State Redevelopment Law and the proposed Spedfic Plan requitement, at least 15 percent of the total units (607 units) would be affordable to Very-Low, Low, and Moderate income households, of which at least 6 percent or 243 units would be affordable to Very Low irxome households. See footnote 4 for additional iru~lusionary units information s These housing units shown as separate line items will serve as transitional/emergency housing facilities. The City counts these units as new construction as they are new additions to the housing inventory. ~ Projects at the end of plamung period. * Includes MCAS Tustin additional inclusionary units (296 units) e Total City's objectives for Very Low and Low-Income units (932 units) exceed RHNA 's total of Very-Low and Low-Irrmme units (922 units) Source: 2007 RHNA; City of Tustin; MCAS Tustin Specific Plan. CITY OF TUSI'IN HOUSING ELEivIENT GENERAL PLAN 63 2008 Preservation, Rehabilitation, and Other Affordable Housing Program Objectives The primary beneficiaries of Preservation and Rehabilitation and Assistance programs are renters and low-income homeowners. It is assumed that above-moderate-income households will rehabilitate units as needed through private efforts. Tustin's affordable housing strategy is based on the City's housing needs, affordability gap analysis, and available financial resources. Several broad policies establish the framework for the City's Housing strategy as applied to preservation,, rehabilitation, and other housing program objectives. These include.; ' 1. Conserve, maintain, and rehabilitate existing., housing and revitalize existing neighborhoods; 2. Maximize the supply of affordable housing; 3. Increase homeownership; 4. Preserve the existing supply of affordable housing; and, Consistent with the above'policies the City has devised a number of programs of housing assistance to address the preservation, rehabilitation,.. and other housing program objectives. Specific details on these programs-.can be found in the City of Tustin Comprehensive Housing Affordability Strategy for Fiscal Years 2006-2007 to 2009- 2010. ' In addition, Table H-22 -Housing Element Programs 2006- 2014, outlines the City's specific housing programs during the planning period. Table H-18 provides the City's rehabilitation, preservation, and other affordable housing objectives during the planning period. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 64 2008 TABLE H-18 REHABILITATION, PRESERVATION, AND OTHER AFFORDABLE HOUSING QUANTIFIED OBJECTIVES SUMMARY CITY OF TUSTIN 2006-2014 Total # Very Low Low Moderate Upper ProgramCategory of Units <50% <80% 80-120% (120%+) RFHARTi:TTATION' Sin le and Multi-Famil Rehab Sin le Famil 54 32 16 6 Mu16- Famil 108 21 " 21 66 Rental Rehabilitation Loans Grants 120 24 48 48 Multi-Family Rental Ac uisition/Rehab/Conversion/Resale 31 31 Total Rehabilitation 313 77 116 120 PRF.fiF.RVATTON Tustin Gardens 100 100 Rancho Alisal 72 18 54 Rancho Maderas 54 b `' 48 Rancho Tierra 51 38 13 Affordable Senior Housing -Mitchell Avenue 20 12 8 Senior Board & Care - B an Avenue 18 0 18 Herita a Place 54 54 Total Preservation 369 218 151 (1Ti-rAR [ A 1FF(1R 17A RI .R H[7i IRiN[ '- 151 Time Homebuyer and/or Foreclosure Ne otiated Purchase 30 5 10 15 Section 8 Rental Voucher Assistance ` 1,500 1,500 Shared Housin Referrals 75 50 25 Homeless Housin Partnershi Pr am 242 242 Emer en Shelter 282 282 Total Other Pro ams 2,129 2,079 35 15 Source: Effectiveness of Housing Programs 199&2008, City of Tustin; Five Yeaz Implementation Plan for the Town Center and South Central Redevelopment Project Areas for Fiscal Yeazs 2005-06 to 2009-10; Comprehensive Housing Affordability Strategy for Fiscal Yeazs 2008-18. CITY OF TUSTIN HOUSINGELEMENT GENERAL PLAN b5 2008 Summary of Quantified Objectives Table H-19 summarizes the City's Quantified Objectives for the 2006- 2014 period. TABLE H-19 SUMMARY OF QUANTIFIED OBJECTIVES CITY OF TUSTIN 2nn~2m 4 Income Grou RHNA New Construction < Rehabilitation/ Preservation Other Pro ams Ve -Low 512 632 295 2079 Low 410 300`':.'.... 267... 35 Moderate 468 523 120''`'- 15 Above Moderate 991 - 4,111 0 - Total 2,381 5,566 682 2129 Source: City of Tustin IDENTIFICATION OF AFFORDABLE HOUSING RESOURCES The City has prepared a Consolidated Plan and Comprehensive dousing Affordability Strategy identifying and describing all funding programs available to the City and Tustin Redevelopment Agency to assist in meeting the City's housing needs. Included in the plan are descriptions of a. wide variety of major housing assistance programs available from federal and state agencies and private - lending institutions. More specific information including details regarding eligible projects and activities and funding availability can be found in the document. The following is a summary of this information along with updates to reflect new state and federal programs..;':- Table H-20 provides an illustrative example of the estimated amount of locally identified resources that could be available to finance housing program objectives on an annual basis over the remaining six-year planning period. The amounts shown are estimates; actual revenue amounts and the timing of their availability could be more or less and would adjust over time. Specific decisions are made on an annual basis as part of the City and Redevelopment .Agency budget process. 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O G ;~ R 00 ~ N ~ N ~ .a '~ 41 \ A C v "' v g G 'F ~ b 'a m N G 3 O y `~ N T O G ~U~' m~ a~6~. P..L ~u]ia zo w ~ 'w V z a 0 x DD z F U z z W ~, ~ ~ d: ~~ The key source of local funding for affordable housing development and preservation in Tustin is the Tustin Community Redevelopment Agency's Low and Moderate Income Housing Fund, also known as the 20 Percent Set-Aside Fund. The estimated fund balance in the Agency's Low and Moderate income Housing Fund as of June 30, 20U7 was $17.$6 million. The City is not an entitlement jurisdiction for HOME funds, but may apply to the State for HOME funds as described in a separate report prepared by DRA entitled Affordable Housing Assistance Programs, presented as Appendix C of the Comprehensive. Affordable Housing Strategy. The City is an entitlement jurisdiction for Community Development Block Grant (CDBG) funds. For FY 2007/08, the City.. of Tustin was allocated $827,201. in CDBG funds. :These funds may be used for a number of community development' purposes besides housing. Given the many competing needs for these funds and the restrictions on these funds for housing purposes, the Agency does not typically allocate CDBG funds for,affordable housing development. As ;needed and as shown on fable H-21, the City and its Redevelopment Agency will utilize State and Federal resources to leverage local resources as these funding sources match the City's programmatic objectives. Table H- 21 is a summary of affordable housing resources. TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Local Resources Eligible Pr am Descri lion Activities Multi-Family Assistance to owners of . Rehabilitation Residential Rehab- multi-family projects Loan/Grant Program occupied by low- to First Time Low Interest Rates and • First'i'ime Homebuyer Homebuyer Program Down a ment assistance Single-Family Assistance to owners of • Rehabilitation Residential Rehab- single-family projects Loan/Grant Program occupied by low-income persons. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 69 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN New Construction Financial assistance for • New Construction new affordable housing ro'ects. Rental Housing Financial assistance for • Acquisition Program affordable multi-family • Rehabilitation rental projects. •' New Construction Density Bonus The City allows an increase • Density Bonus in density to developers who set-aside certain number of units in accordance with the City's Density Bonus Code to very low ark low-income rsons. Tax-Exempt Bonds The Redevelopment • New Housing Agency and the City have Development file authority to issuetax- Rental Acquisition/ exempt bonds. The City is Rehabilitation also a member of California Statewide Communities , Development Authority. Bond proceeds are used to develop affordable • housin i- City/Agency Owned.. if available and • Housing Land appropriate, City or • Community Facilities Redevelopment Agency owned land may be made available CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 70 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN State Resources CalHome I California Self-Help Housing Program (CSHHP) Grants to local public agencies and nonprofit developers to assist individual households through deferred-payment' loans. Direct, forgivable ; loans to assist development projects involving multiple ownership units, including single-family subdivisions. Grants are made to sp organizations that pro technical. assistance to participating,, owner- builder families. • Predevelopment • Site development • New construction • Rehabilitation • Acquisition and rehabilitation • Down payment assistance • Mortgage financing • Homebuyer counseling • Technical assistance for self-help projects or shared housing. A share of funds is allocated for the rehabilitation, replacement and repair of manufactured homes. • Training and supervision of low and moderate income self- help home-builders or repairers CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 71 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Downtown Rebound Planning Grants Program Emergency Housing Assistance Program (EHAP) Fund local planning for infill housing, adaptive reuse jconversion) of commercial and industrial space into residential units, and the development of other forms of high density housing within existing urbanized areas. Grants for emergency shelters, transitional housing, and supportive services for homeless individuals and families. Infill site inventories, development feasibility studies, strategic action plans to remove barriers and promote infill housing, mixed- use developments and transit corridor development Updates of general `' plans and zoning ordinances to encourage adaptive reuse; higher density residential development, mixed- use development, residential development within walking distance of transit nodes, employment centers and other urban amenities • Seismic and structural feasibility studies on candidate buildings for adaptive reuse. • Rehabilitation, construction, renovation, expansion of existing facilities • Site acquisition (including lease or purchase of an existing site or facility) • Equipment purchase, vouchers, operational costs, direct and indirect client services • Administration of the award (limited to 5 percent). CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 72 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Jobs-Housing Financial incentives to Balance Incentives cities and counties that demonstrate an increase in the number of new residential units. Grant amounts are based on an_, increase in the number of new housing units for which residential building permits were issued`during calendar 2002, compared to the average number of permits during the most recent measurable 36- month period prior to 2002.` Mobilehome Park Resident Ownership Program (MPROP) Loans to finance the preservation of affordable mobilehome. parks by conversion from private ownership'to ownership or control by resident organizations, nonprofit housing sponsors, or local public agencies. Funds awarded can be used for any project, service, or other local need determined by the city to be in the community's best interest, including traffic improvements, neighborhood parks, bike paths, libraries, school facilities, play areas, community centers, police and fire stations, etc. Purchase (conversion) of a mobilehome park by a resident organization, nonprofit entity or local public agency; rehabilitation or relocation of a purchased park Purchase by a low income resident of a share or space in a converted park. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 73 2008 TABLE H- 21 AFFORDABLE HOUSING RESOU RCES) CITY OF TUSTIN Multifamily Deferred payment loans to • New construction, Housing Program assist new construction, rehabilitation, or (MHP) rehabilitation and acquisition and preservation of permanent rehabilitation of and transitional rental permanent or housing for lower income... transitional rental hrn~ceholds. housing, and the conversion of nonresidential structures to rental housing. • Eligible costs include the cost of child care, after-school care and social service facilities integrally linked to the assisted housing units; real property acquisition; refinancing to retain affordable rents; necessary onsite and offsite improvements; reasonable fees and consulting costs; and capitalized reserves. Urban Short-term loans to provide • Predevelopment costs Predevelopment predevelopment capital to include, but are not Loan Program finance the start of low- limited to, site control, (PDLP) income housing projects in site acquisition for urban azeas. future low-income housing developments, engineering studies, architectural plans, application fees, legal services, permits, bonding and site preparation. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 74 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Urban Short-term loans to finance • Capital assessments to Predevelopment the initial costs of establish a project's Loan,/Preservation preserving existing condition and potential Program (PDLP-P) affordable housing rehabilitation costs developments for existing • Purchase option tenants. agreements Urban Predevelopment Loan/Jobs-Housing Balance Program (PDLP-J) Short-berm loans bo,finance the initial costs of .constructing, converting, preserving or rehabilitating assisted housing developments near transit stations. • Professional services such as consultant, architect, engineering ` and legal • Permit and application • Bonding fees; etc. • Land purchase, options to buy land, options or deposits to buy or preserve existing publicly assisted rental housing to preserve the affordability of the units, professional services, permit and application fees, bonding, site preparation, related water or sewer development, etc., for affordable housing projects within one-half mile of an existing or planned transit station. CITY OF TU'STIN HOUSING ELEMENT GENERAL PLAN 75 ~D08 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Proposition 1A Emergency Shelter Program California Housing Finance Agency (CHFA) Multiple Rental Housing Programs California Housing Rehabilitation Program Proposition lA includes provisions to establish a Downpayment Assistance Program and a Rent Assistance Program using school fees collected from affordable housing projects. Potential buyers: or tenants of affordable housing projects are> eligible to receive ` assistance in the form of downpayment assistance or rent subsidies from the State at amounts`equivalen€ to the school fees paid by the affordable housing developers for that project..., in question. This. programs structure and implementation strategy. has not yet been determined by the State of California Grants awarded to non- profit:organizations for shelter support services Below market rate financing offered to builders and developers of multiple family and elderly housing. Tax-exempt bonds provide below-market Low interest loans for the rehabilitation of substandard homes owned and occupied by lower- income households. City and non-profits sponsor housing rehabilitation projects. Downpayment Assistance Rental Assistance Support Services New Construction • Rehabilitation/ Acquisition • Rehabilitation Repair of Code Violations Property Improvements CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 76 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN California Housing CHFA sells tax-exempt . Homebuyer Assistance Finance Agency bonds to provide below- Home Mortgage market loans to first time Purchase Program homebuyers. Program is operated through participating lenders that originate loans purchased b CHFA California Housing Unsecured loan from . Acquisition Finance Agency CHFA to provide. . Rehabilitation HELP Program affordable housings . Infill opportunities through Predevelopment program partnership with New construction local government entities:. . Code Enforcement Low Income Tax credits available to • Rehabilitation/ Housing Tax Credit `individuals and Acquisition (LIHTC) corporations that invest in New Construction low-income rental housing. Tax credits are sold to corporations and people' with high tax liability,`of which the proceeds are utilized fnr housing develo ment° County Statewide The-.City of Tustin is now a • Multi-family Housing Communities direct member of the . Private Mortgage Program. program through a Joint Revenue Bonds Powers Authority and can . Acquisition `participate directly. Rehabilitation CITY OF ?'USTIN HOUSING ELEMENT GENERAL PLAN 77 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN California Debt Allocation of private Limit Allocation activity bond (tax-exempt Committee (CDLAC) mortgage revenue bond} to single-family housing. Low interest loan for multi- family housing rehabilitation or acquisition, or both` Provides limited term housing assistance combined' with case management, .employment services, childcare and other supportive services to welfare recipients. Grants, loans, and mortgage assistance to low and'moderate-income families-improving property with their own labor. , Loans for. pre-development or "seed" money to nonprofit corporations and local governments. Construction, maintenance, use, and occupancy of privately owned and operated employee- housing facilities. Provides unsecured loan for affordable housing Mortgage Credit Certificate • Multi-family private mortgage revenue bond • Land lease Payment •' New Construction • Pre-development costs Employee Housing of five or more employees • Infill _ • Code Enforcement • First Time Homebuyers • Acquisitian> • Rehabilitation CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 78 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN CDLAC continued Low interest loans for housing construction for individuals and families with special needs. Community Development Block Grant (CDBG) Mortgage Credit Certificate (MCC) Low interest and downpayment program €or low and moderate-incomei? first time homebuyers. Permanent financing for new construction, acquisition/rehabilitation, and acquisition of multi family projects ement Entitlement program that is Section lU8 Loan awarded to the City on a Repayments formula basis. The Public Services objectives are to fund Activities housing activities and Historic Preservation expand'economic Admin. & Planning opportunities. Projects . Code Enforcement must meet one of three . Public Facilities. national objectives: benefit Improvements low- and moderate-income , Housing Activities persons; aid in the . Economic Development prevention or elimination . Rehabilitation `of slums or blight; or meet other ur ent needs. Federal tax credit for low- • First Time Home Buyer and moderate-income Assistance homebuyers who have not owned a home in the past three yeazs. Allocation for MCC is provided by the State through the County of Or e. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 79 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) C'iTY (1F Tt1STTN HOME Investment Grant program for • Multi-Family Partnership (HOME) housing. The intent of this Acquisition/Rehab Program program is to expand the Single-Family supply of decent, safe, and Homebuyer Assistance sanitary affordable CHDO Assistance housing. HOME is • Administration designed as a partnership., Rental Assistance program between ~e federal, state, and local governments, non-profit and for-profit housing entities to finance, build/rehabilitate and , manage housing for lower- income owners and renters` Emergency Shelter Annual grant funds''aze • Homelessness Grants (ESG) "allocated on a formula Prevention (acquisition, basis. Funds aze intended new construction, to assist with the provision rehabilitation, of shelter and social conversion) services for homeless • Supportive Services • O eratin Ex nses Housing Funds are made available • Rental Assistance Opportunities fox - countywide for supportive Supportive Social Persons with AIDS social services, affordable Services (HOPWA) housing. development, and • Administration rental assistance. Shelter Plus Care Supportive housing and Rental Assistance Program (S+C) services for persons with disabilities-grants for rental assistance offered with supportive services to homeless with disabilities and disabled households. L~..,i..~..1 D.~...:rweu ._, (`ntffawlifivP Supportive Housing Grants to improve quality • Acquisition Grant of existing shelters and • Rehabilitation transitional housing. • New Construction Increase shelters and transitional housing facilities for the homeless CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 80 2908 'Table HTM-13 s a summary of Tustin's household size. The 2000 data shows 15.2% of Tustin households had five or more persons residing in a unit. TABLE HTM-13 HOUSEHOLD SIZE DISTRIBUTION CITY OF TUSTIN 2000 Household Size Number of Households % of Total Households 1 Person 5,734'"``` 24.1 2 Persons 7,262 30.5% 3 Persons 3,877 16.3°~ 4 Persons 3,331 14.0°h 5 or more Persons 3,627 15.2% Total Households 23,831 100.0% Source: Comprehensive Affordable Housing Strategy 2008 -2018. Table HTM-14 shows the number of households with five or more persons in Tustin according to the 2000 U.S. Census. There were 1,438 owner households with five or more persons, representing 12.2 percen# of all owner households. Tustin also had 2,189 renter households with five or more persons, representing 18.2 percent of all renter households. Overall, large households comprised approximately 15.2 percent of all Tustin households in 2000. TABLE HTM-14 Households with Five or More Persons City of Tustin 2000 Number of % of Total Renter or Owner Households Households Owners 1,438 12.2°,6 of Owner Households Renters 2,189 18.2% of Renter Households Total Households 3,627 15.2% of Total Households Source: Comprehensive Affordable Housing Strategy 2008 - 2018 CITY OF TUSTIIV I~IOiTSlilrG ELEII~ENT TECI~IIVICAL ME11~Oi~lNDUM ~5 X008 The primary need of large families is to provide enough rooms for each member of the family to avoid overcrowding. In 2000, 15% of the City's housing units contained four or more bedrooms. Of owner- occupied housing units, 12.9% contained four or more bedrooms. Rental-occupied units accounted for 1.6% of units with four or more bedrooms. Taking into account that much of Tustin's housing stock consists of apartments, and that the majority of Tustin's large families are renters, this rising trend in largefamilies suggests a need for more spacious apartment units to accommodate such families. Female-Headed Parent Households: Single-parent families tend to have low incomes, limiting their' ability to find affordable housing. These families also have a large need for affordable child care. For these households, ideal housing is severely restricted. Due to financial constraints, the family is often not able to find-housing that is close to needed services, schools, and public transportation. As of the 2000 U.S. Census there were 1,7~ female-headed households with children under 18 living at IZOme. These households represented 18 percent of all families with children under 18 in Tustin in 2000. The Homeless: Measuring the extent of the homeless population specifically in Tustin remains a challenge for community leaders. To complicate the challenge of meeting homeless persons' needs, the issue of homelessness is cansidered regional in nature. Nomadic tendencies of homeless persons make it difficult to assess the population accurately on a citywide basis; therefore, homelessness should be addressed on a countywide basis, in conjunction with cities and local non-profit organizations. The Orange County Housing and Community Services Department (HCS) defines homelessness as not having a permanent address, sleeping in places not meant for habitation, not having ample food and medical attention or a place to change clothes or bathe. Per this definition, HCS estimates there are nearly 35,000 homeless in the County. The County's homeless population is comprised of about 30 percent individuals and 70 percent families, including an estimated 16,300 homeless children. For those 35,000 homeless, there are only about 3,400 available beds, including 1,512 emergency shelter beds and 1,888 beds in transitional housing facilities. The homeless population is comprised of subgroups, which include: CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 26 2008 1. The economic homeless who lack financial resources to pay rent; 2. The situational homeless who have suffered economic or personal trauma and find themselves in personal disorganization; and, 3. The chronic homeless who are unable to care for themselves due to chronic illness, disability or debilitating.. substance abuse. The City of Tustin's 2~5-2010 Consolidated Plan states that, according to police reports and,_ windshield surveys performed within the City of Tustin, most homeless persons migrate through Tustin to other parts of the County rather than stay for extended periods of time within the City. The City's Police Department estimates that there are 10-12 homeless persons residing in the City at any given time. Although there are na established areas where homeless persons.. congregate in the City, there are several homeless services facilities in the City. The Village of Hope was recently completed on five acres at the Tustin L,egary site. The Village of Hope will provide housing for a total of 192`'homeless men, women and children. It includes dorm rooms, a child development center, playground,.. parent education center, vocational training classrooms, health care facility, donation warehouse, and support offices. There will also be a cafeteria with an outdoor dining area, and vegetable gardens. There are numerous factors that contribute to homelessness in Tustin and Orange County. The known causes of homelessness include unemployment, limited skills, and a breakdown in the family as a social and economic unit. Additionally, cutbacks in social service "' ,programs and the de-institutionalization of the mentally ill during the 1980s have contributed to the homeless population. A new trend, however, is emerging as a significant contributing element to homelessness: afast-growing lack of affordable housing, which could exacerbate any of the above conditions, but may increasingly become a stand alone cause of homelessness. Of the shelters in Tustin, the 45-bed Sheepfold shelter provides shelter, food, clothing, job training, and job-referral services primarily to battered women and children. Guests are admitted on a first-come, first-served basis. Usually all beds are fully occupied. The shelter . services a large area including many portions of Orange, Riverside,,and San.Bernardino Counties. CITY Oi~' TUS7'IN HOUSING ~L~MENT TECHNICAL MEMO~?AN~UM 27 2.008 Within the -City of Tustin, there are a variety of Non-Profit Organizations (NPOs) that provide direct housing and related services to homeless persons. These include Village of Hope, an emergency/transitional home; Sheepfold, a feeding program affiliated with the United Way; Families Forward, a homeless provider; Olive Crest, transitional homes and services for abused and neglected children, a and Laurel House, an emergency shelter and transitional housing provider for homeless youth in the City. A significant portion of the MCAS-Tustin is located within the City. The MCAS Tustin facility was identified by the U.S. Department of Defense for closure in July 1999... In accordance. with the Base Closure Redevelopment and Homeless Assistance Act of 1994 lRedevelopment Act), the City of Tustin was formaIly recognized as the Local Redevelopment Authority (LRA) for the MCAS Tustin. The Redevelopment Act provides a process that aims to balance the needs of the homeless with other development interests in the communities directly affected by closure' of the installation. The Act requires the LRA to prepare a reuse plan and Homeless Assistance Plan (HAP), which is submitted to the federal Department of Housing and.,. Urban Development (HUD). HUD reviews and determines whether the documents balance the needs of the homeless in communities in the vicinity of the installation with the need for economic development. A Homeless Assistance Plan has been established for MCAS, Tustin that is consistent"with the continuum of care model embodied in the Consolidated Plans for the Cities of Tustin and neighboring Irvine. The fundamental' components of the continuum of care system to be implemented with the MCAS, Tustin Reuse Plan would: ° Provide emergency shelter beds and intake assessment ° Offer transitional housing and services ° Provide opportunities for permanent affordable housing by the private sector. Irt the Tustin Legacy, the Local Redevelopment Agency owns sites and four homeless service providers including the Salvation Army, Orange Coast Interfaith Shelter, Families Forward, and Human Options have been approved and currently are operating 48 family CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 28 2008 units. The Orange County Rescue Mission operates a 192-unit transitional/emergency shelter (Village of Hope) and the Orange County Social Services Agency will operate a 90 beds facility for abused and neglected children and their family. l~lumerous other agencies provide shelter- and other services to the homeless in the nearby cities of Santa Ana, Irvine, and Orange. The Orange County Homeless Issues Task Force,.. anon-profit homeless advocacy organization, maintains a list of these and other homeless services in Orange County. Table HTM-15 provides a summary of zoning regulations pertaining to emergency shelters, transitional, `` and supportive housing are designated as permitted uses within the City of Tustin. TABLE'HTM-15 SUMMARY OF HOMELESS ACCOMMODATION ZONING REGULATIONS Housing Type Permitted/ Conditionally Permitted Zoning Planning Area 3 of MCAS Transitional Home Permitted Tustin Specific Plan Planning Area 3 of MCAS Emergency Shelters Permitted Tustin Specific Plan ° Planning Areas 1 and 3 of Supportive housing pe~~ . MCAS Tustin Specific Plan Community Care Facility for Permitted All residentially zoned six (6) or fewer properties Family care home, foster All residentially zoned home, or group home for six Permitted propernes (6) or feweri ~ Includes rnngregate care facility, single room occupancy hotel, and children s intermediate care shelter Source: City of Tustin, MCAS Tustin Specific Plan CITY Off' TUSTIN HOUSING ELEMENT TECHNICAL MEMOKANI~UM 29 2008 Table HTM-16 is a list of organizations in Tustin that provide homeless services. TABLE HTM-16 EMERGENCY SHELTER/TRANSITIONAL HOUSING FACILITIES 2008 c1TY c~r~ ~ru5~rily Facility Services Provided Provides shelter, food, clothing, job training, and Sheepfold job-referral`"services o women with children. Temporary housing €or teenagers in crisis. 'The Laurel Houae facility also provides food, informal counseling, and access to medical care and clothin . St. Cecilia's Distributes food supply to needy populations. Operates emergency food program where a Red Hill Lutheran rson can receive food su 1 3 times a ear. Collects food supplies and distributes ,the food to Tustin Presbyterian various organizations involved in providing homeless services. Refers interested persons to Ecumenical Services Aldergate Alliance in Santa Ana. 192 beds transitional home at the Village of Hope Village of Hope: o rated `the Oran e Coun Rescue Mission 90 beds intermediate care shelter for abused Tustin Family Campus children and their parents operated by the Orange County Social Services Agency. Six (6) new transitional units at Tustin Field I Salvation Army perated by Salvation Army and Acquisition of 16 transitional units in Buena Park operated by Salvation Army. The City assisted in Salvation Army acquisition and contributed grant funds to ac uire the units Fourteen (14) new transitional units at Columbus Families Forwazdl Grove to be operated by Families Forward, formerl Irvine Tem ra Housin in Irvine. Six (6) new transitional units at Columbus Grove Human Options operated by Human Options Orange Coast Interfaith Six (6) new transitional units at Columbus Grove Shelter operated by Orange Coast Interfaith Shelter. Although these units aze located in the City of trvine, these units were negonatea as part of the base realignment/conveyance process which Tustin is the Local Redevelopment Agency. Source: City of Tustin, 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 30 2008 HOUSING STOCK CHARACTERISTICS A housing unit is a dwelling intended for occupancy as separate living quarters. Single-family houses, apartments, condominiums, mobile homes, and single room occupancy {SRO) hotels are all types of housing units. This section examines housing unit growth, age, type, tenure (owner v. renter), and costs in `Tustin. Housing Growth While Tustin has experienced significant growth in population and housing units since 1990, the number of housing units from 2000 to 2007 has decreased by a total of 24 units. This change can be attributed to the closure, of MCAS Tustin and the loss of military housing units. The figure however has stayed almost the same, because the loss of these units has been offset by new construction in the early 2000's and the beginning of the redevelopment of MCAS Tustin for civilian uses, which includes the construction of over 4,000 new housing units. Table HTM-17 compares the growth in housing units in Tustin to nearby cities and the County as a whole. It should be noted that much of the City's housing unit growth is attributable to annexations that occurred during the 1980s and 1990s. TABLE HTM-17 HOUSING GROWTH TRENDS 1990 - ?007 TUSTIN AND SURROUNDING AREAS Number of Housin Units Percent Chan e Jurisdiction 1990' 2000 z 2007 a 1990-00 2000-07 Tustin 19,300 25,501 25,477 32% -0.1% Anaheim 93,177 99,719 101,510 7% 1.8°~ Garden Grove 45,957 46,703 47,197 1.6°,y 1 °,6 Frvine 42,221 53,711 74,936 27°k 40°~ Santa, Ana" 75,000 74,588 75,375 -0.5 % 1 °~ Oran ` 'Coon 875,072 969,484 1,024,692 1°k 6°k ' U.S. Depaztment of Commerce, Bureau of the Census,1990 Census Report. z 2000 Census Report s State of California. Department of Finance, Revised Estimate, May 2007. Housing Unit Type Table I-I'TM-18 demonstrates the mix of housing types in Tustin. The distribution of housing units by type has changed over this period, with single-family homes steadily increasing and multifamily housing steadily decreasing as a proportion of Tustin's housing units. In 2007, Tustin's housing stock is comprised of almost equal CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 31 2008 proportions of single-family homes and multifamily housing, making up 49.1 and 47.4 percent, respectively. Mobile homes make up the remaining 3.6 percent. The 2007 composition of housing units in the City includes approximately 34 percent single-family detached, 15 percent single-family attached, l5 percent multi-family (2-4 units), 36 percent multi-family (5+ units), and 4 percent mobile homes. Compared to Orange County as a whole, Tzastin has a significantly higher proportion of multi-family housing. According to 2007 Department of Finance Estimates, the County contained approximately 63.4 percent single-family detached/attached units and 33.2 percent multi-family units, where as Tustin contained 51.3 percent multi-family units. TABLE HTM-18 TUSTIN RESIDENTIAL UNIT. MIX 1990 - 2007 CITY OF TUSTIN Number of Housin Units Percent Chan e Housin T e 1990 % - 2000 % 2007 % 2000-2007 Sin le-Famil Detached .5,351 27.7°~ 8,075 30.6°~ 8,697 34.1% 7.7°,6 Sin le-Famil Attached 2,530 13.1°~ .3,459 10.8'x` 3,807 14.9°,6 10.1°~ Multi-Famil Z-4 units 3,089- 16.0% 3,836 12:8°~ 3,110 12.2°~ -18.9% Multi-Famil + units 7,678 39.5°k 9,223 43.0% 8,955 35.1°k °~ Mobile Homes 707 3.6°~ 908- 2.9°k 908 3.6°~ 0°k Total 19,300 99.9%* 25,5( 100.1%* 99.9% N/A * Totals do riot equal 100% due to rotmding error. Source: California Department of Finance; Com rehensive Affordable Housing Strategy 2008-2018. The overall rental vacancy rate for Tustin in the second quarter of 2007 was 4.6 percent, up slightly from 4.3 percent in the first quarter of 2007. Generally, a vacancy rate of 5 percent is considered to reflect a "tight'' housing market. As shown in Table HTM-19, Department of Finance data for Tustin as of January 2007 show a vacancy rate of 2.71 percent for all housing types in Tustin (single- and multi-family, owner and rental). TABLE HTM-19 VACANCY RATES 2000-2007 CITY OF TUSTIN Housin Tenure 2000 2007 Total Occu ied Units 23,831 24,787 Vacancy Rate 6.6°k ........_2.71°k Source: Comprehensive Affordable Housing Strategy 2008-2018. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 32 2008 Housing Tenure The tenure (owner versus renter) distribution of a community's housing stock influences several aspects of the local housing market. Residential mobility is influenced by tenure, with ownership housing typically sustaining a much lower turnover #ate than rental housing. 1-lousing overpayment, while experienced by many households regardless of tenure, is far more prevalent among renters. Ownership and rental preferences are primarily related to household income, composition, and age of the householder. lrt 2000, 49.b% of the City's 23,831 occupied housing units were owner-occupied, with the remainder renter-occupied. Compared to the County as a whole, which had 61`:4 % owner-occupied units and 38.b% renter-occupied units, the City of Tustin had a relatively high proportion of renter-occupied units. This is significant because renters tend to have lower incomes than owners, and are more susceptible to housing cost increases. The tenure figures show a shift in the City of approximately 9 % to more owner-occupied units from 1990 to 2000. Table HTM-20 is a summary of tenure in the City and the County. TABLE HTM- 20 TENURE 1990 AND 2000 CITY OF TUSTIN __ 1 1990 i 2000 Housne Tenure 1 Number 1 Percent 1 Number J Percent City of Twin Owner-0ccu led 7,504 40.9°~ 11,829 49.6°,6 Renter-0ccu led 10,828 59.1% 12,002 50.4°,6 Total Occu led Units 18,332 100.0°~ 23,831 100.0°k County of Oranee Owner-Occu led 496,782 60.1°k 574,456 61.4°~ Renter-Occu led 330,284 39.9°~ 360,831 38.6°~ Total Occu led Units 827,066 100.0% 935,287 100.0°k Source: Comprehensive Affordable Housing Strategy 2008 -2018. Age and Condition of Housing Stock Housing age is a factor for determining the need for rehabilitation. Without proper maintenance, housing units deteriorate over time. Cry OF 77JSTi~ HOUSING ELEMENT TECHNICAL MEMO~?ANDUM 33 ,2008 Also, older houses may not be built to current housing standards for fire and earthquake safety. Table HTM-21 shows the distribution of housing units by year built in Tustin through 2007. Reflecting the conversion of land from agricultural to residential use and the construction of housing on the MCAS Tustin base during the 1960s and 1970s, 24.9 percent of Tustin's units were built during the 1960s and 24.5 percent were built during the 1970s. As a result, potential rehabilitation and continued maintenance may be required for these units that are over 30 years in age. The City's rapid population growth in the 1990s is reflected in the number of housing units built during that' period, a total of 5,924 units representing 23.2 percent of Tustin's total housing stock. TABLE,HTM- 21 AGE OF HOUSING STOCK CITY OF TUSTIN Time Period Units Built Number. of Units % of Housin Stock 2001 to 2007 1,639 `" 6.4°,6 1999 to 2000 %, 590 2.3°,6 1995 to 1998 2,684 10.5°,b 1990 to 1994 3,240 12.7% 1980#01989 2,792 11.0% 1970 to 1979 6,238 24.5% 1960 to 1969 6,333 24.9°,6 1950 to 1959 1,285 5.0°,6 1940 to 1949 225 0.9°k 1939`or earlier 451 1.8 Total ?5,477 100% Sn„r~P~ C'mm~rehensive Affordab le Housine Strate~v 2008 - 2018 Hs~using Costs Ownership Housing: Southern Califomia, in line with the nation, i.s experiencing a significant decline in the volume of single-family and condominium sales, placing downward pressure on home prices. According to Dataquick, an on-line reseaxch firm, sales in October 2007 have dropped to their lowest level since measured by the firm in 1988, representing a 45 % decline from the prior year. While the initial slow down in sales in 2006 was coming off the heightened pace of sales activity in 2004 and 2005 and has little impact on price, begiluling in January 2007, Southern California prices had fallen 2 percent below the prior year's levels. As of October 2007, sales prices CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 34 2008 were 8 percent below the prior year, with approximately three- quarters of the Southland's zip codes evidencing a drop in sales prices. Sale price declines are most pronounced in the lower end of the market, with prices in the upper half of the market flat or modest increasing as potential sellers wait the, marker out. Slow sales, flat appreciation, and subprime lending activity have all contributed to significant increases in foreclosures, with the number of mortgage default notices in Southern California the highest in ten years. V1~ithin Orange County, the number of` single-family and condominium units sold declined 42 percent and dropped 8.2 percent in value during October 2007 compared to the prior year. As is evidenced in Table 1-iTM-22, Tustin is experiencing the same trend with a significant drop in home price sales, especially in the azeas of the city in the lower end of the housing, mazket. The median resale home prices for zip codes in the, City of Tustin ranged from $416,250 to $570,000. In comparison, the median resale home prices for cities presented in .Table 1-i'TM-22 ranged from $205,000 to $819,500. Overall, median resale home prices in Tustin were sunilaz to those occurring throughout Orange County. TABLE H'I'M- 22 RESALE PRICE OF HOMES AND CONDOMINIUMS TUSTIN AND NEIGHBORING JURISDICTIONS MARCH 2008 Median Home Price- % Change Ci Zi Code Mazch 2008' from 2007 Tusrin 92780 $416,250 -34.7% Tustin" 92782. $570,000 -9.9% 92801 $360,000 -35.7°,6 92802 $430,000 -22.4% 92804 $390,000 -31.5 °~6 Anaheim 92805 $350,000 -37.4°,U 92806 $445,500 -26.7% 92807 $500,000 -16.7% 92808 $637,500 32.1 92840 $415,000 -27.2°~ 92841 $420,000 -25.0°~ Garden Grove 92843 $400,000 -28.1 °k 92844 $429,000 -2.5% 92845 $438,000 -24.2°~ CITYOF TUSTIN HOUSING ELEMENT TECHNi<CAL MEMORANDUM 3S 2008 92602 $740,000 -1.3°,6 92603 $819,500 14.1 °,6 92604 $561,818 -8.2°,6 92606 $670,000 21.8°k Irvine 92612 $422,500 -21.2°,6 92614 $470,000 -16.1 92618 $496,250 -9.9% 92620 $740,000 4.2% 92865 $453,000 -31.1 °~ 92866 $509,000 -15.9°,6 Orange 92867 $490,000 -26.5°k 92868,., . $362,500 -19.2°,6 92869 $520,000 -16.2°,6 92701: $205,000 -33.9°~ ..'92703 $358,750 -38.1% 92704 $298,5()0 -48.8°,6 Santa Ana 92705 $710,000 ~ 1.4°,6 92706 $433,000 -29.5°,6 92707 $330,000 -40.0°,6 ' Data include all home sales, new ana resale, ana conaomuuums. 2 Includes i.emon/Cowan Heights Source: Orange Cowity Register, Apri16, 2008 According to the Comprehensive Affordable Strategy prepared by David> Rosen and Associates for the City of Tustin, affordable monthly housing costs for Very Low Income households were ranging from $787 to $1,062, $1,102 to $1,478 for Low Income households, and $2,020 to $2,727 for Moderate Income households depending upon unit size. `Table HTM-23 summarizes affordable monthly housing cost for the City of Tustin. TABLE HTM- 23 AFFORDABLE MONTHLY HOUSING COSTl CITY OF TUSTIN 2008 Unit Size a of bedrooms Very Low 50% AMI Low 80% AMI Moderate 120% AMI 1 Bedroom $733 $890 $1,677 2 Bedroom $817 $994 $1,880 3 Bedroom $886 $1,083 $2,066 4 Bedroom $953 $1,166 $2,228 ~ California Depaztment of Housing and c:ommumty veveiopment puousnea ~wi ivw anu median income limits. Owner affordable housing costs are calculated assuming an occupancy standard of one person per bedroom plus one and 30% of gross income spent on housing for low income households and 35% of gross income spent on housing for moderate income households. The Affordable Monthly Housing Cost includes the monthly mortgage payment, property taxes, property insurance, utilities and HOA dues. Source: Comprehensive Affordable Housing Strategy, 2008-2018. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANEUM 36 2008 Rental Housing. According to Realfacts, the average rent for Tustin in 2007 was $1,528. Studio and orte-bedroom rental units had monthly rents between $1,138 and $1,292. Two-bedroom rentals had monthly rents of $1,436 and above while three-or-more bedrooms had monthly rents in excess of $1,861. Fable HTM-24 presents a summary of the rental rates. TABLE HTM- 24 AVERAGE RENTAt,RATES 2007 CITY OF TUSTIN Number of Bedrooms Number of Units Average S uare F e Average Rent Studio 200 521 $1,138 lbd/1ba 2,312 733 $1,292 2bd TH 194. 1,074 $1,674 2bd/1ba 706" 974 $1,436 2bd 2ba 1,885 1,024 $1,810 3bd TH 5b 1,441 $1,861 3bd/2ba 21b 1,173 $2,431 Total ...5,903 "` 894 $1,528 TH =Town house unit *Rental survey represents data only for large, investment grade rental properties. Smaller rental properties represent a large segment of the rental market and offer larger, more affordable traits. Source: RealFacts; Comprehensive Affordable Housing Strategy 2008 -2018. When a household (adjusted for family size) pays more than 30% of its gross income for housing, it is considered an overpayment. Based on HUD's figures on affordability, households in the Very Low- income category have affordable net rent of $733 for one bedroom units to $953 for afour-bedroom units. In Tustin, the average rent for a one-bedroom unit is $1,292 to $2,431 for three-bedroom units. It is also important to note that many of the households in the Very-Low income category are large families, thus aone-bedroom unit at $1,292 would not only be in excess of what they could afford, but would also be inadequate in size. Households in the Low-Income category (51%-80% of County median) affordable net rental rates are $890 to $1,166 to per month for housing. The rental survey shows that only studio apartments are affordable to this group (see Tabie HTM-24). It is important to note, however, that the rental survey considered only large, investment grade rental properties and did not report prices of CITY OF TUSTIN TECHNICAL MEMORANDUM 37 HOUSING ELEMENT .2008 smaller rental properties. According to City staff, smaller rental properties represent a large segment of the rental market and offer three-bedroom units that are affordable to low-income households. in summary, the preceding information suggests that, while rental housing is available in the City at rents that are affordable to all income groups, certain types of rental housing, such as single-family homes and condominium/townhouses, are generally not affordable to the City's lower- income households.:. Perhaps most importantly, rental rates for units with two or more bedrooms are beyond the reach of the City's Very-Low and Low income households. This means that aVery-Low and Low.. income household consisting of three or more persons would have a difficult time finding affordable housing of adequate size: ° Table HTM-25 is an illustration of affordable net rents for 2008. TABLE HTM-?5 AFFORDABLE NET RENTS 2005 CITY OF TUSTIN'' Unit Size (No. of bedrooms SVery Low 50% Low 51-80% Moderate (81- 120% 1 Bedroom $733 $890 $1,677 2 Bedroom $817 $994 $1,880 3 Bedroom $886 $1,083 $2,066 4 Bedroom $953 $1,166 $2,228 1 Based on HUD income limits, 2007. Source:'Comprehensive Affordable Housing Strategy, 2008-2018. Shaze of Region's Housing Needs Section 65584 of the Government Code requires each locality's share of the existing and future housing needs to be determined by the appropriate council of governments. Each jurisdiction's allocation represents its fair share of the regional housing needs. The City of Tustin's current and projected housing needs are derived from the Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SLAG). The components of the RHNA are divided between "existing needs" and future "construction needs." Existing needs were discussed earlier in the housing affordability section of this report. Construction needs are defined as the number of units that would CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 38 2008 have to be added to accommodate the forecasted growth in the number of households by July, 2014, as well as the number of units that would have to be added to compensate for anticipated demolitions and to achieve an "ideal" vacancy rate. Construction need includes all income groups (from very low to upper) and not just those households that require assistance. The total need figure is then distributed among the four income groups. The allocations of housing needs by income group are adjusted to avoid Lower-income "impaction" -the over-concentration of Lower-Income households in a jurisdiction SCAG's RHivA fair-share allocation for the 2006-2014 period is 2,381 units. 'The closure of the MCAS has presented the City of Tustin with a total of 947.7 acres available for residential reuse and development. Amongst other types of uses, the City plans to add a total of 4,049 housing units of 'mixed density and housing type throughout the area. The City of Tustin also created a Redevelopment Project Area for the MCAS-'Tustin project. Based on State Redevelopment, Law requirements, at least fifteen (15) percent of the units constructed within a Redevelopment Project Area must be affordable to Very Low, Low, and Moderate-income households. 1 Accordingly, from the potential new.. units to be built on the MCAS site; the creation of a redevelopment project area would result in up to 495 units (243 units plus 192 transitional housing units) being allocated'`for Very Low-income housing and an additional 364 units be created far Low- and Moderate Income households. To meet its fair share of the region's housing needs during the 2006- 2014 planning period, the City's allocation for new construction housing units is 2,381 (refer to Table HTM-26). Of these, 21.5% must be affordable to Very Low income households (earning less than~50% of the County median), 17.2°~ must be affordable to Low-Income households (earning between 50% and 80% of the County median), 19.6°r6 must be affordable to the Moderate-Income households (earning between 80°~ and 120% of County median income) and 41.6% must be affordable to Above-Moderate Income groups (earning over 120% of County median income). 'Table HTM-26 is a summary of housing need distribution for the 2006-2014 planning period. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANEUM 39 2008 TABLE HTM- 26 2006-2014 HOUSING NEEDS CITY OF TUSTIN Income Cate o # of Units % of Total Ve Low <50°~ Coun Median 512 21.5°k Low 50% - 80°,y Coun Median 410 17.2% Moderate 80°~ -120°k Coun Median 468 19.6% Above Moderate 120% Coun Median 991 41.6% Total 2,381=. 100% Source: SLAG RHNA, 2007 ASSISTED HOUSING PRESERVATION ANALYSIS State law (Chapter 1451, Statutes of 1989) requires all housing elements to include needs analyses and programs to address the potential conversion of Federal, State, and locally assisted housing developments ("units at risk") to market rate housing. For example, the federally subsidized loans provided to many low-income housing projects during the 1970s contained provisions that allow the owner to "prepay" the loans after 20 years, thereby removing the low- income subsidy from the project. As part of the "units at risk" analysis, the State requires that local jurisdictions perform the following tasks: ° Needs Analysis: to include an inventory of units at risk of converting to market rate housing for period covered by the Housing Element; an analysis of the potential for loss of affordability controls; a cost analysis of preserving or replacing the at-risk units; identification of agencies willing to acquire and manage these projects; and, identification of funding sources available to preserve or replace them. Quantified Objectives: A quantification of the units to be conserved, and explanation of any difference between the number of units at risk and the number to be conserved. Housing Programs: A description of programs to preserve the units at risk. Tustin has one project that contains units "at risk" of converting to unrestricted market rate rents. Tustin Gardens is a 101-unit Section 221(0)(4) project with a Section 8 contract for 100 units. In 2003, the CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 40 2008 owners of Tustin Gardens signed afive-year agreement with the U.S. Department of Housing and Urban Development (HUD). This agreement serves as a one-year Section 8 contract that automatically renews for four additional one-year terms, provided that funds are available. The current contact expires on July 13, 2008. The project owners have indicated that they intend to renew the contract. Projects financed under the Section 221{D){4) market rate program alone have no binding income use restrictions. The conversion of this project would have an adverse impact for the elderly who may face substantial rent increase or possible displacement. Table HTM-27 lists all of the Federal, State, and locally assisted low-income housing projects located in the City of Tustin due to expire by 2014. Table HTM-28 is an inventory of all multi-family rental units assisted under federal, state, and/or locale programs, including FiUD programs, state and local bond programs, redevelopment programs, and local in-lieu fee, inclusionary, density bonus, or direct assistance programs. The inventory includes all units that are eligible to convert to market rate housing due to termination of subsidy contract, mortgage prepayment, ar expiring use restrictions. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 41 20x8 ~r N N z Nzz ,oH ~~~ ww a~~ ~O~ E"' ~., u O w x H w A o ~ O v O ~ N g W C7 a x : r g ~ . v b w 8 ~, °° ~ ~~ 8 ~o ~ G ~ y ~ ~ .~ ~ ~ ~ ''~ v x 4 'd~ ~ ~' v p ~~JJ w 'b Q '~ ,~ C ~i c~ w W C7 u.-i U ~ ~ > ~ b ~ ' ~ i b ~ ~ ~ ~~ ~~ v ~U ° ~uS~~ ~ W -~ UE -. N HNE H z w ~z ,~ ~z w ~' d x ~~ w H Q O O C7 n a\ ~. .a r+ O e-+ >•. %. v 'C3' W o N ~ g ~~ d; 0 ~ ~ A x~ u ~ v .~ ~ U ~ n~ '~~ °' ~~ c~ ;¢u~ ~ o u~ w ~~~c ~ A FWE~N can G G ~ ~ V . 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O d G C1 O ~ ~0 'C G1 ~ to m to to Q o 0 0 0 0 > > > > > °' ~ ~ ~° O ~ A y A" .`-~ ~ N N ~ ~ N N ,~ ~ N .~ ~ °'u ~ ~ v O~ u ~ Q` 6~ oQ ~ w 3 ~ ~v ~ ~~ ,, ; ~ :cam o~ ~~ ~ ~•~ ~ v~ ~ H HEO- QH UH V H U~ O ' ~o ~o N W g ~ N w O G ~ v ~ Q •~ w o .~ c~ x b; ~W o ~ ~ ~ ~ ~ y ~. ~ as ~ v ~ O ~ x Q ~ ~ ~U ~ ~ U Cw~ Replacement/Acquisition and Rehabilitation Analysis: The City of Tustin has identified the preservation of existing affordable housing units as one of the most cost-effective methods of maintaining the stock of affordable housing therefore ahigh-priority program for the City. The City has identified 277 units of at-risk housing with expiring use restrictions within the six-yeaz planning period, including 145 units of very low income housing and 132 units of low income housing. Given the relative weakness of economic conditions and the housing mazket currently, the City will proceed to negotiate the extension of affordability restrictions on these units in advance of the specific expiration dates for these units. The amount of assistance provided will be negotiated based on the specific economics of each development and the potential availability of leverage financing, such as tax-exempt bonds and 4% tax credits. The total amount of funds allocated to this program is $2,181,672. Local Rental Subsidy. An option for preservation of at-risk units assisted by either project based Section 8 funds and/ or bond financing would be a local rental subsidy to residents. This option could be used to retain ,the affordable status of the units, by providing assistance to residents when their affordable units convert to market rate. Rent subsidies using state, local (Redevelopment Agency, the use of HOME funds, or other funding sources) can be used to maintain the affordability of these at-risk units. Rent subsidies can be structured to mirror the Section 8 program. There are several funding sources that could be used to provide subsidies to residents. Under the project based Section 8 program, HUD pays owners the difference between what tenants can pay (defined as 30% of household income) and what HUD and the local Housing Authority estimate to be Fair Market Rent (FMR) on the unit. Section 8 assistance is only available to very low-income households earning less than 50% of the County median income. The 2007 HLiD median income in Orange County is $78,700. The analysis also assumes the average very low-income household has an actual income of 50% of the County median income, adjusted for household size. The cost of providing subsidies for all 100 at-risk units with potential to expire during the planning period to maintain subsidized rents CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 46 2008 assumes that none of the at-risk units are preserved. The cost of providing subsidies is based on a comparison between fair market rents (FMR) and rents that are affordable for low and Very low- income families. Affordability is defined as rents that do not exceed 30°~ of a household's monthly income. The 2x08 FMRs for Orange County, which encompasses the City of Tustin, are shown in Table HTM-29. TABLE HTM- 29 2005 FAIR MARKET RENTS ORANGE COUNTY' ` Efficiencv* 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom $1,103 ~ $1,238 ~ $1,485 ~ ~z,125. ~ $z,441 *Efficiency =Studio Apartment FMRs include utility costs Source: County of Orange Section 8 program Table HTM-30 indicates that affordable net.rents for very low income households would be approximately $783 for a one bedroom unit, $817 for a two bedroom unit, and $886 #or a three bedroom unit. To E simplify the analysis, the one bedroom units at-risk in Tustin ! Gardens (100 one-bedroom units) are assumed to be senior unit and comprised of one-person households. TABLE HTM- 30 Affordable Net Rents City of Tustin 2008 Unit Size Very Low Low Moderate (No. of Bedrooms) 50% AMI t30% AMI 120% AMI 1 Bedroom $733 $890 $1,677 2 Bedrooms $817 $994 $1,880 3 Bedrooms $886 $1,083 $2,066 4 Bedrooms $953 $1,166 $2,228 ' U.S. Department of Housing and Urban Development published 2007 very low income limits, adjusted proportionally for 60% of percentage of AMI category. Gross rents aze calculated assuming an occupancy standard of 1 person per bedroom plus one, consistent with California Redevelopment Law. Net rents are calculated assuming 30% of gross income spent on rent and then deducting the utility allowances. Source: Comprehensive Affordable Housing Strategy, 200&2015 CITY OF TUSTIN HOUSING ELEMENT TECHNK'AL MEMORANDUM 47 2008 The costs of providing a rental subsidy for all 100 at-risk units affordable to very low income households is shown in Table HTM-31 to be approximately $50,500 per month and $606,000 annually. Actual subsidies required would vary from this estimate, as some households earn below the assumed 50% of the County median and therefore require higher subsidies, while other households may be comprised of a different number of persons and therefore, the assumed baseline affordable rent may be'higher or lower, depending on household size. TABLE HTM- 31 COST OF PROVIDING RENTAL SUBSIDY F(lR VFRV T.(1W TNC'nMR H[)USEHOLDS Affordable No. Total Unit FMR Rent 1 Units Difference Monthly Annual 1 Bedroom $1,238' `' $733 0 $505 $50,500 $606,000 2 Bedroom $1,485 $8i7:,. 0 $668 $0 $0 TOTAL $~~ ~~~ 1 Affordable rent includes all utilities Source: County of Orange Section 8 Program; Comprehensive Affordable Housing Strategy 2008-2018. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 48 2008 CONSTRAINTS TO THE DEVELOPMENT, IMPROVEMENT AND MAINTENANCE OF HOUSING This chapter examines the various constraints to housing development in Tustin. These include governmental constraints and non-governmental constraints GOVERNMENTAL CONSTRAINTS Sections 65583(a)(4) of the Government Code require the Housing Element to include an analysis of potential and actual governmental constraints upon the maintenance, improvement or development of housing for all income levels. The following analysis fulfills this requirement. Land Use Controls The State Planning and'Zoning Law (Sec. 65860) requires consistency of the zoning ordinances with the General Plan. The existing Land Use Element of the General Plan establishes single-family, multi- ~ family and planned residential districts. The zoning ordinance is consistent with the Land Use Element in that azeas of the City are designated for Single-Family, Multi-Family, Specific Plan and Planned Community Districts. An analysis of residential development potential will be provided in the 1-lousing Element. As shown in Table HTM-32, the City's existing General Plan allows a range of residential densities, from a range of 1 - 7 dwelling units per acre in the Low Density Residential designation up to ~5 dwelling units:. per acre in the High Density iZesidential designation, which corresponds to the R-3 Multiple Family Residential District in the Zoning Code. Up to 10 units per net acre aze permitted in the MHP (Mobile Home Park) District. The Zoning Code standards in the residential zones establish a front yard setback requirement of a range between 15 and 20 feet, the side yard setback requirement is 5 feet for interior side yards and 10 feet for corner lots, and the rear yard setback requirement ranges between 5 and 25 feet. CITY OF' TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 49 2008 TABLE HTM- 32 GENERAL PLAN RESIDENTIAL LAND USE CATEGORIES C'TTY (1F TT i~TTN Effective Dwelling Unit per Density Desi ation Descri 'on Acres a Ran e Low Density Detached single-family dwellings 5.61 1-7 Residential Medium Multi-family dwellings including 15.0 8-15 Density duplex, condominiums, townhomes, Residential and a artments.- ''' High Density Multi-family dwellings including 21.53 15-25 Residential duplex, condominiums, townhomes, and a artments. Mobile Home Mobile homes 6.31 1-10 Park Planning Low, medium, and high-density ' ' Community residential°developments. D MCAS Tustin Low, medium, and medium high- z 2 S ' is Plan densi residential develo' merits. ~ Maximum density in dweumg units per acre vs prescnveu oy n~u ~~~uu~ .-u..u~~ Community Documents. Effective dwelling orals per acre for low, medium, and high density residential are 4.485,11.834, and 17.39, respectively. z Low Density (1-7 du/ac), Medium Density (8-15 du/ac), Medium High Density (16-25 du/ ac) SouroP:_ City of Tustin Generai Plan, Land Use Dement, 2001. According to the General Plan build-out table (Table LU-3) in the Land Use Element, a total of 29,623 dwelling units are anticipated within the City limits. The Department of Finance (DOS reports 25,477 dwelling units have been constructed (as of January 2()07) within the City. Affordability can be determined by permitted density of development. According to the State Housing and Community Development Department, affordability standards are as follow: Very-Low income -minimum 25 units per acre Low-Income- minimum of 18 units per acre Moderate income- minimum 8 units per acre CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 50 2008 Other alternative, as developed through the adoption of AB 2348, Statutes of 2004, allows jurisdiction to use "default" density standards of at least 30 dwelling units per acre as determined in the Government Code Section 65583.2 to accommodate the City's share of regional housing need for lower income households. The General Plan Land Use Element's policy plan provides goals for future land development within the City.. These goals and policies are reflections of the direction and images the City seeks for the future. The goals and policies include: 1. Achieve balanced development; 2. Ensure that compatible and complementary development occurs; 3. Revitalize older commercial, industrial, and residential development; 4. Promote econonuc expansion and diversification;. 5. Coordinate development with the provision of adequate public facilities and services; 6. Strengthen the development character and mixture of uses in the°Old Town/First Street area; and 7. Promote an integrated business park character for the Pacific Center East area. Some suggest that low-income housing could be developed in the absence of land use controls related to density. It is true that the reduction or absence of land area requirements per housing units would result in lower land costs per unit, if all factors were constant. However, an analysis of development costs shows that the value of the land is related to its potential yield. For example, an acre of land that was authorized for four {4) dwelling units will be priced at a lower value than an acre of land authorized for six {6) dwelling units. The same analogy holds for multi-family sites whereby the land costs are related directly to the potential yield in terms of unit density. Tustin has a high percentage of multi-family units where only 31.7% of the housing stock is devoted to single-family detached units and 64.80% to attached and multi-family units. CITY OE TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 51 2008 Current land use controls restrict development in single-family residential zones to one dwelling unit on parcels less than 10,000 square feet in the E-4 zone and parcels less than 7,200 square feet in the R-1 zone. However, the Planned Community District has authorized residential subdivisions with single-family lots of less than 5,000 square feet, which has significantly increased density potential to approximately 8-13 units per acre. In addition, the recent provision for Second Residential Unit adopted in 2003 allows a second unit to be constructed without discretionary permit approval provided that the site complies with criteria contained in the Zoning Ordinance. Within the multi-family district (R-3), a 35-foot height limitation and maximum 65% lot coverage precludes the development of high-rise housing projects. In the interest of protecting adjoining single-family lot owners, multi-family structures above 20 feet in height require a conditional use permit when the structures are within 150 feet of single-family residentially zoned lots. While these height limits may place some restrictions on housing development, these limits are designed to maintain compatibility of land use intensity and are commonly used by local governments° as a development tool to further this ideal. Conversely, within Planning Area D of the MCAS Tustin Specific Plan, a 150.foot height limitation up to 180 foot, if approved by .the Community.. Development Director, would be allowed. This provides for layering products (i.e. stacked flats, podium style, etc.) with mixed use developments, thereby providing opportunities for the development of higher density residential products. Projects. are also able to take advantage of the Planned Community District application process where special considerations are needed. Table HTM-33 is a summary of the City's residential zoning regulations. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 52 2008 Q r~ V z "aH N ~ x '~ ~" d w a H O ~ Li7 Q h.l V W CYi W Q Q g o g o 0 ~ O ~ O ~ o ~_ r H ~ ~ y ~ ~ _ W ~. Yr ~ $: ~. O ~ •1.n ~ ~ ~ S _ pC~ ~ ~ O ~ .u Q '~ Y y,,, U y U y ~ ~ J t~l 61 d d /~ y 1J y OZ .~ y ~ ~ ~ ~ .~D i `'"~ o°'i Fy O `'~ y y O ". 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M~ a V~ ~ Q 'R, m c~ C) w Q ~ s ~ .u ~ ~ a ~ ~ ~ ~ a ~O w O ~'+ N W Q l~ Tv~ Homeless Accommodation Homelessness is a statewide concern that affects many cities and counties. Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homeless include the general lack of housing affordable to Low and Moderate income persons, increases in the number of persons whose incomes fall below the poverty level, reductions in public subsidy to the poor, and the deinstitutionalization of the mentally ill. The issue of homelessness is considered regional in nature. Nomadic tendencies of homeless persons make it difficult to assess the population accurately. According to the County.. of Orange's 2004 Continuum of Care Application to HUD, the. County has 10,500 homeless individuals of which an estimated 8,544 are ' unsheltered, 1,169 are in emergency shelters and 787 are in transitional shelters. An additional 24,499 are person in homeless' families with children, with an estimated 23,211 unsheltered, 1,074 in transitional and 214'in emergency shelter facilities. Of these 35,000 homeless men, women, and children, 7,866 are identified. as chronically homeless, 2,218 as severely mentally ill, 2,029 are suffering from HIV/ AIDS, 6,988 are victims of domestic violence and 6,328 suffer from chronic substance abuse. Within the City of Tustin, Police reports and windshield surveys indicate a limited numbers of persons on the street and have shown that there are no established areas where homeless persons congre-gate in the City and that most persons migrate through Tustin to other areas within Orange County, rather than stay for extended periods of time. Information regarding the nature and extent of homelessness by racial and ethnic groups is not available at this time. Nevertheless, in response to Senate Bill {SB) 2, statute of 2~7, the City is required to engage in more detailed analysis of emergency shelters, transitional, and supportive housing. SB 2 defines the following: "Emergency Shelters" as housing for homeless purposes intended for occupancy of less than six (6) months, where no person is denied occupancy because of inability to pay. "Transitional housing" is rental housing for stays of at least six (6) months where the units are re-circulated to another person after a set period. "Supportive Housing" has no limit on the length of stay, provides supportive services and is occupied by low-income persons with disabilities and certain other disabled persons. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 54 2008 SB 2 requires the city to identify the needs for emergency shelters in its Housing Element and to designate zoning districts adequate to accommodate the need. In those districts, emergency shelters must be allowed without a conditional use permit or other discretionary approvals. The city may apply certain written, objective development and management standards, such as number of beds and length of stay, if no zoning district" exists that meets this standard. Alternatively, a community may require a conditional use permit for emergency shelters if they already have enough shelters to satisfy the need; or have entered into partnership agreement with up to two other communities to develop' an emergency shelter that will meet their collective needs. Supportive and transitional housing must be treated as a residential use of property, subject b€~ only to same restrictions that apply to other housing of the same type in that zone. Within the City of Tustin, the following emergency shelters, transitional, and supportive housing are designated as permitted uses as follows: TABLE HTM 33-A SUMMARY OF HaMELESS ACCOMMODATION ZONING REGULATIONS Housing Type Permitted/ Zoning Conditionally Permitted Transitional Home Permitted Planning Area 3 of MCAS Tustin Sp ecific Plan Emergency Shelters Permitted Planning Area 3 of MCAS Tustin Spe cific Plan Supportive housing Permitted Planning Areas 1 and 3 of MCAS Tustin Specific Plan Community Care: Facility Permitted All residentially zoned for six j6) or fewer properties Family care home, foster All residentially zoned home, or group home for Permitted six (6) or fewerl properties ~ Includes congregate care facility, single room occuparwcy hotel, and children s intermediate care shelter Source: City of Tustin, MCAS Tustin Specific Plan The following are transitional homes that have been provided in the City at Tustin legacy. 1. A X92 beds transitional home at the Village of Hope to be operated by the Orange County Rescue Mission. CITY OF TUS'T'IN HOUSING ELEMENT TECHNICAL MEMORANDUM 55 2008 2. A 90 beds intermediate care shelter for abused children and their parents to be operated by the Orange County Social Services Agency. 3. Six (6) new units at Tustin Field I operated by Salvation Army. 4. Acquisition of 16 units in Buena Park operated by Salvation Army. The City assisted in acquisition and contributed grant funds to acquire the units. 5. Fourteen (14) new units at Columbus Grove operated by Families Forward, formerly Irvine Temporary Housing? 6. Six (6) new units at Columbus Grove operated by Human Options. 