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HomeMy WebLinkAboutCC RES 08-43RESOLUTION NO. 08-43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING 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 City Council does hereby resolve as follows: The City Council 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 May 27, 2008, by the Tustin Planning Commission to consider and provide an opportunity for the general public to comment on and respond to the proposed Housing Element Update and minor text amendment. E. That a public hearing was duly called, noticed, and held on June 17, 2008, by the City Council to consider and provide further opportunity for the general public to comment on and respond to the proposed Housing Element Update and minor text amendment. F. 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 City Council hereby approves 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 City Council of the City of Tustin, at a regular meeting on the 17th day of June, 2008. Resolution No. 08-43 Page 1 of 709 .f'b( JERRY MAYOR ATTEST: %T�� • CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) PAMELA STOKER, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 08-43 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of June, 2008, by the following vote: COUNCILMEMBER AYES: Davert, Bone, Kawashima, Palmer (4) COUNCILMEMBER NOES: None (0) COUNCILMEMBER ABSTAINED: None (0) COUNCILMEMBER ABSENT: Amante (1) PA STOKER, City Clerk Resolution No. 08-43 Page 2 of 709 Exhibit A to City Council Resolution No. 08-43 Housing Element and Housing Element Technical Memorandum Housing Element TUSTIN GENERAL PLAN May 2008 Final Draft 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, CONSTRAINTS AND OPPORTUNITIES 7 Summary Of Housing Needs 7 Preservation Of Units At Risk Of Conversion 22 Summary Of Housing Issues 27 Housing Constraints 30 Housing Opportunities 40 HOUSING ELEMENT GOALS AND POLICIES 55 Housing Supply/Housing Opportunities 55 Maintenance And Conservation 60 Environmental Sensitivity 61 Related Goals And Policies 62 HOUSING ELEMENT IMPLEMENTATION PROGRAM 63 Five Year Quantified Objectives 63 Identification Of Affordable Housing Resources 68 Housing Programs 88 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 CHARACTERISTICS 15 TABLE H- 7: TENURE OF HOUSEHOLDS WITH HEAD OF HOUSEHOLD AGED 65 YEARS OR OLDER 17 TABLE H- 8: EMERGENCY SHELTER/TRANSITIONAL HOUSING FACILITIES 21 TABLE H- 9: ASSISTED HOUSING INVENTORY 24 TABLE H-10: SUMMARY OF EXISTING HOUSING NEEDS 27 TABLE H-11: ANTICIPATED DEVELOPMENT AT MCAS-TUSTIN 35 TABLE H-12: LAND INVENTORY AND RESIDENTIAL DEVELOPMENT POTENTIAL 42 TABLE H-13: PROGRESS TOWARD RHNA CONSTRUCTION NEEDS 43 TABLE H-14: VACANT AND UNDERUTILIZED LAND WITH RESIDENTIAL DEVELOPMENT POTENTIAL 46 TABLE H-15: VACANT LAND SUITABLE FOR RESIDENTIAL DEVELOPMENTS 51 TABLE H-16: HOUSING RELATED GOALS AND POLICIES BY ELEMENT 62 TABLE H-17: NEW CONSTRUCTION QUANTIFIED OBJECTIVES SUMMARY 65 TABLE H-18: REHABILITATION, PRESERVATION, AND OTHER AFFORDABLE HOUSING QUANTIFIED OBJECTIVES 67 TABLE H-19: SUMMARY OF QUANTIFIED OBJECTIVES 68 TABLE H- 20: LOW AND MODERATE INCOME HOUSING SET ASIDE FUNDS PROJECTIONS 69 TABLE H- 21: AFFORDABLE HOUSING RESOURCES 71 TABLE H- 22: HOUSING ELEMENT PROGRAMS 2006-2014 89 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 part of its General Plan. State Planning Law mandates that jurisdictions within the Southern California Association of Governments (SLAG) region adopt 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 are established. There are three relevant time periods: 1998-2005: The previous planning period began in 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 SLAG 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 Use 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 3 2008 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 40 4. Analysis and documentation of Tustin's housing characteristics including the following: a level of housing cost compared to ability to pay; HTM 22 b overcrowding; HTM 17 c) housing stock condition. HTM 31 5. 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 HE 40 6. Analysis of existing and potential governmental constraints upon the maintenance, improvement, or 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 & HEM 8. Analysis of special housing need: disabled, elderly, large families, female- headed households, farmworkers HE 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 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 Required Housing Element Component Page C. I_plementation Program An implementation program should do the following: 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 levels 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 HE 58-98 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, floodplain, 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 the current and projected needs of Orange County. The Housing Element 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 person to ask question 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 adoption of the Second Five-year Implementation Plan for the Town Center and South Central Redevelopment Project areas for fiscal years 2005-2006 to 2009-2010 public hearing held on December 6, 2004, the Federal Community Development Block Grant Program public hearings held on February 25, 2008, April 15, 2008, and May 6, 2008, and adoption of the City's of Tustin's Comprehensive Housing Affordability Strategy for fiscal years 2008-2018 held on June 17, 2008. ° 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 larger 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 COUNTY Jurisdiction 2000' 2007 2 Growth 2000-07 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% Orange Countv 2,846,289 3,100,313 8.9% Source: ' 2000 U.S. Census 2 Department of Finance estimates, 2007 Population projections are 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 year 2025. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 8 2008 TABLE H- 2A Population Projection 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 (95.2%) were in the labor market. Of these, 79.3% were private wages and salary workers. Table HTM4 in the Technical Memorandum shows the breakdown of employees by occupation. In 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 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 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 (95.2%) were in the labor market. Of these, 79.3% were private wages and salary workers. Table HTM4 in the Technical Memorandum shows the breakdown of employees by occupation. In 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 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 Source: OCP 2006 Modified, Prepared by Center for Demographic Research. 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 2010 2015 2020 2025 Percent Change (2010-2025) Tustin 46,742 56,340 64,386 68,551 47% Source: OCP 2006 Modified, Prepared by Center for Demographic Research. 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 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 Edinger 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 Equipment 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 Equipment City of Tustin - (714) 573-3000 300 Government 300 Centennial Way - Tustin 92780 Costco Wholesale - (714) 838-7895 241 Wholesale Trade 2655 EI Camino Real - Tustin 92780 Woodbridge Glass Inc - (714) 838-4444 205 Glass & Glazing Work 14321 M ford Rd. - Tustin 92780 Costco 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) 669-5880 200 Hospital 14662 Newport Ave. - Tustin, 92780 Vitatech International, Inc. - (714) 832-9700 178 Pharmaceutical 2832 Dow Ave. - Tustin 92780 Preparations 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 Department, 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 a jobs/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 2005 I Tustin I Oranee Countv I SCAG Reeion Housing Units 25,927 1,013,036 6,005,879 Tobs/Housing Ratio 1.56 1.48 1.19 Sources: California Department of Finance; Center for Demographic Research; SLAG; Comprehensive Affordable Housing 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: 1) 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 The 2007 Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SCAG) 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 of the Housing Element Technical Memorandum illustrates the numbers of all Tustin households living in overcrowded conditions. 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 Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SCAG) figures showed 2,390 (9 percent) households living in overcrowded conditions of which 51 percent were Low- income households. Low-income households are 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 units'. Affordability State and Federal standards for rental housing overpayment are based on an income -to -housing 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. 1 Housing Element Technical Memorandum Table HTM-21. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 13 2008 As identified in the 2007 RHNA estimates, the Technical Memorandum on Table 11-A, points out that 1,585 renter households and 525 owner households are at or below 30% of the Area Median Income (AMI) and considered "Extremely Low Income." The 2007 RHNA estimates also 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 AMI). Among the overpaying lower-income households, about 30% were extremely low income (<30% of AMI), 31% were very low income (<50% of AMI), and 39% were low-income households (<80% of AMI). Table HTM-12 of the Housing Element Technical Memorandum reflects SCAG's 2007 RHNA estimates for households overpaying for shelter. While the extremely low income households are currently housed, they are in a precarious position, particularly those overpaying for housing in light of the current housing market, and could face the threat of homelessness. 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 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 14 2008 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 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). 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 a three-bedroom townhouse unit is $1,861. The weighted average rental rate for the inventory increased 5.4 percent over the past yearn. Rents for one-bedroom/one-bath properties increased the most at 6.9 percent, followed by three- bedroom townhouse units at 6.8 percent, junior one -bedrooms at 6.6 percent and two-bedroom/one-bath units at 5.2 percent. TABLE H- 6 Apartment Inventory Characteristics June 2007 Unit Size Units Percent Average SF Average Rent Average Rent/SF Studio 200 3.4% 521 $1,138 $2.18 Jr 1 BR 32 0.5% 470 $1,050 $2.23 1 BR/1 BA 2,312 39.2% 733 $1,292 $1.76 2 BR/1 BA 706 12.0% 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 $1,810 $1.77 2 BR TH 194 3.3% 1,074 $1,674 $1.56 3 BR/1.5 BA 36 0.6% 1,371 $1,641 $1.20 3 BR/2 BA 216 3.7% 1,173 $2,431 _ $2.07 3 BR TH 1 56 0.9% 1,441 1 $1,861 1 $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 2 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 15 2008 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 "BY' 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 older 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 65 years or older. Households with a senior householder represented 11.9 percent of all households in the City. 3 Summary based on data contained in Comprehensive Housing Affordability Strategy, 2008. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 16 2008 TABLE H- 7 Tenure of Households with Head of Household Aged 65 Years or Older 2000 Head of Household 65 Years or Older Tenure # Households % Households Renters 747 6.2%' Owners 2,086• 17.6%2 Total Households 2,833 11.9%3 1 As a percentage of 12,002 renter households. 2 As a percentage of 11,829 owner households. As a percentage of 23,831 total households. Source: 2000 U.S. Census; Comprehensive Affordable Housing Strategy 2008 - 2018. Table H -7A shows the estimated household income distribution for householders aged 65 years or older in 2000. Approximately 27 percent of elderly households earned less than $20,000 annually, or about 36 percent of AMI for a household of two persons in 20W.4 TABLE H -7A Estimated Household Income Distribution Households with Head of Household Aged 65 Years or Older 2000 Income Range Number' 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 15.2% 63.2% $50,000-$74,999 520 18.0% 81.2% $75,000-$99,999 211 7.3% 88.5% $100,000 or More 332 11.5% 100.0% 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 data on the number of households used in this report. Source: 2000 U.S. Census; Comprehensive Affordable Housing Strategy, 2008-2018. 4 HUD median household income for a family of four in Orange County in 2000 was $69,600. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 17 2008 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 65 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 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 18 2008 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: 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, 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. The 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: a fast-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 congregate in the City, there are several homeless services facilities in CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 19 2008 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 Bernardino 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 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. 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 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, a non-profit homeless advocacy organization, maintains a list of these and other homeless CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 20 2008 services in Orange County. Table HTM-16 is a list of organizations in Tustin that provide homeless services. TABLE H- 8 EMERGENCY SHELTER/TRANSITIONAL HOUSING FACILITIES 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 clothing. St. Cecilia's Distributes food supply to needy populations. Operates emergency food program where a Redhill Lutheran person can receive food supply 3 times a year. 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 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. Six (6) new transitional units at Tustin Field I to Salvation Army 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 in acquisition and contributed grant funds to acquire the units Fourteen (14) new transitional units at Columbus Families Forward' Grove to be operated by Families Forward, formerly Irvine Temporary Housing 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, 2008 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 21 2008 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. PRESERVATION 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 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, inclusionary, 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 22 2008 Tustin Gardens is the only project based Section 8 subsidized project at -risk of losing 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. 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 23 2008 TABLE H- 9 ASSISTED HOUSING INVENTORY ur;n>;uAr Tustin Gardens Goldrich & Kest HUD 221(D)(4) Type/Length --- 101 Elderly 101 1-br 1979 Good E. 6th 5150 Overland Section 8 of Earliest 100 Tenant 101-br 1988 Excellent Tustin, CA 92680 Owner: Community Affordability Potential Type 44 2-br Date Project Name, Name, Development Controls Conver- (i.e., Built Condition Address Address, Type(s) of Gov't (including Sion # of Elderly, Bedroom (if (if incl. zip) Tel. # Assistance Sec. 8) Dates Units I Family) Mix known known ur;n>;uAr Tustin Gardens Goldrich & Kest HUD 221(D)(4) --- --- 101 Elderly 101 1-br 1979 Good E. 6th 5150 Overland Section 8 Income 7/13/00 100 Family 101-br 1988 Excellent Tustin, CA 92680 Ave. Community restricted. No 44 2-br 213-204-2050 Culver City, CA Development rent 730-3700 90230 Authority 1998-A restrictions CTATF Rancho Alisal 13800 Parkcenter Tustin, CA 92680 The Irvine Co. 550 Irvine Ctr. Dr. P.O. Box 1 Newport Beach, CA 92660-9959 California Statewide Community Development Authority 1998-A Bond Financing Income restricted. No rent restrictions May 2012 72 Family 61-br 57 2-br 9 3-br 1987 Excellent Rancho Maderas The Irvine Co. California Statewide Income May 2012 54 Family 101-br 1988 Excellent 13408 Heritage Way 550 Irvine Ctr. Community restricted. No 44 2-br Tustin, CA 92680 Dr. Development rent 730-3700 P.O. Box 1 Authority 1998-A restrictions Newport Beach, Bond Financing CA 92660-9959 Rancho Tierra The Irvine Co. California Statewide Income May 2012 51 Family 7 3-br 1988 Excellent 13202 Myford Rd. 550 Irvine Ctr. Community restricted. No 44 2-br Tustin, CA 92680 Dr. Development rent 730-5868 P.O. Box 1 Authority 1998-A restrictions Newport Beach, Bond Financing CA 92660-9959 CITY OF TUSTIN GENERAL PLAN 24 HOUSING ELEMENT 2008 TABLE H- 9 ASSiSTFD HOUSING INVENTORY rrv-Ar Tustin Grove Tract 14934 Redevelopment Type/Length N/A 21 Family 21-3br N/A Very Good Agency of Earliest Tenant Ambrose Lane Owner: Redevelopment Affordability Potential 8 Type 8-3br Date New Project Name, Name, Agency Controls Conver- (i.e., Built Condition Address Address, Type(s) of Gov't (including cion # of Elderly, Bedroom' (if (if incl. zip) Tel. # Assistance Sec. S) Dates Units I Family) Mix known known rrv-Ar Tustin Grove Tract 14934 Redevelopment DDA1 N/A 21 Family 21-3br N/A Very Good Agency Ambrose Lane Tract 15707 Redevelopment DDAI N/A 8 Family 8-3br N/A New Agency Orange Gardens Westchester Redevelopment Income 5/2028 150 Family 17-1br N/A Good 1602 Nisson Rd. Park, L.P. Agency restricted. No 93-2br Tustin, CA 92780 rent 40-3br restrictions Hampton Square Fairfield Redevelopment Income 10/2011 210 Family 124-1br 1969 Good 16331 McFadden Residential Agency restricted. No 86-2br Ave. Corp. rent Tustin, CA 92780 restrictions Flanders Pointe Tustin Redevelopment Income 10/2029 49 Family 41-2br 1966 Good 15520 Tustin Village Affordable Agency restricted. No 7-2-br Way Housing Corp. rent Tustin, CA 92780 restrictions Tustin Field I Various owners Redevelopment Ownership 45 years of 78 Family 27-2br 2006 Excellent Tustin, CA 92780 Agency income initial 51-3br restricted. purchase date Tustin Field II Various owners Redevelopment Ownership 45 years of 40 Family 40-3br 2007 Excellent Tustin, CA 92780 Agency income initial restricted. purchase date Arbor Walk Various owners Redevelopment Ownership 45 years of 10 Family 10-3br 2006 Excellent Tustin, CA 92780 Agency income initial restricted. purchase date CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 25 2008 TABLE H- 9 ASSISTED HOUSING INVENTORY N/ A - Not available ' DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2008 -2018 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 26 2008 Type/Length of Earliest Tenant Owner: Affordability Potential Type Date Project Name, Name, Controls Conver- (i.e., Built Condition Address Address, Type(s) of Gov't (including cion # of Elderly, Bedroom (if (if incl. zip) Tel. # Assistance Sec. 8) Dates Units Family) Mix known known Cambridge Lane Various owners Redevelopment Ownership 45 years of 36 Family 11-1br 2006- Excellent Tustin, CA 92780 Agency income initial 13-2br 2007 restricted. purchase 12-3br date Camden Place Various owners Redevelopment Ownership 45 years of 37 Family 22-2br 2006- Excellent Tustin, CA 92780 Agency income initial 15-3br 2007 restricted. purchase date Clarendon Various owners Redevelopment Ownership 45 years of 42 Family 42-3br 2006- Excellent Tustin, CA 92780 Agency income initial 2007 restricted. purchase date 955 TOTAL N/ A - Not available ' DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2008 -2018 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 26 2008 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-10 SUMMARY OF EXISTING HOUSING NEEDS CITY OF TUSTIN 2006-2014 Growth Needs 1 Special Needs Grou Very Low Units 512 Elderly Persons2 4,804 Low Units 410 Disabled Persons 2,162 Moderate Units 468 Large Households3 3,095 Above -Moderate (Units) 991 Female -Headed Households with Children under 18 years 1,700 TOTAL 2,381 Overcrowding Overpaying Households' Renter Owner 3,465 820 Renter - Total Renter -<80% MFI Owner - Total Oumer - <80% MFI 3,080 2,660 3,110 1,275 TOTAL 4,285 Total 8,569 1 Regional Housing Needs Assessment, SLAG, 2007. z Persons age 65 and over. I Households containing 5 or more people. Sources: 2000 Census; Comprehensive Affordable Housing Strategy 2008-2018. Overpayment. 44 percent of the City's lower income households (households which earn less than 80 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, SLAG identifies a housing growth need of 2,381 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). Extremely -Low Income households. 1,585 renter households and 525 owner households are at or below 30% of the Area Median Income (AMI) and considered "Extremely Low Income." While the extremely low income households are currently housed, they are in a precarious position, particularly those overpaying for housing in light of the current housing market, and could face the threat of homelessness. ° 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 28 2008 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 and R-4 zoning districts would allow for boarding houses with a Conditional Use Permit (CUP). ° First 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 at risk of converting to market rate housing. During the 2006-2014 planning period, the City of Tustin faces the potential conversion of 100 low-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 turn, deteriorated housing conditions. Maintenance and improvement of existing housing conditions over the long term will require ongoing maintenance of existing units, rehabilitation CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 29 2008 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 Neighborhoods. A large portion of the City's lower income housing is concentrated in the southwest neighborhoods. 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 cost 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. Construction 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 30 2008 & 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 minimum $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 are most attributed to a reduction in land costs; when that cost is spread on a per unit basis. Land' Although the Consolidated Plan 2005-10 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. With 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 5 Two-story wood frame average quality for Orange County area CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 31 2008 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 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. Profit, 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 Strategy6, 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 6 City of Tustin Comprehensive Affordable Housing Strategy, 2008 - 2018. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 32 2008 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. 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 (7) units per acre with effective density of 5.61 dwelling units per acre within the Low Density Residential land 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 33 2008 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 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 style, 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 net acre respectively. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 34 2008 The WAS 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 WAS 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 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) 1872 1,630 Planning Area 4 and 21 Medium Density (8-15 DU/acre) 51.7 1,396 116 Planning Area 5 Medium to High Density (16-25 DU/acre) 29.4 568 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 beds transitional 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 for discussion purposes. Figures are based on estimated anticipated development indicated in the environmental document for MCAS Tustin Specific Plan. Actual 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 (City 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 WAS Tustin area, a large CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 35 2008 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 WAS Tustin Specific Plan and are allowed throughout the remainder of the City either as an outright 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 two -car garage 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 concern that affects many cities and counties. Throughout the country, homelessness has become an increasing problem Factors contributing to the rise in homeless CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 36 2008 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 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. The Orange County Partnership, a non-profit organization whose purpose is to strengthen public and private agencies serving the homeless and those at risk of homelessness, reported that in 2007 there were 34 homeless persons identified Tustin as the city of last known permanent address. The McKinney-Vento Homeless Education Assistance Act reported 55 homeless children and youth enrolled in the Tustin Unified School District during 2006-07. In addition to identifying homeless needs in Tustin pursuant 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) by identifying the needs for homeless shelters in its Housing Element and designating adequate zoning districts to accommodate the needs. 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 3 of the MCAS Tustin Specific Plan. In 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 37 2008 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 WAS Tustin Specific Plan Supportive housing Permitted Planning Areas 1 and 3 of MCAS Tustin Specific Plan Community Care Facility for six (6) or All residentially zoned fewer Permitted properties Family care home, foster home, or Permitted All residentially zoned group home for six (6) or fewer' vroverties I Includes congregate care facility, single room occupancy hotel, and children s intermediate care shelter Source: City of Tustin 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 units at Columbus Grove operated by Orange Coast Interfaith Shelter. 7 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 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 City's 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. 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 minimize site improvement costs. The Housing Element Technical Memorandum 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 cost 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 minimum construction standards as applied to residential buildings. The City's building codes are the minimum standards necessary to protect the public health, safety and welfare and ensure safe housing. Only local modifications to the codes are made which respond to local climatic or geographic conditions and clarify administrative procedures. Although not mandated to do so, the City has adopted the State Historical Code that relaxes building code requirements citywide for CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 39 2008 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 minimum 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 Design Review Committee members and plan checking departments simultaneously review the plans. This process provides for a "one- stop" processing system. For projects of significant benefit to the low- ineome 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 40 2008 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 41 2008 TABLE H-12 LAND INVENTORY AND RESIDENTIAL DEVELOPMENT POTENTIAL (1) Number of existing housing units in the City of Tustin based on Tustin General Plan Land Use Element, 2001 -Table LU -3 "Future Land Use Density/ Intensity and Population Capacity of The Land Use Plan." DUs = dwelling units (2) Includes 192 units of emergency housing and 90 units of transitional family housing. Source: Tustin General Plan Land Use Element, 2001. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 42 2008 Potential Gross Potential DUq/ (1) Gross Potential Acres DUs/ Vacant & Effective Land Use Existing Acres DUs/ Under- Under- Under- General Plan Category DUs Vacant Vacant Utilized Utilized Utilized Build -out Low Density Residential 2,844 0 0 0 0 0 2844 (1-7 du/ac) Medium Density Residential 371 2.67 41 4.05 61 102 473 8-15 du/ac High Density Residential (15-25 10,049 7.27 189 70.32 1,758 1,947 11,996 du/ac Mobile Home Park 702 0 0 0 0 0 702 1-10 du ac MCAS Tustin Specific Plan 0 389.2 4,049(2) 0 0 4,049 4,049 PC Low Density Residential 2,874 0 0 0 0 2,874 PC Medium Density Residential 3,690 0 0 0 0 0 3,690 PC High Density Residential 1 4,356 0 0 0 0 0 4,356 TOTAL 1 24,8861 399.14 4,2791 74.371 1,8191 6,0981 30,984 (1) Number of existing housing units in the City of Tustin based on Tustin General Plan Land Use Element, 2001 -Table LU -3 "Future Land Use Density/ Intensity and Population Capacity of The Land Use Plan." DUs = dwelling units (2) Includes 192 units of emergency housing and 90 units of transitional family housing. Source: Tustin General Plan Land Use Element, 2001. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 42 2008 Table H-13 illustrates Tustin's progress in achieving RHNA construction needs for the 2006-2014 planning period. As of 2008, the City has satisfied approximately 45 percent of its total RHNA Construction Need. TABLE H-13 PROGRESS TOWARD RHNA CONSTRUCTION NEEDS 200E-2014 CITY OF TUSTIN Income Category RHNA Construction Need 2006-2014 Units Added 2006-2007 Net RHNA Construction Need 2008-2014 Very -Low 512 322 63% 190 Low 410 48 12% 362 Moderate 468 57 12% 411 Above Moderate 991 649 65 a. 342 Total 1 2,381 1,076 45% 1,305 Source: 2007 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 43 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 on a 1.76 acre site. The project was granted a twenty-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 $600,000. The loans are secured by loan agreements, promissory notes and deeds of trust, along with Regulatory Agreement and Declaration of Restrictive Covenants to be recorded against the property for a period of not less than 55 years. The project is 100 percent affordable to very low and low income seniors. The remaining capacity in Old Town Tustin will be achieved through recycling of underutilized and vacant infill sites (see Figure 1). According to the City's Land Use Element, the sites in Old Town Tustin area are able to accommodate an overall population range for residential use of 2-54 persons per acre$. 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 Old Town area. To further create housing opportunities, the City provides the issuance of tax-exempt bonds for the development of affordable 8 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 44 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 45 2008 TABLE H-14 VACANT AND UNDERUTILIZED LAND WITH RESIDENTIAL DEVELOPMENT POTENTIAL Vacant Land Underutilized Land Above- Above - V -Low Low Moderate Moderate Total Very- Low Moderate Moderate Total Land Use Cate o T AC DU AC DU AC DU AC DU AC DU AC DU AC I DU AC I DU AC I DU AC I DU rroWVAArnnweT 7nNTNC_ 1lFSTC_NA77nNR Low Density Res. 1-7 du/ac Medium Density Res. (8-15 du/ac) 15 12 14 2.67 41 22 18 21 4.05 61 High Density Res. 15-25 du/ac 70 55 64 7.27 189 650 510 598 70.32 1,758 Mobile Home Park 1-10 du/ac Subtotal 85 1 67 1 78 1 1 9.94 230 672 1 528 619 1 1 74.37 1,819 Correlation of land use densities and income levels based upon the City's General Plan maximum density z Income level estimated based upon specific plan densities. Based upon State Redevelopment Law and the proposed Specific Plan requirement, 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 income households. Income levels for MCAS Tustin are based upon specific plan densities. Source: City of Tustin; MCAS Tustin Specific Plan, as amended, Vacant and Underutilized Land Suitable for Residential Development, and City of Tustin General Plan, January 16, 2001. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 46 2008 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 47 2008 TABLE H-15 VACANT LAND SUITABLE FOR RESIDENTIAL DAY ELOPMENTS Address Assessor Existing Use Zoning General Plan Lodine Notes Availability Environmental Utility Availability/ Parcel Number Designation Land Use Designation (acres Constraints Capacity =Y OF TUSTIN HOUSING ELEMENT 3ENERAL PLAN 49 2008 System appear 1 170 El Camino Real 401-571-05 vacant C2 P Old Town Commercial 0.16 (1) Yes no known constraints available 2 140 S. A Street 401-361-03 vacant R3 High Density Residential 0.17 1) Yes no known constraints System appear available 3 225 El Camino Real 401-584-04 to Farmer's Market P Old Town ComnullCial 1.02 (1) Yes no known constraints System appear 401-584-09 site available 4 El Camino Real 401-662314 to adjacent to C2 P Old Town Cornmemial 261 (1) Yes no known constraints System appear 401-023-16 Armstrong available adjacent to System appear 5 1951 EI Canon Real 500-071-12 City of Tustin R4 H# Density Residential 0.38 (2) Yes street/freeway. Noise available may be a constraint 6 Browning/ El Camino Real 500-201-02 Tustin Ranch PC -R PC ill oi&-MUl 267 Yes no known constraints System appear Reserve Area (Medle Low) available 7 15700 Tustin Village Way Not available Former SR -55 off- ramp' �fied Community Cgp—rcial Not y b � Yes adjacent to street/freeway. Noise System appear available Evaila may be a constraint 8 15600 Williams 402-292-19 _ Alders A m .— R3 High Density Residential 0.26 Yes no known constraints _ Sys available pear w adjacent to r adjacent to System appear 9 1776 Nisson 432-401-12 Blueboy 831500 High Density Ree(dential N/A Yes street/ freeway. Noise available Swimschool may be a constraint Columbus Square 10 Former MCAS MCAS Tustin MCAS?wbnBackbone MCAS'h mbn Specific Plan 86.26 Yes FEIS/EIR Prepared (3) PA 20/21 Tustin Specific Plan �S Specific plpt Infrastructure (4) Il Columbus Grove PA 4/5 Former MCAS MCASTustin Tustin MCAS Tustin Specific Plan 105.5 Yes FEIS/EIR Prepared (3) Backbone Tustin Specific PlanPlan Infrastructure a+1 12 TLCP Neighborhood D g PA 8/13/14 former MCAS f(16Tustin WAS Tustin Specific Plan 35.7 (1x5) Yes FEIS/EIR Prepared of Backbone Tustin Spm Plan Infrastructure Nl TLCP Neighborhood G g PA 15 Former MCAS MCAS'hsun MCAS Tustin Plan 1522 (1x5) Yes FEIS/EIR Prepared �» Backbone Tustin Specific Plane infrastructure (4) Notes: PA: Planning Area (1) Mixed Use (2) Part of Street Improvement (3) FEISi/EIR has been prepared and adopted (4) Backbone infrastructure improvements are required for project implementation (5) Subject to Development Agreement =Y OF TUSTIN HOUSING ELEMENT 3ENERAL PLAN 49 2008 TABLE H-15 (CONTINUED) UNDERUTILIZED LAND SUITABLE FOR RESIDENT, DEVELOPMENTS 9 462-556 EI Camino Real 401-622-14 Address Assessor Parcel Exing Use Zoning General Plan Lot ohm Nates Availability Environmental Utility Yes School relocation System appear Number Designation Land Use Designation a (aes�„ 500441-10 Tustin Hlgp School Constraints Availability/Capacity 1 1451 Irvine Boulevard 103-341-22 Church Pr Professional Office 2012- Yes no known constraints System appear Public and Institutional 1.22 500-141-24 Tustin High School P&I Public and Institutional 18.39 500-141-26 available P&I 433135 W. First Street 401-522-27 Trailer Park FSSP PC Coamtercmd/Business 0.83 Yes no known constraints Syste2 appear available available 3 1092 Bryan 500-164-01 to 500 Winston PD High Density Resideaytial ! 49 °" Yes no known constraints System appear 164-23 Apartments available 4 220 El Camino Real 401.572-01 Ability Plus School C21' Old Town Commercial 0.34 (1) Yes no known constraints System appear available 5 245 " Street C" 401-572-04 Sheet Metal Shop C2 P Commercial 14W (1) Ye; historic ratted System appear structures available 155 Third Street 401-572-05 Russian Ballet C21? 041'9wn Coe gw0al 0.1 - 300 El Camino Real 401-573-01 Former�Bank C2 P Old To"Comrnprial 0.45 115-125 W. Main Street 401-573-05 &06 Former Auto Parts CTP Old Town Cammercial 0.24 re 6 185-255 Prospect Avenue 401-581-09 Trailer Park MHP Mobile Home,Park 29 Yes no known constraints System appear available 7 230 Prospect Avenue 401-584-02 Single Family C2 P Old Town Com�lal 0.15 Yes historic rated structure System appear available 240 Prospect Avenue 401-584-03 Single ca? OId:voi" gW,,rcial 0.17 8 205 El Camino Real 401-584-11 �� of Dr. k C2 P `-, Old Town Commercial 0.17 (1) Yes no known constraints System appear available 9 462-556 EI Camino Real 401-622-14 town Plaza C2 P f7(d Town Commercial 1.7 (1) System appear - Yes no known constraints available 10 1171 El Camino Real 500-141-02 Tustip High School Public and Institutional 4.77 Yes School relocation System appear available 500441-10 Tustin Hlgp School P40 Public and Institutional 287 500-141-18 Tustin High S4xwI Public and Institutional 8.01 500-141-21 Tustin High Schos(., P&I Public and Institutional 1.22 500-141-24 Tustin High School P&I Public and Institutional 18.39 500-141-26 Tustin High School P&I Public and Institutional 4.13 11 114251-14351 Browning 432-342-30 ApartmHigh ents R4 h Density yes MND prepared Residential 4.1 System appear available :ITY OF TUSTIN HOUSING ELEMENT 'ENEPAL PLAN 50 2008 12 14421-14471 Red Hill Ave 432-111.03&04 tm Apartments R3 High Density Residential 4 yes MND adopted System appear available 13 131341 Red Hill Ave 500-141-10 Church P&I Public and Institutional 2A7 " b', y es no known constraints System appear available 14 1361 El Camino Real 500-141-22 Apartments R3 Multiple Family 4.* Yes MND adopted System appear Residential available 15 1052 Edinger Ave. 430 251-01 to 430-251-11 AA&E properties PCESP PC Commercial/ gusir W 5.4 (20% of (1) Yes EIR adopted Certain infrastructure required per EIR ac) Notes: PA: Planning Area (1) Mixed Use b, (2) Part of Street Improvement (3) FEISJEIR has been prepared and adopted (4) Backbone infrastructure improvements are required for project implementation (5) Subject to Development Agreement Source: City of Tustin, Redevelopment Agency and Community Development DepartmenL f,. ,ITY OF TUSTIN HOUSING ELEMENT :ENERAL PLAN 51 2008 r[a,w ."ik. may:' f,. ,ITY OF TUSTIN HOUSING ELEMENT :ENERAL PLAN 51 2008 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; 5) 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 discrimination 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- income 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 (SCAG), in accordance with adopted land use policies. Policy 1.2: 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 -55 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 such 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 Orange 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 Needs 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 CITY 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.M 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 minimize housing costs. Policy 1.22: 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 current housing market. Policy 3.3: Encourage rental unit conversion and alternative 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 income units at risk of converting to market rate housing, including tax credit bond financing and redevelopment tax increment funds. CITY OF TUSTIN 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 maintenance 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 deteriorated units where they may exist Citywide, and elimination of dilapidated 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 2008 Policy 5.4: Continue to enforce health, safety, and zoning codes to eliminate conditions which are detrimental to the health, safety and welfare 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, particularly around identified Opportunity Sites as part of the Town Center -A New Beginning 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 minimize negative environmental impacts. GOAL 6: Ensure that new housing is sensitive to the existing natural and built environment. Policy 6.1: Attempt to locate new services and employment cente: bicycling to places of employment. housing facilities in proximity to s thereby enabling walking or Policy 6.2 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 60 2008 RELATED GOALS AND POLICIES BY ELEMENT Housing Land Conservation/ Public Growth Issue Area Use Housing Circulation Open Space Safety Noise Management 1.8,10.2, Housing 13.3,13.4, Opportunities 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, 2.2 Affordable Housing Support Service/ Fair Housing 5.3 4.1 3.6, 9.6, Environmental 9.7, 9.8, 1.14,1.17, 3.3, 4.8, 1.11, Sensitivity 13.1 3.5 2.12, 3.1, 4.1 4.12 11.12 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 are subject to the interests of private CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 61 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 NEW CONSTRUCTION MCAS Tustin Housing Units' 3,645 1 1994 1 2204 1 3424_L_2,884 MCAS Tustin Emergency Housing 2 192 192 MCAS Tustin Transitional Family 48 48 MCAS Tustin Social Services 2 90 90 Granny Flats 10 10 New Owner Housing 3 155 155 New Senior Housing 201 126 75 Recycling of SFD to MFD 25 25 Total Quantified Objectives 4,366 529 410 468 1 2,959 RHNA 2381 512 410 468 991 Difference 1,985 17 0 0 1,%8 MCAS Tustin Specific Plan authorized a total 4,049 potential units at Tustin Legacy. Based upon State Redevelopment Law and the proposed Specific Plan requirement, 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 income households. See footnote 4 for additional inclusionary units information. 2 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. i Projects at the end of planning period. 4 Includes MCAS Tustin additional inclusionary units (2% units) 5 Pursuant to Government Code Section 65583(a)(1), City's share of extremely -low income units is 211 (8.85 percent of the total RHNA new construction objective). Total number of units for extremely -low income and low income units equals to City's share of vey-low income units of 512 units Source: 2007 RHNA; City of Tustin; MCAS Tustin Specific Plan. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 63 2008 Very Total # Low 5 Low Moderate Upper Program of Units <50"/0 Z.10 807120"/0 120%+ NEW CONSTRUCTION MCAS Tustin Housing Units' 3,645 1 1994 1 2204 1 3424_L_2,884 MCAS Tustin Emergency Housing 2 192 192 MCAS Tustin Transitional Family 48 48 MCAS Tustin Social Services 2 90 90 Granny Flats 10 10 New Owner Housing 3 155 155 New Senior Housing 201 126 75 Recycling of SFD to MFD 25 25 Total Quantified Objectives 4,366 529 410 468 1 2,959 RHNA 2381 512 410 468 991 Difference 1,985 17 0 0 1,%8 MCAS Tustin Specific Plan authorized a total 4,049 potential units at Tustin Legacy. Based upon State Redevelopment Law and the proposed Specific Plan requirement, 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 income households. See footnote 4 for additional inclusionary units information. 2 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. i Projects at the end of planning period. 4 Includes MCAS Tustin additional inclusionary units (2% units) 5 Pursuant to Government Code Section 65583(a)(1), City's share of extremely -low income units is 211 (8.85 percent of the total RHNA new construction objective). Total number of units for extremely -low income and low income units equals to City's share of vey-low income units of 512 units Source: 2007 RHNA; City of Tustin; MCAS Tustin Specific Plan. CITY OF TUSTIN HOUSING ELEMENT 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 2008/09 to 2017/18. 