7. Six (6) new units at Columbus Grove operated by: Orange Coast Interfaith Shelter. With the exception.. of the transitional homes, these units are transparent and dispexsed throughout the Tustin Legacy community consistent with the City's goals and policies to provide adequate supply of housing to meet the need for a variety of housing types and the diverse soco-economic and to promote the dispersion and integration of housing for all socio-economic throughout the community:..... Building Codes As required by State law, the City of Tustin has adopted the 2007 Construction Codes which includes "2007 California Building Code" and the "2007 California Mechanical Code" published by the International Conference of Building Officials. Other codes adopted by the City include the 2007 California Plumbing Code and the 2007 California IIectrical Code. While the codes are intended to protect the public from unsafe conditions they result in an increase in the cost of housing in various ways. The codes establish specifications for building materials and incorporate seismic safety standards that add to construction costs. The technical details of construction, requirements for state licensed contractors to perform the work, plan check, permit processing and z Although these units are located in the City of Irvine, these units were negotiated as part of the base realignment/conveyance process in which Tustin is the Local Redevelopment Agency CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 56 2008 field inspections all contribute to the increased cost of housing. In general, in states and counties where building codes have not been adopted, the cost of housing is less than comparable housing costs in California. Where individuals are permitted to construct shelters to their own specifications and within the limits of their individual construction skills, there will be a much greater proportion of low- income housing available than in those areas which adopt and enforce uniform building codes. It is noted;: however, in those areas that have not adopted and enforced building codes, the low-cost housing may resulted in the creation of substandard building conditions and practices condition;; that threaten the health and safety of the residents. Unquestionably, building codes are a governmental constraint to the construction of low-income housing. The... question to be resolved is the conflicting values between health and safety and low-cost shelter. Originally in 1988 and later revised in 1998, the City of Tustin adopted the State Historic Code as required by State law. The State Historic Code requires relaxation of Uniform Building Code requirements for historic structures. This will reduce rehabilitation costs and may encourage rehabilitation of housing units which have historic value and preserve much needed housing units in the Old Town Area. Site Improvements The restricted and limited ability to tax property in an amount equal to the cost of services and public improvements has shifted site improvement casts to the developer who passes them on to the housing consumer. The philosophy is expressed that no new development should impose a financial liability upon the existing community residents. The voters have expressed this conviction through the adoption of growth control measures and Proposition 13. An increased awareness of environmental amenities creates a public demand for improvements of not only the building site but of the surrounding environment which consists of drainage channels, landscaped parkways, arterial roads to serve the area, recreation facilities, preservation of open space, school facilities, and recreation amenities, all of which add to the cost of housing. Site development standards and requirements in the City of Tustin include clearing and grading the land; dedication and improvement CITY DF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 57 2008 of public right-of-way to include paving, curbs and gutters, sidewalks, drainage, street trees, streetlights and fire hydrants. On- site improvements include the under grounding of cable TV, water, sewer, gas, telephone and electric utilities. Subdivisions and multi- family developments are required to provide landscaping, drainage, perimeter walls, covered parking, landscaping, irrigation systems, and to submit materials and project design for review to assure architectural compatibility. Applicable multi-family structures are required to provide housing and parking accommodations for the disabled pursuant to State law. The review process is used to facilitate the land use and development compatibility objectives of the City and provide developers the opportunity to explore project alternatives, which could decrease development costs in the long run by avoiding costly mistakes. In the development of subdivisions, the'` developer is required to dedicate and improve roadways to serve the area; to provide or improve area drainage channels; to extend water, sewer and other utilities to the site; to dedicate land or pay in-lieu fees for parks and open space for private use in multiple-family projects; and to dedicate land or pay in=lieu fees for public facilities such as schools and fire stations. Developers are allowed to construct private streets or to modify street standards to reduce construction costs, and this encourages and will encourage affordability of housing units in former MCAS Tustin. An additional cost of site development results from the installation of noise attenuation .devices and materials as required by State law. Perimeter walls and/ or berms are required for subdivisions to reduce the noise levels from external surface sources such as railroads, freeways and arterial highways for sites that are located within 65 dB (CNEL) l~ioise Levels. Some of these costs can be reduced by the use of housing set-aside funds in City Redevelopment areas and'^^special State and Federal grant funds to produce low- and moderate-income housing units. Significant public facilities will be needed to accommodate the proposed housing development at the former MCAS Tustin. According to the MCAS Tustin Reuse Plan/Specific Plan, water, sewer, storm drainage, electrical, natural gas, and telephone and cable backbone systems that serve future housing sites will need to be constructed. All housing sites will also have to pay their proportionate share for new backbone utilities, roads, and traffic improvements required in conjunction with development of the MCAS Tustin site and as mitigation for the adopted Final Joint CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM SS 2008 Environmental Impact Statement/ Environmental Impact Report for the Disposal and Reuse of MCAS-Tustin and its Addendum. Fees and Exactions By law, the City's building and development fees are restricted to the costs of performing the services. The building and planning fee schedules of the City of Tustin were last revised in 2007. These fees still remain considerably below those of surrounding communities in the County. The City's fee schedule_ is provided in Table H'i'1v1-34, which illustrates the fees and exactions. that< may be assessed to a residential building developmenfi- project in comparison to other nearby communities. These. fees may be and have been waived by the City Council for projects where. extraordinary benefi#s are derived such as low-income housing: projects, but are typically required to offset City expenses. The fee schedule adopted by the City of Tustin has a minimal impact upon the cost of housing within the City. The argument can be made that the cost of inspecting and serving new developments exceeds the fees and revenues that are exacted for these developments. This is justified as a public service to protect the public health, safety and welfare of the future inhabitants and is partially borne by the general revenues of the City. Additional revenue sources are increasingly important since the passing' of i'roposition 13. Recognizing that housing for the elderly and low-income families is a community objective, the park land dedication ordinance provides the option to the Council to waive these fees for qualifying projects. The City might also consider exploring fast-tracking (preferential scheduling) or fee waivers for critical projects such as those providing affordable 'housing or housing which addresses special housing needs. In addition to the City's fees, a considerable amount of school fees are also applicable to residential projects. The respective school district should explore waiving all or portion of the school fees for affordable housing projects. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 59 2008 TABLE HTM- 34 COMPARATIVE DEVELOPMENT FEE SUMMARY t Fee Chazges Planning Fees Tustin Anaheim Costa Mesa Oran e E nmental nvuro Initial Determination $95 N A N A $230 Ne alive Declaration $125 N/ A $910 $1,000 de it EIR Processing-minor $2,500 $30,000 deposit Consultant cost $3,000 deposit EIR Processin -ma' r $4,000 + 10% Plannin General Plan Amendment $985 $181.10/hr $3,000 plus $3,000 deposit ($12,000 deposit) $125/acre over 1 acre Zone Change $950 $181.10/hr - $1,570 $1,000 deposit $l070o de 't Tentative Tract Map $3,000 deposit $181.10/hr $1,160 $3,000 deposit $10,000 de 't Design Review $3,000 deposit $181.10/hr N/A $1,000 deposit $4,000 de i Planned Develo went Review N A N A $1,450 $1,000 de it Conditional Use Permits and N/A $181.10/hr N/A N/A Variances $10,000 de 't En 'eerie & Subdivision Final Tract Map $56/unit '' $709/lot ($35,450 de 't $85/hr $1,500- $30 unit Sewer Plan Check $31/unit $109-153/hr:. $3,000 de 't N/A $500 Water Plan Check $106 unit $9.46 if N A $54-$112 hr Stormdrain Plan Check $296.91/unit $9.46 if $628.30 unit $20 unit Street Plan Check $296.91 unit $9.46 if $85 hr $20/unit Surface Drains a Plan Check` Iii A $98-119 hr N A N A Gradinl; Plan Check 182/unit $98-119/hr $224 unit $30/unit C itai Facilitees & Connections a Water fixture units $400 unit $663 unit N A $300 unit Sewer fixture units $600 uiut $2,360 unit $3,000/unit $75 unit Sanitation District Annex N A $582 unit N A N A Drainage (one time fee to ro e $984/unit $1,000/acre $600/unit Transportation Corridor $4,560- Zone A $3,246-Zone B $2,725/unit $3,076/unit $3,176/unit Si Assessment N A $88 unit N A N A Park Facilities Fair Market Value of land $4,316.83/unit $10,875/unit $8,894 School Facilities Tustin, Santa Ana, and Irvine Unified School District $5,1245/unit ($2.63/SF) $7,012/unit $4,600/unit $5,125/unit Oran e Coun Sanitation District $2,165/unit N/A N/A N/A ~ Compazative fees based on hypothetica110 acre subdivision of 50 detached units at permitted density of 5 dwelling units per acre. "Other fees' vary considerably by jurisdiction and aze not included in this analysis Source: City of Tustin, 2008; Building Industry Association, 2006-07 Land Devel~ment Fee Survev for Oranee County 2007. __ CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 60 2008 Processing and Permit Procedures The City recognizes that the myriad of agencies and permit approvals required for a development results in atime-consuming and expensive process. The value of land increases when entitled for development and all necessary permits have been obtained for construction. State law establishes maximum time limits for project approvals and City policies provide for the minimum processing time necessary to comply with legal requirements and review procedures. A standazd chart is provided with every design review application that outlines the procedures and requirements for project approvals. The Community Development Department serves as the coordinating agency to process development applications for the approval of other in-house departments such as Redevelopment Agency, Police, :.Public Works/.Engineering, and Parks . and Recreation. These departments work together to simultaneously review projects to ensure a timely response to developers and act as the City's Design Review Comm;ttee. Pre-application conferences with the Community Development Department provide the developer with information related to standards and requirements. applicable to the project. For the more complicated. development projects in the Special Management Areas, Specific Plans provide a standard Design Review Process. Application packages are provided to developers and include the processing charf `'and copies of pertinent information such as street improvement construction standazds, subdivision and landscape requirements that aid developers in the preparation of their plans. All projects are processed through plan review in the order of submission. Recognizing that profit margins are reduced and risks are increased by processing delays, the City has assigned priority to plan review and permit issuance for low-income housing projects. Additionally, contracts for plan check services provide additional staff to process projects in a timely fashion. If a complete application is submitted, plans are simultaneously reviewed by all Design Review Committee members and plan checking departments rather than one agency reviewing plans at a time. This process also pro- vides fora "one-stop" processing system which is required by State law in an effort to aid the development process, reduce confusion and m;n;m;~e development costs. Additionally, for projects of CITYOF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM t51 2008 significant benefit to the low-income community, such costs can be waived by the City Council or the use of redevelopment set-aside funds can further reduce or eliminate these costs for low-income Projects. Workload Another governmental constraint is the number of staff and amount of staff time available for processing development projects. Since the workload is determined by outside forces (economy and market for housing), a shortage of staff time may occur during strong economic conditions which could lead to increased processing time for development projects. MARKET CONSTRAINTS The availability of housing is affected by the interrelationships within the market place of price, income of buyer, and interest rates. The non-governmental constraints upon the maintenance, improvement or development of housing in the City relate primarily to low- and moderate-income families. High-income families have the option of selecting housing accommodations that meet their preferences. Since environmental amenities such as hillsides with views and beach access attract high-value developments, high- income families gravitate to the foothills and beach communities. The provision for housing opportunity to all income segments is further emphasized in the East Tustin development whereby single-family attached and detached homes are proposed for moderate- and higher-income households. Additionally, multi-family projects such as apartments and condominiums in East Tustin are provided for the low- and moderate-income groups. The same is true at the former MCAS Tustin area, where provisions for affordable units are required at an average of 20.9 percent. Market rate homes are proposed to accommodate diverse populations from all income levels. Financing Interest rates can have an impact on housing costs. Some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates will cause existing households to overextend themselves financially, CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 62 2008 and create situations where high financing costs constrain the housing market. An additional obstacle for the first-time homebuyer is the minimum down-payment required by lending institutions. Even if Tustin homebuyers are able to provide a 3 percent down- payment and obtain a 6.00 percent 30-year loan Moan rate for FHA or VA guaranteed loans for January 2008), monthly mortgage payments on median priced single-family detached homes in the City place such homes out of the reach of moderate and lower-income households in the City. At a b.00 percent interest rate, monthly mortgage payments on median priced condominiums and townhouses can place such units out.. of reach of Tustin's low and very low income households {see Tables HTM 22 and HTM-23). The greatest impediment to homeownership, however, is credit worthiness. According to the Federal`' Housing Authority, lenders consider a person's debt-to-income ratio, cash available for down payment, and credit history, when determining a maximum loan amount. Many financial institutions are willing to significantly decrease down payment requirements and increase loan amounts to persons with good credit rating. Persons with poor credit ratings may be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. Poor credit rating can be .especially damaging to lower-income residents, who have fewer financial resources with which to qualify for a loan. The FHA is generally more flexible than conventional lenders in its qualifying guidelines and allows many residents to re-establish a good credit history. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to report lending activity by census tract. Analysis of available HMDA reports does not indicate documented cases of underserved lower income census tracts in the City. Profit, Marketing and Overhead Developer profits in the last several years in Orange County generally comprise b to 9 percent of the selling price of single-family homes and slightly higher for attached units. According to the CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 63 2008 recently completed Comprehensive Affordable Housing Strategy3, minimum developer profit is estimated at 12 percent of development costs, based on input from developers and the Building Industry Association. This level is considered a baseline profit or "hurdle rate;' representing the minimum necessary for the deal to proceed. In the past, due to high market demand in the communities like Tustin, developers were able to command for higher prices and realized greater margins for profit. As demand increased and prices rose, this profit margin was impacted by the escalating costs of land resulting. from a shrinking supply of land. Marketing and overhead costs also add to the price of homes. The Comprehensive Affordable Strategy 2008 estimated developer overhead is at 4 percent of total development costs. The factor having the greatest impact on the price of land is location. To a lesser degree, the price of land is governed by supply, demand, yield, availability; :.cost of the infrastructure, and the readiness for development as related to governmental permits. Within the developed.:. infill areas of the City, there is a scarcity of land available for residential development. The supply of land is largely limited to the former MCAS Tustin area since the East Tustin Specific Plan area has been built out. Land zoned for commercial or industrial development is ..:not appropriate for residential development. The development of additional housing accommodations within the urbanized area will require the demolition and(or redevelopment of existing structures, since there are very few vacant lots remaining. The unavailability of land within the developed areas of the City and the price of land on the fringes are Constraints adding to the cost of housing and pricing housing out of the reach of low- and moderate- income families. Cost of Construction One important market-related factor in the actual cost for new housing is construction costs. These costs are influenced by many factors such as the cost of labor, building materials, and site preparation. The Residential Cost Handbook, published by Marshall a City of Tustin Comprehensive Affordable Housing Strategy, David Rosen and Associates, 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 64 2008 & Swift estimates that the cost of residential two-story wood frame construction averages $87.85 per square foot. Therefore, the costs attributed to construction alone for a typical 2,200 square foot, wood frame home would be at rrLnimum $193,270. A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing may provide for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. ' As the number of units developed increases, construction costs over the entire development are generally reduced, based on economies of scale. This reduction in costs is of particular benefit when' density bonuses are. utilized for the provision of affordable housing. Although it should be noted that the reduced costs area most attributed to a reduction in land costs; when that cost is spread on a per unit basis. CfTY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 65 2008 T7tis page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 66 2008 ENERGY CONSERVATION As the price of power continues to rise, households have through necessity been devoting more of the household income to energy cost. This condition has further eroded the affordability of housing. No relief is in sight, as one representative from Southern California Edison reinforced in a recent news article: "higher rates are necessary to assure reliable supplies of electricity in the years ahead." The City can explore possible partnership with utility companies, to promote energy rebate programs. There are energy conservation measures the City of Tustin can promote and others that are mandated by State laws. The State of` California has adopted energy conservation standards for residential building in Title 25 of the California Administrative Code. Title 25 applies to new residential construction or an addition to an existing housing unit. Active solar systems for water heating can be encouraged but they are still rather expensive and can only be used as a back-up to an electric or gas system. They are cost efficient in the long run but pose ashort-term impact to affordable housing. i'ermits for solar systems can be approved ministerially by the Community Development Department, and permits are issued same-day whenever possible. The City can also explore and streamline permits processing for approved green building. Other energy conservation method could be contributed to site and building design. For an example through proper lots placement at subdivision and buildings' orientation, maximum day lighting can be achieved. Light- colored "cool roofs" can also be' applied to new homes or roof replacement projects to promote energy savings. Water-efficient landscapes, efficient irrigation, and use of permeable paving materials also would:- contribute to energy saving. This can be achieved through updates to the City's landscape and irrigation guidelines. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 67 2008 This page intentionally left blank. CITY OE TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 68 2008 SUMMARY OF PREVIOUS HOUSING ELEMENT PROGRAMS To develop appropriate programs to address the housing issues identified in this Housing Element Update, the City of Tustin has reviewed the housing programs adopted as part of its 2002 Housing Element, and evaluated the effectiveness of these programs in delivering housing services. By reviewing the progress in implementation of the adopted programs, the effectiveness of the last element, and the continued appropriateness of these identified programs, a comprehensive housing program strategy has been developed. The following section reviews the progress in implementation of the programs, the effectiveness of the 2002 Element to date, and the continued appropriateness of the identified programs. The results of .the analysis provided the basis for developing the comprehensive housing program strategy for the future planning period, as well as goals for the planning period in progress. PROGRESS IN IMPLEMENTING THE 1999 GOALS AND OBJECTIVES Table HTM-35 presents a comparison of the quantified objectives of the previous element and actual achievements since 1998. Table HTM-35 contains a list of projects by program area during the 1998- 2008 period. The 1999 SLAG Regional Housing Allocation Model indicated a new construction need in Tustin by 2005 of 3,298 units, of which 694 units were for .very low income households, 489 for low income, 778 for moderate income and 1,337 upper income. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 69 2008 TABLE HTM- 35 SUMMARY TABLE EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS: 1998-2008 New Construction Rehab enervation Housi Assistance Income Grou Goal Actual Goa11 Actual Goals Actual Ve -Low 694 472 183 3951 Low 489 192 162 64 Moderate 778 1070 23' 115 Above Moderate 1337 2555 Total 3298 4289 801 368 2729 4130 ~ Although goals were not allocated to specific income group, the c.tty attemptea to utuize ictv~ri percentages to fulfill fZHNA objectives. Source: The City of Tustin, Housing Element, 2002; Effectiveness of Housing IIement Programs, 2008. REVIEW OF PAST PERFORMANCE State law establishes afive-year cycle regulating housing element updates. In compliance with the SCAG cycle, the Tustin Housing Element was updated`''in 19$9 at which time it was found to be in compliance with State law, and was updated again in 1994. In 1997, the City of Tustin initiated a comprehensive General Plan update, and the Housing Element was again updated to accommodate the MCAS Reuse :Plan and to ensure consistency with other General Plan Elements, as well as to address recent changes in State law. These amendments .were adopted on January 16, 2001. In 2002, the City once again updated its Housing Element and was certified by The State's Housing and Community Development Department in compliance with State's Law. Review of Past Housing Element Objectives Tables H'i'M-36 and HTM-37 summarize the performance of the 2002 Element's goals and objectives. The tune period covered in this analysis is January 1,1998 to April 2008. The Orange County Business Council prepared a 2007 Workforce Housing Scorecard for Orange County. The Scorecard examines the state of housing in Orange County as it pertains to affordability, population, and housing unit supply numbers, as well as the relationship between job and housing units. Based upon analysis, the City of Tustin ranked no. 2 in total job growth and no. 3 in the housing as a percentage of total Orange County housing units. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 70 2008 Appendix D of this Technical Memorandum provides a complete 2007 Workforce Scorecard for Orange County. The following discussion is a brief highlight of the progress, effectiveness and appropriateness of the past Dousing Element Objectives. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 71 2008 x a a F W a W z a x w O W W ~w W W M H w a 4 H ,~ ^ Y~ ~ O ~ ~ d V cC ~ ~ a O ~' y f]. 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U ~ a ~txAUC~O 00 ~ ~ G ~~~~~~3v~~ ~ °' ~ ~ ~ a. ~ c v ~ F G ' °n, ~ C ~ C ~ ~ :a ~ u ~ a a + ~ ~ ~~a, -a .~ a o '~ W o ,a, (n . a TS ~ H G ,~ O O G~~ O w U v N G~ ~~ .~' 00 0, R o ~a o Q c~i o S a o p., ~ m ~ N O ~ L R ~ fV ~ TS cC U a ~ tV S -[ R G U u O O~~ a~~~~a~~3~ ~ - v '~ p G r~" b0 eo°~`~x•S ~~ ~. ~ cs a a... ooo ~ d v ~ °' a'~ ~ ~~ ~ o ~ v x °"b °o ~ ~ ~ R. .N ~' CJ L' ~ ~ W ~' ~ GJ a O ~ R a ~ ~ Q, O ~ G ,C . ~ C a m G k. O~ O N O O G~ ~" tom. O ~O (~ O 1,~'+ N W -~-, n {~ ~~ Ox ~~ ~i Q ~i a E" z w w w N o~ x w O w z w >'! W w N x a PCi d H v~ ~~ ~~R~ g N y ~ ~ ~ ~ F U 0 N u i at G G ~ ~ O V' s0..C w ai •~ N ~ o ~ cVp~ ,~ N .:~ ~"~ v~ tC R cC t+~'~ w LL(vjj~ w ~ F CV 6~. 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F. p ~. 'CS O v ~ ~ 0. U N 41 '3 ~ ~ -~ ~ ~ o ~ `'~ w c ~ c~i ~~ oo O ~ Q ~ ~ bU G x O ~ [ U ¢ ~ '~n ¢ iii O a a ~ ~, ~ O O ' c x ~ ^ - ~ x w 'O ` ~ m v~" x 'r . , v _R Q .,3 ~' ~ ~ ° ~ U ~ ~ r °' ~' ~ -. c ~ °~ v v a ~ R v ¢ ~ ~ ['„¢~' W ~ ~ ~ ., , ~ Q~ ~u off' -~ ~ ~ ,~' O O , f~, O A U i0 • • • `~ ~C. U 'C3+ w 0 ~ W W z ~ G v ~ p R ~ ~ .~ v ai v~ .~ ~ p ;~ ~~ O ~ O ~~ 3 y ~ fA v ~~ ~OLs. G O `~"+ 'C d .~ ~ ~ ~ ~ U ~ cx ¢ c9i °p u ~ .~ ~ G O a a ~° ~~>~ ~>Q»~°'v U A ~ V ~ Q ~ ~ ~ y ~ .G y 0..~ ~ G Q'"w ~ O O O O N ue p ~ p C ~" , .. s (~/ O ~ ~ ~ v `p ~ M 1~ y W O ~ ~ ~ ~ ~ •~ (~ ~ ~ ~" ~ •~ ~ ~ v ~ ~ ~ ~ ~ °'~ Ts ?: x fi c G ^a ^cs ~ ~ ~ . • U R ~ N O V ~ O ~ ~ ~ O t+MV ~ 0.G `.~ Q a O a w z w M W z_ ~~ Q x Hw O w w F,_ V w g a~ g .~ ~ • v ~ ~ 00 z ~. ~ . ~ • ~ ~ ,~ ~ ~ ~o ~v~ yvQ~ ~ ~x~ oho .C ~ G ~ ~~ v ~~ y p w ~ o~ .~ +~ y ~~ ~ .~ ~, oo ~ ~ O 'C3 ~ ~ cn ~ y aow~, sz~b ~ u •m m a~i a ~ oo + a w a¢~ u ~ ~ ~ N A m p' t~ ~ ~ ~ 0 ~ Q tC d a y ~, O O O c4 ~ a a. w a z ¢ ~ ~ 7S c v ~. a o A pa O G R y ~ y . ~ ~ ~ ~ G1 ,~ ~ y F" "' ~ ¢ ~ +~-' Q,' ~ N v M ~' bq ~ ~ vn ox ~ ¢ o a. ~., Q y ~ m ~ ... ~ i ~ o~ + ~ ~ W ~ G R r ~ W OJ «S ~ m x ~ GJ ~A >, ~ •~ ~ ~ p G. C~ ~ ~ ~ ~ ° a ~ 3 ~ ~~F ~~ ~ ~ ~ .c a ~ » ~ ~ ,c, ~ °; r. R, ~ ~ x ~ 'O w ~ ~ G • .. •0 ~ , cn U v a~ o y ~ ~ en ~ e+1 H H R w o ~ .~" GO Q~ (J r o ~O .~ ~ ~ ~ N ~ ~ W :~ ~ ~ a ~ a. ~ ovg W ~ o v x ~~ vv ~.~~ ~~~ ~ a ~ ~ ° ~ C „ ~ ~; ~' ~ ~ O ~ m ox.~ v ~' y °: o ~ y ¢ ~ ~ O rx ¢ chi a, ~cs o~ d O d d ~ a¢ v -~ v 7 ~ O ~ ~ . ~ C ~ F. y w O -C ~ a ~ 1 °A ~~ ~ v ~m ~ ~ d ca •G cV x ~ ~ O w ~ :3 O ~ W i ~ . ~ o G ~ ~ .~ •~ ~ ~ ~ x ~ ~~ y a ~ ~ O ,r a i ^G ~ y ~ .~ w ~ ^~ ~ 0. W ~ U a, ~ y .~ UEW-~ ~ ~ ~ a ~ ~ e!~ W G •C ~ O.. R' ~ d ^~ V E-+ W w w z x w a w w >_ w w w w M x W a Q H ~ F M .G ~ ~ '~ ~ ~ ~ ~ ~ ~' a ,~ ~' 3 ~ v o ~ a R ~ ~ S ~ Q ca '~ C Gr y ~ ~ ' `~ v~ Q ~ ~ G y O ~ ~6 x ~ v a ~p "~ O ~ Q"~ m v in 3 Z a Q v .~ w ~, 3 ~ w v _ c ~ ~~ v v ~ ~ ~ ~ ~ ¢ Q ~ ~ ~ ~ G V ~ N G y o '° .o ~ ;~ + °J ~ ~ x a v . ~ ..~n~ ~ o vii Z5 p `~ +,,, d '" p ~ O e~ ~ ~ v gyp, O ,C~ h 'LS ~ VJ ief '17 C O ~ av+ V O G :~+ ~ p 0 O i23 V 1..~ 61 ^~ ~' ;~ H ~ ~ ~ "t i ~ O ~' 4l CCG p v~ o y V ~ `~ O ~ 0. • , i~ v 'v c a a i v ,~ '~ ~ . c~. ~~ Ts U o Sri S O S f~ N .~ O~ id O V .~ > N a+ ,~ .y ~ y ++ ,~ d .~ ~ O ~ N ~ G G ~ ~ G G cn eo .~ a,ow a o x ~ T Grow G1 o x a~ Q R y ~,' ? U~ ~ ;~ G ~ °>' v¢ LO v y Q D w Q~¢~ ~~Qc~~'i v ~ ~ a~ ~ a ~- a a G ~ >, yw v~ o ~ c,~ o¢a ~ ~¢ o,~ :~~ » ~ ~i r d~ e0 a>ac. 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U ~ GC C7 V v ~o ~o N W O //^~ vI Ox ~'' U Uti O N W W C7 C7 O w H z W W W z ~.r x w 0 w z W w M W ra W 4 N 00 ~~ ~y ~U ~~ Ov ~~ TABLE HTM- 37 PROGRESS TOWARDS OBJECTIVES 1998-2008 CITY OF TUSTIN Unit Typ~pescription I Objectives I Accomplishments ~ ~ Very Low ~ Low ~ Moderate J Upper NFW C'(IN.STRUCTION Adequate Sites (new units) 1,378 1,378 0 0 884 494 MCAS Tustin new housing 2,599 1,573 70 64 109 1330 MCAS Tustin Emergency2 192 192 192 MCAS Tustin Transitional Family3 50 49 49 MCAS Tustin Social Services ~ `~ `~ Granny Flats 10 0 , New Owner Housing 432 953 17 128 77 731 New Senior Housings `~ `~ ~ Density Bonusb 160 182 Recycling of SFD to MFD ~ 0 Subtotal 5,003 4,289 472 192 1,070 2,555 RHNA (1999) 3,298 694 489 778 1,337 Difference 1,705 (?.22) (297) 292 1,218 REHABILITATION Owner Occupied Housing `~ Rental Rehabilitation Loans/Grants 120` 56 19 14 23 Multi-Family Acquisition/Rehab/ Conversion/Resale 100 Multi-Family Acquisition/Rehab/ Conversion/Rental 200 Total Rehabilitation 460 56 19 14 23 PR FCFR V ATION Rancho ~~ 69 69 8 61 Rancho Maderas ~ ~ 6 ~ Rancho Tierra 51 51 38 13 Affordable Senior Housing -Mitchell 20 20 12 8 Senior Boazd & Caze -Bryan Ave. 18 18 18 Old Town Residential ~ Tustin Gazdens 100 100 100 Total Preservation 341 312 164 148 nTHFR AFFORDABLE HOUSING 1~ Time Homebuyer Down Payment Assistance Loans ~ ~ 6 6 County Mortgage Credit Certificates s 0 Section 8 Rental Voucher Assistance 1,500 3,500 3,500 Shared Housing Referrals 75 ~ ~ CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMOi2ANDUM 98 2008 TABLE HTM- 37 PROGRESS TOWARDS OBJECTIVES 1998-2008 CITY OF TUSTIN Unit T escri lion Quantified Ob'ectives Accom lishments ~ Ve Low Low Moderate U er Deed Restrictions 9 620 243 70 64 109 Homeless Housing Partnership Program 242 Emergency Shelter 10 252 331 331 Total Other Affordable Housing 2,729 4,130 3,951 64 115 Total Non- New Construction 3,530 4,498 4,134. 226 138 ~ Number of Units. z Orange County Rescue Mission s includes: Human Option - 6 units; OrangeCoast Interfaith - 6 units; Salvation Army - 6 units; Irvine Temporary Housing -14 units; and Salvation Army (acquired by Tustin for units in Buena Pazk) -16 units. + Tustin Family Campus (Orange County Social Services Agency) - 90 beds-- s 54 units at Heritage Place and 201 units at Monarch Village e 182 density bonuses granted to Lennaz at Villages of Columbus ~ Temporarily suspended. e Program suspended. v Includes: Tustin Field I - 78 units; Tustin Field Ii - 40 units; Arborwalk -10 units; Cambridge Lane 36 units; Camden Place - 37 units; Clarendon - 42 units 70 Iruludes: Orange County Rescue Mission -192 units; OCSSA Tustin Family Campus - 90 units; Human Option - 6 units; Orange Coast Interfaith - 6 units; Salvation Army - 6 units; Irvine Temporary Housing. -14 units; and Salvation Army (acquired by Tustin for units in Buena Pazk) -16 units. Sources: (i) Effectiveness of Housing Programs 199'8-21108, City of Tustin; (2) Five Yeaz Implementation Plan for the Town Center and South Central Redevelopment Project Areas for Fiscal Years 2005-2006 tv 2009-2010 CITY OF 7'i~STIN HOUSING ELEMENT TECHNICAL MEMORANDUM 99 2008 This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 100 2008 APPENDIX A AFFORDABILITY GAP ANALYSIS CITY OF TUSTIN HOITSING ELFNIFNT TECHNICAL MEM0~2ANDUM 2008 ?7iis page intentionail~ left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 City of Tustin Comprehensive Affordable Housing Strategy Appendix B Affordability Gap and Leveraged Financing Analysis February i 5, 2008 Prepared for: City of Tustin Submitted By: David Pau[ Rosen & Associates Nortfiern California David Rosen, Principal 1330 Broadway, Suite 937 Oakland, CA 94612 2509 Phone: S 10-4$1 2552 Fax: $10-4$1-2S54 e-mail: David~DRAConsultants.rnm www.draconw harrCs.wm Soutt~rn California Nora Lakt-Brown, Principal 3941 Hendrix St Irvine, CA 92614-b637 Phone: 949-559-5650 Fax: 949-559-5706 e-mail: NoraODRAConsultants.com www.draconsul~nts:com Table of Contents ........ 1 ................. 1 ry .......................................... 0 Executive Summa ••••••••'•"' .... . : .......... 9 ................... ......... t)'Pes ............... 2.0 Housing Proto •••••••••••••••••••••••••••• .. 9 3.0 Financing Scenarios, Income Targeting and Affordable Housing Cost......... . 9 . ... 1 Financing Scenarios ................................:............................ 3 ........... . ............ ............. 9 3.2 Target Income Levels ................................................ 12 3 Affordable Housing Cost Definitions ....................................... 3 ............. . 12 ............................................................ 4 Occupancy Standards . 3 ............. . ...... 13 3.5 Utility Allowances .................................................................. ....... rdable Net Rents and Affordable Monthly Housing Cost... Aff ........••••• 14 o 3.6 ......... t 6 4.0 Development Costs ......:..................:..........................:.................. .... 16 4.1 Developer Interviews, Rental Housing Development ........................... 16 Housin ....... 4.1.1 Jamboree g ............................................... .............. 17 ............................ 4.1.2 Keyser Marston Associates .............. .............. 4.2 Developer Interviews, Owner Housing Development ............ ...........:.. 17 18 4.2.1 Springbrook Advisors .................................................. .............. ....... 18 2.2 Nevis Homes .............................:................................ 4 ....... . 18 4.2.3 The Olson Company ................................................... .............. 18 ................... 4.2.4 Keyser Marston Associates ...................... ............... ....... 19 4.2.5 C1M Group ................................................................ .. ...... 19 4.2.6 ~liiam Lyon Homes ................................................. ............... 19 2.7 Sun Cal Companies ................................................... 4 ............... . .. 19 ............... 4.2.8 John Laing Homes ...................................... ............. .... . 20 3 Land Acquisition Costs ......................................................... 4 . ......... . . 21 ............... 4 Development Impact Fees .........................•••••••••••• 4 .............. . 5 Hard Costs and Site Improvement Costs ...•••••••••••••••••••••••••••• 4 ••••••••"•"" 24 . Development Costs ..................... 6 Estimated Total Prototype 4 ................ 25 . 26 .................. 0 Operating and Financing Cost Assumptions ......••••••• 5 ................ . 26 1 GeneralOpe .......................... rating Costs, Rental Prototype 5 ................ . ............ 29 ....... 5.2 Financing Costs ............................................................ .... City of Tustin Page i Affordability Gap and Leveraged Financing Analysis 6.0 Per Unit Affordability Gaps ........................................................................ 29 7.0 Renter Leveraged Financial Anaiysis ........................................................... 32 7.1 Hard Construction Costs ..................................................................... 32 7.2 Eligible Basis and Tax Credit Equity Cafculations ................................. 32 7.3 Income Targeting Scenarios, Occupancy Standards and Affordable Rents ...............................:.......................................... 33 7.4 Operating Costs and Vacancy ............................................................. 34 Attachment A: Ownership Affordability Gap Analysis Tables Attachment B: Renter Affordability Gap Analysis Tables Attachment C: Leveraged Financial Analysis, Renter Prototype City of Tustin Affordability Gap and Leveraged financing Analysis Page ii List of Tables PAGE 1. .......... Homeowner Per Unit Subsidy Requirements .................................... 4 2. ....................................... Tenant Per Unit Subsidy Requirements ................ 6 3. Average Per Unit Subsidy Requirements, Leveraged Financing ......... 8 Scenarios ...:.................................................................................... 4. Owner Housing Prototype Projects ............................................................. 10 11 5. Rental Housing Prototype .......................................................................... 6. ..... Affordable Housing Cost Definitions 12 7. Current Monthly Utility Allowances, County of Orange...•••.•••.••••••••••••••••••• 14 ..... :: ..15: . . 8. ... Affordable Net Rents ...:..................................................................... 9. Affordable Monthly Housing Cost ••••••••••••••••••••••••""' 1.5 10. Tustin ~egaty Comparable Land Prices ...................................................... 20 11. Per Unit Land Acquisition Cost Assumptions by Prototype......•••••••••••••••••••• 21 12. Development Processing and Impact Fee Assumptions, Owner Housing ................................................................... t 22 ypes .......................... Proto ment Processing and Impact Fee Assumptions, Rental Housing lo D 13. p eve ............. 23 14 Proto ........................... ........................... pe ........................... Net Square Foot Hard Construction Cost Assumptions by Prototype ..... Per 2S . . 5 . timated Prototype Development Costs, Owner Housing Prototypes......... E 27 . 1 s e Development Costs, Rental Housing Prototype........... otot d P 28 16. yp r Estimate 17. Development and Financing Cost Assumptions, Owner .......... 30 Housing Prototypes ............................... 18. Development and Financing Cost Assumptions, Rental .................. 31 ............. Prototype ....................... ........................................... 1g Income Targeting Assumptions for Leveraged Financing Scenarios ............. 33 . struction and Permanent Sources and Uses, Leveraged Financing C 20. on h,pe ...................... Analysis, Rental Housing Proto ••••••••••••••••••••~••• 3S City of Tustin Page iii affordability Gap and Leveraged financing Analysis 2.0 Housing Prototypes Tables 4 and S describe the owner and renter housing prototypes, respectively, examined in the gap analysis. These prototypes were developed in collaboration with City staff based on recently constructed and planned residential developments. The prototypes are designed to represent typical market-rate rental and owner housing developments in Tustin in terms of the resident population, product and construction type, density, number of units, unit mix by bedroom count, and unit size. 3.0 Financing Scenarios, Income Targeting and Affordable Housing Cost 3.9 1Financing Scenarios DRA first modeled the owner and renter housing prototypes under a conventwnal financing scenario that does not incorporate leverage from aitemative sources of public subsidy for affordable housing. Because of the limited availability of affordable housing subsidies, it is not possible to predict the ability of any particular affordable housing development to secure such subsidies. We calculate the affordability gap per unit by unit bedroom count and homebuyer/tenantlncome level. In the leveraged financing analysis, described in Section 7.0 below, we model the renter housing prototype assuming use of the Low ln~come Housing Tax Credit and tax-exempt bond programs. 3.2 Targe# Income Levels The affordability gap analysis uses income limits as commonly defined by HUD, California Redevelopment Law, California Housing Element law, and most affordable housing assistance programs. Extremely low income households are defined as households with incomes up to 30 percent of AMI. Very low' income households are defined as households with incomes from above 30 percent to 50 percent of AMI. Low income households are defined as households with incomes from above 50 percent to 80 percent of AMI. Moderate income households are defined as households with incomes from above 80 percent to 120 percent of AMI. All of these income limits are adjusted by household size using HUD family size adjustment facfiors. The affordability gap calculations are based on the 2007 median household income of X78,700 for Orange County. City of Tustin Affordability Gap and Leveraged financing Analysis Page 9 Uable 4 ONmer Houdrss Prototype Projects City of Tustin 2008 Own>~ t Owner 2 Owner 3 Owner 4 Stacked Flat High Density Mined Use, pgOTOT3,pE 1lttachedTownhome Condominium Cortdominlum . Ground Floor Retai UNIT COUNT 234 Units 325 Units 400 Unhs 20 Units ZOhI1NG R3 R3 PC C2 P NUMBER OF STORIES 2.5 Storks 2 Storks 4 Storks 3 Sboria R Stoles Restd.) CONSTRUCTION TYPE Type V Wood Frame Type V Wood Frame Type V Wood Frame TYPe V Wood Frame DENSITY (DU'S/Acre) 18.0 25.0 45-50 29.0 FLOOR AREA RAT10 (FAR) 0.5 OJ 1.5 1.5 LAND AlZEA ~~ 13.00 Acres 13.00 Aaes 8.00 Acres 0.69 Aces UNITS BY BR COUNT Owe Bedroom p 75 100 4 Two Bedroom m d ~ ~~ 125 0 roo Ttvr3e Be Four Bedroom 54 50 50 0 UNIT SIZE stet Square Feefl One Bedroom WA 950 050 1 1,000 1,150 1,700 1,400 Two Bedroom 1,050 300 1 , 1,200 1.650 1.750 Three Bedroom Four >iedroom , 1,700 1,500 1,800 WA t 5 t5 ~~ ~ Feet 1.296 I, l42 1.350 , BLDG. SQ. FEET Net LivGtg Arra ~~~ 371,250 540.000 30.300 Square Feet 2,500 305,800 2,000 373,250 0 540.000 0 30,300 TYPE OF PARKING Garage Carport Parking Strt-cture Garage NO.OF PKG. SPACES 0 40 468 0 Ca~ p 650 ~ 0 100 0 _ 59 0 0 700 0 Farkirss Stnrcfisrte 527 732 800 50 TOUL SPACES City ofTl~tn Page 10 Afforda6iNty G+P and L~var+Red Fnancing Matyds T.bk 5 ReaW liaitFub Prototype city oflles~i xo0e ~~'~ Renter Praiotype Statclaed Fkt UNR COUNT 325 Units TYPE OF PRODUCT 5tadad fiats ZONING ~ NUMfER Of 5'IdWES y CONSTRUCTION TYPE Type V Wood frame OENSI'fY (DU'S/AcTK) 25.0 FLOOR AREA RAT]O (FAiq . 0.6 LAND AREA Ucras) 13.00 Aces UNfT5 iY BR COUNy tAae Redroota 73 Two Redman ~ 1~ Tirtie Iledroo~a 100 ~' 30 MarrRery tJnlb ~ Yedroom) 2 UNIT SIZE (Net Square ~ Oae Bedroom 750 11~o Bedroao 950 Ti,~se Badroam 1,050 Fnnr ~~ .1,250 ~'Ne Sq~ Feet 9d2 BLDG. ~ FEET Net LIvhKAna 319,150 r ~ o Tots! Net Bldg, Sgoar Feet 319,150 TYPE OF PARKING Parkin8 Strucume NO.OF PARKING SPACZS ~ 0 Carpal 0 Open 8] Park6-g Structure 650 TOTAL SPACES 731 Cky of'AiWn . A~kWUtY Lap awi lewd Fawic(~g Atwlyais ~ i t 3.3 Affordable Housing Cost Definitions Calculation of the affordability gap requires defining affordable housing expense for renters and owners. Table b shows the affordable housing cost definitions and income levels developed for this analysis based on discussions with City staff and consistent with California Redevelopment Law. Affordable housing expense for renters is defined to include rent plus utilities. For owners, affordable housing expense is defined to include mortgage principal and interest, property taxes and insurance, utilities and homeowners association (HOA) dues. Table 6 Affordable Housing Cost Definitions City of Tustin Income Level of Occ~ant_s Extremely low income (30% of AMI and below) Very low income (greater than 30% to SO% of AMI) Low income (greater than 50% to 80% of AMI) Tune of Housine Rental Ownership Nat Analyzed Not Analyzed 30% of 50% AMI 30% of b0% AMI AAoderate income 30% of 110% AMl (greater than 80% to 120% of AMI) AMl =Area Median Income 3.4 Occupancy Standards 30% of ~0% AMI 30% of 70% AMI 35% of 110% AMI Because income definitions for affordable housing assistance programs vary by household size, calculations of affordable rents and affordable owner housing costs require the definition of occupancy standards (the number of persons per unit} for each unit size. For the purposes of this analysis, affordable housing cost for renters and owners is calculated based on an occupancy standard of one person per bedroom plus one, consistent with California Redevelopment Law requirements. City of Yustin Pa a 12 Affordability Gap and Leveraged Financing Analysis B 3.5 Utilify Apowances Allowable affordable net rents are calculated by subtracting allowances for the utilities paid dimctiy by the tenants from the gross rent (or affordable housing cost). For owners, the affordable mortgage principal and interest payment is calculated by determining the affordable housing cost and deducting costs for property taxes, property insurance, utilities and HOA dues. We incorporated utility allowances effective October 1, 2006 provided by the County of Orange, Housing and Community Services Department, summarized in Table 7 below. The rents[ gap analysis assumes that the resident pays utilities (assumed to include basic electric and electric heating, cooking and water heating). it assumes the landlord for trash, water and sewer. For the owner gap analysis, we assume the homeowner pays utilities (basic electric and electric heating, cooking and water heating), plus water, trash and sewer. Actual utility allowances depend upon a variety of factors, including the utilities that are paid by the residents (e.g., water, gas, electricity, sewer, trash), the type of appliances and heating units incorporated in the units, and whether appliances and heating units r uire electricity or gas. e9 Affordability ,Gap and leveraged financing Analysis Page 13 Table 7 Current Monthly Utility Allowances County of Orange Housing and Community Services Renter Households Bedroom Size Ntonthly Utili Allowance 1 Bedroom X54 2 Bedroom $68 3 Bedroom $98 4 Bedroom $109 Owner Households Bedroom Size 7 Bedroom $93 2 Bedroom $110 3 Bedroom $ l 48 Source: County of Orange, Housing and Community Services, effective October 1, 2006. 3.6 Affordable Net Rents and Affordable Monthly Housing Cost Table 8 summarizes the affordable net rents used in the renter gap analysis. Table 9 summarizes the affordable housing costs used in the owner gap analyses. ~ includes electric utilities (heating, cooking, water heating and basic electric). z lndudes electrit utilities (heating, cooking, water heating and basic electric) and water, trash and sewer. City of Tustin Affordability Gap and i_everaged financing Analysis Page 74 Table 8 Affordable Net Rents Crty of Tustin 2008 Unit Size (No. of Bedrooms) Very low 5096 AMl Low 80% AMI Moderate ) 20% AMI 1 Bedroom $733 $890 $1 677 2 Bedroom $817 $994 $1 880 3 Bedroom $886 1 083 2066 4 Bedroom 953 1 166 $2 228 Table 9 Affordable Monthly Housing Cost ~ City of Tustin 2008 Unit Size (No. of Bedrooms) Very Low 50% AMI Low . 80% AMl Moderate 120°~6 AMI 1 Bedroom .787 $1 102 $2 020 2 Bedrooms $885 1 240 $2 272 3 Bedrooms 984 $1 377 $2 525 4 Bedrooms $1 062 1 478 $2 727 ~ US. Department of Housing and Urban Development published 2007 very low income limits, adJasted proportionally for 60°16 of percentage of AMI category. Gross rents are calculated assuming an occupancy standard of 1 person per bedroom plus one, consistent with California Redevelopment Law. Net rents are calculated assuming 3096 of gross income spent on rent and then deducting the utility allowances from Table 7. 2 Galifornta Department of Housing and Community Development published 2007 low and median income limits. Owner affordable housing costs are calculated assuming an occupancy standard of one person per bedroom plus one and 3096 of gross income spent on housing for low income households and 35% of gross income spent on housing for moderate income households. The Affordable Monthly Housing Cast includes the monthly mortgage payment, property taxes, property insurance, utilities and HOA dues. L~ty or i usnn Affordability Gap and Leveraged financing Analysis Page ~5 4.0 Development Costs Development costs include: land acquisition, hard costs, hard cost contingency, on- and off-site improvements, development fees, soft or indirect costs, financing costs, sales/marketing, and developer profit, overhead and general conditions. Hard costs include building and parking construction costs. Soft or indirect costs include architectural and engineering costs, property taxes and insurance. Developmeet costs for the renter and owner prototypes were estimated based on a review of land sales comparables, interviews with local Tustin area developers and DRA's extensive experience with housing development throughout Southern California. 4.1 Developer Interviews, Rental Housing Development The following developers and advisors were interviewed regarding rental housing development cysts: • Laura Archuleta, jamboree Housing • Jerry Trimble and Michael Wong,, Keyser Marston Associates 4.1.1 jamboree Hoaxing Jamboree Housing provided DRA with development cost summaries of 48 recent bids on 14 new housing projects in the Tustin area. Thirty-four of these bids relate to 10 garden- styIe, or stacked-flat walk-up rental projects with carports. The projects range from 20 to 162 units with unit densities between 38 and 71 units per acre. Every site is unique representing different development costs and jamboree's 14 projects' bids represent a wide range of costs. This range can be explained by a number of factors including the sites' unique conditions and the projects' timing, which can vary costs based on cost .fluctuations in the market !n addition, about half of Jamboree's bids assume payment of prevailing wages. Of Jamboree's non-prevailing wage bids, the hard costs range from $94 to $185 per square foot, with the average cost at Si 55 per square foot. The average hard cost of the prevailing wage bids is about 22 percent higher at $198 per square foot. Jamboree's remaining 14 bids relate to five podium style projects, or stacked flat apartments over parking with densities ranging from 40 to 64 units per acre. The hard costs, inclusive of parking construction, for the non-prevailing wage bids range from $171 Cty of Tustin Affordability Gap and Leveraged Financing Analysis Page 16 to $342 per square foot for this product, with the average cost at $239 per square foot. The prevailing wage bids average $Z70 per square foot hard construction costs. five of these bids include land cost estimates that range from $21 to $79 per square foot. The average land cost is $43 per square foot. 4.1.2 Keyser Marston Associates (KMA) KMA prepared a residual land value analysis for Tustin Legacy, including development cost estimates for several different development prototypes. KMA's cost estimates do not include land costs or site improvements. For an apartment project with 30 dwelling units to the acre, KMA estimates $165 per square foot in hard costs and soft costs equal to 18.5 percent of hard costs. 4.2 Developer Interviews, Owner Housing Development The following developers and advisors were interviewed regarding owner housing development costs: • Tom Sakai, Springbrook Advisors • Scott Young, Nevis Homes • Scott Newcomb, The Olson Company • Jerry Trimble and Michael Wong, Keyser Marston Associates • Justin Rimel, CIM Group • Tom Grable, William Lyon Homes • Ian Vickers, Sun Cal Companies • Steve Kabel, John Laing Homes Below we review the results of these interviews and detail ifie hard costs that the interviewees have seen in recent housing developments in the Tustin area, especially those developments that are similar to the five prototypes examined in this analysis. City of Tustin Affordability Gap and Leveraged Finantirtg Analysis Page ~ ~ 4.2.1 Springbrook Advisors Springbrook Advisors represents Lennar and Lyon Homes on development projects throughout Southern California. [n the Tustin area, Springbrook has experience with an owner townhouse project with 13.5 dwelling units per acre. On this project, hard costs were $90 per square foot. Springbrook also advised on a low density, mixed-use project with no parking that had hard costs of $110 per square foot. Another project, a high density owner development with 40 dwelling units per acre and podium parking, had hard costs of $225 per square foot, inclusive of parking and site improvements. 4.Z.2 Nevis Homes Nevis Homes has recently developed a 93-unit townhome project in the Tustin area. Land costs for this project were about $106 per square foot and hard costs were $136 per square foot. 4.2.3 The Olson Company The Olson Company provided D1tA with development cost estimates for the four owner prototypes, based on the company's developriment experience in Orange County. For Owner Prototype #1, Attached Townhomes, Olson estimates $78 p~ square foot in hard costs. For Owner Prototype #2, Stacked Flat Condominiums with podium parking, hard costs were estimated at $82 per square foot.: Olson also estimates $115 per square foot hare! costs and a $21,000 to S27,000 cost per parking space for Owner Prototype #3, High Density Condominiums. For Owner Prototype #4, Mixed Use Condominiums, C-Ison estimates $85 per square foot hard costs. 4.2.4 Keyser Marston Associates {KMA) KMA prepared a residual land value analysis for Tustin Legacy, including development cost estimates for several different development prototypes. KMA's cost estimates do not include land costs or site improvements. City of Tustin Page 1 S Affordability Gap and Leveraged Financing Analysis For a stacked flat product with 50 dwelling units to the acre, KMA estimates hard costs at $165 per square foot with additional costs of X30 per square foot for parking construction. For a townhouse product with 13 dwelling units to the acre, they estimate hard costs at $9b per square foot. A mixed use, Texas Wrap style project with 75 dwelling units to the acre is estimated to have X119 per square foot hard costs with additional X35 per square foot costs for parking construction. A1[ of KMA's prototypes assume soft costs to be equal to 18.5 percent of hard costs. 4.2.5 C1M Group The C1M Group has developed several mixed use projects in and around Tustin that have ground-floor retail below residential. The costs they have seen on these projects range from $130 to X140 per gross square foot for hard costs, with additional costs of X25,000 per at-grade structured parking space to ;35,000 per below-grade structured parking space. 4.2.6 William Lyon Homes i William Lyon Homes is currently developing a 102-unit mixed-income housing project on the Columbus Grove site of Tustin Legacy. This project consists of triplex buildings with two two-story townhomes and an upstairs carriage, or walk-up, unit. Of these units, 60 are market rate, 30 are affordable to low and moderate income households and 12 are transitional housing units. The hard costs estimated for this project total 576 per square foot, inclusive of iwo-car garages within the building envei~es. The Land cost for this project was $133,000 per unit or approximately X7950 per square foot. William Lyon Homes is also developing a 1~6-unit development of townhomes and flats, with a mix of market rate and affordable units. This project's hard costs are X98 per square foot and the land cost was ;72,6 per unit or S32 per square foot. 4.2.7 Sun Cal Companies Sun Cal Companies has experience with several housing products in the Tustin area. Currently, the company is developing two townhome projects in Tustin. These projects have hard costs ranging from X95 to $99 per square foot. Site improvement costs vary widely by site and so Sun Ca! could not provide an estimate of typical site improvement costs. Sun Cal Companies is also fami{iar with stacked flat and mixed use developments in the Tustin area. These projects have hard costs ranging from S~ to ~110~per square foot, with the higher costs associated with projects that have more than three stories. City of Tustin Affordability Gap and Leveraged Financing Analysts Page 19 According to Sun Cat's experience, high density housing developments built in the wrap design, with buildings surrounding at grade parking have hard costs around $200 per square foot while those with podium parking have hard costs around $225 per square foot. 4.2.8 )ohn Laing Homes john Laing Homes last developed housing in Tustin two years ago but has several current projects in Irvine. These include a row townhouse development with a density of 16.5 units per acre, and two townhouse and condominium flats combination projects at 17.5 and 16.3 units per acre. The row townhouse project has hard costs of $82 per square foot. The two townhouse and flat combination projects have hard costs of $84 and $87 per square foot. In Irvine, developers are most commonly purchasing partially-finished lots, according to Mr.~ Kobel. Therefore, the land costs for these projects would not be comparable to buying unfinished lots for development in Tustin. 4.3 Land Acquisition Costs Harris Realty Appraisal prepared an Appraisal Report for the City of Tustin, Community Facilities District No. 66-1, Tustin Legacy/Columbus Villages in May 2007. Of the 16 Tustin Legacy land sales analyzed in the appraisal, four parcels have comparable housing type and density to the Owner Prototype 1 examir~d in this study. The land prices and density of these parcels are shown in Table 10 below: Table 10 Tustin Legacy Comparable Land Prices City of Tustin 2008 Land Sale Data Land Cost, per square foot Lot Density, units per gross site acre No. 1 $53 / SF 16.6 units/acre No. 6 $46 /SF 1 b.3 units/acre No. 9 $47 /SF 16.2 units/acre No. 9A $33 /SF 16.2 units/acre Average $45 /SF 16.3 units/acre City of Tusrin ~ Page 20 Affordability Gap and Leveraged Financing Analysis Based on the above interviews and land cost comparables, DRA estimates per unit and per square foot land costs for the various housing product types represented by the housing prototypes. The land acquisition cost assumptions are shown in Table 11. Table 11 Per Unit Land Acquisition Cost Assumptions by Prototype City of Tustin • 2008 Prototype Land Cost Per Dwelling Land Cost Per Square Foot Unit Gross Site Area Owner # 1 Attached Townhome 5109,0 $45 Owner #2 Stacked Flat Condominiums $~$~~ $43 Owner #3 High Density Condominiums $52,000 $fi0 ,Owner #4 Mixed Use Condominiums $~,~ $60 Renter #1 Stacked Flat Apartments $70,0 $43 Source: Dataquick Information Systems; City of Tustin; DRA interviews of Tustin area developers. 4.4 Development Impart Fees Development impact fees for new residential development in the City of Tustin include Orange County Sanitation District fees, fast Orange County Water District fees, Transportation Corridor Agency fees, Tustin Unified School District fees, and building permit and plan check fees. Current fee estimates for each housing prototype were provided by the Tustin Community Redevelopment Agency and the Community Development Department Planning Division. Estimates of the development impact fees for the housing prototypes are detailed in Table 12 for the owner prototypes and Table 13 for the renter prototype. Fees for Owner Prototype #4, Mixed Use Condominiums, include only those that are applicable to the residential portion of the development. For those fees that are assessed project-wide, the fees are pro-rated based on the proportion of the total project that is dedicated to residential use. Ctty of Tustin Affordability Gap and Leveraged financing Analysis pagE ~~ Tabk 12 D~Owner }loosirs Pro6°rtppa CH!' e1'NsWs 2008 Pr00otype i4: ~YPe it: ~YPe i2: Prototype i3: Mixed llse .,..,.,...~ ee,,.l~.rt t'let }ilah Densttt+ Ground floor ~ ~~ Page 22 At6~bI1NY GaP and C ~t+K ~~ lorl of d6~rtlOQrrlertt Only. FQ ~ ifses9p Yu Y"7""+ (1) lrK:tudes feet assxixed tivlth rtid~~port ~ 66lL of SOfal. ~lalat~ons aaa~nx nxldential portion of project Sotace: Cih' O(T~stin Cornrrnmfty Developer M PlanMng Division,Tustln Community (Zedcielopment ~~% Ctry dTust~ piblk WodarJErg{MeerErB Departrnent. Dsv1d Raul Rosen & Assacia~. Table 13 Developm~tt Processing and impact Fee Assumptions t2erttal Hotning Prototype trriy of Ttutin 2tlOg Rental Proeotype ti: Stacked Flat Arurknwnte tJumbEr ~ ~~ 325 Units OrangeC,ounty Sanitation District $1.133,154 East C~tge County Water DMrict St 62,500 Tra Corr[dor 5613 925 ~ S 1,909 79 Design Revfaw (Tentative Map, study, preliminary & ~ ~ s14,oo0 Final Map 16,000 ~ ; ~ ~~ ~ #5,000 Predse Grading Plan 512,000 Permit & on S10,oo0 f fPW Servicrs f65 000 ~~ ~ ~ Des 53 Trs~ Map ~ Final Tract Map ~ Condftlorta! Use Permit 50 ~tviron ~I~ Repkxt Fee 51,333 Precise Grading Prank fees 59,060 Pt~lic Improvernents Peermit Fes Sg,p60 New Cortstructbn fee S1 S8,950 BulltBng Prrtnk Fee 560,677 Planning Pig Check Fee 58,495 Building Plan Check 541,474 Flaming trupekxior- fee 512,135 Building I:wanoe Fee S35 S i ~ ~~ P ~ sz,3n a1Pbrm De t fee 522,415 ~ Perrt~t ~ S72,188 Mechanical Plan Checc Fee 56,094 Plumbing Check Fee S 434 Clronge Coursty Fire Authority Irsspectfon Fee ~ $18,100 Tustin Unified School District Fees - Level 2 S2,157,454 Quimby ~ 53,956,882 Tiuiln T tem ~ rvvanertt P m Sp Subtotal S6 340 729 ~~ SS 1S AB Avers Par Lltsft f?5 i Source:. City ofTustirt Community laewefopment Department Punning Division, Tustin Community Redevelopment Agency, Cky of Tustin Public Works/Engineerfng Department, David Paul Rosen & Associates. City of Tustin Affordabilityt;apsnd treversged Financing Analysis Page 23 4.5 Hard Costs and Site Improvement Costs Hard costs are estimated based on the information obtained through developer interviews, as described above. Hard costs include residential building and parking construction costs, inclusive of contractor profit and overhead, expressed per net square foot of residential buildin area and do not include site improvement costs. Hard costs will vary with the level of finishes provided in the units. The prototypes modeled represent more basic, entry-level products rather than luxury units. Site improvement costs are estimated per square foot of site area. On- and off-site impProvement costs can also vary widely depending upon the extent of existing inftastructure and unique site conditions. For the affordability gap analysis, we model the prototypes assuming amarket-rate development. This analysis illustrates the economic gap between the cost of a market rate unit .and the amount households at various income levels can afford to pay for housing. Therefore, the hard cost assumptions for the gap analysis do not assume payment of prevailing wages. However, to the extent the gap is filled with many forms of public subsidy, then the payment of prevailing wages may be required. The difference in hard costs associated with prevailing wages is estimated at 25% fvr the rental. prototypes in the leveraged financing analysis in Section 7.0. The per square foot hard cost and per unit site improvement cost assumptions used in the gap analysis for each prototype are presented in Table 14. The hard costs are inclusive of parking construction. Ciry of Tustin Affordability Gap and Leveraged Financing Analysis Page 24 Exhibit B to Resolution No. 4095 INTRODUCTION PROPOSED AMENDMENTS California. In 1942, the war brought a new kind of growth to Tustin when the U.S. Navy built its Lighter-Than-Air Base on nearby beanfields. By the 1960s, rising land values and falling grove production induced agricultural land owners to sell their land for urban development. As a result of new development and annexations, the City's population jumped from 2,000 in 1960 to 21,000 in 1970, and has continued to grow at a steady pace to reach a 1~9-~ 2007 population of over 72,500~?8A9. Growth is expected to continue ~~~"" ''' ~ °~'~'~`~"~ T~~-~~-with the reuse of MCAS Tustin for residential, commercial, business, institutional, and recreational purposes. PREVIOUS PLANNING EFFORTS AND NEED FOR A REVISED PLAN The City of Tustin adopted its first General Plan in 1966. The Plan was prepared as a joint effort between the City of Tustin Planning Department and the County of Orange Advanced Planning Division. At that time, the Tustin General Plan area consisted of 20.5 square miles which included the unincorporated area of North Tustin. The plan anticipated an optimum or maximum population of 100,438 persons within the entire planning area. Major changes to State law led to preparation and revisions to Tustin's General Plan during the early 1970s. During this period of time, General Plan Elements were developed and/or amended incrementally. However, the real effectiveness of a City's General Plan is contingent upon the practical applicability of the Plan to changing priorities and conditions. Monitoring and reevaluating the validity of Plan policies and amending the Plan from time to time is essential.. A comprehensive update of the Plan should be undertaken every five years to ensure that the Plan accurately reflects City policies, conforms to any changes in State law, reflects current court decisions, and provides an integrated and internally consistent set of goals and policies designed to reflect the changing characteristics and growth of the community. To that end, the Tustin City Council authorized a program in February 1991 to undertake a comprehensive update of the General Plan which was adopted on February 7, 1994. A subsequent General Plan amendment was ~~~~ ~^~*' a adopted frt--1-9~9-~ on January 16 2001 to address changes associated with • the reuse of MCAS Tustin, which closed ' in July 1999. PURPOSE OF THE GENERAL PLAN CITY OF TUSTIN INTRODUCTION GENERAL PLAN S JUNE 17FnnDI„ ~~ ~~ 2008 TABLE I-1 RELATIONSHIP OF TUSTIN GENERAL PLAN ELEMENTS TO STATE-MANDATED ELEMENTS TUSTIN STATE-MANDATED GENERAL PLAN ELEMENTS GENERAL PLAN OPTIONAL ELEMENT Land Housing Circulation Noise Safety Conservation/ Use O n S ace Land Use Housing Circulation • Conservation/ • • OSpa Safety • Noise • Growth • Management~2~ (1) The Recreation component of this Element is optional. (2) While Growth Management is not aState-Mandated Element, it is mandated by Measure M for all jurisdictions in Orange County. Supporting Documentation Several supporting documents were produced during the Tustin General Plan preparation process, including the various Technical Reports and the General Plan Program Environmental Impact Report (Program EIR). These documents provide substantial background information for the General Plan. A joint Environmental Impact Report/Environmental Impact Statement (EIS/EIR) was prepared for the reuse of MCAS Tustin which also addressed the associated 2001 amendment of the Tustin General Plan. The preparation of each general plan element was preceded by the preparation of a technical report. The technical reports identify important background information, issues, and constraints (i.e, existing conditions, infrastructure constraints, funding considerations) which were used to guide the formulation of General Plan policy. CITY OF TUSTIN GENERAL PLAN INTRODUCTION JUNE 17n°T'°rron~o~r=RT~~, 20083 The General Plan Program EIR analyzeds the potential environmental impacts associated with development of the planning area guided by the policies and programs contained in the General Plan. Organization and How to Use the Plan Each of the seven General Plan elements follows a similar organization: ° Introduction ° Summary of Issues, Needs, Opportunities and Constraints ° Goals and Policies ° Element Implementation Program The Introduction describes the purpose and focus of the element, and also introduces other plans and programs outside of the General Plan which may be used to achieve specific General Plan goals and the relationship of that element to the other elements of the General Plan. The Goals and Policies section presents the City's long-term desires for the subject area of each element. The goals and policies are arranged by issue or subject, and a brief description of philosophy or basis behind these objectives precedes each group of goals and policies. Each element also includes a "plan," to implement General Plan policy. For example, the Land Use Element contains a "Land Use Plan" which indicates the types and intensities of land use permitted city-wide. The "Circulation Plan" in the Circulation Element includes a Master Circulation Plan showing streets and intersections to be improved and new infrastructure provided to meet the circulation needs of City residents and those employed in or visiting the City. Wherever possible, each element contains maps, diagrams, and tables to illustrate General Plan policy. A separate implementation section for each element identifies programs designed to achieve goals and policies in each General Plan element. This Implementation Section should be reviewed and updated periodically to help identify specific time frames, responsible parties, and specific measures to ensure that General Plan policies are implemented. The General Plan's organization allows those using the Plan to turn to the section that interests them and to quickly obtain a perspective on the City's policies on the subject. However, those using the Plan should realize that various Plan policies from one element to another are interrelated and should CITY OF TUSTIN INTRODUCTION GENERAL PLAN 8 JUNE 1~FFoRo' A°T', 2008 ° For the 2001 amendment of the General Plan associated with the reuse of MCAS Tustin, a public "Open House" was held to review the Draft Amendment, followed by public hearings held before the City's Planning Commission and City Council. GENERAL PLAN AMENDMENTS As amendments to the General Plan are considered and adopted by the City, a general description of each should be identified and added as an attachment to the Introduction to the Plan. Amendment of Table 1-2 as an attachment to the Introduction Chapter below will not require an amendment to the General Plan. Table I-2 below identifies each amendment and the General Plan elements affected. TABLE I-2 GENERAL PLAN AMENDMENTS Amendment Date of Affected Amendment Description Name Ado lion Elements 07-001 12-04-07 Land Use Resolution 07-94 13841 Red Hill Avenue 06-002 10/02/06 Land Use Resolution 06-118 14092 Brownin Avenue 02-002 9-19-OS Land Use Resolution OS-101 Library OS-0Ol 4-I8-OS Circulation Resolution OS-62 El Camino Real Reclass. 04-001 2-22-05 All, except Resolution 05-43 Columbus Grove Reorg. Housing and Growth M ement 03-001 12-01-03 Land Use Resolution 03-131 Newport Avenue 02-001 2-04-02 Housing Resolution 02-09 Housing Element Update CITY OF T'USTIN GENERAL PLAN INTRODUCTION 11 JUNE 17~°D1~~ °~ "~, 2008 LAND USE ELEMENT PROPOSED AMENDMENTS The Land Use Element Technical Memorandum, published prior to the preparation of the Land Use Element, is a supporting background document that contains quantitative information about the composition of land use in Tustin in 1991. This technical memorandum may be updated periodically to maintain a data base of current land use conditions in the planning area. RELATED PLANS AND PROGRAMS There are a number of state, regional, and county plans and programs which relate to land use in the City. These plans and programs include the Southern California Association of Governments (SCAG) Growth Management Plan, the South Coast Air Quality Management Plan (SCAQMP), the Orange County Growth Management Plan, and the Orange County Airport Environs Land Use Plan (AELUP). Each of these plans is briefly described below. SCAG Growth Management Pian The SCAG Growth Management Plan recommends ways to redirect the region's growth in order to minimize congestion and better protect the environment. While SCAG has no authority to mandate implementation of its Growth Management Plan, some of the Plan's principal goals (such as improved jobs/housing balance) have implications for the land use composition of the City and are being implemented through the South Coast Air Quality Management Plan (SCAQMP) under the implementation authority of the South Coast Air Quality Management District. South Coast Air Quality Management Plsn The South Coast AQMP mandates a variety of measures to reduce traffic congestion and improve air quality, . Air Quality is included as a sub- element to the Conservation/Open Space/Recreation Element of the Tustin General Plan to fulfill AQMP requirements. The City's Land Use Element organizes land uses in relation to the circulation system, and present policy promotes commercial and industrial land uses with convenient access to transportation. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 2 JUNE 17&°°or~'«-eov ~ ~pp83 Orange County Airport Environs Land Use Plan The Airport Land Use Commission (ALUC) for Orange County has responsibility under state law for formulating a comprehensive airport land use plan (ALUP) for the anticipated growth of each public use airport and its surrounding vicinity. General Plans for cities affected by an ALUP must be consistent with that plan. The purpose of the ALUP is to safeguard the general welfare of the inhabitants within the vicinity of airports and to ensure the continued operation of the airports. The Orange County ALUC has adopted the Airport Environs Land Use Plan (AELUP) governing #~ T""•~ "- "`'"c-~' T ,John Wayne Airport, A4eadew~lc-~4ii-7~e~t, AFRC Los Alamitos, and Fullerton Airport. ~ - .Three issues areas in the AELUP are addressed in the City's General Plan: noise, safety, and building height. The Noise and Safety Elements of the General Plan address noise and safety, while the Land Use Element addresses building height. i t RELATIONSHIP TO OTAER GENERAL PLAN ELEMENTS The Land Use Element is the key element of any General Plan because it has the broadest scope of the mandated elements required in a General Plan. The Element must be prepared with the full knowledge and consideration of the information/ policies contained in other General Plan Elements. Specifically, the Land Use Element relates to the Housing Element by defining the extent and density of future residential development in the City, The Land Use Element is also coordinated with the Open Space/Conservation/Recrention Element, in that open space resources are designated on the Land Use Plan Policy Map, and environmental factors are considered in the location of land use types. "The Land Use Element relates to the Safety and Noise Elements by integrating their land use recommendations pertaining to public safety and noise constraints into detailed policies which apply to specific geographic locations. The Circulation and Land Use Elements are interrelated in that specific land use decisions depend upon traffic routes and circulation patterns. Finally, the Land Use Element defines the amount of development permitted to occur, coupled with the Growth Management Element which establishes policies and procedures to ensure development occurs at a rate CTI'Y OF TUSTIN LAND USE ELEMENT GENERAL PLAN 4 JUNE 17~nor r~~nv o0 20083 SUMMARY OF ISSUES, NEEDS, OPPORTUNITIES AND CONSTRAINTS The Land Use Element establishes policy which is reflected in all the other General Plan elements. The following land use issues, needs, opportunities, and constraints have been identified in Tustin, and are addressed in the goals and policies which follow in the next section. BALANCED DEVELOPMENT IN TUSTIN ° There is a lack of commercial services in certain geographic areas, such as the Irvine Business Center, which warrants consideration of additional commercial designations. ° Land use patterns encourage Tustin residents to rely on the automobile to commute to work and shopping. ° The City has the opportunity to purchase surplus freeway parcels and develop them with uses which capitalize on their freeway accessibility. ° The MCAS Tustin Specific Plan/Reuse Plan will continue to wide future development on approximately 1,533 acres in the City of Tustin (Tustin Le~acy). ° The annexation of certain areas in North Tustin could establish more logical City boundaries. ° Hillside areas within the City's sphere of influence may be subject to slope instability. In the event of annexation, significant infrastructure deficiencies, where they exist, shall be mitigated to the extent feasible. COMPATIBLE AND COMPLEMENTARY DEVELOPMENT ° The intermixing of land uses in some areas without adequate buffering has resulted in land use incompatibilities, such as those related to CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN ( JUNEI7~~ROr~' rnova 200SS ° Through the development of office, hotel and business park uses in Pacific Center East, the City has substantial opportunities to expand its economic base. ° Opportunities exist for freeway-oriented development adjacent to SR-55 and the existing and planned northbound (eastside) ramps to SR-55. NORTH TUSTIN (UNINCORPORATED AREA) ° The unincorporated North Tustin area has a well developed low-density semi-rural character which .would expand the scope of housing availability and add a valuable housing diversity to the City. ° To preserve the low density semi-rural character, there is a need to ensure that any infilt development is compatible and complimentary to this existing community. FUTURE DEVELOPMENT CHARACTER OF FORMER MCAS TUSTIN TU( STIN r.>" rarv~ ° Given the size and location of the site, there is an opportunity for continued reuse and development to create a distinct area of unique character, to provide uses which meet broad community needs, and to accommodate a mix of uses responsive to market demand which also advance regional goals for jobsJhousing balance. ° There is an opportunity to continue to create immediate interim uses and reuse of many existing buildings and facilities at the site ape~--elesure-to facilitate conversion of the installation from its former military use to civilian use. ° There is a constraint on future aviation uses of land due to impacted airspace (i.e. John Wayne Airport) and a community desire to see only limited and interim aviation uses on the site. ° The opportunity exists to provide open space as visual and recreational amenities on the site. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 1 ~ UJ NE 17c cn ° r~~,~ o v a 20083 ° Planned land uses need to continue to be integrated with existing facilities within the site and with surrounding development in adjacent communities. ° Architectural design of the highest quality is desired for new development. ° Streetscape design, site planning techniques, and pedestrian and bicycle linkages should continue to reinforce relationships between uses on the site. ° Communities entries, landscape design along the boundaries of the site, signage and design vistas in and through the site are needed to continue to create a strong visual identify. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN I I JANE L7R£°O'~~, 20083 LAND USE ELEMENT GOALS AND POLICIES The goals and policies contained in the Land Use Element provide the framework for land use planning and decision-making in the City. They are an outgrowth of issues, needs, opportunities and constraints identified during preparation of the General Plan including concerns of Tustin residents and selection of the preferred growth alternative. They reflect the direction and image the City seeks for the future. The goals and policies of this element are intended to: ° Achieve balanced development; ° Ensure that compatible and complementary development occurs; ° Revitalize older commercial, industrial, and residential development; ° Improve city-wide urban design; ° Promote economic expansion and diversification; ° Coordinate development with the provision of adequate public facilities and services; ° Ensure that the development character of East Tustin is compatible with the surrounding man-made and natural environment; ° Strengthen the development character and mixture of uses in the Old Town/First Street area; and ° Promote an integrated business park character for the Pacific Center East area. ° Continue to l:implement a the reuse plan for MCAS Tustin which maximizes the appeal of the site as a mixed-use, master planned development. CITY OF TUSTIN LAND USE ELEIvtEIJT GENERAL PLAN 12 JUNE l7F°oR~d,^.,~~~, 20083 REVITALIZATION OF OLDER COMMERCIAL, INDUSTRIAL AND RESIDENTIAL USES AND PROPERTIES Revitalization of older residential and non-residential development through rehabilitation, preservation, and redevelopment of the existing stock of land, landscaping, buildings and public infrastructure is necessary to maintain the quality of an urban environment. GOAL S: Revitalize older commercial, industrial and residential uses and properties. Policy S.i: Encourage and continue the use of redevelopment activities, including the provision of incentives for private development, joint public-private partnerships, and public improvements, in the Town Center, a+id-South/Central and MCAS Tustin redevelopment project areas. Policy 5.2: Provide development incentives to facilitate the consolidation of individual parcels along the City's commercial corridors. Policy 5.3: Encourage the rehabilitation ofexisting commercial facades and signage. Policy 5.4: Continue to provide rehabilitation assistance in targeted residential neighborhoods to eliminate code violations and enable the upgrading of residential properties. Policy S.S: Encourage the restoration and rehabilitation of properties in Tustin eligible for inclusion on the National Register of Historic Places according to the rehabilitation guidelines and tax incentives of the National Trust for Historic Preservation. CTI'Y OF TUSTIN LAND USE ELEMENT GENERAL PLAN 17 JUNE U"cn~" ~', 20085 Policy 7.1: Broaden the City's tax base by attracting businesses which will contribute to the City's economic growth and employment opportunities while ensuring compatibility with other General Plan goals and policies. Policy 7.2: Capitalize on office and hotel markets through encouraging the development of these uses. Policy 7.3: Coordinate efforts between the City's Redevelopment Agency and Chamber of Commerce to actively market Tustin to prospective industries. Policy 7.4: Promote the maintenance, marketing and further development of the Tustin Market Place and Tustin Auto Center as regional retail destinations. Policy 7.5: (a) Focus retail development into consolidated, economically viable and attractive centers of adequate size and scale which offer a variety of retail goods and amenities; (b) reinforce quality highway and scenic development adjacent to the City's major transportation corridors; and (c) discourage typical strip commercial development. Policy 7.6: Promote marketing techniques for the continued development of Tustin Lel;acv (MCAS Tustin to civilian uses which will focus on the goals of the Specific Plan/Reuse Plan for the site, creating jobs and attracting viable businesses. DEVELOPMENT COORDINATED WITN PUBLIC FACILITIES AND SERVICES Adequate public facilities and services are essential components of urban development. The City must be able to expand its facilities and services to accommodate new development, as well as maintaining or improving facility and service levels for existing development. Providers of services not controlled by City should be encouraged to plan to accommodate new development. GOAL 8: Ensure that necessary public facilities and services should be available to accommodate development proposed on the Land Use Policy Map. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 20 lUNEl7croor~~nov~ 20083 East Tustin w+b has provided the majority of new residential development within the planning area. The planned community approach for development of the area ~ achieved a balance between urban use of land and maintenance of the natural environment. GOAL 9: Continue to lzprovide for a planned community in East Tustin compatible with the land use characteristics of the local area and sensitive to the natural environment. Policy 9.1: Ensure the compatibility of development in East Tustin adjacent to existing developed areas. Policy 9.2: Provide for supporting land uses in East Tustin, including neighborhood commercial centers, park and recreational facilities, and schools, to serve the residential community. Policy 9.3: Continue development phasing which provides incremental growth that is coordinated with the existing adjacent development, infrastructure and market opportunities. Policy 9.4: Enforce the East Tustin Hillside District Guidelines to preserve the natural terrain of Tustin's undeveloped hillsides. Policy 9.5: Require graded slopes to undergo permanent re-vegetation in a timely manner to minimize chance of erosion and siltation. Encourage the use of drought-tolerant and fire resistant plant materials. Policy 9.6: Retain natural landscape to the maximum extent possible, and incorporate planting in new development areas compatible with the character and quality of the natural surrounding environment. Policy 9.7: Encourage the clustering of development in hillside areas to minimize grading impacts and/or retain natural features and vegetation. Policy 9.8: Encourage clustering of residential uses to minimize impacts from noise, flooding, slope instability and other environmental hazards. Policy 9.9: Site buildings and align roadways to maximize public visual exposure to the north-south Peters Canyon ridgeline, the redwood/cedar grove, the knoll and major tree stands. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 22 JUNE 17r~~°r',m„~.°" ., 20083 Policy 11.5: Upgrade the edge conditions between industriaV business park uses and residential development through private development standards and onsite landscaping of industriaVbusiness park uses. NORTH TUSTIN (UNINCORPORATED AREA) The North Tustin unincorporated area has a low density, semi-rural. character. This desirable character is sensitive and vulnerable. GOAL 12: Maintain the semi-rural and low-density character of North Tustin. Policy 12.1: Ensure that any infill development in North Tustin is compatible and complimentary to the existing North Tustin community. Policy 12.2: Review and consider the possible development and adoption of pre•zoning designation for the North Tustin unincorporated area as part of any annexation proposal. Policy 12.3: Identify the North Tustin Specific Plan Area and entire North Tustin unincorporated area as a Special Management Area. FUTURE DEVELOPMENT CHARACTER OF TUSTIN LEGACY (FORMER MCAS Ti i.CTiNI GOAL 13: Continue to im lement Bevelep the a Specific Plan/Reuse Plan for MCAS Taslin which maiimizea the appeal of the sfte as a mixed use, master planned development and that includes the following qualities seeking to create results that are very special and worthy of the site's present and historical importance. Policy 13.1: Promote new uses and design which will peacefully coexist with surrounding residences and businesses in Tustin and adjacent cities, minimizing impacts on noise, air quality, traffic, and other environmental features wherever possible. CITY OF TUSTIN LAND USE ELEMEN'C GENERAL PLAN 25 JUNF.17$cnn~nnv~ 20083 Policy 13.2: Encourage a development pattern that offers a connectedness between buildings and uses, and has a strong sense of place through architectural style and creative landscape design. Policy 13.3: Encourage a mixture of uses that enable people living --or working on the site to choose to meet a significant part of their daily needs within the site. Policy 13.4: l~eearflge-a Implement the balanced reuse plan that responds to community needs but which will does not drain City resources. Wherever possible, tax revenues generated by uses on the site should offset the costs of public services. Policy 13.5: Promote high quality architecture, landscaping, signage, open space design, circulation patterns, and landscape patterns distinct from surrounding areas. Policy 13.6: Encourage the distinguished history of the Base to be preserved in one or more locations on site. Policy 13.7: Promote uses and institutions which will accommodate and attract 21st Century jobs and technologies. Policy 13.8: Encourage uses that benefit broader community's needs and which are balanced with development that is compatible with the Tustin community. Policy 13.9: Ensure that land and water are clean and safe to use and that other environmental considerations are taken into account during design. Policy 13.10: Promote a successful transition from military to civilian use that reasonably satisfies the public interests at local, countywide, regional, state and federal levels consistent with the need for any reuse plan to be fiscally sound and to foster economic development. Policy 13.11: Strategically place development in a manner responsive to requirements for hazardous material cleanup, circulation and infrastructure capacity, and market absorption. RELATED GOALS AND POLICIES CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 26 JUNE l7Fcoo~~nov~ 2008 TABLE LU-I LAND USE RELATED GOALS AND POLICIES BY ELEMENT RELATED OOALS AND POLICIES BY ELEMENT Land Use Issue Area Land Use Caaeervation/ Public Orowth H Circulation S Saf Noisc M ant Behmced t.9, 3.1 1.10, 5.2, 2.12, 8.11, 1.1, 2.5, 2.6, ~'e~P~t 5.6 14.12, 2.7, 2.8, 4.1 14.13 15.2 ComPatibld 1.11, 4.4, 1.3, 1.4, 7.3, 1.6, 3.3, 1.2, 1.9 C~P~en~Y 4.5, 5.1, 7.4, 8.1, 8.3, 3.9, 4.5, , 2.3, 2.4 t 6.2, 8.7, 8.9, 7.1, 7.2 , 2.3, 2.7, 6.12 8.10, 8.12, 8.13, 2.8 8.16, 14.7, 14.8, 14.9 17.3 18.3 Reviuliution of L2, 1.3, 12.1 9.1 Older 5.1, Dev t S.3 3.3 ~CiIY- 1.18 L2, 1.9, 1.2, 1.5, 5.3, 5.2, 6.5 2.6 1.14, 6.8 7.1, Desk 8.ti, 11.1, 11.2, 12.3 14.1 17.2 Ecaamic 2.5 Expaosiod Diveraificrtion Public Fxilitrea! $ 1.16, 6.9 2. iQ 3.6, 14.3, 3.2, 5.3 3.1, 3.2 e^'~ 14.6, 16.10, Coordination 18.4 Eart T°EtiD 7.6, 8.15, 8.17, Character 14.14, 14.15, 15.1 OW Tow~rat Street Character Pacific Curter Eart Character North TtuRin N•+~- Area Tustin Leeacv 16.8 (Fortner MCAS Tasting Character CITY OF NSTIN LAND USE ELEMENT GENERAL PLAN 2g IUNEI7L~onr,-,~a~,~~ovv 20083 LAND USE POLICY MAPS The Land Use Policy Maps reflect the application of General Plan goals and policies to the distribution and intensity of future land uses in the City of Tustin as well as areas which are within the City's Sphere of Influence. There are three Land Use Policy Maps which are a part of this Element. They are the Land Use Plan Policy Map and two Special Management Areas Policy Maps. LAND USE PLAN AND POLICY CONSIDERATIONS Figure LU-1 represents the Land Use Plan for the Tustin Planning Area. The plan is also reproduced at a larger scale and is available from the Tustin Community Development Department. While the Land Use Plan describes the general pattern of land uses at build-out, the Plan is not a zoning map and should be interpreted as a generalized guide to the type, intensity and relationship of land uses. Upon adoption of the General Plan, the City will then begin the process of modifying the Zoning Ordinance to ensure its consistency with the Land Use Plan. Land Use Designations Land Use designations indicate the type and nature of development that is allowed in a given location. While terms like "residential," "commercial" and "industrial" are generally understood, State General Plan law requires a clear and concise description of the land use categories shown on the Land Use Plan Policy Map. The Land Use Element provides for seven major land use groupings divided into 15 categories or designations as listed in Table LU-2. Four of these designations are established for residential development, ranging from low- density single family to high-density multiple family development. Three commercial designations, one industrial, and one public/ institutional, a~ are included. A planned community designation, which includes residential, commercial business, and public institutional components, is also provided. Additionally, a separate specific plan designation is provided for the plarm~ reuse of MCAS Tustin. Major transportation facilities are included in a single transportation category. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 29 JUNE t7"cnnrP~,~eT,==~nn~,~ 20083 TABLE LU-2 DEVELOPMENT INTENSITY/DENSITY STANDARDS MAJOR LAND USE MAXIMUM DWELIJNCi EFFECTIVE DNIELI-!NO LAND USE DESKiNAT10N AND SUMMARY DESCRIPTION GROUPINGS UI~UNTS PER UNIT'S PER ACRE OR ACRE OR MAXIMUM AVERAGE FLOOR AREA FLOOR AREA RATIO (a) RATIO (b) RESIDENTIAL 1-7 5.81 LOW DENSITY RESIDENTIAL - Detedred ample temNy dwsl{rps whkh allows up to 7 dwaRnp unNs per net acre with an avereps of 3.25 persons per dvwAlrp unN 8-15 15.00 MEDIUM DENSITY RESIDENTIAL- -tamRy dwsllinps fndudkp duPlazsa, corMomirrlums, towrdtontes, end apsrtrr»nts. Allows up to 15 dwsRnp ur~ts per net acre wiffi an everpe of 2.73 persons Par' dwaftkp unfL 15-25 21.53 HIGH DENSITY RESIDENTIAL - Mrdtl farnly dweNYgs Irwkrdinp dupleoaes, condorNniums, mMadronbs, and apartrrbnts. Alloars up to 25 dweNinp urdts per net acre wig an averepe of 2.15 persons per dweNinp uMt 1-10 8.31 MOBILE HOME PARK - Mo68e Homa Park development which allows up b 10 dwel8np units par acre with an averepe of 2.15 persons Per dweHMp unit. COMMERCIAL 0.5:1 0.4:1 COtrfi~AUNITY COMMERCIAL - Inckrdes refaY, professional otlica , and service-oriented business actlvitlea aan~rp a conxrsnity-wide area and populatlon. 1.0:1 0.5:1 OLD TOWN COMMERCIAL - Indudea rotail, protesslonel olfics, and servkx-oriented buahroas adivttlss seMnp OW Town and wnoundlrq areas. (May also inckids hl~r deru~y roaidenffsQ. 0.8:1 0.4:1 PROFESSIONAL - PrtmsNy airpla tenant or mulY-tenant o1~s that hxdude IspM end rtrsdicAl ssrvkxs, finandsl Inatldrtlons , corporate and povemrnent offices, and otlrer supportlnp uses. INDUSTRIAL. 0.8:1 0.5:1 INDUSTRIAL - A mbr of induefrfal and otAce uses such as whobaab busY»ssss, 8pht menu/acturNq, storage, dlsbffiu8on and solos, research and developrneM labaretories, and aervbs cartrrbrdsl buslnsp. PUBLIC 0.8:1 0.2:1 PUBUC/INSTITUTIONAL - PubBe and private uses ouch es acfrods, churches. City Hall. flood conbol channels, rosarvoka, ~ ~~n spaces aunt ~ ~ ~s usesusea e yo dearpns 0'~ t 0-1 t PUWNED (c) (c) PC RESIDENTIAL -includes low, msdhm, end hlpA density COMMUNITY reaident~l deaaibed above with roapec8va averages of 3.15, 2.45, arW 2.05 peroons per dweBlnp unlL 1.5:1 0.4:1 PC COMMERCIAL/BUSINESS - Mfx of oortrnerdal and office uses such as hotaUrrwtels, corrrr~erciel craters, research and de'roloPmenL and professonal oHloes. 0.8:1 0.2:1 PC PUBLICANSTITUTIONAL - Same as pubec/lnatltu~nal above. ---_~ -- CITY OF TUST'IId LAND USE ELEMENT GENERAL PLAN 31 JUNE~Fnnor rn o v~~ 200$3 The MCAS Tustin Specific Plan designation is intended to provide a framework for the continued conversion of a-the former military installation to civilian uses by providing a mechanism for flexibly accommodating a wide range of housing, employment, educational and community support uses and opportunities. To ensure compatibility of land uses permitted within this classification with the character of surrounding development and within the development area itself, the specific location of land use types, density and building intensity standards wil-l-i~e-is overned by a the MCAS Tustin Specific Plan, as authorized by the California Government Code. The Specific Plan designation, however, weuld allows for a number of the following uses. Low Density Residential uses at a maximum density of 7 dwelling units per acre will provide for development of low density attached and detached dwellings and accessory uses and buildings. A wide range of accommodations including single family units, patio homes, and multiple family dwellings such as condominiums, townhouses, cooperatives and community apartments maywedld be permitted. Uses such as publi~nstitutional facilities, child care facilities and others which are determined to be compatible with, and oriented towards the needs of these neighborhoods may also be allowed. The average population for this permitted land use is approximately 3.25 per dwelling unit which represents a population density range of 3 to 23 persons per acre. Medium Density Residential uses at a density range of & 15 dwelling units per acre will provide for development of medium density attached and detached dwellings and accessory uses and structures. A wide range of accommodations including single family units, patio homes, and multiple family dwellings such as condominiums, townhouses, cooperatives and community apartments weu~--ma~also be permitted. Uses such as public/institutional facilities, child care facilities and others which are determined to be compatible with, and oriented towards the needs of these neighborhoods may also be allowed. The average population for this permitted land use is approximately 2.73 persons per dwelling unit representing a population density range of 22 to 41 persons per acre. ° Medium-High Density Residential uses at a density range of 16-25 dwelling units per acre. The designation to provide for development of multiple family dwellings at a higher density may include rental CITY OF TUSTIN LAND USE ELEMENT GENERAL. PLAN 4'~ JUNE 17i~°~'rn~,,,~_,va 2008 apartments, condominiums, and townhouses. The average population for this permitted land use is approximately 2.12 persons per dwelling unit representing a population density range of 34 to 53 persons per acre. ° Transitional/Emergency Housing uses weulcf be are permitted to accommodate the adaptive use of e~isti~tg-military dormitory type structures for emergency housing, single occupancy housing, or congregate care uses. The maximum population density for this permitted land use would be 32 persons per acre. Commercial and Business uses which provide for the development of a variety of uses including industrial, research and development, professional office, retail, commercial recreation, and specialized employment and merchandising uses would may be permitted. The continuation of limited military uses, recognizing that these uses could be converted to commerciaUbusiness uses in the future, wealdmav-also be permitted. Other uses such as residential and public/institutional uses which support commercial and business uses weuk#-m_ a~also be permitted. The average standard intensity of development for commerciaUbusiness uses across the Specific Plan designation is a floor area ratio ofd-5.5;1. However, individual planning areas and specific types ofcommercial business uses maybe permitted to have a higher average floor area ratio. In addition, increased intensities may be permitted where development capacity is transferred from one area to another in accordance with the provisions of the Specific Plan, In addition, the floor area ratio may increase up to 2.0 on certain building sites as long as allotted square footage for a Planning Area is not exceeded, as defined in the Specific Plan. Residential density ranges of 15-25 dwelling units per acre may be permitted in certain commercial and business areas within the Specific Plan land use designation at a population density range of 34 to 53 persons per acre. Institutional/Recreational Uses which provide for a wide range of public and quasi-public uses distributed within the Specific Plan area would be permitted including educational facilities, public and private schools, colleges, neighborhood community and regional parks and support facilities, child care centers, and certain governmentaUsocial service facilities. Other uses (such as residential for purposes of housing persons related to an institutional use) which support institutional and recreational uses may be permitted. The CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 43 JUNE 17F~n~br/~°T-~, 20083 average standard intensity of development for all institutionaUrecreationalnses will be a floor ratio of .20:1 with higher average floor area ratios permitted for specific institutionaU recreational uses. Adequate right-of--way for major arterial roadway extensions w~i+ are also +~eed~e-he accommodated in the MCAS Tustin Specific Plan designation. Major arterial roadways serving the MCAS Specific Plan include Jamboree Road, Red Hill Avenue, Barranca Parkway, Tustin Ranch Road, Warner Avenue, and Edinger Avenue. Tustin Ranch Road will need to be extended to Von Karman to connect Edinger Avenue to Barranca Parkway. Warner Avenue will need to be connected between Red Hili Avenue and Jamboree Road. Transportation Designation Transportation Corridor: The Transportation Corridor designation applies to the land within the corridors for the Santa Ana Freeway (Interstate 5), the Costa Mesa Freeway (State Route 55), the Atchison, Topeka and Santa Fe railway, and Circulation Element roadways. Lands within these corridors are reserved for transportation purposes as the primary use. Secondary uses, such as open space linkages and landscaped areas, public and private parking areas, and other transportation-related activities and facilities are also allowed. IMPLICATIONS OF THE LAND USE PLAN The implementation of the Land Use Plan contained in this Element will permit additional development consistent with other General Plan goals and objectives. Table LU-3 summarizes the distribution of acreage within each land use designation in the City of Tustin and within the City's Sphere of Influence. Figure LU-3 delineates the boundaries of seven planning sub-areas within the Tustin Planning Area, while Table LU-4 provides a summary of land use distribution within each sub-area. Figure LU-3 delineates the boundaries of these sub-areas. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN ~ JUNE 17~G°o~-nova 20083 of the Plan is 129,655, and the projected population is 104,312 resulting in an overage of approximately 24 percent. SPECIAL MANAGEMENT AREAS Certain areas within the planning area have special characteristics or unique properties which require continuous City management to ensure that City policy is implemented and desired results are achieved. These "Special Management Areas" (SMAs) are regulated in different ways by the City and other public agencies having specific responsibilities for methods and timing of land development. For these reasons, two Special Management Area Policy Maps have been prepared to identify these areas consistent with Land Use Element goals and policies and related policies, contained in other General Plan elements which impact land use decisions. Special standards for development in Speciat Management Areas are applicable regardless of other land use descriptions on a property. Figures LU-4 and LU-5 delineate the boundaries of Special Managec1lent Areas in the Tustin planning area. Eaisting Specific Plans Specific plans are designed to implement General Plan goals and policies by desegregating land uses, densities, developments and design standards. Adopted specific plans within the planning area include: East Tustin, Pacific Center East, First Street, ar~d-North Tustin and MCAS Tustin Specific Plan (Tustin Legacv). East Tustin Specific Pian: The East Tustin Specific Plan area represents a portion of the Irvine Company property which was annexed to the City of Tustin incrementally in 1977, 1980, and 1981 and now forms a portion of the City's eastern boundary. The Plan encompasses 1,746 acres-ax~l-represents The entire Specific Plan area has been subdivided, with appre~h~utl~ most of the total acreage currently developed The overall land use concept of the Specific Plan provides for a planned community which is compatible with and complementary to the land use characteristics of the local area, and is also sensitive to environmental resources. A variety of uses are permitted in the Specific Plan including residential uses, commercial uses, and public uses. All development activities within this area of the City are subject to provisions of the East Tustin Specific Plan. Amore lengthy discussion of the plan can be found in the Land Use Technical Memorandum. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN q,(~ JUNE 17FEE~r r~-~ -o v ~ 20083 MCAS Tustin Specific Plan: Marine Corps Air Station (MCAS) Tustin closed in July 1999. Former MCAS Tustin is approximately 1,602 acres in size, and is located primarily within Tustin with the exception of 73 acres located within the City of Irvine. One privately owned parcel of approximately 4.1 acres is was immediately adjacent to the northeasterly boundary of the base and wIIE lie was included in the arry planning for reuse of the base. Following closure, the MCAS Tustin property is under the. jurisdictional authority of the cities of Tustin (approximately 1,533 acres) and Irvine (approximately 73 acres), and ivilF-be is subject to requirements of a Specific Plan/Reuse Plan en for the former military base and the 4.1 acre privately owned site. The overall goal of the Specific Plan-s#3eald-be is to translate community values into the most important qualities or characteristics of the future uses and overall design and seek to create results that are very special, worthy of the site's present and historical importance to the City of Tustin and the region. A variety of land uses are will-be permitted by the Plan, including residential, commerciaUbusiness, and institutionaV recreational activities. Through the federal disposition process, certain portions of the property were made w+l-lie available to federal, state, homeless, and local agencies through public benefit conveyances. Property was also-w~l-Ise-be offered to the Local Reuse Authority (e.g., the City of Tustin) in the pursuit of job creation and economic development. Property not transferred as a public benefit conveyance or transferred to the Local Reuse Authority was mill-Fie sold by the Department of the Navy. Future Specific Plan Study Areas To achieve General Plan goals and objectives, other portions of the planning area may be identified as Specific Plan study areas for specific plans. If specific plans are adopted in these areas, amendment to the Special Management Areas Policy Maps is not necessary. Redevelopment Project Areas State Redevelopment Law provides the mechanism whereby cities and counties, through the adoption of an ordinance, can establish a redevelopment agency. The Tustin Community Redevelopment Agency was created in 1976 and is made up of the City Council who are elected at large by popular vote. CFI'Y OF TUSTIN LAND USE ELEMEN'C GENERAL PLAN 54 JUNE l~"~o~ntin~rv , 20083 Redevelopment law enables the Agency to undertake community projects designed to improve certain areas within the City which have suffered economic decline, deterioration of improvements, or which have been unable to attract and promote new private investments to enhance the quality of life in the area. State law provides the Agency with broad governmental functions and authority to facilitate revitalization including but not limited to: issuance of bonds; the right to acquire, sell, rehabilitate, develop, administer or lease property; and the right to demolish buildings, clear land, and construct public improvements and infrastructure. State Law also provides various means of financing redevelopment implementation, the most useful of which is tax increment fmancing. Tustin has three five redevelopment project areas: Town Center, South/Central, and MCAS Tustin which are shown on Figure LU-5. All development within Redevelopment Project areas are subject to review of design and analysis of conformity with each redevelopment plan by the Redevelopment Agency prior to issuance of building permit . .~ North Tustin Area (oubide of North Tustin Specific Plan) The unincorporated portion of the planning area is comprised of the North Tustin area. These areas are included in the City's planning area because they relate to the long range planning efforts undertaken by the City. 'The North Tustin area lies within the City's Sphere of Influence (SOI) and portions or all of this area could potentially be annexed to Tustin within the next 20 years. Prior to annexing any unincorporated land, a zoning and General Plan land use analysis must be conducted to determine whether there is a General Plan or Zoning District in Tustin that is consistent with the Specific Plan land uses. In the event that there is no similar land use designation in Tustin, an appropriate General Plan and Zoning modification will be performed. Until such modifications can be made, an unclassified designation shail apply against such property and provisions of the Zoning Code which apply to the unclassified use category shall~apply. This process will ensure that only the land uses identified in the Specific Plan will be implemented upon annexation into the City of Tustin. The Community Profiles (Component III of the County of Orange Advance Planning Program) will be used to ensure the implementation of the Genera! CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN SS JUNE UFevoeov~ 20083 Plan for the unincorporated area of North Tustin not regulated by the North Tustin Specific Plan. Each community profile as these documents are named, consists of maps, statistical information and proposed land uses for unique geographic areas in the County. The Profiles will be used as follows: ° The Community Profile azea is one of the units of analysis which will be used to evaluate infrastructure capabilities as they apply to individual project approvals. ° Any agency with land use decision making authority shall evaluate and consider the Community Profiles and compendium of policies in making Planning Decisions. ° Prior to approval, project (development) proposals shall be found consistent with the Community Profiles by the decision making authority. Incases where inconsistencies exist, they shall be resolved and the Community Profile amended concurrently with processing of the discretionary approval. In the administration and implementation of the Community Profiles as amended, the Planning Agency has the responsibility to interpret and render findings on consistency of zoning and other land use projects in conformance with the requirements of the Government Code and the policies and guidelines expressed in the General Plan. Planning Area Not Within Sphere of Influence The two smaller areas between Myford and Jamboree Road south of the I-5 freeway and in the vicinity of former MCAS, Tustin adjacent to the City of Tustin's southeasterly boundary, represent areas that are presently included in the City of Irvine. The two incorporated areas lie either northwest or southwest of the alignment of Jamboree Road . The roadway es a traffic corridor that provides a strong potential boundary line between the cities of Tustin and Irvine. ~ , CITY OF TUSTIN LAND USE ELEMENT GENERALpLAN ~~ )UNE 17Fcnor~~n°v 7n 20083 for an azea. They provide a mechanism for development of a unified design plan for public and/or private property within the plan area. Responsible Agency/Department: Community Development Funding: City/Property Owners/Federal and State Grants Time Frame: Ongoing Related Land Use Element Policies: 1.4, 9.1-9.9, 10.1-10.9, 1 i.1-1.5 S. Special Study Areas: Study and prepare plans and General Plan Amendments which will indicate desirable circulation and infrastructure systems and specific land uses desired within Special Study areas identified on the Land Use Plan. Responsible Agency/Department: Community Development Funding Source: City General Fund/Property Owners Time Frame: Ongoing Related Land Use Element Policies: 9.1-9.9, 10.1-10.9, 11.1-11.5 REDEVELOPMENT 6. Redevelopment Project Areas: The Tustin Redevelopment Agency, shall continue to implement redevelopment actions within the Town Center, s~-South Central, and MCAS Tustin Redevelopment Project Areas to promote revitalization ofthese areas.. ~° ~'~+•~ ^~a ° a ~ + ~ "~~-The feasibility of creating additional project areas shall also be evaluated as needed to implement General Plan goals and policies. Responsible Agency/Department: City Manager, Community Development Funding: Redevelopment Agency tax increment CTTY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 61 JUNE l7cnnor,~nuv-r 20083 CIRCULATION ELEMENT PROPOSED AMENDMENTS This Element is designed to comply with the directive of state law and guidelines in order to achieve the objectives of promoting the efficient transport of goods and the safe, efficient movement of traffic within the City. The Circulation Element contains goals and policies designed to improve overall circulation in Tustin and to address circulation issues that concern the City. For highway transportation, the physical attributes involve a network of existing and future roadways defined according to designated roadway types, each with specific design standards. Other modes are defined by appropriate physical attributes (i.e., bicycle trails). The General Plan Traffic Analysis technical report prepared byAustin-Foust Associates, Inc., and the Circulation Technical Memorandum published prior to preparation of the Circulation Element provide background information and act as supporting documents for the Circulation Element. RELATED PLANS AND PROGRAMS There are a number of transportation plans that affect circulation planning for the City of Tustin. Several transportation plans have been prepared by the County of Orange, focusing on the development of a regional transportation system to handle the anticipated traffic loads expected from future development. A number of plans have also been prepared identifying the location of future routes for mass transit including light rail and conventional buses. Plans and programs related to the Circulation Element include the following: County of Orange Master Plan of Arterial Highways (MPAI~ -The MPAH forms part of the Orange County General Plan and designates the arterial system in the circulation element of the general plan. Defined according to specific arterial functional classifications, the MPAH serves to define the intended future road system for the County. Cities within the County are expected to achieve consistency with the MPAH in their individual general plan circulation elements. Eastern Transportation Corridor (ETC) -The ETC is one of the three transportation corridors hei+~gp}a~ed-fef developed by the Transportation CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 2 JUNE 17, 2008 Corridor Agencies in Orange County. They w~++ti~afl-y-k~e~~-have been constructed as toll facilities and then eventually will revert to free facilities when the facility costs are paid off. The west leg of the ETC serves the City of Tustin and runs east of and parallel to Jamboree Road from its intersection with the east leg in the City of Orange to Jamboree Road north of Edinger Avenue neaz the border between the City of Tustin and the City of Irvine. South Coast Air Basin and Air Quality Management Plan -The South Coast Air Quality Management District (AQMD) is a regulatory body responsible for improving air quality in the South Coast Air Basin. Of primary importance to circulation are the Transportation Control Measures (TCMs). The measures aze aimed at adjusting trigpatterns or modifyin~ vehicle use in wavs that reduce air pollutant emissian ' . The Air Quality Management District (AQMD) has adopted the -1-99-2007 Air Quality Management Plan (AQMP), an advisory document which identifies a number of air pollution reduction goals, measures and policies. Local jurisdictions have been mandated to reduce a fair share proportion ofvehicle pollution through the implementation of Transportation Control Measures (TCMs The Orange County League of Cities has provided each Orange County city its fair share trip reduction goal. The City of Tustin has been recently recognized as having met 122% of its allocated vehicle trip reduction goal. Therefore, it is currently assumed that the City will not need to adopt any additional Transportation Control Measures to comply with the 1997 AQMP. In addition, the City closely monitors air quality matters with the intent of complying with future revisions of the AQMP. Therefore, the mitigation measures and policies identified within this document or other measures acceptable to the AQMD will be implemented by the City who will have the discretion to select those transportation control measures that are economically feasible and will achieve compliance with the 1997 AQMP. County of Orange Congestion Management Plan -With the passage of the gas tax increase (Proposition t 11) in June of 1990, it became a requirement that urbanized areas such as Orange County adopt a Congestion Management Program (CMP). The goals of the CMP are to reduce traffic congestion and to provide a mechanism for coordinating land use development and transportation improvement decisions. For the most part, the Orange County CMP is a composite of local agencys' submittals in which each local jurisdiction develops the required data in accordance with the guidelines CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 3 JUNE 17, 2008 established by the Orange County Transportation Authority (OCTA). The OCTA compiles the data and submits the results to the Southern California Association of Governments (SCAG) for a finding of regional consistency. County of Orange Growth Management Plan - On November,1990 voters approved Measure M, the revised Traffic Improvement and Growth Management ordinance, which authorized the imposition of a one-half percent sales tax to fund needed transportation improvements. To be eligible to receive funds, local jurisdictions must satisfy a variety of requirements as set out in the Orange County Local Transportation Authority (LTA) Ordinance No. 2. Included in these requirements are the need to adopt a traffic circulation plan consistent with the MPAH, to adopt and adequately fund a local transportation fee program, to satisfy maintenance requirements, and to adopt a seven year capital improvement program that includes all transportation projects funded partially or fully by Measure M funds. The GMP requirements include certain provisions that are contained within the City's Growth Management Element. Measure M2 was approved by voters in November 2007 and extended the imposition oftheone-halfpercent sales tax to fund transportation improvements for an additional 30 nears County of Orange Master Plan of Scenic Highways -"The County's General Plan includes a scenic highway element which designates certain highways as scenic routes. With this designation specific guidelines are given for enhancing the scenic amenities of these facilities. County of Orange Master Plan of Countywide Bikeways -Also part of the Countywide General Plan, the Master Plan of Countywide Bikeways designates various classes of bike routes throughout the county. One of the primary considerations is to provide continuity throughout the county and to provide a consistency between countywide and local jurisdiction bikeway plans. Los Angeles/San Diego Corridor Commuter Rail Action. Plan -This is one component of the overall rail plan for the Southern California area, and seeks to provide increased commuter train service along the Los Angeles/San Diego corridor with designated stops at various locations between the two cities. One of the commuter rail stations for this system ivi-ll-be is located in the City of Tustin in the vicinity of Edinger Avenue near Jamboree Road. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 4 JUNE 17, 2008 The preparation of the Circulation Element is guided by and must conform with Section 65302(b) of the California Government Code. A major goal in the update of the Tustin General Plan is to achieve internal consistency throughout the various General Plan elements. The Circulation Element relates to the other elements of the general plan in a variety of ways. For instance, the Circulation Element portrays the roadway system needed to serve traffic generated by the uses permitted in the Land Use Element. It is also associated with the Noise Element and air quality since traffic forecasts are used, in conjunction with other data, to determine noise contours and air quality impacts of the General Plan land uses. The Circulation Element is also related to the Safety and Conservation/Open Space/Recreation Elements and Air Quality Subelement. 'The Safety Element addresses evacuation routes and minimum road widths to accommodate City residents in the event of a catastrophe, and the Conservation/Open Space/Recreation Element can identify standards for roadways, scenic highways and multi-use recreation trails. Because ofitstransportation-related issues, the Growth Management Element has a relationship with the Circulation Element. In November 1990 and 2007, Orange County voters approved Measure M and Measure M2, respectively, which increases sales tax revenues to fund needed transportation improvements throughout the County. To qualify to receive a portion of these revenues, each jurisdiction within the County must adopt a Growth Management Element. The City of Tustin adopted its Growth Management Element in February 1992. The Growth Management Element contains a policy that establishes a minimum Level of Service (LOS) to be maintained at intersections impacted by new development. It also contains a policy to promote TDM measures in the City and a Phasing Program to ensure coordination between new development and roadway capacities. These issues are addressed in a consistent fashion between the Circulation and Growth Management Elements. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 5 JUNE 17, 2008 ° The completion of the western leg of the Eastern Transportation Corridor w+l~-hc~ue-has had a significant effect on traffic circulation in Tustin. TRANSPORTATION SYSTEM/DEMAND MANAGEMENT ° Traffic Demand Management (TDM) strategies are required under both current air quality legislation and requirements of Proposition I11 legislation (Congestion Management Program). ° A comprehensive transportation system/demand management program will serve to improve traffic congestion and reduce parking demand TRANSIT, BICYCLE, PEDESTRIAN, AND EQUESTRIAN FACILITIES ° In order to maximize use of public transit, new development should be designed to accommodate bus stops. ° parttettlar~y- ~ `There is a need for "Pazk- N-Ride" facilities to enhance bus ridership for non-local trips. ° With portions of the Planning Area not currently served with bikeways (the southwest, west, east, and north), bicycles are forced to compete with automobiles along right-of--ways. ° Some of Tustin's sidewalks are not wheelchair accessible. ° The trail system within the City is incomplete and connections of local and regional trails are needed. PARKING ° Certain areas of Tustin have inadequate off-street pakking which in turn places a burden on public streets or other properties to correct this deficiency. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 7 JUNE 17, 2008 Policy 3.1: Support the completion of the Orange County Master Plan of Arterial Highways. Policy 3.2: Support capacity and noise mitigation improvements such as high-occupancy vehicle lanes, general purpose lanes, auxiliary lanes and noise barriers on the I-5 and SR-55 freeways. Policy 3.3: Monitor and coordinate with Caltrans freeway work as it affects Tustin's roadway and require modifications as necessary. Policy 3.4: Maintain a proactive and assertive role with appropriate agencies dealing with regional transportation issues affecting the City. Policy 3.5: Work with adjacent cities to ensure that the traffic impacts of development projects in these cities do not adversely impact the City of Tustin. Policy 3.6: Support the presence of a major airport consistent with it maintaining safe operation, avoiding noise impacts and ensuring compatibility with land uses in Tustin. Policy 3.7: Monitor the "corridor" (urban rail) design study process to ensure opportunities for future linkages in Tustin are examined and mass transit alternatives are explored. Policy 3.8: Deleted. Policy 3.9: Work with the Southern Califonva Regional Rail Authority, the Orange County Transportation Authority (OCTA and AT & SF) to reduce or eliminate current traffic interruptions due to rail crossings along arterials. TRANSPORTATION SYSTEM/DEMAND MANAGEMENT CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 12 JUNE 17, 2008 f k 7 Effective Circulation planning includes the application of Transportation System Management (TSM) and Transportation Demand Management (TDM) strategies. Together, these improve the efficiency of the transportation system and reduce vehicular demands, thereby reducing the impacts of future development. GOAL 4: Maximize the efficiency of the circulation system through the use of transportation system management and demand management strategies. Policy 4.1: Implement traffic signal coordination on arterial streets to the maximum extent practical, consistent with financial resources, integrate signal coordination efforts with those of adjacent jurisdictions, and implement other operational measures where possible to maximize the efficiency of the existing circulation system and to minimize delay and congestion. Policy 4.2: Implement intersection capacity improvements where feasible. Policy 4.3: Encourage the implementation of employer Transportation Demand Management (TDM) requirements, which were included in the Southern California Air Quality Management District's Regulation 2202 of the 1997 Air Quality Management Plan and as required by Proposition 111 as part of the Congestion Management Program (CMP) and participate in regional efforts to implement TDM requirements. Policy 4.4: Require that proposals for major new non-residential developments include submission of a TDM plan to the City, including monitoring and enforcement provisions. Policy 4.5: Encourage the development of additional regional public transportation services and support facilities including park-and-ride lots near the SR-55 and I-5 freeways. Policy 4.6: Encourage the promotion of ridesharing by-these--empleye~s B}stric~t-rdg~rlatieHS-through publicity and provision of information to the public. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 13 JUNE 17, 2008 CIRCULATION PLAN This section of the Circulation Element defines a circulation plan for the City that meets the requirements for safe and convenient movement of persons and goods at the development intensity anticipated in the Land Use Element. It includes a classification system that applies to all roadways that serve the City, and identifies specific improvements that will be required to implement this plan. A bikeway plan is delineated, and other components of the element such as public transit are discussed: ROADWAY FACILITY CLASSIFICATIONS The arterial highway system in Tustin is defined using a classification system which describes a hierarchy of facility types. The categories of roadways included in this classification system differentiate the size, function and capacity of the roadway links for each type of roadway. There are four basic categories in the hierarchy, ranging from "major" with the highest capacity to "iesalcollector" streets with the lowest capacity, and these can be summarized as follows: Major: A six- to eight-lane divided roadway with no on-street parking, with atypical right-of--way width of 120 to 144 feet and acurb-to-curb pavement width of 102 to 126 feet. Major arterials typically carry a significant volume of regional traffic. When the traffic volumes warrant a major arterial highway in areas where a full 120 to 144 feet ofright-of--way is not feasible due to existing structures or topography, a lesser right-of--way (no less than 100 feet) can be used to accommodate asix-lane facility. This is referred to as a "modified major" on the City Arterial Highway Plan. Primary: A four-lane divided roadway, with a typical right-of--way width of 100 feet and curb-to-curb pavement width of 84 feet. Regional traffic will typically be less than for a major arterial, but primary arterials form an important component of the regional transportation system. When the traffic volumes warrant a primary arterial highway in areas where a full 100 feet of right-of--way is not feasible due to existing structures or topography, a lesser right-of--way (no less than 80 feet) can be used to accommodate afour-lane CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 19 JUNE 17, 2008 Performance criteria have a policy component which establishes a desired level of service (LOS) and a technical component which specifies how traffic forecast data can be used to measure the achievement of the criteria. The performance criteria used for evaluating volumes and capacities on the City street system aze summarized in Table C-2 and include both average daily traffic (ADT) link volume and peak hour intersection volume criteria. The City of Tustin has established level of service LOS "D" as a threshold standard to monitor capacity needs for both ADT link volumes and peak hour volumes. Because of the significant amount of regional traffic on the designated Smart Streets (Irvine Boulevard, Edinger Avenue, and Jamboree Road south of Irvine Boulevard) level of service "E" is the recommended standard for these facilities, consistent with CMP guidelines. Table C-3 describes traffic flow quality for different levels of service. Such criteria would be applied consistently for evaluating land use and circulation system changes and are the basis for the General Plan circulation recommendations contained in this report. RELATIONSHIP TO LAND USE Future traffic volumes and highway capacity needs are directly related to future land use. Table C-4 compares existing and buiidout land use and the corresponding trip generation. Daily trip generation for the entire City in 1993 is-was around 589,533 vehicle trips per day. Approximately 40 percent of this i~-was attributed to residential uses, with the remaining 60 percent generated bynon-residential uses. For buiidout of the proposed General plan land uses, the comparative total ADT trip generation +s-was approximately 1,081,058 average daily trips, an increase of 83 percent. The Arterial Highway Plan presented in the next section is designed to carry the added trips that will occur with buiidout of the City's General Plan land uses and with the buiidout of the general plans of the surrounding cities and the county. Traffic increases from the latter involve significant amounts of through traffic on certain facilities, such as Irvine Boulevard and Red #-Hill Avenue. - ` CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 25 JUNE 17, 2008 Modified Right-of--Way As noted earlier in this chapter under the description of individual roadway classifications, major and primary arterial designations may not always imply the full right-of--way requirements as indicated in the standard cross-sections. Locations where such modified cross-sections are designated are as follows: ° Irvine Boulevard, Newport Avenue to Browning Avenue: Classijleation: Modified Major (six-lane major arterial with modified cross-section) ° Newport Avenue, I-5 to Walnut Avenue: ClasslJlcation: Modified Major (six-lane major arterial with modified cross-section) ° Walnut Avenue: In each case it has been assumed that the modified cross-section will not affect the ADT capacity (e.g., a modified major will have the same capacity as a major). Augmented Capacity As noted in the earlier discussion on this concept, the actual improvements for capacity augmentation will be determined during special design studies. The following are the roadway sections for which the augmented qualifier is proposed: Irvine Boulevard: This is a designated "Smart Street" on the County MPAH (previously referred to as "superstreet"). As such, capacity enhancements could range from maximization of intersection capacity under a basic six-lane facility, to a wider facility with potential grade separation at major intersections. As part of the countywide smart street program, the county will undertake the requisite design studies to identify future improvements along this facility. 'The two sections noted here as needing augmented capacity are from °D~-t~Prospect Avenue to Holt Avenue, and Newport Avenue to Tustin Ranch Road. Red_hHilt Avenue: 'The Circulation Element includes the southward extension of Newport Avenue to Valencia Avenue as asix-lane major arterial CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 32 JUNE 17, 2008 and Valencia Avenue is designated as a four-lane roadway from that connection point to Red hElill Avenue. At the point where Valencia Avenue meets Red hHill Avenue, there isessentially aconvergence of afour-lane and a six-lane facility. The Cities of Tustin and Irvine have negotiated an agreement concerning the mitigation of traffic impacts resulting from the City of Irvine's decision to increase the allowable intensity of development within the Irvine Business Complex (BC). Under the agreement, a Project Design Report will be prepared which recommends improvements necessary to City of Tustin standards for mitigation of traffic on Red Hill Avenue between Barranca Parkway, Dyer Road, and the I-5 freeway. Each City will pay its fair share of the cost of the necessary traffic improvements in accordance with the agreement. The-~ut~e closure of the MCAS, Tustin h~rovided opportunities for other means of capacity increases in this area (e.g., the a» extension of Valencia into the former Base and then south to Von Kerman). Roadway assumptions will be determined at the time roadway analysis is prepared. Newport Avenue: On the section of Newport Avenue north of I-5, future traffic volumes will exceed the ADT capacity of the current four-lane primary designation. Augmentation is recommended in the form of auxiliary lanes and additional turn lanes at intersections. Seventeenth Street, SR-55 to Yorba Street (north): This section of roadway near the SR-55 interchange will require some form of capacity augmentation, and the specific treatment should be determined in relation to the intersection capacity needs of the ramps and of Yorba Street. Valencia Avenue: With the southwazd extension of Newport Avenue to Valencia Avenue, this roadway will need to be designated as an augmented primary. Walnut Avenue, Tustin Ranch Road to Myford Road: Future volumes on this roadway indicate a need for augmentation, probably in the form of CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 33 JUNE 17, 2008 intersection treatment at Myford Road, as traffic from the industrial area in this vicinity is attracted to the €e~ttrre-Eastern Transportation Corridor interchange with Walnut Avenue. COUNTY SMART STREETS In 1984, the Orange County Transportation Commission (OCTC) adopted the Superstreets Program for Orange County in an effort to increase the traffic flow and vehicle capacity of major arterial highways. The program identified potential Superstreet candidates, various roadway improvements, financial costs and funding sources. Since that time, the Superstreets in conjunction with the County's State Highways, have been designated as the Congestion Management Program (CMP) Highwa System. ReeentJy~ tThe term "Superstreet" Ins-been-was changed to "Smart Street" i 1994. Within the City of Tustin, Edinger Avenue, Jamboree Road south of Irvine Boulevard, and Irvine Boulevard are included on the CMP Highway System. These roadways must maintain specified level of service (LOS) standards (LOS "E" or better) to be eligible for the funds generated by the passage of Proposition 111. Potential Smart Street Program improvements for Edinger Avenue (Moulton Parkway) as identified in the "Moulton Parkway Superstreet Study" (see Reference 5 in Chapter I), include signal coordination and modification, creation of bus turnouts, widening and restriping of intersections, restriction of on-street parking, and widening for major arterial highway standards. Irvine Boulevard is also a County Smart Street, but has not yet been the subject of a special study. It is reasonable to expect similar capacity enhancement proposals when such a study is carried out. Traffic forecasts indicate higher volumes than can be carried by a six-lane major arterial, and the augmented qualifier used here in the City's arterial highway plan implies capacity enhancement actions to achieve additional capacity. GRADE SEPARATED INTERSECTIONS Jamboree Road south of Irvine Boulevard is part of Orange County's Smart Street (Superstreet) system, which makes it a candidate for various types of capacity enhancements. For the section south of I-S, Jamboree Road joins the southerly termination of the ETC west leg, and capacity enhancements have been in the form of grade-separated intersections. The Warner Avenue CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 34 JUNE 17, 2008 intersection is already constructed as agrade-separated interchange, and a grade separated interchanges wasere constructed for Edinger Avenue-and Red Hill Avenue currently has an at-grade crossing at the AT&SF Railroad, and would achieve both safety and capacity benefits from future grade separation. Two other major arterials which will cross this railroad in the future, Newport Avenue and Tustin Ranch Road are planned to have grade separations. ADDITIONAL CROSSINGS OF THE I-5 FREEWAY The Arterial Highway Plan includes two crossings of the I-5 freeway which do not exist today. A discussion on each of these follows. Browning Avenue The existing Circulation Element includes a Browning Avenue overcrossing of the I-5 Freeway. Adequate development set-back has been established on the north site of the freeway to enable the overcrossing to connect with El Camino Real. Long-range traffic forecasts for the overcrossing show a future demand of around 10,000 vehicles per day. This is well within the capacity of a four- lane secondary roadway (its current Circulation Element designation). The traffic forecast data indicates that future trips using the overcrossing are largely local in nature, and the facility will provide local traffic with an alternative to Red_#Hill Avenue or Tustin Ranch Road as a means of crossing the freeway. Hence, it does not have any direct major role as a regional connection, and is primarily a local circulation facility. Without the overcrossing, additional traffic would be carried by Red_#Hill Avenue and Tustin Ranch Road and Walnut Avenue. The volume increases could cause the ADT link capacities on Red_#Hill Avenue to be exceeded. Of more concern would be peak hour operational characteristics, particularly at Red_#tHill Avenue, as additional turn movement traffic is generated at the Walnut Avenue and Nisson Road intersections. Special traffic operation strategies (including changes in lane configurations) could possibly be required at those locations and at the ramp intersections. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 35 JUNE 17, 2008 Browning Avenue is on the County MPAH, and hence, a detailed study would need to be undertaken to support any deletion of this facility. Since future volumes on both Red_#~Hill Avenue and Tustin Ranch Road wiJk continue to be influenced by lure-new land uses in-N~e event-e€ associated with the closure of Marine Corps Air Station, `fustin, any detailed studies for potential deletion of the Browning Avenue oven:TOSSing should be made only after the land uses and infrastructure on the-the former Base are established. Hence, at this time the Browning Avenue overcrossing on the Arterial Highway Plan should be retained. Myford Road An overcrossing of Myford Road was considered during the planning work carried out for the East Tustin Specific Plan. Although the overcrossing was never placed on the City's Circulation Element, right-of--way was reserved for its construction should the need for such a facility be established in the future. The sections of roadway north and south of the freeway are on the City's Arterial Highway Plan. While future forecasts indicate that the north-south traffic demand in this area can be adequately carried by Jamboree Road and the west leg of the Eastern Transportation Corridor (ETC), such a finding is dependent on the capacity provided by the ETC west leg operating as a free facility. The Myford Road overcrossing should continue to be a part of the City's Arterial Highway Plan until more development plans are evaluated in the vicinity. RELATIONSHIP TO COUNTY MPAH The City's Circulation Element recognizes that the County of Orange's Master Plan of Arterial Highways (MPAH) considers augmented capacity arterials as those regionally significant arterials on the Smart Street (formerly Super Street) Network with an enhanced traffic-carrying capacity. Where such augmented capacity has been found necessary on those streets within the City, then it has been included on the City's Circulation Element. The Circulation Element further recognizes that the opportunities for and the benefits of the "Augmented Capacity" concept may also be realized at certain locations on other arterial roadways as a capacity enhancement strategy. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 38 JUNE 17, 2~8 The highway component of the Circulation Element is consistent with the County MPAH, and as discussed previously, with the augmented qualifier in specific locations, is able to carry the projected traffic volumes. MCAS Tustin Amendment The MCAS Tustin Specific Plan/Reuse Plan identifies new Circulation Element roadways, such as the southerly extension of Tustin Ranch Road and the east west extension of Warner Avenue through the site, as well as the addition of a new loop roadway within the site. ""*'-~~ *~- c •r Dt .The addition of these roadways also requires an amendment to the County of Orange Master Plan of Arterial Highways (MPAH). PUBLIC TRANSIT An existing network of public bus routes providing access to employment centers, shopping and recreational areas is illustrated in Figure C-3. Service is provided by the Orange County Transportation Authority (OCTA). The established network includes Routes 60, 61, 65, 66, 71, 75 and 463 and Table C-6 summarizes the origin and destination of these routes. OCTA is also planning for future facilities and uld introduce "Park-N-Ride" facilities into the area, thereby enhancing ridership for non-local trips. A commuter rail station w~iil-he-is located within the City near the northwestern corner of Jamboree Road and Edinger Avenue near the SCRRA/OCTA Railway. As noted in the policies for Goa15, the City will continue to work with OCTA to provide additional service and encourage maximum use of public transportation. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 37 JUNE 17, 2008 PEDESTRIAN CIRCULATION AND PARATRANSTT As related to safety, guidelines are administered through the development review process for the construction of pedesMan facilities (i.e., sidewalks, paths, wheelchair ramps, etc.), based on City policy and federal/state mandates. Sidewalks are typically required as a condition of approval or permit issuance for all development. Wheelchair ramp curb improvements are also required to meet access provisions under the American Disabilities Act. Paratransit services, or transportation services for the mobility-impaired, are provided by OCTA's Dial-A-Ride for senior citizens and the disabled, and by special services for senior citizens participating in programs at the Senior Center. AIR Air travel is available from John Wayne Airport (JWA) in Orange County, approximately five miles to the south by surface roadway. As the closest of the regional airports, J WA would be the major facility for air travel for Tustin residents. Other regional airports are located approximately 20.50 miles to the north in Long Beach, Ontario and Los Angeles. The former United States Marine Corps helicopter station (MCAS Tustin) was located in the southern portion of the City. The MCAS Tustin Specific Plan has resulted in the elimination ofaviation uses, with the exception of heliports individually permitted or blimp operations as an interim use. RAIL Passenger rail service is provided from two Amtrak depots in neighboring cities; Irvine to the east and Santa Ana to the west. Commuter rail service is planned under the Los Angeles/San Diego (LOSSAN) Corridor Commuter Rail Action Plan. Commuter service within the corridor ~=requires stations at various locations. One of the stations is located in the City of Tustin in the vicinity of Edinger Avenue near Jamboree Road "Three Metrolink lines serve Orange County,_providin 4~4 daily trains and carrying more than 3.5 million riders. ~ , CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 44 JUNE 17, 2008 zxpeeted 1>y-1-995. The Orange County Transportation Authority is also evaluating the regional rail system through its Countywide Rail Study (CRS). This study is assessing congested traffic corridors and identifying rail and bus enhancements to the existing transportation system. While additional rail lines and improved service are being evaluated as part of this study,the Tustin station will play an active role in providing additional capacity for future commuter rail ridership ---------------- ----------------------------------------------------------~_'~- Forroetted: Fact odor: uglu ek,e TRUCKING Two routes have been previously identified for designated truck travel within the City of Tustin, including Irvine Boulevard along its entire length, and Red_krHill Avenue in the vicinity of Irvine Boulevard. In addition to local streets where truck travel is prohibited, weight restrictions for commercial trucking have been imposed on several facilities and these are summarized in the following table: Table C-13 WEIGHT-RESTRICTIONS ON COMMERCIAL TRUCKING Weight Street Location Limit "A" St First St to Irvine Blvd 3 Tons "B" St First St to Irvine Blvd 3 Tons "B" St Main St to Sixth St 2 Tons First St Newport Ave to Red #Hill Ave 3 Tons Garland Ave Woodland Dr to Red #Hill Ave 3 Tons Mountain Vrew Dr First St to Irvine Blvd 3 Tons Olwyn Dr Red #~Hill Ave to Woodland Dr 3 Tons Walnut Ave Red gHill Ave to Tustin Ranch Rd 3Tons Woodland Dr Irvine Blvd to O n Dr 3 Tons CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 45 JUNE 17, 2008 i ° . ~~ a,:...:~~ Through the Moulton Parkway Smart Street Project ati~,,.