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 # I Very Low Low Moderate Upper ProgramCategory of Units (<50%) (<80%1 (80-120%1 1120%+1 REHABILITATION 100 100 Single and Multi -Family Rehab Rancho Alisal 72 Single Family 54 32 16 6 Multi- Family 108 21 21 66 Rental Rehabilitation Loans Grants 120 24 48 48 Multi -Family Rental 31 31 Total Rehabilitation 1 313 1 771 116 1 120 1 Tustin Gardens 100 100 Rancho Alisal 72 18 54 Rancho Maderas 54 14 40 Rancho Tierra 51 38 13 Affordable Senior Housing - Mitchell Avenue 20 12 8 Heritage Place 54 54 Total Preservation 351 236 1151 1 OTHER AFFORDABLE HOUSING 1st Time Homebuyer and/or Foreclosure Negotiated Purchase 30 5 10 15 Section 8 Rental Voucher Assistance 1,500 1,500 Shared Housing Referrals 75 50 25 Homeless Housing Partnership Program 242 242 Emergency Shelter 282 282 Total Other Programs 1 2,1291 2,079 1 35 151 Source: Effectiveness of Housing Programs 1998-2008, City of Tustin; Five Year Lmplementation Plan for the Town Center and South Central Redevelopment Project Areas for Fiscal Years 2005-06 to 2009-10; Comprehensive Housing Affordability Strategy for Fiscal Years 2008-18. Summary of Quantified Objectives Table H-19 summarizes the City's Quantified Objectives for the 2006- 2014 period. Based on the requirements of AB 2634, statute of 2006 (Government Code Section 65583(a)(1)), each jurisdiction must address the projected need of Extremely Low -Income households, defined as households earning less than 30 percent of the Area Median Income (AMI). The projected Extremely -Low Income need is assumed to be 8.85 percent, or 211 units based upon the percentage of extremely -low income households contained in the regional housing needs assessment determined by SLAG using census data as the baseline. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 65 2008 1 Pursuant to Government Code Section 65583(a)(1), City's share of extremely -low income units is 211 (8.85 percent of the total new constructionobjective). Total number of units for extremely -low income and low income units equals to City's shareofvey-low income units of 512 units Source: 2007 RHNA, SCAG IDENTIFICATION OF AFFORDABLE HOUSING RESOURCES The City has prepared a Consolidated Plan. and Comprehensive Housing 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 platy are descriptions of awide variety of major housing assistance prograi ns 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 66 2008 Rev. 06/08 TABLE H-19 SUMMARY OF QUANTIFIED OBJECTIVES CITY OF TUSTIN 2006-2014 Income Group New RHNA Construction Rehabilitation/ Preservation Other Pro ams Very Low 301 318 313 2079 Extremely -Low 2111 211 Low 410 410 231 35 Moderate 468 468 1 120 1 15 Above Moderate 991 2,959 0 -- Total 1 2,381 4,366 1 664 1 2129 1 Pursuant to Government Code Section 65583(a)(1), City's share of extremely -low income units is 211 (8.85 percent of the total new constructionobjective). Total number of units for extremely -low income and low income units equals to City's shareofvey-low income units of 512 units Source: 2007 RHNA, SCAG IDENTIFICATION OF AFFORDABLE HOUSING RESOURCES The City has prepared a Consolidated Plan. and Comprehensive Housing 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 platy are descriptions of awide variety of major housing assistance prograi ns 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 66 2008 Rev. 06/08 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 67 2008 TABLE H- 20 LOW AND MODERATE INCOME HOUSING SET ASIDE FUNDS PROJECTIONS FY 2007/08 TO 2017/18 Estimated Balance as of 06/30/U7 2007/08 2008/09 2009/10 2010/11 2011%12 2012/13 2013/14 2014/15 2015/16 2016f17 2017/18 TOTALS 20%. Set aside Tax Increment Revenues (1) 20% Set aside from Town Center Project Area $6,538,996 $827,197 $835,968 $865,227 $895,510 $926,853 $959,293 $992,868 $1,027,618 $1,063,565 $1,100,810 $1,139,339 $10,,268 20% set aside from South Central Project Area $8,068,518 $813436 $828569 $857,569 $887,584 $918,649 $918,649 $984,080 $1,018,523 $1,054,171 $1,091,067 $1,129,254 $10,553433,704 20% set aside from MCAS Tustin Project Area $3,252,979 $,2072,917 $3,306,096 $4,897,544 $5,525,186 $6,699,892 $7,316,224 $7,654,288 $7,845,592 $8,076,456 $8,398,388 $8,649,898 $70,442,481 Subtotal, 20% Set aside Fund Revenue $17,860,493 $3,713,550 $4,970,633 $6,620,340 $7,308,280 $8,545,394 $9,226,319 $9,631,236 $9,891,733 $10,194,212 $10,590,265 $10,918,491 $91,610,453 interest/Earnings (2007/08 Only) (5)(6) $124,920 TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD $124,920 Town Center Project Area South Central Project Area $477,373 TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD $477,373 WAS Project Area $105,542 TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD $105,542 Subtotal, Interest Earnings $707,835 $0 $0 $0 $0 $0 $0 $0 $0 So $0 $707,835 Operating Expenses, 201%, Set -Aside Fund (3) Operating Expenses, Town Center Project Area $284,265 $294214 $304,512 $315,170 $326,201 $337,618 $349,434 $361,664 $374,323 $387,424 $400,984 $3,735,809 Operating Expenses, South Central Project Area $181,572 $187,927 $194,504 $201,312 $208,358 $215,651 $223,198 $231,010 $239,096 $247,464 $256,125 $2,386,217 Operating Expenses, MCAS Project Area $181,448 $187,799 $274,372 $301,809 $331,990 $343,609 $355,636 $368,083 $380,966 $394,300 $408,100 $3,258,112 Subtotal, Operating Expenses $647,285 $669,940 $773,388 $818,291 $866,549 $896,878 $928,268 $960,757 $994,385 $1,029,188 $1,065,209 $9,650,138 City Loan Payments (4) City Loan Payment, Town Center Project Area $720,000 $5,000,000 $2,500,000 $888,201 $104,316 $446,259 $247,562 $0 $o $0 SO $9,906,338 City Loan Payment, South Central Project Area $1,834,375 $5,000,000 $2,500,000 $3,621,249 (S1,874,571) $911,918 $333,241 $0 $o $0 $0 $12,326,212 City Loan Payment, MCAS Tustin Project Area $3,460,000 $4,500,000 $5,000,000 $490,550 $6,770,255 $3,641,824 $2,632,944 $0 $0 $0 $0 $26,495,573 Subtotal, City Loan Payments $6,014,375 $14,500,000 $10,000,000 $5,000,000 $5,000,000 $5,000,001 $3,213,747 $0 $0 $0 $0 $48,728,123 Net Revenues Available for Housing Projects/Programs (6) Town Center Project Area (552,148) ($4,458,246) ($1,939,285) ($307,861) $496,336 $175,416 $395,872 $665,954 $689,262 $713,386 $738,355 ($2,882,959) South Central Project Area ($725,138) ($4,359,358) ($1,836,935) ($2,934,977) $2,584,862 ($176,767) $427,641 $787,513 $815,075 $843,603 $873,129 ($3,701,352) MCAS Tustin Project Area ($1,462,989) ($1,381,703) ($376,828) $4,732,827 ($402,353) $3,330,791 $4,665,708 $7,477,509 $7,695,490 $8,004,088 $8,241,798 $40,524,338 Subtotal, Net Revenues ($2,240,275) ($1,0199,307) ($4,153,048) $1,489,989 $2678,845 $3,329,440 $5,489,221 $8,930,976 $9,199,827 $9,561,077 $9,853,282 $33,940,027 Annual Total All Project Areas ($2,240,275) ($10,199,307) ($4,153,048) $1,489,989 $2678,845 $3,329,440 $5,489,221 $8,930,976 $9,199,827 $9,561,077 $9,853,282 $33,940,027 PROJECTED FUND BALANCE, BEFORE $17,860,493 $15,620,218 $5,420,911 $1,267,863 $2,757,852 $5,436,697 $8,766,137 $14,255,358 $23,186,334 $32,386,161 $41,947,238 $51,800,520 INTEREST AND PROGRAWPROJECT CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 67 2008 (1) FY 2008/09 figures are budgeted. Thereafter, South Central and Town Center Project Area tax increment growth projected at 3.5% annually. MCAS Project Area tax increment growth is based on calculations from Taussig & Associates Consulting Group, adjusted to reflect a one year delay in the implementation schedule. FY 2007/08 only. (2) Between fiscal years 1985/86 and 1991/92, the Tustin Community Redevelopment Agency deferred a total of $2,776,042 from the Town Center Project Area's low and moderate income housing obligations. On February 1, 1993, the Agency adopted a plan to eliminate the deficit in subsequent years. Through the budget process, the Finance Director will make decisions about the loan re -payment to the Housing Set -Aside fund. (3) Operating expenses are projected to increase at 3.5% annually, except for a 10% annual increase in the MCAS project area for each of FY 2010/11 and FY 2011/12. In addition, in FY 2009/10, an additional $320,000 in operating expenses is allocated as a result of expenses previously assigned to the Tustin Legacy Enterprise Fund. The Enterprise Fund closes at the end of FY 2008/09 and the additional expenses will be allocated to the MCAS Expenditure Accounts. Of the $320,000, 25% (or $80,000) is assigned to the MCAS Set Aside Fund in FY 2009/10. (4) Payments from the Agency Set -Aside Fund to the City of $48,728,123 based on an agreement between the Redevelopment Agency and the City regarding Tustin Legacy. These funds are assigned to pay for specific CIP projects. CIP priorities and costs can change annually as could the projected payment amounts by year. Starting in 2010/11, City loan payments are distributed proportionately among the three Project Areas based on each Project Area's previous year's fund balance. Between 2007/08 and 2010/11, payments are based on immediate needs. Loan payments are projected to end on 2013/14. (5) Includes interest, rental income and loan proceeds budgeted for FY 2007/08 only. (6) Excludes interest earnings on the tax increment housing set-aside fund balance beyond FY 2008/09. The Agency projects interest earnings at 3 percent annually. Actual interest earnings will depend on the rate of expenditures on affordable housing projects/programs. Source: Tustin Redevelopment Agency; Tustin Community Development Department; Comprehensive Affordable Housing Strategy 2008.2018. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 68 2008 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, 2007 was $17.86 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 Table 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 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 69 2008 Eligible Program Description Activities Multi -Family Assistance to owners of 0 Rehabilitation Residential Rehab- multi -family projects Loan/Grant Program occupied by low- to moderate -income persons. First Time Low Interest Rates and • First Time Homebuyer Homebuyer Program Down payment assistance Single -Family Assistance to owners of 0 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 projects. Rental Housing Financial assistance for . Acquisition Program affordable multi -family . Rehabilitation rental projects. . New Construction Density Bonus The City allows an increase e 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 and low-income persons. Tax -Exempt Bonds The Redevelopment a New Housing Agency and the City have Development the authority to issue tax- . Rental Acquisition/ exempt bonds. The City is Rehabilitation also a member of California Statewide Communities Development Authority. Bond proceeds are used to develop affordable housing. City/Agency Owned Land CITY OF TUSTIN GENERAL PLAN If available and . Housing appropriate, City or a Community Facilities Redevelopment Agency owned land may be made available HOUSING ELEMENT 70 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES' CITY OF TUSTIN State Resources CalHome 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. • 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. Grants are made to sponsor • organizations that provide technical assistance to participating owner - builder families. 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 (conversion) 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 RESOURCESI CITY OF TUSTIN Jobs-Housing Balance Incentives Financial incentives to 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 2001, compared to the average number of permits during the most recent measurable 3(r month period prior to 2001. 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. Mobilehome Pazk 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. 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 RESOURCESi CITY OF TUSTIN Multifamily Deferred payment loans to Housing Program assist new construction, (MHP) rehabilitation and preservation of permanent and transitional rental housing for lower income households. Urban Predevelopment Loan Program (PDLP) New construction, rehabilitation, or acquisition and rehabilitation of permanent or transitional rental 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. Short-term loans to provide • predevelopment capital to finance the start of low- income housing projects in urban azeas. Predevelopment costs include, but are not limited to, site control, site acquisition for 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 Predevelopment Loan/Preservation Program (PDLP-P) Urban Predevelopment Loan/Jobs-Housing Balance Program (PDLP-J) Short-term loans to finance the initial costs of preserving existing affordable housing developments for existing tenants. Capital assessments to establish a project's condition and potential rehabilitation costs • Purchase option agreements • Professional services such as consultant, architect, engineering and legal • Permit and application fees • Bonding fees; etc. Short-term loans to finance • the initial costs of constructing, converting, preserving or rehabilitating assisted housing developments near transit stations. 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 TUSTIN HOUSING ELEMENT GENERAL PLAN 75 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES' CITY OF TUSTIN Proposition 1A 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 equivalent to the school fees paid by the affordable housing developers for that project in question. Downpayment Assistance Rental Assistance This programs structure and implementation strategy has not yet been determined by the State of California Emergency Shelter Grants awarded to non- . Support Services Program profit organizations for shelter su ort services California Housing Below market rate . New Construction Finance Agency financing offered to . Rehabilitation/ (CHFA) Multiple builders and developers of Acquisition Rental Housing multiple family and elderly Programs housing. Tax-exempt bonds provide below-market mortgage money California Housing Rehabilitation Program Low interest loans for the rehabilitation of substandard homes owned and occupied by lower- income households. City and non-profits sponsor housing rehabilitation projects. • 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 housing Infill opportunities through • Predevelopment program partnership with • New construcrion 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 for 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 TUSTIN HOUSING ELEMENT GENERAL PLAN 77 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES CITY OF TUSTIN California Debt Limit Allocation Committee (CDLAC) Allocation of private activity bond (tax-exempt 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 • Acquisition • 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. Low interest and downpayment program for low and moderate-income first time homebuyers. Permanent financing for new construction, acquisition/ rehabilitation, and acquisition of multi- family projects Federal Resource -Enti tlement Community Entitlement program that is • Section 108 Loan Development Block awarded to the City on a Repayments Grant (CDBG) 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. Mortgage Credit Federal tax credit for low- • First Time Home Buyer Certificate (MCC) and moderate-income Assistance homebuyers who have not owned a home in the past three years. Allocation for MCC is provided by the State through the County of Oran e. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 79 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN 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 the 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 are • Homelessness Grants (ESG) allocated on a formula Prevention (acquisition, basis. Funds are intended new construction, to assist with the provision rehabilitation, of shelter and social conversion) services for homeless • Supportive Services • O eratin Ex enses Housing Funds are made available • Rental Assistance Opportunities for countywide for supportive • Supportive Social Persona 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. Federal Resources -Competitive 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 2008 TABLE H- 21 AFFORDABLE HOUSING RESOURCES) CITY OF TUSTIN Section S 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 ro ram. 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 awarded on a competitive Multi-family units basis requires non-federal (HOPE 2) matching funds. • Homeownership of Single-family homes HOPE 3 McKinney Act Grants to develop • Transitional Housing Supportive Housing supportive housing and Permanent Housing For 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 100 units. Occupancy Program The provision of (SRO-Section 8) supportive services is o tional. 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 twen ears. HUD Mortgage Mortgage Insurance for • Acquisition Insurance for purchase or refinance of • New Construction Purchase/ 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 er ear. Homeless Providers Provides grants to develop . Acquisition Grant and Per Diem programs that help • Operation Program veterans recover from Administration homelessness, including • Single Room establishing transitional Occupancy Hotels housing and supportive • Social Services services for homeless • Transitional Housing veterans. Private Resources Federal National Mortgage Association (Fannie Mae) • Community Home Buyer Program -Fixed rate Mort a es Homebuyer Assistance • Community Home • Homebuyer Improvement Assistance/ Rehab Mortgage Program - Mortgagesfor both purchase and rehabilitation of a 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 Eunds 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 11~ 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. World/BRIDGE 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 1 The Replacement Housing, Housing Rehabilitation, Housing Production and Land Cost Write-Down programs all use the Redevelopment Agency'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 band 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 (FY 2008-09 to 2013-14). C[TY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 86 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible A en Funding Source Quantified Objective Timeframe Rn2l 1- Adanuata Flnucinn 3unnlv 1.1 Available Sites Community City General Fund; Assist in the development On-going Continue to utilize Planned Community Districts and Development Redevelopment of new affordable owner Specific Plans to authorize and encourage mixed-use Department, Agency Funds; City and rental housing developments (see Zoning Studies Program). Redevelopment and Agency staff through development in Agency, City Council time involved MCAS - Tustin and infill Housing Element Policies: 1.1, 1.8, 1.11 areas. 1.2 Mobile Homes Community City General Fund; As received Process applications as Continue to maintain the City's mobile home park zone Development processing fees received and process conditional use permit applications as Department, City (recoverable) received for manufactured homes. Council Housing Element Policies: 1.1, 1.3 1.3 Secondary Residential Units Community City processing fees As received Process applications as Continue to provide opportunities for affordable sec- Development (recoverable) received ondary residential dwelling units in the Single-family Department, City Residential District lots where feasible through existing Council Zoning Ordinance provisions. Housing Element Policies: 1.1, 1.7,1.13 1.4 Deed Restrictions Community 1) Tax -Exempt Impose such restrictions On-going Require appropriate deed restrictions to ensure continued Development Mortgage as required. affordability for low- or moderate -income housing Department, Revenue Bonds constructed or rehabilitated with the assistance of any Redevelopment public or Redevelopment Agency funds as may be legally Agency, City Council 2) Redevelopment required. Agency Housing Set - Housing Element Policies: 1.1 Aside Funds 1.5 Pre -application Conferences Community City General Fund; Continue On-going Continue to utilize procedures for pre -application Development City processing fees conferences and processing procedures to expedite Department (recoverable) permit processing. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 87 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.6 Permit Processing for Low- and Moderate Community City General Fund; Continue On-going Income Housing Development City processing fees Ensure that processing of permits for low- and moderate- (recoverable) income housing are fast -tracked with low- and moderate - income housing permits being given priority over other permit applications. Housing Element Policies: 1.11 1.7 Permit Coordination Community City General Fund; Processing of By 2014 Continue the services of the City's Community Development City processing fees approximately 10 new Development Department as a central clearinghouse with (recoverable) residential projects individuals assigned the responsibility of expediting annually, 50 projects by development permits required from various departments 2014 and agencies. Housing Element Policies:.1.11 1.8 Tax Increment Financing Redevelopment Redevelopment Assist 1,094 units by 2014 By 2014 Provide housing set-aside tax increment funds generated Agency Agency Housing from the Redevelopment Projects, where available, to Set -Aside Funds assist in providing housing accommodations for low- and moderate -income households in rehabilitation or new construction projects. Housing Element Policies: 1.6,1.12, 3.2, 4.2 1.9 Housing for the Disabled Community State and Federal Refer individuals to On-going; implement Require new multi -family housing units and apartment Development programs; City's agencies providing requirements of SB 520 conversions to condominiums to comply with State Department General Fund. supportive housing that specifications pursuant to SB 520 for accommodation of accommodates the disabled. The City will conduct analysis, add independent living. Add procedures, and/or undertake appropriate amendments procedures and/or to existing standards and complying with Chapter 11 of undertake appropriate the California Building Code (requires portion of multi- amendments to existing unit dwellings to be accessible dwelling units) to ensure standards to ensure accommodation for the disabled. compliance with SB 520. Housing Element Policies: 1.13, 1.15 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 88 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.10 Transitional Housing Various Non -Profit Variety of private • Promote, assist, and on-going assistance to Encourage the continuation of the Sheepfold homes and Organizations, funds; CDBG funds facilitate the local non -profits. Laurel House in Tustin, which provide housing facilities Redevelopment development of for battered homeless women and children. These homes Agency, Community emergency and are located in single-family neighborhoods and provide a Development transients' shelters much-needed service for homeless women and children. Department through continued In addition, explore additional program options to assist support of the County in the provision and funding for other programs such as Homeless Assistance transitional housing and single room occupancy housing. Program • Support local agencies Housing Element Policies: 1.15,1.16 who provide homeless services by providing financial assistance of approximately $5,000- $10,000 annually. 1.11 Temporary Housing for Homeless County of Orange, CDBG funds, HUD • Provide 192 emergency By 2014 The City will also support countywide efforts to assist Redevelopment SHP funds housing units to single approved homeless providers as part of the MCAS Tustin Agency men and women by Reuse effort. 2003 at Tustin Legacy (Orange County Rescue Housing Element Policies: 1.14, 1.15 Mission). • The City plans to assist 200 individuals by means of integrating counseling, education, job -training and other techniques to stop the cycle of homelessness. • Provide 24 units of transitional housing for families (operated by Salvation Arm CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 89 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 PrOeram I Resvonsible AQencv I Fundine Source I Ouantified Obiective Timeframe • Provide 6 units of transitional housing for women and children (operated by Human Options -Dove Housing) • Provide 6 units- in long-term 12-24 months -transitional housing for families with children (operated by Orange Coast Interfaith Shelter) • Provide 14 units of transitional housing to families with children who are homeless due to a short or temporary financial hardship (operated by Families Who Care, formerly Irvine Temporary Housing) • Provide for a 60 -unit expansion of Orangewood Transitional Housing for children (operated by the County of Orange) CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 90 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.12 Implementation Program Redevelopment Redevelopment Review within legal time • Mid -review of The Redevelopment Agency will review Implementation Agency Fund frames Implementation Plan Plan for each project area and Comprehensive Housing (Fiscal Year 2007-08) Affordability Strategy as required by Redevelopment Law and adjust as necessary. • Five-year review of Implementation Plan Housing Element Policies: 1.12, 3.2 (Fiscal Years 2005-2006 to 2009-2010) 1.13 Housing Opportunities for all Economic Private Developers in City General Fund; Monitor 174 affordable On-going Segments East Tustin, Staff time units in East Tustin Monitor the implementation of the affordable housing Community Develop - program adopted as a part of the East Tustin Specific ment Department Plan. Housing Element Policies: 1.1, 1.8,1.9, 1.10 1.14 Bonding Programs Redevelopment State and Municipal Complete analysis of On-going Issue Redevelopment tax-exempt bonds, as necessary, to Agency Bonds; Private available programs on as accomplish Five -Year Quantified Objectives with such Activity Mortgage needed basis. issuance conditioned on having projects ready to move Bonds Revenue forward. Also utilize other housing revenue bond issued by California financing resources and Low Income Housing Tax Statewide Credits on new construction and Communities acquisition/ rehabilitation projects that help meet the Development City's affordable housing needs. Authority and others; California Housing Element Policies: 1.12, 3.3 Low -Income Housing Tax Credits; variety of other sources CITY OF TUSTIN GENERAL PLAN 91 HOUSING ELEMENT 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.15 Economic Integration within Sphere of County of Orange City General Fund; On going request to both On-going Influence Staff time agencies. Request that the Orange County Planning Commission and the Environmental Management Agency (EMA) notice the City of Tustin of any proposed development activities within Tustin's sphere of influence. Housing Element Policies: 1.1, 1.4,1.5 1.16 Senior Citizen Housing Redevelopment Redevelopment Preservation of 100 at -risk. On going Continue to identify sites that are suitable for senior Agency; Community Agency Housing citizens housing projects. These sites will be promoted for Development Set -Aside Funds; private development and applications will be made for Department HELP; Low -Income any available subsidy funds. Housing Tax Credits; Private Housing Element Policies: 1.1,1.13, 1.15 Activity Bonds issued by California Statewide and others 1.17 Senior Services Program Parks and Recreation City General Funds Assist 850 elderly On-going Develop a comprehensive transportation program, case Department annually management, information and referral, and shared housing program. Housing Element Policies: 1.15, 2.3 1.18 Recycling Single -Family Uses in R-3 Zones Community City General Fund Respond to all requests On-going Into Multiple -Family Units Development and Redevelopment for density bonus per City Continue to encourage developers to consolidate Department Agency Funds; Staff codes. individual lots into larger cohesive developments. time Density bonuses may be considered as an incentive to consolidate lots. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 92 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.19 Ongoing Review of Housing Element Community City General Fund; On-going On-going Programs Development Staff time From the date of adoption of the Housing element, Department prepare an annual report to the Planning Commission assessing previous years accomplishments toward meeting Housing Element objectives. Submit the Annual Report to the State HCD. Housing Element Policies: all policies 1.20 Consolidated Plan Community Variety of local, Prepare Consolidated Prepare Consolidated The City of Tustin shall prepare an update of the Development State, and Federal Plan in 2010 Plan in 2010 Consolidated Plan that provides a comprehensive Department funding; City Prepare Action Plan assessment of housing needs, a housing development General Fund and annually Prepare Action Plan plan incorporating Federal, State and local public and Redevelopment annually private resources, and a one-year implementation plan. Agency Funds Staff time Housing Element Policies: 1.15, 1.16,1.18, 2.1, 4.1, 4.2, 4.3, 4.4, 5.1, 5.2, 5.3, 5.4, 5.5 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 93 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program I Responsible Agency I Funding Source I Quantified Objective I Timeframe 1.21 Zoning Studies Community To facilitate the new construction goals of the 2007 Development Regional Housing Needs Assessment, the City intends to Department undertake zoning studies to consider new programs to encourage and promote affordable housing and recommend appropriate amendments for actions by the Planning Commission and the City Council. These studies include: (1) Creation of zoning provisions which will accommodate mixed uses in portions of the City, particularly in the Old Town Commercial Area; (2) 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 -55 Freeway between McFadden Avenue and Main Street to assist the City in accommodating its housing needs; (3) Provide relaxation of certain development standards and incentives for projects which include affordable housing units upon City Council's approval; (4) Provide a process for individuals with disabilities to make requests for reasonable accommodation to relief from various land use, zoning, or other building rules, policies, and/or procedures of the City. sing Element Policies: 1.1, 1.11 City General Fund, Redevelopment Agency funds Initiate Zoning Studies by By 2009 2008 and complete any proposed amendments in 2009 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 94 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.22 Private Streets City of Tustin None necessary Continue On-going The City of Tustin has adopted standards for private streets in new residential developments. To reduce construction costs, developers may be permitted to install private rather than public streets, wherever feasible. Housing Element Policies: 1.17 1.23 Building Codes City of Tustin, City General Fund; On-going On-going The State of California has determined that the over- Community Staff time riding value is the protection of the health and safety of Development residential occupants. Continue to adopt the Uniform Department Building Code pursuant to the state directives and where local amendments are proposed to reflect local climatic, geologic or topographic conditions, and minimize, wherever possible, impacts on provision of housing. Housing Element Policies: 5.4 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 95 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.24 Site Improvements Community Developer funded Evaluate the use of special On-going The requirement for the developer to construct site Development assessment district improvements often result in passing these costs on the Department, funding at the MCAS - housing consumer. These costs are reflected in the cost of Redevelopment Tustin by 2005 and its use housing that eliminates an even greater proportion of the Agency in other developing areas. population from financially qualifying for the purchase of housing. The financing of public improvements by a special assessment district or community facility district on a per parcel benefit basis may enable a greater proportion of the market to qualify for housing. Assessment district financing has been implemented in the East Tustin area and is being used to pay for public improvements. The City will assess opportunities to utilize these public improvement financing techniques in newly developing areas such as MCAS Tustin and determine whether they are financially feasible. In creating any new assessment districts, an evaluation should be completed of the developer's activity to advance pay off bonds at the close of escrow. Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 96 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.25 Fees, Exactions, and Permit Procedures Community City General Fund; On-going On-going Consider waiving or modifying various fees or exactions Development Redevelopment normally required where such waiver will reduce the Department, Agency Set -Aside affordability gap associated with providing housing of Redevelopment Housing the elderly and for very -low and low-income households. Agency Housing Element Policies: 1.11 1.26 Environmental Constraints Community General Fund; On-going On-going Continue to alleviate the necessity of delays in Development Private developer processing, and mitigating requirements incorporated Department, cost recoverable into the development plans by requiring program Redevelopment environmental impact reports (EIR) on all major Agency development projects whenever possible. Housing Element Policies: 1.11 1.27 Density Bonus Program Community General Fund, Process all requests for On-going Promote Density Bonuses to facilitate the construction of Development Redevelopment density bonuses. affordable housing. Under State law, applicants may file Department Agency Housing for density bonuses when projects incorporate units for Set -Aside Funds very low, low, moderate -income units or senior citizens. Housing Element Policies: 1.11 Tustin Community Redevelopment Process entitlements for On-going 1.28. MCAS -Tustin Redevelopment Project Area Redevelopment Agency funds MCAS Tustin Implementation Agency Implementation of redevelopment project area for MCAS -Tustin site Housing Element Policies: 1.2; 1.6;1.8 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 97 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible_ A ency I Funding Source I Quantified Objective Timeframe Goal 2: Eaual Housina Oaoortunity 2.1 Fair Housing Community Develop- CDBG funds Assist approximately 400 On-going; complete The City shall continue to provide housing counseling ment Department, Tustin residents annually, educational resources by services to assure equal housing opportunities within the City's contractor 3,000 residents by 2014. 2014 City. The City allocates approximately $15,000 annually for handling tenant/ landlord disputes, housing discrimination cases, counseling, tenant rights, fair housing education, and education within the City. The City will continue to promote the fair housing educational resources offered by adding the services on the City's webpage, Code Enforcement brochure, and the Community Development directory. Housing Element Policies: 2.1, 2.2, 2.4 2.2 Shared -Housing TLC, Parks and CDBG funds Continue On-going Continue to provide coordination and support to a home Recreation Services sharing program funded in part by the Community Department, and SeniorServ, formerly known as Feedback Foundation, Community Inc., as part of TLC (Transportation Lunch and Development Counseling) and the Orange County Housing Authority. Department Housing Element Policies: 2.3 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 98 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 2.3 Housing Referral Program Police Department; City General Fund, • 7,500 referrals to social On-going Continue to provide housing referral services to families Parks and Recreation CDBG Funds agencies by 2014 in need of housing assistance and information. This Department; program consists of three City departments Community • 50 referrals for shared disseminating information to the public at all times. Development; housing by 2014 • The Police Department refers homeless people to Redevelopment different agencies that provide shelters and food for Agency various segments of the population. • The Parks and Recreation Services Department provides housing information and social service information to the senior citizen population. • The Community Development Department and Redevelopment Agency provide housing and social service information to all segments of the population during regular city hall business hours. The Community Development Department also serves as a clearinghouse for the Community Development Block Grant Program and represents the City at Housing Authority and OCHA Advisory Committee Meetings_ City departments utilize the following documents and also make these documents available to the public: • Directory of Senior Citizen's Services prepared by the Area Agency on Aging Senior Citizen's Office • Social Service Assistance Booklet prepared by Connection Plus • Orange County Housing Directory prepared by OCHA and the OCHA Advisory Committee. Housing Element Policies: 2.2, 2.3, 2.4, 2.5 Ongoing Review of Housing Element Programs See Progaml.19 Consolidated Plan See Program 1.20 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 99 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source I Quantified Ob'ective Timeframe Goal 3: Ownership Housino 3.1 Condominium Conversions Community City General Fund, Impose requirements On-going Continue to require developers converting apartments to Development Redevelopment where applicable. condominiums to process a conditional use -permit, Department, City Agency Housing provide relocation assistance, and/or to provide Council, Set -Aside Funds incentives and assistance for purchase of the units by Redevelopment low- and moderate -income households. Agency Housing Element Policies: 3.1, 3.2, 3.3 3.2 State Home -Ownership Assistance Redevelopment Redevelopment Assist 30 First time On-going The City's Redevelopment Agency provides a First Time Agency Agency Housing homebuyers by 2014 Homebuyers program utilizing housing set-aside funds. Set -Aside Funds; The Redevelopment Agency also applies for and will State and Federal explore the use of other funding opportunities such as sources HELP, HOME funds, and other State and Federal programs. Housing Element Policies: 3.1, 3.3 Bonding Programs See Program1.14 Ongoing Review of Housing Element Programs See Program1.19 Consolidated Plan See Program1.20 Goal 4: Affordable Housing Preservation 4.1 Replacement Housing Redevelopment Redevelopment As necessary As necessary Ensure rehabilitation or construction of an equal number Agency Agency Housing of replacement units when low and moderate income Set -Aside Funds; residential units are destroyed or removed from the Private developers market as part of a specific redevelopment project pursuant to California Community Redevelopment law. Housing Element Policies: 2.5 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 100 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 4.2 Housing Rehabilitation' Redevelopment Redevelopment The City plans to Rehabilitate 193 units by Allocate available Redevelopment Agency funds to Agency Agency Housing Rehabilitate 193 units by 2014 finance public improvements and rehabilitation of Set -Aside Funds 2014. residential units in target areas. Housing Element Policies: 1.2, 5.1, 5.2 4.3 Housing Authority Orange County HUD, CDBG, Continue On-going Contract with the Orange County Housing Authority, Housing Authority, Redevelopment where necessary, for the development and operation of Redevelopment Agency Housing federally assisted low- and moderate -income housing Agency Set -Aside Funds programs. Housing Element Policies: 1.5,1.16,1.17 4.4 Rental Assistance County of Orange HUD Issue 200 certificates/ On-going Encourage the availability of Section 8 rental assistance Housing Authority vouchers annually -1,200 certificates and voucher certificate program assistance by 2014. funds through the Orange County Housing Authority. To encourage the maintenance of existing and establishment of new certificates, support the County's efforts to obtain continued Federal funding. Housing Element Policies: 4.1, 4.2 4.5 Affordable Senior Housing Project and Senior Community None necessary Maintain 74 units of On-going Board and Care Facility Development affordable Senior To maintain 74 units of affordable housing for Seniors Department Housing. located at 17432-17442 Mitchell Avenue (20 units) and 54 units affordable senior apartments at 1311 Sycamore Avenue (Heritage Place). Housing Element Policies: 5.1, 5.2, 5.3, 5.4 4.6 Preservation of Assisted Housing Community • Redevelopment Preserve 277 units On-going Tustin has four low-income housing projects with a total Development Housing Set- currently at greatest risk of 277 units at risk of conversion to market rate during Department, Aside Funds, (100 units at Tustin the planning period. If project owners choose to convert Redevelopment State and Federal Gardens; 72 units at the projects to market rate housing, coordinate the Agency Funds Rancho Alisal; 54 units at CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 101 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe provision of financial and administrative resources to Rancho Maderas; 51 units preserve these units as affordable housing. • Low Income Tax at Rancho Tiera) a) Monitor Units at Risk: Maintain contact with owners of Credits, Private at risk units as potential conversion dates approach to Activity determine whether Section 8 contracts or affordability Mortgage covenants have been renewed or are planned to be Revenue Bonds renewed. Discuss with the owner of the "at risk" projects the City's desire to preserve the units as affordable. . Variety of other b) Tenant Education. Work with tenants of at risk units in sources danger of converting. Provide tenants with information regarding potential tenant purchase of buildings in- cluding written information and any related workshops. Act as a liaison between tenants and nonprofits potentially involved in constructing or acquiring replacement housing. If existing staff is not able to provide adequate staffing for this program, provide outside consultants to support the program. c) Work with Nonprofits. Work with nonprofit housing providers to explore and if appropriate, facilitate acquisition or replacement of at risk units. d) Reserve Fund. Earmark development housing set- aside funds to assist priority purchasers with the down - payment and closing costs associated with purchasing projects at risk. Continue to monitor other potential funding sources, such as State grants and HUD funds. Housing Element Policies: 4.1, 4.2, 4.3, 4.4 4.7 Temporary Housing Assistance Redevelopment Redevelopment Promote, assist, and By 2014 Agency and Housing Set -Aside facilitate programs to Assist in the provision of temporary and emergency Community Funds, HUD prevent extremely low housing assistance to prevent homelessness for the Development Section 8 Program, income households to extremely low income households as well as coordination Department CDBG become homeless. with regional, state and federal assistance programs for assisting these households in the percentage of their CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 102 2008 TABLE H- 22 Hnl tSiNG Fi.F.MF.NT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe incomes that are applied to rent (i.e. increase in allocation of Section 8 existing rental certificates, etc). Housing Element Policies: 1.4, 1.5, 1.6, 1.14 On-going Continue to enforce building and housing codes to Mobile Homes See Program 1.2 Deed Restrictions: See Program 1.4 Tax Increment Financing See Program 1.8 Transitional Housing See Program 1.10 Ongoing Review of Housing Element Programs See Program 1.14 Consolidated Plan See Program 1.20 Goal 5: Neighborhood Conservation 5.1 Enforcement of Building and Housing Codes Community City General Fund Investigate 150 On-going Continue to enforce building and housing codes to Development substandard housing ensure health and safety, rectify Code violations and Department cases annually and 900 thereby improve the overall character of the community. cases by 2014. Enforcement