~~m~=Rte venue ar~d-study the feasibility, costs and environmental impacts of a depressed or elevated grade separation at Red Hill Avenue rail tracks, north of Edinger Avenue. ° Explore State, Federal and local funding sources to finance construction of alternative types of crossings. Responsible Agency/Department: Engineering/PublicWnrks Department, City Council Funding Source: State and Federal Grants Time Frame: On-going Related Circulation Element Policies: 1.3 and 3.4 3. Dedication/Improvements: The City shall: ° Establish setback lines for future right-of--way to protect ultimate roadway integrity. ° As part of development review, continue to require dedication of necessary right-of--way and improvement of streets at developer's expense pursuant to the Tustin City Code. Responsible Agency/Department: Engineering/PublicWnrks Department Funding Source: Property Developer Time Frame: On-going Related Circulation Element Policies: 1.1, 1.15, 1.16, 5.2 and 5.7 4. Monitoring System: The City shall design and implement a land use and trip generation monitoring system to be used in determining a projects long range impact on the City street system. Responsible Agency/Department: Community Development Department, Public Works Department CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 48 JUNE 17, 2008 Related Circulation Element Policies: 1.16, 3.4, 3.5, and 8.1 9. Rail Transportation Network: Regional Orange County rail travel does include an Urban Rail System and the Commuter Rail (Metrolink) System as an alternative travel mode. The City shall: ° Continue efforts to work with the OCTA and adjacent cities in identifying available funding sources and complete design and I construction of a aarkin~ structure at the Tustin statiork-eeo~ersiel ° Continue to monitor studies and participate in the "corridor" (url~n rail) meetings. Responsible Agency/Department: CommunityDevelopment/Public Works Department Funding Source: City General Fund, State and Federal Grants, Developer Contribution, Measure "M" Time Frame: On-going Related Circulation Element Policies: 1.6, 3.4, 3.7 and 3.8 TRANSPORTATION SYSTEM/DEMAND MANAGEMENT 10. Transportation System Demand Management Strategles: The Circulation Element requires maximizing the efficiency of the Circulation System through use of Transportation System Demand Management strategies. Implementing actions can be summarized as follows: ° Implement traffic signal coordination on arterial streets to the maximum extent practical. ° Encourage the implementation of Employer Transportation Demand Management (TDM) measures as required by the Southern California CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 51 JUNE 17, 2008 CONSERVATION/OPEN SPACE/RECREATION ELEMENT PROPOSED AMENDMENTS F The Open Space Element must contain goals and policies concerned with managing all open space areas, including undeveloped lands and outdoor recreation areas. Speafically, the Open Space Element must identify open space that is left undeveloped for public health and safety reasons and open space that is used for the preservation of natural resources, for the managed production of resources, and for outdoor recreation. The Recreation Element identfies planned park and recreation faalities designed to support the recreatlonal needs of Tustin's population. While air quality is not a mandatory General Plan element, the South Coast Air Quality Management Plan now contains speafic guidance fequifemeAts for air quality to be addressed in the General Plan. Air quality has been included as a sub-element to the Tustin Conservation/Open Space/Recreation Element to fulfill AQMP requirements. The purpose of the Air Quality Sub-element is to reduce current and projected emission levels through stationary source control measures; mobile source, transportation and land use control measures; and energy conservation measures. RELATED PLANS AND PROGRAMS There are a number of existing plans and programs which are directly applicable to the aims and objectives of this Element. These plans and programs were enacted through Federal, State, and local legislation and are administered by agenaes or speaal districts that have been delegated with powers to enforce Federal, State and local laws. Federal laws that are concerned with the protection of significant cultural and natural resources include the Endangered Species Act of 1973 (as amended in 1978), the Antiquities Act and the National Historic Preservation Act of 1966 and the National Environmental Policy Ad (NEPA). California Environmental Quality Act Law and Guidelines CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT Z UNE 17,lAAlyARY-1g, 2ppgk The Califomia Environmental Quality Act (CE(lA) was adopted by the State legislature in response to a public mandate that called for a thorough environmental analysis of those projects that might adversely affect the environment. The provisions of the law, review procedure, and any subsequent analysis are described in the CEQA Law and Guidelines as amended in-~-892008 and 2007, respectively. CEQA will continue to be instrumental in ensuring that the impacts of all potentially significant projects are assessed. Air Quality Management Plan In ~-892007, the South Coast Air Gluality Management District and the Southern Califomia Association of Governments (SCAG) adopted an updated Air Quality Management Plan designed to achieve the National Ambient Air Quality Standards. Since 1989 the South Coast Air Quality Management District has witnessed significant regulatory achievements in reduang emissions from mobile and stationary sources and consumer products. California Fish and Game Regulations The Califomia Fish and Game Code was adopted by the State legislature to protect the fish and wildlife resources of the State. Special permits are required for any lake or stream alterations, dredging or other activities that may affect fish and game habitat. Other Plans Plans and programs that contribute to the planning related to con- servation, open space, and recreation include the following documents: County of Orange Master Plan of Local Parks: The County's Master Parks Plan provides goals, objectives, and policies and provides implementation programs for a comprehensive county-wide park plan. In conjunction with the County's Local Park Code, specific criteria are intended to provide an adequate supply of usable county CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 3 JUNE 17dAN41A~Y 10, 2008 SUMMARY OF ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS This section describes the issues, needs, opportunities, and constraints of the Tustin Planning Area relative to open space, conservation, and recreation. AIR QUALITY ° State and federal air quality standards, especially ozone standards, are often exceeded. ° Extensive use of motorized transportation modes and large particulate generating uses in the area contribute to poor air quality. ° Topography, climate, and emissions combine to create an air quality environment which must be managed for the public health, safety, and welfare. ° New regulations must be implemented to fulfill Air Quality Management Plan requirements. These regulations include trip reduction, jobs/housing balance, point sourr~ reduction, efficient land use, and alternate forms of transportation and energy. NATURAL RESOURCES AND UNIQUE NATURAL FEATURES Water ° Protection of domestic groundwater supply. ° Continued drought conditions highlight need for continuing conservation efforts. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 7 J NE 17JAAIkiA#~X 30, 2008 Riparian Habitat ° Limited riparian habitat exists in the Planning Area. ° The northern half of the Peters Canyon retarding basin supports an assemblage of riparian vegetation which, when fully restored, would provide many plant and animal species with suitable habitat. ° Jurisdictional wetlands are~rese+~t-have been identified on the former MCAS Tustin site. Eucalyptus, Cedar, and Redwood Trees ° The Eucalyptus groves and remaining Eucalyptus windrows in East Tustin lend a nostalgic rural and agricultural character to the local landscape. Many of these remaining Eucalyptus trees are dying-e~-in need of substantial care. ° There is a Cedar/Redwood grove on a prepesed-passive community park site in the northeasteriy portion of East Tustin that is unique and visually prominent. Special AAanagement Areas ° Peters Canyon retarding basin and wash offers opportunity for preservation and conservation of open space and natural amenities. ° Hillside areas in East Tustin and the northeasterty portion of Planning Area are an important identifying feature. There is significant potential to enhance City's living environment and overall image through creative and sensitive treatment of major topographic features. ° The Peters Canyon ridgeline is a prominent visual feature in East Tustin which should be protected. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 8 JUNE 17dANr=1A~Y-~6, 20081 ° Natural hillside features and open space should be used to protect the public health and safety in areas of potential flooding, severe slope, poor soil conditions, or geologic hazards. Managed Production of Resources ° Limited amounts of agricultural land remain in Tustin. SOLID WASTE RECYCLING ° Southern California continues to generate increasing amounts of solid waste while landfill space is limited. i ° The California Integrated Waste Management Board required the Citv to divert at least 50% of its waste from landftlls. ° Implementation of recycling and other solid waste reduction programs will require cooperation of local residents and businesses and a strong effort by City government. ENERGY RESOURCE CONSERVATION ° Limited conventional energy resources require conservation and development and use of alternative energy resources. HISTORIC, CULTURAL, ARCHAEOLOGIC, AND PALEONTOLOGIC RESOURCES ° There is a wide range of historically significant resources in Tustin. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 9 JUNE 17JAAl~1F 1~, 200Bi ° The two Lighter-Than-Air-Hangars at the former Marine Corps Air Station are included on the National Register of Historic Places. ° Tustin's location and geology make it an important archaeological and paleontological resource area. ° Methods of protecting archaeological and paleontological resources while permitting development must be addressed. PARKS AND OPEN SPACE SYSTEM ° A comprehensive integrated plan for parks, open space, and scenic highways does not exist, and so, a complementary system of such resources is difficult to create or maintain. ° Without the support of school facilities, Tustin faces a shortage of recreational facilities, espeaally in the southern and western portions of the community where densities are higher. ° In 2001. Tthe City styF-hads 82.4 acres of existing local and community parks, but neededs an additional 106 acres to serve its present-population based on a standard of three acres per 1,000 persons. The sphere of influence contains 10 acres of parkland ~ leaving it 668 acres short of meeting the needs of both existing and projected populations. ° Regional recreation faalities will be located in Tustin, requiring coordination with adjacent jurisdictions. ° Limited recreation space often preGudes programs for all segments of population. Increasing population will aggravate this problem. ° Given the limited recreation space, careful planning is needed to provide a balance of diverse facility needs. ° The community's facilities are limited and disrepair would create a severe deflaency in facilities. ° The City has lost two parks - Utt Parkette and North Tustin/Santa Clara Parkette -due to freeway widening improvements. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 10 JUNE 17JAMdA#Y-~&, 20081 CONSERVATION, OPEN SPACE, AND RECREATION ELEMENT GOALS AND POLICIES A substantial portion of the City's natural open space and biological habitat has been replaced with urban development. .Although much of their area hasis beeni~ developed, the conservation of open space and natural landforms can help to preserve the character of the area. The future development of the area will respect these natural features of the community. The goals and supporting policies included in this Element address specific issues and opportunities to conserve the City's remaining sensitive lands and to enhance the open space within the City. AIR QUALITY The quality of air in the South Coast air basin must be improved to meet state and federal mandates. Cooperation on a regional basis is necessary to achieve improvement of air quality. GOAL 1: Reduce air pollution through proper land uae, tranaportatton and energy ua® planning. Policy 1.1: Cooperate with the South Coast Air Quality Management District and the Southern California Association of Governments in their effort to implement provisions of the region's Air Duality Management Plan, as amended. Policy 1.2: Design safe and efficient vehicular axess to commerclal land uses from arterial streets to insure efficient vehicular ingress and egress. Policy 1.3: Locate multiple family developments close to commercial areas to encourage pedestrian rather than vehicular travel. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 12 JUNE 17dANi~AFtX 16, 200&1- GOAL 7: Conserve and protect natural plant and animal communitlea. Policy 7.1: Inventory unique or significant tree stands, with particular attention given to the cedar stand, eucalyptus groves, and eucalyptus windrows in East Tustin. Develop standards to retain or incorporate the eucalyptus windrows and groves into development plans where feasibl®. The redwood/sequoia stand w}Il-ha-has been retained within a park site and integrated into any-fot~ethe park design. Policy 7.2: Conserve important plant communities and wildlife habitats, such as riparian areas, wildlife movement corridors, wetlands, and significant tree stands through the practice of creative site planning, revegetation, and open space easements/dedications. Policy 7.3: Require development proposals in areas expected to contain important plant and animal communities to inGude biological assessments. Policy 7.4: Require new development to revegetate graded areas. Policy 7.5: Where feasible and consistent with flood control requirements, the treatment of Peters Canyon Wash should retain a natural appearance by minimising concrete channelization, retaining or replanting indigenous vegetation and/or retaining open space areas along the drainage course. Policy 7.6: Incorporate planting in new development areas in East Tustin to be compatible with the character and quality of the natural surrounding environment. GOAL 8: Conserve and protect signiflcant topographical features, important watershed areas, resources, and sobs. Policy 8.1: Develop standards to preserve the unique variety of land forms indigenous in hillside areas, and ensure that the development process is structured to ensure that grading and siting practice reflects the natural topography. CITY OF TUSTIN CONSERVATIOWOPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 16 JUNE 17JAAlUAFtY.98, 2008 GOAL. 10: Reduce solid waste produced within City. Policy 10.1: Implement polities of the adopted Tustin Source Reduction and Recycling Element and Household Hazardous Waste Management Element. Policy 10.2: . Ensure that the City diverts from landfills a maximum of 50% of the solid waste generated in the City as required by the California Integrated Waste Management Board. Policy 10.3: Maximize public awareness of ail source reduction programs, including opportunities for community feedback and school education. Policy 10.4: Maximize integration of all source reduction programs. Policy 10.5: Assist in the development of local, regional, and statewide markets for materials collected and processed through the source reduction programs. ENERGY RESOURCE CONSERVATION Energy resources are highly valued and their conservation is important for sustaining the community and meeting future demands. GOAL 11: Conserve energy resources through use of available energy technology and conservation practfcea. Policy 11.1: Encourage the use of new technologies and innovative building design, site design and orientation techniques which minimize energy use by taking advantage of suNshade patterns, prevailing winds, landscaping, and building materials. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 19 JUNE 17dANUARI~~-a~, 2008 specific parks, improvement programs, and special community events (e.g., Tiller Days, July 4th Celebration, etc.). Policy 16.8: sewise~ Intentionally omitted Policy 16.9: Cooperate with and provide active support for non-profit and other community organizations in the City which provide recreational programs which supplement or coordinate with City programs. Policy 16.10: Work cooperatively with the Tustin Unified School District to provide after-school and other non-school hour activity programs. Policy 16.11: Explore additional recreation programs in those areas of the City where recreational deficiendes exist. Policy 16.12: Promote and support volunteerism and involvement in the community to enhance recreation programs and services. GOAL 17: Operate and maintain existing and future parka and recreation facilities so they are safe, clean, and attractive to the public; and preserve, protect, and enhance both existing and potential natural recreation areas to ensure that long-term public investments and values are not unreaaonabty preempted, compromised, or prevented by neglect or short-term considerations. Policy 17.1: Estimate and evaluate the cost of operating and maintaining parks and recreation fadliti~es as an integral part of the park design and development process so that Tustin does not accept responsibility for parks and recreation areas which it may not be able to adequately maintain over the long run. Policy 17.2: Require park designs (including landscape treatments, buildings, imgation, etc.) that are durable, reasonably standardized, and economical to maintain. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 24 JUNE 17JAAllIARX.-a~, 20084 Management District and the Southern California Association of Governments to implement the goals of this element and the Air Quality Management Plan (AQMP). ~~ Transportation Control Measures: Measures related to transportation have been identified in the AQMP that need to be addressed by local government level (i.e. City of Tustin) in partnership with SCAQMD and SCAG. These measures are generally aimed at redudng the total number of vehicle trips, improving traffic flow, and utilizing clean fuels in motor vehicles. - -- Formatted: FoM odor. L~ 8~e _ --------------------------------------------------------------------------------------------------- The goal of the Transportation Control Measures (TCMs) is to influence transportation choices of mode, 6me of day, or whether to travel. The strategies also address fuel selection and applications of technology to motivate a shift from petroleum-based fuels. These control measures include the following advanced transportation technology measures: (a) Telecommunications; (b) Smart shuttle transit; (c) Zero emissions vehiclesrnfrastructure; (d) Alternative fuel vehidesfinfrastrud:ure; (e).Intelligent vehicle_highway_sy_stems___ i r __-- Forrnatimd: Fant: (Default) Slxutl - ~~ 12u1e 2202 - On-Road Motor Vehicle Mitigatton_Optlons:_rhe ___--- ~~_ r~r: c~ ~- 1997 AQMP else-includeds Rule 2202_providing employers with _--_--- Formatted: Forrt: coefauk> strun a menu of options to reduce mobile source emissions generated from employee comments. As of June, 1998, Rule 2202 ___ applied to any employer who employs 250 or more employees __---- ~ r-«u: c~ sr~ on a full to part-time basis of a worksite for a consecutive slx- month period. These employers must establish an emission reduction target (ERT) with SCAQMD using one or more of the following options: (a) Mobile source emissions reduction credits; (b) Emission reduction credits from stationary sources; (c) air quality investment program; and/or (d) other emission reduction strategies, such as peak commute trip reduction, alternative fuel vehicles or vehicle miles traveled reduction. _, Formatted: FoM: (Defauk) Shrub, Farrt color: --- -- - ---------~'- L-Ght ~e CITY OF TUSTIN CONSERVATtON/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT ( 29 UJ NE 17dA1~lUAFtY-1~, 2008} TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Section 8 Rental Rental assistance program • Rental Assistance Assistance which provides a subsidy to very low-income families, individuals, seniors and the disabled. Participants pay 30 percent of their adjusted income toward rent. The Orange County Housing Authority pays the balance of rent to property owners, and administers the vroEram. Section 202 Grants to non-profit • Acquisition. developers of supportive Rehabilitation housing for the elderly New Construction • Rental Assistance • Su ort Services Section 811 Grants to non-profit Acquisition developers of supportive Rehabilitation housing for person with • New Construction disabilities, including • Rental Assistance group homes, independent living facilities and intermediate care facilities HOPE Homeownership assistance • Homeownership of awazded on a competitive Multi-family units basis requires non-federal (HOPE 2) matching funds. • Homeownership of Single-family homes HOPE 3 McKinney Aft Grants to develop Transitional Housing Supportive Housing supportive housing and . Permanent Housing Por Program (SHP) services and services that Homeless With will enable homeless Disabilities people to live as • Supportive Services, independently as possible. such as child care, employment assistance and outpatient services for the homeless Section 8 Moderate Funds to rehabilitate • Rehabilitation Rehabilitation single-room units within a • New Construction Single Room building of up to 1W units. Occupancy Program The provision of (SRO-Section 8) supportive services is CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 81 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Small Projects Mortgage Insurance Acquisition Processing (SPP)• program for small multi- Rehabilitation (221 (d)(4) and 223 (f) family new construction or . New Construction substantial rehabilitation {221)(d)(4) and small multi- famil rehabilitation Section 108 Loan Provides loan guarantee to • Acquisition CDBG entitlement Rehabilitation jurisdictions for pursuing . Home Buyer Assistance large capital improvement . Homeless Assistance or other projects. The • Public Improvement jurisdiction must pledge its . Economic Development future CDBG allocations . Relocation, clearance, for loan repayment. site improvements Maximum loan amount can be up to five times the "entitlement jurisdiction's most recent approved annual allocation. Maximum loan term is 20 twee .ears. HUD Mortgage Mortgage Insurance for • Acquisition Insurance for purchase or refinance of • New Construction Purchased Refinance existing multifamily • Operation projects. Administration HUD Rehabilitation Provides mortgage Energy Conservation Loans for insurance for • Rehabilitation Multifamily Projects improvements, repairs, or additions to multi-family ro'ects. Disposition of HUD To dispose of multi-family • Acquisition Mulitfamily housing owned or financed • New Construction Housing by HUD that is delinquent, • Operation under workout or Administration foreclosed with Preservation mechanisms designed to preserve the low- and moderate-income housing stock. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 82 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN HUD Single-Family Sells HUD-acquired single- • Acquisition Property Disposition family properties to Rehabilitation Program expand homeownership opportunities and strengthen neighborhoods. Up to 10% of HUD-help single-family properties are made available for lease for use in homeless programs. Rent is $1 r ear. Homeless Providers Provides grants to develop Acquisition Grant and Per Diem programs that help • Operation Program veterans recrover from Administration homelessness, including • Single Room establishing transitional Occupancy Hotels housing and supportive Social Services services for homeless . Transitional Housing Pridate Resources • Community Home • Homebuyer Assistance Buyer Program -Fixed rate Mo a es • Community Home • Homebuyer Improvement Assistance/Rehab Mortgage Program - Federal National Mortgages for both Mortgage purchase and Association (Fannie.,.. rehabilitation of a Mae) home • Fannie Neighbor - • Expand Home Under served low- Ownership For income minorities are Minorities eligible for low down- payment mortgages for the purchase of single family homes CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 83 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Federal Home Loan Purchases/secures high • Homebuyer Assistance Mortgage loan to value ratio single- Acquisition Corporation family home purchase loan Rehabilitation (Freddie Mac) to assist low income families Rehabilitation Mortgages'..,.. Program insured mortgages for property acquisition and rehabilitation California Assistance to low income New Construction Community minority neighborhoods, • Rehabilitation Reinvestment Act including the construction,. • Acquisition (CRA) rehabilitation, bridge and acquisition finance needs of developers of affordable rental and for-sale housing, as well as first time, low and moderate income homebuyers. Provides funds to qualified affordable housing projects that would not meet customary criteria or existing secondary mortgage market requirements or for which there is no secondary market Provides interest rate at 20 basis point below 11th District costs of funds. Federal Home Loan Direct subsidies to non- • New Construction Bank Affordable profit and for-profit • Expand Home Housing Program developers, and public Ownership for Lower agencies for affordable Income Persons low-income ownership and rental ro'ects California Organized Provides financing for • Affordable housing Investment Network affordable rental or financing (COIN) ownershi housin . CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 84 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN McAuley Institute Revolving Loan fund and • Acquisition technical assistance to Homeless Shelters build or rehabilitate New Construction housing. Rehabilitation • Self-Help Housing • Single Room Occupancy Hotels • Transitional Housin Mercy Loan Fund Makes loans to projects in "• Acquisition which conventional "' • Group Homes/ financing is not available or Congregate Care not affordable and Infrastructure promotes innovative and Development effective financing • Mobilehome Park arrangements. Purchase Assistance • New Construction • Preservation • Rehabilitation • Self-Help Housing • Single Room Occupancy Hotels • Transitional Housin Neighborhood NHS is a three-way • Energy Conservation Housing Services partnership among Operation neighborhood residents, Administration local governments and • Rehabilitation local businesses. The Neighborhood Reinvestment Corporation provides direct technical assistance, expendable grants, and capital grants to NHS, which makes loans for rehabilitation. Worlc~lBffiDGE Provides lower-interest • New Construction Initiative construction financing for • Rehabilitation affordable or mixed- Acquisition income rental housing or affordable home ownership through a consortium of World Savings/Calpers/Wells Fargo/ Bank of America CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 85 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES' CITY OF TUSTIN Non Profit According to the State • Acquisition and Organizations Department of Housing rehabilitation and Community Management of multi- Development, three family units nonprofit agencies in Orange County have expressed interest in purchasing and or managing at risk or' replacement units in the Tustin area. Orange County Non-profit lender • Construction Financing Affordable Housing consortium • Permanent Financing r-ie,.,,...t,,,,,~o ~ The Replacement Housing, Housing Rehabilitation, Housing Production and Land Cost Write-Down programs all use the RedevelopmenYAgency's low- to moderate-income housing set-aside funds to leverage other regional, state, and federal funding sources. These sources include, but are not limited to: Orange County Housing funds, California Housing Finance HELP funds, Department of Housing and Urban Development HOME funds, along with housing revenue bond financing and low income housing tax credits. Such sources help to ensure an adequate level of funding to satisfy the City's affordable housing production requirements. Source: City of Tustin Redevelopment Agency Comprehensive Affordable Housing Strategy 2008-2018 In addition to these resources, there are also potential public and private resources that. may be available to the City. HOUSING PROGRAMS The following matrix identifies existing and new housing programs to be implemented during the 2006-2014 .period. Table H-22 is a comprehensive summary of the City's quantified objectives set forth for each program for the planning period 2006-2014. The programs are organized according to the goals described previously. Appendix C is a six-year capital plan showing anticipated expenditures of projected local revenues for affordable housing tFY 2008-09 to 2013-14). CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 86 2008 eh r N N Q N O x W ~"~ ~z HW W a w z 0 x ro W Gl .~ H T 0. ~. O y C~ C •y O x iv 0 Q iv O C,3 R c~C '.op V V R. C]. ~ R ~ tQ ~ a a . . ~ ~~ ~~ ~ v .~ ~ ~ o ~ `~ ~ o a3 ~~ :c O O ~ ~ v ~ O "C y O ~ ~j ~ CC .a R ~ ~ ~ '~ ~ v ~ Q~ v ~ ~ ~ 1C .~ C Tl ~ ~ `~ ~ o ~ '~ ~ ~ ~ d ~ a ~+ ¢ ¢ U ~ ~ (; C ~ w .~ ~ G ~ h ~ ~ ~ w ,, a+ ~ O O W G O ~ a> v~~ K .s ~~ ~ W '~ aCi v G~ .~ f d ~ ' ~ O m O ... > ,.. s. 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O K ~ O c C .. i G y >, y ~ ~ ~ u ~ G C G ~ ~ ~ C v • u ` . ~ G y n i ~ ~~oV~ ' ~b~R3~ w ~ °p~~°q 5 w rn, H ~v G~~ [ ~ ~ aa. a. ~ ~ wv~ .~ 3Rv •~ ~ R ~.~ O ~ ,~ ~~ ~" V w V E~ o ~ O ~' ,~ O p C U a ~ (J 'G O '~" N ci y O~ O .uCr O U ~n to U x c f . C t O O O Q zo w~ a W z O x d\ zz ~~ a H~ w O ~z U C7 v w v H .~ 0 00 ~ ,R 'C OJ ~ m ~ Q d i ~ p O ~ ~ d , R ~ ~ ~ R .O d 'ma '~ y ~' •~+ O1 .~ v G R ~ y p h ~ ~ti .~ • • d~ O V G W N Gn ~ ~ O ~ w ~ ~ G w ~ vA O LYi R.r H ~ v o ° W G '~ W ~ ~ ~i +r y ~ G ~ ~ ~ w ~ :° ~' ~ ~' ° ' a. a v ~ °' ~~ ~ O A a ~ °~a co ao z ~ ~~~s°v~ 0 ~, 0 a ~ O v a o~va~~~ a,a.AVCax¢ ~ ~ '~ '" ~ ' ° R y ~ ~ a u ~ C1 m O o ~ ++ ~ GJ ,V~ ~ y ++ 'LS y O R ~ c ad ~ c o C . 41! 'C ~ ~a ~ b G t0 ~ ~ o ~ ~ ~ o ~, ~ ~ ~ ~ a ~ vC]~ ~ ~ a ~ ~ i° ~ ~ °r d O Q a . a ~ o ~ ° ' i .~ y a ~ a ~ N ~ O ~i '~ ~ ~ G N i O r ~ V 'C ° d ,~ Y! „C , ~ ~ v~~ 'C ¢ ~ R G ` ~ G~ ~ Q ~ .•V• u. O" ~ Gr ~ O C~'i ~' U y 0 ~' ~ E ~ C Q" y d , ~ c 6 O . 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N Ci •.a p ~ ~ `p C y `D C .~ :C `o ~ •G `o ~ `o ~ ~~ ~ ~">a~, v ~~F ~ ~9'G ,~, ~" v ~ ~ a ~ ~ ~ ~ ~ ~ [ ~ R v W a' " y y 0.1 p a i v ~a i .r. v w ca 41 '" G G m G. „ ~ tC C v~ ~ O ~ ~ i G •~ ~ ~~ G e0 o y G sue. ~ ~ O O ~ • v ' t7 ~ en a O N ~c a A. Z M~~ v O ~6 ~ a a X eM ~~ O ~o a` ~ x ~ O to o ~ o; ~ Z ~D ~ O ~d ~ x ~+ O O V N w a ~~ wa N W z 0 x L(~ O .-i z z ~' a ~~ w OW ~z U C7 Appendix to Housing Element APPEi~TDIX A REVIEW OF PAST PERFORMANCE CITY OF TUSTiN HOUSING ELEMENT GENERAL PLAN 107 X008 Appendix to Housing Element 'This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 108 2008 Appendix to Housing Element REVIEW OF PAST PERFORMANCE State law establishes afive-year cycle regulating housing element updates. In compliance with the SCAG cycle, the Tustin Housing Element was updated in 1989 at which time it was found to be in compliance with State law, and was updated again in 1994. In 1997, the City of Tustin initiated a comprehensive General Plan update, and the Housing Element was again.. updated to accommodate the MCAS Reuse Plan and to ensure consistency with other General Plan Elements, as well as to address. recent changes in State law. These amendments were adopted on' January lb, 2001. In 2002, the City once again updated its Housing Element and was. certified by The State's Housing and Community Development Department in compliance with State's Law. Review of Past Housing Element Objectives (1998-2008) The 1999 SCAG Regional Housing Allocation Model indicated a new construction need in Tustin by 2005 of 3,298 units, of which 694 units were for very low income households, 489 for low income, 778 for moderate income and 1,337 upper income. The following discussion highlights the progress, effectiveness and appropriateness of 1998-2005 Housing Element Objectives and the progress achieved during the 1998-2008 time period. Table HTM-36 in the Technical Memorandum provides a more detailed summary of the City's overall .accomplishments for the years 1998-2008, broken into two time periods (1998-2000; 2001-2008). ~s indicated in Table HTivI-36, the City was successful in accomplishing the majority of the objectives established for the past planning period. According to City Staff, the following objectives were met or exceeded: New construction 4,289 units were constructed during the 199$-2008 period, exceeding the City's objective of 3,298 units for the planning period. CITY Off' TUSTIN HOUSING ELEMENT GENERAL PLAN ~ 09 2008 Appendix to Housing Element Available Sites The program objective was to utilize Planned Community Districts and Specific Plans to authorize and encourage mixed-use developments to assist in the development of new affordable owner and rental housing, including 3,151 infill units at MCAS Tustin. The program has seen development of 1,486 units over the 10 year period, including a new 12 unit live/work development (known as Prospect Village) in Old Town. Mobile homes The objective to maintain existing units was accomplished. In addition, entitlement for the creation of 10 new mobile' home spaces was accomplished. Deed restricted affordable units The objective of requiring deed restrictions to ensure continued affordability for low- or moderate=income housing constructed or rehabilitated with the assistance of any public or Redevelopment Agency funds as may be legally required was successfully met. Between the years 1998-2000, 207 units deed restricted units were established, and from 2001=2008, 243 restricted units were 'established, for a total of 450 deed restricted units established during the program implementation period. Pre-application conferences The objective to continue to utilize pre-application conferences and processing procedures to expedite processing was carried out on a total of 37 projects during the review period. Transitional Housing The program objectives were to promote, assist, and facilitate the development of emergency and transient shelters through continued support of the County Homeless Assistance Program, and to supporting local agencies that provide homeless services with financial assistance. The program has been effective in maintaining 3 homes with a total of i6 beds through the period, as well as 90 beds at the Orange County Social Services Tustin Family Campus facility CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 110 2008 Appendix to Housing Element as a shelter for abused and neglected children and their parents and for emancipated youth. Temporary housing for the homeless The program to support countywide efforts to assist approved homeless providers as part of the MCAS Tustin reuse effort was outlined in a series of specific objectives, all of 'which were achieved. A large variety of temporary and transitional facilities to be operated by various homeless providers have been developed at Tustin Legacy, as follows: Construction. of the 19~-bed Village of Hope facility to be operated by the Orange County''Rescue Mission is complete. Twenty-three units.. of transitional housing to be operated by the Salvation Army have been completed at Tustin Field I, as well as acquired in the city of Buena Park with the City of Tustin's assistance. fix new transitional units for women and children have been completed in the.,. Columbus Grove development at Tustin Legacy, to be operated by Human Options. An additional 6 units have been completed at Columbus Grove for families with children, to be operated by Orange Coast Interfaith Shelter. Finally, l4 units at Columbus Grove will provide transitional housing for families with children by Families Forward (formerly Irvine Temporary Housing). Housing. opportunities for all economic segments The program to monitor the implementation of the affordable housing; program adapted as a part of the East Tustin Specific Plan has successfully met the objective of monitoring i74 units in East Tustin over the 10 year period. Bonding Programs The Redevelopment Agency has successfully administered a bond financing program which has processed a total of 252 restricted units for very-low and low income households to accomplish Five-Year Quantified Objectives and help meet the City's affordable housing needs. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 111 2008 Appendix to Housing Element Senior Citizen Housing The objective in protecting and providing senior citizen housing was identified as the preservation of 100 at-risk and creation of 60 new units by 2005. The 100 at-risk units were preserved throughout the review period. In the 1998-2000 period, a site on Sycamore Avenue was identified fora 60-unit senior housing project, which was ultimately developed into 54 one-hundred percent affordable senior units, known as Heritage Place at Sycamore. Senior Services Program The City's objective to develop a senior services program consisting of a comprehensive transportation program, case management, information and referral, and a shard housing program to assist 850 elderly annually was exceeded with 920 elderly receiving assistance annually between 2001-2008. Recycling Single-Family Uses into Multiple-Family Units The program to encourage developers: to consolidate individual lots into larger cohesive developments by responding to all requests for density. bonuses per City codes was accomplished in that the City saw the' construction of one additional unit at 135 A Street and density bonuses were. granted to Lennar as an incentive for the creation of affordable units at the Villages of Columbus. Ongoing. Review of Housing Element Programs The objective to conduct an on-going review of Housing Element programs by preparing an annual report to the Planning Commission assessing the previous years' accomplishments toward meeting Housing Element objectives and then submitting the annual report to the State HCD was achieved. Zoning Studies The City was to undertake zoning studies to consider new programs to encourage and promote affordable housing and recommend appropriate amendments for action by the Planning Commission and City Council. The program was effective in adopting the density bonus ordinance in 1999, subsequently revising it in compliance with CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 112 2008 Appendix to Housing Element the change in state law, and in adopting a Planned Community District to accommodate a mixed use project (Prospect Village) in Old Town. Private Streets In order to reduce construction costs, the City adopted standards for private streets and continued to permit developers to install private rather than public streets when feasible: In the 1998-2000 period, 69 private streets were created. Site Improvements New developments require the construction of site improvements which are often costs that are passed on from the developer to the housing consumer, creating an even greater barrier to qualifying for the purchase of home. In order to reduce these added housing costs, the objective was to_evalua~te the use of 'special assessment district funding at MCAS Tustin (Tustin Legacy) by 2005 as well as in other developing areas. During the 199$-20~ period, portions of public works assessment district bonds were converted to fixed rate to lower cost. During the 2001-2008 period, assessment districts were created at Tustin Legacy. Environmental Constraints The on=going goal was to require program Environmental Impact Reports (FIR) on all major development projects to decrease the delays in processing and incorporating mitigation requirements into the development plans. In the first half of the review period, 11 negative declarations (ND) were adopted and a draft and final program joint EIS/FIR for the MCAS Tustin project was prepared. In the' `second half of the review period, the Final Program EIS/ EIR for MCAS Tustin was completed. Density Bonus Program The objective was to process all request for density bonuses in order to facilitate the construction of affordable housing. In 1999, the Density Bonus Ordinance was adopted and one application was processes. $etween 2001-2008, Lennar/Lyon were granted 182 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 113 2008 Appendix to Housing Element density bonus units for the creation of affordable units at Columbus Square and Grove. MCAS Tustin Redevelopment Project Area The goal to create a new redevelopment project area for the MCAS- Tustin site by adopting the MCAS-Tustin Specific Plan and Redevelopment Project area was attained. Fair Housing The City's objective to contact with the Fair Housing Council of Orange County (FHCOC) tv assure equal housing opportunities by assisting approximately 400 residents annually and 2,000 residents by 2005 was exceeded. Between 1998-2000, 2,289 complaints were processed, and an additional 1,541 were processed between 2001- 2008. Shared Housing The City continued to provide coordination and support to an Orange County housing sharing program by handling a total of 75 cases'during the review period. Housing Referral Program The City continued to provide housing referral services to families in need of housing assistance and information through the Police, Parks and Recreation Services, and Community Development Departments. The objective was to make 8,750 referrals to social agencies and 50 referrals for shard housing by 2005. Between 1998- 2000, 4,375 social service referrals and 25 shared housing referrals were made; between 2001-2008, an additional 4,850 social service referrals and 50 shared housing referrals were made. Replacement Housing The program objective was to ensure rehabilitation or construction of an equal number of replacement units when low and moderate income residential units are destroyed or removed from the market pursuant to California Community Redevelopment Law. Over the CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 114 2008 Appendix to Housing Element 10 year period, 86 units were removed and replacement was completed. Housing Rehabilitation The goal to rehabilitate 100 units by allocating CDBG and Redevelopment Agency (RDA) funds - to finance public improvements and rehabilitation of residential units in target areas was achieved. A total of 119 units were assisted with RDA funs over the review period. Housing Authority The program to contract with the Orange County Housing Authority (OCl-iA) for the development and operation of federally assisted low and moderate income housing programs was continued and 1 developer contract (Tustin Gardens) was processed with OCl-iA. Rental Assistance The program to provide rental assistance through Section 8 certificates and voucher certificate program assistance funds through the OCHA was successful aver the review period. The objective to issue 200 certificates/vouchers° annually and 1,000 by 2005 was exceeded: Between 1998-2000, 632 certificates/vouchers were issued, and approximately 350 were issued annually between 2001-2008. Affordable Senior Housing Project and Senior Board and Care Facility The program objective to maintain 38 units of affordable senior housing,,(20 units in a housing complex and 18 units in a board and care facility) was exceeded. Over the review period, 112 housing units were maintained as well as the 18 board and care units. Preservation of Assisted Housing Tustin has a total of 100 low income units that have been at risk of conversion during the review period. The objective to monitor and preserve all of these units at risk was completed successfully. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 11 S 2008 Appendix to Housing Element Enforcement of Building and Housing Codes The City's Code enforcement conducted over 6,000 property maintenance and housing code related inspections during the past review period. The City has been successful in getting property owners to abate code violations. Cultural Resources District The purpose of the City's Cultural, Resources Overlay District is to safeguard the heritage of the City by preserving. neighborhoods and structures that reflect the Cis heritage and past: The objective in the planning period was to-rate historic structures where applicable and process 20 certificates of appropriateness. In thee' 1998-2000 period, nine units were rehabilitated. In' the 2001-2008 period, the Community Development Department issued 79 Certificates of Appropriateness certifying building changes were consistent with design guidelines and appropriate within the District context. Energy Conservation All new construction is required to be subject to state energy conservation ('Title 24) requirements as a condition for the issuance of a building permit. In the review period, 1,556 new units were required by the City to meet these standards. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 116 2008 APPENDIX B .AFFORDABILITY GAP ANALYSIS CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 117 2D08 Ci of Tustin Affordability Gap and~everaged f=inancing Analysis 1.0 Executive Summary The City of Tustin retained David Paul Rosen & Associates (DRA) to prepare an affordability gap analysis and evaluation of leveraged financing o tions for new residential development in Tusttn. The. "affordability gap" methodology determines the difference between the supportable mortgage on the unit at affordable rents and sales prices and the actual development cod of the unit. The gap analysis provides planning level estimates of the typical per unit subsidized required to make different types of housing affordable to households at alternative income levels. The per unit affordability gaps calculated in this report are based on housing prototypes that are 100% affordable to households at each of the income levels modeled (or in the case of the leveraged financing analysis, at the mix of income levels necessary to meet the requirements and/or competitive standards of the leveraged financing programs). However, the results can be used in estimating subsidy requirements for mixed income housing developments as well. Under the assumption that the market rate units are financially feasible without subsidy, the subsidy requirement for a mixed income development can be estimated by multiplying the number of affordable units by the appropriate per unit affordability gap. The results of the gap analysis provide a useful tool. to the City of Tustin and Tustin Redeveloprr~nt Agency for capital planning. purposes. DRA recommends that the subsidy provided to any individual housing development be determined based on analysis of the specific economic conditions pertaining to that Prof- .. The first step in the gap analysis establishes the amount a tenant or homebuyer can afford to contribute to the cost of renting or owning a dwelling unit based on established State and Federal standards. Income levels, housing costs and rents used in the analysis are defined below using 2007 published data for Tustin. The second step estimates the costs of new housing construction in Tustin. For this purpose, DRA, in collaboration with City staff, formulated five prototypical housing developments (one rental development and four owner developments) suitable for the Tustin market today. DRA estimated the cost to develop these housing prototypes in Tustin under current housing conditions using information on actual recent housing developments provided 6y Tustin and Orange County area developers. The third step in the gap analysis establishes the housing expenses borne by the tenants and owners. These costs can be categorized into operating costs, and financing or mortgage obligations. Operating costs are the maintenance expenses of the unit, including utilities, property maintenance and/or Homeownership Association (HOA) fees, property taxes, management fees, property insurance, replacement reserves, and insurance. For the rental prototype examined in this analysis, DRA assumes that the City of Tustin Affordability Gap and Leveraged Financing Analysis Page t landlord pays all but certain tenant-paid utilities as an annual operating cost of the unit paid from rental income. For owner prototypes, DRA assumes the homebuyer pays all operating and maintenance costs for the home. Financing or mortgage obligations are the costs associated with the purchase or development of the housing unit itself. These costs occur when all or a portion of the development cost is financed. This cost is always an obligation of the landlord or owner. Supportable financing is deducted from the total development cost, less any owner equity or downpayment, to determine the gap between the supportable mortgage on the affordable units and the cost of developing. those units. For the rental housing totype, the gap analysis calculates the difference between total development costs and~the conventional mortgage supportable by net operating. income from restricted rents. For owners, the gap is tl~e difference between development costs and the suppottable mortgage plus the buyer's down payment Affordable housing costs for renters and owners are calculated based on California Redevelopment Law definitions and occupancy standards. Household income is adjusted based on an occupancy standard of one person per bedroom plus one. The gaps for the owner prototypes are summarized in Table 1. The gaps have been calculated for the following thnee income levels:, Income Limit Affordable Housing Cost 1. Very Low Income 50% of Area Median Income (AMI), adjusted 30% of 50% AMt for household size 2. Low Income 80% of AMt adjusted. for household size 30% of 70% AMt 3. Moderate Income 120% of AMf, adjusted for household size 35% of ~ 10% AMf Depending uppoon the source of subsidy for ownership housing, the gaps may vary. For example, Federal HOME funds do not require deduction of a utility allowance in the calculation of affordable mortgage payment. However, under California Redevelopment Law, owner affordable housing expense is defined to include monthly utility costs. This increases the ownership gaps. The affordability gaps shown in Table 1 include utility allowance deductions. The gaps for the rental prototype, without non-local leveraged financing, are summarized in Table 2. The gaps have been calculated for the following three income levels: City of Tustin Affordability Gap and Leveraged Financing Analysis Page 2 Affordable Housing Income Limit Cost 1. Very Low Income 50% of Area Median Income (AMl), 30% of 50% AMI adjusted for household size 2. Low Income 80% of AM1, adjusted for household size 30% of 60% AMI 3. Moderate Income 120% of AMi, adjusted for household size 30% of 110% AMI DRA produced, under separate cover, a comprehensive review of Federal, State, and pprivate sources of funding that mi~ltt be used to wbsidize affordable rental and ownership housingg in Tustin. For ownership housing, per unit mortgage assistance, as available, generally reduces the gap on a dollar for dollar basis. For rental developments, the use of the Low Income Housing Tax Credit Program and/or tax-exempt bonds is more complicated, because of the formulas for calculating tax credits and the specific income targeting required. ~, Therefore, for the rental prototype, we have examined the following leverage scenarios: 1. 9% Low Income Housing Tax Credits (Federal onty)~; 2. 4% tax credits with tax-exempt bands; and 3. 4% tax credits, tax-exempt bonds, and the Multifamily Housing Program (MHP) of the California Department of Housing and Community Development (HCD). The assumptions and findings are described ,in the following section. The sources and uses for each Leveraged rental scenario are summarized. in Table 3. ~ Since Orange County was designated as a Difficult to Devebp Area (ODA) by HUD in 2007, projects in the County are eligible fora 130% basis boost for the calculation of Federal tax credits but are not eligible for State tax credits. City of Tustin Affordability Gap and leveraged Financing Analysis Page 3 Table 1 Homeowner Per Unit Subsidy Requirements' City of Tustin 2008 Very Law Low Moderate Prototvce/Unit Bedroom Count Income= Income' Income' Owner Prototype #1' Attached Townhornc 7bvo Bedroom 5366,000 5322,400 5195,500 Throe Bedroom 5387,800 5339,400 ;198,400 Four Bedroom 5426.800 5374,600 S222,300 Average 5393,500 5345,500 $205,400 Owner Prototypc #2~ Stacked Flat Condominium One Bedroom 5258,600 5219,900 5107,100 Two Bedroom 5259,000 5215,500 388,600 -Three Bedroom 3267,100. $218,800 $77,800 Four Bedroom 5290,500 3238,300 586,000 Average 5268,0 $223,100 $89,900 Owner Prototype #3' High Density Condominium O~ Bedroom $407,500 5368,800 S256,000 Two Bedrooorn 5432,500 5389,000 5262,100 three Bedroom 3542,000 3493,700 5352,600 Four Bedroom $569,400 5517,200 5364,800 Average 5487,900 5442,200 5308,900 Owner Prototype #4~ Mixed Use, Ground Floor Retail One Bedroom ;491,700 5453,000 5340,200 Tvvo Bedrooom 5537,400 5493,900 5366,900 Three Bedroom 5595,000 5546,600 5405,600 A~gg 5541,300 5497,800 5370,900 Source: David Paul Rosen & Associates City ofTust(n Affordability Gap and leveraged Financing Analysts ~8a 4 Notes to Table 1: 'Per unit subsidy requirements are calculated as per unit total development cost less affordable home purchase price, based on an occupanry standard of one person per bedroom plus one, per California Redevelopment Law. Affordable home purchase price is calculated based on monthly affordable housing expense, inclusive of mortgage principal and interest, property taxes and insurance, utilities and homeowners association (HOA) dues. Calculations are based on the following assumptions: 30-year mortgage interest rate of 8 percent; average property tax rate of 1.20 percent; property insurance costs of $SD per month; HOA dues of $175 per month; and a utility allowance calculated' based on County of Orange, Housing and Community. Services Department utility allowance schedule, effective October 1, 2006. =Very low income owner affordable housing is cost calculated as 30 percent of 50 pencent of AMI, adjusted for household size. Average very low income affordable home purchase price is $70, 764. ' Low income owner affordable housing cost is calculated as 30 percent of 7a percent of AMI, adjusted for household size. Average low income affordable home purchase price is $t 16,457. '` Moderate income owner affordable housing cost is calculated as 35 percent of 110 percent of AMI, adjusted for household size. Average moderate income affordable home purchase price is 6249, 723. s Owner Prototype ~1 average unit size is 1,296 square feet. Average per unit development cost is $468,663. Per unit development costs are adjusted 6y unit size/bedroom count. `Owner Prototype #~2 average unit size is 1,142 square feet. Average per unit development cost is $339,591. Per unit development costa are adjusted by unit size/bedroom count.. Owner Prototype. x3 average. unit size is 1,350 square feet. Average per unit development cost is $558,617. Per unit development costs are adjusted by unit size/bedroom count. ° Owner Prototype i~4 average unit size is 1,515 square feet. Average per unit development cost is $608,112. Per unit development costs are adjusted by unit size/bedroom count. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 5 Table 2 Tenant Per Unit Subsidy Requirements' Rental Housing Prototype: Stacked Flat Apartments City of Tustin 2008 Renter Prototype Stacked flat Apartments ~v Unit Bedroom Count One Bedrooms Two Bedroom6 Three Bedroom' Four Bedrooms Average Very Law Low Moderate Income Income' Income'` $311,300 ;294,600 $211,400 $348,000 $329,300 $235,600 $321,800 $301,000 $197,000 $402,000 $3 79,600 $174,800 $345,775 $326,125 $204,700 Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Levereged Financing Analysis Page 6 Notes to Table 2: 'Tenant per unit subsidy requirements are calculated as per unit total development cost less per unit tenant supported debt. Tenant supported debt is calculated based on tenant monthly operating income which equals: affordable monthly rent, inclusive of utilities, less a monthly per unit operating cost of x300, property taxes assumed at an average annual rate of 1.20 percent; and a 3 percent vacancy rate. Tenant supported debt calculations are based on a 30-year mortgage interest rate of 8 percent and a debt coverage ratio of 1.25. Affordable monthly rents are based on household income, adjusted for household size assuming an occupancy standard of one person per bedroom plus orre, per California Redevelopment Law. ' Very low income renter affordable housing cost is calculated as 30 percent of 50 percent of AMf, adjusted for household size. Average very low income affordable monthly rent is $847. ' Low income renter affordable housing cost calculated as 30 percent of 60 percent of AMI, adjusted for household size. Average low income affordable monthly rent is $1,033. Moderate income renter affordable housing cost calculated as 30 percent of 110 percent of AMI, adjusted for household size. Average moderate income affordable monthly rent is $1,963. s One bedroom unit is 750 square feet. Per unit total development cost is 5321,075. e Two bedroom unit is 950 square feet. Per unit total development cost is $362,224. Three bedroom unit is 1,050 square feet. Per unit total development cost is $382,799. ° Four bedroom unit is 1,250 square feet. Per unit total development cost is $423,947. City of Tustin Affordability Cap and Leveraged Financing Analysis Page 7 Table 3 Average Per Unit Subsidy Requiremenb Rental Housing Prototype: Stacked Flat Apartments Leveraged Financing Scenarios City of 71~sUn 2008 Renter Prototype Stacked Flat Apartrrs~ents I.everas~ed Financier Scenarios 996 Tax Credhs X57,000 496 Tax Credits, Tax-Exempt Bonds 5140,100 4°k Tax Credits, Tax-Exempt Bonds, Muiti-Family Housing Program (MHPy X109,600 Source David Paul Rosen & Associates. City ofTwin Affordability Gap and leveraged Financing Analysis Page 8 Appendix to Housing Element APPEl~1DIX C AFFORDABLE HOUSING CAPITAL PLAN FY X008-09 TO' FY X013-14 CITY 01~ TUSTIN HOUSING ELEMENT GENERAL PLAN 119 2008 Appendix to Housing Element This page intentionallyleft blank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 120 2008 Affordabl® Housing Capital Plan 1.0 Introduction DRA prepared a six-year capital plan showing anticipated expenditures of projected local revenues for affordable housing in Tustin over the six-year period from FY 2008/09 through FY 2013/14 based on the policy priorities established by the City and on per unit subsidy requirements derived from the affordability gap analysis. The policy recommendations developed by the City for the forthcoming Housing Element update provide guidelines for expenditures by renter/owner, family/senior/special needs and income targeting categories. The actual number of units that Tustin can assist will depend upon its success in securing non-local leveraged financing, including 9 percent tax credits and 4 percent tax credits with tax-exempt bonds. Table 1 presents the six-year capital plan goals for Tustin over the projection period. Over the six-year period, the City/Agency is projected to have $19.27 million in Housing Set-Aside and CDBG Funds. available to assist affordable housing. The Agency's operating costs related to its affordable housing activities are projected to equal $4.95 million over this time period, leaving $14.32 million for affordable housing and homeless assistance. The City's assistance goals total 1,094 housing units over the projection period, excluding the number of persons assisted under the Homeless Assistance. and Supportive Services program. The programs and assistance goals listed in the capital plan are described in the sections below. 2.0 Affordable Housing Assistance Goals and Programs 2.1 Preservation of At-Risk Affordable Housing Rental IInits The City of Tustin has identified the preservation of existing affordable housing units as one of the most cost- ] effective methods of maintaining the stock of affordable ~ housing therefore a high-priority program for the City. City of Tustin Administrative Review Draft May 2, 2008 Affordable Housing Capital Plan Page 1 ( The City has identified 277 units expiring use restrictions within period, including 145 units of ve 132 knits of low income housing. of at-risk housing with the six-year planning ry low income housing and Given the relative weakness of economic conditions and the housing market currently, the City will proceed to negotiate the extension of affordability restrictions on these unite in advance of the specific expiration dates for these units. The amount of assistance provided will be negotiated based on the specific economics of each development and the potential availability of leverage financing, such as tax- exempt bonds and 4$ tax credits., The total amount of funds allocated to this program is $2,181,672. Z.2 3lugle- sad Multi-Family 8oms Rahabilitatioa Program The City has identified single- and multifamily home rehabilitation loans and grants as another cost-effective method of extending the life of affordable housing in the community. The City will target single-family neighborhoods in the vicinity of the Town Center opportunity area as part ' of the Town Center revitalization effort, as well as ' multifamily units citywide. The City's goals under this program are to rehabilitate 162 units, including. 54 single- family units and 108 multifamily units. 2.3 Ownership Multifamily Nee Construction The City also intends to assist ownership: multifamily new construction. Per unit subsidy requirements by income level are derived from the gap analysis, assuming construction of new stacked flat condominiums (Owner Prototype.#2), which is the least costly ownership housing type examined. The City proposes to spend approximately half of the funds allocated to new affordable housing construction to ownership housing, and half to rental housing, in the amount of $4.36 million each. The City's goal is to build 18 new owner units, including 7 units affordable to very low income households. and it units affordable to low income households. Z.4 Multi-Family Rental Ne~- Construction In addition, the City will assist multi-family rental new construction. Per unit subsidy requirements by income level are derived from the gap analysis for the renter stacked flat prototype, assuming leverage from 4$ tax credits and tax-exempt bonds. Additional leverage may be obtained if City of Tustin Administrative Review Draft May 2, 2008 Affordable Housing Capital Plan Page 2 the City is able to identify a project competitive for the E 9~ tax credit program. The City's goal is to assist 31 new construction rental units under this program, at a total subsidy cost of approximately $4.36 million. 2.5 First-Time Homebuyer and/or Foreclosure Negotiated Purchase The City's First-Time Homebuyer Program provides downpayment and second mortgage assistance to low and moderate income buyers to assist them to purchase an existing home in the City. The recent mortgage credit crises has resulted in increasing foreclosure rates throughout many parts of California and. the nation. The City has allocated. $2.4 million. to assist new first-time homebuyers in purchasing a home. This may include negotiated purchase of homes in foreclosure, which may represent a lower cost buying. opportunity for first-time homebuyers. The City anticipates assisting 30 homebuyers with these funds. 2.6 Homeless Assistance and Supportive Services The City has allocated $60,000 in CDBG funds to continue its financial support of homeless assistance and supportive services in the City. The City's goal for this program is to assist 200 homeless individuals per year over the projection period. 2.7 Tustin Legacy Owaerahip Multi-Family New Coastruction The City's development agreements for Tustin Legacy are projected to create 323 new affordable multi-family ownership units ir} the City over the six-year projection period. This. includes 130 units in TLCP and 193 units in the Villages of Columbus. The City anticipates the creation of 40 units affordable to very low income households, 116 units affordable to low income households, and 167 units affordable to moderate income households. The TLCP unit count represents projected Phase 1 development and the subsidy requirement is unknown at this time. The cost of maintaining the affordability of the TLCP units will be transferred to the Redevelopment Agency and the expense associated with maintaining the 45-year covenants will be determined at the time residential development proceeds. There is no subsidy requirement for the affordable units in the Villages of Columbus. City of Tustin Administrative Review Draft May 2, 2008 Affordable Housing Capital Plan Page 3 a.8 Tustin Legacy R®ntal N®w Construction The City's development agreements for Tustin Legacy are projected to create 253 new affordable rental units, including 126 units affordable to very low income households, 64 units affordable to low income households, and 63 units affordable to moderate income households. The TLCP unit count represents projected Phase 1 development and the subsidy requirement is unknown at this time. The cost of maintaining the affordability of the TLCP units will be transferred to the Redevelopment Agency and the expense associated with maintaining the 55-year covenants will be determined at the time residential development proceeds. Z.9 Administrative Support. The Agency will provide administrative support to implement its affordable housing activities. The Agency projects operating expenses of $4.95 million over the six-year capital planning period. ~. City of Tustin Administrative Review Draft May 2, 2008 Affordable Housing Capital Plan Page 4 ~ ,~~ I_;..~ < a ry ~~ ~ ~ ~ ~ ~~ ~~ ~' _ ~ ~~~ ~~3 ~~~ ~~!° ~ 7 ~n ~~ON NO ~ ,. ~~~~ ~~~ ~ ~' ~~ ~ N tgl i ~~ ~ ~ M '~ ;'~ ~ I~ I ~~ ~~ ~~~ ~~ I~~ ti ~~~ t ~ i ~ i ~ ~ I~ ~~ ~) n.~ ~I Leo' ~ °ef ~ g~~l ~ag ~ ~ ~ i j ~8 8I ~ I ~~~ ~S$ ~~~ $ ~ I ~~I N ,~ ~~!~ ~~ '~ ~ ~ ~~~ ~ ~, ~ E ~~~. ~ ~~ ~~ ~ ~~ • ~w • 1 1 I• 3 !I• r E. ~~ ~ 3 E ~ ~~ ~ a ~~ ~~~~~y ~ ~ ~~ ~ ~Y~ 7~1~ ~~ ~~~ ~ ~ ~'~~ ~~~ ~ ~~ ~~ ~ ~~ ~ ~~ ~ ~,~ ~~ ~~~,~$~ ~~~~~ ~~ ~~ ~ ~ ~~ ~ ~.. .. ~~~~~ ~s~ ~ ~ ~; ~ ~ ~ ~ s~ ~ ~ ~~ ~ ~~ ~ ~' ~ 3 ~ ~~~~~~ ~ ~ $ ~ ~ ~~~~~~~~ Appendix to Housing Element APPENDIX I? PUBLIC PARTICIPATION MAILING LIST CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 121 2008 Appendix to Housing Element This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 122 2008 Veterans Service Dept. 422.0 Lemon Street erside, CA 92501 3 YMCA Community Counseling Services 2 Executive Circle, Suite 280 Irvine, CA 92714 Tustin Area Historical Society br Museum 395 EI Camino Real Tustin, CA 92780 Probation Community Action Assoc. 1111 N. Main Street, #176 Santa Ana, CA 92701 Helen Anderson Hunger Coalitions 14452 Wildeve Lane ~ istin, CA 92780 Barbara Benson Tustin Area Council for Fine Arts P.O. Box 145 Tustin, CA 92781 Dayle McIntosh Center 13272 Garden Grove Garden Grove, CA 92843 Assistance League of Tustin P.O. Box 86 Tustin, CA 92780 Orange Coast Interfaith Shelter 1963 Wallace Street, Apt. A Costa Mesa, CA 92627 Families First 12012 Magnolia Street GardenGrove, CA 92641-3346 Legal Aid Society of Orange County.. ' Community Services Program 2101 N. Tustin Avenue 16842 Von Karman, Suite 425 Santa Ana, CA 92705 Irvine, CA 92714 Susan Alexander Martian Center of Educational Therapy New Horizons 1 Osborn 13821 ilTewport Avenue Irvine, CA 92604 Tustin, CA 92780 Allen Baldwin OC Community Housing Corp. 1833 E. 17th Street, Saute 207 Santa Ana, CA 92701 Doug Bistry O.C Affordable Housing 23861 El Toro-RoadSuite 207 Lake Forest, CA 42640-4733 Vanessa Bruner ferry Caminiti Disabili Awareness Coalition Learning for Life ~' 1211 East Dyer ~ 3773 University Drive, #118 Santa Ana, CA 92705 Irvine, CA 92612 Shirley Cohen Feedback Foundation, Inc. 1200 N. KnoIlwood Circle Anaheim, CA 92801 Donna Core Meals on Wheels 1001 N. Tustin Santa Ana, CA 92707 Pat Davis Big Brothers & Sisters of OC 14131 Yorba Street Tustin, CA 92780 john Drew Family Solutions 203 N. Golden Circle Drive, #la1 Santa Ana, CA 92705 Joan Basile Mary's Shelter 17671 Anglin Lane Tustin, CA 92780 Helen Brown Civic Center Barrio 1655 E. 4th Street, #210 Santa Ana, CA 92701 Patrick Carroll Life Share 11421 Garden Grove Boulevard Garden Grove, CA 92643 Julie Damon The Seed Institute 6271 Tarssa Lane Mission Viejo, CA 92691 Jennifer Feldstein Women Helping Women 425 E.18th Street #14 Costa Mesa, CA 92627-3161 ~~hn Von Glahn Melinda Guinaldo Suzanne Guthrie Family Service Association Assessment & Treatment Services Center Four H Clubs of Orange County 18001 Cowan, # c-d 1981 Orchard Road 1045 Arlington drive Irvine, CA 92714-6801 Newport Beach, CA 92660 Costa Mesa, CA 92626 Mary Hadley Larry Haynes Colin Henderson Info Line Orange County Mercy House 'Transitional Living Ctr. Friendship Shelter, Inc. 2081 Business Center Drive, suite 130 P.O. Box 1905 P.O. Box 4252 ine, CA 92715 Santa Ana, CA 92702 Laguna Beach, CA 92552 Elmer Hothus Christian Temporary Housing Facility 704 N. Glassell Street Orange, CA 92867 Warren Johnson Salvation Army 10200 Pioneer Road Tustin, CA 92780 Judy Johnson ESA/Corporate Office 23861 El Toro Road, Suite 207 Lake Forest, CA 92640-4733 Becky Johnson Alliance for the Mentally Ill 621 S. "B" Street, Suite B Tustin, CA 92780 Susan Knopick Children's Bureau of So. Calif. 50 S. Anaheim Boulevard Ananheim, CA 92805 Laura Archuleta, President Jamboree Housing Corp. 17701 Cowan Avenue, Suite 200 Irvine, CA 92614 Elizabeth Jones C.O.P.E.S. 2025 N. Broadway Santa Ana, CA 92706 Robyn Class Doris La Magna Orange Children & Parents Together `The Villa Center, Inc. 3550 E. Chapman Avenue 910 North French Orange, CA 92869 Santa Ana, CA 92701 Elaine Lintner Marisa Charette, President & CEO OCSPCA-Paws- Tustin Chamber of Commerce 5660 Avenida Antigua 399 El Camino Real Yorba Linda,;CA 92687 Tustin, CA 92780 JoAnn Ruden Tustin Public School Foundation . 