will include identifying substandard housing units and those that are otherwise identified as a threat to the health and safety of occupants. Actions will be taken pursuant to the law to demolish, rebuild, or correct the code violations. This program includes notification of taxing agencies upon failure to gain code compliance from the property owner to allow City to recover enforcement cost. Housing Element Policies: 5.3, 5.4 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 103 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 5.2 Cultural Resources District Community CD13G, City General Rate historic structures Process Certificate of There are a large number of structures in the City that Development Fund, State grants where applicable and Appropriateness as were constructed before and after the turn of the century. Department process certificates of received. Continue to utilize the City's Cultural Resources Overlay issuance of a building permit. appropriateness as District to safeguard the heritage of the City by received. preserving neighborhoods and structures that reflect the City's heritage and past. Through the District, promote the public and private enjoyment, use and preservation of culturally significant neighborhoods and structures. Continue to require that any alteration of a designated resource or construction improvements in the District conform to the requirements of the Cultural Resources Overlay- District. Owners of historic landmarks or properties within the District are required to obtain a certificate of appropriateness before beginning any type of exterior construction, alteration, or demolition. A certificate of appropriateness certifies that the proposed changes are consistent with the design guidelines and are appropriate within the district context. Housing Element Policies: 5.5 Ongoing Review of Housing Element Programs See Program 1.19 Consolidated Plan See Program 1.20 Building Codes See Program 1.23 Goal 6: Environmental Sensitivity 6.1 Energy Conservation Community None necessary Require all new units On-going Require all new construction to be subject to State energy Development within planning period. conservation requirements (Title 24) as a condition for the Department issuance of a building permit. I ousing Element Policies: 6.2 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 104 2008 TABLE H- 22 HOUSING ELEMENT PROGRAMS 2006-2014 Program Responsible Agency Funding Source Quantified Objective Timeframe 6.2 Energy Rebate Program Community General Fund, Seek available grants to On-going Partner with Utility Companies to promote energy rebate Development potential Grants partner with utility programs. Department companies to promote energy rebate programs. Housing Element Policies: 6.6 6.3 Solar Energy and Conservation Community None necessary On-going On-going Require that environmental analysis and subdivision Development plans address energy conservation measures and solar Department access. Housing Element Policies: 6.2, 6.3 6.4 Building Orientation Community None necessary On-going On-going Promote energy efficiency by orienting homes to Development maximize natural day lighting. Department Housing Element Policies: 6.2, 6.3 6.5 Water Efficiency Community None necessary On-going On-going Promote water -efficient landscapes, efficient irrigation, Development and use of permeable paving materials. Department Housing Element Policies: 6.4 6.6 Green Building Community General Fund On-going On-going Streamline processing for approved green building. Development Department Housing Element Policies: 6.2, 6.3, 6.5 Ongoing Review of Housing Element Programs See Program 1.19 Consolidated Plan See Program 1.20 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 105 2008 This page intentionally left blank. CITY OF TUSTIN GENERAL PLAN 106 HOUSING ELEMENT 2008 Appendix to Housing Element APPENDIX A REVIEW OF PAST PERFORMANCE CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 107 2008 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 SLAG 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 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 (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). As indicated in Table HTM-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 1998-2008 period, exceeding the City's objective of 3,298 units for the planning period. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 109 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. Second Kesidential Units The previous City ordinance regarding second residential units required a conditional use permit for the establishment of the use in several residential zoning districts. In 2003, the City adopted an ordinance modifying the zoning code to no longer require a conditional use permit and to allow second residential units to be processed at a ministerial level, to be in conformance with California state law. In the current review period and prior to this ordinance, the Community Development Department approved one third residential unit at 135 South A Street. The objective to provide two new second residential units in the review period has been met. 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 110 2008 Appendix to Housing Element 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 16 beds through the period, as well as 90 beds at the Orange County Social Services Tustin Family Campus facility 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 192-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. Six 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). CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 111 2008 Appendix to Housing Element Housing opportunities for all economic segments The program to monitor the implementation of the affordable housing program adopted as a part of the East Tustin Specific Plan has successfully met the objective of monitoring 174 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. 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 112 2008 Appendix to Housing Element 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 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 evaluate the use of special assessment district funding at MCAS Tustin (Tustin Legacy) by 2005 as well as in other developing areas. During the 1998-2000 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 113 2008 Appendix to Housing Element Environmental Constraints The on-going goal was to require program Environmental Impact Reports (EIR) 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/EIR 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. Between 2001-2008, Lennar/Lyon were granted 182 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) to 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 114 2008 Appendix to Housing Element 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 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 (OCHA) 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 OCHA. Rental Assistance The program to provide rental assistance through Section 8 certificates and voucher certificate program assistance funds through the OCHA was successful over the review period. The objective to issue 200 certificates/vouchers annually and 1,000 by 2005 was CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 115 2008 Appendix to Housing Element 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. 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 City's heritage and past. The objective in the planning period was to rate historic structures where applicable and process 20 certificates of appropriateness. In the 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 C[TY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 117 2008 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 1 18 2008 Cify of Tustin Affordability Gap and leveraged Financing 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 opptions for new residential development in Tustin. The "affordability gap" methodology detem~ines the difference between the supportable mortgage on the unit at affordable rents and sales prices and the actual development cost 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 Redevelopment 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 project. 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 by Tustin and Orange County area developers. The third step in the gap analysis establishes the housing expenses borne 6y 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 teveraged Financing Analysis Page 1 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 housingprototype, 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 supportable 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 ~aps for the owner prototypes 'are summarized in Table 1. The gaps have been calcu ated for the following three income levels:. Income Limit Affordable Housing Cost 1. Very Low Income 50% of Area Median Income (AMD, adjusted 30% of 50% AMI for household size 2. Low Income 80% of AMI, adjusted for household size 30% of 70% AMI 3. Moderate Income 120% of AMI, adjusted for household size 35% of ~ 10% AMI Depending upon 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 afforcable 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•Iocal 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 (AMI), 30% of 50% AMI adjusted for household size 2. Low Income 80% of AMI, 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 private sources of funding that might be used to subsidize affordable rental and ownership housing in Tustin. For ownership housing, per unit mortgage assistance, as available, genera y 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 only)'; 2. 4% tax credits with tax-exempt bonds; 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 Develop Area (DDA) by HUD in ?007, projects in the County are eligible fora 130% basis boost for the calculation of Federal tax credits but are not eligible for Stare 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 Low Low Moderate Psototvoe/Unit Bedroom Count Inrnme= Income' Income' Owner Prototype #1' Attached Townhome Two Bedroom $366,000 5322,400 5195,500 Three Bedroom 5387,800 5339,400 S 198,400 Four Bedroom $426,800 ;374,600 5222,300 Average $393,500 5345,500 $205,400 Owner Prototype #2~ Stacked Flat Condominium One Bedroom 5258,600 $219,900 $107,100 Two Bedroom $259,000 $215,500 $88,600 Three Bedroom 5267,100 $218,800 $77,800 Four Bedroom 5290,500 ;238,300 586,000 Average $268,800 5223,100 $89,900 Owner Prototype #3' High Density Condominium O~ Bedroom $407,500 $368,800 5256,Q00 Two Bedrooom $432,500 3389,000 $2b2,100 Three Bedroom 5542,000 5493,700 5352,600 Four Bedroom $569,400 5517,200 5364,800 Average $487,900 $442,200 5308,900 Owner Prototype #4` Mixed Use, Ground Floor Retail One Bedroom X491,700 5453,000 5340,200 Two Bedrooom 5537,400 5493,900 5366,900 Three Bedroom $595,000 5546,600 5405,600 Average 5541,300 5497,800 5370,900 Source: David Paul Rosen & Associates City of Tustin Affordability Gap and Leveraged Rnancing Malysis Page 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 occupancy 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 ;50 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 percent 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 70 percent of AMI, adjusted for household size. Average low income affordable home purchase price is;116,457. ' Moderate income owner affordable housing cost is calculated as 35 percent of 1 l0 percent of AMI, adjusted for household size. Average moderate income affordable home purchase price is 5249,713. s Owner Prototype rr1 average unit size is 1,296 square feet. Average per unit development cost is $468,663. Per unit development costs are adjusted by unit size/bedroom count. e Owner Prototype t2 average unit size is 1,142 square feet. Average per unit development cost is ;339,591. Per unit development casts are adjusted by unit size/bedroom count. Owner Prototype ~t3 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 *4 average unit size is 1,515 square feet. Average per unit development cost is 5608,112. Per unit development costs are adjusted by unit size/bedraom 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 Unit Bedroom Count One 8edn~om5 Two Sedroom° Three Bedroom' Four Bedrooms Average Renter Prototype Stacked Flat Apartments Very Low Low Moderate Incomes Income' Income` $311,300 $294,600 $211,400 $348,000 $329,300 $235,600 $321,800 $402,000 $301,000 $379,600 $197,000 $174,800 $345,775 Source: David Paul Rosen & Associates. $326,125 $204,700 City of Tustin Affordability Gap and Leveraged 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 $300, 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 one, per California Redevelopment Law. ' Very low income renter affordable housing cost is calculated as 30 percent of 50 percent of AMI, 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. SOne bedroom unit is 750 square feet. Per unit total development cost is $321,075. `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 Gap and Leveraged Financing Analysis Page 7 Table 3 Average Ppr Unit Subsidy Requirement Rental Housing Prototype: Stacked flat Apartment Leveraged Finandng Scenarios City of 11~stin 2008 tevera i"inancina Scenarios 9°~6 Tax Credits 4% Tax Credits, Tax-Exempt Bonds 4% Tax Cn~dits, Tax-Exempt Bonds, Multi-Family Housing Program (MHP) Source: David Paul Rosen & Associates. Renter Prototype Stacked Flat Aparbnent $57,000 5140,100 ~109,ti00 City of Tustin Affordability Gap and Leveraged Financing Analysis Page 8 Appendix to Housing Element APPENDIX C AFFORDABLE HOUSING CAPITAL PLAN FY 2008-09 TO FY 2013-14 C[TY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 2008 Appendix to Housing Element This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 2008 I~~_~~~1 DAV[1) PAUL ROSEN & ASSOCIATES City of Tustin Comprehensive Affordable Housing Strategy Appendix E: Affordable Housing Capital Plan 1 Prepared for: City of Tustin Submitted By: David Paul Rosea & Associates -.ri; ~:a].itc~rnia Southern Califor.r.i.a David Rosen, Principal Nora Lake-Brown, Principal 1330 Broadway, Suite 937 3941 Hendrix St Oakland, CA 94612-2509 Irvine, CA 92614-6637 Phone: 510-451-2552 Phone: 949-559-5650 Fax: 510-451-2554 Fax: 949-559-5706 e-mail: David~DRp,Conaultants.com a-mail: Nora~DgAConaultanta.com www.draconsultants.com www.draconaultants.com May 2, 2008 Table of Contents PAGE 1.0 Introduction ......................................... 1 2.0 Affordable Housing Assistance Goals and Programs..... 1 2.1 Preservation of At-Risk Affordable Housing ....... 1 2.2 Single- and Multi-Family Home Rehabilitation Program ............................................ 2 2.3 Ownership Multifamily New Construction ........... 2 2.4 Multifamily Rental New Construction/Acquisition and Rehabilitation ............................... 2 2.5 First-Time Homebuyer and/or Foreclosure Negotiated Purchase .................................. 2 2.6 Homeless Assistance and Supportive Services ...... 2 2.7 Tustin Legacy Ownership Multifamily New Construction ..................................... 3 2.8 Tustin Legacy Rental New Construction ............ 3 2.9 Administrative Support .......................... 3 City of Tustin Administrative Review Draft May 2, 2008 Comprehensive Affordable Housing Strategy Page ii List of Tables Table 1. Six-Year Capital Plan Goals, City of Tustin Comprehensive Affordable Housing Strategy, FY 2008/09 to FY 2013/14 ................................. Page 4 City of Tustin Administrative Review Draft May 2, 2008 Comprehensive Affordable Housing Strategy Page iii Affordable 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 Unite 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 of at-risk housing with expiring use restrictions within the six-year 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 market 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. 2.Z Siugle- and Multi-Family Homo Rehabilitation 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 New 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 11 units affordable to low income households. 2.4 Multf-Family Rental New 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 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 Ownership Multi-Family New Construction The City's development agreements for Tustin Legacy are projected to create 323 new affordable multi-family ownership units in 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 2.8 Tustin Legacy Rental New Coaatruction 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. 2.9 .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 Table Summary of six -Yea Al Plan Goals CRy at Tustin dwriplshenafnre Ar,ojdable !lowing Strategy FY 2001111115 to FY 2013114 ESTIMATED ASSISTANCE ESTrI►TED SIDY COST GOALS N d SUBSIDY PROGRAM TENURE 1d1BPER UNIT th") REQUIRED SOURCE OF FUNDS 1 Presayaslorr o7At-Wsk AabrdWW Renal UrNts (1) RDA Housing Set- RN N UNK 277 *2.181,872 A" Vary Lor 745 Low 132 _._ 2 SkpNand alu rNmnoRsh&bgsYon------._._____..__—.._--- 182 *947.000 Aldo EYrgla Fam11y Omar *10.100 51 Very Lor 32 LOW 16 Modwab 6 1aua4Farr11y Racal *3.600 106 Vary Lor 21 LOW 21 11o" 3 Ownership ANNIAmmily Naw• ConaYucypr (3) - -- ---- -- - - - - -- - -- m 18 *4.383.3 3 Aside Ver Lowu66,two � _ -.. .- Lor --...__--- *223,100 11 4 Rehab (4) lyRanfal Nor Cww&ucftWAcgrhldon and -- ROA F1onrYrp 8eF -- R�r N1 Ramal 31 *4.383,343 Aside . .... Lar ----.._-------- -----*140.100 31e FkaFnmabanasuy.rowdhrFmoJo.w. —R. SA lioudiq Set- Purchase Vary Low Owner *80.000 30 112A00.000 AS WO g LOW 10 Modaals 15 0 Manatees AWsarwe A SupFWNM Swvkm (M TrarwBanal 200ar Pyea *60.000 COSG -- -- -.._F�cb.mN7bw — --- ---- —a1— — T 7esan Lsgwer Ownsrshp MWM*ii agr Now-- Caealnredan P/ TLCP Owns 323 UNK Asids Vary Lary UNK 0 LOW UNK 31 Modsrab UNK W VBegn of C"mmis Vary Lau *0 40 Lea' 1D 05 a Town Lovocr Rerbl Mew Cansbucom (n - - - - -_ ----- -- -- ----- Renw 363 UNK Aside Vary Low UNK 126 LM UNK 54 Moderate UNK 63 8 AOaY1h>6nlve Support WA WA WA -- -_--- *4.883.314 ka Martie ft - - we TOTAL (s) 1.094 *19,2p,s72 Foewudn : (1) The Estimerd Subsidy and Es&mftd &&eddy Cod Per Unita w*mw (UNK) et 0i 0ma. (2) The vim ba of Mu&Fenily wft is 11n bw merber d NM unit rMabed, nd buNWW mhebed. The bun mnbw of br8dhp will be aignn11fordy less sir moat MuOFForriy Rehab invd 1owllaxnm ,1 building - 4 renis! wWA mhsbad. (3) Esrnabd subady i basad On Owner Prddype d@, Stednd Flat CondomYdwn Modal. (4) EsBmalad sub&* me based on bnrgm 4% Low bfcarne HaaYq Tax Credits w8h Tax -Exam" Sonde ler 0r Ranier Pmwtn a. (5) Assistance Goal is moss red In ranee d psrsom rued n apposed b n rMa of housing wft (6) The TLCP unit count is projeclad Phase 1 dereloprlwd and 1110 subsidy is urdmown NW at Ods gma. The cod Of maidairbg bre a6addWky of tln TLCP unit WE be handened to 110 Redavdopnwd Agency and 1he expwre assoebbd wilh arinbbeg on 45 yea oovenaria d11 be debrnwood at ow time reakiOn iel devalopnmd proceeds. (T) The crus Count Y projs, TLCP Phan 1 dew WIN Wer ad to subsidy is uMunown (UNIQ at 11ds Enna. The coo of msh W6 g tin alladabOy of 11n TLCP rental wilts will be 4rondnred to 8nRadsvoloprme Agency and 910 aIParae aaoNabd wtlh nrbnb" Ow 55 year covenaets Will be delrmknd al are Wm I * -- did developrrm proceeds. (8) The Tow --bar d honing units don not icchrda 11n wAd w of prism saved under Homaiems Assiatsnce a Supportive Swrices. APPENDIX D PUBLIC PARTICIPATION MAILING LIST CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 2008 Veterans Service Dept. Dayle McIntosh Center Orange Coast Interfaith Shelter 4220 Lemon Street 13272 Garden Grove 1963 Wallace Street, Apt. A Riverside, CA 92501 Garden Grove, CA 92843 Costa Mesa, CA 92627 YMCA Assistance League of Tustin Families First 13821 Newport Avenue, #200 P.O. Box 86 12012 Magnolia Street Tustin, CA 92780 Tustin, CA 92780 Garden Grove, CA 92641-3346 Tustin Area Historical Society & Legal Aid Society of Orange County Community Services Program Museum 2101 N. Tustin Avenue 16842 Von Karman, Suite 425 395 El Camino Real Santa Ana, CA 92705 Irvine, CA 92714 Tustin, CA 92780 Ronald M. Griffith Probation Community Action Assoc. Mardan Center of Educational Therapy Acting President & CEO 1111 N. Main Street, #176 1 Osborn Century Housing Santa Ana, CA 92701 Irvine, CA 92604 1000 Corporate Pointe, Suite 200 Culver City, CA 90230 Helen Anderson Allen Baldwin Joan Basile Hunger Coalitions OC Community Housing Corp. Mary's Shelter 14452 Wildeve Lane 1833 E. 17th Street, Suite 207 17671 Anglin Lane Tustin, CA 92780 Santa Ana, CA 92701 Tustin, CA 92780 Diane Aust Doug Bistry Civic Center Barrio Tustin Area Council for Fine Arts O.C. Affordable Housing 980 W.17~ Street, #E P.O. Box 145 23861 El Toro Road, Suite 207 Santa Ana, CA 92706 Tustin, CA 92781 Lake Forest, CA 92640-4733 Vanessa Bruner Jerry Caminiti Patrick Carroll Learning for Life Disability Awareness Coalition Life Share 1211 East Dyer 3773 University Drive, #118 11421 Garden Grove Boulevard Santa Ana, CA 92705 Irvine, CA 92612 Garden Grove, CA 92643 Shirley Cohen Donna Core Community Action Partnership Feedback Foundation, Inc. Meals on Wheels of Orange County 1200 N. Knollwood Circle 1001 N. Tustin 12640 Knott Street Anaheim, CA 92801 Santa Ana, CA 92707 Garden Grove, CA 92841 Pat Davis John Drew Jennifer Feldstein Big Brothers & Sisters of OC Family Solutions Women Helping Women 14131 Yorba Street 203 N. Golden Circle Drive, #101 425 E. 18th Street #14 Tustin, CA 92780 Santa Ana, CA 92705 Costa Mesa, CA 92627-3161 John 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 CITY OF TUSTIN HOUSING ELEMENT 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 Irvine, CA 92715 Santa Ana, CA 92702 Laguna Beach, CA 92652 Elmer Hothus Warren Johnson Christian Temporary Housing Facility Salvation Army 704 N. Glassell Street 10200 Pioneer Road Orange, CA 92867 Tustin, CA 92780 Becky Johnson Alliance for the Mentally Ill 621 S. "B" Street, Suite B Tustin, CA 92780 Habitat for Humanity of Orange County 2200 S. Ritchey Street Santa Ana, CA 92705 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 Theresa Marji Legal Aid of Orange County 2101 N. Tustin Avenue Santa Ana, CA 92705 Easter Seal Society, Inc. 4321 Walnut #Sll Irvine, CA 92604 Jim Miller Shelter for the Homeless 15161Jackson Street Midway City, CA 92655-1432 Boys & Girls Club of Tustin 580 W. Sixth Street Tustin, CA 92780 Joyce Riley Learning Disabilities of Southern Calif. P.O. Box 25772 Santa Ana, CA 92799 Robyn Class Orange Children & Parents Together 3550 E. Chapman Avenue Orange, CA 92869 Elaine Lintner OCSPCA-Paws 5660 Avenida Antigua Yorba Linda, CA 92687 Human Options Second Step P.O. Box 53745 South Laguna, CA 92619 Sherry McCulley Legal Aid Society of Orange County 2101 N. Tustin Avenue Santa Ana, CA 92705 Lutheran Social Srvc. of Southern Calif. 2560 North Santiago Blvd. Orange, CA 92867 David Levy Fair Housing Council of O.C. 201 S. Broadway Santa Ana, CA 92701 Jon Schlemmer St. Vincent de Paul Center for Reconciliation 2525 N. Grand Avenue, #N Santa Ana, CA 92703 Judy Johnson ESA/Corporate Office 23861 El Toro Road, Suite 207 Lake Forest, CA 92640-4733 JoAnn Ruden Tustin Public School Foundation 17411 Irvine Boulevard, #I Tustin, CA 92780 Doris La Magna The Villa Center, Inc. 910 North French Santa Ana, CA 92701 Marisa Charette, President & CEO Tustin Chamber of Commerce 399 El Camino Real Tustin, CA 92780 Brenda Martin Laurel House 13722 Fairmont Way Tustin, CA 92780 OC Council on Aging 1971 E. 4~ Street #200 Santa Ana, CA 92705 Beverly Nestande Olive Crest Homes 2130 E. Fourth Street, Suite 200 Santa Ana, CA 92705 Barbara Resnick Western Dev. for Affordable Housing 112 E. Chapman Avenue Orange, CA 92867 Orange County Homeless Issues Task Force 1770 N. Broadway Santa Ana, CA 92706 Susan Stokes Donald Taylor Mary Atkinson Smith The Blind Children's Learning Center Turning Point Center for Families 201 S. Sull van Steee Orange County 18542-B Vanderlip Avenue 2101 E. 4th Street, #150-B Santa Ana, CA 92705 Santa Ana, CA 92705-3814 Santa Ana, CA 92704 Sister Marie Therese Lestonnac Free Clinic 1215 E. Chapman Avenue Orange, CA 92869 Lynne Tsuda Central Orange County YWCA 146 North Grand Street Orange, CA 92866 Serving People in Need 151 Kahnus #H-2 Costa Mesa, CA 92626 Clyde Weinman Irvine Temporary Housing 6427 Oak Canyon Irvine, CA 92620 Randy Wenz Orange County Council 3590 Harbor Gateway North Costa Mesa, CA 92626 Carol Anne Williams Interval House P.O. Box 3356 Seal Beach, CA 90740 Hunter L. Johnson, President & CEO ZINC Housing 110 Pine Street, Suite 500 Long Beach, CA 90802 Patrick McCabe, Project Manager William Lyon I Iomes, Inc. 4490 Von Karman Avenue Newport Beach, CA 92660 Steve Kabel John Laing Homes 895 Dove Street, Suite 200 Newport Beach, CA 92660 Glenn Hayes, Executive Director Neighborhood Housing Services of Orange County 198 W. Lincoln Ave., 2"d Floor Anaheim, CA 92805 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 Pilgrimage Family Therapy 23201 Mill Creek Road #220 Laguna Hills, CA 92653 Tim Wells Episcopal Service Alliance 1872 Drew Way Orange, CA 92869 The Eli Home, Inc. 1175 N. East Street Anaheim, CA 92805 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 100 Huntington Beach, CA 92647 Rancho Cucamonga, CA 91730 Marsha Santry, Community Manager Lennar Homes 25 Enterprise Aliso Viejo, CA 92656 Orange County Social Services Tustin Family Center c/o Steven Johsz, Senior A&E Project Mgr Resources & Development Management 1152 E. Fruit Street, Bldg. l Santa Ana, CA 92701 Elizabeth Cobb, VP, Director of Development Tustin Legacy Community Partners c/o Shea Properties 130 Vantis, Suite 200 Aliso Viejo, CA 92656 Gina Martinez Orange County Congregation Community Organization (OCCCO) 310 W. Broadway Anaheim, CA 92805 Maria I. Marquez Interim Division Manager Adult Mental Health Services 405 West Fifth Street, Suite 550 Santa Ana. CA 92701 Maury Ruano Mercy Housing 500 S. Main Street #110 Orange, CA 92868 Randy Gibeaut Trinh LeCong, Executive Director BIA Orange County Chapter Community Housing Resources Affordable Housing Clearinghouse 17744 Sky Park Circle, #170 1411 North Broadway 23861 El Toro Road #401 Irvine, CA 92614 Santa Ana, CA 92706 Lake Forest, CA 92630 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, Suite 700 1 Hope Drive Santa Ana, CA 92701-4002 Irvine, CA 92614-5904 Tustin, CA 92782 Homeless Issues Coordinator County of Orange 10 Civic Center Plaza, 3Ld Floor Santa Ana, CA 92701 Maya Dunne, Asst. Vice President SJHS Foundation 6z 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 Karen Roper, Director Orange County Housing/Community Captain Lee Lescano Development Department The Salvation Army 1770 N. Broadway 10200 Pioneer Road Santa Ana, CA 92706 Tustin, CA 92780 Scott Larson, Executive Director HomeAir Orange County 17744 Sky Park Circle, Suite 170 Irvine, CA 92614 Cynthia Campbell Human Options, Inc. (DOVE Housing) PO Box 9376 Newport Beach, CA 92658 Joan B. Margol Orange Coast Interfaith Shelter 635 Vista Bonita Newport Beach, CA 92660 Affirmed Housing Group 13520 Evening Creek Dr. North, #360 San Diego, CA 9212$ Sheri Barrios, Executive Director Orange Coast Interfaith Shelter 1963 Wallace Avenue Costa Mesa, CA 92627 Cesar Covarrubias Senior Project Manager The Kennedy Commission 17701 Cowan Ave„ Suite 200 Irvine, CA 92614 David Levy Gerald W. Dingivan, President & CEO Lucy Dunn, President & CEO 14331 Browning #24 Southern California Presbyterian Homes Orange County Business Council Tustin, CA 92780 516 Burchett Street 2 Park Plaza, Suite 100 Glendale, CA 91203 Irvine, CA 92614 Appendix to Housing Element APPENDIX E REFERENCES Appendix to Housing Element REFERENCES A. Documents 1. 1990 Census Report. U.S. Department of Commerce, Bureau of the Census. 2. 2000 Census Report. U.S. Department of Commerce, Bureau 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, 1999. 7. Southern California Association of Governments, Regional Housing Needs Assessment, 2007. 8. City of Tustin, Zoning Ordinance. 9. City of Tustin, General Plan, as amended January 16, 2001. 10. 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. 11. 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. 12. 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. 13. City Council Staff Report, Appendix to Housing Element 14. State of California, Department of Housing and Community Development, Website. 15. Orange County Client Management Information System Year End Progress Report, Orange County Housing Partnership, December 2007 16. Orange County Department of Education, Division or School and Community Services, McKinney-Vento Homeless Education Assistance Act, 2006-07. B. Persons and Organizations 1. Christine A. Shingleton, Assistant City Manager Tustin Community Redevelopment Agency (714) 573-3107 2. Elizabeth A. Binsack, Community Development Duector 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 Appendix to Housing Element 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 11. Robert Stiens Tustin Community Foundation (714) 777-4653 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 TABLE OF CONTENTS Section Page INTRODUCTION ................................................................................................................................1 STATE LAW AND GENERAL PLAN GUIDELINES 1 SOURCES OF INFORMATION 6 SUMMARY OF HOUSING ISSUES, NEEDS, OPPORTUNTI'IES, AND CONSTRAINTS........ 7 HOUSING NEEDS ASSESSMENT .................................................................................................... 9 POPULATION/EMPLOYMENT TRENDS 9 HOUSEHOLD CHARACTERISTICS 14 HOUSING STOCK CHARACTERISTICS 31 ASSISTED HOUSING PRESERVATION ANALYSIS 40 CONSTRAINTS TO THE DEVELOPMENT, IMPROVEMENT AND MAINTENANCE OF HOUSING ....................................................................................................49 GOVERNMENTAL CONSTRAINTS 49 MARKET CONSTRAINTS 62 ENERGY CONSERVATION ............................................................................................................ 67 SUMMARY OF PREVIOUS HOUSING ELEMENT PROGRAMS ............................................. 69 PROGRESS IN IMPLEMENTING THE 1989 GOALS AND OBJECTIVES 69 REVIEW OF PAST PERFORMANCE 70 APPENDICES: A. AFFORDABILITY GAP ANALYSIS B. REFERENCES C. MAJOR EMPLOYERS IN TUSTIN D. ORANGE COUNTY BUSINESS COUNCIL SCORECARD CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM i 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 HTM- 5: Employment by Industry 2000 14 TABLE 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 34 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM ii 2008 TABLE HTM- 22: Resale Price of Homes and Condominiums Tustin and Neighboring Jurisdictions March 2008 35 TABLE HTM- 23: Affordable Monthly Housing Cost 36 TABLE HTM- 24: Average Rental Rates 37 TABLE HTM- 25: Affordable Net Rents 38 TABLE HTM- 26: 2006-2014 Housing Needs 40 TABLE HTM- 27: Assisted Units At Risk for Conversion 42 TABLE HTM- 28: Assisted Housing Inventory 43 TABLE HTM- 29: 2008 Fair Market Rents 47 TABLE HTM- 30 Affordable Net Rents 47 TABLE HTM- 31: Cost of Providing Rental Subsidy for Very Low Income Households 48 TABLE HTM- 32: General Plan Residential Land Use Categories 50 TABLE HTM- 33: Summary of Residential Zoning Regulations City of Tustin 53 TABLE HTM- 34: Comparative Development Fee Summary 60 TABLE HTM- 35: Summary Table Effectiveness of Housing Element Programs: 1998-2008 70 TABLE HTM- 36: Effectiveness of Housing Element Programs 1998 2008 72 TABLE HTM- 37: Progress Towards objectives 1998-2008 98 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM iii 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 summarized in graphic form (table, 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 each 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 (RHNA) 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 2006 to June 2014. By 2012, the City, along with other jurisdictions in the SLAG 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, improvement, 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 must meet 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-governmental constraints upon the maintenance, unprovement, 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. B. 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 afive-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 2008 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 65580 of the California Government 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. 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, 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 TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 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 regarding existing needs and projections regarding future housing needs. Data regarding housing costs have been obtained from local 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 Condition. Many 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 Conversion 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 2008-2018. For the 2006-2014 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 RHNA 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 affordable housing in Tustin. Housing Problems. According to the 2007 Regional Housing Needs Assessment, the City had 3,935 lower income (household income less than 80°~ of County median) households overpaying (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 Stock 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 1960s, 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 50 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 TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 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 2O0a2007 CITY OF TUSTIN, SURROUNDING JURISDICTIONS AND ORANGE COUNTY Growth urisdiction 2000' 2007 s 2000-07 Tustin 67,504 72,542 7.5% Anaheim 328,014 345,556 5.3% Gazden Grove 165,196 172,781 4.6% Irvine 143,072 202,079 41.2% Santa Ana 337,977 353,428 4.6% Oran a Coun 2,846,289 3,100,313 8.9% ' 2000 U.S. Census z 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 is expected to increase by approximately 10 percent to 88,694 persons by the year 2025. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 10 2008 Table HTM-1a Population Projection 2010 2015 2020 2025 Percent Change ~zmo-2o25~ Tustin 80,728 86,621 88,245 88,694 10~° Source: OCP 2006 Age Characteristics Table HTM-2 shows the proportions of the City's population represented by age groups n11990 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 TRENDS 1990 - 2000 CITY O F TUSTIN A e Grou 1990 % Total 2000 % Total 0-4 4,464 8.8% 5,815 8.6% 5-14 5,916 11.7°~ 9,916 14.7% 15-24 9,127 18.0% 8,685 12.8°~ 25-34 12,254 24.2% 13,798 20.4% 35-54 11,898 23.5% 19,710 29.2% 55-64 3,187 6.3% 4,776 7.1% 65-74 2,292 4.5°~ 2,745 4.1 7$+ 1,551 3.1% 2,059 3.1°~ Total 50,689 100.0% 67,504 100.0% Sources: U.S Bureau of Census, 2000; Center for Demographic 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 significantly. The Hispanic population has increased from about 20% of the total population in 1990 to about 34% in 2000. Asian/Pacific CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 11 2008 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 ETHNICITY: 1980, 1990, 2000 CITY OF TUSTII~T 1980 ~ 1990 2 2000 s Race and Ethnicity Po ulation Total Po ulation Total Po ulation Total s White 31,654 87.6% 37,127 73.2% 30,264 44.8% Black 957 2.6% 2,895 5.7% 1,785 2.6°h American Indian 237 0.7°~ 274 0.5% N/A N A Asian/Pacific Islander 1,683 4.7% 5,260 10.4% 10,194 15.1% Other 1,588 4.4% 5,133 10.1% 2,151 3.2% His anic a (3,085) (8.5%) (10,508) (20.7%) 23,110 34.2% Total 36,119 100% 50,689 100% 67,504 100% iyau census 2 1990 Census ~ 2000 Census + The Census contains a sepazate 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 Stares. Persons of Spanish origin could be of any of the five racial categories. e Center for Demographic Research, 2000. CDR reported the Hispanic population for 7998 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. In 2000, the largest occupational category was professional and related occupations, in which a total of 7,467 were employed. The CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 12 2008 second largest category was the management, business, and financial operations occupations, employing 6,657. TABLE HTM- 4 EMPLOYMENT BY OCCUPATION 2000 CITY OF TUSTIN Occu ational Cate o Number Management, business, and financial operations occu ations 6657 19.1 Professional and related occu aiions 7,467 21.4% Healthcare su ort occu ations 506 1.4% Protective service occu ations 432 1.2°~ Food re ration and servin related occu ations 1,502 4.3% Building and grounds cleaning and maintenance occu ations 1,186 3.4% Personal care and service occu ations 9S7 2.7% Sales and related occu ations 4,278 12.3% Office and administrative su ort occu ations 6,040 17.3°~ Farmin , fishin and fo occu ations 33 0.1 Construction and extraction occu lions 1,222 3.5°~ Installation, maintenance, and re air occu ations 735 2.1 Production occu ations 2,689 7-7°~ Trans ortation and material movin occu ations 1,202 3.4% Total 34,906 100.0% 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 Electronics, Inc., Rockwell Collins, Cherokee International, ADC Telecommunications, Balboa Instruments, Toshiba America Medical Systems, the City of Tustin, and Costco Wholesale. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 13 2008 TABLE HTM- 5 EMPLOYMENT BY INDUSTRY 2000 CITY OF TUSTIN Indus Number A riculture 774 1.9% Minin 4 .Ol Construction 2,437 6.1 Manufacturin non-durable oods 1,890 4.7% Manufacturin durable oods 5,919 14.8% Trans ortaHon and ublic utilities 1,174 2.9% Wholesale trade 3,645 9.1% 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% Self Em to ed 2,526 6.3°~ TOTAL 40,107 100.0% source: u.r turo 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 t 2000 ~ 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% N/A N/A Non-Famil 6,015 32.8% 7,776 32.6% N A N/A Total 18,332 100°k 23,831 100% 24,787 100°k ' U.S. Dept. of Commerce, Bureau of the Census,199p Census. z U.S. Dept. of Commerce, Bureau of the Census, 2000 Census 3 Total populations based on Department of Finance estimates, January 2007 Table HTM-6 shows that 12,317, or about 67%, of the City's households were classified as family households in 1990. The percentage of households remained the same in 2000. Moreover, as shown in Table HTM-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 attributed 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 East 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 a Coun 2.87 3.00 3.09 ' U.S. Depk of Commerce, Bureau of the Census, 1990 Census Repork z U.S. Dept. of Commerce, Bureau of the Census, 2000 Census Report 3 California Department of Finance (DOF), 2007 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 15 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 (SCAG) 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: 1) 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 17 DECEMBER 2001 TABLE HTM- 8 HOUSEHOLDS IN OVERCROWDED CONDITIONS 2006 CITY OF TUSTIN Tenure Extremely Overcrowded Low Total Very Low Overcrowded Total Low Overcrowded Total Moderate & Above Overcrowded Total Total Overcrowded Total All Households Owner 45 525 140 760 225 1,370 410 9,200 820 11,855 Renter 520 1,585 870 1,910 1,100 2,780 975 5,710 3,465 11,985 Total 565 2,110 1,010 2,670 1,325 4,150 1,385 14,910 4,285 1 23,840 Source: Southern California Association of Governments (SLAG) Regional Housing Needs Assessment (RHNA), 2007 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 17 DECEMBER 2001 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. In 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- mentionedjurisdictions. TABLE HTM- 9 MEDIAN HOUSEHOLD INCOME: TUSTIN AND SURROUNDING AREAS 20()0 risdiction Median Household Income Percent Above/Below Coun Median Median Family Income Percent Above/Below County Median Tustin $55,895 -5.2% $60,092 -7.5% Anaheim $47,122 -24.8% $49,969 -29.3% Garden Grove $47,754 -23.2% $49,697 -30.0% Irvine $72,057 18.4% $85,624 24.5% Santa Ana $43,412 -35.5% $41,050 -57.4% Oran a Coun $58,820 -- $64,611 -- State of California $47,493 -23.8% $53,025 -10.9% Source: U.S. Department of Commerce, Bureau of Census, 2000 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 Range # Households) % Households % Cumulative Less than $14,999 1,787 7.5°~ 7.5°~ $15,000 to $24,999 2,026 8.5°~ 16.0% $25,000 to $34,999 2,479 10.4% 26.4% $35,000 to $49,999 4,194 17.6% 44.0% $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% Median Household Income, $55,985 City of Tustin Median Household Income, 558,820 Orange County ~ Derived by applying the percentage of households by income level Erom Summary File 3, Table P-52 (total number of households shown as 23,853) to a total of 23,831 occupied households from Summary File 1, Table H-3 for consistency with other Census data on the number of households used in this report. SOURCE: 2000 U.S. Census; Comprehensive Affordable Housing Strategy, 2008-2018. 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 MEMORANDUM 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% 6.09'0 $10,000 to $19,999 1,140 9.5% 15.5% $20,000 to $34,999 2,568 21.4% 36.9% $35,000 to $49,999 2,857 23.8% 60.7% $50,000 to $74,999 2,653 22.1% 82.8% $75,000 to $99,999 1,308 10.9°i6 93.7% $100,000 or More 756 6.3% 100.0% Total Renters 12,002 100.0°/a OWNER HOUSEHOLDS Less Than $10,000 246 2.1 % 2.1 $10,000 to $19,999 537 4.5% 6.6% $20,000 to $34,999 1,ll0 9.4% 16.0% $35,000 to $49,999 1,301 11.0% 27.0% $50,000 to $74,999 2,442 20.7% 47.7% $75,000 to $99,999 1,894 16.0% 63.7% $100,000 to $149,999 2,581 21.8% 85.5% $150,000 or More 1,718 14.5% 100.0% Total Owners 11,829 100.0% 1 Derived by applying the percentage of household tenure by household income from Summary File 3, Table HCTll (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 Filc 1, Table H-3 for consistency with other Census data on the number of households used in ttus report. Sources: 2000 U.S. Census; Comprehensive Affordable Housing Strategy , 2008-2015. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 20 2008 Table HTM-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 RHNA. 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 OF TUSTIN 2006 Tenure/Income Range, Number Percent Cumulative as percentage of AMI RENTER HOUSEHOLDS Below 30 percent AMI 1,585 13.2% 13.2°~ 30 - 50 percent AMI 1,910 16.0°k 29.2°,U 50 - 80 percent AMI 2,780 23.2°k 52.4°~ 80 - 95 percent AMI 1,670 13.9% 66.3% Over 95 percent AMI 4,040 33.7°~ 100.0°~ Total Renters 11,985 100.0% OWNER HOUSEHOLDS Below 30 percent AMI 525 4.4°,6 4.4°~ 30 - 50 percent AMI 760 6.4°,6 10.8°~ 50 - 80 percent AMI 1,370 11.6% 22.4% 80 - 95 percent AMI 885 7.5 % 29.9% Over 95 percent AMI 8,315 70.1 % 100.0% Total Owners 11,855 100.0% AMI =Area Median Income Source: Southern California Association of Governments, 2007 RI INA 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 groupst. The 2007 RHNA identifies housing overpayment for lower-income households based on income data from the 200(} 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 low-income households. While the extremely low income households are currently housed, they are in a precarious position, particularly those overpaying for housing in light of the current housing market, and could face the threat of homelessness. 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 ~ 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% 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 income households in the City overpaying for housing, 2,660 or 68% were renters. TABLE HTM-12 HOUSEHOLDS OVERPAYING FOR SHELTER 2006 CITY OF TUSTIN __ Extremel Low Ve Low Low Moderate & Above Total Total All Tenure Aver 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: SLAG RHNA, 2006. Special Needs State Housing 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 (AMI) 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: Physical 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 23 2008 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 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 standards 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 apartments 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 are provided in the Tustin Legacy area, accessibility is considered as part 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 area will further require development of even more handicapped- accessible 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 limitations 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 are typically smaller than single-family units, larger families who are CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 24 2008 also renters face more difficulties in securing housing large enough to accommodate all members of the household. 