17411 Irvine Boulevard, #I Tustin, CA 92780 _-eresa Marji Wendy Marohnic Brenda Martin Legal Aid of Orange County Human Options Second Step Laurel House 2101 N. Tustin Avenue P.O. Box 9445 13722 Fairmont Way Santa Ana, CA 92705 South Laguna; CA 92677 Tustin, CA 92780 Easter Seal Society, Inc. Sherry McCulley Legal Aid Society of Orange County OC Council on Aging ~ 4321 Walnut #S11 2101 N. Tustin Avenue Street #200 1971 E. 4 ~~ Ana CA 92705 Irvine, CA 92604 Santa Ana, CA 92705 , Jim Miller Lutheran Social Srvc. of Southern Calif. Beverly Nestande Shelter for the Homeless 2560 North Santiago Blvd. Olive Crest Homes 15161Jackson Street Orange, CA 92867 2130 E. Fourth Street, Suite 200 Midway City, CA 92655-1432 Santa Ana, CA 92705 Boys & Girls Club of Tustin 580 W. Sixth Street Tustin, CA 92780 David Levy Fair Housing Council of O.C. 201 S. Broadway Santa Ana, CA 92701 Barbara Resnick Western Dev. for Affordable Housing 112 E. Chapman Avenue Orange, CA 92867 ~yce Riley ,,earning Disabilities of Southern Calif P.O. Box 25772 Santa Ana, CA 92799 Jon Schlemmer St. Vincent de Paul Center for Reconciliation 2525 N. Gxand Avenue, #N Santa Ana, CA 92703 Orange County Homeless Issues Task Foro 1770 N. Broadway Santa Ana, CA 92706 Mary Atkinson Smith The Blind Children's Learning Center 18542-B Vanderlip Avenue `'~nta Ana, CA 92705 Sister Marie Therese Lestonnac Free Clinic 1215 E. Chapman Avenue Orange, CA 92869 Clyde Weinman Irvine Temporary Housing 6427 Oak Canyon Irvine, CA 92620 Randy Went Orange County Council 3590 Harbor Gateway North Costa Mesa, CA 92626 Carol Anne Williams Interval House P.O. Box 3356 Seal Beach, CA 90740 Iunter L. Johnson, President & CEO ,LNC Housing 110 Pine Street, Suite 500 Long Beach, CA 90802 Susan Stokes Turning Point Center for Families 2101 E. 4th Street, #150-B Santa Ana, CA 92705-3814 Lynne Tsuda Central Orange County YWCA 146 North Grand Street Orange, CA 92866 Karen Weisenberger Consumer Credit Counseling Service- P.O. Box 11330 Santa Ana, CA 92711 Thomas Whaling Shelter for the Homeless 24621 Ridgewood Circle Lake Forest, CA 92630 Bob Winandy Pilgrimage Family Therapy 27405 Puerta Beal, Suite 180 Mission Viejo, CA 92691'.-6314 Donald Taylor Veteran Charities of Orange County 201 S. Sullivan Street Santa Ana, CA 92704 Serving People in Need 151 Kahnus #H-2 Costa Mesa, CA 9262b 'Tim Wells Episcopal Service Alliance 1872 Drew Way Orange, CA 92859 Kimberlee White The Eli Home, Inc. 3128 E. Chapman Avenue Orange, CA 92869 OC Housing Providers Attn: Vickie Talley 25241 Paseo de Alicia #120 Laguna Hills, CA 92653 William O'Connell, Executive Director Rebecca F. Clark, President Colette's Children's Home National Community Renaissance 17301 Beach Blvd., Suite 24 9065 Haven Avenue, Suite i00 Huntington Beach, CA 92647 Rancho Cucamonga, CA 91730 Patrick McCabe, Project Manager Marsha Santry, Community Manager Ellizabeth Cobb, VP, Director of William Lyon Homes, Inc. Lennar Homes Development 4490 Von Karman Avenue- 25 Enterprise Tustin Legacy Community Partners Newport Beach, CA 92660 Aliso Viejo, CA 92656 c/o Shea Properties 130 Vantis, Suite 200 Aliso Viejo, CA 92656 Steve Kabel orange County Social Services Gina Martinez John Laing Homes Tustin Family Center Orange County Congregation 895 Dove Street, Suite 200 c/o Steven Johsz, Senior A&E Project Mgr. Community Organization (OCCCO) Newport Beach, CA 92660 Resources & Development Management 310 W. Broadwa y 1152 E. Fruit Street, Bldg. l Anaheim, CA 92$05 Santa Ana, CA 92701 Kathleen Maloney Maria I. Marquez Maury Ruano Mercy Charities Housing Interim Division Manager Mercy Housing 500 S. Main Street #110 Adult Mental Health Services 500 S. Main Street #110 Orange, CA 92868 405 West Fifth Street, Sui#e 550 Orange, CA 92868 Santa Ana, CA 92701 sandy Gibeaut Trinh LeCong, Executive Director Lynne Fishel, CEO :ommunity Housing Resources Affordable Housing Clearinghouse BIA Orange County Chapter ! X411 North Broadway 23861 El Toro Road #401 9 Executive Circle, Suite 100 Santa Ana, CA 92706 Lake Forest, CA 92630 Irvine, CA 92614 Bart G. Hess Jim Palmer, President Public Law Center Affordable Home Owners Alliance Orange County Rescue Mission 600 Civic Center Drive West 2 Park Plaza, Suifie 100 1 Hope Drive Santa Ana, CA 92701-4002 Irvine, CA 92614-5904 Tustin, CA 92782 f ~meless Issues Coordinator `~:ounty of Orange 10 Civic Center Plaza, 3rd Floor Santa Ana, CA 92701 Maya Dunne, Asst. Vice President SJHS Foundation & Community Outreach 500 S. Main St., Suite 1000 Orange, CA 92868 Margie Wakeham Families Forward 9221 Irvine Irvine, CA 92618 Kennedy Commission Attn: Linda Tang 17701 Cowan Avenue, Suite 200 Irvine, CA 92614 avid Levy 331 Browning #24 Tustin, CA 92780 Habitat for Humanity of Orange County 2200 S. Ritchey Street Santa Ana, CA 92705 Ronald M. Griffith Acting President & CEO Century Housing 11100 Corporate Pointe, Suite 200 Culver City, CA 90?30 Karen Roper, Director Captain Lee Lescano Orange County Housing/Community The Salvation Army Development Department 10200 Pioneer Road 1770 N. Broadway Tustin, CA 92780 Santa Ana, CA 92706 Dara Kovel, Associate Director Cynthia Campbell Mercy Charities Housing California Human Options, Inc. {DOVE Housing} 500 S. Main Street, Suite 110 PO Box 9376 Orange, CA 92868 Newport Beach, CA 92658 Joan B. Margot Sheri Barrios, Executive Director Orange Coast Interfaith Shelter Orange Coast Interfaith Shelter 635 Vista Bonita 1963 Wallace Avenue Newport Beach, CA 92660 Costa Mesa, CA 92627 Vickie Talley, Board Member Cesar Covarrubias Orange County Housing Providers Senior Project Manager 25241 Paseo de A]icia The Kennedy Commission Laguna Hi1Is, CA 92653 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Gerald W. Dingivan, President & CEO Lucy Dunn, President & CEO Southern California Presbyterian Homes Orange County Business Council 516 Burchett Street 2 Park Plaza, Suite 100 Glendale, CA 91203 Irvine, CA 92614 Scott Larson, Executive Director HomeAir_Orange county 17744 Sky Park Circle, Suite 170 Irvine, CA 92614 Community Action Partnership of Orange County 12640 Knott Street Garden Grove, CA 92841 Glenn Hayes, Executive Director Neighborhood Housing Services of Orange County 198 W. Lincoln Ave., grid Floor Anaheim, CA 92805 Affirmed Housing Group 13520 Evening Creek Dr. North, #360 San Diego, CA 92128 Appendix to Housing Element APPENDIX E REFERENCES Appendix to Housing Element 'his page intentionally left blank. Appendix to Housing Element REFERENCES A. Documents 1. 3.990 Census Report. U.S. Department of Commerce, Bureau of the Census. 2. 2000 Census Report. U.S. Department of Commerce, $ureau of the Census. 3. Comprehensive Housing Affordability Strategy for Fiscal Years 2007-2008 to 2017-2018, David Paul Rosen & Associates{DRA). 4. Marine Corps Air Station (MCAS) Tustin Specific Plan/Reuse,Plan, Adopted February 2003, Amendments through June 2007. 5. California State Department of Finance, 2007. 6. Demographic Profile and Survey of Homeless Persons Seeking Services in Orange County. The Research Committee. of the Orange County Homeless Issues Task Force, 3.999. 7. Southern California Association of Governments, Regional Housing Deeds Assessment, 2007. 8. City offiustin, Zoning Ordinance. 9 City of Tustin, General Plan, as amended January 1b, 2001. 10. `T'hird Five-Year Implementation Plan for The Town Center and South Central Redevelopment Project Areas (FY 2005-06 to 2009-2010), Tustin Community Redevelopment Agency, December 2004. 11. Final Environmental Impact Statement/Environmental Impact Report (EIS/ElR) for the Disposal and Reuse of MCAS-Tustin (Program EIS/EIR for MCAS-Tustin), January 16, 2001. 12. City Council Staff Report, 13. Response to Comments, Final Volume 2 and 3 of Final Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for the Disposal and Reuse of MCAS-~'ustin. Appendix to Housing Element 14. State of California, Department of Housing and Community Development, Website. B. Persons and Organizations Christine A. Shingleton, Assistant City Manager Tustin Community Redevelopment Agency (714) 573-3107 2. Elizabeth A. Binsack, Community Development Director Community Development Department, Tustin (714)573-3031 3. Douglas C. Holland, City Attorney Woodruff, Spradlin & Smart (714)564-2642 4. Jerry Craig, Redevelopment Program Manager Tustin Community Redevelopment Agency (714) 573-3121 5. Kimberly McAllen, Redevelopment Project Manager Tustin Community Redevelopment Agency (714) 573-3128 6. , Justina Willkam, Senior Planner Community Development Department, Tustin (714) 573-3115 7. Reina Kapadia, Assistant Planner Community Development Department, Tustin (714)573-3118 8. Lieutenant Steve Lewis Tustin Police Department (714) 573-3271 9. David Paul Rosen & Associates (DRA) Nora Lake-Brown, Principal 3941 Hendrix St. Irvine, California 92614 Appendix to Housing Element ld. Dawn Lee, Executive Director Orange County Partnership (714)288-4007 11. Robert Stiens '~ustin Community Foundation (714) 777-4f 53 12. Karen Roper, Homeless Prevention Coordinator Orange County Housing and Community Services Agency (HCS) :(714) 480-2841 Housing Element TUSTIN TECHNICAL MEMORANDUM May 2008 Final Draf t This page intentionally left blank. TABLE OF CONTENTS Section Page INTRODUCTION ................................................................................................................................1 STATE LAW AND GENERAL PLAN GUIDELINES 1 SOURCES OF INFORMA'T'ION b SUMMARY OF HOUSING ISSUES, NEEDS, OPPORTUNTTIES, AND CONSTRAINTS........ 7 HOUSING NEEDS ASSESSMENT .................................................................................................... 9 POPULATION/ EMPLOYMENT TRENDS 9 HOUSEHOLD CHARACTERISTICS 14 HOUSING STOCK CHARACTERISTICS 31 ASSISTED HOUSING PRESERVATION ANALYSTS 40 CONSTRAINTS TO THE DEVELOPMENT, IMPROVEMENT. AND MAINTENANCE OF HOUSING .............................................. `.......::........................................... 49 GOVERNMENTAL CONSTRAINTS 49 MARKET CONSTRAINTS 62 ENERGY CONSERVATION ....................:....................................................................................... 67 SUMMARY OF PREVIOUS HOUSING ELEMEN'T' PROGRAMS ............................................. 69 PROGRESS IN IMPLEMENTING THE 1989 GOALS AND OBJECTIVES 69 REVIEW OF PAST PERFORMANCE 70 APPENDICES: A. AFFDRDABILTTY GAP ANALYSIS B. REFERENCES C. MAJOR EMPLOYERS IN TUSTIN D. ORANGE COUNTY BUSINESS COUNCIL SCORECARD CITY GE TUSTIN - TECHNICAL ME1l10RANDUM HOUSING ELEMENT 2008 LIST OF TABLES Page TABLE HTM-1: Population Growth 2000-2007 City of Tustin, Surrounding Jurisdictions and Orange County 10 TABLE HTM- 2: Age Trends 1990 - 2000 11 TABLE HTM- 3: Race and Ethnicity: 1980, 1990, 2000 12 TABLE HTM- 4: Employment by Occupation 2000 13 TABLE HT'M- 5: Employment by Industry 2000 14 TALE HTM- 6: Household Type: 1990 - 2007 15 TABLE HTM- 7: Household Size 1990 Through 2007 15 TABLE HTM- 8: Households in Overcrowded Conditions 2006 17 TABLE HTM- 9: Median Household Income: Tustin and Surrounding Areas 2000 18 TABLE HTM-10: Household Income Distribution 19 TABLE HTM-11: Household Income Distribution by Household Tenure 20 Table HTM 11-A:, Household Income Distribution AS PERCENTAGE OF AMI by Household Tenure 21 TABLE HTM-12: Households Overpaying for Shelter 2006 City of Tustin 23 TABLE HTM-13: Household Size Distribution City of Tustin 25 TABLE HTM-14: Households with Five or More Persons 25 TABLE HTM-15: Summary Of Homeless Accommodation Zoning Regulations 29 TABLE HTM-16: Emergency Shelter/Transitional Housing Facilities 2008 30 TABLE HTM-17: Housing Growth Trends 1990 - 2007 Tustin and Surrounding Areas 31 TABLE HTM-18: Tustin Residential Unit Mix 1990 - 2007 32 TABLE HTM-19: Vacancy rates 2000-2007 32 TABLE HTM- 20: Tenure 1990 and 2000 33 TABLE HTM- 21: Age of Housing Stock ~ CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM ii 2008 TABLE HTM- 22: Resale Price of Homes and Condominiums Tustin and Neighboring Jurisdictions March 2008 TABLE HTM- 23: Affordable Monthly Housing Cost TABLE I-ITM- 24: Average Rental Rates TABLE HTM- 25: Affordable Net Rents TABLE HTM- 26: 2006-2014 Housing Needs TABLE I-JTM- 27: Assisted Units At Risk for Conversion TABLE HTM- 28: Assisted Housing Inventory TABLE HTM- 29: 2008 Fair Market Rents TABLE HTM- 30 Affordable Net Rents TABLE HTM- 31: Cost of Providing Rental Subsidy for Very'Low Income Households TABLE HTM- 32: General Plan Residential Land Use Categories TABLE HTM- 33: Summary of Residential Zoning Regulations City of Tustin TABLE HTM- 34: Comparative Development Fee Summary TABLE HTM- 35: Summary Table Effectiveness of Housing Element Programs: .1998-2008 TABLE HTM- 36: Effectiveness of`Housing Element Programs 1998 2008 TABLE HTM- 37: Progress Towards objectives 1998-2008 35 36 37 38 40 42 43 47 47 48 50 53 60 70 72 98 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM iii 2008 This page intentionally left blank. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM iv 2008 INTRODUCTION This memorandum is a reference document intended to provide background data that will serve as a partial basis for policies and programs in the Housing Element. In accordance with State law a significant amount of data is required in this memorandum. Where possible, the data has been summarised in graphic form stable, bar charts, and pie charts) for easy reference. The reader is urged to use the table of contents at the front of this document as a guide. Once the Housing Element has been completed, the Technical Memorandum will be incorporated therein. State law largely determines the content of this ``Technical Memorandum. Five sections follow the introduction. The Summary`` of Housing Issues, Conditions, Opportunities and Constraints provides an overview of the key issues facing the City, which are addressed by the Goals, policies and programs of the Housing Element. The Housing Needs Assessment section addresses housing needs. More specifically, it discusses how the population has grown and changed, how households are changing (i.e., size, composition), and how the housing supply is changing. This section also analyzes the potential loss of assisted lower income housing units in the City. The third section addresses governmental and non-governmental constraints, such as market condition, and natural environment, to housing development. The fourth section addresses energy conservation. Finally, the fifth section summarizes the housing issues, opportunities, and constraints that have emerged through background research and public meetings and which must be addressed in the Housing Element. STATE LAW AND GENERAL PLAN GUIDELINES The State of California provides very specific requirements and guidelines for preparing Housing Elements. This section describes those requirements and explains the relationship between this element and the rest of the General Plan. The State of California requires that earn jurisdiction prepare and adopt a Housing Element. The State Requirements for Housing Elements are far stricter and more detailed than for any other General Plan Element. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 1 2008 State Planning law requires local governments to review their housing elements as frequently as appropriate and to revise the elements as appropriate, not less than every five years. The fourth revision date for jurisdictions within the Southern California Association of Governments (SLAG) is June 30, 2008. The planning period for the Regional Housing Needs Assessment (1ZHNA) as prepared by SLAG, is from January 2006 to June 2014, an eight and one-half year period. The implementation period covered by this element is January 2406 to June 2014. By 2012, the City, along with other jurisdictions in the SCAG region, again will begin preparation for a revision of the housing element to cover the period from 2014-2019. Organization of the Housing Element Under the provisions of Section 65583 of the Government Code, the Housing Element shall generally consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled programs for the preservation,. unprovement, and development of housing. The Housing Element shall identify adequate sites for housing, including rental housing, factory-built housing, and mobile homes, and shall make adequate provision for the existing and projected needs of all economic segments of the community. More specifically, the Housing Element mustmeet the requirements outlined below. A. An assessment of` housing needs and an inventory of resources and constraints` relevant to meeting these needs. The assessment and inventory shall include the following: • Analysis of population and employment trends and documentation of the locality's existing and projected housing needs for all income levels. These existing and projected needs shall include the locality's share of the regional housing needs in accordance with Section 65584. • Analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. CITY OF' TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 2 2008 • An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. • Analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. • Analysis of potential and actual non-govemmental constraints upon the maintenance, improvement, development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. • Analysis of any special housing needs, such as those of the handicapped, elderly, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter. • Analysis of opportunities for energy conservation with respect to residential development. $. A statement of the community's goals, quantified objectives, and policies relative to the maintenance, improvement, and development of housing. It is recognized that the total housing needs identified pursuant to Section 65583(a) may exceed available resources and the community's ability to satisfy this need within the content of the general plan requirements. Under these circumstances, the quantified objectives need not be identical to the identified existing housing needs, but should establish the maximum number of housing units that can be constructed, rehabilitated, and conserved over alive-year time frame. C. A program which sets forth a schedule of actions over the implementation period that the local government is undertaking or intends to undertake in order to implement the policies and achieve the goals and objectives of the housing element through CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 3 2-008 the administration of land use development controls, provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. In order to make adequate provision for the housing needs of all economic segments of the community, the program will incorporate the following: • Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing, factory-built housing, mobile homes, emergency shelters and transitional housing in order to meet the community's housing goals. • Assist in the development of adequate housing to meet the needs of low- and moderate-income households. • Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. Conserve and improve the condition of the existing affordable housing stock. • Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, or color. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general-..plan elements and community goals. The local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. In addition, an amendment to housing element law (Chapter 1451, Statutes of 1989) requires all housing elements to include additional need analyses and programs to address the potential conversion of all Federal, State and locally assisted housing developments that are eligible to convert to market rate use during the next ten-year period. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 4 2008 Such units are considered to be "at risk" of being lost as part of the affordable housing stock. Relationship to Other General Plan Elements The preparation of the City's Housing Element must conform to Section 6558D of the California GovenUnent Code. The Legislature has established a policy that the availability' of housing in a suitable environment is of vital statewide importance, and a priority of the highest order. State policy requires local governments to address the housing needs of all economic segments, while considering the economic, environmental and fiscal.. factors and community goals set forth in the General Plan. While a city must consider housing needs for all economic segments, it must also maintain internal consistency among the various elements of the General Plan. Neither the Housing Element nor any other element may supersede any other required element of the Tustin `General Plan. The Housing Element relates to other elements in a variety of ways. The Land Use Element directly relates to the Housing Element by designating areas of the City in which a variety of residential types and densities may exist. Thee Housing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs, especially in the areas of the City with the highest density. The Circulation Element attempts to provide an efficient and well- balanced circulation system. This system must be designed to accommodate allowed land uses, including residential uses, and the intensity of allowable uses must not exceed the ultimate capacity of the circulation system. The Safety Element relates to the Housing Element by designating areas that are deemed unsafe for development, such as the Alquist- Priolo Zones and floodplains. Similar to the Safety Element, the Noise Element relates to the Housing Element by addressing a health related issue area. CITY OF TUS?'IN - DOUSING i'/~EIVIENT TECi`INICAL MEi110i2AN~UM 5 2008 Techniques for reducing noise often involve buffers between land uses to reduce noise. The Growth Management Element overlaps the issues raised in the Housing Element in its efforts to ensure that the planning, management, and implementation of traffic improvements and public facilities are adequate to meet the current and projected needs of Orange County. SOURCES OF INFORMATION A variety of sources were used to prepare this Technical Memorandum. The most recent source of population and housing counts is the State Department of Finance (DOF) population and housing estimates for January 2007. The population, household and employment statistics are taken from the 1990 and 2000 Census. More current estimates of population characteristics are provided by the Center for Demographic Research at California State University, Fullerton. In the absence of more recent data, extrapolations were made based upon 2000 Census data. The 2007 Southern California Association of Governments (SLAG) Regional Housing Needs Assessment (RHNA) provided information regazding existing needs and projections regarding future housing needs. Data regarding housing costs have been obtained from locale-newspapers, local developers, and financial institutions. Other data sources are listed in the Reference section of this document. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 6 2008 SUMMARY OF HOUSING ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS The following issues, needs, opportunities, and constraints have been identified in Tustin. ° Tenure. The City contains disproportionately large amounts of multi-family housing units, when compared to nearby jurisdictions and the County overall. ° Historic Resources. Tustin features numerous historic homes that add character and charm to the City but may be in need of ongoing maintenance and rehabilitation. ° Home Ownership Affordability Gap. Ownership housing costs are increasingly beyond the reach of the City's lower- and moderate-income households. ° Housing Condi#ion. Malty owner--..and renter-occupied units in the City need rehabilitation, including minor and major repairs. Landlords and owners of these units may need financial assistance in order to make necessary repairs. ° Units at Risk of Co~tversion to Market Rate. By State law, the City must document and develop programs to address 'affordable housing units in the City that are at risk of converting to market rate housing between 200&2018. For the 200E-2014 planning period, the regional Housing Needs Assessment indicates that there are 100 assisted units at risk of conversion to market rate housing. ° ,Large Households. Large households comprised approximately 15.2 percent of all Tustin households (owner and renter) in 2000. Large families and households are a population of concern due to both the difficulty of finding adequately sized housing units and the high costs associated with these larger units. ° Overcrowding. The average number of persons per unit in the City was 2.9 in 2007. The 2007 I~ iNA Housing Needs Assessment indicates that a total of 4,285, or 18%, of all households were suffering from overcrowding. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 7 2008 Overcrowding has increased significantly since 1990 in both owner- and renter-occupied units. Rental Affordability Gap. Based upon a review of rental units advertised in the Classified section of the local newspapers, it is difficult to find apartments in the City with more than two bedrooms, and those that are available are beyond the price range of low-income. households. Therefore, large families with low incomes (less than $26,000) would have difficulty finding affardable housing in Tustin. Housing Problems. According to the X007 Regional Housing Needs Assessment, the City had 3,935 lower income (household income less than 80% of County median) households overpayir-g (paying` more than 30% of their income) for housing. This represents about 16 percent of the City's households. ° Elderly. As the City's population ages, the number of elderly persons will increase. This underscores an increasing need to address the special housing needs of the elderly. ° Age of Housing Stoek. Even though the City's housing stock is relatively young and in good condition, by year 2010, 68 percent of the City's housing stock will be over 30 years old- . the age at which housing typically begins to require major repairs. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 8 2008 HOUSING NEEDS ASSESSMENT Since the 19bOs, the City's population has soared from about 2,000 persons to 74,218 in 2008. Thus, the vast majority of the City's housing stock has been constructed within the last SO years. Unlike most of Orange County, where half of the housing stock consists of single- family detached homes, nearly two-thirds of Tustin's housing stock is multi-family or single-family attached (i.e., condominiums/townhouses). Tustin also has a proportionately higher percentage of renters compared to Orange County as a whole. - Over the last two decades, the City's population has-been impacted by many of the same trends observed regionally: a substantial increase in minority populations, especially Latinos; an increase in the average size of households; and, a surge in housing costs. As the City continues to grow and change, its housing policies must be re-examined in light of these changes. This chapter examines the important demographic changes that have occurred in the City since 2000 that affect housing needs. The chapter includes four main sections: population/employment trends, household characteristics, housing characteristics, and. assisted housing preservation. The Population/ Employment Trends section analyzes how the population has grown and explores resident employment patterns. The Household Characteristics section looks at changes in household size and composition, examines income and overcrowding, and evaluates housing affordability and special housing needs groups. The Housing Stock Characteristics section examines changes in the housing stock, particularly the number of units, condition, and type. The fourth' section concerning assisted housing preservation responds to State legislation that requires local jurisdictions to prepare an inventory and implement programs to promote the preservation and/or replacement of government-assisted lower- income housing. POPULATION/EMPLOYMENT TRENDS This section examines population growth, age characteristics, racial/ethnic composition, and employment characteristics of Tustin's population. CITY OF TRSTIN - HORSING ELD11~lENT TDCHNICAL MD1-gORANDUM 9 2008 Population Growth As shown in Table HTM-1, between 2000 and 2007 the City's population grew from 67,504 to 72,542, an increase of 7.5%. The City of Tustin's growth rate between 2000 and 2007 was slightly slower than the countywide growth rate but faster than most surrounding cities. Recent projections cited in the Comprehensive Affordable Housing Strategy 2008-2018, indicate that:. Tustin's population will increase by an annual rate of approximately 2.6% during this implementation period, bringing the total population to 86,621 by the year 2015. Table HTM-1 compares the City's growth rate between 2000 and 2007 with other Orange County cities and the County as a whole. A large percentage of Tustin's population growth can be attributed to annexations that have occurred since 1980. The remainder can be attributed to a variety of other factors, including shifts in family structures from smaller to larger families, redevelopment of existing developed areas, infill development, and new residential construction in East `Tustin. Substantial population and housing growth will continue during this planning period with the continued development at Tustin Legacy (former Marine Corps Air Station [MCAS] Tustin). TABLE HTM-1 POPULATION GROWTH 200(3-2007 QTY OF TUSTIN, SURROUNDING JURISDICTIONS AND ORANGE COUNTY Growth urisdiction 2000' 2007 ~ Z000-07 Tustin 67,504 72,542 7.5% Anaheim 328,014 345,556 5.3% Garden Grove 165,196 172,781 4.6% Irvine 143,072 202,079 41.2% Santa Ana 337,977 353,428 4.6% Oran e Coun 2,846,289 3,100,313 8.9°~ ~ 2000 U.S. Census... s Depaztment of Finance estimates, 2007 Population projections are shown in Table HTM-1a. According to Orange County Projections (OCP) 2006 data, the population in the CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 10 2008 City of Tustin is expected to increase by approximately 10 percent to 88,094 persons by the year 2025. Table HTM-1a Population Projection 2010 ?015 2020 2025 Percent Change ~~mo-zozs~ Tustin 80,728 86,621 88,245 88,694 103'° Source: CJC:P 2006 Age Characteristics Table HTM-2 shows the proportions of the City's population represented by age groups in 1990 and 2000. The table shows that the proportions of the population in each age group have remained fairly constant over time. TABLE HTM- 2 AGE 'I'REIITDS 1990 - 2000 CITY OF TUSTiN A e Grou 1990 % Total 2000 % Total 0-4 ; 4,464 8.8°,6 5,815 8.6°,6 5-14. 5,916 11.7°,6 9,916 14.7°~ 15-24 9,127 18.0°,6 8,685 12.8% 25-34 12,254 24.2% 13,798 20.4°~ 35-54 11,898 23.5°,6 19,710 29.2% 55-64 3,187 6.3 % 4,776 7.1 °~ 65-74 2,292 4.5°k 2,745 4.1°,6 75+ 1,551 3.1 °~ 2,059 3.1 Total 50,689 100.0% 67,504 100.0°,6 Sources: u.5 tsureau of Census, 1(XXJ; tenter for Uemo~ra~hic Research (CDR), 2001. Race and Ethnicity The City's. racial and ethnic composition has changed significantly since 1980. The trends experienced in the 1990's have continued through the early 2000's, though at a less rapid rate. As shown in Table HTM-3, minority populations in the City have grown CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMOI?ANDUM 11 2008 significantly. The Hispanic population has increased from about 20% of the total population in 1990 to about 34°k in 2000. Asian/Pacific Islanders and Blacks comprised about 15.1% and 2.6% of the population in 2000, respectively. These shifts in racial and ethnic composition may have important implications in terms of household characteristics and income. For example, Hispanic households are typically larger than other households; therefore, an increase in the number of Hispanic households may indicate a need for larger housing units. Also, to the extent that minority populations tend to have lower incomes than their Caucasian counterparts, there .may be a greater need for affordable housing for these groups:'`' TABLE HTM- 3 RACE AND ETHNICTTY:1980,1990, 2000 `,, CITY OF TUSTIN 1980 ~ 1990 z 2000 a Race and Ethnicity po elation % Total Po elation Total Po elation Total s White 31,654 87.6°w 37,127 73.2°~ 30,264 44.8% Black 957 2,6% 2,895 5.7°,6 1,785 2.6% American Indian 237 0.7°~ 274 0.5% N A N/A Asian/Pacific Islander Other 1,683 1,588 4.7% 4.4% 5,260 5,133 10.4% 10.1°h 10,194 2,151 15.1% 3.2% His anic a (3,085) (8.5°~) (10,508) (20.7°~) 23,110 34.2°,6 Total:' 36,119 1(10°~ 50,689 100% 67,504 100°~ ~ 1.980 Census ~ 1990 Census ~ 2000 Census + The: Census contains a separate question related to whether the householder was of Spanish/Hispanic "origin". Origin is defined as the ancestry, nationality group, lineage, or country in which the person s ancestors were tom prior to their arrival to the United States. Persons of Spanish origin could be of any of the five racial categories. s Center for Demographic Research, 2000. CDR reported the Hispanic population for 1998 as a distinct ethnic group. It also reported Asian and Pacific Islander as one group, and included American Indian within "Other' category. Employment According to 2000 Census data, the City of Tustin had 36,681 residents in the labor force, of which 34,906 (95.2%) were in the labor market. Of these, 79.3% were private wages and salary workers. Table HTM-4 shows the number of employees by occupation. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 12 2008 Irt 2000, the largest occupational category was professional and related occupations, in which a total of 7,467 were employed. The second largest category was the management, business, and financial operations occupations, employing b,b57. TABLE HTM- 4 EMPLOYMENT BY OCCUPATION 2000 CITY OF TUSTIN Occu ational Cate o Number Management, business, and financial operations Deco ations 6657 19.19'° Professional and related Deco ations 7,457 21.4°,6 Healthcare su rt Deco ations 506 1.4°,6 Protective service orcu ations 432 1.2°k Food re aration and servin related Deco ations 1,502 4.3°~ Building and grounds cleaning and maintenance Deco ations 1,186 3.4°k Personal care and service oc ations 957 2.7% Sales and related Deco ations 4,278 123°k Office and administrative su rt Deco ations 6,040 17.3% Farmin fishin and forestry Deco ations 33 0.1 Construction and extraction otxu ations 1,222 3.5% Installation, maintienance, and re air Deco ations 735 2.1 Production Deco tions 2,689 7.7°~ Trans station and material movin Deco ations 1,202 3.4% Total 34,906 100.0°k Source: 2000 Census In terms of industry, the manufacturing, and educational, health and social service sectors employed the largest number of persons with 5,980 (17.1%) and 5,081 (14.6%) employees, respectively. Table HTM- 5 is a summary of the number of employees by industry. Due to its favorable location, demographics, and business environment, Tustin is home to several well known employers. Appendix C lists major employers in the City of Tustin. The City's top ten employers include: Tustin Unified School District, AT&T, Ricoh IIectronics, Inc., Rockwell Collins, Cherokee International, ADC Telecommunications, Balboa Instruments, Toshiba America Medical Systems, the City of Tustin, and Cosfico Wholesale. CITY OF TUSTIN - HOUSING ELED2ENT TECHNICAL MEMORANDUM 13 2008 TABLE HTM- 5 EMPLOYMENT BY INDUSTRY 2000 CITY OF TUST IN Indus Number A 'culture 774 1.9°~ Minin 4 .Ol °k Construction 2,437 6.1 °~ Manufacturin non-durable oods 1,890 4.7°k Manufacturin durable oods 5,919 14.8% Trans ortation and ublic utilities 1,174 2.9% Wholesale trade 3,645 9.1°,6 Retail trade 6,851 17.1 Finance, insurance, and real estate 3,555" 8.9% Services 9,571 23.9% Government 1,761 4.4°,6 Self Em to ed 2,526 6.3°~ TOTAL 40,107 100.0% Source: OCP 2006 HOUSEHOLD CHARACTERISTICS This section addresses household composition, size, overcrowding, income, affordability, and special needs groups. Definitions The Census Bureau uses several terms with respect to housing which are important to understand. A housing unit is defined as a house, apartment, mobile home or trailer, group of rooms, or single room occupied or intended for occupancy as separate living quarters. A household is an occupied housing unit. Households are further broken down into family households and non family households. A family household is a household shared by two or more persons related by birth, marriage or adoption. Anon-family household is one consisting of a single individual or unrelated persons living together. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 14 2008 Household Composition According to the U.S. Census, the City of Tustin contained 23,831 households in 2000. California Department of Finance estimates show that the number of households grew to 24,787 in 2007, representing an increase of approximately 4%. TABLE HTM- 6 " HOUSEHOLD TYPE: 1990 - 2007 CITY OF TUSTIN 1990 ~ 2000 s 20073 Household Type No. of Households % of Total No. of Households % of Total No. of Households % of Total Famil 12,317 67.2% 16,055 67.4°,6 ° N A N A Non-Famil 6,015 32.8°~6 7,776 32.6°~6 N 'A N A Total 18,332 100°k 23,831 100% 24,787 100°,6 ' U.S. Dept of Commerce, Bureau of the Census, 1490 Census. 2 U.S. Dept of Commerce, Bureau of the Census, 2000 C~sus 3 Total populations based on Department of Finance estimates, January 2007 Table HTM-6 shows that 12,317, or about b7%, of the City's households were classified as family households in 1990. The percentage of households remained the same in 20b0. Moreover, as shown in Table H'I'M-7, the average household size in Tustin has increased from 2.66 persons per household in 1990 to an estimated 2.82 persons per household in 2000 and 2.91 persons per household in 2007. This increase may be attribu~#ed to a variety of factors, including: more doubling-up, or sharing, of units in order to defray increased housing costs; and, an increase in the supply of larger units, especially new units in fast Tustin and Tustin Legacy. TABLE HTM- 7 HOUSEHOLD SIZE 1990 THROUGH 2007 CITY OF TUSTIN Jurisdiction 1990 ~ 2000 2 2007 3 Tustin 2.66 2.82 2.91 Oran e Coun 2.87 3.00 3.09 ' U.S. Dept. of Commerce, Bureau of the Census,1990~ensus Report 2 US. Dept of Commerce, Bureau of the Census, 2000 Census Report 3 California Department of Finance (DOF), 2007 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORAIVEUM I S 2008 Overcrowding HUD defines overcrowding as more than one person per room, excluding bathrooms and kitchens. For example, aone-bedroom apartment with living room, kitchen, and bathroom would be considered overcrowded if more than two persons occupied it. The 2007 Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SLAG) figures showed 4,285 (17 percent) households.- living in overcrowded conditions. Of the households living in such conditions, 81 % were renters, of which 40 % were Extremely-Low ` or Very-Low income households. Table HTM-8 illustrates the numbers of all Tustin households living in overcrowded conditions. According to the 2007 RHNA, the incidence of overcrowding in Tustin was high in 2006, at 4,285 households, or 18.0 percent of all households. Renter. households had a significantly higher incidence of overcrowding than owner households: 28.9 percent of renter and 6.9 percent of owner households were overcrowded. Table HTM-8 shows the number and' percentage of Tustin households by income categories that are overcrowded. It should be noted that there are no federal or California State legal standards for overcrowding. In a reasonable effort to allocate scarce financial resources for affordable housing, housing programs typically use occupancy standards, which allow for up to "two persons per bedroom plus one (e.g., five persons in atwo-bedroom unit). The California Health ,and Safety Code standard, applicable for housing receiving financial assistance from the Redevelopment Housing Set-Aside Fund, is one person per bedroom plus one (e.g., three persons in atwo-bedroom unit). Overcrowding is often reflective of one of three conditions: l) either a family or household is living in too small a dwelling; 2) a family chooses to house extended family members (i.e., grandparents or grown children and their families living with parents, termed doubling); or 3) a family is renting living space to non-family members. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 16 2008 ~o ~o N a~ W~ 5W xA N Q z 0 u „oz ~~~ p H aU0 >~ .p U z a O x w a o x s z v w O O s m '~ ¢~ ~I c~ Q OU U EWE Income Household income is an important determinant of housing affordability. While upper income households have more discretionary income to spend on housing, low and moderate income households are more limited in the range of housing they can afford. The presence of a large number of low< and moderate income households in a region where housing;, costs' are high is likely to result in many households paying more than they can afford for housing. According to the 2000 Census, the median household income for the City of Tustin was $55,985. Table HTM-9 compares median household and family incomes between the City. of Tustin and nearby jurisdictions, counties, and the State of California. Iri 2000, the City's median household income was about 5 % lower than the median household' income for the County as a whole ($58,820). Table HTM-9 demonstrates .That at $60,092, Tustin's 2000 median family income was also below the Orange County median ($64,611). This trend was consistent as well for median family income in the above- mentioned juurisdictions. TABLE HTM- 9 MEDIAN HOUSEHOLD INCOME: TUSTIN AND SURROUNDING ARRAS 2(100 risdiction Median Household Income Percent AboveJBelow County Median Median Family Income Percent Above/Below County Median Tustin $55,895 -5.2% $60,092 -7.5% Anaheim $47,122 -24.8°,6 $49,969 -29.3°,6 Garden Grove $47,754 -23.2°~6 $49,697 -30.0% Irvine..,. $72,057 18.4% $85,624 24.5°k ~~ Ana $43,412 -35.5% $41,050 -57.4% Oran e Coun $58,820 - $64,611 State of California $47,493 -23.8°~ $53,025 -10.9% Source: U.S. Department of Commerce, tsureau or ~.ensus, ~w~ As shown in Table HTM 10, an estimated 7.5 percent of Tustin's households had incomes of less than $15,000 in the year 2000. Another 18.9 percent had incomes of between $15,000 and $34,999. In addition, 38.9 percent had incomes between $35,000 and $74,999, and 34.7 percent had incomes of $75,000 or more. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 18 2008 TABLE HTM-10 HOUSEHOLD INCOME DISTRIBUTION CITY OF TUSTIN 2000 Income Ranfe # Households) % Households % Cumulative Less than $14,999 1,787 7.5% 7.5°,6 $15,000 to $24,999 2,026 8.5°~ 16.0°,6 $25,000 to $34,999 2,479 i0.4°~ 26.4% $35,000 to $49,999 4,194 17.6°,6 44.0°k $50,000 to $74,999 5,076 21.3% 65.3% $75,000 to $99,999 3,193 13.4% 78.7°~ More than $100,000 5,076.. 21.3% 100.0°~ TOTAL 23,831 100.0°,6 Median Household Income, $55,985 City of Tustin Median Household Income, $58,820 Orange County Derived by applying the percentage of households b3 P-52 (total number of households shown as 23,853) to from Summary File 1, Table H-3 for consistency with households used in this report. income level from Summary File 3, Table a total of 23,831 occupied households ether Census data on the number of SOURCE: 2000 U.S. Census; Comprehensive Affordable Housing Strategy, 2008-2x18. Owner households had higher incomes than did renter households in 2000, as shown in HTM-11'''` Approximately 37 percent of the renter households earned less than $35,000 annually, compared to only 16 percent of owner households. Furthermore, 60.7 percent of renters earned less than $50,000 in 2000, compared to only 27 percent of owners. While a higher proportion of renter households (22.1 percent) than owner households (20.7 percent) earned between $50,000 and $74,999, only 17.2 percent of renter households had incomes of more than $75,000 annually, compared to 52.3 percent of owner households. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORAiVDUM 19 2008 TABLE HTM-11 HOUSEHOLD INCOME DISTRIBUTION BY HOUSEHOLD TENURE CITY OF TUSTIN 2000 Tenure/Income Range Numbers Percent Cumulative RENTER HOUSEHOLDS Less Than $10,000 720 6.0°~ 6.0% $10,000 to $19,999 .1,140 9.5°k 15.5°~ $20,000 to $34,999 2,568 21.4°~ 36.9°,6 $35,000 to $49,999 2,857 23.8°0 60.7% $50,000 to $74,999 2,653 22.1% 82.8°h $75,000 to $99,999 1,308 10.9°~ 93.7°k $100,000 or More 756 6.3°k 100.0°~ Total Renters 12,002 100.0% OWNER HOUSEHOLDS Less. Than $10,000 24b 2.1 °~ 2.1 $10,000 to $19,999. 537 4.5°k 6.6% $20,000 to $34,999 1,110 9.4°,6 16.0% $35,000 to $49,999 1,301 11.0% 27.0°k $50,000 to $74,999 2,442 20.7% 47.7% $75,000 to $99,999 1,894 16.0°~ 63.7°,6 $100,000 to $149,999 2,581 21.8% 85.5% $150,000 or More 1,718 14.5°~ 100.0°,6 Total Owners 11,829 100.0% 1 Derived by applying the percentage of household tenure by household income fntm Summary File 3, Table HCTIl (total number of renter households shown as 11;993 and owner households as 11,845) to a total of 12,002 occupied renter and 11,829 occupied owner households from Summary File 1, Table H-3 for consistency with other Census data on the number of households used in this report Sources: 2000 U.S. Census; Comprehensive Affordable Housing Strategy, 2008- 2018. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 20 2008 Table I-ITM-11-A shows Tustin's household income distribution as percentage of area median income (AMI) by household tenure in 2006, according to the 2007 SLAG ~I-I1VA. Owner households in Tustin continued to have higher incomes than renter households in 2006. While over half (52.4 percent) of Tustin's renter households earned 80 percent of Area Median Income (AMI) or below, only 22.4 percent of owner households fell .into this income category. A majority of owner households (70.1 percent) and only 33.7 percent of renter households earned over 95 percent of AMI. TABLE HTM 11-A HOUSEHOLD INCOME DISTRIBUTION AS PERCENTAGE OF AMI BY' HOUSEHOLD TENURE CITY 50 - 80 percent AMI 2,780 ~ 23.2% 52.4% 80 - 95 percent AMI 1,670 13.9% 66.3% Over 95 percent AMI 4,040 33.7% 100.0°,6 Tenure/Incomae Range, Number Percent Cumulative as,percentage of AMI RENTER HOUSEHOLDS Below 30 percent AMI 1,585 13.2°,6 13.2°,6 30 - SO percent AMI 1,910 16.0°,6 29.2% Total Renters 11,985 100.0% OWNER HOUSEHOLDS Below 30 percent AMI 525 4.4°k 4.4°~ 30 - 50 percent AMI 760 6.4°~ 10.8°,6 50 - 80 percent AMI 1,370 11.6% 22.4% 80-,- 95 percent AMI 885 7.5°,6 29.9°~ .Over 95 percent AMI 8,315 70.1 % 100.0°,6 Total Owners 11,855 100.0% AMI =Area Median Income Source: Southern California Association of Governments, 2007 RHNA CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 21 2008 Housing Affordability The U. S. Department of Housing and Urban Development (HUD) defines the threshold of overpayment for housing as 30% or more of household income. That is, when households pay more than 30% of their income for housing, they have insufficient remaining funds for other necessities such as food, clothing, utilities and health care. HUD recognizes, however, that upper income households are generally capable of paying a larger'proportion of their income for housing, and therefore estimates of `housing overpayment generally focus on lower income groupsi. The 2007 12HNA identifies housing overpayment for lower-income households based on income data from the 2000 Census. Lower- income households are those earning less than 80% of the County median income. Lower-income households include very-low-income (<50% of median) and low- income (51%-80% of median) groups. Table HTM-12 reflects SCAG's 2007 report, which estimates that 6,190 of Tustin households are overpaying for housing of which 3,935 or 64% are very low and low-income households. Among the overpaying lower income households, about 30% were extremely low income, 31°,~ were very low income, and 39% were iow-income households. Table HTM-12 also distinguishes between owner and renter households overpaying for housing. This distinction is important because while homeowners may over-extend themselves financially to afford the option of home purchase, the owner maintains the option to sell at market rate; on the other hand, renters are limited to the rental market and are generally required to pay the rent established in that market. The table shows that among the lower income households in the City overpaying for housing, 2,660 or 68% were renters. ~ Some agencies and organizations consider Moderate Income households to be overpaying when housing costs exceed 35 percent of gross income, with the maximum income representing 110°,6 of the median county income. Under these assumptions, overpayment occurs in fewer households in the City of Tustin when compared to figures presented in this document that are based upon State and Federal standards. Source: Strategies for Planning and Development: California Affordable Housing Handbook, California Redevelopment Association, 2000. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 22 2008 TABLE HTM-12 HOUSEHOLDS OVERPAYING FOR SHELTER 2006 CITY OF TUSTIN Extremel Low Ve Low Low Moderate & Above Total Total All Tenure Over a Total Over a Total Over a Total Over a Total Overpay Households Owner 340 525 350 760 585 1,370 1,835 9,200 3,110 11,855 Renter 855 1,585 865 1,910 940 2,780 420 5,710'' 3,080 11,985 Total 1,195 2,110 1,215 2,670 1,525 4,150 2,255> 14,910 6,190 23,840 Source: SCAG RHNA, 2006. Special Needs State I-lousing Law requires that the special needs of certain disadvantaged groups be addressed. The needs of the elderly, disabled, large families, female heads of household, the homeless and farm workers are important in relation to overall community health. These groups . may maintain special needs related to housing construction and location. The Elderly. As noted previously (Table HTM-2), in 2000, 4,804 persons or 7.1 °,~ of the total population in Tustin were ~65 years of age or older. in addition, senior households represented 12.3 percent (2,256} of total households in Tustin. As noted earlier in Table HTM- 11, slightly more than one-quarter of this age group earns an annual income of less than $20,000, or about 36% of the area median income (AMl) for a household of two persons in 2000. Although the senior population may often be living in asingle-family home too large for their needs, with little or no mortgage payment, selling the home and buying a smaller unit may be too expensive. Thus, this population needs housing that is both affordable and located in close proximity to public services and transportation. 'The Disabled: i'hysical handicaps can hinder access to housing units of traditional design as well as limit an individual's ability to earn an adequate income. According to the 2000 U.S. Census, a total of 7,610 persons between 16 and 65 years of age reported a disability. In addition, 1,795 persons over age '65 reported a disability in 2000. Disabled persons often require specially designed dwelling units to permit access not only within the dwelling unit, but also to and from the unit. Special modifications to permit free access are very important in maintaining independence and dignity. California CITY Off' TUSTIN HOUSING ELEMENT TECHNICAL MEMORAiVDUM 23 2008 Administrative Code Title 24 Requirements set forth access and adaptability requirements for the physically disabled. These regulations apply to public buildings such as motels, and require that ramp ways, door widths, restroom modifications, etc., be designed to enable free access to the handicapped. While such standazds do not apply to new single-family residential construction, they do apply to new multi-family residential construction. Most existing housing units in Tustin have not been designed with consideration for these requirements. of adaptability and access. The majority of housing units are either single-family or two-story apaztments with no elevator access. The adaptability of units to meet the needs of disabled persons remains a challenge for Tustin and other communities. However, as additional housing units aze provided in the Tustin" Legacy azea, accessibility is considered as pazt of a project's design as required by law. Additionally, as units in multiple-family areas are rehabilitated, units may be retrofitted to accommodate the handicapped. New construction may offer some relief because the mandatory requirements are evenly ..applied to all projects. According to the California Building Code,`''apartment projects of 20 units or more in size require accessibility and adaptability in at least three units, and condominiums projects in at least four units. The use of mixed development types and higher density limits at Tustin Legacy azea will further require development of even more handicapped- accessi~le units. Large Families: Under Census guidelines, a family household .containing five or more persons is considered a large family. Large family households generally require larger dwelling units with more bedrooms to meet their housing needs. But family households with five or more persons often face lurutations in being below national poverty levels, and often experience difficulty securing adequate housing suitable for their expanded needs. Thus, large families typically suffer disproportionately from both overcrowding and inability to pay. Moreover, because multifamily rental units aze typically smaller than single-family units, lazger families who aze also renters face more difficulties in securing housing lazge enough to accommodate all members of the household. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 24 2008 Table 14 Per Net Square Foot Hard Construction Cost Assumptions by Prototype City of Tustin zoos Prototype Hard Construction Cost Per Average Site improvement Net SF Buildin Area Cosf Per Net SF Site Area Owner ~'1 $95 $25 Attached Townhome Owner #2 $85 $20 Stacked Flat Condominiums Owner #3 ~ $i 95 $30 High Density Condominiums Owner #4 $155 $~0 Mixed Use Condominiums EZenter #t $l55 $24 Stacked flat Apartments Source: D1tA interv~ws of Tustin area developers. 4.6 Estimated Total Prototype Development Costs Total development costs, as defined for the purposes of this report, equal the sum of the hard costs, site improvement costs, soft costs, sales/marketing costs, financing costs, general conditions, developer overhead and profit. Hard costs include building and parking construction costs. Soft costs include architectural and engineering costs, pr rty taxes and insurance. General conditions include items such as the trailer, uti hies, security, supervision and material storage, if any, associated with the job site. Developer overhead and profit refers to the fee the developer charges for constructing the project, including the administration costs and the developer's profit. Minimum developer profit is estimated at l2% of tots) development costs, based on flRA experience and input from developers and the Building Industry Association. This level is considered a baseline profit or "hurdle rate," representing the minimum necessary for tfie City of Tustin Affordability Gap and Leveraged financing Analysis Page ?5 deal to proceed. Developer overhead is estimated at 4% of total development costs. Developer overhead cost line items typically represent a larger percentage of costs on small projects than larger projects. For market rate owner housingg,, developer profit is typically measured as a percentage of gross sales revenues (typpically 7 - ~9 percent), rather than total development cost. However, this measure dies not work well with affordable homebuyer units, where the affordable purchase price is often well below total development cost. In DRA's extensive experience with first-time homebuyer programs throughout California, developer profit and overhead for affordable homebuyer developments is typically measured as a percentage of total development cost, usually around 15%. For market rate rental housing, developer return is commonly measured using a discounted cash flow analysis, which takes into account the annual net cash flow and the. ultimate sales proceeds to the project developer/owner over the term of ownership. However, the net cash flow and sale value from affordable rental units is severely constrained by the restrictions on rents. For affordable rental housing, the return to the developer typically comes in the form of a developer fee, which is calculated .as a percentage of total development cost For example, the Low Income Housing Tax Credit program used to subsidize affordable rental housing limits developer profit and overhead to 15% of total development cost. Total development costs for the prototypes are presented in Table 15 for the owner prototypes and Table 16 for the renter prototype. The key development cost assumptions used in the analysis are specified in Table 17 and Table 18, referenced below. S.0 ~ Operating and Financing Cost Assumptions 5.1 General Operating Costs, Rental Prototype Annual operating costs are estimated at ~3,b00 per unit for the gap analysis, excluding property taxes and reserves, based on interviews with local apartment owners and property managers and DItA experience with rental housing developments throughout Southern California. DRA assumes annual property taxes at 1.20 percent of estimated total development costs. A vacancy allowance of 3°r6 for affordable units is deducted from rental income to compensate for the landlord's potential loss of rental income when units become unoccupied, particularly when tenants move before a new tenant is found. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 26 Table 15 Estimated Prototype Development Costs Owner Housing Prototypes City of Tustin 2008 Owner 1 Owner 2 Owner 3 Owner 4 Attached Stacked Flat High Density Minced Use, Townhome Condominium Condominium Ground Floor Gross Site Area in Acres 13.000 13.000 8.000 O fi89 No. of Units Parking Spaces 234 325 400 . 2p Net Square Feet Living Area 527 303,300 732 371,250 800 540,000 50 30 300 Community Space SF 2,500 2,000 p , 0 Total Net Square Feet Residential 305,800 373,250 540,000 30 300 Percent Residential Total Gross SF Bldg. Area 100% 305,800 100% 373 250 10096 540 000 , 669'0 45 , , ,909 Land Acquisition Costs 525,482,600 524,350,040 520,908,800 51 188 000 Site Improvements 514,157,000 511,325,600 510,454,400 , , ;396 000 Building/Pdrking Hard Costs 529,051,000 531,726,250 51 05,300,000 , 54 696 500 Hard Cost Contingency 52,160,400 52,152,593 . 55,787,720 , , 5254 625 ArchlEngJConstr. Supervision 51,296,240 51,291,556 53,472,632 , 5152 775 City Development Impact/Processirig Fees 57,404,546 59,514,995 515,937,526 , 5750 609 Construction Loan Fees 5919,647 5928,754 51,859,558 , 5106 483 Construction In#erest 56,644,448 56,710,244 511,457,346 , 52 516 665 Environments! Phase ! 57,500 57,500 57,500 , , 57 500 SoilsTesting 540,000 540,000 540,000 , 520 000 Property Taxes 5259,248 5258,311 5694,526 , 530 555 Insurance Sales Commissions 51,296,240 51,081,937 51,291,556 51,092,651 53,472,632 52,187,715 , 5152,775 5125 274 Selling/Closing Costs $5,409,687 55,463,256 510,938,576 , 5626 371 Developer C-verF~ad 54,327,750. 54,370,605 58,750,861 , ~ 5501 097 Developer Profit 58,655,499 - 58,741,209 517,501,721 , 51,002,194 TOTAL PRO}ECT C05T 5108,193,743 5109,265,118 5218,771,513 S12,S27 424 PER UNIT 5462,366 5336,200 5546,929 , 5626 371 PER NfT SF 5353.81 5292.74 540,.13 , 5413.45 TOTAL COST, EXCLUDING LAND - 582,711,143 584,915,078 5197,862,713 511,339 424 PER UNIT 5353,466 5261,277 5494,657 , 5566 971 PER NET SF 5270.47 5227.50 5366.41 , 5374.24 City of Tustin Affordability Gap and Le~aged Financing Analysis Page 27 Table 16 Estimated Prototype Development Costs Rental Housing Prototype: Stacked Flat Apartments City of Tustin 20x8 Renter Prototype Stalked Flat Apartments Acres 13.000 Number of Units ~ 325 Parking maces 731 Net Square Feet Living Area 319,150 Total Net Square Feet 319,150 Ratio Net/Gross SF 10096 Total Gn~ss Square Feet Building Area 319,150 ' Land Acquisition 524,350,040 Site Improvements 511,325,600 ' ... .......... Building/Parking Hard Costs .. . - ;49,468,250 Hard Coat Contingency 53,039,b93 ArchicxecturPJEngine~ing/Constr. Supervision X4,255,570 Development Impact and Processing Fees 58,315,308 ALTA Survey 53,000 ' Environmental Phase I $7,500 Soils Testing 510,000 Construction Loan Fees 545b,Ob5 Construdion/Lease-Up Interest S3,095,367 property Insurance Sb07,939 property Taxes During Construction 5364,763 . ConstruWon Loan Title and Closing 535,000 Appraisal Fees 510,000 Market StudylConsulting $30,000 525,000 Marlceting/Lease~Up/Start-Up S100,000 Developer Overhead 54,794,504 Developer Profit 59,589,008 Total Project Costs 5119,862,606 Tatal Cost Per Unit 5368,808 Total Cost P+er Net Square foot 5375.57 TOTAL COSTS, WITHOUT LAND 595,512,566 TOTAL COST PER UNIT 5293,885 TOTAL COST PER SQUARE FOOT 5299.27 Source: David Paul Rosen & Associates Cky of Tustin Page 28 Affordability Gap and Leveraged FlnancingMalysls 5.2 Financing Costs Financing costs vary according ~ the amount of equity invested, the term of the loan, the annual interest rate, and, in the case of ownership projects, mortgage insurance rates. For the purposes of this gap analysis, the amount of the first mortgage for the rental prototype is assumed to be the amortized debt that may be supported by tenant net affordable rents. The balarice of project financing is the affordability cost or gap. Loan pricing is typically pegged to the LIBOR plus a spread that varies depending on the lender, the creditworthiness of the borrower, and financial market conditions. The LIBOR is currently at anear-historical low of 3.14%. Because this analysis is part of a 5-year plan, we assume a construction loan interest rate of 8.5% and a permanent loan interest rate of 8.0% to account for potential future rate increases during the planning period. With the renter prototype, we assume a conventional construction loan during construction. The construction loan is calculated based on a loan-to-cost ratio of 75°~ and an average loan balance of 60%. DRA has assumed an 8.5%.construction interest. rate and a 1.0% construction loan fee. The construction and lease-up period is assumed at 15 months for the renter prototype. We use an 8.0% permanent loan interest rate for the rental prototype. For the owner prototypes, the maximum supportable construction loan is calculated based on a loan-to-cost ratio of 85% and an average loan balance of 60%. DRA has assumed an 8.5% construction interest rate and a 1.0% construction loan fee. The construction period is assumed at 12 months and the sales period at 3 months. for the owner prototypes, DRA assumed homebuyer mortgages based on an effective interest rate of 8.0% (combined loan interest and mortgage insurance where appropriate}. We assume a 5% downpayment on the owner prototypes. The assumed interest rates are higher than current rates due to the five-year planning period for the Affordable Housing Strategy. Development cost and financing assumptions for the owner and. renter prototypes are summarized in Table 17 and Table 18, respectively. 6.0 Per Unit Affordability Gaps For the rental housing prototype, the gap analysis calculates the difference between total development costs and the conventional mortgage supportable by net operating income from restricted rents, based on the above assumptions. For owners, the gap is the difference between development costs and the supportable mortgage plus the buyer's down payment, ~~ty of -usnn Affordability Gap and Leveraged financing Analysis Page ~9 Ta61e 17 Development and Finar-c6rg Ca:tAtrpaoptio~u Ownv Harntr~ hototypes City of'iir:6n ' 4008 Owrw 1 Owtx7 2 Owner 3 Owner 4 Mixed Use, nttaci~ed Stacked Flat High Density Ground Floor Townhortte Condominium Condominium Retai[ Land Aogtdsitlon Cast Land Cost Ftr Groat SF Site Mea 545.00 (43.00 S60.D0 560.00 Land Cost Pbr Unit :109,000 575,000 552.000 f90,000 ~ Catty y~ hrtproverrtent Cats per hiet SF 525.00 520.00 s30A0 520.00 Ske ~ Costs ~ Un0 S6?,000 5P1$,000 526,000 520,000 Urth Hard Cpn P~ SF 595.00 585.00 S? 95.00 5? 55.00 Hard Colt Contfngertq~ (1) 5% S% 594 5% • Mzittlet:hrraVErtgtneerirtR(1) 394 3X 396 ~ 3% . .. ~ •~PropertyTaxaDuringCorishucdon(1) 0.6096 ~ O.gO% ~ 0.60Y. . D.fiO% ~ p~~ ~ p) 3.009f. 3.00% .3.00!6 3.0096 ~p~ Cosa t%Z'p(a 5.00!6 5.0096 5.0094 5.00'!6 SalaCommltsbns(96TDC) 1.00% 1.00% 1.OOX 1.00% Developer tea) Condkiarn (76TDC) -4.00% 4.00°1'! 4.0096 4.0096 Developer Profit C16 TDC) 6.0096 8.0094 8.0096 B.00% Conttrucetwrn Loan Cons9udion loan % of TDC 85.0096 85.0096 85.0096 85.0096 CtxtsL•uction LpanArrN, S9?,964,681 592,875,351 5785,955,786 510,648,310 Interest Rabe 8.50% 8.5096 8.5096 85076 Loan Feat 1.0096 1.0096 1.0096 1.0096 Average Loan 60.00% 60.0096 60.0096 60.00% ttlor- p~~ C tr 12 Months 12 MorMM 12 Months i Z Month ot>s u Sak Period 3 Months 3 Months 3 Montllt 3 Mondts 70~ Canstrvction Loan Tsrm 15 Mtrnihs 15 MoruFtt ? S Months 15 Months Cor>strucdon Loan 54,690,199 54,736,643 59x483.745 SS43,064 Cor>stnx~Son Loan M6sett--Sak PMriod 51,954,249 51,973.601 S?,973,601 S?,973,601 Tom Cortstrutd3on Loan 3b,644,448 56,710,244 511 ft57,346 S2S16,665 Cor>strt>ctlon Loan p~ 5919,647 5928,754 51,859,556 5106,483 t+iate: TDCTotal Development Cis n) ~ a ~~~ of dln3ttcosls (site irnprvvdrterrts and and building shell hard tom. Sowce: David Pau! Rosen ~ Astocistes. City of itstbi Page 30 A7aedabitity wp and t.averaged Rnancirg Analysis Table 18 Devefoprnent and Financing Cost AssmnPtioas Reatal Prototype: 5taoked Fla! Aparbuerrfs City of Bustin 2008 Renter Prototype Stacloed Flat Apartnknb Larrd/&dlding Acquisitioe Curt Land Cost Per Groca SF Site Mea 643.00 LarrcYHutl~ng Cost Per UnR 570,000 OeMelopmeat Cwt AsNnnptiap Site fmpravement Costs per SF Si6e Area 6?0.00 ~ irr Costs Pe- Unft 635,000 [hard Constrvctlon Costs per (Vet BWg. Sf 5155.00 Hard Coat Contingency h) 5.0096 Mchitecttrral/Eng'axer~ (1) 7.0096 Property Taxes During CorKUuction it) 0.60'!(1 inwrance During C.onstruttlon (t) 1.009E l~taricetinq/leasin~rt-Up Pbr Unit 11,000 Developer Overhead (96 TDC) 4.0096 Devebper Prom l96 TDq &.0096 coon Loan Cor~stnrction Loan As a 96 of TDC 75.0096 Construction Loan Amount 689,896.955 interest Rabe 8~9b Lean Fees (2) 6898,970 Average Loan Balance (Coratr/Lease-UP) 60.0096 Conahvdion Period 1g Morahs LeastUp Period 3 Months '~1 C~orntrvction Loan Term 15 Months Construction Loan -r#innst 65,730.931 Apamnmt Laou Delsi Coverage Rath 1 Z3 Mortfyage Term 30 Y~ Mbamt Rate 8.0096 (i) k a paroa~age d dMect mrs Wes Gnpro-emeeNc Pa-Idn6 uructuro and buikAng ~MII Fwd casts). R) k ~~z olm,caucUan Fwn amount Source: David Pau! Rosen & Asaociatrs CYy ofTUsUn AfrordabtlltyGap aril Lerenged Rnancir+gAnalysis Prge 31 Attachment A contains the per unit affordability gap calculations for the ownership housing prototypes by prototype and unit bedroom count. Attachment B contains the per unit affordability gap calculations for the rental housing prototype by unit bedroom count. 7.0 Renter Leveraged Financial Analysis DRA modeled the renter housing prototype aswming various forms of non-local financing assistance. We examined the following leverage scenarios: 1. 9% Low Income Housing Tax Credits (Federal only)'; 2. 4% tax credits with tax-exempt bonds; and 3. 4% tax credits, tax-exempt tends, and MHP. The leveraged financing analysis incorporates the assumptions of the gap analysis described above, with a few exceptions. Differences between the gap analysis and leveraged financing assumptions are described below. 7.1 Hard Construction Costs As noted above, the affordability gap analysis evaluates market rate prototypes and does not assume prevailing wages. Private residential projects built on private property are not subject to prevailing wages unless the projects are built pursuant to an agreement with a State agency, redevelopment agency, or local public housing authority. In addition, certain types of public funding do not necessarily require prevailing wages (for example, tax credits). However, the State of California Department of Housing and Community Development's Multifamily Housing Program (MHP) does require prevailing wages. Therefore, we have assumed prevailing wages for the financing scenario that uses MHP funding. We have increased hard construction costs by 25% as an estimate of the cost differential associated with prevailing wages. 7.2 Eligible Basis and Tax Credit Equity Calculations In calculating eligible basis for the purposes of determining Federal tax credits, we have used 2007 non-elevator threshold basis limits for Qrange County. We also used the 130% ' Since Orange County was a designated Difficult to Develop Area (DOA) in 2007, projects in the County were eligible fora 130% basis boost but not for State tax credits. , City of Tustin Affordability Gap and Leveraged Financing Analysis Page 32 basis boost because Orange County was designated by HUD as a Difficult to DevP{op Area (DDA) in 2007. We have assumed tax credit pricing of $1.00 for the 9% tax credit scenario and $1.05 for the 4% tax credit/bond scenarios. 7.3 Income Targeting Scenarios, Occupancy Standards and Affordable Rents The leveraged financing alternatives analyzed require specific income targeting for a project to be competitive. We have modeled the highest income profile to .score maximum points when competing for these financial resources under each scenario. The income targeting under each source is summarized in Table 19 below. For more information on each of these financing sources, see DRA's report entitled Affordable Housing Assistance Programs, presented under separate cover. Table 19 income Targeting Assumptions for Leveraged Financing Scenarios City of Tustin Income Targeting Assumptions Average Affordability Leveraged Financing (~° of Units at 9'° Area ~ Based on Income Targeting Source/Scenario Median Income (9'o Area Median Income 9% Low Income Housing Tax i 0% of units ~ 30% AMI 47% AMI Credits 15% of units ®45% AMI 75°10 of units ~ 50% AMi 4% Low Income Housing Tax 30% of units ~ 50% AMl 57% AMI Credits, Tax-fxempt.Bonds 70% of units ~ 60% AMI 4% Low Income Housing Tax 30% of units ®30% AMt 51 % AMI Credits, Tax-Fxempt Bonds, 7fl% of units ~ 60% AMI and MHP Source: d~avid Paul Rosen & Associates The California Tax Credit Allocation Committee (CTCAC) requires affordable rents to be calculated assuming an occupancy standard of 1.5 persons per bedroom. If Redevelopment Agency funds are used to finance the project, the Ca{ifornia Health and Safety Code occupancy standard of one person per bedroom plus one app{ies. This Gty of Tustin Affordability Gap and Leveraged financing Analysis Page 33 analysis therefore calculates household size using the lesser of the two occupancy standards, or the lesser of 1.5 persons per bedroom and one person per bedroom plus one. 7.4 Operating Costs and Vacancy For the leveraged financing analysis, annua) operating costs are estimated at X3,600 per unit and annua[ reserve deposits are estimated at $400 per unit, based on DRA's experience with affordable housing development and operations in Orange County and throughout Southern California. We assume an annual property tax rate equal to 1.2 percent of Uota) development costs. For the leveraged financing analysis, we have assumed a vacancy rate of 5%, consistent with the requirements of most leveraged financing sources, even though actual vacancy in well-run affordable housing developments are often 3% or less. . Table 20 summarizes the construction and permanent sources and uses for the Renter Prototype under the leveraged financing scenarios examined. To~ make this financing scenario feasible, the permanent and financing gap required would have to be filled by other subsidy sources, namely local housing resources. In addition, for the 4% tax credit scenario, the rental prototype would have to be built in four phases, to comply with the current limit of $2 million in federal tax credits per project under the 9% tax credit program. There is also a 150-unit size limit under the 9% tax credit program. The tax- exempt bond scenario without MHP would have to be built in two phases, to comply with the current bond limit of X30 million per projecx. With MHP, the tax-exempt bond scenario would have to be built in three phases, due to the higher costs associated with prevailing wages, which are required under MHP. The leveraged financing analysis is detailed in Attachment C for the Renter Prototype. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 34 Table 20 Construction and Permanent Sources and Uses Leveraged Financing Analysis Rental Housing Prototype: Stacked Flat Apartments City of Tustin 2008 FUNDING SCENARIO 996 Tax Credits 4% Tax CreditR 4% Tax Credits, Tax Exempt Bonds Bondy, MHP Number of Units 325 325 325 Acres 13.00 13.00 13.00 UniL~s/Acre 25:00 25.00 25.40 SOURCES OF FUNDS CONSTRUCTION Tax Credit Equity $1,601,192 $813,772 $951,186 Construction Loan $93,857,236 $59;393,300 $67,16],024 MHP (1) 50 50 $22,609,]47 Affordable Housing Program (AHP) (i) $1,625,000 $1,625,000 $1,625,000 Temporary Gap Financing Required (2; $17,317,8b5 $48,263,749 531,205,104 TOTAL SOURCES $114,401,293 $110,095,822 $123,551,461 PERMANENT Federal Tax Credit Equity $80,059,618 $40,~i88,609 $47,559,315 State Tax Credit Equity Sp 50 $0 MHP j1} $0 $0 $22,609,147 Affordable Housing Program (AHP) (1) $1,625,000 51,625,000 51,625,000 Permanent Financing $14,207,327 $22,245,144 516,145,037 Gap Financing Required $18,509,348 $45,537,069 $35,612,962 TOTAL SOURCES $114,401,293 $110,095,822 $133,551x461 Permanent Gap financing/Unit $S6,9S2 $140,114 $109,578 USES OF FUNDS CONSTRUCTION AND SOFT COSTS $114,40),293 $110,095,822 $1x3,551,461 TOTAL COSTIUNiT $352,004 $338,75G $380,158 (1) Estimated at 55,000 per unit. (Zp Equals temporary gap financing required a fter assuming 2 percent of total tax credit equity is used to fund construction and soft costs during construction. Source: David Paul Rosen & Associates City of Tustin Affordability Gap and leveraged Financing Malysis Page 35 Table A-1 PER UNIT PROTOTYPE DEYELOPMEfVT COSTS BY BEDROOM COUNT OWNER PROTOTYPE ttt CITY Of TUSTIN Prototype Descrlp8om Attached Townhwne TYPE ~1ND SIZE Cf Tots! Number of Unifst 234 Unit 2 Bedroom .1,050 Net S.f. 3 Bedroom t,300 Net S.F. a tsearoom 1,700 Net S.F. 1 059 7ota1 S.F. (t 1 311 Total S.F. 1 1 714 Total S.F. (1) Bard Construction Cab 500 /DU ~ 560 560,500 560,500 560.500 , SFte Impravem~ Unit/Parldng Constr. Costs 5102.06 /C~. 5.f. 5108,051 5133,778 5174,940 TotsI Hard Cosh 5168,551 5194,278 5235,440 Deveiopmd~t Impact and 643 /Unit 535 531,643 531,643 531,643 , p~,~~ Fsa Indirect/Soflt Coati S72,4S7/DU 572,457 572,457 572.457 E ~~ ~~ ~~ Land ~ OyP~y 5272,652 5298,378 5339,541 Land Cosh 5108.900 /DU 5108,900 5708,900 St08,900 DeK Fee/Pr+oBt & ~ 1296 552,030 555,538 S6t,t51 Total Project Costs ~, DwelBng U~t 5433,582 5462,8] 6 5509592 (t? Assumes efficiency rnfo (net/gross SF) of: 10196 Source: David i'aul Rosen & Associates. Cky o/TuA~ Pale M1 pffocdablliry Gap and ieverasad t3nrnr,~g ^"atysk Tabie A•2 PER UNIT' PROI~OTYt•E DEVELOPMENT COSTS EY BEDROOM COUNT OWNER 1'QOTC3TYPE •2 CITY OF TUSTIN Stadoed Flat TYPE MID SIZE Protatvoe Ileatriolioe+ CandendnLan OF UNIT Tote! Pkar6er of Utrla: 325 Unite t 8 2 Bedroom 3 Bedroom 4 Bedroom 950 Net S.F. 1,050 Net S.f. 1,200 Net S,F. 1,500 Net S.F. 955 Total S.i: (11 1 DS6Total S.Fi 1 t 067ota15.F. (t 1 508Tota) S.F. 1 Hard Conitractlon Coda S[~ hnprovements S34,848 /DU 534,848 534,848 534,848 534,&18 UnWParbngCb~utr,Costa $90.77/Cr.S.F 686,693 $95,819 S1D9,507 5136,884 lhta) Flard Cata 5721,541 5130,667 S744,355 5771,732 Develolx~ent lmpaa end hooeadttdFew 529,277/Unit 529,277 529,277 129.277 529,377 ImBrect/5oR Cab f52,566 /DU 552,566 152,566 SS2,566 552,566 Total Cmb (Eicept t.and and Overhead/hofip S20D,384 5212,509 5226,198 5253,575 Land Cate 574,923 lD11 574,923 574,923 174,923 574,923 Deus FeelTrotit t~ Overlwad 1396 537,951 639,195 S41,Od2 544,793 Total ProFect Cain Par Dwdlia5 Udt 5316,258 5326,628 (342,183 1373,293 (1) Aama effldency ratb (rut/gross SF) ok i OS % SourcC David Ptul !teen & Asioctabas. pqr dTuWn AlbrdibiktY ~ ~ t^8 Ar~tyik ~ A-2 Table 11.9 PER UNR PIODTO7YPE DEVELOPMENT COSTS BY BEDROOM COUKi OWNER PRO1rO7YPE N3 CRY OF 1L5T1N ~~ ' f i d 11'PE AND SIZE OF UMT n ~t om Prototype Dest:rlp8ons Cot~ 3 4 Bedroom Tote) Ntmtbcr of Ualb: 400 Unlb 1 E+edroom 000 Net S.F. 1 2 Bedsootn 1.150 Net S.F. 1,650 Nat S.F. 1,800 Net 5.F , 1 000'~tal S.F. 1 1,150Total S.F. 1 1 650Total S.F. (1 1800 Total S.F (1 Hard Comlroclior+ Cods 1361DU 526 526,136 S26,136 526,136 526,136 , Site lmprvaernes~ts Costs S20S.n 1Gr. S.F. UniUPgtldng ConsV. 5205,718 S236S7b 5339,435 5370,292 S23t,854 5262,712 5365,571 5396,426 7otat bard Cab 844 AJtnitt ~ 539 539,844 (39,844 (39,644 539.844 , ~, {,~ Iridkeetl5o~ Cosh ~ 585,326 /DU "' 585,326 585,326 ~ 585.326 585,326 Total ~,~ ~~ [aad ~ Overl+wd~w~ 5357,024 5387,882 5490,741 S52 t,598 i 2n VDU ss2 s52,272 s5z,2n ss2,2n sin , 1.~ coa. Dex FtrJfroAt ~ ~~ t2% 555,813 560,021 574,047 578,255 libtal ~~ ~ [>tivet6rt6 Ua1R 6465,109 5500.175 5617,060 5652,725 (i) Ate efflclenry ratb tned8ra+ SFl ~ 100'16 50~ Qavid Paul Rosh & Assodates. City dTiud~ ~'~'; ARardabNlry WP and t flmnc-eEAnalysk rabk A-4 PER UNR PROTOTYPE DEVELOPMENT COSTS BY BEDROOM COUNT OWNER PROTUTYPf A4 am Of TusnN Mbred u,R, Croro~d ~rn[atvow Desce4ntloa Elear 2elaii TYPE AND SIZE dF UNR Total Ns of Una 20 lhrh 1 Bedroom 2 Bedroom 3 Bedroom 1,100 NetS.F, 1,400 Net S.f 1,750 Net S.F 1 100 Tota15.F 1 400 Tohl S.F. 1 1,75D Total S.F (1 Hand Constrvclian Corer Sf~ Impmvernenb 514,800 /DU 519,800 S19,800 S19,~0 UnitlParking Corutr. Cons 5163.40/Gr. S.F. 5179,744 5228,765 5285,956 Total }tud Coro 5199,544 5248,565 5305,756 aai e^apack ~ 537,530/UnR 537,530 537,530 ;37,530 irrdlrecf/5oft Coctr 5186,920 /DU 5186,920 5786,920 5186,920 Total Cols (Ezoepe Land amt Orertxad/Pnofiq $423.994 5473,015 5530.206 end Corec 559,4001DU 559,400 539,400 559,400 DeKfoe/Profle><Orofiad 1296 565.917 572,602 580,401 7bW Project Cosh Psr Dwelpns iJr3t 5549,}12 5605,017 5670,007 p) Assufnec efl iCisncy ratio Inet/grosi S~ of: 100°1 Source: David Paul Rosen &Assoclates. Ctry dTusan ~sbHtN ~P end u:,~ged Rrux~dng Malysis ~ ~+ Table A-5 Homeowner Subsidy Requirements Owner 1 Attad~ed Townhame Two Bedroom City of Tustin 50°~6 of 70°k of 11096 of Median Median Median Income Level (7) $35,41 S $49,581 $77,97 3 Affordable Monthly Housing Cost (2) 5885 $1,240 $2,272 Less: Monthly Utility Allowance (3) $1'10 $110 5110 Less: Homeowner Association Dues $7 75 $175 5175 Less: Property Insurance $50 $SO $50 Available for Prinupal, Interest, Taxes $550 $905 ~ 57,937 Less• ProlSerty Taxes (4) ~ 579 ~ $130 -. _. $278 Supportable Mortgage Before Prop. Taxes (5) $75,007 $123,272 $264,044 Assumed Assessed Value at Sale $78,955 5129,760 5277,941 Available for Mortg. Principal and Interest 5471 $775 $1,660 Supportable Mortgage (5) 564,247 $705,588 $226,165 Affordable Purchase Price (6) $67,628 $111,745 S238,069 Buyer Downpayment $3,381 55,557 511,903 Required Capital Subsidy (7) $365,953 $322,437 X195,513 (1) Income limit for a family of 3. (2) At 3096 of gross income for low income and 35°6 of gross income for moderate incorrte households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. (4) Based on 1.20°6 average tax rate. 8.00°k (5) Based on 30-year mortgage at.• (6) Assumed to include downpayment at 5.0°,'° of purchase price; (7) Total development costs af: $433,582 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & Associates. City of Tustin page A-1 Affordability Gap and Leveraged Fnancing Analysis Table A-6 Homeowner Subsidy Requirements Owner 1 Attached Townhome Three Bedroom City of Tustin lncome Level (1) Affordable Monthly Housing Cost t2) Less: Monthly Utility Allowance (3) Less: Homeowner Association Dues Less: Property Insurance Available for Principal; Interest, Taxes Less: Property Taxes {4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Mortgage {5) Affordable Purchase Price,(6) Buyer Dawnpayment Required Capital Subsudy (7) 50% of 70% of 110% of Median Median Median $39,350 $55,090 $86,570 5984 $1,377 $2,525 $148 $148 $148 $175 5175 $175 550 550 550 $611 ~ .$1,004 ... .... $2,152 588 5144 $309 S83,235 5136,863 5293,276 $87,616 $144,066 5308,712 $523 5860 51,843 $71,295 $117,239 5251,204 575,047 5123,399 5264,425 $3,752 Sb,170 513,221 $387,769 $339,417 $198,391 (1) Income limit for a family of 4. (2) At 30% of gross income for low income and 35% of gross income for moderate income households. (3) Based on current utility of lowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating,, water, trash and sewer. (4) Based on 1.20% average tax rate. (S) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.0°~6 of purchase price; (7) Total development costs of: 5462,816 less buyer downpayment, less supportable mortgage. Source: David Paul itosen & Associates. City of Tustin Affordability Gap and Leveraged financing Analysis Page A-2 Table A-7 Homeowner Subsidy Requirements Owner 1 Attached Townhome Four Bedroom City of Tustin Income Level (1) Affordable Monthly Housing Cost (2) Less: Monthly Utility Allowance (3) Less: Homeowner Association Dues Less: Property Insurance Available for Principal, Interest, Taxes Less: Property Takes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Mortgage (5) Affordable Purchase Price (6} Buyer Downpayment Required Capital Subsidy (7} 50% of 70% of 110% of Median Median Median $42,498 $59,497 $93,496 51,062 $1,487 $2,727 5164 5164 $164 5175 -5175 5175 $50 550 550 $673 51,098 $2,338 $97 X158 $335 $91,780 $149,698 5318,625 $96,611 5157,577 $335,394 5577 S941 52,003 $78,614 $128,223 $272,916 582,751 $134,971 5287,280 $4,138 56.749 $14,364 X426,840 $374,620 ~222,3t2 (1) Income limit for a family of 5. (2) At 30% of gross income for low income and 35% of gross income for rrioderate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating,, cooking, and water heating, water, trash and sewer. (4) Based on 1.209'o average tax rate. (5) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.0°/, of purchase price; (7) Total development costs of: $509,592 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & Associates. City of Tustln Page A•3 ,affordability Cap and leveraged Financing Analysis Table A-8 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium One Bedroom City of Tustin Income Level (1) Affordable lvlonthly Housing Cost (2) Less: Monthly Utility Allowance (3) less: Homeowner Association Dues Less: Property Insurance Available for Principal, Interest, Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Mortgage (5) Affordable Purchase Price (6) Buyer Downpayrnent Required Capital Subsidy (7) 50% of 7096 of Median Median $31,480 $44,072 $787 $1,i 02 $93 $175 $50 $469 $67 $63,917 $67,281 $402 $54,748 $57,629 $2,881 $258,639 $93 $175 $50 5784 $112 $106,819 $13 2,441 $671 $91,495 $96,311 $4,816 $219,947 11096 of Median $69,256 $2,020 $93 $,75 $50 $1,702 $244 $231,950 $244,158 $1,458 $198,675 $209,132 $10,457 $107,126 (i) Income limit for a family of Z. (Z) At 30°r6 of gross income for low income and 35% of gross income for moderate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic. electric, electric heating, cooking, and water heating, water, trash and sewer. (4) Based on 1.20°~ average tax rate. (5) Based on 30-year mortgage at: 8.00°k ' (6) Assumed to include downpaymeni at S.D% of purchase price; (7) Total devebpment costs of: $316,258 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. city of Tustin Affordability Gap and Leveraged financing Analysis Page A_~ Table A•9 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium Two Bedroom City of Tustin Income Level (1) Affordable Monthly Housing Cost (2) Less: Monthly Utility Allowance (3) Less: Homeowner Association Dues Less: Properly Insurance Available for Principal, Interest, Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes {5) Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Mortgage (5) Affordable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7~ 50°k of 7096 of 110% of ~~ ~~ Median $35,415 $49,581 $77,913 $885 $1,240 $2,272 $110 $110 $110 $175 $175 $175' $50 S50 $50 $550 $905 $1,37 $79 $130 $278 $75,007 $123;272 $2~,~ $78,955 $129,760 $277,941 $471 $775 $1,660 $64,247 $105,588 $226,165 ' $67,628 $111,145 $238,069 $3,381 $5,557 511,903 $259,000 $215,483 $88,559 (1) Income limit for a family of 3. {2) At 30% of gross income for low income and 35% of gross income for moderate income households. (3) ~ Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. (4) Based on 1.20°k average tax rate. 8 ~o~ (5) Based on 30-year mortgage at: (6) Assumed to include downpayment at S.0% of purchase price; (7) Tota! development costs of: $326,628 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-2 Table A-10 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium Three Bedroom City of Tustin 50% of 70% of 1109'0 of Median Median Median Income Level (1) 539,350 $55,090 $86,570 Affordable Monthly Housing Cost (2} $984 $1,377 $2,525 Less: Monthly Utility Allowar~e (3) $148 $148 $148 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance 550 $50 550 Available for Principal, lnter+est, Taxes $611 $1,004 $2,152 Less: Property Taxes (4) 588 5144 $309 Supportable Mortgage Before Pmp. Taxes {5) $83,235 $136,863 S293,27b Assumed Assessed Value at Sale $87,616 5144,06b 5308,712 Available for Mortg. Principal and Interest 5523 $860 $1,843 Supportable Mortgage (5) 571,295 $117,229 $251,204 Affordable Purchase Price (6) $75,047 $123,399 $264,425 Buyer Downpayment $3,752 $6,170 $13,221 Required Capital Subsidy (7`) ~ $267,136 $218,784 $77,758 (1) Income limit for a family of 4. (2) At 30% of gross income for low income and 3~% of gross income for moderate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. {4) Based on 1.20% average tax rate. (5) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.0% of purchase price; (7) Total development costs of: $342,183 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. Ciry ofTusdn Affordability Gap and leveraged financing Analysis Page ~-3 Table A-11 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium four Bedroom City of Tustin 50°k of 7096 of 110°k of Median Median Median Income Level (1) $42,498 $59;497 $93,496 Affordable Monthly Housing Cost (2) $1,062 $1,487 $2,727 Less: Monthly Utility Allowance (3) S164 5164 51 ~ Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance 550 550 550 Available for Principal, Interest, Taxes $673 $1,098 $2,338 Less: Property Taxes (4) 597 5158 $335 Supportable Mortgage Before Prop. Taxes (5) $91,780 5149,698 $318,625 Assumed Assessed Value at Sale $96,611 $157,577 $335,394 Available for Mortg. Principal and Interest 5577 $941 $2,003 Supportable Mortgage i5) .578,614 $128,223 5272,916 Affordable Purchase Price (6) 582,751 $134,971 $287,280 B~. Downpayment $4,138 $6,749 514,364 Required Capital Subsidy (7) 5290,542 $238,322 $86,013 (1) Income limit for a family of 5. (2) At 30% of gross income for low income and 35% of gross income for moderate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. (3) Includes homeowner association dues and/or other maintenance expenses. (4) Based on 1.20°~ average tax rate. (5) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.0°k of purchase price; (7) Total development costs of: $373,293 less buyer downpayment, less affardable mortgage. Source: David Paul Rosen & Associates. City of Tustin Page A-4 Affordability Gap and Leveraged Financing Analysis Table A-12 Homeowner Subsidy Requirements Owner 3 High Density Condominium Oru• Bedroom City of Tustin Income Level (1) Affordable Mornhly Housing Cast{2) Less: Monthly Utility Allowance t3) Less: Homeowner Association Dues Less: Property Insurance Available for Principal, Interest, Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5} Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Mortgage (5) Afforclable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7) 50% of 70% of 110% of Median Median Median $31,480 $44,072 $69,256 $787 $1,102 $2,020 593 $93 $93 $175 $175 $175 $50 $50 550 $469 $784 $1,702 $67~ $112 $244 $63,917 $106,819 $231,950 $67,281 $112,441 $244,158 $402 $671 $1,458 554,748 $91,495 ;198,675 $57,629 $96,311 $209,132 $2,881 $4,816 510,457 $407,480 $368,798 $2,5,977 (1) Income limit for a family of 2. (2) At 30% of gross income for low income and 35°~ of gross income for moderate income households. (3) Based on cun~ent utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. {4) Based on 1.20% average tax rate. (5} Based on 30-year mortgage at: 8.00°~ {s} Assumed m include downpayment at 5.0% of purchase price; (7) Total development costs of: $465,109 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Cap and Leveraged Financing Analysis Page A-1 Table A-i 3 Homeowner Subsidy Requirements Owner 3 High Density Condominium Two Bedrooom City of Tustin Income Level (1) Affordable Monthly Housing Cost (2) Less: Monthly Utility Allowance (3) Less: Homeownet Association Dues Less: Property Insurance Available for Principal, Interest, Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5} Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Nbrtgage (5) Affordable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7) 50°6 of 70°k of 110°~ of Median Median Median $35,415 $49,581 $77,913 $885 $1,240 $2,272 $110 $110 $110 $175 $175 $175 $50 $50 $50 $550 $905 $1,937 $79 $130 $278 $75,007 $123,272 $264,044 $78,955 $129,760 $277,941 5471 $775 $1,660 $64,247 $105,S88 $226,165 ' $67,628 $111,145 $238,069 $3,381 $5,557 $11,903 $432,547 $389,030 $262,106 (1) Income limit for a family of 3. (2) At 30% of gross income for low income and 35°~ of gross income for moderate income households. (3} Base mes homeowner pays for basi electr c,~electri~hea ng, cooking, and water heatsng, water~t Assu trash and sewer. (4) Based on 1.20°~ average tax rate. 8 ~% (5} Based on 30-year mortgage at: (6} Assumed to include downpayment at 5.0°10 of purchase price; (7) Total development costs of: $500,175 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin page A-2 Affordability Gap and Leveraged financing Analysis Table A-14 Homeowner Subsidy Requiremerrts Crwner 3 High Density Condominium Three Bedroom City of Tustin Income Level{1) Affordable Monthly Housing Cost {2) Less: Monthly Utility Allowance (3) Less: Homeowner Association Dues Less: Property Inwrance Available for Principal, Interest, Taxes .Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and )merest Supportable Mortgage (5) Affordable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7') 50°~6 of 7096 of 110°'° of Median Median Median $39,350 $55,090 $86,570 $984 51,377 $2,525 $148 5148 $148 $175 5175 $175 550 550 5S0 $611 $1,004 $2,152 588 $144 $309 S83,235 $136,863 $293,276 $87,616 $144,066 5308,712 $523 5860 $1,843 $71,295 5117,229 5251,204 . $75,047 $123,399 5264,425 $3,752 $6,170 513,221 $542,013 $493,6b1 $352,635 (1) Income limit for a family of 4. (2) At 30°k of gross income for low income and 35% of gross income for moderate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept Assumes homeowner pays for basic electric, electric heating, roolcing, and water heatin{~ water, trash and sewer. (4) Based on 1.20% average tax rate. (5) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.09'0 of purchase price; (7) Tota! development costs of: $617,060 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Cap andLeveraged Fnancing Analysis Page A-3 Table A-15 Homeowner Subsidy Requirements Owner 3 High 13ens'tty Condominium Four Bedroom City of Tusfin Income Leve) (1) Affordable Monthly Housing Cost (2) Less: Monthly Utility Allowance (3) Less: Homeowner Association Dues Less: Property Insurance Available for Principal, Interest, Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and Ingest Supportable Mortgage {5) Affa~dable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7) 5096 of 70% of 11x96 of Median Median Median $42,498 $59,497 $93,496 $1,062 $1,487 $2,727 $164 $164 $164 $175 $175 $175 $50 $50 $50 $673 $1,098 $2,338 $97 $158 $335 591,780 $149,698 5318,625 $96,611 $157,577 X335,394 $577 $941 $2,003 $78,614 $128,223 $272,916 $82,751 $134,971 $287,280 $4,138 $6,749 $14,364 $569,374 5517,154 $364,845 (1) Income limit for a family of 5. (2) At 30°k of gross income for low income and 35% of gross income for moderate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating, coo(cing, and water heating, water, trash and sewer. (4) Based on 1.20°/° average tax rate. {5) Based on 30-year mortgage at: 8•~% (6) Assumed to include downpayment at 5.0°k of purchase price; (7) Tota! development costs of: $652,125 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Fnancing Analysis Page A-4 Table A-16 Homeowner Subsidy Requirements Owner 4 Mixed Use, Ground Floor Retail One Bedroom City ofTustin ' S0% of 70go of 110% of Median Median Median Income Level (1) $31,480 $44,072 $69,256 Affordable Monthly Housing Cost (2) $787 $1,102 $2,020 Less: Monthly Utility Allowance {3) $93 $93 $93 Less: Homeowner Association Dues $175 $175 $175 Less: Properly Insurance $50 $50 $50 Available for Principal, Jnterest, Taxes $469 $784 $1,702 Less: Property Taxes (4) $67 $112 $244 Supportable Mortgage Before Prop. Taxes (5) $63,917 $106,819 $231,950 Assumed Assessed Value at Sale $67,281 $1 i 2,441 $244,158 Available for Mortg. Principal and Interest $402 $671 $1,458 Supportable Mortgage {5) $54,748 $91,495 $198,675 Affordable Purchase Price (6) $57,629 $96,311 $209,132 . Buyer Downpayment X2;881 $4,816 $10,457 Required Capital Subsidy (7) $491,683 X453,001 $340,180 (1) Income limit for a family of 2. (2) At 30% of gross income for low income and 35% of gross income for moderate income households. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. {3) Includes homeowner association dues and/or other maintenance expenses. (4) Based on 1.20% average tax rate. (5) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.0% of purchase price; {7) Total development costs of: $549,312 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. pity of Tustin Affordability Gap and Leveraged Financing Analysis Page A-1 Table A-17 Homeowner Subsidy Requirements Owner 4 Mixed Use, Ground Ftoor Retail Two Bedrooom City of Tustin Income Level (1) Affordable Monthly Housing Cost (2) Less: Monthly Utility Allowance (3} Less: Homeowner Association Dues Less: Property Insurance Available for Principal, Interest, Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Mortgage {5) Affordable Purchase Price (6) Buyer Downpayment Required Cap'~#al Subsidy (7) s0°r6 of 70°k of 110% of Median Median Median $35,415 $49,581 $77,913 $885 $1,240 $2,272 $110 $110 $110 $175 $175 $175 $50 $50 $50 $550 $905 $1,937 $79 $130 $278 $75,007 $123,272. $264,044 $78,955 $129,760 ~ $277,941 $471 $775 $1,660 $64,247 $105,588 $226,165 $67,628 $111,145 $238,069 $3,381 $5,557 $11,903 $537,389 $493,872 $366;948 (1) Income limit for a family of 3. (2) At 30% of gross income for low income and 35% of gross incame for modetate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating,, cooking, and water heating,, water, trash and sewer. (3} Includes homeowner association dues and/or other maintenance expenses. (4) Based on 1.20% average tax rate. B.00% (5) Based on 30-year mortgage at: (6) Assumed to include downpayment at 5.0% of purchase price; (7) Total development costs of: $605,017 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin page A-2 Affordabiiiry Gap and Leveraged Financing Analysis Table A-18 Homeowner Subsidy Requirements Owner 3 Mixed Use, Ground Floor Retail Three Bedroom City of Tustin Income Level (1) Affordable Monthly Housing Cost {2) Less: Monthly Utility Allowance (3) less: Homeowner Association Dues Less: Property Insurance Available for Principal, Interest, Taxes Less: Property Taxes (4) ...Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and Interest Supportable Mortgage (5) Affordable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7) 50% of 74% of 110% of Median Median Median $39,350. $55,fl90 $86,570 $9&4 $1,377 $2,525 $148 $148 $148 $175 $175 $i 75 $SO $50 $50 $611 $1,004 $2,152 $88 $1-44 $309 $83,235 $136,853 $293,276 $87,616 $144,066 $308,772 $523 $860 $1,843 $71,295 $i 17,229 $251,204 $75,047 $123,399 $264,425 $3,752 $6,170 $13,221 $594,960 $546,608 $405,58? {1) Income limit for a family of 4. {2) At 30% of gross income for !ow income and 35°k of gross income for moderate income households. (3) Based on current utility allowances from County of Orange Housing and Community Services Dept. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. {4) Based on 1.20°k average tax rate. (5) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.0% of purchase price; (7) Totat development costs of: $670,007 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordabi lily Gap and leveraged financing Ana tysis Page A-3 Table D-f Per Unit perdopantntCotb sr Unit Bedroom Count ttcatal Fiortil~ P ~ ~~ ~ Atha 2098 S~ ~ •,,.~~ •`I•_."'^'^' - UIV I I 3 4 TONunba Ud Albi 335 Utdb 1 750 Net 5. F 2 950 Net S.f. t 050 Net S.F. 1 SO Net S.F 'HardtomtnkdoaCab 534 848JOU b 53+1.849 534,646 534,846 534,848 , SNe ImQrovrrrlarl Unit/Palkklg ~ ~~ i1 r~_p0 p~ ~ St 16,250 St47,2S0 5162,750 5193,750 Tool turd Cob 5151,0 f1ffi,098 5197,598 5226,598 ald pots ~ 526 F 03/ Net S 319,541 324,752 127,357 S32,568 . . . i~~/SoR tort. 136.984 536.984 536,984 536.984 536,964 Co>sb ~~ tom. ~~~ ~~ ~07,(~ 5243,834 S2bt,940 5298,150 Land Cab 574,923 /DU f 74,923 174,923 574;923 574,923 Deg. fedArolN & i ~ 538,529 543,467 545.936 550,874 ,~ trvjel3 Gab Ptr Uldt 5321,075 5362,224 5362,799 5423.947 SolucC David Paul Rosen 6 Auoctalet 0-1 Af(ord~hNllr Cap ~d ~ F~l ~ Table B-2 Tenant Subsidy Requiremerrts Renter Prototype Stacked Fiat Apartments One Bedroom City of Tustin 2008 SO% of 6096 of 110% of Median Median Median Income Level (1) ;31,480 ;37,776 ;69,256 Affordable Monthly Housing Cost (2) ;787 ;944 #1,731, Less: Monthly Utilities (3) - ;54 ;54 ;54 Affordable Monthly Rent 5733 $890 ;1,677 less: Monthly Operating Cost {4) ;300 ~ ;300 - ;300 Less: Monthly Property Taxes (5) S32 t ;321 ;321 Less: Vacancy Allowance (6) ;22 ;27 ;50 Tenant Monthly Net Operating Income ;90 ;243 ;1,006 Tenant Supported Debt (7) ;9,805 ;26,451 $109,681 Total Development Cost Per Unit ;321,075 ;321,075 ;321,075 Required Capital Subsidy (8) 5311,270 ;294,624 $211,394 (1) For a household size of 2 persons, pro-rated from 2007 HUD income limits for Orange County. (2} Assumes 30% of gross income spent on housing. (3) Based on current utility allowances from County of Orange Housing and Community Services Department Assumes tenant pays for electric heating, cooking, water heating and basic electricity. (4) Based on estimated monthly operating costs per unit of ;300 (5) Based on annual property tax rate of 1.Z% applied Uo total development cost (6) Assumed at 3% of affordable monthly rent (7) Based on 30-year mortgage at : 8.00% Assumes debt coverage ratio of: 1.25 A negative tenant supported debt indicates the rents do not cover operating costs and a capitalizEd "sinking fund° of this amount is added to total development cost to cover operating deficits. (8) Equivalent to total development cost less tenant supported debt Source: David Paul Rosen & Associates. City ofTu~in Affordability Gap and Leveraged 1-ifinancing Analysis Page B-1 Table B-3 Tenant Subsidy Requirerner~ts Renter Prototype Stacked Flat Apar6nenb Two Bedroom City of Tustin 2008 5096 of 6096 of 11096 of Median Median Median Income Level {1) 535,415 $42,498 ;77,913 Affordable Monthly Housing Cost (2) 5885 ;1,062 ;t,948 Less: Monthly Utilities (3) ;b8 568 568 Affordable Monthly Rent ;817 5994 ;1,880 Less: Monthly Operating Cost (4) 5300 5300 5300 Less: Monthly Property Taxes {5) 5362 ;362 ;362 Less: Vacancy Allowance (6) ;25 530 556 Tenant Monthly Net Operating Income ;131 5302 ;1,161 Tenant Supported Debt (7) ;14,242 532,969 ;126,603 Total Development Cost Per Unit 5362,224 ;362,224 5362,224 Required Capital Subsidy {8) $347,982 $329,255 $235,621 (1) For a household size of 3 persons, pro-rated from 2007 HUD income limits for Orange County. (2) Assumes 30% ~ gross income spent on housing. (3) Based on current utility allowances from County of Orange Housing and Community Services Department Assumes tenant pays for electric heating, cooking, water heating and basic electricity. (4) Based on estimated monthly operating costs per unit ~ 53~ (5) Based on annual property tax rate of 1.2°6 applied to total development cost {6} Assumed at 3% of affordable monthly rent. (7} Sased on 30-year mortgage at : 8.00°k Assumes debt c~ovnrat Vi=and a ca ital zed A negative tenant supported debt indicates the rents do not cover ope g P "sinking fund" of this amount is added to total development cost to cover operating deficits. (e) Equivalent to total development cost less tenant supported debt. Source: David Paul Rosen & Associates. Gty ofTustin Page &2 Affordability Gap and leveraged Financing Analysis Table B-4 Tenant Subsidy Requirements Renter Prototype Stacked Flat Apartments Three 13edr~m City of Tustin 2008 50% of 6096 of 110°6 of Median Median Median Income Level 11 } 539,350 547,220 586,570 Affordable Monthly Housing Cost (2) 5984 51,181 52,164 Less: Monthly Utilities (3) 598 $98 598 Affordable Monthly Rent 5886 51,083 52,066 Less: Monthly Operating Cost t4) 5300 5300 5300 less: Monthly Property Taxes (5) 5383 5383 5383 Less: Vacancy Allowance (6) ~ S27 S32 552 Tenant Monthly Net Operating Income 5559 5750 51,704 Tenant Supported Debt (7) 560,965 #81,773 5185,810 Total Development Cost Per Unit 5382,799 5382,799 x382,799 Required Capital Subsidy (8) 5321,834 5301,026 X196,989 (1) f-or a household size of 4 persons, pto-rated from 2007 HUD income limits for Orange County. (2) Assumes 3096 of gross income spent on housing. (3) Based on current utility allowances from County of Orange Housing and Community Services flepartment Assumes tenant pays fior electric heating, cooking, water heating and basic electricity. (4) Based on estimated monthly operating costs per unit of 5300 (5) Sased on annual property tax rate of 1.2% applied to total developmern cost (6) Assumed at 3% of affordable monthly rent (7) Based on 30-year mortgage at : 8.00% Assumes debt coverage rafio of: 1.25 A negative tenant supported debt indicates the rents do not cover operating costs and a capitalized "sinking fund" of this amount is added to total development cost to Dover operating deficits. {8) Equivalent to total development cost less tenant supported debt Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Malysis Page &3 Table B-5 Tenant Subsidy Requirements Renter Protoiype Stacked Flat Aparhr~ents Four Bedroom City ofTustin 2008 5096 of 6096 of 11096 of Median Median Median Income Level (1) $42,498 550,998 593,496 Affordable Monthly Housing Cost (2) 51,062 51,275 52,337 Less: Monthly Utilitres (3) 5109 5109 5109 Affordable Monthly Rent 5953 51,1b6 52,228 Less: Monthly Operating Cost (4) 5300 5300 5300 Less: Monthly Property Taxes (5) 5424 5424 5424 Less: Vacancy Allowance (6) 529 535 567 Tenant Monthly Net Operating Income 5201 5407 52,285 Tenant Supported Debt (n $21,903 544,376 5249,179 Total Development Cost per Unit 5423,947 5423,947 5423,947 RegainEd Capital Subsidy (8) $402,044 $379,571 5174,768 (1) For a household size of 5 persons, pro-ratted from 2007 HUD income limits for Orange County. (2) Assumes 309'0 of gross income spent on housing. (3) Based on current utility allowances from County of Orange Housing and Community Services Department Assumes tenant pays for electric heating, cooking, water heating and basic electricity. (4) Based on estimated monthly c~peratinR costs per unit of 5300 (5) Based on annual property tax rate of 1.296 applied to total development cost (6) Assumed at 396 of affordable monthly Tern. (7) Based on 30-year mortgage at : 8.00°6 Assumes debt rnveraRe ratio of: t .25 A negative tenant supported debt indicates the rents do not cover operating costs and a capitalized "sinking fund` of this amount is added to total development cost to cover operating deficits. (8) Equivalent to total development cost less tenant supported debt Source: David Paul Rosen & Associates. City of Tustin Page B-4 I~ffwdabil ity Gap and leveraged Financing Analysis Table C-1 LEVERAGED FINANCING ANALYSES RENTAL PROTOTYPE STAC7~D FLATAPARTMIrNTS DEVH.OPMENT PROGRAM CITY OF TUSTIN 2008 Type 1 Bedroom 2 Bedroom 3 Be~oom 4 Bedroarrt Total Affordable Unka 2 BR Mans~ger's Unit Total Fusing Untts Community Room Total Net SF Building Area Paricing/Circulation ~~ Parking Structure Tote! Spaces ~ Una 96 Unifs Sq. Ft/Unit 73 2396 750 100 3196 930 100 3196 1,050 50 1596 1,250 333 100% 2 325 Spa~~ 81 650 731 Unit Tote! SF Pd Aare Acrd 54,750 95,D00 105,000 62,500 317,250 25.00 13.00 1,900 314,150 0 379,150 City ofTusdn Aft~d~lllty Gap snd Levered financing Analysis ~ G1 Ts~k c i RENTAL !'lOidil'~ STAiCKlD FLAT APARTMENTS INOOr`iE AND OrERAT1NC COLTl1 WITH 9%T%UI CREDITS. F~1ElA1. AND STAT! ASSUA4ffIONS 2007 Median Household lnmaw FamNy d foot Affoedeble HorulnR CorlAs a %d kioosee No. d Hedraomr ~ TotaL Houre)aId Sis~ (11 Household Sisx Inoome Ad1uM. Faaot Utility ARowanoe t2) 323 tJo, d Unttr 773 '(oral Oedrootrx ~5 /Y IAICOME Ll:YB. Alfadable A4ond~ ~ Lws: Mott~lyU1(lib~ Affordable MonlMy Ran I~fbtdablr MonRlslr Hotrslrr0 Cad AAadebM MorMlsh' ~AOoNaan Amw1 froze ftrC1DNM Affotdabie Monthly HoudrVl Cod Us: MontlJyudlnyAllownce Attordable Mond-IY Rerx NET p-ERAI7NG IkCOAIE AfbtdabNity Le~eiR~o. dBedroonw losl6oTtJnMs is 74,6%d UdsUNd I Oedroont ~ a.MdNa 4 Dedsootn 1 Oedroan 2 Bedreorn 3 Oedroom 4 Hldlanm 1 Oedrnon 2 Oedroaet ~ 1ledrootn 1 Bedroom 570.700 . 30% 1 Oedroom I Oedrooln 3 ~-~' 1.5 Perrons 3.0 hrroni 4D Plrnosr 75% 90% 100% SS4 560 596 73 100 100 73 20D ~ (17,700 SI1,2~9 533,810 yµ3 5531 SS90 LYSq (Sip a9.1 s3s9 34~ s4n fI6,Si1 531,674 535 56M (797 (f54) ~ (5901 s61o s7ls slay (29,313 53S,41S 539 5738 Ebbs 4 as4) c5fr~ (S96i 5664 5017 5806 Ungr a ,o la s it 15 1s s ss 7s 7s 37 3I~ Rwd s3e9 f463 s5u silo S7I! 5707 5647 s664 6617 seea S9S3 Morsthly !',ton Income 53,1{2 54,6]0 s4,9Io sz,64o s6,71o 510.935 511.605 56,77( (36,936 561,27s sis.4so 53S,I61 s2s1,4so 1 Oe~eor6 5.0 iMra0nr 108% St09 SO 200 525~t99 5637 (51091 Ss26 530,241 5956 ((109) s647 s<I,~se 51,062 alo9) 5953 Took 2 ManaRsrr UnRS 53,017,400 GROSS RENTAL u+tof~E .5.016 Lam vacancisr 13) f5150,670) ;~~ 5100 Per Unh lnoonre lrtisral . 52,696.630 GROSS ANNUAL O~ECOME ~ S3o0kas11/mo. 53,600 hr UnWlbs ; ~~ 3% ofO~PSr.6udRet (j1,170,0001 (53S,t0I>) ~ R 5400 Pt:r UnRhre t5130,000) lest: ~~~ ReMtv~r s,,sro.73o Nero~RAnNC urcoH-E 5 ix~ns Pr- bedroom) r+d Qlifomla Heahh s++d sdety rdud t1 t . . (1) Asap tfr ksse d TCAC ooctspsrrcy s ocwpan~y stattdard (one peton pa bedroom plus ond• enective Ocsobet 1, 2006. Assvrrs tsnent Oays ~ CommunM 5nv{or l , ~ Source C~~, d ~ Flan nR ~Ii eteGric lseaDryt, ~ were hes9lWt and bidC eleddcky: hmdlad I»~ watss and Hash. sfers wowed bred on vaoncy daze in t1» markrsl arc. a r tr (3) TCAC requires a S1G minimue+ vagagy ts Pqe U2 W4y Cep end ~ tswrr+dra{ ArulgL Table G3 RENTAL PROTOTYPE SUICKED FLAT APARTMENTS DEVELOPMENT COSTS 996 TAX CREDITS, FEDERAL AND STATE /~~ No. of Units Total Net LhringAna (SF) Community Roam Tool Net Square Feet, Residential Units Other BuilcBngArea Total Net Square Feet Total Grosz Squve Feet % Residential Bach Eligible 13.00 325 319,150 0 319,150 0 319,150 566,280 100.0096 tal x Crmdk fiig. Bait p00%Raida LAND ACQUISTIION 543 Pet Site Sf 524,350,040 ~ SITE VMDRK 5~ P~ Site SF 511,325,600 S1 1,325,600 UNIT CONSTRUCTION HARD C05T5 5755 Pr:r SF 549,468,250 549,46Er250 CONTINGENCY S.OOX of Hard Costs 53,039,693 53,039,b93 ARCHJENGKONS'TR. SUPERVISION 7.0076 of Hard Colts S5,960,072 55,960,072 LOCAL {MPAt?AND PROC;FSSING FES 526.05 Per SF 58,315,308 58,315,308 ALTA SURVEY 53,000 53,000 ENVIRONMENUL'PHASE 1 57.500 57,500 soiLSrESTiNC slo,ooo sloooo COf+i5TRl1CTION LOAN FEES 1.00% 5938,572 5938,572 CONSTRUCTIOPULEASE-UPINTEREST 8.5096 15 Morklu $b,781,185 56,781,185 REAL ESTAT):TAXES AND INSURANCE 1.6076 of Hard Cosh 51,362,302 51,362,302 TITLE AND CLOSING 515,000 515,000 APPRAISAL FEES 570,000 510,000 REAL ESTATE LEGAL 530,000 512,000 ORC,ANIZATIONAL LJ:GAI. 530,000 50 MARI~T,e~pY 525,000 525,000 P05T.CONSTRUCTION AUDR 515,000 SO MARKETItVCJLEASE-UPISTART-UP Sl x.000 SO OPERATING RESERVE 3 Morrths Oiler 5292,500 50 TOTAL DEVELOPMENTCOST 5112,079,022 587.273,482 TAX CREDIT CC4VSULTANT 530,000 SO TAX CREDIT APPLICATION FEE 52,000 SO TCAC ALLCIO-T1ClN FEE 4.00% of Ann. Credit 5320,270 SO SYNDKir-TiON LEGAL 530,000 SO TOTAL PROJECT COST 5114,4A1,293 588,473 PER UNIT 5352,004 fZ72,Z26 PER ~ 5358'46 (1) As of 2006, the maximum developer fee permitted by TCAC is the lesser of 1596 of drveloprr~nt ousts or i2 mlllbn. The maximum amount that can be Mcluded in eiigil~c basis is St A million. Development ~d tax credit consatldng and syndication ~ are included In the developer fee cap. ~ ~~ Paga G3 AHoed~bUrly Cap and U+r~agad fMancin8 Mslysk Table C-4 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS FINANCING ASSUMPTIONS 9% TAX CREDITS, FEDERAL AND STATE TAX CAEDR EQUITY 838 616 571 Requested Eligible Basis , , SO Less: Non-Qualified Non-Recourse Financing 571 b96,838 Unadjusted Eligib~ Basis Adjusted Eligible Basis (High CostArea Adjust) , 1.30 593,101,889 Qualified Bass (% Low Income Units) 10096 593,109,889 Tax Credit Rate 8'~' 762 006 58 Annual Allow. Federal Credits , , Tax Credit Pricing (Equity Raised Per Tax Credit Dollary d l S 1.000 era Fe Federal Tax Credit Equity (99.9996) 580,059,618 FAIR MARKETVALUE CALCULATION 51 563,730 Net Ciperating Income; Restr. Rerrts , 8.50% Capitalization Rate Capitalized Value at Restricted Rertts 518,396,824 MAXIMUM CONSTRUCTION LOAN CALCULATION Constr. Loan as Percent of FMV Max 75°~6 513,797,618 . Plus: Federai and State Tax Credits 580,059,618 593,857,236 Maximum Construction Loan CONSTRUCTION LOAN 593,857,236 Constr. Loan AmL 8.5096 interest Rate 1.00° Loan Points 0096 6b Average Loan Balance-Con ruction . 12 Montf>s Construcdon Loan Term 3 Months Lease-Up Period 15 lubnths Total Construction Loan Pdiod 54 786,719 Construction Loan interest--Cor>strudion , 51 994,46b Constnrction Loan Interest-Lease-Up , 56,781,185 Total Construction Loan Interest 5938,572 Construction Loan Poirrts PERMANENT MORTGAGE 51,563,730 Net Operating Income 1.25 Debt Coverage Ratio 51,250,980 Debt Service Based on DCR 30 years Mortgage Term 8.9'0 Interest Rate 514,207,327 Max. Mortgage Amount (DCR) 1.00% 5942,073 Loan Fees CNy of Tcnti n Page C-1 Affordability Gap and tevaaged financing Analysis s Table C-S RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS 996 TAX CREDIT'S, FEDERAL AND STATE Orange Co. 99'°Threshold Basis Limits, 2008 Unit Size 7 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 2 Bedroom Mgr's Unit Total Threshold Basis Threshold Sasis Boosts Plus: Prevailing Wage Boost Plus: Subterranean' Parking Boost Plus: Day Care Center Boost Plus: Special Needs Boost Plus: Elevator Boost Subtotal Boost ~1) Pius: Energy Efficiency Basis Boost Plus: Distributive Energy Boost Plus: Seismic Upgrade Soost Plus: Development Impact Few Total Adjusted Threshold Basis Total Unadjusted fligible Sasis Requested Eligible Basis $8,315,308 $71,616,838 $88,473,482 $71,616,838 (1) Under 2008 TCAC regulations, the total combined boost for prevailing wage, perking, day care center, special needs and elevator may not exceed 39 percent City of Tustin affordability Gap and leveraged Financing Malysls TCAC Basis Total # of Units Limit Per Unit Basis 73 $139,272 $10,166,856 ] 00 $168,800 $].6,880,000 100 $215,fl40 $21,504,000, . 50 $239,568 $1 ],978,400 2 $168,800 $337,600 $60,866,856 Max allowed 20% 0% • $0 7°l0 096 $0 2°10 0% $0 296 0% $0 10% 0% $0 39% 496 4% $2,434,674 596 0% $0 15% 0% $0 Page C-t ~~ ~ ~~~~~~~~~ ~ ~ ~~e~ ~~~~ ~~~~~ t ~ ~ ~ ~ ~ ~ ~_ ~' a a~ •~~~~~ a=~ ~~~~~~~~ ~~~~x aW ~ ~~~=~~~~~ ~ E~~a~ . ~~ ~~ ~ ~ r n ~ ~~~~~~~~~ g ~~ a~ pY~ LA ~~~~~~M ~~~~ a Ay R ~ ~ A ~ r ~¢ v~ •~~~ ~~~aa l~ x y ~~ u a F YA~~~~ ~ ~~Q ~ ~ ~~~R~j~t(& l ! 4~ ~g ~ ~g~ ~ ~ ~ ~~ ~ ~~ ip C~ ~~~~~~~~ a~ ~ a ~~~$~~~P~~ ~ ~~~~ a~ g ~ A ~~~~~~k~ JR~ A ~+ ~ ~~' ~ ~ ~~5~~ ~~ ~~~Y ~ ~ ~ ~ ~a ~ x ~ X~~ ~ri~~ !~ 1%r~' ~y~~~~~~M ~ ~Q~ x ~~`i~E~S~~ ~ G~~j~~ ~~ ~~ ~ ~~~i~~f~ ~ ~ ~~~~ ~~~ ~~~~~ # 3~ ~~~ It ? ~ g~ ~ ~~ (i ~ ~B Y ~ ~~~ ~~ a~ e ~~~~~~ ~ ¢~~~ ~, ~~ ~~ ~ ~~~~~~ ~1~~ M !2 y ~ a ~ ~ ~,La^'{te' ~~~L~~ ~ ~~`Q~i ~n i ~i r i ~ ~d~ ~ F [#~ ~~~~ ~~ ~~~ ~~ ~~~~~~ ~~~~ ~ ~~~ ~~~ ~ ~ ~~ ~~ ~ A ~~~ _ _ ~ ~~~~ ~ ~g~~~ ~ ra p~~ ~ ~~ ~i M~ M M ~~~ ~~~~ N V~ N M b NNpb P O M~ ~ 7i.(p V O tLM M OR'VV ~~yyJ w MM y~W~~ $S«~~ g a~N~~ i ~~ g ~~ ~~~ €~~ yp ~ ex~E~ ~ $ss'~5 J ~~ ~ MM r ~p1Y V ~/ r ~~ ~ ~ ~~ L, w V ~~J~ tT Y ~ Q ~ ~~ ~ W ~ a v V O~G y{ ;M ~, GIO~~~ N V~ ~ ~ ~ N ~MM`~yss~ ~ yy MM V O M O y~ M IV7 :~A ~ }~. Y J • L ~• . ~~s~~i y , ~ N~~~~ '~ Mx ~~I~(( ggy v ~Ng `. ~ t ' ~ j ~ WWI a. iS $i ~'b. ~ i w ~ . ~y ~~~ ~~~~„ ~~ ~ ~ Ay ~ ~~~$b:~ M N y~[lYM M M O~ ~ ~V v p w N ~ M ~~ C r ~`~A$ ~ ~ V G~~~M A O ~i, i =a~~~ ~~ ~~ ~~ ~ !~ ~ ~~!' ~ ~ ~~ ~ + V v /rQ ~ ~ y •~ ~~ O ~ ~W ~ ~ ~ ~ ~ ir y MM ~ G ~~ fie ~ Y ] , } • 2Iiy~ ~Lw ~ , { 3 ~iS~S~'~' ~~qq ~ L ~_~ ~~ Y_ ~r~ ~ ~~ _ MM ~ i +~ ~~ ~ ~s ~~ ~ M N V N j ~ N ~~~~ ~~ Wr °. ~ ~ YVV P~~ V ~ i yyitltlyy •e GOG~~ ~n L Tabls Ge RENTAL PROTOTYPE STACKED FLAT APARTM>9.115 REMAI. INCOI~ AND OPERATING C057S 4%.TV-X CREDITS, TAX-0CEMPT BONDS ASSUMPTIONS ?007 Median Hanehdd Income, Family of four 5 3~ Alfordabla Housing Cost As a % d Income Totals 1 Bedroom 2 Bedroom ~ Bedroer~ 4 Bedroooss Na of Bedrooms 5 Persons 1 3.0 Parsers 4.0 Persons 5.0 Piersats Household Size (1) . 751x. 90% 10094 108% yprs~ Silt )naomclu~usc. Factor S54 ;68 S98 5109 t1tlNtyAlbwancet2) 323 T3 700 100 SO No. ofUnib 773 73 200 300 200 Tohl Bedrooms AEIo0R17141LE RENfS BY INCOME LEVEL 529.513 S3Sr415 539,350 542,498 s73e saes 5~ s1,o62 Affordable ~, eon cs54) cs6e) ts9e>, (S1 o9s cast` Mo~dY ut-~y Albwance ;684 5617 5686 S9S3 AtTordabk l~-ly herd =35,415 ;42,498 (•47,220 550,948 ~ S88s 51,062 51 5 Aifadable Month)y Fiassfng Cost 1534) (S~ (598) (st09) tau: Montldy Udlity Albwance 5891 S994 51,083 51,166 Affordable AAontF-ly Rent NET OPERA77NG INCOME Monthly Affordability LeNeVhio. of Bedrooms Uniu Rent Gn~ss Incurrre 1 Bedroom ~ 5684 30 5817 515,048 524,510 30 2 Bedroom ~ 480 4 Bedroom ]5 f 51 1 St+droan S1 5831 542,381 70.0'% d Units 2 Bedroom 70 5994 083 70 51 169.580 575,810 3 Bedroom 4 Bedroan , 35 57,166 540,810 323 5309,0/4 ~~ 2 Mamaer's Unk S3,708,168 CR0551tfMAC B+ICOME (f185,4081 ~ S.0% Less: Vacarrcles R) ;32,300 ;100 Per Unk MIsC. income 13,555,060 GROSS ANNUAL INCOME LESS: OPERATING EXPENSES S300FuniUmo. 53,600 PerUnidYear 3.0% of Open. Budgst (51,170,000) ((35,100) t.ess: Operating Reserves 5400 Per Unit/Year 15130,000) less: ~ Reserves 52.219,960 NET OPERATING INCOME ) Assume the lesser d Tt;JtiC occupancy ~ndard p.5 Persons per bedroom) and CaBfornia Health and Safety p occupanry standard (one pe-son Per bedroom phn one). n a s ant (z) Sourx County of Orange Housing and Comnxxrdty Services, eRerdve Ocbbar 1, 2~00~6. inAa ~ te psys and basic electri~lty; landbrd d water tuatln ki y p d g ng, an afl elecMc heating, coo in the market area. ate unless ~vatved based on vacancy (3) TG4C roqulres a 5% minimum vacancy r dry dTielln Marde6ilky Cap and lsvera~ed flnancir~ ~~~ Pie C•12 Table C•9 RENTAL PROTOTYPE STACKED FLATAPAitTMENTS DEVELOPMEPR COSTS 496 TAX CR>~ITS, TAX-D(EMPT BONDS Aces (Unlta Plus Perking} 13.00 Na. d Units 325 Total UvingAnaa 319,150 Community Room 0 Tote) Net Square ~ Resklential Units 319,130 Other BuilttingArea 0 Tom Net Scpnre Feet 319,150 Tool Gross Squane Fast 319,150 % ReslderrtW 100.00% Tax Credit Eiig, Balls Totd (100% ResidJ LAND ACQUtSt'T~N 543 Par 5'ita 5F 5?4,350,040 SO $~ M~ORK 320 Pbr 5I6e SF 511,325,600 (11,323,600 UNIT CONSfRUCTK~+1 HARD COSTS 3135 Per SF 549,468,250 649.468,250 CONTdVGENGY 5.0076 of Find Costs 53,039,693 33,D39,693 ARCHhTJGJCONSTR. SUPERVISION .7.00% of Rand Cosh (5,960,072 ;3,960,072 LOCAL LMPACT AND PROCESSING FEES 526.05 Per SF 58,315,308 58,315,30a ALTA SURVEY 53,000 53,000 ENVIRONMENTAL PF~L~SE I 57~ . 57,500 SOILSTESTING 510,OOD ~ 570,000 CONSTRUC110N BOND FEFS/COS75 1.00'16 Pha 5100,000 5693,933 SO CONSTRUCTIONA.FlSE-UPINTEREST 5.50% 15 Months 52,776,637 52,776,637 REAL ESTA7ETAXFS AND INSURANCE 1.60% of Flatd Ccsfs 31,362,302 51,362,302 TTfLEANDCL061NG 615,000 515,000 APPRAISAL FEES 510,000 570,000 REAL ESTATE LEGAL S30,000 312,000 oRCANlzAT10NAL L~cAt. s3oooo So MARKET sTUOr s2soao s25,oao P05'FCONSTRt1CT10NAUDIT 515,000 50 MARKETINCJLEASE-UPSTART-UP 3100,000 ~ OPERATING. RESERVE 3 Morphs Open 5292,500 60 SOFT CAST CC+NTINGENCY 2.00'Xr 5107A17 (107,417 TOTAL DEVELOPMENT COST 5107,937,252 582,437,779 DEVELOPER FEE (1) 15.00% of Dew Coats 51,940,000 ;1,200,000 BONQ/TAX CR)~RADVI90R 531),000 30 TAX CREDTT1IPPUCATION FEE 52,000 50 T+ClrC ALLOCATK)N FEE 4.00% of Mn. Crodit 6156,570 50 SYNDICATK>l+l LEGAL 530,000 50 TOTALPROlEL7COST 5110,09S,Q22 X83,637,779 PE1t UNIT 5338,756 5257,347 PER SF ~.~' {1) As of 2006, the maximum developer fee permitted byTCAC is the {suer of 1596 of developrrrettt ~ or 52 million. The maximum arnouM that can be Included in eligible basis k 51.4 million. Development and tax crept constilUng and syndication coats are included in the developer fee ~- City ofTusda Al~ord~btkyLap uid Leveraged Fln+ndngMal~sis PaeeG.t3 Table c-1o RENTAL PROTOTS'PEs STACKED FU1T APARTMEN75 FINANCING ASSUMPTIONS 4°h TAX CRIDI'TS,TRX-EXEMPT BONDS TAX (3tED1T EQUTIY Total Ellgibk Basis Less: ~.Qualifiad Non-Recourse Financing Lest Eligrbk AmounZVolunbully Excluded Unadj~cted Eligible Basis Adjusted Eligible Basta (High Cost Area Adjustl Qualitled Basal Tax Credit Race Mrwsl Nlc~w. Ci+edRs ~ Crrdft pricing (Ec~lty Raised PerTau Credit Dollar} Federal Tax Credit 6aluky (999fa :. CONSTRUCTION BOND AMOUNT Constr. Loan Amt. Interest Rate Constr. Bond Issuance Costs/Fees Average Loan Balsr-ce--Constrt~ction Construction Period lease Up Period Construction loan Interest--Constructon Construction loan Irrtmest-1.easatlP Net InUerest Cow Bond Issuance Costs PERMANENT BLIND AMOUNT Net Operating Income Debt CoNera~ Ratio . Debt Service Mortgage Tartu interest Rate ~ ~~~ Flnandng Analysis ftfordabllity Gap and Leversged 09'0 130 100°N. 5596 of Agg. Basis 5100,000 Plus 583,637,779 SO 50 583,637,779 6108,729,113 5108,729,113 3.6096 53,914,248 51.05 540,688,609 559,393,300 5.5096 1.0096 60.0096 12 Months 3 Months 51,959,979 5816,658 52,776,637 5693,933 52,219,960 1,25 51,775,970 30 years 7.0096 Page C-14 Table C-11 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS 4% TAX CREDITS, TAX-EXEMPT BONDS C-range Co. 4% 7lueshold Basis Limits, 2008 Unit Size TCAC Basis # of Units omits Total Basis 1 Bedroom 73 5179,727 2 Bedroom 100 5216,800 3 Bedroom 100 $277,504 4 Bedroom 50 5309,157 2 Bedroom Mgr's Unit 2 5216,800 Total Threshold Basis Threshold Basis Boosts Max allowed Plus: Prevailing Wage Boost ?0% 09'0 Plus: Subterranean Parking Boost 7°A 0% Plus: Day~Care Center Boost 29/0 0% ~ Plus: Special Needs Boost 2% ~ 09'0 Plus: Elevator Boost 10% 09'0 Subtotal Boost (1) 399'0 Plus: Energy Efficiency Basis Boost 4% 49'0 Plus: Distributive Energy Boost 5% 0% Plus: Seismic Upgrade Boost 1596 0% Plus: Development lmpad Fees Total Adjusted Threshold Basis Total Unadjusted Eligible Basis Requested Eligible Basis 513,120,071 S21,b80,000 527,750,400 S 15,457,850 5433,600 578,441,921 $0 So 50 50 50 53,137,677 Sa So 58,315,308 589,894,906 S83,637,779 583,637,779 (1) Under 2008 TCAC regulations, the total combined boost for prevailing wage, parking, day care center, special needs and elevator may not exceed 39 percent. City of Tustin Affordability Gap and leveraged Financing Analysis Page C-1 ~~ r_ ~a~€~a~~~ ~ ~ ~ r ~ ~~. ~ ~ ~~ ~ ~ p~~ ~ ~~~~ ~~~ ~~a ~ '(~~~~ yea ~~ A ~ a ~ N Li ~ g ~~A ~ Y a ~~~ ~ ~t ~~r~~ai~= ~~~~ 1~~s~I~~ -A~ g ~~ ~~ ~~~ B ~ ~ 4 _~$~~~~~ a 6Li~ ~ ~ E ~~~y. ~~~~5~ ~ ~~~~~ a~ ~ ~' ~ ~~~ ~ ~ ~ w ~~~ ~ ~~ ~ # ~~ ~~ ~ ~ ~ ~~ ~ ~~ ~ ~ ~ ~~ 8 ~~ w~~ ~ ~~ ~ am n~ flx 5 ~~~~~~~ ~ ~~ x ~ ~ ~ Zt A ~~~ ~ ~~ ~ ~ ~~ d z Wy~$~11~~ ~~~~ ,~~ 3 ~ ~ ~ ~ ;~~II~~1Seo ~fi V ~ bb~ A~ ~ ~ R ~ L'S x ~~ b ~ ~~ x ¢ ~rs~e z ~' ~ ~ ~.6 ~ £ ~ ~~~~~~~ ~ ~ ~~;a~ ~ ~~~~~~i~f~ ~ ~~~I ~e~~ ~~~~ E ~~ ~~ ~ ~~ A ~~ A P .~Fi ~~ ~~~ ~ e a s ~~~~~ ~ ~~~~ p ~ ~~ ~ ~~~ ~~a~~~~~Y~ ~~~~~ S~iGi~H ~1~P ~~ ~ ~ ~ ~~ s ~ ~ ~ ~ Tg ~ ~"~~~ ~ ~ ~~~~~ ~ s~ ~'~ ~" ,~ ~ ~~~ ~ ~ ~ ~~ ~ ~ ~ ~~ Q?yam S`Q~W~ }}`~[~1 T f` ~` N C O ~ W V1 1. ~~~~~ $ ~~s~'~ N ~i :i M vWv MMMyy W ~~~ ~ N N~~ ~~~~~ ~ ~g~~~ M r {y» yy~~ ~ ~~W~1~ppp ~ ~ N pvv~ N ~~~+pp! V O~P~ ~ OHO V+N M ~ r r ~~ :3~. ~ ~ ~xN oo a V ~ ~.1~ yP~W~V ~25~-T N ~ M ~ ~ ~xpp7Sr~~ ~ ~N~~}g~~ b ~O a~ ~ OONa Kr W QiM OHO ~ ~ GtilA O V Y1 P i ~ ~ ~ ~O ~1 ~W~pp ~O iJ Q NN yppy,~~~ W~ T I. W ~ 4 0 W ~ V A T N i i M t 11 PPPPP N ii N 1{f A7 a@5~~~ ~ N~~~4 e a V~ j V N j r p V r W ~QQO WO V ~ ~ ~ v M ~ O N ~ y- M M My N O W N~ i v ~ V pppp~~ y. yy ~ C p bp i M O a o .~ ~ O O P V A ~ ~~' ~m ~ ~ ~~~~ T? Y ~ M ~~. ~~ ~~ ~~ 1 ~~ 7 W ~ ~ ~ ~~ $~~ ~ ~ ~~ • V ~ ~ ~ v w ~ N NNu ~~ o2S+~v~' ~'645~e _ N ~~~~;~ ~ ~ ~M~ V,~Q VN ~ y N,(Bd pW~ ~~ ~' v"~ O g N g N N N P N M# ~ ~ W v p y~ •, ~ ~v+ lv MM N O~~~Y ~, NGOOM ^' ~~~ q ~ u~ ~ L ~,i s ~g O~s L,,f v~ ~' OO~~u N W~~ ~ ~ W ~Wi Wg gVV a $SE~ W O Y' ~ ~w~g~~ # ~MAf a M NN ~ yy~~ VQ+~~~p M j e C N ~ T~ O• W M N N ~ yW~ N ~ y~ ~yM~p ~IMp~ V~~p a W N N Q+ N + Wm y O11 ~ ~~~ S O~ N N N N ~ 4l ~ a G =yM~y~~vv~~p y1 ~ N O G W N ONN VI N J ~ej N Ni ~_ r r gN ~ ~{7QpY ~~~~ 000 N O ~ W ~O A ? ~ ~ ~ ~~ ~ ~~ ~ ~ ~~ T W~ ~ ~ ~ r ~ ~ M V g~ IJ (y Qgv7n'a~ ~ ~i Z, g°g i^ ~~~ ~ _ N.P + a ~~: ~ ~gl3~io`!J w ~~ u N ~~ ~ ~ ~ o~W~a N ~lS~S~s M ~ ~ ~ °' ~~~ ~ ~ ~~ N ~3SN~~ ~ W~~~~ j ~ N y- ~ 8 N OI O V +~ ~ ~M p~V DEG.' V N ~ O p ~ W ~ ~ M r r ~1V~ ~ O ~O ~O W ~ ~ ~~p~~ ~ ~~g~~ r ~ M M P ~~~ ~ ~ ~~ ~~N~~ g ~~~~~ ~ ~ ~ M ~, W 7L61e G14 RENTAL PROfOTYtE: STACKED FUT APARTMENTS MHt LOAN UMTTS 2007 lA~ ~ Ueib • 61HP Lain ilmil Ter Urdt Ma~dmiu AUit Lou tMit Size ~ d Udh 30%AMl 60% A~ 30% AMl 60% AMI 30% AMl 6016 AAY 1 Bedroom 73 22 51 5710,656 d8 545,000 000 545 52,435p92 53.71x,140 52,295.000 53,150,000 54,730.091 56,86e,140 2 g~pgp 100 30 30 70 70 51I3,9 5136.152 . 545.000 54,085,460 S3.1S0,000 57,235,a6fl 3 ~pp~n 100 /5 35 ;146;697• 545.000 52,200,455 S1,S7S.000 53.775,455 4 Bedroom SO 236 512,439,147 510.170,x00 522,609,147 ~I 323 97 ~ ~~ Pam GT2 AlradebMlr Grey snd I.avipd flnwcYa AnilyrN Table C-1S RENTAL PROTOTYPE: STACKED FLAT APARTMENTS RENTAL INCOME AND OPERATING C06TS MHP PROGRAM, TAX-EXEMPT BONDS, 4% TAX CREDITS ASSUMPTIONS 2007 Median Household Income, Family of Four #78,700 Affordable Housing Cost Asa % d Income 3096 No. d Bedrooms Totak 1 Bedroom 2 Bedroom 3 Be~oom 4 Bedroom Household Size (1) 1.5 Persons 3.0 Persons 4.0 Ftrsons 5.0 Persons Household Size InconteAdjust. Fauor 75% 9096 10096 10896 Utility Allowance Q) f54 568 S98 5109 No. d Units 323 73 700 100 50 Total Bedrooms 773 73 200 300 200 AFFORDABLE RENTS BY INCOME LEVEL MHP B 130961 Affordable MontMy Housing Cost 5456 5547 f632 5705 Lem: MonthlyUdlityAllowance (5541 (S68) (S98) (S1t» Affordable Mond+ly Rent 5402 5479 5534 5596 4n Annual Gross irtcorrre 535,415 (42,498 ;47,220_ 550,998 ANordable Monthly Housing Cost f885 57,062 (1;181 51,275 Less: Monthly Utility Albwance (554) (S68) (598) {51091 Affordable Monthly Rent 5831 5994 f1,063 57,166 NET OPERATING INCOME M Affordability LevelMo. d Bedrooms Unib Rent Cross Intonte MHP B 130'961 1 Bedroom 22 5402 58,844 30.0°X. d Ur>tfs 2 Bedroom 30 5479 514,370 3 Bedroom 30 5534 516,020 4 Bedroom 15 5596 S8,940 60%dMedian 1 Bedroom 51 (831 (42,381 70.0%d Units 2 Bedevom 70 5944 (69,580 3 Bedroom 70 57,083 (75,810 4 eednocm 3S 57,166 (40,810 Average Affordablttty 50.99% Totals 323 5276,755 Manager's Urdt 2 GROSS RENTAL INCOME 53,327,060 Less: Vacancies p) 0 5.096 15166,053) Miscei. Incarrte 5100 P+er Un1t (32,300 GROSS ANNUAL INCOME 53,187,307 LE55: OPERATING EXPENSES 5300lunlthrto. (3,600 Per Unk (51,170,000) Less: Operating Reserves 3.0% dopes Budget (535,100) Less: Replacernertt Reserves (4) 0.6% dConstruction Costs (f37t,012) NET Ol'ERATWG ItJCOME (1;611,195 (t) Assumes the lesser d Ttr1C occupancy standard (1 S persons per bedroom) andtai ifornia Health and Safety occupancy standard (one person per bedroom pitrs one). . (2) Source: County d Orange Housing and Community Services, effective October 1, 2006. Assumes tenant pays all electric heating, cooking, and water heatlng and bask electrklty; tandbrd pays water and trash. p) TG4C requires a 5% minimum vapncy rate unless waived based on vacancy data in the market area. (4) MHP requires replacement reserves tqual m D.6% construcdwr costs unless otherwi se approved. City of Tustin . ~A'orda~lity Gap and le~eragsd FlrnrxingArolysb Pagrt G7 Table C-16 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS DEVELOPMENT COSTS MHP PROGRAM, TAX-EXEMPT BONDS, 496 TAX CREDITS Acres (Units Plus Parlangl 13.00 No. of Units 325 Total Living Area 319,150 Community Room Total Net Square Feet, Residential Units 0 319,150 Other Building Area 0 7ota1 Net Square Feet 319,150 319,150 Total Gross Square Feet Tax Credit Elig. Basis % Residential 1 ~•~ Total (100% Resid•1 LAND ACQUISITION SITE WORK UNR CONSTRUCTION HARD COSTS (1 } CONTINGENCY ARCktJENGJCONSTR. SUPERVISION LOCAL IMPACT ANO PROCESSING FEES ALTA SURVEY ENVIRONMENTAL PHASE 1 SOILSTESTING CONSTRUCTION BOND FEESICOSIS CONSTRUCTION/LEASE-UP 1NTi:REST REAL ESTATE TAXES AND INSURANCE TITLE AND CLOSING APPRAISAL FEES REAL ESTATE LECiAI ORGANI2AT1pNAL LEGAL MARKET STUDY pC>ST{ONSTRUCTION AUDIT IvtARICE'TING/I.EA.SE-UPSTART UP OPERATING RESERVE 543 Per Site 5F S24,350,040 SO ;20 Pier Sits 5F 511,325,600 511,325,600. 5194 Pier SF 561,835,313 561,835,313 596 of Hard Costs 53,658,046 53,658,046 7% of Hard Costs 55,960,072 55,960,072 S26.05 Per SF 58,315,308 58,315,308 S3,000 53,000 ;7,500 57,500 510,000 510,000 1.00% Plus 5100,000 5771,610 S771,610 5S0% 15 Months .53,139,778 53,139,778 1.60% of Hard Costs 51,362,302 51,362.302 515,000 515,000 , ;10,000 ;lo,ooo ;30,000 512,000 530,000 SO 525,000 525,000 515,000 Sa 5100,000 So 3 Months Oyer 5292,500 50 ~ may S110.384 ;110,384 DEVELOPER FEE (2) 15.0096 of Dev Costs yi,~+uuw a ~,~w.wu BONDlTAX CREpITADVISOR ..530,000 50 TAX CREDIT APPLICATIC>N FEE S2,000 So TCAiC ALLOCATION FEE 4.0096 of Mn. Credit S183' ,008 SO SYNOICAT~N LEGAL 530,000 SO TOTAL USES 5723,551,461 597,760,912 PER UNIT $380,138 5300,803 PER SF ~ 5387.13 (1 } Estimated hard costs, assuming prevailing wages, at a 25% inuease in hard costs over non-prevailing wage costs. (2) For MHP projects with tax credits, the difference between the maximum developer fee underTCAC: ;1,940,000 and the maximum under MHP: $3,137,500 be deferred and paid only out of cash flak Crty otTustin Page C-1 AfFordabNlty Gap and Leveraged FinancingMalysis Table C-i 7 RENTAL PROTOTYPE: STACKED FLA7APARTMENTS FINANCING ASSUMPTIONS MHP PROGRAM, TAX-EXEMPT BONDS, 4% TAX C&EDITS TAX CREDIT EQUITY Total Eligible Basis Lest: Non-Qualified Non-Recourse Fnancing Less: Eligibk Amount Valuntadly Excluded Unadjusted Eligibk Saris Adjusted Eligible Basis (High Cost Area Adjust) Qualified Basis Tax Croak Rant Annual Alkyw. Cat Tax Cr+sdR Pricing ('Equity Raised Per Tax Credit Dolhuj Federal Tax Credit EcPrity (999611 'CONSTRUCTION BOND AMOUNT Constr. loan Amt. Interest Rate Constr Band Issuance Costs~Fees Average Loan Balance-Construction Consbructlon Period Lease Up Period Construction Loan In~r+est--Cons>uction Construction lean Inteerest-lease~Up Total IrrLerost Cost Bond issuance Costs PERMANENT BOND AMOUNT Net pperating Ir>come Debt Coverage Rath Debt Service Interest Ratr Max. Mortgage Amount (DCW Gry ofTu~fn ~rro~uny c:~ ~,aler~a Fu,,,~c~gnna-ysts 094 130 100% 5596 of Agg. Basis 5100,000 Plus 597,760,912 SO SO 597,760,912 5127,089,186 s127,o69,1 es 3.6094 54,575,211 51.05 547,559,315 567,161,024 5.5096 1.0096 60.0096 12 Montle 3 Months 52,216,314 5923,464 53,139,778 5771,610 51,611,195 1.25 51,288.960 30 years 7.00% 516,145,037 Page C-25 Table C-18 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMIT'S MHP PROGRAM, TAX-EXEMPT BONDS, 49'o TAX CREDITS Orange Co. 4%Threshold Basis Limits, 2008 TCAC Bash Total Unit Size # of Units limits Basi9 1 Bedroom 73 $179,727 $13,120,071 2 Bedroom 100 5216,800 521,680,000 3 Bedroom 1 ~ 5277,504 327,750,400 4 Bedroom 50 5309,157 315,457,850 2 Bedroom Mgr's Unit 2 5216,800 ;433,600 Total Threshold Basis 578,44'1,921 Threst~ld Basis Boosts Max allowed 20% 20% 515,688,384 Plus: Prevailing Wage Boost 0% 50 Plus: Subterranean Parking Boost 796 $0 Plus: Day Care Center Boost 2% ~° ~ 0% 50 Plus: Special Needs Boost 2% ° OtyO ~ Plus: Elevator Boost 10 ~ Subtotal Boost (1) Plus: Energy Efficienry Basis Booms 39°~ 496 4% 53,137,677 Plus: Distributive Energy Boost 5°l~0 096 ~ 50 50 Plus: Seismic Upgrade Boost 15% O 58,315,308 Plus: Development Impact Fees Total Adjusted Threshold Basis 5105,583,290 Total Unadjusted Eligible Basis 597,760,912. Requested Eligible Basis 597'760'912 t1) Under 2008 TCAC regulations, the total combined boost for prevailing wage, parking, day care tenter, special needs and elevator may not exceed 39 percerrt. City of Tustin page ~_~ Affordability Gap and Leveraged Financing Malysis ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~~~ ~~ ~ ~;~ ~~ ~ ~ ~ ~ ~~~ ~ ~ 89nr i M N y O + R A~ A ~ A ' ~~ ~~~~~~~~ ~ ~~~~5 S ~~~~~ ~i ~~ g~n~~~ ~ ~1~~~ y A~ pgY ~~ ~ p ~ ~ ~ ~$~_g~~ ~ 9 ~ ~~~ y Jjsf~ x 1 R ~~ F ts~ ~8m~~~~~ ~ ~~T e L~~ ~~ ~s~~~~~~-~ ~ ~ ~~~ a ~p ~s~e~~~ ~ ~1~~ ~~ ~~ ~~~#~~~~~~~ ~ ~ ~~~( ~p~~ ~~~~ {~ ~~~i~~~~~~( ~ ~ r r ~ e ~i f~ ~#~ ~ A a 6 ~' S 9 ~6~ ~~ ~~$ a x r~x ~~ ~~~~~~~~ ~ ~~g~ ~_ ~ ~ x ~~ ~a ~~ ~~~ ~ ~~~ ~ ~ ~ a~~~ ~~~~ g~ ~~~~ a n gz. ~g~~~~~~~ ~ ~~~~ ~ ~ ff ~ ~~~~~~~ g~~~~ ~~ ~g~~~~g~ ~~~~ M ~p A Y. g~ ~lS~~~~~8 ~ ~~~ $ ~ ~ ~ ~~-~~$8~ ~ ~~ ~tl ~~~~~~~~~~~ ~~~Q~ is ~ ~9~ ~~ ~~ ~ ~~~ ~~~~~s~w~~~ ~ .~~ ~~ ~~ E ~~ ~~~~€~g~~ ~~Z~ s~ ~~ '~~~E ~~ ~~~~~~~~~~I & ~ ~~~~ ~~~~ g ~~ ~' ~~~r e~ ~ ~~ ~ ~ are ~ ~ #s i fl `s~~ # ~ a B~ ~~5~~s$~ ~ ~Q~ ~ ~ ~x ~~ g~~~t ~~~ =i~~~ ~~ ~ ~ y1 3 Y 7~{yayfl ~{ /yw{~ r p 3 p~ ~ W N~~ O~ Y ~ ~ ~~~ { r ~i _P~~~ iS~ ~~~ ~~~~~~ ~ ~ ~~_ g rr$$~~~ ~ ~ ~d 8~~~~~~a~ ~~~ n Y ~~ ~~ ~ ~ ~ ~ ~ ~ M ~ ~ ~ ~~ ~ M ~ rJ ~g~~g ~ ~ga~~ ~~~ ~~ x~ ~~n x ~ ~ LL~ r~ ~ ~~,,,, iw~W+•~ ¢ Li ~~8~ M v ~~± rN ~ ~~~ Y' ~ V ~ O a V G ~ V ~ ~ VV }~~f yp+ p~ • N~~ ~ 1 J y Ii P H ~ • MM p T V ~ '~ O ' N .7 ~ ~~ ~ ~ ~ ~ A ~.V M ~ M i ~ O V r ~ M M~ M N~ M ~ V ~MM Vt(~~i( V ~ 0 0 N M ~ ~N7}i.,,M Vpp . ~ p N a N ~~ ~j 1~ap y~~w ~ V p N N D 7 A ~~ s~~ ~ ~~~ ~~~~ ~ ~~ ~~~~ ~ ~ ~~~~.~ ~~§~ ~ ~ ~~ ]s. ~ 3m M~ N g~ ~ ~7~~~ V MM M ~~ ~ ~ ~~ . ~~w~ ~ ~~~~~ ~ M '" ~ ~3 yr ~ w~ ~ ~ ~~§~~ ~ ~~~M~ ~ ~~~ o ~ ~~ p~gs~ ~ ~~ga~ ~ M M j _~ w ~ r~~ ovJ, VM ~ ~ ~ i M r ~ ' • Jy 7y~~y y ySj VM~w f.Ji P~N N y ~ OO~iOJ ~ j r ~ ~ = ~~~ M~~S.+~~ ~ ~ZS iSOM N M r ~ N ~ ~~ ~ ' ;,~ a~§w~ ~ ~~~~~ r ~~ s S i( }3 i ~1~}~~ f ~i€~~$ ~~~ a 4~~6 i a ii ~ ~~~ ~. §~ ~ ~ u ~~~~~ ~ ~~gog ~~ ~ ~~ ~ V ~O ~ ~~. §ggcs~L-, ~~~~ ~ ~ ~ ~ ~ ~B§~~ #~~~~~ (N ~ M rte. i0~/ 00~~ ~ § ~ ~axx ~ ~~ ~ ~~~~ ~g ~ ~ ~~~ ~ M~ b 7L$Y, p N ~ ~ ~ M S p 7 V APPENDIX B REFERENCES CITY Off' TLISTIN HOUSING ELEMENT TECHNICAL MEMO~NEUM 2008 This page intentionally left blank CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 REFERENCES A. Documents 8. 1990 Census Report. U.S. Department of Commerce, $ureau of the Census. 9. 2000 Census Report. U.S. Department of Commerce, $ureau of the Census. 14. Comprehensive Housing Affordability Strategy for Fiscal Years 2407-2008 to 2017-2018, David Paul Rosen & Associates (DRA). 11. Marine Corps Air Station (MCAS) Tustin Specific Plan/ Reuse Plan, Adopted February 2(103, Amendments through June 2007. 12. Cali#ornia State Department of Finance, 2{~7. 13. Demographic Profile and Survey of Homeless Persons Seeking Services in Orange County. The Research Committee of the Orange County Homeless Issues Task Force, 1999. 14. Southern California Association of Governments, Regional Housing 3~leeds Assessment, 2007. 15. City of Tustin, Zoning Ordinance. 16. City of Tustin, General Plan, as amended January 16, 2001. 17. Third Five-Year Implementation Plan for The Town Center and South Central Redevelopment Project Areas (FY 2005-06 to 2009-2010), Tustin Community Redevelopment Agency, December 2004. 18. Final Environmental Impact Statement/Environmental Impact Report (EIS/ EIR) for the Disposal and Reuse of MCAS-Tustin (Program EIS/ EiR for MCAS-Tustin), January 16, 2001. 19. City Council Staff Report, 20. Response to Comments, Final Volume 2 and 3 of Final Environmental Impact Statement/Environmental Impact Report (EIS/ EIR) for the Disposal and Reuse of MCAS-Tustin. 21. State of California, Department of Housing and Community Development, Website. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 B. Persons and Organizations 1. Christine A. Shingleton, Assistant City Manager Tustin Community Redevelopment Agency (714)573-31x7 2. Elizabeth A. Binsack, Community Development Director Community Development Department, Tustin (714) 573-3031 3. Douglas C. Holland, City Attorney Woodruff, Spradlin & Smart (714)564-2642 4. Jerry Craig, Redevelopment Program Manager Tustin Community Redevelopment Agency (714)573-3121 5. Kimberly McAllen, Redevelopment Project Manager Tustin Community Redevelopment Agency (714) 573-3128 6. justina Willkom, Senior Planner Community Development. Department, Tustin (714) 573-3115 7. Reina Kapadia, Assistant Planner Community Development Department, Tustin (714)573-3118 8. Lieutenant Steve Lewis Tustin Police Department (714) 573-3271 9. David Paul Rosen & Associates (DRA) Nora Lake-Brown, Principal 3941 Hendrix St. Irvine, California 92614 10. Dawn Lee, Executive Director Orange County Partnership (714) 288-4007 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 11. Robert Stiens Tustin Community Foundation (714) 777-453 12. Karen Roper, Homeless Prevention Coordinator Orange County Housing and Community Services Agency (HCS) (714)4$0-2&41 CITY O~ TUSTIN HOUSING CLEMENT TECHNIOAL M~MORANI~UM 2008 'This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 APPENDIX C MAJOR EMPLOYER5 IN Ti3STiN CITY OE TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2408 This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 LIST OF MAJOR EMPLOYERS IN TUSTIN, CA Company/Address~/Telephone No. Emp. Product/Service Tustin Unified School District - (714) 730-7301 1,886 Education 300 South C St -Tustin 92780 AT&T - (714) 259-6667 1,300 Telecommunications 1442 Edin er Ave- Tustin 92780 Ricoh Electronics, Inc - (714) 259-1220 1,038 Manufacturer 1100 Valencia Ave -Tustin, 92780 Rockwell Collins - (714) 317-8102 700 Manufacturer 14192 Franklin Ave- Tustin, 92780 Cherokee International - (714) 544-6665 330 PowerSupplies 2841 Dow -Tustin, 92780 ADC Telecommunications, Inc - (714) 259-7729 15621 Red 300 Telecommunications Hill Ave -Tustin, 92780 E ui ment Balboa Instruments - (714) 384-0384 300 Electronic 1382 Bell Ave -Tustin, 92780 Manufacturer Toshiba America Medical Systems - (714) 730-5000 2441 300 Distributor, Medical Michelle -Tustin, 92780 E ui ment City of Tustin - (714) 573-3000 300 Government 300 Centennial Wa -Tustin 92780 Costco Wholesale - (714) 838-7895 241 Wholesale Trade 2655 El Camino Real -Tustin 92780 Woodbridge Glass Inc - (714) Q.,~Q~^^~4-" 205 Glass & Glazing Work 14321 M ford Rd -Tustin 92780 Cost~o Wholesale - (714) 338-1943 200 Wholesale Trade 2700 Park Ave -Tustin 92780 Logomark, Inc. - (714) 675-6100 200 Wholesale Trade 1201 Bell Ave -Tustin 92780 SMC Corporation of America - (714) 669-0941 200 Manufacturer 14191 M ford Rd -Tustin 92780 Tustin Hospital - (714) b69-5880 200 Hospital 14662 New rt Ave -Tustin, 92780 Vitatech International, Inc. - (714) 832-9700 178 Pharmaceutical 2832 Dow Ave -Tustin 92780 Pre orations Home Depot - (714) 838-9200 154 Retail 2782 El Camino -Tustin, 92780 Straub Distributing Company - (714) 247-7300 150 Wholesale Trade 2701 Dow Ave -Tustin, 92780 Dawn Food Products, Inc - (714) 258-1223 150 Wholesale Bakery 15601 Mosher Ave -Tustin, 92780 Durabag Company Inc - (714) 259-8811 150 Manufacturer 1301 Santa Fe Dr -Tustin, 92780 Tustin Unified School District - (714) 730-73ff1 -300 South 1,886 Education C St -Tustin 92780 Source: City of Tustin Website, October 26, 2007, Tustin Chamber of Commerce,1999, Tustin Community Development Department, and Orange County Workforce Investment Board 2007 CITY OF TUSTIN TECHNICAL MEMOPANEUM HOilSI1VG ELEIVIENT 2008 This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 APPENDIX D ORANGE COUNTY BUSINESS COUNCIL 2007 WORICF~DRCE HOUSING SCORECARD CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT 2008 .~~~w ~, ~• '~~ •~r~rr~~ a ~ r f a ~ ~r,ry ~v~,d. _ ~ d ,~ 3QiR- ~ ,,~,. j _ ~ `~ x ,~~ ~+r~~S". - .i ~~~~ F4~ ~~_, ,~ ~ ;., ~s q• ~ jam, +~+~r?-~~-T + -~~; 4~~ ' ~ ~: ~, n rr - ,,, r, ~+ ,., s~ tip 4r ~ ~~7~~ ~$^) -~' sic; -~ ~~y' ~ ' .l~Fu..~. • ~ F, i' h ~ ~~ ~~ '~~ a x t r ~~,yy ~ ti..RR.~ a y .~ -1 M +.-SJ ~ ~ - _,,r.~J. 7 =_~ :TY '! ~. w+{T _.. .... ~ f .1 ~1 ~~"_,- .. P fi ~$J~ ,.. _ r' r _. _.. ....~~ ~_ ~.. +--i ~~~~ ORANQ.E COUNTY "•:.~ BUSINESS COUNCIL SPECIAL ACKNOWLEDGEMENTS BankofAmeric ~~~~. Orange County Business Council thanks Bank of America for generously supporting the corporate underwriting of this inaugural edition of the Workforce Housing Scorecard. OCBC INVESTORS Further, the Business Council thanks its investors for their generous support, without which our advocacy efforts would not be possible: Adorno, Yoss, Alvarado & Smith Advanced Medical Optics Allergan,inc. Automobile Club of Southern California Bank of America California C & L Refrigeration Corporation C.J. Segerstrom & Sons California Bank & Trust, Orange County California State University, Fullerton Carter & Burgess, Inc. Center Club CH2M Hiil, Inc. Chapman University Chevron Children and Families Commission of Orange County Cisco Systems, Inc. Citizens Business Bank City of Aliso Viejo City of Anaheim City of Brea Economic Development Dept. City of Fullerton City of Huntington Beach Economic Development City of Newport Beach City of Santa Ana City of Westminster Clean Energy Coast Community College District County of Orange -County Executive Office Cox Business Services, Orange County CT Realty Corporation Earthlink Municipal Works Edwards Llfesclences Corporation Elsinore Homes, Inc. Experian Farmers & Merchants Bank First American Title Company Fluor Corporation Ford Motor Company Freedom Communicatioru Inc., Metro Division Gibson, Dunn & Crotchet LLP Hoag Memorial Hospital Presbyterian Hospital Association of Southern California Hyatt Regency Irvine IBM John Wayne Airport KB Home KOCE-TV Lennar Homes LSA Associates,lnc. Manatt, Phelps & Phillips, LLP Merrill Lynch Michael Brandman Associates Morrison & Foerster LLP New Century Financial Corporation Northwestern Mutual Financial Network, The Waitos Group Nossaman Guthner Knox & Elliott, LLP Nutrilite, a Division of Access Business Group Oce Imagistics, Inc. Orange County Business Journal Orange County Department of Education Orange County Performing Arts Center Orange County Sanitation District Orange County Teachers Federal Credk Union Orange County Transportation Authority O'Shea, Divine & Company, Inc. Pacific Life Paul, Hastings, Janofsky & Walker LLP Porter Novelli Poseidon Resources Corporation PricewaterhouseCoopers LLP Quiksilver R.C. Hobbs Company, inc. Rancho Mission Viejo, LLC Rancho Santiago Community College District RBF Consulting Right Management Rutan & Tucker, LLP SDG&E and The Gas Company Siemens Corporation South Orange County Community College District Southern California Edison Company St. Joseph Health System Strategic Resources Alliance, Inc. Sukut Construction, Inc. Taco Bell Corp. Telelogic North America Inc. The Boeing Company The Disneyland Resort The First American Financial Corporation The Irvine Company The PSI Merage School of Business/UC-Irvine The Robert Mayer Corporation The Showpros Group, Inc. Toshiba America Electronic Components, inc. Toshiba America Informatbn Systems, Irx. Transportation Corridor Agencies Tustin Ranch Golf Club U.S. Bank UC Irvine Union Bank of California UNISYS United Parcel Service Vineyard National Bancorp Vons, A Safeway Company Vulcan Materials Company, Western Division Washington Mutual Wells Fargo TABLE OF CONTENTS I. FOREWORD AND ACKNOWLEDGMENTS .................................................................1 I1. OVERVIEW ........................................................................................................... 8 III. DEMAND TRENDS: POPULATION, EMPLOYMENT, AND INCOME APPRECIATION IN ORANGE COUNTY (1991-2005) ........................................................................10 IV. SUPPLY TRENDS: HOUSING GROWTH IN ORANGE COUNTY, 1991-2005 .............13 V. ORANGE COUNTY IN 2030 ................................................................................21 VI. ORANGE COUNTY BUSINESS COUNCIL WORKfORCE HOUSING SCORECARD........28 VII. WORKFORCE HOUSING SCORECARD: METHODOLOGY ......................................33 OCBC Workforce Housing Scorecard 2007 Tabie of Contents ... - Table of Contents OCBC Workforce Housing Scorecard 2007 Skyline ai MacArthur Place/ City of Santa Ana OCBC Workforce Housing Scorecara!