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°,6 4 Persons 3,331 14.0% 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 percent 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% 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 TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 25 2008 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 large families 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 1,700. female-headed households with children under 18 living at home. 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 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 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 26 2008 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: 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 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. The City's Police Department estimates that there are 10-12 homeless persons residing in the City at any given time. Although there are no 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 Legacy 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 27 2008 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. 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 (Redevelopment Act), the City of Tustin was formally 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 28 2008 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-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/ Zoning Conditionally 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 All residentially zoned six (fi) or fewer Permitted properties Family care home, foster All residentially zoned home, or group home for six Permitted (6) or fewer properties ~ Includes congregate care facility, single room occupancy hotel, and children's intermediate care shelter Source: City of Tustin, MCAS Tustin Specific Plan CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 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 CITY OF TUSTIN Facility Services Provided Sheepfold Provides shelter, food, clothing, job training, and 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. Red Hill Lutheran Operates emergency food program where a erson can receive food su 1 3 rimes a ear. Collects food supplies and distributes the food to Tustin Presbyterian various organizations involved in providing homeless services. Aldergate Refers interested persons to Ecumenical Services Alliance in Santa Ana. Village of Hope 192 beds transitional home at the Village of Hope o erated the Oran a 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. Salvation Army Six (6) new transitional units at Tustin Field I perated by Salvation Army and Acquisition of 16 transitional units in Buena Park Salvation Army operated by Salvation Army. The City assisted in acquisition and contributed grant funds to ac wire the units Fourteen (14) new transitional units at Columbus Families Forwards Grove to be operated by Families Forward, formers Irvine Tem ora Housin in Irvine. Human Options Six (6) new transitional units at Columbus Grove 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 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. Suurce: 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 compazes 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 - 2007 TUSTIN AND SURROUNDING AREAS Number of Housin Units Percent Chan e Jurisdiction 1990' 2000 s 2007 s 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 4b,703 47,197 1.6°~ 1 Irvine 42,221 53,711 74,936 27% 40% Santa Ana 75,000 74,588 75,375 -0.5°~ 1% Oran eCoun 875,072 969,484 1,024,692 1°~ 6°,6 ' U.S. Department of Commerce, Bureau of the Census, 1990 Census Report. x 2000 Census Report. s State of California. Department of Finance, Revised Estimate, May 2007. Housing Unit Type Table HTM-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, 15 percent multi-family (2-4 units), 36 percent multi-family (5+ units), and 4 percent mobile homes. Compared to Orange County as a whole, Tustin 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°k, 8,697 34.1 % 7.7% Sin le-Famil Attached 2,530 13.1 % 3,459 10.8% .3,807 14.9% 10.1 Multi-Famil 2-4 units 3,0'89 16.0% 3,836 12.8°~ 3,110 12.2% -18.9% Multi-Famil 5+ units 7,678 39.5% 9,223 43.0% 8,955 35.1°~ Mobile Homes 707 3.6°,6 908 2.9°~ .908 3.6% 0% Total 19,300 99.9%* 25,501 100.1%* 99.9% N/A 1 ota15 do not equal lUUYu due to rounding error. Source: California Department of Finance; Comprehensive 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% 2.71 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 rate than rental housing. Housing 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. In 2000, 49.6% 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 38.6% 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. Coun of Oran e Owner-Occu ied 496,782 60.1% 574,456 61.4% Renter-Occu ied 330,284 39.9% 360,831 38.6% Total Occuvied Units 827,066 100.0% 935,287 100.0°~ Source: Comprehensive Affordable Housing Strategy 2008 - 2018. Age and Condition of Housing Stock Housing age is a factor for determ;r,;ng the need for rehabilitation. Without proper maintenance, housing units deteriorate over time. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 33 2008 TABLE HTM- 20 TENURE 1990 AND 2000 CITY OF TUSTIN 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 "/u of Housin Stock 2001 to 2007 1,639 6.4°~ 1999 to 2000 590 2.3°~ 1995 to 1998 2,684 10.5°,6 1990 to 1994 3,240 12.7% 1980 to 1989 2,792 11.0% 1970 to 1979 6,238 24.5 °~ 1960 to 1%9 6,333 24.9% 1950 to 1959 1,285 5.0% 1940 to 1949 225 0.9% 1939 or earlier 451 1.8 Total 25,477 100"/" Source: Comprehensive Affordable Housing StrateBY 2008 - 2018 Housing Costs Ownership Housing: Southern California, in line with the nation, is 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 research 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, beginning 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. Within 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 HTM-22, Tustin is experiencing the same trend with a significant drop in home price sales, especially in the areas of the city in the lower end of the housing market. 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 HTM-22 ranged from $205,000 to $819,500. Overall, median resale home prices in Tustin were similar to those occurring throughout Orange County. TABLE HTM- 22 RESALE PRICE OF HOMES AND CONDOMINIUMS TUSTIN AND NEIGHBORING URISDICTIONS MA RCH 2008 Median Home % Change Ci Zi Code Price-Mazch 2008 ' from 2007 Tustin 92780 $416,250 -34.7% Tustin 92782 $570,000 -9.9% 92801 $360,000 -35.7% 92802 $430,000 -22.4% 92804 $390,000 -31.5% Anaheim 92805 $350,000 -37.4% 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 92844 $429,000 -2.5% 92845 $438,000 -24.2% CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 35 2008 92602 $740,000 -1.3 92603 $819,500 14.1 92604 $561,818 -8.2% Irvine 9260(' $670,000 21.8% 92612 $422,500 -21.2% 92614 $470,000 -] 6.1 92618 $496,250 -9.9% 92620 $740,000 4.2°~ 92865 $453,000 -31.1 °~ 92866 $509,000 -15.9% Orange 92867 $490,000 _26,5% 92868 $362,500 -19.2% 92869 $520,000 -16.2°~ 92701 $205,000 -33.9% 92703 $358,750 -38.1 Santa Ana 92704 $298,500 -48.8% 92705 $710,000 2 1.4°~ 92706 $433,000 -29.5°~ 92707 $330,000 -40.0°~ liars mciuue au nome sales, new and resale, and condominiums. z Includes Lemon/Cowan Heights Source: Orange County 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 COSTr CITY OF TUSTIN 2008 Unit Size No. 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 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 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 MEMORANDUM 36 2008 Rental Housing: According to Realfacts, the average rent for Tustin in 2007 was $1,528. Studio and one-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. Table HTM-24 presents a summary of the rental rates. TABLE HTM- 24 AVERAGE RENTAL RATES 2007 CITY OF TUSTIN Number of Bedrooms Number of Units Average S uare F e Average Rent Studio 200 521 $1,138 lbd/lba 2,312 733 $1,292 2bd TH 194 1,074 $1,674 2bd/lba 706 974 $1,436 2bd/2ba 1,885 1,024 $1,810 3bd TH 56 1,441 $1,861 3bd/2ba 216 1,173 $2,431 Total 5,903 894 51,528 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 units. 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 aforr-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 Table HTM-24). It is important to note, however, that the rental survey considered only large, CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 37 2008 investment-grade rental properties and did not report prices of 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 aze 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. TAB)(.E HTM- 25 AFFORDABLE NET RENTS 2008' ' 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 ~sasea on tiu u income omits, zwr. Source: Comprehensive Affordable Housing Strategy, 2008-2018. Share 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 38 2008 Construction needs are defined as the number of units that would 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 RHNA fair-share allocation for the 2006-2p14 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 re-use 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 azea. 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. Accordingly, hom 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 for 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% 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 MEMORANDUM 39 2008 TABLE HTM- 26 2006-2014 HOUSING NEEDS CITY OF T USTIN Income Cate o # of Units % of Total Ve Low <50%Coun Median 512 21.5°~ Low 50°~ -80°~ Coun Median 410 17.2% Moderate 80% -120% 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 40 2008 Tustin has one project that contains units "at risk" of converting to unrestricted market rate rents. Tustin Gardens is a 101-unit Section 221(D)(4) project with a Section 8 contract for 100 units. In 2003, the 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 local programs, including HUD 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, or expiring use restrictions. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 41 2008 TABLE HTM- 27 AT RISK FOR CONVERSION IN 2006-2014 CITY OF TUSTIN Project Name,Affordability Owner. HUD 221(D)(4) # of Type/Length of Earliest Tenant Date Address Name, Type(s) of Gov't Section 8 Controls Potential # of Type Bedroom Built Income (incl. zip) Address, Assistance Contracts (including Conversion Units (i.e., Elderly, Mix (if Group 213-204-2050 Tel. # Section 8 (if applic.) Sec. 8) Date(s) Family) known) FEDERAL Tustin Gardens Goldrich & Kest HUD 221(D)(4) 275 E. 6th 5150 Overland Ave. 100 40 yr Loan 100 Elderly 1001-br 1979 100 very low Tustin, CA 92780 Culver City, CA at 8% 213-204-2050 902.30 Section 8 July 2008 Source: Comprehensive Affordable Housing Strategy 2008 - 2018. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 42 2008 TABLE HTM- 28 ASSISTED HOUSING INV EN1 ORY Type/Length Earliest Tenant Tustin Gardens Date Community Project Name, Owner: Name, Type(s) of Govt of Affordability Potential # of Type Bedroom Built Condition (if Address Address, Assistance Controls Conver- sion Units (i.e., Elderly, Mix (if known) (incl. zip) Tel. # 100 (including Date(s) Family) known) Bond Financing restrictions Sec. 8 213-204-2050 90230 FEDERAL STATE Goldrich & Kest California Statewide Tustin Gardens 5150 Overland Community Income 6 1-br E. 6th Ave. HUD 221(D)(4) --- -- 101 Elderly 101 1-br 1979 Good Tustin, CA 92680 Newport Beach, Section 8 rent 7/13/00 100 9 3-br Culver City, CA Bond Financing restrictions 213-204-2050 90230 STATE CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 43 2008 The Irvine Co. California Statewide Rancho Alisal 550 Irvine Ctr. Community Income 6 1-br 13800 Parkcenter . Dr. Development restricted. No May 2012 72 Family 57 2-br 1987 Excellent Tustin, CA 92680 Newport Beach, Authority 1998-A rent 9 3-br CA Bond Financing restrictions 92660-9959 The Irvine Co. California Statewide Rancho Maderas 550 Irvine Ctr. Community Income 13408 Heritage Way Dr. Development restricted. No May 2012 54 Family 101-br 1988 Excellent Tustin, CA 92680 Newport Beach, Authority rent 44 2-br 730-3700 CA c Bond Financing restrictions 92660-9959 Rancho Tierra The Irvine Co. California Statewide Income 7 3-br 13202 Myford Rd. 550 Irvine Ctr. Community restricted. No May 2012 51 Family 44 2-br 1988 Excellent Tustin, CA 92680 Dr. Development rent CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 43 2008 TABLE HTM- 28 ASSISTED HOUSING INVENTORY LOCAL Tustin Grove Tract 14934 Redevelopment Type/Length Earliest 21 Tenant 21-3br N/A Very Project Name, Owner: Name, Type(s) of Gov't of Affordability # of Type Bedroom Date Built Condition Address Address Assistance Controls CPotential Units Family Mix (if New (incl. zip) Tel. # Agency (including sion Eld(�erl known) known) Sec. 8 Date(s)Family y) 17-1 br 730-5868 Newport Beach, Authority 1998-A restrictions 93-2br 1602 Nisson Rd. CA Bond Financing rent 5/2028 150 Family 40-3br N/A Good Tustin, CA 92780 92660-9959 restrictions LOCAL Tustin Grove Tract 14934 Redevelopment DDAi N/A 21 Family 21-3br N/A Very Agency Good Ambrose Lane Tract 15707 Redevelopment DDAI N/A 8 Family 8-3br N/A New Agency Income 17-1 br Orange Gardens Westchester Redevelopment restricted. No 93-2br 1602 Nisson Rd. Park, L.P. Agency rent 5/2028 150 Family 40-3br N/A Good Tustin, CA 92780 restrictions Hampton Square Income 16331 McFadden Fairfield Redevelopment restricted. No r Ave. Residential Agency rent 10/2011 210 Family 86-2br 86-2br 1969 Good Tustin, CA 92780 Corp. restrictions Flanders Pointe Tustin Income 15520 Tustin Village Affordable Redevelopment restricted. No 10/2029 49 Family 41-2br 1966 Good Way Housing Corp. Agency rent 7 2br Tustin, CA 92780 restrictions Ownership 45 years of Tustin Field I Various owners Redevelopment income initial 78 Family 27-2br 2006 Excellent Tustin, CA 92780 Agency restricted. purchase 51-3br date CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 44 2008 TABLE HTM- 28 ASSISTED HOUSING INVENTOKY Type/Length Earliest Tenant Date Project Name, Owner: Name, Type(s) of Govt of Affordability Potential # of Type Bedroom Built Condition (i f Address Address, Assistance Controls Conver- sion Units (i.e., Elderly, Mix (if known) (incl. zip) Tel. # (including Date(s) Family) known) Sec. 8 45 years of Tustin Field II Various owners Redevelopment Ownership income initial 40 Family 40-3br 2007 Excellent Tustin, CA 92780 Agency restricted. purchase date Ownership 45 years of Arbor Walk Various owners Redevelopment income initial 10 Family 10-3br 2006 Excellent Tustin, CA 92780 Agency restricted. purchase date Cambridge Lane Redevelopment Ownership income 45 years of initial 36 Family 11-1br 13-2br 2� Excellent Tustin, CA 92780 Various owners Agency restricted. purchase 12-3br 2007 date 45 years of Camden Place Various owners Redevelopment Ownership income initial 37 Family 22-2br 2006 Excellent Tustin, CA 92780 Agency restricted. purchase 15-3br 2007 date 45 years of Clarendon Various owners Redevelopment Ownership income initial 42 Family 42-3br 2006 Excellent Tustin, CA 92780 Agency restricted. purchase 2007 date 955 TOTAL N/ A - Not available DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2005-2018; City of Tustin, 2008. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 45 2008 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-year 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 market 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 HUD 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 a11100 at-risk units with potential to expire during the planning period to maintain subsidized rents CITY OF TUSTIN HOUSING ELEII~NT 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 2008 FMRs for Orange County, which encompasses the City of Tustin, are shown in Table HTM-29. TABLE HTM- 29 2008 FAIR MARKET RENTS ORANGE COUNTY Efficiency" ~ 1 Bedroom ~ 2 Bedroom ~ 3 Bedroom ~ 4 Bedroom $1,103 ~ $1,238 ~ $1,485 ~ $2,125 _ ~ $2,441 'Efficiency =Studio Apartment FMRs include utility costs Source: County of Orange Section S program Table HTM-30 indicates that affordable net rents for very low income households would be approximately $733 for a one bedroom unit, $817 for a two bedroom unit, and $886 for a three bedroom unit. To 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 80% 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 are 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, 2008-2018 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL 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 eam 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 FOR VERY LOW INCOME HOUSEHOLDS Affordable No. Differe Total Unit FMR Rent 1 Units nce Monthly Annual 1 Bedroom $1,238 $733 0 $505 $50,500 $606,000 2 Bedroom $1,485 $817 0 $668 $0 $0 TOTAL $50,500 $606,000 ~ 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 foIlowing 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 areas 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 Housing 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 25 dwelling units per acre in the High Density Residential designation, which corresponds to the R-3 Multiple Family Residential District in the Zoning Code. Up to 10 units per net acre are 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 CITY OF TUSTIN Effective Dwelling Unit per Density Desi ation Descri ion Acrea 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 z S ecific Plan densi residential develo ments. Maxunum aensrty m awellmg orals per acre u prescnbed by individual Planned Community Documents. Effective dwelling units 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) Source: City of Tustin General Plan, Land Use Element, 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 (DOF) reports 25,477 dwelling units have been constructed (as of January 2007) 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: Achieve balanced development; 2. Ensure that compatible and complementary development occurs; Revitalize older commercial, industrial, and residential development; 4. Promote economic 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 azea. 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 OF 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 TABLE HTM- 33 SUMMARY OF RESIDENTIAL ZONING REGULATIONS r1TV n1P TI ISTTN Source: City of Tustin Zoning Code 2008. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 53 2008 Lot Building Interior Corner Zoning Minimum Lot Area Coverage Height Front Yard Side Yard Side Yard Rear Yard R -A Residential Agricultural 7,200 square feet 40 percent 30 feet 20 feet 5 feet 10 feet 5 feet, but no less than 1,000 District feet clear and unobstructed on open space. E-4 Residential Estate District 10,000 square feet 40 percent 30 feet 20 feet 10% of lot 10% of lot 20 percent lot depth width width R-1 Single -Family Residential 7,200 square feet 40 percent 30 feet 20 feet 5 feet 10 feet 5 feet, but no less than 1,000 District feet clear and unobstructed on rear 113 of lot. R-2 Duplex Residential District 3,500 square feet 40 percent 30 feet 20 feet 5 feet 10 feet - R-2 Duplex Residential District 3,500 square feet 50 percent 35 feet 20 feet 5 feet 10 feet 10 feet (single structure) R-3 Multiple Family Residential 1,750 square feet 65 percent 35 feet 15 feet 5 feet 10 feet 10 feet District R-4 Suburban Residential 3,000 2 stories or 20 feet 5 feet 10 feet 25 feet District 35 feet MPH Mobile Home Park Minimum 5 acre site 75 percent 30 feet Trailer park -none. District for mobile home park. Individual lot -5 feet Travel trailer shall not (measure from curb exceed 10% of total to actual structure, spaces in mobile home hitch excluded). park. P -D Planned Development 10,000 To be To be To be determined To be To be To be determined with adoption District determined determined with adoption of P- determined determined of P -D District with with D District with with adoption of adoption of adoption of adoption of P -D P -D P -D District P -D District District District Source: City of Tustin Zoning Code 2008. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 53 2008 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 Oranges 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 congregate in the City and that most persons migrate through Tustin to other areas within Orange County, rather than stay for extended periods of time. The Orange County Partnership, anon-profit organization whose purpose is to strengthen public and private agencies serving the homeless and those at risk of homelessness, reported that in 2007 there were 34 homeless persons identified Tustin as the city of last known permanent address. The McKinney-Vento Homeless Education Assistance Act reported 55 homeless children and youth enrolled in the Tustin Unified School District during 200fr07. 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, CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 54 2008 provides supportive services and is occupied by low-income persons with disabilities and certain other disabled persons. 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 to 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 HOMELESS ACCOMMODATION ZONING REGULATIONS Permitted/ Zonin Housing Type Conditionally Permitted g Transitional Home Permitted Planning Area 3 of MCAS Tustin Specific Plan Emergency Shelters Permitted Planning Area 3 of MCAS Tustin Specific Plan Planning Areas 1 and 3 of Supportive housing Permitted MCAS Tustin Specific Plan Community Care Facility All residentially zoned for six (6) or fewer Permitted properties Family care home, foster All residentially zoned home, or group home for Permitted six (61 or fewer properties ~ Includes congregate care facility, single room occupancy hotel, and children's intermediate care shelter Source: City of Tustin, MCAS Tustin Specific Plan CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 55 2008 The following are transitional homes that have been provided in the City at Tustin Legacy. 