• A User's Guide The Scorecard examines the state of housing in Orange County as it pertains to afforda- bility, density, population, and housing unit supply numbers, as well as the relationship between jobs and housing units. The report tracks these trends on both at the county and city level. The Scorecard collected and analyzed the raw data and their implications to enable you to better understand the state of housing in Orange County. To assess the state of hous-. ing in your city, you also need an understanding of housing in surrounding cities, as well as the wider region. Toward maintaining Orange County as a desirable and affordable place to live and work, the Orange County Business Council Workforce Housing Scorecard presents a picture of the state of housing that intends to spur debate and action on housing supply and afforda- ility. Foreword and Acknowledgments In accordance with its mission to assure Orange County's economic prosperity while maintaining a high quality of life, the Orange County Business Council (OCBC), with major sponsorship from Bank of America, is releasing the 2007 edition of the OCBC Workforce Housing Scorecard. Commissioned by the Business Council's Workforce Housing Committee and OCBC investors and partners, including the Orange County Association of Realtors, La- guna Board of Realtors, IMPAC, Orange County Clerk- Recorder, Building Industry Association, United Way of Orange County, and Orange County Community Founda- tion, this report aims to spur a constructive dialogue among stakeholders in pursuit of a robust and integrated business community solution to Orange County's scarce supply of affordable housing for its workforce. The OCBC Workforce Housing Scorecard examines the state of the county's housing from a broad, long-term, employer-based perspective. Only such an approach to affordability can uncover the critical solutions the county needs to ensure prosperity in the long term. As such, the report seeks answers to several pressing questions: ^ How and when did housing become so expensive? ^ What will the state of housing in Orange County be in 2030? ^ What role are Orange County cities playing in affordability? ^ What actions or policies can be taken to make housing more affordable? To determine how and when housing became so expensive, the Scorecard examines the history of residential building and growth in Orange County, exploring trends related to population, employment, income appreciation, density, and the ratio of jobs to housing units. The report also explores NIMBY- ism,' the fiscalization of land use, and other factors that have constrained housing development. The exploration of past trends moves to a discussion of their impacts on Orange County's long-term future. If present supply and demand trends continue, the ratio of jobs to housing in 2030 will be se- verely unbalanced. As a result, affordability will continue to decline, many more residents will be priced out of the market, and the number of workers commuting into the county from beyond its borders will continue to grow. Particularly troubling for the Orange County economy is the trend of people ages 25 to 44 leaving the County to find affordability elsewhere-not just to surrounding counties such as Riverside and San Ber- ' NIMBY, or "Not in my backyard," obstruction tactics. OCBC Workforce Housing Scorecard 2007 Foreword and Acknowledgements ... - The report casts acounty-wide overview of the balance of jobs to housing, as well as a breakdown by city. Because each city plays a critical role as a land use decision maker in the supply and affordability story, the Scorecard evaluates each Orange County city on several important criteria, including: • Total job growth, • Total housing growth, and ^ Job growth as a percentage of county job growth, and changes in density. Cities are ranked in a composite scoring of their performance on the aforementioned criteria, both his- torically (1991-2005) and looking forward (2005-2030), allowing for comparisons of cities. This exercise establishes an important baseline from which cities-and their residents, elected officials, and business leaders-can increase future supply and affordability in line with their workforce demand. To support cities' housing plans, the Business Council will release a Toolkit later in the year with ex- amples of successful affordable housing programs and policies, reports and studies related to housing affordability, as well as potential legislation neces- sary to address some of the existing barriers to increased housing supply. The Orange County Business Council Workforce Housing Scorecard and the OCBC's long-term com- mitment to this issue is but one part of a larger movement for increased supply and affordability that must take hold in Orange County to ensure contin- ued, long-term prosperity. This Scorecard is a starting point to foster a broad and sustained dia- logue on long-term housing supply and affordability. One rewarding aspect of producing this report has been the reassuring discovery that there is already a dedicated and diverse pool of agents from the pri- vate public, and nonprofit sectors seeking to The forthcoming Toolkit will complement this re- port by demonstrating a collection of best practices in housing policy, as well as descriptions of future strategies for change, such as: ^ Financial Literacy &Homebuyer Education Programs ^ Flexible Loan Products ^ Downpayment Assistance Programs ^ Community Land Trusts ^ Ground Leases ^ Housing Trusts • Density Bonuses and Parking Variances ^ Employer-Assisted Rental &Homebuyer Programs increase the supply and affordability of housing. To this end, the Orange County Housing Scorecard would not have been produced without the generosity of our main sponsor, Bank of America, as well as our aforementioned partners. In addition, representatives of all 34 cities contributed their time to validate the information presented in the report. What's more, the methodology, analysis, and style of this report have been greatly en- hanced thanks to the critical insights of a distinguished panel of peer reviewers, namely: Dr. Victoria Basolo, Associate Professor in the Department of Planning, Policy, and Design at the University of Cali- fornia, Irvine (UCI); Dr. Marlon Boarnet, Professor and Former Chair of Planning, Policy, and Design at . , , Foreword and Acknowledgements OCBC Workforce Housing Scorecard 2007 nardino, but increasingly out of state. These people are the both the present and future workforce of Orange County, the foundation necessary for long-term economic sustainability and business competi- tiveness. As the report will demonstrate, high housing costs are driving these people out of the county in increasing numbers. UC Irvine; Ray Silver, Executive Director, Orange County League of Cities; Dr. Scott Sollens, Professor and Former Chair of Planning, Policy and Design at UC Irvine; Dr. Kerry Vandell, Professor and Director of the Center for Real Estate at the Merage School of Business (UC Irvine); and William Fulton, Senior Scholar at the School of Policy, Planning, and Development at the University of Southern California and CEO of Solimar Research Group. Finally, constructive guidance for the project was provided by the Orange County Business Council's Housing Committee, chaired by Roger Hobbs and including Lucy Dunn, Todd Priest, and Kris Murray. The technical work of the report was led by Dr. Wallace Walrod, Director of Research and Communication for the Orange County Business Council and his team of research associates, namely: Lee Morrison, Roger Morton, Nicholas Poggioli, Adam Meyers, Alex Warren, and Dan Gorczyca. This report was de- signed by Danielle Bates of the Orange County Business Council. OCBC Workforce Housing Scorecard 2007 Foreword and Acknowledgements .. + - I I. Overview The subject of this report is workforce housing, one of OCBC's three key initiatives (along with infra- structure and workforce development/education). How do we define the scope of workforce housing? From the OCBC and general business community perspective, it is our county's responsibility to house Orange County Business Council's Housing Agenda The release of this report is just one of many initia- tives planned to advance workforce housing. Following the June 2007 briefing of this report, the Orange County Business Council will roll out addi- tional resources and initiatives, including: • Release of OCBC Housing Toolkit • Feasibility analysis of infill opportunities at the city level ^ Analysis of housing unit "bleed" during the approval process ^ Housing Conference for Elected Officials • State legislation to increase incentives and our working individuals and families adequately. There are several important components of hous- ing policy, including reducing homelessness, reducing poverty, and accommodating the needs of our senior citizens and other vulnerable popula- tions. While these are important issues in their own right and the subject of many studies and re- ports, the focus of this report is fundamentally different. The scope of this report is concentrated on the availability of housing as a fundamental component for sustaining, if not increasing, Or- ange County's economic competitiveness. remove barriers The state of the county's housing in Orange • Second edition of housing scorecard in two County can accurately be described as an unin- years tended byproduct of an unprecedented period of prosperous growth-an amazing success story of sustained economic growth and job creation by the Orange County business community. In the last 15 years, Orange County has grown jobs at a rate of nearly 10 times that of Los Angeles County. During the same period, Orange County created more than 15 percent of the state's jobs while accounting for less than 9 percent of the state's population. The basic insight that Orange County has evolved and is evolving from a suburban to an urban place is not new. As far back as 1986, Mark Baldassare's Trouble in Paradise: The Suburban Transformation in America explored the emerging, more urban sociological pressures that Orange County was just be- ginning to experience. The following passage reflects many of the trends affecting Orange County: "Decades of rapid growth and industrialization in suburbia have created a more diverse popula- tion, land-use mix, and activities. These have caused a new life-style and, with it, new problems. There are several constants in suburbia which have made the transition from the past to the present most difficult. One is that attitudes and preferences of the suburban residents, on is- sues such as housing and transportation, have not changed to reflect the current situation."2 Baldassare wrote that passage in 1986, when Orange County's population was just over 2 million resi- dents. Fast forward to 2007. s Mark Baldsassare, 1986, Trouble in Paradise: The Suburban Transformation in America. Overview OCBC Workforce Housing Scorecard zUUi This year, Orange County's population has surpassed 3 million, making it the most densely populated county and metro area in California after San Francisco. Occupying an area of less than 800 square miles, Orange County's economy would rank higher than all but 36 countries. Yet, despite having be- come adensely populated and formidable economic power, people still prefer to view Orange County as suburban bedroom community-something the county hasn't resembled since the 1970s. While we may be tempted to pass this notion off as a benign sense of nostalgia, this yearning for yes- teryear has bred difficult obstacles to addressing the needs of workforce housing. All too frequently, housing plans are stymied by NIMBY-ism, which manifests itself in seemingly constant and endless conflicts over land use. While we don't want to disregard or belittle the legitimacy of protestations over development, this report demonstrates that our collective obstructionism has taken a significant toll on housing supply and affordability. Because housing is an issue that is heavily influenced by local planning commissions, General Plans, Housing Elements, RHNA allocations, and most importantly municipal elected leaders, we disaggregate much of our findings to the city level. By shedding light on each city's contribution toward securing housing for our county's workforce, we hope that greater support can be found for future action at the municipal level. The county's business community can play a vital role in shaping cities' housing policies by communi- cating the critical link between housing supply and economic competitiveness. Although recognition of the county's housing needs has grown significantly among business executives, a sustained and deep- ened commitment among employers will be needed to foster greater awareness and coordinated action by the business community. Lest there be any reluctance toward action on housing, consider that 10 years ago the median price of an Orange County home was $185,000.; flespite the recent cooling of the housing market, the median price for asingle-family home in Orange County at the time of this writing is $534,000.° This sustained increased cost of housing has had a broad and deep impact on the county that goes beyond the lives of first-time homebuyers and young families shut out of the market. If left unchecked, the escalating cost of housing will detrimentally affect the county on key social and economic fronts, including: ^ A weakened social safety net resulting from young residents leaving their parents behind in search of more affordable housing; ^ A weakened business climate resulting from greater difficulty of recruiting and retaining talented young workers; and ^ Longer commute times and increased congestion resulting from workers purchasing hous- ing at increased distances from the county's job centers. As far-fetched as these scenarios would have seemed 10 years ago, the report that follows will demon- strate that our young people are emigrating from the county in increasing numbers, Orange County -employers are increasingly concerned about their ability to attract and retain workers, and commute s "Riding nine years of rising property values," The Orange County Register, January 19, 2006. ° Apri12007. OCBC Workforce Housing Scorecard 2007 Overview ... - Housing and Emigration from Orange County Much to the dismay of their parents, their employers, and government leaders, increasing numbers of young people are leaving Orange County and its high cost of living. Recent research has documented that the trend is widespread and that housing is a catalyst. In 2006, an Orange County Register article reported on the recent trend of young adults fleeing the county-a 13 percent drop in residents between the ages of 25 and 34.5 More recently, a May 2007 Public Policy Institute of California (PPIC) reportfi found that "fewer than 10 percent of adults moving to other states cited housing as the pri- mary reason they moved out of California in 1997. By 2006, the percentage had jumped to 31." What the Scorecard Doesn't Answer The Scorecard is limited to four criteria: number of jobs, housing unit density, the ratio of jobs to housing units, and housing unit burden (the number of housing units each city adds in rela- tion to the number added by all cities combined). Because of this limited scope, the Scorecard is not an exhaustive examination of housing. It begins with the assertion that the cost of housing is detrimental to the Orange County business environment and examines this problem from asupply-demand perspec- tive. While the Scorecard does not present a comprehensive analysis of the state of county Recent Census data show that the number of residents housing, it does address the crucial relation- between the ages of 25 and 34 dropped by nearly 12.7 ships among housing supply, workforce percent between 2000 and 2005, or nearly 59,000 peo- development, affordability, and business com- ple in five years. This rate of loss is nearly four times petitiveness in Orange County. the state average. As expected, the number of children ages five to nine (associated with younger families) also decreased, with corresponding decreases in elementary school enrollment. In fact, as a result of this phenomenon, three-quarters of Orange County school districts are experiencing declining enrollment. Figure 2.1:2000-2005 OC and CA Population Loss by Age ^OC % Change 29.9% ^ CA % Change 15.3% 9.t% 12.3% -.. -- -2.1 % _- 4.796 „_ _.._ ~..'~-: Under 5 5 to 9 25 to 29 30 to 34 50 to 54 55 to 59 years years years years years years s "An Exodus of O.C.'s Young Adults," The Orange County Register, August 24, 2006. e "Can California Import Enough College Graduates to Meet Workforce Needs?," Public Policy Institute of California, California Counts Population Trends and Profiles, Volume 8, Number 4 (May 200'7). Overview OCBC Workforce Housing Scorecard Zov7 times are indeed worsening. Increased tax investments to reduce traffic congestion such as Measure M, in fact, only serve to mitigate the deterioration in commute times experienced by residents. In contrast to the decrease in young adults, the number of older adults ages 55 to 64 increased by 28 percent, or almost 63,000 people during this same time period. These trends, which led to the median age rising from 33 years old in 2000 to 35 years old in 2005, are projected to continue. By the year 2050, the proportion of adults over age 65 is expected to double, making up 21 percent of the county's population. Over the same period, the proportion of residents between 25 and 54 years of age will shrink by 1 1 percent, to 35 percent of the population. These statistics suggest that many of Orange County's children grow up and move away, leaving their aging parents behind. In the face of these quiet but significant demographic changes, how can we effectively increase supply and make housing more affordable in the future? There are many prevailing circumstances that curtail housing development, thus driving the cost of housing beyond what most households can afford. While it may seem a daunting challenge to many, the Orange County Business Council firmly believes that un- raveling these myriad disincentives will necessitate cooperation and accountability by all stakeholders. By increasing exposure to cities' track records on workforce housing, we can draw in greater interest- and advocacy-to this often under-reported issue. The scorecard has already engendered a critical dia- logue that will be paramount far yielding the common understanding necessary concerted action for this difficult challenge. We are not the first entity to try to encourage more housing and we won't be the last. A more well- known and institutional housing advocate is California's mandated Regional Housing Needs Assessment (RHNA). See page 20. Yet for reasons that will be made clear later in this text, the RHNA process alone has proven to be an insufficient vehicle for restoring a more healthy balance of jobs to housing in the county. OCBC Workforce Housing Scorecard 2007 Overview ... - Woodbury Court in Irvine.OThe Irvine Company, 2007. All Rights Reserved. The succeeding pages of the Orange County Housing Scorecard will uncover why housing has become so expensive, as well as project what the housing market will look like in 2030. In addition, the report will identify incentives, disincentives, and policies that continue to exert a profound impact on our housing market. Finally, to introduce a much needed measure of transparency and accountability into the housing debate, the report includes a breakdown of Orange County cities' contributions to the housing market, in terms of new housing unit production, job growth, and density trends. BACKGROUND Out of 200 metropolitan areas in the United States, Orange County was recently found to be the fourth most expensive place to live in the country.' The breakdown of the index reveals that the county's dis- tinctive ranking is driven entirely by its high home prices (see Figure 2.2). Figure 2.2.: Cost of Living Index (Second Quarter 2006) San Francisco Silicon Valley Los Angeles/Long Beach Orange County San Diego Boston Inland Empire Seattle Austin Research Trlangh Source: ACCRA/Council for Community. The county's housing conundrum is primarily the result of a longstanding and widening divide between the county's booming employment growth and comparatively stagnant housing development. Between 1991 and 2005, Orange County produced approximately 345,700 jobs and 158,000 homes. Better stated, the county produced only one home for every 2.2 jobs created, and in many years only one housing unit for every 3 or 4 jobs created. The jobs-to-housing ratio is an indicator that we track closely in the succeeding pages. The implica- tions of this ratio should be clear to local employers and workers: workers need affordable homes for their families. ~ According to the Council for Community and Economic Research. Overview OCBC Workforce Housing Scorecard zuu/ 0 SO 100 150 200 250 300 So what is a fair balance of jobs to housing? A ratio of one home per every worker is ideal, but with many households now boasting two-income earners we deem 1.5 to be an acceptable ratio, a bench- mark cited by many housing experts and planners such as Dr. John Landis, Chair of the City and Regional Planning Department at UC Berkeley. As it happens, only 15 years ago Orange County was housing rich, with a healthy balance of about 1.4 jobs for every home. By 2005, the county's balance of jobs to housing had deteriorated to 1.61 jobs for every home. Based on the most recent city planning fore- casts, because the region is projected to add only one housing unit for each 3.4 jobs created by 2030, the county's jobs per housing ratio is expected to deteriorate further to 1.79 jobs per house.8 If we were to assign letter grades for the county's role in promoting workforce housing, it would reflect this deterioration. In 1991, the county's 1.4 jobs per house would earn an A. The most recent 1.61 ra- do is below average and merits a C. Any ratio greater than 1.75 merits a failing grade. I f i E. a Cal State University Fullerton, Orange County projections 12007). OCBC Workforce Housing Scorecard 2007 Overview .. «- III. Demand Trends: Population, Employment, and Income Appreciation in Orange County (1991-2005) Population The first basic component of the demand factors influencing Orange County's housing story is popula- tion. From 1990 through 2005, the county's population grew by 28 percent (from 2.3 to 2.9 million). Five cities-Anaheim, Irvine, Santa Ana, Garden Grove, and Orange-accounted for 40 percent of this growth (see Figure 3.1 ). Figure 3.1:1991-2005: OC Population Growth Leaders Anaheim Irvine Santa Ana Aliso Viejo Rancho Santa Margarita Garden Grove Orange Mission Viejo San Clemente Lake Forest Fullerton Laguna Niguel Tustin Huntington Beach Laguna Woods Costa Mesa Newport Beach Westminster Yorba Linda Buena Park La Habra ^ 2005 ^ 199 1-200 5 Grow th 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Meanwhile, South Orange County saw the fastest growth. Newly established cities like Aliso Viejo and Rancho Santa Margarita grew by 491 percent and 280 percent, respectively. Five other cities grew by more than 33 percent. Cities that posted the slowest growth-all under 8 percent-were Laguna Beach, Fountain Valley, La Palma, Los Alamitos, Seal Beach, and Villa Park.. Where did the growth in population come from? Seventy percent of this growth was "home grown," or the result of natural increase. Despite such a strong growth in population, the increase is fairly tepid compared to the job growth experienced in the same period, as the next section will demonstrate. Employment Gains From 1991 to 2005, Orange County added a remarkable 345,700 jobs-a 30 percent increase from 1991 (see Figure 3.2). This increase occurred in spite of a recessionary environment at the start of the last two decades. The leaders in Orange County's job growth-Irvine, Anaheim, Santa Ana, Orange, and Fullerton-accounted for over half of the county's total job growth for that period. Demand Trends: Population, Employment, and income OCBC Workforce Housing 5corecara luui Figure 3.2: OC Total Job Growth Leaders (1991- 2005) 250,000 200,000 150,000 100,000 Jobs Created 1991- 2005 ~Jobs1991 _ Irvine Anaheim Santa Ana Orange Fullerton Income Appreciation Costa Garden HuntingtonNewport Mesa Grove Beach Beach The third demand component tracked in this study is income appreciation. Between 1990 and 2005, Orange County's median household income appreciated by 48 percent, from $46,000 to $68,000. While the percent growth in income is substantial, it paled in comparison to the appreciation realized by Orange County Homes during the same stretch (see Figures 3.3 and 3.4). Because of the imbalance between a high level of demand driven by job growth and not enough newly built housing, the price of the median priced-home sold grew almost three times as much, 158 percent from 1990 to 2006. It's worth noting that increased access to housing credit vis d vis more flexible standards helped amelio- rate this disparity. Nevertheless, the recent market upheaval in the sub-prime sector proved that there are limits to the loosening of credit. Figure 3:3:1991- 2005: OC HH Income vs. Home Value Appreciation a vieja 3. elements Lag. Beach Tuatln B. Parts RSM 3JC Irvine Y. Llnda H. Beach N. Beach Lag. Niguel La Palma M. VleJo Orange C. Mesa S. Ana OC Median in summarizing the demand trends affecting housing over the last 15 years, Orange County experi- enced: OCBC Workforce Housing Scorecard 2007 Demand Trends: Population, Employment, and Income ... - 0% 50% 100% 150% 200% 250% • An increase of 345,700 jobs (growth rate of 30 percent), the majority of these jobs being created in the county's traditional job hubs, but faster relative growth in Southern Orange County; ^ An increase, from $46,000 in 1990 to $68,000 in 2006 in Orange County's median house- hold Income; and • A growth of 168 percent in the cost of Orange County's median-priced home sold between 1990 and 2006. Internal Street View Demand Trends: Population, Employment, and Income OCBC Workforce Housing Scorecard 2007 ^ A 28 percent increase in population or 645,000 new residents (half of these new residents were added to Anaheim, Irvine, Santa Ana, Garden Grove, Orange, Mission Viejo, Fullerton, and Huntington Beach, with. South Orange County cities experiencing the fastest percent- age growth in population); IV. Supply Trends: Housing Growth in Orange County, 1991-2005 Having detailed the demand trends that took hold in Orange County between 1991 and 2005, we now shift attention to the housing supply trends. In 1991, there were approximately 1,150,000 jobs in Or- ange County and 815,000 housing units-a nearly ideal ratio of 1.4 houses for every job. As discussed in the preceding section, the 1990-2005 time period brought about tremendous em- ployment and population growth in the county. Unfortunately, cities could not boost a sufficient supply of housing to keep up with this pace. From 1991 to 2005 Orange County added 158,000 houses-a 19 percent increase in housing stock. Figure 4.1 below shows cities that generated the most housing in the 1991-2005 period. Six cities accounted for half of the county's total housing growth, namely: Ir- vine, Lake Forest, Aliso Viejo, Anaheim, Rancho Santa Margarita, and Newport Beach. Figure 4.1: 1991-2005: OC Housing Growth (Leaders) 30,000 350% 25,000 300% 20,000 ~ New Houses 250% 15,000 --E-% Growth 200% 150% 10,000 100% 5,000 50% 0 0% t,\~e ot~5~. J~elo `~`~~'~ ~~'~ ear mar J~~~o ~`'~~~ a~o'~ ec~~ .oiJ~\ • t~`'~~t ¢ttoc Pia ~>caa e~~`a \.a~ Q P Pia ~~ ~0 ~ ~ Ot `\~~ ~~ ¢~~~~ ~ J~~ 5 y Q\ao cy y> While the leaders in housing growth far exceeded the county median, the same figure shows that most of these cities' new housing came well short of keeping balance with the county's booming job growth. As you will recall, from 1990 through 2005, the county's population grew by 28 percent (from 2.3 to 2.9 million) while generating 345,700 jobs or a 30 percent increase in employment. (see Figure 4.2). Figure 4.2: 1991-2005: OC Housing Leaders...Trail Job Growth Irvine L Forest A. Viejo. Anaheim RSM N. Beach H. Beach M. Viejo_ Tustin p hew Houses Orange_ ^ New )obs 5. Clemente L. Niguei_ ~ Westminster Fullerton S. Ana Y. Linda Placentia 0 20,000 40,000 60,000 80,000 }00,000 120,000 140,000 160,000 OCBC Workforce Housing Scorecard 2007 Supply Trends: Housing Growth in OC, 1991-2005 . , . - The result of this housing-to-job growth imbalance was an overall deterioration of the jobs to housing ratio and, consequently, a decrease in housing affordability. By 2005, Orange County was. moving in the wrong direction, having gone from having 1.4 jobs for every home to having more than 1.6 jobs for every home. As Figure 4.3 demonstrates, this imbalance was extremely high in comparison to both state and national trends. Figure 4.4 shows the cities that experienced the greatest deterioration in their lobs to housing ratio. Figure 4.3: New Jobs Created per Housing Permit Granted 2000-2005 6.0 ----- 5.0 ---- --- - 4.0 - - --- 3.0 __-. _ -. _; -~-Orange County -a~Callfomla 2.0 - -- United States 10 - -- - 0.0 ~ , -t0 __ -2.0 2000 2001 2002 2003 2004 2005 Sources: Hanley Wood Market Intelligence (www hanlevwood com/hwmi) and United States Bureau of Labor Statistics. Figure 4.4: 1991 Vs. 2005: Jobs to Housing Ratio Deterioration L. Alamitos Irvine Brea Orange S. Ana L. Hills C. Mesa Anaheim N. Beach F. Valley Tustin Cypress B. Park Fullerton 0.00 Supply Trends: Housing Growth in OC: 1991-2005 OCBC Workforce Housing Scorecard 2007 0.50 1.00 1.50 2.00 z.5u s.uu s.w ~r.v0 Orange County's Density: No Longer a Suburb The 2000 Census revealed more proof that Orange County is no longer a suburb, but the most densely populated area in the state behind San Francisco County. The prevailing density and scarcity of land has forced many cities to build vertically, such as Anaheim's platinum triangle project and high-rise de- velopments underway in Irvine, Costa Mesa, and Santa Ana. Even before the start of these high-rise developments, many Orange County cities experienced a sub- stantial increase in density between 1990 and 2005 (see Figure 4.5). Gains in density can be chalked up to cities' efforts to increase multifamily housing and/or rezoning to higher and more efficient uses. An increase in population density without construction of sufficient new housing units almost always results in overcrowding, which is driven by a lack of affordable housing options for lower-income households. A. Viejo L. Forest Tustin Stanton Placentia Irvine L. Hills Westminste N. Beach L. Niguel S. Clemente Cypress H. Beach M. Viejo Orange La Habra D. Point OC Median 0 Figure 4.5:1990- 2005: OC Cities' Change in Density (Leaders) 1000 2000 3000 4000 ^ 1990 ^ 2005 ^Change in Density 5000 6000 7000 8000 Between 1990 and 2000, overcrowding-the federal HUD standard in which there are 1.01 persons per room in a dwelling unit-grew by an average of 44 percent across the county. Figure 4.6 lists those cit- ies that saw overcrowding grow at a faster rate in the 1990s than the Orange County median. Figure 4.6:1991- 2005 OC Overcrowding (1.01 occupants or more per room) tap une fills vine Park La F~bra Stanton kvine Anaheim Laguna Niguel Tustin Carden trove Mission Viejo San Juan Capistrera Costa M esa Weatninster Buena Park Brea Seal Beach ORANGECOUNTY M F.DIAN ^ 2000 %Overcrowded ^ 1990 %Overcrowded ^ Percent Growth w 50% 100% 50% 200% 250% 3009'0 '~ 0% OCBC Workforce Housing Scorecard 2007 Supply Trends: Housing Growth in OC, 1991-2005 ... Housing Supply Constraints: Land Scarcity, Infill, and the Myth of Being Built Out Land scarcity has a substantial impact on the affordability of Orange County homes. According to UC Berkeley Professor John Landis, a 10 percent reduction in the supply of available land can increase home prices by 20 to 30 percent.9 In Orange County's historic concept of development, that of single family houses and master-planned communities, it's forgivable to perceive the county as being "built out." Build-out refers to the point at which a city can no longer change its infrastructure in a particular way. For the Scorecard, housing units are the focus: a city is built out when it can no longer add housing units. While physical space is certainly an important criterion, the administrative and technological constraints on land use are more important when assessing degree of build-out. Regulation of building height and housing density along with technology work together in shaping the city. For example, at some point before 1900 the city of Manhattan was thought to be built out. That was until the arrival of the skyscraper, which enabled the city to become the most densely populated city in the country.'° The interplay of technology and forward looking leadership silenced those who had claimed Manhattan built out. Although Orange County may never resemble Manhattan, Santa Ana was thought have been built out in 1975, when the last large open parcels were built upon. Since 1975, Santa Ana's population has dou- bled, from 177,400 to 355,000. The underlying lesson of both Manhattan and Santa Ana is that cities k can utilize administration of land use along with technology to allow housing unit production to re- spond to the high demand for housing units. Infill capacity is a key component of land administration. The definition of Infill is "to fill in any avail- able space within existing development." According to John Landis's database of infill potential, Orange County-one of the most densely populated areas in the country-actually has more than 34,000 par- cels or more than 9,000 acres of developable land" (see Figure 4.7). What potential impact can 9,000 acres have on housing? Consider that for the Great Park-which boasts nearly 4,700 total acres-about 750 acres are being set aside for housing.'Z It is projected that the 750 acres will yield 5,800 housing units or a density of 5,000 units per square mile. If we were to scale up this dense mix of housing across Orange County's 9,000 acres of developable land, nearly 70,000 more homes could be created. Another consideration to take into account is that the county's developable land does not end after the aforementioned 9,000 acres have been exhausted. As land property values increase, there will be in- creased incentives for redevelopment for more multi-family planning. 9 California Homebuilder Magazine, California Building Industry Association, May/June 2003. 10 Yet, the density could be even higher if administrative constraints had not held back technology. Because skyscrapers cast shadows blocking out the sun for entire city blocks, Manhattan enacted setback regulations on building envelopes, mandating that buildings become narrower as they got taller in order to mitigate the impact of their shadows. t' Data courtesy of C. Scott Smith, a researcher at the University of California, Irvine. Smith used the Pilot California Infill Parcel Locator from the Institute of Urban and Regional Development at the University of California, Berkeley, to identify potential infill parcels in Or- ange County. is This figure does not include the 60 acres allocated for an unspecified number of affordable housing. Supply Trends: Housing Growth in OC: 1991-2005 OCBC Workforce Housing Scorecard 2007 Figure 4.7: Orange County Current Infill Land (Acres) i i % ~ ^ Single 696 Family ~'I 37% ^Muhi-Family ^ Commercial ^ Vacant 27% ^ Industrial I ~ ^Agricultural Given the substantial impact that land scarcity has on housing prices and the aforementioned capacity for infill development, Orange Counry's regulatory environment-from municipal and zoning entities to the constituencies that influence them-plays a pivotal role in shaping the future of our housing mar- ket. The housing unit capacity for the county entirely depends upon the type of housing at issue. If we de- fine housing as single-family detached units, then Orange County is indeed nearing build-out: there simply is not enough physical spate to accommodate continued sprawl of single story, single-family houses. If instead the discussion accommodates differing types of housing units, we find ourselves k very far from being built out. The construction of residential towers in Irvine, Anaheim, and Costa Mesa shows that we can indeed build "up." Such towers are part of a larger set of new developments built in- side existing urban areas and known as infill developments. Infill developments can be anything from single-family homes to high-density residential complexes; the key is that they are built within existing urbanized areas, not on the periphery. In its potential to serve the growing demand for urban lifestyles, infill development could prove a boon for the already prominent Orange County economy. Young professionals and retirees alike are turning from suburbs to urban areas to find the plethora of services and ease of movement offered only by dense, vib°rant mixed-use areas. Orange County already possesses most of the infrastructure of an ur- ban metropolis, yet, as revealed by the UCI analysis, the county also has tremendous potential for increasing the density of amenities like housing and services. Orange County's tack of density is a quasi-raw material that could be harnessed to. fuel future growth as demand for urban lifestyles drives increased economic activity in dense, connected urban areas. Young professionals will demand jobs with pay commensurate with their skills and that are located in urban centers. With infill, the county can create housing to satisfy the demands that the Orange County economy will be creating in the next 25 years. Developer Fees and Environmental Regulation Recent times have witnessed the growth and utilization of developer fees, or impact fees, in many ju- risdictions throughout the state and within Orange County. These fee programs are the result, in part, S of fair-share calculations whereby developers of new projects contribute funds to capital improvement programs such as schools, transportation, libraries, and other services. The fair-share calculations are OCBC Workforce Housing Scorecard 2007 Supply Trends: Housing Growth in OC, 1991-2005 . , . - According to recent surveys by the Orange County Chapter of the Building Industry Association of Southern California, the median housing permit fee charged by city's in Orange County increased 29 percent between 2000 and 2005. During that five-year span, only six cities reduced their housing per- mit fees: Brea, Costa Mesa, Fullerton, La Palma, Los Alamitos, and Orange. At the same time, two cities raised their fees by more than 250 percent. Figure 4.8 shows, in aggregate form, the various drivers that impact the total permit fee for houses. Figure 4.8: Housing Permit Fee Breakdown: Orange County Aggregate 47.5% 27.4% 4.1% 10.8% ®Environment ^ Planning ^ School Fees ^ Other Fees ^ Engineering D Other (not Identified) NIMBY -Growth Controls Beyond direct, per-unit housing fees, regulations can also slow down housing construction. NIMBY ob- struction is a popular and powerful force for blocking development. Citizens see higher-density developments in proximity to traditionally single family communities as an infringement on the current quality of life. Typical NIMBY concerns include overcrowding at schools, traffic congestion, and the im- pact on services such as police and fire. Changes in population or commercial activity encourage citizens to mobilize and encourage policy makers to curb plans for growth. Policies have been imple- mented to enact growth boundaries or control housing unit approvals, both of which have restricted the supply of housing units. Whether spearheaded by residents or environmental or industry concerns, the California Environmental Quality Act (CEQA) has proved to be a popular and cost-effective method of curbing such development. Using CEQq, a claim against a developer can delay housing projects by years, even decades. State law regulating environmental oversight in the form of the CEQA has expanded over the years to private de- velopment review. Environmental Impact Assessments and the production of Environmental Impact Reports have required more pre-development costs of subdivisions and other projects. These are addi- tional factors of greater cost associated with housing production. Mitigation fees required of final environmental impact declarations further add to the cost of housing production. These costs of pro- duction go along with developer fee programs in raising the raw cost of production per housing unit. Supply Trends: Housing Growth in OC: 1991-2005 OCBC Workforce Housing Scorecard 2007 usually derived based on the size of the project relative to its expected impact to public services. De- veloper fee programs have extended beyond the usual building permit fees traditionally associated with the costs of development and are typically passed along to the buyer in the form of higher prices, decreasing affordability. 2.3% 7.8% These regulatory costs have negatively affected the overall affordability of the housing market because they are passed on to buyers. Fiscalization of Land Use In the past, cities could define and shape their balance of housing and jobs both through their control of land use and through revenue generation. Today, local governments have lost much of their discre- tion and control in regard to fiscal policies. Statewide initiatives such as Prop 13 have limited the ability to raise revenue through property tax increases to meet the needs of city budgets. Land-use decision- making authority is the one power still retained and controlled by municipalities. In the absence of fi- nancial controls they once had, cities now increase revenues and decrease costs through land use decisions. Many have argued that these cost-sensitive policies have been at the expense of the perceived "bal- ance" of communities. Previously, cities could allocate greater amounts of land for multi-family residential housing units because cities controlled property taxes. Now, as many argue, such housing units would be undesirable according to fiscally concerned land use decisions that take note of a loss in revenue when calculating total revenue realized from these units less the cost associated with the accompanying public services. Where cities have become wary of approving high-cost uses, these poli- cies tend to favor larger-scale commercial uses generating high levels of sales tax. This "fiscalization of land use," as coined by Dean Misczynski in 1986, means cities will approve land uses that are fiscally sound, and be averse to land uses that result in negative financial returns. The current imbalance be- tween jobs and housing supply partly reflects the land-use decisions of cities focusing more on the balancing of budgets and less on balancing the community. Affordable Housing Programs Orange County and three of its largest municipalities also provide much needed housing assistance for tower-income households. Section 8 assistance is Orange County's primary mechanism for providing housing assistance to those deemed unable to afford13 the cost of atwo-bedroom rental home in the county." But as a result of the lack of affordable housing in the county, local housing authorities face a severe backlog in their ability to provide help for those who need housing assistance. In the span of only one month,'S the Orange County Housing Authority accumulated a waitlist of more than 20,000 applicants. City housing authorities also show an increase in demand for affordable hous- ing. In 2004, Anaheim's waitlist included more than 17,000 applicants, while Santa Ana and Garden Grove had 9,700 and 5,900, respectively. In total, there were more than 50,000 applicants are on the waitlist for Section 8 housing assistance in 2005. If left open, these waitlists will continue to grow as national and local funding for Section 8 has decreased while housing costs have soared. E i3 Defined as a person who cannot work a total of 73 hours per week. Priority for section 8 housing is given to the elderly, the disabled, and families. 14 In 2005, fair market rent for a rivo-bedroom housing unit averaged $1,317. 's November, 2005. Prior to this, the waitlist had been closed since 2001 and by 2004 was down to approximately 9,800 ap- plicants. OCBC Workforce Housing Scorecard 2007 Supply Trends: Housing Growth in OC, 1991-2005 ... - Accountability California state law requires that jurisdictions provide their fair share of regional housing needs.16 In cooperation with the California Department of Housing and Community Development (HCD), local gov- ernments and councils of government are charged with determining their existing and projected housing needs. This process, known as the Regional Housing Needs Assessment, affords cities the re- sponsibility of both establishing and meeting their housing targets. As the reader may surmise, this process of establishing housing targets leaves much to be desired in terms of accountability and objec- tivity. During the 1998-2005 cycle, for example, RHNA allocated 52,815 units to the 34 Orange County cities focused on in the Scorecard. Through June 2005, those 34 cities permitted 60,927 units of housing, exceeding their RHNA allotment by 15 percent. The most obvious problem is that this target was insuf- ficient to keep up with the growth of jobs created. Even if we suspend this notion that the bar is being set too low, the RHNA process is arguably too forgiving. Consider the following: ^ Of the 34 cities that collectively exceeded the RHNA target by 15 percent, only 14 actually met their individual RHNA targets. ^ The five most overcrowded cities-those having the highest percentage of households with persons-to-rooms ratios greater than 1.01 in the year 2000-failed their RHNA allocations by an average of 14 percent. One city fell short by more than 8,000 housing units. ^ Fourteen cities were allotted 30 percent of the total county need and-largely because of the performance of one city-met 60 percent of the county's target. Meanwhile, 16 cities were allotted 40 percent of the county's target, yet collectively they produced only 21 per- cent of the county's need. 'e The State of California Department of Housing and Community Development is mandated to determine the state-wide housing need. ~ Supply Trends: Housing Growth in OC: 1991-2005 OCBC Workforce Housing Scorecard ~l7[)7 V. Orange County in 2030 In synthesizing the housing supply and demand trends over the last 15 years, at the regional level it is unmistakable that housing supply growth has fallen well short of population and job growth, resulting in an appreciation of housing prices that have far exceeded appreciation of income. This section takes aim about how cities' housing plans for the future will affect the housing market in 2030. Between 2005 and 2030, Orange County's population is expected to grow by 1 1 percent, to 3,266,000. The median city is projected to grow by about 10 percent, or around 7,000 residents. Figure 5.1 in- cludes those cities that are projected to exceed the median population growth rates. 45,000 40,000 3 5,000 30,000 25,000 20,000 15,000 10,000 5,000 0 35% 30% 25% 20% 15% 10% 5% 0% e`er ao~• ••~e•Q~a~'~`~ ore ~~~ ~h ~o~ ~o~ ~~~aa a~ ~e~o0~~ ~~ay'~~c t~a•~ ~e ~~~a ,~~~ t o~ ~a \~e~~a~~ Q ~ ~ ~~e. o Ja ~ .~~ P~~o c~a ~a~ ~o~ F ~~~ ~ Qot P~ti arc h~F ~J~~`~ Ga y~e~ ~oJ~~ fie, In addition, between 2005 and 2030, Orange County will generate an estimated 320,000 jobs, or a to- tal job growth of 20 percent. During that span, the median Orange County city will create 3,345 jobs. Figure 5.2 illustrates projected job growth in cities. Figure 5.2: OC Job Growth: 2005-2030 Irvine Tustin Lake Forest Huntington Anaheim Cypress Costa Mesa Santa Ana San Clemente Fullerton Orange Brea Fountain Valley Westminster Buena Park Aliso Viejo Laguna Hills flCBC Workforce Housing Scorecard 2007 Orange County in 2030 ... - Figure 5.1:2005- 2030 Population Growth by City 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Figure 5.3: 2005-2030: OC Housing Projections by City ~ Housing Unit Growth ->~~% Growth tJ~~~ r~`~ JS``,~ 2~`r PcP Q~~~ ~p~r 0~0~ \~ap ~~~`p ~~Sp ~t~p~tOJO, p~t0~ ~~~~ ~~ ,p~\~~1 Pia '~ ~ g 5. Ot ~ ~ ~~\~ .~ ~' Q\po (,. ~. 5~ L~V.'~ ~ . 5' 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% In comparing the forecasted job and housing growth, this means that the county will create only one house for every 3.4 jobs. If every new home forecasted accommodated 1.5 workers, as many as 179,000 new workers (56 percent of all new jobs created) would most likely either live in severely over- crowded conditions of commute in from outside Orange County, pushing the number of workers commuting in to Orange County each day to nearly 500,000. Figure 5.4: 1991-2030 Jobs/Housing Balance Worsens Lake Forest Cypress Los Alamitos Irvine Orange Fullerton San Clemente Placentia Costa Mesa Tustin Villa Park Santa Ana Orange County 0.00 ^ 1991 Ratio ^ 2005 Ratio ®2030 Ratio ^Total Ratio Deterioration I ~ 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 The preceding pages of this report should make the consequences of this projected imbalance clear. First, the overall ratio of jobs to housing will deteriorate to 1.79 in 2030. (Figure 5.4 shows the break- down by city). As a result, affordability of homes will decrease further. Third, with so many new Orange County In 2030 OCBC Workforce Housing Scorecard 2007 To determine the county's housing forecast, we relied on Cal State University Fullerton's 2007 Orange County Projections. Based on those projections, Orange County is expected to add approximately 94,000 houses between 2005 and 2030-a growth rate of just under 10 percent. Figure 5.3 shows only those cities with total housing- growth projected to exceed the median rate. workers without homes to purchase, many will be forced to commute from outside the county, result- ing in increased commute times and traffic congestion. The Fallout of Urange County's Expensive Housing Market The aforementioned projections portend a further deterioration in housing affordability without signifi- cant action. This section takes stock of the likely consequences in both social and economic terms. The Loss of Young Residents Perhaps the most alarming trends resulting from the county's high housing costs is its effect on the county's young, working-age population. In identifying the impact of housing on young residents, it's important to take into account two trends: 1. Across the country, the median age will rise with the tide of baby boomers coming into the age of retirement; and 2. There is a unique and disproportionate loss of Orange County's young, working-age population. As explained in the introduction, recent Census data show the number of residents between the ages of 25 and 34 dropped by nearly 12.7 percent between 2000 and 2005, or nearly 59,000 people in five years. This is a trends also playing out in Los Angeles County and San Diego County. Contrast that with the growth in the 25 to 34-year-old segment taking place just east of Orange County in the Inland Empire (which constitutes Imperial, Riverside, and San Bernardino counties). The Inland Empire has a total population of about 4.2 million. Between 2000 and 2006, their population of people between the ages of 25 and 34 grew by 149,000, or 32 percent. Even the expansion of credit in the mortgage sector could not stem this tide. Moreover, since the re- cent collapse of prominent sub-prime lenders, it's reasonable to assume that credit will be much more restrictive going forward. The loss of young residents cannot be underestimated. Cities suffer losses in sales tax revenue and school districts lose critical apportionment funding. Emp/oyers While we ran see that the lack of affordable housing is clearly influencing the decisions of young peo- ple, they are not the only ones affected by the cost of housing. After all, many of the 67,000 young people that we identified as leaving Orange County's larger cities between 2000 and 2005 could also be leaving the county's workforce.. In May 2007, the Public Policy Institute of California (PPIC) found that California "probably won't be able to attract enough college-educated workers to meet current, skill-driven, economic projections-and thus may have to rein in expectations about what the economy will look like in 20 years."" In this context, many employers might also find the county's housing market to be prohibitively ex- pensive for attracting the young workers they demand. Compounding the issue is that many employers '~ "Can California Impart Enough College'Graduates to Meet Workforce Needs?," Public Policy Institute of California, California Counts Population Trends and Profiles, Volume 8 Number 4 (May 2007). OCBC Workforce Housing Scorecard 2007 Orange County in 2030 , .. - Will employers be able to replace these retirement-age workers? If not, many employers wishing to re- main in Orange County will either need to retain older workers or, if possible, invest in technology to compensate for labor shortages. Other options include reconfiguring operations (through off-shoring and/or relocation) or closing operations altogether. While this may seem like afar-fetched proposition to some, a recent survey of local executives demon- strates that the issue of housing is weighing heavily on the minds of many employers. According to the survey, 25 percent of local executives identified the county's housing as the most negative factor influ- encing the local business climate. This made housing the most common negative factor influencing the business climate among local executives. Orange County is not the only area in California affected by high housing costs. The Bay Area, Los An- geles, and San Diego Counties also find themselves at a competitive disadvantage. Notwithstanding, the exclusivity of Orange County's housing, if it persists, will loom large on employers' hiring and compensation practices, as well as on long-term planning. That is, if left unresolved, housing costs will continue to play a larger and more significant role in employers' consideration on whether to remain operating in the county and, if so, at what capacity. Commuters Following housing, table 2 tells us that the second most negative factor influencing the business cli- mate is also caused by housing imbalances: traffic, agreed upon by 23 percent of local executives. As many resident commuters can attest, congestion in Orange County is getting worse. Long commutes not only affect personal lives, they impede the efficient movement of goods, cause declines in worker productivity because of time lost in transit, and contribute to global warming. The issue of housing and traffic go hand in hand. Vehicle miles traveled or "VMT" is projected to in- crease steadily in the future, despite our sustained investments in transportation infrastructure vis a vis Measure M. A significant contribution to our increasing VMT is the fact that aspiring homeowners con- tinue to chase affordable housing located further away from the county's job centers, such as the Inland Empire and Riverside County. Orange County in 2030 OCBC Workforce Housing Scorecaro z~o~ will need to replace the baby boomers on their respective payrolls once they reach the age of retire- ment. Figure 5.5: OC Employment Magnets (2005) 160.000 140,000- 120,000 100,000 80,000 20.000 0 Jobs Within Jurisdiction ^FJnployed Ciry Residents O(jobs w/in jurisdiction - employed city residents) Orange County has 1.3 million jobs and approximately 1.5 employed residents. But because the county lacks an urban "core," the spatial relationship between the jobs and workers is fragmented. Figure 5.5 (previous page) shows the county's largest employment centers. Collectively, these cities attract well over 192,000 (jobs within jurisdiction minus employed city residents). Where are the workers commuting from? Twenty-five Orange County cities account for a surplus of 331,000 workers minus jobs within jurisdiction. Figure 5.6 shows the 14 largest "worker exporter" cit- i `~ ies in the county.18 figure 5.5: OC Employment Magnets (2005) 180,000 ~- pJOba Wlthln Jurladlctlon 180,000 ^Employed Clty Resld sofa 140,000 ^(joba w/fn jur!adlctlon -employed 120,000 ~ city residents) --- 100,000 - ---- __ 80,000 - ---~- --- i 60,000 _ _ i -- 40,000 20,000 - ~ 0 -~-- - - Irvltta Orange Newport Broa Costa Anaheim Loa Laguna Santa Beach M •sa Alartdtos Hllla Ana Irvine Orange Newport Brea Costa Anahetm Los Laguna Santa Ana Beach Mesa Alamitos HIIIs Renters Since 78 percent of Orange County households cannot afford the median-priced home in the county, the demand for rental properties continues to grow. This effect could be more pronounced given the 18 Thel l cities not listed constitute "the long tail" and have between 1,000 and 10,000 more workers than jobs. OCf3C Workforce Housing Scorecard 2007 Orange County in 2030 ... - As occupancy rates have increased, so too have the appreciation in rental rates and the relative income needed to afford a home. For the year ending in the third quarter,20 Orange County's largest landlords raised rental prices by an average of 6.1 percent, making the typical rent at a large complex equal to $1,494 (up $88 in a year). According to the National Low Income Housing Coalition, an Orange County household earning mini- mum wage can afford to pay no more than $351 per month in rent. A household earning 30 percent of the Orange County median family income ($22,710) can only afford to pay $568 in rent. Among state and national peer metropolitan areas, only San Francisco has higher housing wages (in other words, less affordability in rental housing) than Orange County. The increase cost of renting housing has a spillover effect on housing. Increased rents leave renters with fewer savings for a down payment of a home. Society According to a poll by the Public Policy Institute of California, nearly 75 percent of California residents believe their kids won't be able to find a home in California they can afford. In detailing how the lack of affordable housing affects young residents, employers, commuters, and even homeowners, it becomes clear that the economic impact of home prices are borne not only by first-time homebuyers. The exclu- sivity of Orange County's home prices will continue to factor into workforce planning, and will have a broad and deep impact on our society. As we've demonstrated, more and more people will likely move away from the county as housing be- comes prohibitively expensive for young residents. Parents and grandparents that remain in the county will have to travel farther to see their kin. As such, many residents will be left with a weakened familial safety net that we depend on for emergency support. Friends and professional caregivers will be called upon to fill this void. Our hospitals, by their own admission, are having an increasingly difficult time attracting personnel to work in the county. As we can see in Figure 5.7, the annual income needed to afford a house in the county is $145,680,Z' or less than the combined salaries of a nurse and a school teacher. It's important to think beyond affordability and factor in purchasing power. That is, just because a physician can af- ford ahome in Orange County doesn't mean he or she will be willing to forgo less expensive housing elsewhere. That is exactly the quandary that local hospitals face in recruiting both nurses and young physicians. 19 The remaining seven cities either kept their same rental rate or saw a marginal decrease in rental occupancy (the highest decrease was 0.9 ~ercent). ° According to RealFacts. u Based on an adjustable interest rate of 6.48 percent Orange County in 2030 OCBC Workforce Housing Scorecard 2007 tightening of credit in the mortgage sector. As such, rental occupancy has. increased in 27 out of 34 Orange county cities.19 Figure 5.7: Income Needed to Afford Median Priced Home (5710,920) Compared to Typical Salaries Orange County, 2006 Szoo,ooo _____~..~._~_ r~_r 5180,000 Typical Annual Income Annual Income Needed 5160,000 $145,680 S 140,000 I 5120,000 , S 100,000 S 80,000 560,000 570,052 ' S40,000 55 7, 782 520,000 - SO Elementary School Teacher Nurse OCBC Workforce Housing Scorecard 2007 Orange County in 2030 ... VI. Orange County Business Council Workforce Housing Scorecard Orange County Business Council Workforce Housing Scorecard, 1991-2005 From 1991 to 2005, newer cities-predominantly in South Orange County-were the most aggressive in terms of generating new homes. Much of the newly built homes were constructed on previously un- developed land. As cities such as Rancho Santa Margarita, Aliso Viejo, Lake Forest, Irvine San Clemente, and Mission Viejo were being constructed, housing expanded at a pace consistent with employment development, and high land values in virgin territories encouraged higher-density development.Z2 Orange County Business Council Workforce Housing Scorecard, 199.1-2005 u ° ~ ~ ~O ~ ~ ro ~ c b ~ .n 0 ,.,,~ o cF c ' o c a d « ~c.~ c ~n :d p a v~ ~ p ~ ° ~ ~ ~ ~ ~ ~ ~ Rank City u Hu aE_ x °x vx 1 Irvine. 26 t 1 18 6 2 Aliso Viejo 27 22 2 2 1 3 'Tustin 31 16 9 3 3 4 Lake Forest 33 10 7 11 5 5 Newport Beach 36 9 5 13 9 6 Huntington Beach 42 8 6 15 13 7 Mission Viejo 42 11 8 9 14 8 San Clemente 46 12 1 1 12 1 1 g Westminster 46 1 S 13 10 8 10 Laguna Niguel 48 20 12 4 12 11 Placentia 53 13 17 19 4 12 Orange 55 4 10 25 16 13 Laguna Hills 60 26 20 7 7 14 Anaheim 61 2 4 24 31 15 Rancho Santa Margarita 64 27 3 1 33 16 Stanton 64 31 25 6 2 17 Fullerton b6 5 14 27 20 18 Cypress_ 68 14 23 21 10 19 San Juan Capistrano 69 25 19 8 17 20 ' Yorba Linda 69 23 16 5 25 21 Garden Grove 72 7 18 26 21 22 Santa Ana 72 3 1 5 31 23 23 Brea 74 19 21 16 18 24 La Habra 81 28 24 14 15 25 Costa Mesa 82 6 22 30 24 26 Fountain Valley 88 17 26 23 22 27 Dana Point 89 21 27 22 19 28 Buena Park 101 18 28 28 27 29 La Palma 1.07 34 30 17 26 30 Laguna Beach 1 10 24 29 29 28 31 Seal Beach _ l 17 33 32 '. 20 32 32 Los Alamitos 122 29 31 33 29 33 Villa Park 127 32' 33 32 _ 30 34 Laguna Woods 132 30 34 34 34 zz Note that Laguna Woods has zero jobs in 1991. The city was incorporated in 1999. The Scores OCBC Workforce Housing 5corecaro zuui The Orange County Business Council Workforce Housing Scorecard, 2005-2030 The Scorecard rankings for the period between 2005 and 2030 reflect a significant change in the type of future development Orange County will see compared to the residential that took place in the past. As the availability of virgin land in the county diminishes, housing development is increasingly taking puce in the already developed, more urbanized areas of Orange County such as Anaheim, Santa Ana, and Irvine, where jobs, commercial activity, and recreational opportunities already exist,. Furthermore, since older and more urbanized jurisdictions have fewer undeveloped parcels for infill development, higher-density housing will become more common. Orange County Business_Council Workforce .Housing .Scorecard, 2005-2030 X c ~ ~u o •~, g '~ ~ y n ~ ro3 •, p o ~~ 3 N o ~ s+ c' • A 3 C Rank City u i°- u x° o x° ~~ u i o 1 Anaheim 13 5 2 3_ 3 2 'Irvine 16 1 1 13 1 3 Santa Ana __ 32 8 5 10 9 4 Tustin 32 2 "` 3 23 4 5 Newport Beach 33 21 4 2 6 6 Orange 36 11 6 8 11 7 Fullerton 42 10 8 11 13 8 Brea 43 12 12 12 7 9 Placentia 44 25 10 4 5 10 .Huntington Beach 45 4 7 19 15 11 Cost Mesa 50 7 1 1 20 12 l2 Stanton S1 30 14 5 2 13 Yorba Linda 51 31 9 1 10 14 ~CYpress 61 6 18 29 8 15 Fountain Valley 61 13 17 17 14 16 'Garden Grove 62 23 13 7 19 17 San Juan Capistrano 64 18 16 9 21 18 Aliso Viejo _. 66 16 19 14 17 19 San Clemente 66 9 15 24 18 20 Buena Park 73 15 20 18 20 21 Laguna Woods 85 29 25 15 16 22 'Westminster 86 14 21 27 24 23 Laguna Niguel 89 19 22 22 26 24 La Habra 90 22 24 21 23 25 Laguna Hills 93 17 26 28 22 26 :Mission Viejo. 95 27 23 16 29 27 Dana Point 101 24 27 25 25 28 Villa Park l Ol 34 33 6 28 29 !Lake Forest 102 3 31 34 34 30 'Rancho Santa Margarita 1 14 26 28 30 30 31 Seal Beach 114 20 29 32 33 32 "Los Alamitos 1 16 33 30 26 27 33 'Laguna Beach 1.22 28 32 31 31 34 La Palma 131 32 34 33 32 OCBC Workforce Housing Scorecard 2007 The Scores ... - What are the commonalities between the 1991-2005 and 2005-2030 periods? In general, the larger, more urbanized cities made greater strides to balance housing and job growth, resulting in a higher ranking for those periods. Smaller communities with a higher concentration of single-family residential housing posted lower rankings. Among coastal cities, Huntington Beach and Newport Beach received relatively high rankings during both timeframes, while Laguna Beach and Los Alamitos had lower rankings. In the inland areas, Tustin and Orange did well, while Villa Park and La Palma did poorly. There is also some contrast between the two periods, namely the migration of housing growth from South and Coastal cities in 1991-2005 to more urban and inland communities between 2005 and 2030. In the 1991-2005 grades, coastal South County cities did well largely because new tracts in San Clemente and Aliso Viejo were under construction, in addition to coastal communities north of the 55 Freeway such as Huntington Beach and Westminster. However, from 2005 to 2030, in both North and South County, the larger inland cities like Anaheim and Santa Ana will see greater housing supply growth and should be highlighted as the cities showing the greatest improvement in balancing the dual pressures of .growing jobs and growing housing supply. Given these shifting trends, it's fitting that the city of Irvine, located in the center of the county, strad- dling coastal, inland, northern, and southern areas of the county, was the city with the highest cumulative ranking when taking into account both time periods. Irvine's geographical advantage should take nothing away, however, from the city's long-standing commitment to balance job and housing growth. The Scores OCBC Workforce Housing Scorecard zoa~ The Orange County Business Council Workforce Housing Scorecard, Cumulative Assess/ng the State of Hous/ng In Your Clty Any understanding of the present must begin with an examination of the past. The historical content of your city is the most important element to understanding why things are as they are today. However, situating a city in its historical context is a daunting task. A contradictory scenario of information shortage and information overload leads to frustration at not being able to find sources and despair at there being just too much to know. Because of this, restricting the investigation to those historical elements most beneficial to gaining an understanding of housing proves fruitful. Perhaps the most important of these elements is population change over time. After all, housing only exists be- cause people do. No people, no housing. More important, fewer people, less housing and more people, more housing, highlighting the need to examine population trends rather than points in time: it is changes in popula- tion that drive changes in housing. Understanding a city and its region's historical population trends lends insight to the present as well as to forecasting. Closely related to population trends are employment trends. Likely, the two are highly correlated. The important thing to note is trends within the region. Dependent on the relative mobility of commuters, the.growth and re- duction of job centers will affect housing patterns. However, given Orange County's receptivity to wide-ranging commutes, there may be no patterned response of housing to employment trends within the region. As long as employment merely shifts around the region rather than leaving it, population and housing may not be affected. Within a city, if employees commute in, both declining and growing employment centers may not affect housing in the city. The impact really depends on the commuting culture, especially on the threshold for physical dis- tance-which really equals time-employees will willingly spend on the road before deciding to change residences. Commuting culture is plastic and will change with time given interaction with other trends like popu- lation and employment. Another essential element is median home price. As the Scorecard demonstrates, median home price in Orange County changes the housing landscape by pricing out of the market people who had previously lived in Orange County. Trends in median home price are related to population and employment trends discussed above. ©CBC Workforce Housing Scorecard 2007 The Scores ... - Orange County Business Council Workforce Housin Scorecard Cumulative 1991-2005 2005-2030 ~ a~ ~ L' ~ a~ c > ~p c ~ c0 ~ b0 .~ 3 _ ~ d =G ~ ~~ Of.~ d1 x D1 ~ O -' `'' C C O .d C ~ of 0 V~ ~ O G a 0 O O G ~ O • G O ro Rank City 7 u O Hu O w O 'x ox ~ t0 ,oc t ux O~ Fu v - x ox ~ C -,oc . C ux 1 Irvine 42 1 1 18 _ 6 1 1 13 1 2 Tustin 63 _ _ 16 ~ 9 3 , 3 2~ 3 23 4 3 Newport Beach __ 69 9 5 13 9 21 4 2 6 4 Anaheim 74 2 4 24 31 5 2 3 3 5 Huntington Beach 87 8 6 15 13 4 7 19 1 5 6 Orange 91 4 10 25 16 11 6 8 11 7 . Aliso Viejo 93 22 2 2 1 16 19 14 17 8 Placentia 97 13 17 19 4 25 10 4 5 9 Santa Ana 104 3 15 31 23 8 5 10 9 10 Fullerton 108 5 14 27 20 10 8 11 13 1 1 San Clemente 1 12 12 11 12 1 1 9 15 24 18 12 Stanton 115 31 25 6 2 30 14 5 2 13 Brea 117 19 21 16 18 12 12 12 7 14 Yorba Linda 120 23 16 5 25 31 9 1 10 15 Cypress 129 14 23 21 10 6 18 29 8 16 Costa Mesa 132 6 22 30 24 7 11 20 12 17 Westminster 132 15 13 10 8 14 21 27 24 18 San Juan Capistrano 133 25 19 8 17 18 16 9 21 19 Garden Grove 134 7 18 26 21 23 13 7 19 20 Lake Forest 135 10 7 11 5 3 _ 31 34 34 21 Laguna Niguel 137 20 12 4 12 19 22 22 26 22 Mission Viejo 137 1 1 8 9 14 27 23 16 29 23 Fountain Valley 149 17 26 23 22 13 17 17 14 24 Laguna Hills 153 26 20 7 7 17 26 28 22 25 La Habra 171 28 24 14 15 22 24 21 23 26 Buena Park 174 18 28 28 27 15 20 18 20 27 Rancho Santa Margarita 178 27 3 1 33 26 28 30 !, 30 28 Dana Point 190 _ __ 21 27 22 19 _24 _ _ 27 25 25 29 Laguna Woods 217 30 34 34 34 29 25 15 16 30 Vi11a Park 228 32 33 32 30 34 33 6 28 31 Seal Beach 231 33 32 20 32 20 29 32 33 32 Laguna Beach 232 24 29 29 28 28 32 31 31 33 La Palma 238 34 30 17 26 _32 34 33 32 34 Los Alamitos 238 29 31 33 29 33 30 26 27 Laguna Woods incorporated in 1999. 1990 Housing Units are based on the 2000 data from the California Employment Development Department. City area for calculating Housing Unit Density was derived by University of California, Irvine, using Geographic Informa- tion Systems software and Tiger data files from the United States Census Bureau. The Scores OCBC Workforce Housing Scorecard 2007 VII. Workforce Housing Scorecard: Methodology The Workforce Housing Report Card assesses the contributions made by each Orange County city to- wards workforce housing and, ultimately, the health of the local economy. The foundation of our report was based on past, present, and future housing growth, which we juxtaposed with job and population growth during the same time periods. The key metric that we used to measure these trends was ajob-to-housing ratio. Aggregated on a county-wide scale or broken down at the city level, this ratio tells us how many new jobs were created for every new house. We were inspired to use this metric by research from Dr. john Landis, a professor at UC Berkeley, who argues that a ratio of 1.5 jobs per home constituted an acceptable balance for work- force housing. A higher ratio would indicate that there are more jobs per home, which results in greater scarcity of housing for workers. An important qualifier we added to this ratio was that no city could earn a favorable ranking by losing jobs. Where did we get the jobs and housing data? We relied on historical data on housing and employment that were sourced from the California Employment Development Department, California Department of Finance, the Center for Demographic Research at Cal State University, Fullerton, as well as individual cities. Our projections for 2005-2030 were provided by the Center for Demographic Research-Cal State Fullerton, Orange County Projections 2006. After establishing the jobs-to-housing foundation, we sought to ground the report in its proper con- text. While essential, the jobs-to-housing ratio does not adequately explain other important factors affecting workforce housing, such as density, land use, and the regulatory environment. To assess the county's recent and projected trends in density, we incorporated the aforementioned housing figures with city square mileage information taken from the 1990 census and updated for 2005. The updated information was derived by Scott Smith of the University of California, Irvine, who used Geographic In- formation Systems software and Tiger data files from the United States Census Bureau. Why track density? Changes in density reflect a city's ability to accommodate more workers through in- creased multi-family housing developments. This criterion helps us qualify the type of housing built in a period. That is, if two cities build 100 homes each, the city that creates the greater proportion of multifamily housing compared to single-family housing should come out ahead in this category. Next, we tracked the overall contribution of each city to the county's housing. We did this to account for the greater impact larger cities can have on the county as a whole. A small residential community may boast a superior job-to-housing ratio and increase density, yet still make a negligible contribution to the health of the overall economy. In contrast, the cities of Irvine and Anaheim are projected to cre- ate asubstantial share of the county's housing between 2005 and 2030. The same line of reasoning inspired us to create a criterion for total jobs created. As you will recall, our core indicator is job to housing growth. The future prosperity of Orange County will hinge on our abil- ity to promote both, not one at the expense of the other. OCBC Workforce Housing Scorecard 2007 The Scores ... - Orange County Business Council thanks its partners in developing this first-ever Housing Scorecard for Orange County. Corporate underwriting courtesy of: BankofAmerica ~~ Community Partners: ~y~~,ERK.gFCo ~ p 9 Qr Commun' ~y~F ~~ FOUndati0n' ~1 \~UIVT`~ ~P ,' ORANGE COUNTY ~..a»«~,a... A SrM AiM/ Orange County United Way In 1989, the State approved comprehensive recycling and source reduction legislation in the form of AB 939. That bill requires __-_---(~me: F«,r: ~o~~n~ sue, cities and counties to adopt source reduction and recycling - elements designed to divert 25 percent of all solid waste from landfill or transformation facilities by January 1, 1995 through source reduction, recycling, and composting activities. With some exceptions, cities and counties wereare also re wired to ___- rormaceea: r-onc: coefa„K> sn„m --- divert 50 y ry --------------q- - ~-- percent b Janua 1, 2000. This legislation should --- lead to significant increases in the current level of recycling. The City of Tustin has adopted a Source Reduction and Recycling Element, which permits the City to meet the goals of AB 939. The City's element addresses the following eight components: Source reduction, recycling, composting, special waste, public education and information, disposal facility capacity, funding, and integration. Soil Related Hazards Figure COSR-1 depicts the areas in the community which require special planning considerations to avoid potential hazards. Three soil related safety problems are seismic hazards, soil liquefaction, and landslides. As none of the geologic fault systems within Tustin are known to be active, they are not identified on Figure COSR-1; however, if the Division of Mines and Geology should determine that the EI Modena Fault, or any other faults within the Planning Area, are active, Figure COSR-1 will be modified to identify those active faults, and additional actions necessary to protect public health and safety will be prescribed. Areas within the Planning Area have been identified as susceptible to liquefaction or potential bedrock landslides. These areas are identified on Figure COSR-1. When development is proposed within these areas, studies shall be pertormed as directed by the City to determine the potential for hazards and the amount of development which is supportable on the sitey_ _ _ --- w; Fes; c~~ ~,n ---; CITY OF TUSTIN CONSERVATION/OPEN SPACE/ I GENERAL PLAN RECREATION ELEMENT 31 JUNE 17JAN~lAF~Y_t-6, 2008 policy. For several years, the Lower Peters Canyon Retarding Basin contained a small riparian habitat. This habitat severely deteriorated in recent years. The City will work with the County of Orange, which recently constructed a replacement dam, to preserve the riparian area and implement active measures to increase water supply to restore the habitat area. Plant and Animal Communi~ea In addition to the riparian habitat, two other plant groups provide significant benefits to Tustin. These are the Coastal Sage Scrub and the imported trees -Eucalyptus and Cedar stands. These have been preserved through the East Tustin Spedfic Plan and EIR. Coastal Sage Scrub is home to some of California's sensitive or endangered spades such as the California Bladc-tailed Gnatcatcher, the San Diego Cactus Wren, and the San Diego Coast Homed Lizard. The Coastal Sage Scrub itself is now very limited and needs careful management. Peters Canyon Regional Park assists in preserving most of Tustin's existing Coastal Sage Scrub. The development of Peters Canyon Regional Park takes-took into consideration the preserva#ion and improvement of the sensi8ve plant and animal communities within its borders. The General Plan also mandates the continued maintenance of significant tree stands. Healthy trees have been identified through the Eucalyptus Study performed in 1988 and shall be cared for to maintain their health. As existing healthy trees die or become irreversibly damaged, they shall be replaced. The study makes several recommendations which the City will observe. Among the nine recommendations are selective pruning, removal of dead plant material, appropriate irrigation, and the minimization of heavy equipment use within 20 feet of the tree trunks. Polities within this Element support these previous efforts. The redwood/cedar grove has already been protected by including it within a new park. In addition, new developments will require a biological assessment. Biological resources which are important to the local ecosystem or to the City's aesthetic environment will be integrated into the-new development. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 37 JUNE 17JANNARY~, 2008 Topography, Boils, Paleontology, and Archaeology Topographical features, soils, and paleontologic, and archaeologic features are all generally most affected by earthmoving and subsequent urban development. This Element requires the utilization of standards to preserve the unique landforms existing within the Planning Area. The City has very detailed standards and requirements for grading that are designed to protect sensitive topographic, soil, paleontologic, and archaeologic resources. The Tustin Grading Manual prescribes appropriate measures to protect the earth by controlling erosion, sedimentation, and storm damage. Proper grading, soil management, and open space standards will work to preserve these resources. Sensitive locations will be identified, and their preservation will be a high priority for the City during any project review. As new resources are identified in the City, they will be documented as features or resources the City desires to preserve. To further protect paleontological and archaeological resources, a records search will be performed prior to a development. If no record of resources exist, a field survey will be pertormed. Any proposed project which is located within a sensitive area as defined by Figure COSR-2, or is identified through a subsequent study, will require a licensed paleontologist or archaeologist to be present on the site to observe grading or other earthwork. Historic Resources Tustin's many fine historic heI>Faes-buildinos are very important resources to the community. The City conducted a historic surveys in 1990 and 2003. and maintains an historic preservation district. Significant structures outside the district are also protected by the City. In addition to City recognition, the Orange County Historical Commission recognizes the Hewes House and the First Advent Christian Church. The National Register of Historic Places also designates the Lighter-than-Air Hangars at the former MCAS Tustin. Prior to aAtit# the closing of MCAS Tustin, additional historic resource surveying of the faality was #aas--i3eer~ completed. It #~as-been--was CITY OF TUSTIN CONSERVATIOWOPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 38 JUNE 17d4N1~AFt-Y__{g, 2008 concluded that there existed two discontiguous +s-r~e ~eter~t+al-fer-a+~ a1} ic~eltlsive historic districts containing all-rema"~Fng-World War II structures at former MCAS Tustin. including heating plant buildings and blimp mooring areas. Any environmental impacts of the reuse plan for MCAS Tustin will need to address the disposition of these resources. Figure COSR-3 identfies current historic resources within Tustin. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 39 JUNE 17JAN~JAFt-K-»~. 2~~$~ Cultural Resources District: The Tustin Cultural Resources District was established in response to growing concerns over future development in Old Town. The purpose of the Cultural Resources District is to provide a framework for recognizing, preserving, and protedang culturally significant structures, natural features, sites, and neighbofioods within the City of Tustin. The District indudes much of the area within the original City boundaries. The Cultural Resources District ordinance establishes criteria for use in designating cultural resources and Cultural Resources Districts and the procedures to be followed in making such designations. Final action of any designation must be approved by the City Coundl. Certificates of Appropriateness are required for improvements within Cultural Resource Districts or upon Designated Cultural Resources when such improvements require a City building permit. The preparation of a historic resources survey enables a dty to apply for status as a Certfied Local Government (CLG). The Certfied Local Government Program is a federal program which allows a dty to partidpate more diredty in historic preservation efforts. Application is made through the State Office of Historic Preservation. A CLG is eligible for matching grants which can be used for a variety of historic preservation efforts. Tustin became a CLG in 1991-bias-sued-a approved. Scenic Resources As new development is considered by City decision makers, public views should be preserved as much as possible. Consideration will be given to protecting public views along the ridge lines, views toward the inland mountains and along scenic transportation corridors. Figure COSR-4 conceptually identifies significant public scenic resources in Tustin. Solid Waste Recycling CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 41 JUNE 17dANUA~t-Y-i&, 20087 The need to conserve landfill space has been addressed by reser-~t State legislation. Assembly Bill 939 mandates the preparation of a Source Redud7on and Recycling Element for solid wastes. This is not an element that is required to be incorporated into the General Plan. Goal 10 of this. Figure COSR-4 CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT qZ JUNE 17JANlJARX-1S, 20081 Element is the reduction of solid waste in the City. Spetific polities set forth by the City include implementing the Source Reduction and Recycling Element, maximizing integration of source reduction programs, and maximizing public awareness. These goals and polities are set forth explititly in the Source Reduction and Recycling Element. While that element is not a part of the General Plan, the City's intention is to implement it, and the General Plan fully supports that element as City policy. Energy Resource Conaervaffon Tustin's location in the foothill region of Orange County makes it well suited to taking advantage of solar power. Design of buildings and subdivisions should take the mostly sunny winters and the hot summers into consideration. Southem exposures in the winter and limited western exposure in the summer are both important. Streets which run east-west are m_o__r_e adaptable to solar . energy practices than north-south streets. The ideal building orientation for the Southem California coastal inland regions has been recommended as a 35 degree variation to the southwest of the building's long axis. State Title 24 Energy Regulations establish energy performance Building Code requirements that the City-will feNew-arid has implemented. CONSERVATION AND OPEN SPACE USED FOR THE MANAGED PRODUCTION OF RESOURCES wrnwcoaa: Font: (~~) - Open_ Space areas _for_the managed production of resources with _,_.-- tea: Ford: c> SFr~q regard to this section include agricultural lands and areas containing major mineral deposits. The conservation of open space areas for the managed production of resources does not directly affect lands within the City of Tustin Planning Area. The City of Tustin is an urbanized community and contains limited undeveloped landmost of which is within Tustin Legacv. Very little of this undeveloped jand is currently used for commercial agriculture, __.- rornracted: F«,r: t0efauk) stwd ------------ - _ and it is unlikely that any will be used in the future. The-fenaa++~-gig CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 43 J NE 17dAN11A1~1~-.10, 20084 The only mineral resource identified within the Tustin Planning Area is the Mercury-Barite deposit in Red Hill (the hill). However, this resource is not utilized. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT qq JUNE 17JAN~lAR1'-3S, 2008~- THE RECREATION PLAN The Recreation Plan describes the approach to be used in implementing the goals and policies of this element pertaining to recreation resources and opportunities. The recreation facilities in Tustin play an important part in the lives of Tustin residents. Tustin has been developed with several open space amenities including local public and private recreational facilities, pedestrian and bicycle trails, equestrian trails, and other public open spaces.~een; strong linkages between these open space resources to form a co~hesive~tt~ ~~~ to provide system of open space. RELATION TO LAND USE PLAN The City's Land Use Plan places open space, parkland, and recreational facilities into the Public/Institutional land use category. The PublicMstitutional designation includes a wide range of public and private uses distributed throughout the community such as schools, churches, child care centers, transportation facilities, government offices and facilities, public utilities, libraries, museums, art galleries, community theaters, hospitals, cultural and recreational activities, and community recreational facilities and parks. The Plan also permits Public/Institutional uses in other land use designations when the use serves a local need and is compatible with surrounding development. PARK CLASSIFICATION AND STANDARDS The Recreation Plan establishes a classification system that applies to all existing and future park and recreation facilities in the City. Specific standards, based upon existing parkland, have been developed for each category of park or recreation area. The existing parks and recreational facilities are listed on Table COSR-2. Proposed park and recreation facilities are listed on Table COSR-3. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 45 UNE 17dAN~JAGt_y_--18, y008i gamefields, game courts, swimming pools, and play areas as well as community centers, on-site parking, restrooms, and picnic areas. Regional Parks The County of Orange owns and maintains many regional recreational facilities. Policy for the development, maintenance, and improvement of these parks is provided by the Orange County Recreation Element, which includes a Master Plan for regional recreational facilities in the County. The County currently operates the Peters Canyon Regional Park within the northwesterly portion of East Tustin. The City also supports the County in locating other regional park facilities in the City. A regional park of approximately 84.5 acres (including 11 acres occupied by a blimp hanger] is proposed to be transferred to and operated by the County within the MCAS Tustin Specific Plan area. Outdoor recreation activities and adaptive reuse of existing buildings within this regional park location for recreation-oriented uses is planned. School Playgrounds/Joint Agreements Public school playgrounds under the jurisdiction of the Tustin Unified School District are open to the public after school hours. Organized sports leagues such as those for baseball, soccer, and football utilize ballfields through a permit process with the School District. The City includes some school recreational facilities to meet the overall goal of three acres per 1,000 population. Up to 1.5 acres per 1,000 population can be provided through school recreation areas provided the school recreation areas are open to the public. Opportunities exist to maintain and enhance schoollrecreation joint use agreements with the Tustin Unified School District. Whenever feasible, the City should work to improve agreements with schools to enter into a joint school recreation use and maintenance program. An educational college campus is proposed within #lE~; tie Tustin Leeacv development which could provide recreational facilities open to the public. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT g2 JUNE 17dAN~Y-t 6, 20087 Biking/Hiking Trails The County of Orange maintains a coordinated system of trails, including bikeways, equestrian trails and hiking trails within the City. The Tustin Parks and Recreation and Community Development Departments disseminate public information regarding trail availability, and assists with design review of new trails. Bikeways comprise the most extensive part of the City's trail network. There are three categories of bikeways: ° Class I: a paved path that is separate from any motor vehicle travel cane; ° Class II: a restricted lane within the right of way of a paved roadway for the exclusive or semi-exclusive use of bicycles; and ° Class III: a bikeway that shares the street with motor vehicles or the sidewalk with pedestrians. The biking network in Tustin connects with other trails and paths in adjacent communities and throughout Orange County. Several new bike trails and paths have been proposed. A number of policies included in this Element are concerned with the expansion of the City-wide system of hiking and biking trails. Precise development standards for the various types of trails are difficult to establish since trail width and gradient will depend on topography, surface features, and availability of an easement. The City's trail system includes pedestrian and bike trails within open space corridors and along regional trails which link to local and regional parkland. The bikeways located along the City's street system are addressed in the City's Circulation Element. The MCAS Tustin Specific Plan also includes a Recreational BikewayfTrail Concept Pian that provides an opportunity to complete vital links to local and regional systems. Other Recreational Facilities In addition to its parks and trails, Tustin has many private recreational facilities. While some private facilities (e.g., private parks, tennis courts, CITY OF TUSTIN CONSERVATIOWOPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 53 JUNE 17dANI~Y-4S, 2008T swimming pools) are available only to the residents of the general particular complex in which they are located, others are available to the public for a fee (e.g., Tustin Ranch Golf Course). The City encourages the inclusion of such facilities in private development, especially those open to the public. The MCAS Tustin Specific Plan should also offer opportunities for other forms of commercial or privately operated recreation. These might include ommereial recreation uses, such as health clubs, bowing alleys, family entertainment centers and other activities. FUTURE RECREATION FACILITIES Identifying areas which will be adequately served by existing park facilities and areas for which new parks will be needed is possible by comparing projected build-out for the City with the standards and criteria of this Element. The implementation program for this Element includes a plan showing the approximate number and location of additional park facilities, by category, according to the specific criteria outlined in this Element. This information will be used as a reference tool, along with the above criteria, for planning the acquisition and siting of park facilities. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 54 UJ NE 1717dAN4JARY 16~ 20087 CONSERVATION, OPEN SPACE, AND RECREATION ELEMENT IMPLEMENTATION PROGRAM 1 he Conservation, Open Space, and Recreation Element Implementation Program provides a guide to the community, City Staff, and City officials in day-to-day decision-making by suggesting ways to implement adopted policy. Implementation measures for the Conservation, Open Space, and Recreation Element are intended to preserve natural resources, maintain public health and safety, and provide for the recreational needs of the City's inhabitants. The Implementation Program is a series of actions, procedures, and techniques that cazry out the Element policy through implementing a standard or program. The City Council, by incorporating the Implementation Program into the General Plan, recognizes the importance of long-range planning considerations in day-to-day decision- making, subject to funding constraints. AIR QUALITY The Air Quality Management DisMct (AQMD) has adopted the 2007 I-49~ Air Quality Management Plan (AQMP), an advisory document which identifies a number of air pollution reduction goals, measures and policies. Local jurisdictions have been mandated to reduce a fair share proportion of vehicle generated air pollution through the adoption of a menu of optional Transportation Controt Measures (TCMs) which have been determined by the local agency to be politically and economically feasible. ~#~e-A$M-1~-}s The Orange County League of Cities has provided each Orange County city its fair share trip reduction goal. The City of Tustin has been recently recognized as having met 122% of its allocated vehicle trip reduction goal. Therefore, it is currently assumed that the City will not need to adopt any additional Transportation Control Measures to comply with the 1997 AQMP. In addition, the City closely monitors air quality matters with the intent of complying with future revisions of the AQMP. Therefore, the mitigation measures and policies identified within this document or other measures acceptable to the AQMD will be implemented by the City who will have the discretion to select those transportation control measures that aze economically feasible and will achieve compliance with the 1997 AQMP. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 55 J NE 17JAAt~1ARY-~~~ 2008'` 23. Peter's Canyon Wash: Support the maintenance of Peter's Canyon Wash as an open natural channel through the East Tustin Ranch GolfCourse, and support the County's maintenance of the W ash north of the reservoir in a natural state including the development of a design concept for the Peter's Canyon Regional Park incorporating a natural wildlife habitat. Responsible Agency: Community Development/Engineering Division/Ptanning Division; private golf course owner Funding Source: Private funds/OCFD/State Time Frame: Ongoing Related C/OS/Recreation Element Policies: 5.1, 6.1, 7.2, 7.5 24. Water Quality: Promote improved water quality by the following methods: a) support the Santa Ana Watershed Protection Authority Programs; b) support the Regional Water Quality Control Board Programs and the National Pollution Discharge Elimination System stormwater permit regulations; c) support the efforts of the Orange County Water District to monitor the Santa Ana River water quality; d) enforce the State Department of Health Services well construction standards; e) provide assistance and information to the Federal Environmental Protection Agency, the State Department of Health Services, and Orange County Health Department enforcement program during investigation, regulation and enforcement of water pollution restrictions; f) provide information to industrial operations within the City on methods to reduce or eliminate water contamination; g) work with the Orange County Water District, if financially feasible, to construct facilities adjacent to existing water wells to purify well water and increase production and use of local water, and h) develop local ordinances to regulate the dumping of pollutants into ground water. Responsible Agency: Public Works/Water Services Division Funding Source: City Water Fund Time Frame: Ongoing Related C/OS/Recreation Element Policies: 5.2, 5.4-5.7 CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT ~,q JUNE 17JAAldARY-4~, 2U084 PUBLIC SAFETY ELEMENT PROPOSED AMENDMENTS ° Subsidence and other geologic hazards; ° Wildland/urban interface fires; and ° Evacuation routes. State law also permits dties to add safety issues to this list and to delete issues which are not pertinent. Potential safety issues were researched and documented for preparation of the Public Safety Technical Memorandum that was completed as a background document for the General Plan. The following public safety issues were added to those mentioned above: ° Hazardous materials; ° Law enforcement; and ° Aircraft overflights. RELATED PLANS AND PROGRAMS The Public Safety Element issues relate closely to certain issues discussed in the Land Use and Conservation/Open Space/ Recreation Elements of the General Plan. Tustin is updating its Emergency Preparedness Plan that addresses several hazard areas including seismic, flooding, and hazardous materials. This Emergency Preparedness Plan will be reviewed by`State and Federal _., agendas which have their own roles in the event of an emergency, including the Federa Department of Homeland Security,and the State Office of Emergency Services (OES , SCOPE AND CONTENT OF THE ELEMENT This Element is composed of three major sections: Summary of Public Safety Issues, Needs, Opportunities, and Constraints; Public Safety Goals and Polities; and The Public Safety Plan. The Public -- pormatted: Font oobr: UpM Blue CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 2 JUNE 17JA~lidARY~, 2008 SUMMARY OF PUBLIC SAFETY ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS i ne i ustm Planning Area is affected by many issues, opportunities, and constraints that affect public safety. The following section summarizes these and establishes a basis for future goals and policies. FLOODING ° The Planning Area contains creeks and washes which create potential flooding problems. ° Some Eeastem parts of the City are subject to flooding in a 100- year stomt, ~~-~-and most of the southern and eastern areas of the-Tustin Legacy City-are subject to flooding in a 500-year storm; I however, no significant flooding has occurred in the last decade. ° The City has applied to the Federal Emergency Management Agency for modification of the Flood Insurance Rate Maps where needed to reflect flood improvements as they are made in the City. ° The Santiago and Villa Park Reservoirs could inundate parts of the Planning Area if their dams failed. SEISMIC HAZARDS ° The Tustin Planning Area lies within a seismically active region. ° No known active or suspected potentially active faults exist within the Planning Area. The EI Modena fault passes through the Planning Area's northern section; however, studies have not been contusive about the active~nactive status of this fault. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 4 JUNE 17dANt~ARY--;B, 2008T ° The City lies under the Instrument Landing System Corridor of John Wayne International Airport ai+-helds: ° The Planning Area does not lie within any of John Wayne's safety zones. EMERGENCY PREPAREDNESS PLANNING/DISASTER RESPONSE The City's Emergency Operations Plan is a multihazard planning document which is in compliance with State and Federal Emergency Planning Requirements Training and exercises are penodlcally conducted to educate staff on their emergency responsibilities and to assist in identifying procedures and functions which require further preparedness and training activities. _ ar CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 6 JUNE 17dAAltdAF~`~-1~, 2U08_~ Policy 1.7: Encourage the Orange County Flood Control District to maintain scheduled debris removal from flood channels. GOAL 2: Minimize risk from upstream dam failures. Policy 2.1: Provide the public with information regarding emergency preparedness in event of dam failure. Policy 2.2: Work with other responsible agencies to ensure and improve the safety of the Santiago and Villa Park Reservoirs. SEISMIC HAZARDS Geologic and seismic hazards can be reduced to avoid unnecessary risk. Appropriate planning and preparedness actions will minimize exposure to these hazards. GOAL 3: Reduce the risk to the community from geologic and seismic hazards. Policy 3.1: Require review of soil and geologic conditions by aState- Licensed Engineering Geologist to determine stability prior to the approval of development where appropriate. Policy 3.2: Maintain and regularly update all seismic and geologic information regarding safety, and ensure the consistency of that information with other affected agenaes. Policy 3.3: Encourage development which utilizes the desirable existing features of land such as natural vegetation, geologic features, and other natural features which preserve the site's signficant identity. Policy 3.4: Regulate the structural seismic safety of atl buildings I located within the City, praer-te-x-933. Inventory tilt-up industrial buildings built prior to 1974. Policy 3.5: Ensure that structures for human occupancy, critical structures, and vital emergency faafities are designed to minimize CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 8 JUNE 17dANUAR-Y_30, 2008& Air operations associated with John Wayne International Airport and RAGGAS-Bastin represent a potential hazard for the community. The risk from this hazard can be minimized through proper planning of land use. GOAL T: Minimize the level of danger to life and property from air operations accidents. Policy 7.1: Develop criteria to regulate the type and intensity of developments in areas of known potential air operations hazards. Policy 7.2: Coordinate land use planning and emergency preparedness planning with John Wayne Airport officials. Policy 7.3: Monitor legislation promulgated by the FAA which could eliminate local flight restrictions on John Wayne Airport. Policy 7.4: Establish criteria for review and siting of heliports and helipads. Policy 7.5: Encourage Tustin citizen partiapation and City involvement on committees which would impact future aircraft operations in Orange County. Policy 7.6: Work to reduce risks and noise impacts resulting from aircraft operations by: partiapating in and monitoring the planning processes for John Wayne Airport feFair'pert-uses;-(r~-and b continuing to discourage commercial or general aviation activities which increase noise exposure or general safety risks to Tustin residents. EMERGENCY PREPAREDNESS PLANNING/DISASTER RESPONSE Proper preparation for major emergenaes is necessary to minimize disruption, personal injury, and property damage. Preventive measures taken before an emergency occurs can hasten recovery from such inadents. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 13 JUNE 17JANUAf4a'-16, 2008 GOAL 8: Improve the City's ability to respond to natural and man-made emergencies. Policy 8.1: Maintain an up-to-date Emergency Operations Plan identifying all available resources and funds for use in the event of a disaster and establishing implementing actions or procedures under the Plan for rescue efforts, medical efforts, emergency shelters, provision of supplies, and all other response efforts recommended by the State Office of Emergency Services and the Federal Emergency Management Agency (FEMA). Include procedures for dealing with speafic events such as earthquake, major rail and roadway acadents, flooding, and hazardous materials. Policy 8.2: Coordinate with Orange County and the Federal Emergency Management Agency in reduang community risks in the event of a disaster. I Policy 8.3: Sper~seF-a,~d--sSupport public education programs for emergency preparedness and disaster response; distribute ~ information about emergency planning to community groups, schools, churches, and business assoaations; and hold emergency drills in various parts of Tustin to test the effectiveness of emergency preparedness plans. Policy 8.4: Maintain a high level of multi jurisdictional cooperation and communication for emergency planning and management and soliat partiapation from private sector sources (i.e., ham radio, cellular telephone, etc.) to enhance local communication and response capability. 60AL 9: Reduce the amount of personal Injury, damage to property, and economic or social dislocation as the result of disaster. Policy 8.1: Existing vital facilities not designed to be disaster- resistant should be examined, and hazardous str~stures-conditions should b fully mitigated. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN l4 JUNE 17dANUAF~1c_3&, 2008T The Public Safety Plan describes the approach to be used in implementing the Public Safety Element goals and policies. The goals and policies of the Element provide direction for specific actions by the City. How Tustin achieves those goals and implements those policies is determined by programs, actions, and cooperative efforts sponsored or participated in by the City. FLOODING As indicated in the Summary of Issues, Needs, Opportunities, and Constraints, flooding can potentially occur throughout the Planning Area. The Planning. Area contains many creeks and washes; however, few parts of the Planning Area have been identified as areas within a 100-year storm flood area. Areas that have been so designated have not flooded within the last 10 years and are less susceptible to flooding due to more recent storm drain and flood control improvements. As new development occurs, the City has and will continue to improve or require the improvement of flood control facilities. These flood control improvements will be coordinated with Circulation Element roadway construction projects to ensure that major thoroughfares in the City are useable during 100-year storm conditions. Improvement of the Peters Carryon Channel so that runoff from a 100-year storm coulda~ be carried representeds an important flood control project requiring the joint efforts of the City and the Orange County Flood Control District. Flood control will also be improved through the use of detention basins in appropriate areas. Future development in areas near public water storage reservoirs will be designed so that any damage that might result from leaks or ruptures to storage faalities is minimized. Additionally, the City has applied to the Federal Emergency Management Agency for revision of the Flood Insurance Rate Maps. The risk of flooding resulting from dam breaches or failures will be reduced by working directly with the State Office of Emergency Services to make physical improvements (if necessary) and monitor the safety of the Santiago and Villa Park Reservoirs. The potential for loss of life associated with dam breaches or failures will be reduced CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 17 JUNE 17dANUA~t-Y-1-E~, 2084 Like most military faalities, MCAS Tustin I~-been was a user of hazardous materials and there have been many documented leaks and spills since base commissioning in 1942. In 1980, Congress passed the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) which required the Department of Defense (the Department of Navy assumes this role for MCAS Tustin) to begin work to identify, investigate, and clean-up hazardous waste disposal sites and areas of potential contamination at military bases. The military l~a~created a team to organize and implement a Base Closure and Realignment Act Base Cleanup Plan (BCP). The purpose of the BCP is to summarize the status of current environmental restoration and associated environmental compliance programs in support of base closure and to provide a strategy for integrating all ongoing site activities in a comprehensive and efficient manner that protects human health and the environment. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 20 JUNE 17JAAlllAR~' lg, 2008 The BCP will integrate and coordinate activities under the Installation Restoration Program (IRP), the Resource Conservation and Recovery Act (RCRA), and other compliance programs which are ongoing at the closed base. The Program will identify all sites of potential contamination, investigate those with the potential to affect human health and the environment, and remediate all sites as necessary to meet applicable federal, state, and local standards. FIRE HAZARDS Two main problems contribute to fire hazards in Tustin, low water pressure and large areas of dry vegetation. The primary program to improve fire protection will be to upgrade water lines in areas where pressure is deficient. Acceptable water pressure and fire department response time standards are shown in Table PS-3. Fire protection will also be improved by establishing and maintaining mutual aid agreements with surrounding jurisdictions. A primary means of improving fire prevention will be the requirement of construction materials that are either speafically fire resistant or of low fuel value. Education also plays an important role in fire safety. Particularly in wildland interface areas, people must be made aware of the fire danger in natural and open space areas, particularly in the fire season. Education programs will be sponsored in rrooperation with the local fire department. CRIME/LAW ENFORCEMENT As urban development progresses through Orange County, parts of Tustin become more susceptible to crime. Efforts to reduce crime have met with some success. Even though crime has increased, a higher percentage of reported crimes are now resulting in arrest. Reducing crime effectively is a time and labor intensive effort. The City will do everything possible to increase service levels and acquire CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 24 JUNE 17JAN4JARY-i~, 20081 funding to do so. Table PS-3 shows Police Department standards for responding to calls. Public awareness is also vital in the fight against crime. The City will encourage an activated citizenry to "take ownership" of their streets, report crimes, and be a visible presence. One such program is Neighborhood Watch and community oriented policing. The City will also work with the atizens in creating a force of volunteers. Such a program has been proven effective in some other Southern California cities. TABLE PS-3 EMERGENCY SERVICES STANDARDS FIRE RESPONSE First Engine Company: 5 minutes to 90% of incidents EMERGENCY Basic Life Support Unit: 5 minutes to 90°~ of MEDICAL incidents Advance Life Support Unit: 10 minutes to 90% of incidents POLICE RESPONSE Emergency calls: 3.5 minutes Non-emergency calls: 13 minutes Another method that the City can use in the fight against crime is to ensure that new construction is designed in a way that discourages gang activity and other aggressive lawless behavior. Some examples of "protective architecture" or defensible space are well lit entryways, lack of convenient hiding places, entryways which are easily seen from the street, and other similar concepts. AIRCRAFT OVERFLIGHT HAZARDS Large parts of Tustin's residential areas lie underneath the flightpaths of John Wayne-I~ternatier~at ,airport. While the City's power to limit the operational activities of these facilities is extremely limited, the City can participate in land use control within the flight paths and the legislative process which regulates civilian and CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 25 JUNE 17dAA11JAt~Y--18, 2008 military air operations. This includes coordinating land use planning and emergency preparedness planning with the County's Airport Land Use Commission and; John Wayne Airport, ethsiais. F Flight operations involving blimps may occur as an interim use at former MCAS Tustin. The MCAS Tustin Specific Plan also allows heliports as a conditional use. These operations may require amendment of the Airport Environs Land Use Plan (AELUP) to address specific noise and safety factors associated with blimp and helicopter flights. All development proposals affected by the airport land use commission consistency criteria are referred to the Airport Land Use Commission (ALUC). The ALUC reviews areas within the 60 dB CNEL contour, areas within the Safe Compatibility Zones, areas with Building Height restrictions, or within specified distances from runway surfaces. As with most controversial safety related topics, the involvement of dozens is of great importance. The City will encourage and notify residents of opportunities to become involved in airport related issues. AGENCY RESPON3IBILITIE3 AND COORDINATION The City contracts with the Orange County Fire Authority for Fire and Paramedic Services. Other agendas which have jurisdiction or which provide public safety services within Tustin include the California Highway Patrol, and the Orange County Health Department. The City coordinates with these agendas to provide the highest level of public safety services. The City will continue to work with these agendas to ensure adequate service. Plans for proposed developments, including City projects, will be sent to appropriate agencies for their review and comment. This will occur whether or not an environmental impact report is prepared. An integral part of the updated Emergency Operations Plan will be the explanation of the appropriate responses and responsibilities of CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 26 JUNE 17-1G, 2008 individual agencies and the interagency coordination required to implement emergency procedures. The Southern Catifomia Earthquake Preparedness Project (SCEPP) is a State and federally-funded effort to encourage local jurisdictions to prepare for catastrophic earthquakes that may occur in Southern Catifomia. SCEPP recommendations have also been approved by the Orange County Board of Supervisors. SCEPP works directly with local governments, private industry, and volunteer groups in a cooperative planning effort. It addresses the full range of earthquake strategies, including mitigation (long term response), prediction (short term response), emergency actions, and recovery. EMERGENCY RESPONSE AND ACTION This section of the Public Safety Element discusses emergency E preparedness planning needed to respond to major disasters. With 1 ~ Tustin's rese-~t4y--updated Emergency Operations Plan, the reader or user of this Element is able to review that document in conjunction with the material contained here: The Emergency Operations Plan is meant to be a preparedness document, designed to be read before a disaster, not in response to one. Each dty must have a plan for response to emergency and disaster situations. The City of Tustin currently has an Emergency Operations Plan. The plan establishes response procedures for peace and wartime disasters. The Plan conforms to the provisions of the California Emergency Preparedness Plan and Emergency Resources Management Plan which apply to dty governments. The Plan will be adopted in 1997 to compty with state law and the standard emergency management system (BEMs). Emergency Evacuation The City's Emergency Operations Plan identifies routes through the City which are suitable for use as evacuation routes. The extent and severity of a disaster will determine which routes and which directions CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 27 JUNE 17dAAJU~Y-16, 20083 people may take in order to escape the afflicted areas. Figure PS-1 shows the City's emergency evacuation routes. Emergency Response Personnel First response will be provided by the City Police Department, County Fire Authority and Public Works Department who bear most of the responsibility for providing emergency services. In addition to the above agendes, in the event of a major disaster, other City, County, and State personnel assume local emergency response roles. The updated Emergency Operations Plan wiN-details these roles and responsibilities. Table PS-4 shows which agendes are responsible for various tasks in emergency situations and Table PS-5 shows the City's emergency operation center organization. Emergency Shelters In the event of either a natural or man-made disaster, homes may be destroyed or be inaccessible for extended periods of time. Area residents will need some form of temporary shelter. The American Red Cross bears primary responsibility for providing emergency shelter to displaced residents. The Red Cross maintains an inventory of sites suitable for use as emergency shelters. The site or sites used in a particular emergency depend upon the scope and scale of the emergency and the length of time required to shelter the refugees. Sites most frequently used for shelter are schools, senior centers, community centers, public buildings, and churches. In the event of a disaster, the City will adtvate their Care and Shelter operations and provide food, dothing, shelter and other basic necessities of life, and continue to cooperate with the Red Cross to make City owned fadlities available as emergency shelters. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 28 JUNE 17dANIdARl=--3~, 2008 E uses under air traffic corridors in order to reduce the potential accidents affecting highly populated areas; and Regulate new construction within floodplain areas through the City's Floodplain Management Ordinance, making modifications as necessary to the Ordinance to reflect FEMA information. g. Reduce public safety risks resulting from aircraft operations by ' participating in and monitoring the planning processes for John Wayne Airport y continuing to monitor proposed activities, expansions or alterations off use and responding to environmental documents for related projects. Responsible Agency: County of Orange/Community Development Funding Source: Variety of sources Time Frame: Ongoing Related Public Safety Element Policies: 1.1, 7.1 FLOODING 2. Flood Control Facilities: Flood control improvements and maintenance will be monitored where necessary, and such improvements and maintenance will be coordinated with the range County Flood Control District, State Water Resources Board, Regional Water Quality Control Board, Department of Fish and Game, and Army Corps of Engineers. The City will continue to apply to the Federal Emergency Management Agency for the revision of Flood Insurance Rate Maps to reflect flood control facility improvements. Responsible Agency: Public Works CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 34 JUNE 17JAN61ARY.-t6, y008~ 5. Construction Codes: Adopt current Uniform Building, Administrative, Housing, Mechanical, Plumbing and National Electrical Codes, and recommend amendments to standards and uniform codes for special application in Tustin reflecting special topographic, geologic and climatic conditions. Responsible Agency: Community Development Funding Source: City General Fund/Building Fees/Project Review Fees Time Frame: Ongoing Related Public Safety Element Policies: 3.1, 3.3-3.5, 9.1, 9.4 HAZARDOUS AND TOXIC AAATERIALS 6. Control of Hazardous Wastes: Enforce provisions of the City's Hazardous Waste Facilities Ordinance and the Household Hazardous Waste component. Adopt amendments as necessary to update the plans to-generate protectien of City residents from danger resulting from transportation, storage, disposal or use of hazardous waste within the City. Collaborate with appropriate agencies and industries to define responsibilities and cost allocation procedures for repair and clean-up of hazardous, dangerous, toxic, and other materials. Responsible Agency: Community Development/OrangeGounty Fire Authority Funding Source: City General Fund/County of Orange Waste Management Time Frame: Ongoing Related Public Safety Element Policies: 4.3, 4.5, 4.7, 4.8, 4.10- 4.12, 4.14 FIRE HAZARDS CITY OF TUSTiN PUBLIC SAFETY ELEMENT GENERAL PLAN 36 JUNE 17JANkJAFtX-1~, 2008 and Building Code amendments, Specific Plans, and proposed structures which would penetrate the imaginary surface established by the ALUC to the ALUC for review. Responsible Agency: Community Development Funding Source: City General Fund Time Frame: Ongoing Related Public Safety Element Policies: 7.1, 7.2 AGENCY RESPONSIBILITIES AND COORDINATION 10. Emergency Plan and Interagency Coordination: Promote public agency responsiveness to emergency situations through: (a) periodic review and update of emergency plans and coordination with °° other jurisdictions in implementing those plans; (b) coordination with other jurisdictions in the coliecction, processing, and dissemination of technical information; (c) regular practice of the City's Emergency Operations Plan by city personnel in a simulated setting; (d) City employee training sessions in emergency response and management . skills; (e) preparation of a recovery plan for reconstruction of essential services and facilities in the event of an emergency; (f) development of needed resources and identification of available sources of funding for emergency response; (g) maintenance of an emergency operation center in the Civic Center, and (h) establishment and implementation of procedures for prioritizing services and assistance provided and requested by mutual aid organizations. Responsible Agency: All City Departments, Orange County Fire Authority Funding Source: City General Fund, State Funding, Federal Funding, Orange County Funding Time Frame: Ongoing Related Public Safety Element Policies: 3.2, 3.7, 3.8, 4.1, 4.2, 4.4, 4.9,4.15,5.1,5.3,5.6,6.4,7.2,7.3,8.1,8.2,8.4 CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 38 JUNE 17JANY_.lg, 20p8~ NOISE ELEMENT PROPOSED AMENDMENTS ° Increases in traffic volumes will increase noise levels throughout Tustin. O TL _ _ _.. O ° Noise from train movements and whistles on the Southern California Rail Authority (SCRRA) rail line significantly affects nearby residences. NOISE AND LAND USE PLANNING INTEGRATION Availability of manpower and expertise needed to perform noise measurements and to identify noise control measures in the enforcement of dty, state and federal laws is limited. Noise control measures and noise-related compatibility considerations need to be included in all new land use developments. Enforcement of city, state and federal requirements regarding noise control is necessary, spedfically: The City's noise ordi- nance regarding intrusive noise, the state vehicle code and provisions regarding mufflers and excessively loud radios, the state noise insulation standards for multifamily developmerrts, and the federal and state requirements regarding noise control in work places. Many commerdal and residential uses in Tustin are located near one another, creating potential noise conflicts between these uses. Trucking operations and mechanical equipment associated with commerda~ndustrial activities impact nearby residences. CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 6 JUNE 17dADlUA~iK-i8, 2008 NOISE ELEMENT GOALS AND POLICIES A substantial portion of the City is affected by various sources of noise. The following goals and policies are intended to address identified noise issues in the community. TRANSPORTATION NOISE CONTROL Transportation-related activities are primary sources of noise affecting the quality of life in Tustin. Effective reduction of noise assoaated with transportation is necessary to ensure protection from the detrimental effects of excessive noise. GOAL 1: Uae noise control measures to reduce the impact from transportation noise sources. Policy 1.1: Pursue construction of new barriers, or the augmentation of existing barriers, to reduce noise impacts along the Route 5 and Route 55 freeways along segments directly next to residential areas. Policy 1.2: e€tge-prejeet: Intentionally omitEed Policy 1.3: Encourage John Wayne Airport to set up noise control procedures and to consider methods to reduce and minimize noise exposure due to aircraft flyovers within the Tustin Planning Area. Policy 1.4: Continue to monitor all John Wayne Airport activities to minimize noise impacts within the Tustin Planning Area resulting from airport operations, and oppose legislation promulgated by the FAA that could eliminate local flight restrictions. Policy 1.5: Work to reduce risks and noise impacts resulting from aircraft operations by a CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 8 JUNE 17JAN4JAR1=18, 2008J- partidpateing in and monitoring the planning processes for John Wayne Airport ar•d-reuse of #IASAg E{ _T~e- (sj-and b continuin~C a to discourage commercial or general aviation activities which increase noise exposure. Policy 1.6: Encourage Tustin citizen participation and City involvement on committees that would influence future aircraft operations in Orange County. Policy 1.7: Encourage construction of noise barriers by the Public Utilities Commission, Southern California Regional Rail Authority, Amtrak, and Orange County Transportation Authority along the Atchison, Topeka and Santa Fe rail line where residences exist next to the trades. Policy 1.8: Encourage the Public Utilities Commission, Southern California Regional Rail Authority, Amtrak, and the Orange County Transportation Authority to minimize the level of noise produced by train movements and whistle noise within the Planning Area by reduang speeds, improving vehicle system technology and develop- ing improved procedures for train engineer whistle blowing. Policy 1.9: Encourage, where feasible, noise mitigation measures, such as noise barriers and realignments, in the design and construction of new roadway projects in the Tustin Planning Area. Policy 1.10: Enforce the State's Vehicle Code noise standards within the City. Policy 1.11: Consider noise impacts to residential neighborhoods when designating truck routes and major dreulation corridors. Policy 1.12: Work witl~ the Orange County Transportation Agency to establish bus routes that. meet public transportation needs and minimize noise impacts in residential areas. NOISE AND LAND USE PLANNING INTEGRATION Consideration of the effects of noise early in the land use planning Process can minimize or avoid detrimental impacts. ciTV of TusnN GENERAL PLAN 9 NOISE ELEMENT JUNE 17dANLlAR-1!~ g, 2008 i Areas of Special Concern Areas of special concern within the Noise ImpactArea are nearthe I-5 and SR-55 freeways. At these locations the existing CNEL ranges from 70 to 80 dB. Caltranswdl-constructed soundwalls along these freeways as part of the freeway widening projects. These walls will-reduce the CNEL at ---- the adjacent residence ,---- --------------------------------_---'_ rorn,acted: rvnc oo~or: Lf~t Bhie Residences next to a number of major and secondary arterials in the Tustin Planning Area are also exposed to a CNEL over 65 d6. These arterials indude: ° Bryan Avenue ° Fairhaven Avenue ° Newport Avenue ° Yorba Street ° Browning Avenue ° EI Camino Real ° Walnut Avenue ° Edinger Street ° Irvine Boulevard ° Red Hill Avenue ° Prospect Avenue ° 17th Street ° McFadden Street °SycamoreAvenue Measurements have shown that residences located next to the Southern California Regional Rail Authority (SCRRA) rail tine are sa~e+~tyr-were exposed to a CNEL of about 70 dB and maximum noise levels of 78 dB(A). By the year 2010, the CNEL at the adjacent residences will increase by as much as 6 dB due to increased rail activity related to commuter rail activities along the SCRRA/OCTA railway (Metrolink). The primary source of annoyance at these loca- tions will be afternoon and early morning peak hour train passes. LAND USE COMPATIBILITY GUIDELINES AND STANDARDS Table N-2 provides guidance for the acceptability of certain develop- ment projects within spedfic CNEL contours and will act as a set of criteria for assessing the compatibility of proposed land uses within the noise environment. Land Use Compatibility Guidelines are the basis for development of the spedfic noise standards presented in table N-3 which should be utilized as dty policy related to new land uses and acceptable noise levels development. CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 15 JUNE 17dANkJARY-16. 200&1 TRANSPORTATION NOISE CONTROL The most effldent and effective means of controlling noise from trans- portation systems is to reduce noise at the source. However, since the City has little direct control over source noise levels because of state and federal preemption (i.e., State motor vehide noise standards and Federal air regulations), programs should be focused on redudng the impact of the noise on the community. Cooperative efforts with state and federal offices are essential. Within the Tustin Planning Area are several transportation related noise sources inducting train tracks, two freeways, major arterials, collector roadways, , and a oommerdal airport. Although MCAS Tustin is dosed in 1999, blimp flight operations may occur as an interim use. These sources are the major contributors of noise in Tustin. Cost effective strategies to reduce their influence on the community noise environment are an essential part of the Noise Element. CITY OF TUSTIN GENERAL PLAN l~ NOISE ELEMENT JUNE 17dAN~1,4F~X-16, 2008 The Califomia Vehicle Code contains noise limits applicable to new vehides at the time of manufacture and noise regulations pertaining to the operation of all vehides on public roads. The City will provide for continued evaluation and enforcement of truck and bus movements and routes to minimize noise at the source for sensitive land uses. Regulation of traffic flow can also signficantiy minimize noise impacts. The State Motor Vehicle noise standards for cars, trucks, and motorcycles will be enforced through k~ordination with the Califomia Highway Patrol and the Tustin Police. The City and its citizens will also partidpate in the planning processes for John Wayne Airport, Any changes in operations or land uses within the fadlityies that will increase noise exposures in the Planning Area will be opposed. The City will encourage implementation of procedures that will reduce noise levels in the area and will minimize the number of aircraft overflights. NON-TRANSPORTATION NOISE CONTROL People, and noise sensitive areas, must be protected from excessive noise generated bynon-transportation sources including commercial and industrial centers. These impacts are most effectively controlled through the environmental and site plan review process by imposition of mitigation measures and the application of a City Noise Orclinance. Typical Mltlgatlon for Industrial and Commercial Uaess Consideration should be given to the control of noise in new commercal and industrial developments when noise levels would otherwise be generated that would exceed the noise level for the district in which they are located and that would adversely affect nearby projects. The following mitigation measures could be applied when reviewing these new projects: Furnaces -Acoustically treat natural draft and/or forced draft units and combustion air intake plena. Insulation of firing walls and damped and lined ducting are but a few of the treatments that could be considered. CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 21 JUNE 17JAAlIlAbZ1~-~, 2008 The City will seek assistance from the Public Utilities Commission, Southem Califomia Regional Rail Authority, OCTA, and Amtrak in achieving these methods of noise protection for residential and other sensitive uses. Responsible Agency/Department: Community Development, Public Works/Engineering Funding Source: Public Utilities Commission, Southem Califomia Regional Rail Authority, OCTA, Amtrak, Redevelopment Agency Time Frame: Ongoing Related Nolae Element Policies: 1.7, 1.8 3. Vehicle Noise Control: To minimize or reduce noise impacts on residential and other sensitive land uses, the City will: 1) enforce and periodically evaluate truck and bus movements and routes to reduce impacts on sensitive areas; and 2) promote coordination between City Police and the Califomia Highway Patrol to enforce the State Motor Vehicle noise standards. Responsible Agency/Department: Community Development, Public Worics/Engineering, Police Dept., CHP Funding Source: City General Fund Time Frame: Ongoing Related Noise Element Policies: 1.1, 1.2, 1.9-1.12 4. Aviation Noise: Work to reduce noise impacts resulting from aircraft operations at+~d John Wayne Airport by. (a) partiapating and monitoring the planning processes for John Wayne Airport (b) continuing to discourage general and commeraal aviation activities which increase noise exposure to sensitive land uses. Responsible Agency/Department: Community Development Funding Source: City General Fund clrr of rusnN GENERAL PLAN 25 NOISE ELEMENT JUNE 17dAP1t~ARY-1-g, y008~ GROWTH MANAGEMENT ELEMENT PROPOSED AMENDMENTS elements as set forth in the Orange County, Countywide Growth Management Program Implementation Manual of April, 1991. Tustin is a largely developed community with most of its infrastructure already in place. For this reason it is considered a Developed Community for the purposes of Measure M. As a result, this element does not need to address certain infrastructure issues, such as fire, sheriff/police, and library faalities, required to be addressed by developing communities. ,The former Tustin Marine Corps Air Station has significant infrastructure needs in-t#e-#uture-to support the development of Tustin Leoacv Infrastructure planning wi#I-be-was integrated into the planning fer##~ of the site and redevelopment of the former base will be required to address the-costs and timing of additional infrastructure required to 3@rV@ It. CONSISTENCY WITH OTHER GENERAL PLAN ELEMENTS A major goal of the Growth Management Element is to ensure that the planning, management and implementation of traffic improvements and public faalities are adequate to meet the current and projected needs of the City. While this goal is a high priority, it must be achieved while maintaining internal consistency among the other elements of the General Plan as required by State law. Therefore, the Growth Management Element does not replace or supersede any of the other General Plan elements; instead, the Element addresses, amplifies and supports the goals and polices that are included in the other General Plan elements and establishes new goals and policies where necessary. The Growth Management Element is implemented through various coordinated programs developed to support and carry out its goals, objectives and polices. In addition, this element minimizes duplication between Measure M and Congestion Management CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 2 JUNE 17dANiJAR.~ 16, 2008 Program (CMP) requirements (see Related Plans and Programs below). RELATED PLANS AND PROGRAMS Many federal, state, regional, and Orange County plans and laws affect growth management in the City. Broadly, they include the Orange County Growth Management Plan, the Southern California Association of Governments (SCAG) Growth Management Plan, South Coast Air Quality Management Plan (AGZMP), State Assembly Bill 471 (Proposition 111 -Congestion Management), and Measures M and M2 (Orange County). Of all of these measures, M/M2 will have the most direct and significant impact upon the City's Growth Management Plan. Each of these plans and/or systems is described below. Orange County Growth Management Plan Element The stated purpose of the Orange County Growth Management Plan Element is to ensure that the planning, management and implementation of traffic improvements and public facilities are adequate to meet the current and projected needs of Orange County. The Plan sets forth goals, objed'rves, policies, and implementation programs for growth management. The goals of the Plan are summarized as follows: "...to reduce traffic congestion, ensure that adequate transportation faalities, public faalities, equipment and service are provided for existing and future residents and to protect the natural environment of Orange CouMy." The Pian establishes the following five major policies: 1. Development Phasing: Development will be phased according to Comprehensive Phasing Plans (CPPs) adopted by the County. Phasing will be linked to roadway and public facility capaaties. 2. Balanced Community Development: Development will be balanced to encourage employment of local residents and both CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 3 JUNE 17JAA~tUAitY-1&, 2008T x improvements implemented through Development Agreements must be consistent with the overall Orange County Growth Management Plan. The Orange County Growth Management Plan Element further provides that additional implementation programs may be developed as deemed necessary by the County. SCAG Growth Management Plan The SCAG Growth Management Plan recommends ways to redirect the region's growth in order to minimize congestion and better protect the environment. While SCAG has no authority to mandate implementation of its Growth Management Plan, some of the Plan's principal goals (such as improved jobs/housing balance) are being implemented through the South Coast Air Quality Management Plan (AQMD) which the South Coast Air Quality Management District does have the authority to implement. South Coast Air Quality Management Plan The South Coast Air Quality Management Plan mandates a variety of measures to reduce traffic congestion and improve air quality, r.~..~, all AQMP requirements for local jurisdictions. The City is subject to Assembly Bill 471 (Proposition 111) Assembly Bill (AB) 471, as subsequently modified by Assembly Bill 1791, requires every urbanized city and county with a population of 50,000 or more, to adopt a Congestion Management Plan (CMP) to reduce traffic congestion. A city or county which does not comply with the CMP requirement will lose gasoline sales tax revenues to which it would otherwise be entitled. Tustin has completed a CMP for its x-95-1 CITY OF TUSTIN GENERAL PLAN GROWTH MANAGEMENT ELEMENT JUNE 17dAN1~AF~X-1&, 2~8~ 2007 submittal, and will continue to work with the County on annual updates to the CMP. The CMP requirements include traffic level of service (LOS) standards, a trip reduction program, and aseven-year capital improvements program for traffic and transit. Many of the AB 471 requirements are the same or similar to the requirements of Measure M (discussed below). The County has attempted to reconale overlapping requirements through the Measure M implementation guidelines. (see Countywide Growth Management Program Revised Traffic Improvement and Growth Management Ordinance Implementafion Manual). Measures M and MZ Orange County voters approved a measure (Measure M) in 1990 to allocate additional funds to provide needed transportation faalities in Orange County. Measure M specifically authorized a half cent retail sales tax increase for a period of 20 years effective April 1,1991. The monies received from Measure M w+il- be--are returned to local jurisdictions for use on local and regional transportation improvements and maintenance projects. The tax is estimated to raise approximately $3.1 billion Countywide over the 20 years. The County of Orange is divided into eleven (11) GMA's and the City of Tustin is currently contained within GMA #7 along with portions of the tides of Irvine, Santa Ana, Orange and the County of Orange. T#e-estin-ated In order to qualify for these revenues, however, Measure M requires each City to comply with the Orange County Division, League of California Cities -Countywide Traffic Improvement and Growth Management Program which was included by reference in the Measure M ordinance. The Countywide Growth Management Program is designed to achieve a cooperative process among local Orange County jurisdictions to coordinate and implement traffic improvements and stronger planning on a Countywide basis. Measure M2 was approved by voters in November 2007 and extended the imposition of the one-half percent sales tax increase to fund transportation improvements for an additional 30 vears. CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 6 JUNE 17dAAl~JAF~Y-7~, 20081 In order to receive its allocation of Measure M funds, the City must submit a statement of compliance with the growth management components which are summarized as follows: Adoption of a Growth Management Element that includes: - Traffic Level of Service (LOS) standards - Development mitigation program - Development phasing and annual monitoring program Participation in interjurisdictional planning fonrms Development of a 7-year Capital Improvement Program Address housing options and job oppo-tunities Adoption of a Transportation Demand Management Ordinance. PLANNED TRANSPORTATION IMPROVEMENTS As the City of Tustin and the entire southern California region continues to grow, additional demands will be placed on the transportation network within the City. The following major transportation programs and projects have been identified as part of the Tustin General Plan update to help alleviate future traffic congestion: 0 SeFrader; Buildout of existing and proposed arterials, collectors, interchanges, and superstreet links, including extension of Newport Avenue from south of Sycamore Avenue to Valencia Avenue and extension of Tustin Ranch Road from Walnut Avenue to Edinger Avenue. CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 7 JUNE 17dANUAR-Y__1g, 20081 GROWTH MANAGEMENT ISSUES, NEEDS, OPPORTUNITIES AND CONSTRAINTS I The City of Tustin is part of a large, fast-growing region. se; tThe pace of new development has began-te-e~~~xceeded the ability of infrastructure to adequately support that development. The Growth Management Element addresses primarily the issues associated with rapid growth, traffic congestion, and transportation fadlities. ° The City's senstan~rate of growth and development and impacts of growth in adjacent jurisdictions and throughout the County has created a necessity for a regional approach to transportation growth management. A significant portion of transportation problems in the County stem ftom the inadequate capacity of the fteeway system to serve peak period travel demands. This lads of capadty results in poor levels of service characterized by severe congestion and low travel speeds during peak hours. The most severe congestion occurs at the junction of I-5 and SR-55. Actual highways are intended to handle the bulk ofinfra-regional traffic and complement the fteeway system and local street network. As congestion increases on the freeway, more drivers utilize the arterial system, particularly those that parallel the freeways or those arterials serving the same trip destination as the freeway. Consequently, these arterials, such as Newport Avenue, Red IaHill Avenue, and Irvine Boulevard are becoming increasingly congested and receive heavy traffic volumes well in excess of their design capadty. This situation is of spedal concern on those arterials which provide access to the freeway system. ° The City's transportation system is greath- influenced by two freeways which run through the City -the I-5 (Santa Ana) Freeway and the SR-55 (Newport-Costa Mesa) Freeway. ° Traffic congestion in Tustin is as much a regional as it is a local problem. The development which occurs in neighboring jurisdiciions and throughout the County has effects upon the CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 9 JUNE 17JAN13AF~Y~, 2008 GROWTH MANAGEMENT ELEMENT GOALS AND POLICIES The following new goals and poliaea are designed to meet ali the Growth Management Element requirements for Developed CommuniNea as set forth by Measuro M and elaborated by the Countywide Growth Management Program Implementatbn Manual. TRAFFIC CONGESTION Traffic crongestion is a problem on local streets as well as arterials and regional freeways. In particular, heavy traffic volumes in Tustin exist along Red #Hill Avenue between Warner Avenue and Edinger Avenue, along Seventeenth Street in the vicinity of Yorba Street, and along Irvine Boulevard between the Newport-Costa Mena Freeway and Browning Avenue. Traffic volumes along the I-5 oomidor are also extremely heavy and cause significant slowing during the peak hours. GOAL 1: Reduce traffic congestion. Poly 1.1: Within three years of the issuance of the first building permit for a development project or within flue years of the first grading permit for said develolurlent project, whichever occurs first, ensuro that the nec~saary improvements to transportation facllitles to whk~ the project oonMbutes measurable traffic aro constructed and completed to attain Level of Service (LOS) "D" at the intersections under the sob control of the City. Irrteraedions under the jurisdiction of another City or the County or the State or those included on the Defldent Intersection List estabNahed by the City and compiled by the GMA (Growth Management Area) in which the City pariiclpatea (see Policy 3.1) are exempt from this requirement. Policy 1.2: Level of Service (LOS) will be measured by the Traffic Level of Service Policy Implementation Manual established by the Local Transportation Authority. CnY OF TUSTiN GROWTH MANAGEMENT ELEMENT I GENERAL PLAN 1l ,TUNE 17dA18, 2008 Polley 1.3: All development contributtng measurable impacts to intersedlons on the Defirtient Intersection List and all projects contributing cumulatively, or individually, 10 percent or more of the traff~ using an intersection shall be assessed a mitigation fee determined by the jurisdictions in the GMA and locally administered as part of the City's Capital Improvement Program. Pollcy 1.4: Promote traffic reduction strategies through TDM measures adopted by City ordinance. ADEQUATE TRAN8pORTATION FACILITIE8 Many of the regional transportation faalities are not adequately sized to accommodate existing and projected gro~nrttt. Largely in response to this situation. Orange County voters approved a-Raeas~+re-Measure M3 in 1990 and Measure M2 in 2007 to albcate additional funds to provide needed transportation facilities. GOAL T: Ensue adequab translrortatlon facilitierr are provided for existing and futuro inhabitant of ttw City Polley 2.1: Requiro that all new development pay its share of the street improvement costs associated with the devebpment, irx~ding regional traffic mitigation. Polley 2.2: New revenues generated from Measure M shall not be used to replace private developer funding whkh has been committed for any project. Polley 4.3: The Cfty shall continue to coiled Transportation System Improvement Program (TSIP) fees for improvements within its bourxiariea and shall work with adjacent jurisdictions to determine acceptable impact fees within the growth management areas. These fees may be assessed as necessary in addition to the City's TSIP 'Not required for Growth Management Element twt required to meet Measure M requirements. CnY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 12 JUN 171ANUAJi~~B, 200~~ address growth management issues in isolation from other jurisdictions. GOAL 3: Cooperate with neighboring jurisdictions and the County to achieve reduction in regional traffic congestion. Policy 3.1: The City shall participate in interjurisdictional planning forums within its established growth management area as-adapted-tay ' and will continue to participate in forums with neighboring or affected jurisdictions to address transportation or other planning issues. Policy 3.2: The City will continue to cooperate with the 6e~ty-e# grange-OCTA in annually updating its Congestion Management Plan pursuant to the requirement of AB 471 in order to continue to receive its share of State gasoline sales tax revenues. JOBS/HOUSING BALANCE One of the major causes of traffic congestion island use patterns that hinder the ability of people to live and work in the same area. Long commutes can overburden traffic infrastructure and diminish quality of life. Creating communities where people can both live and work in relativety Gose proximity shortens commutes and encourages the use of alternative forms of transportation to and from employment. GOAL 4: Strive to develop and maintain a balance between jobs and housing in Tustin. Policy 4.1: To the extent feasible, utilize information on the jobs/housing, balance in the City and region as a factor in land use deasion-making. CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 14 JUNE 17dANE1AR.~ 1~, 2008 deferred until compliance with the provisions of this program are achieved. The Performance Monitoring program will provide an annual evaluation of the maintenance of transportation service levels. Annual traffic reports prepared under this Program shall utilize data collected within three (3) months of preparation of the report. In the event that the Performance Monitoring Program identifies one or more service level defidendes, measures shall be implemented to correct identified defidencies. CAPITAL IMPROVEMENT PLANS The City shall establish a Capital Improvement Program for transportation systems improvements to effectively manage the system based on OCTA timetables. The purpose of the Capital Improvement Plans is to estimate future development over a seven year period and determine the necessary infrastructure and associated costs required for this new development. The Capital Improvement Plans will be closely linked with the Comprehensive Phasing Plans. The City will determine the capital projects needed to meet and maintain both the City's adopted Traffic Level of Service and Performance Standards. Capital finandng programming will be based on proposed development to be constructed during (at a minimum) the following seven year period. The CIP shall include approved projects and an analysis of the costs of proposed projects as well as a finandng plan for providing the improvements. INTERJURISDICTIONAL COOPERATION The City of Tustin will become involved in interjurisdictional coordination for various purposes, including: ° Cooperating with the County of Orange, the Orange County Transportation Authority (OCTA), and other local jurisdictions CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 18 JUNE 17dAN4JAF~=F--t6, 2008~-