1. A 192 beds transitional home at the Village of Hope to be operated by the Orange County Rescue Mission. 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.2 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 dispersed 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 socio-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 Electrical 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 2 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 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 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, thexe 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 conditions 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 costs 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 57 2008 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 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 Iaw. T'he 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) Noise 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 58 2008 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 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 HTM-34, which illustrates the fees and exactions that may be assessed to a residential building development project in comparison to other nearby communities. These fees may be and have been waived by the City Council for projects where extraordinary benefits 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 Proposition 13. Recogruzing 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 Fee Charges Planning Fees Tustin Anaheim Costa Mesa Orange Envrronmental Initial Determination $95 N/A N/A $230 Ne alive Declaration $]25 N/A $910 $1,000 de osit EIR Processing-minor $2,500 $30,000 deposit Consultant cost $3,000 deposit EIR Processin -ma or $4,000 + 10% Plannin General Plan Amendment $985 $181.10/hr $3,OW plus $3,000 deposit ($12,000 deposit) $125/acre over 1 acre Zone Change $950 $181.10/hr $1,570 $1,000 deposit $10,700 de osit Tentative Tract Map $3,000 deposit $181.10/hr $1,160 $3,000 deposit $10,000 de osit Design Review $3,000 deposit $181.10/hr N/A $1,000 deposit $4,000 d sit Plarmed Develo ment Review N/A N/A $1,450 $1,000 de sit Conditional Use Permits and N/A $181.10/hr N/A N/A Variances $10,000 de 't ~nptneennQ ei ,u balvtst on 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 it N/A $500 Water Plan Check $106/unit $9.46/If N/A $54-$112/hr Stormdrain Plan Check $296.91/unit $9.46/]f $628.30/unit $20/unit Street Plan Check $296.91/unit $9.46/If $85/hr $20/unit Surface Draina a Plan Check N A $98-119/hr N/A N/A Gradin Plan Check 182/unit $98-119 hr $224/unit $30/unit tavttal raeitities etc Connections Water 6xtureunits $400 unit $663 unit N/A $300/unit Sewer fixture units $600/unit $2,360/unit $3,000/unit $75/unit Sanitation District Annex N/A $582/unit N/A N/A Drainage (one time fee to ra er $984/unit $1,000/acre $600/unit TransportationComdor $4,560-ZoneA $3,246-Zone B $2,725/unit $3,076/unit $3,176/unit Si al Assessment N A $88/unit N A N/A Park Facilities Fair Market Value of land 54,316.83/unit $10,875/unit $8,894 School Facilities Tustin, Santa Ana, and Irvine Unified School District $5,1245/unit (52.63/SF) 57,012/unit $4,600/unit $5,125/unit Oran eCoun Sanitation District $2,165/unit N/A N/A N/A ~ Comparative 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 are not included in this analysis Source: City of Tustin, 2008; Building Industry Association, 2006-07 Land Development Fee Survey for Orange _ Coun 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 standard 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 Committee. 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 chart and copies of pertinent information such as street improvement construction standards, 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 minimize development costs. Additionally, for projects of CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 61 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 goverrunental 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 ir- 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 (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 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 6 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 3 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 typica12,200 square foot, wood frame home would be at minimum $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 are most attributed to a reduction in land costs; when that cost is spread on a per unit basis. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 65 2008 This 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. Permits 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 OF 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 eservation Housin Assistance Income Grou Goal Actual Goals 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 City attempted to utilize 12HNA percentages to fulfill RHNA otgectives. Source: The City of Tustin, Housing Element, 200'1; Effectiveness of Housing Element 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 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 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 HTM-36 and HTM-37 summarize the performance of the 2002 Element's goals and objectives. The time 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 70 2008 housing as a percentage of total Orange County housing units. 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 Housing Element Objectives. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 71 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 72 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.1 Available Sites Community City General Assist in the development 1474 units 12 live/ work units Continue to utilize Planned Community Districts and Development Fund; of new affordable owner nearly completed Specific Plans to authorize and encourage mixed-use Department, Redevelopment and rental housing through developments (see Zoning Studies Program). Redevelopment Agency Funds; development in MCAS - Agency, City City and Agency Tustin and infill of 3,151 Housing Element Policies: 1.1, 1.8, 1.11 Council staff time units. involved 1.2 Mobile Homes Community City General As received No applications 10 new mobile home Continue to maintain the City's mobile home park Development Fund; processing received units/spaces created zone and process conditional use permit applications Department, City fees (Villa Valencia MHP) as received for manufactured homes. Council (recoverable) Housing Element Policies: 1.1, 1.3 1.3 Secondary Residential Units Community City processing 2 units 2 units completed Ordinance amending Continue to provide opportunities for affordable sec- Development fees (135 A Street - third zoning code to ondary residential dwelling units in the Single-family Department, City (recoverable) unit; 13635 Green process second Residential District lots where feasible through Council Valley Drive - residential units existing Zoning Ordinance provisions. second unit) ministerally adopted in 2003. Housing Element Policies: 1.1, 1.7,1.13 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 72 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 73 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.4 Deed Restrictions Community 1) Tax -Exempt Require appropriate deed 207 units Created a total of 243 Require appropriate deed restrictions to ensure Development Mortgage restrictions to ensure restricted units as continued affordability for low- to moderate -income Department, Revenue continued affordability for follows: housing constructed or rehabilitated with the Redevelopment Bonds low- or moderate -income *Tustin Field I - 78 assistance of any public or Redevelopment Agency Agency, City housing constructed or units funds as may be legally required. Council 2) Redevelopm rehabilitated with the *Tustin Field 11- 40 ent Agency assistance of any public or units Housing Element Policies: 1.1 Housing Redevelopment Agency *Arbor Walk - 10 Set -Aside funds as may be legally units Funds required. •Cambridge Lane - 36 units *Camden Plan - 37 units *Clarendon - 42 units 1.5 Pre -application Conferences Community City General Continue 11 projects 26 projects Continue to utilize procedures for pre -application Development Fund; conferences and processing procedures to expedite Department City processing permit processing. fees (recoverable) Housing Element Policies: 1.11 1.6 Permit Processing for Low- to Moderate Community City General Continue 11 projects 20 projects Income Housing Development Fund; Ensure that processing of permits for low- to City processing moderate -income housing are fast -tracked with low- fees to moderate -income housing permits being given (recoverable) priority over other permit applications. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 73 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 74 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.7 Permit Coordination Community City General Processing of 11 projects fast 26 projects fast Continue the services of the City's Community Development Fund; approximately 10 new tracked tracked Development Department as a central clearinghouse City processing residential projects with individuals assigned the responsibility of fees annually, 50 projects by expediting development permits required from (recoverable) 2005 various departments and agencies. Housing Element Policies:.1.11 1.8 Tax Increment Financing Redevelopment Redevelopment Assist 620 units by 2005 18 units for Very Low 19 units for Very Provide housing set-aside tax increment funds Agency Agency Housing Income households Low Income generated from the Redevelopment Projects, where Set -Aside Funds 44 unit for Low Income households, 14 units available, to assist in providing housing ac- households 1 unit for Moderate for Low Income commodations for low- and moderate -income households assisted households, 23 units households in rehabilitation or new construction through housing for Moderate Income projects. rehabilitation program households assisted through housing Housing Element Policies: 1.6,1.12, 3.2, 4.2 rehabilitation program. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 74 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 1.9 Housing for the Disabled Community State and Federal Refer individuals to 6 units were Require new multi -family housing units and Development programs; City's agencies providing requested to provide apartment conversions to condominiums to comply Department General Fund. supportive housing that for accommodation with State specifications pursuant to SB 520 for accommodates for the disabled accommodation of the disabled. The City will independent living. Add conduct analysis, add procedures, and/or undertake procedures and/or appropriate amendments to existing standards by undertake appropriate removing constraints through the adoption of a amendments to existing Reasonable Accommodation Ordinance to create a standards to ensure process in accommodating the disabled (to be adopted accommodation to the in conjunction with Zoning Studies/Program 1.21) disabled by 2003. and complying with Chapter 11 of the California Building Code (requires portion of multi -unit dwellings to be accessible dwelling units) to ensure accommodation for the disabled. Housing Element Policies: 1.13, 1.15 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 75 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Effectiveness Objective 1998-2000 2001-2008 1.10 Transitional Housing Various Non -Profit Variety of • Promote, assist, and 3 homes for a total of 3 homes for a total of Encourage the continuation of the Sheepfold homes Organizations, private funds; facilitate the 16 beds maintained 16 beds maintained and Laurel House in Tustin, which provide housing Redevelopment CDBG funds development of facilities for battered homeless women and children. Agency, emergency and 90 beds Orange These homes are located in single-family Community transients' shelters County Social neighborhoods and provide a much-needed service Development through continued Services Tustin for homeless women and children. In addition, Department support of the County Family Campus explore additional program options to assist in the Homeless Assistance facility designed for provision and funding for other programs such as Program abused and transitional housing and single room occupancy • Support local agencies neglected children housing. who provide homeless and their parents as services by providing well as for Housing Element Policies: 1.15, 1.16 financial assistance of emancipated youth approximately $5,000- shelter. $10,000 annually. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 76 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS ` 1998 2008 Program 1.11 Temporary Housing for Homeless The City will also support countywide efforts to assist approved homeless providers as part of the MCAS Tustin Reuse effort. Housing Element Policies: 1.14, 1.15 CITY OF TUSTIN TECHNICAL MEMORANDUM Responsible County of Orange, Redevelopment Agency Funding Source CDBG funds, HUD SHP funds 77 Objective • Provide 192 emergency housing units to single men and women by 2003 at Tustin Legacy (OC Rescue Mission). The City plans to assist 200 individuals by integrating counseling, education, job -training and other techniques to stop the cycle of homelessness. • Provide 24 units of transitional housing for families (Salvation Army) • Provide 6 units of transitional housing for women and children (Human Option -Dove Housing) • Provide 6 units- in long- term 12-24 months - transitional housing for families with children (Orange Coast Interfaith Shelter) Effectiveness 1998-2000 Prepared FY 2000-05 Consolidated Plan (Continuum of Care Plan included in Consolidated Plan. Applied and received $1,000,000 for OC Rescue Mission and $800,000 for transitional housing to be owned by the City at the MCAS - Tustin. HO • Construction of a 192 beds at the Village of Hope is nearing completion (OC Rescue Mission). • 6 new units at Tustin Field I (Salvation Army). • Acquisition of 16 units in Buena Park (Salvation Army). The City assisted in acquisition and contributed grant funds to acquire the units. • 6 new units at Columbus Grove (Human Options). • 6 new units at Columbus Grove (Orange Coast Interfaith Shelter). ELEMENT 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 78 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective • Provide 14 units of 14 new units at transitional housing to Columbus Grove - families with children Families Forward, who are homeless due to formerly Irvine a short or temporary Temporary Housing financial hardship (units are in Irvine (Families Who Care, but part of the formerly Irvine MCAS Tustin base Temporary Housing). closure homeless accommodation). Provide for a 60 -unit expansion of Orangewood Transitional Housing for children (to be operated by the County of Orange. 1.12 Implementation Program Redevelopment Redevelopment Review within legal time Reviewed within Reviewed within The Redevelopment Agency will review Agency Fund frames legal time frames legal time frames. Implementation Plan for each project area and Adopted Comprehensive Housing Affordability Strategy as Implementation Plan required by Redevelopment Law and adjust as for the Town Center necessary. and South Central Redevelopment Housing Element Policies: 1.12, 3.2 Project Areas for FY 2005-2006 to 2009- 2010. Currently in process of updating the Comprehensive Affordability Housing Strategy. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 78 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program 1.13 Housing Opportunities for all Economic Segments Monitor the implementation of the affordable housing program adopted as a part of the East Tustin Specific Plan. Housing Element Policies: 1.1, 1.8,1.9, 1.10 1.14 Bonding Programs Issue Redevelopment tax-exempt bonds, as necessary, to accomplish Five -Year Quantified Objectives with such issuance conditioned on having projects ready to move forward. Also utilize other housing revenue bond financing resources and Low Income Housing Tax Credits on new construction and acquisition/ rehabilitation projects that help meet the City's affordable housing needs. Housing Element Policies: 1.12, 3.3 Responsible Private Developers in East Tustin, Community Development Department Redevelopment Agency Funding Source I Objective City General I Monitor 174 affordable Fund; Staff time I units in East Tustin State and Municipal Bonds; Private Activity Mortgage Bonds Revenue issued by California Statewide Communities Development Authority and others; California Low - Income Housing Tax Credits; variety of other sources Complete analysis of available programs on as needed basis. Effectiveness 1998-2000 1 2001-2008 174 units in East Tustin monitored Processed 150 restricted units to low income (Orange Gardens - total 150 units) Processed 49 restricted units to low income (Flanders Pointe - total 82 units) 177 units in East Tustin monitored (72 units at Rancho Alisal, 54 units at Rancho Maderas, and 51 units at Rancho Tierra) Processed 53 restricted units for very low and low income through the County bonding program (Heritage Place - total 54 units) CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 79 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 80 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.15 Economic Integration within Sphere of County of Orange City General On going request to both 10 notices requested Influence Fund; Staff time agencies. Request that the Orange County Planning Commission and the Environmental Management Agency (EMA) notice the City of Tustin of any pro- posed development activities within Tustin's sphere of influence. Housing Element Policies: 1.1, 1.4, 1.5 1.16 Senior Citizen Housing Redevelopment Redevelopment Preservation of 100 at -risk A site on Sycamore 54 units for 100% Continue to identify sites that are suitable for senior Agency; Agency Housing and 60 new units by 2005. Avenue was affordable senior citizens housing projects. These sites will be promoted Community Set -Aside Funds; identified for a 60 apartments were for private development and applications will be Development HELP; Low- unit senior housing constructed made for any available subsidy funds. Department Income Housing project (Heritage Place at Tax Credits; Sycamore) Housing Element Policies: 1.1, 1.13,1.15 Private Activity Bonds issued by California Statewide and others 1.17 Senior Services Program Parks and City General Assist 850 elderly annually Assist 920 elderly Develop a comprehensive transportation program, Recreation Funds Annually case management, information and referral, and Department shared housing program. Housing Element Policies: 1.15, 2.3 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 80 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2fm CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 81 2008 Responsible Effectiveness 1995-2000 2001-2008 Program Agency Funding Source Objective 1.18 Recycling Single -Family Uses in R-3 Zones Community City General Respond to all requests for 1 additional unit at Density bonuses Into Multiple -Family Units Development Fund and density bonus per City 135 A Street were granted to Continue to encourage developers to consolidate Department Redevelopment codes. constructed Lennar as an incentive for the individual lots into larger cohesive developments. Agency Funds; of Density bonuses may be considered as an incentive to Staff time creation affordable units at consolidate lots. the Villages of Housing Element Policies: 1.11 Columbus 1.19 Ongoing Review of Housing Element Community City General On-going Reviews Reviews Programs Development Fund; Staff time accomplished accomplished. From the date of adoption of the Housing element, Department General Plan Annual Reports submitted to prepare an annual report to the Planning Commission HCD. assessing previous yearsaccomplishments toward meeting Housing Element objectives. Submit the Annual Report to the State HCD. Housing Element Policies: all policies 1.20 Consolidated Plan Community Variety of local, Prepare Consolidated Plan Prepared Prepared The City of Tustin shall prepare an update of the Development State, and in 2005. Consolidated Plan Consolidated Plan Consolidated Plan that provides a comprehensive Department Federal funding; Prepare Action Plan for FY 2000-05. for FY 2005-10. assessment of housing needs, a housing development City General annually Action plans Action Plans plan incorporating Federal, State and local public and Fund and prepared annually. prepared annually. private resources, and a one-year implementation Redevelopment plan. Agency Funds Staff time Housing Element Policies: 1.15,1.16,1.18, 2.1, 41, 4.2, 4.3, 4.4, 5.1, 5.2, 5.3, 5.4, 5.5 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 81 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 1.21 Zoning Studies Community City General Initiate Zoning Studies by Density Bonus Revised Density To facilitate the new construction goals of the 1998- Development Fund, January 2002 and complete Ordinance adopted Bonus Ordinance in 2005 Regional Housing Needs Assessment, the City Department Redevelopment any proposed amendment in 1999 compliance with intents to undertake zoning studies to consider new Agency funds in 2003. recent change in programs to encourage and promote affordable State Law. housing and recommend appropriate amendments for actions by the Planning Commission and the City Adopted a Planned Council. These studies include: Community District (1) Creation of zoning provisions which will to accommodate accommodate mixed uses in portions of the mixed use project in City, particularly in the Old Town Old Town (Prospect Commercial Area; Village). (2) Provide relaxation of certain development standards and incentives for projects which include affordable housing units upon City Council's approval; (3) Provide a process for individuals with disabilities to make requests for reasonable accommodation to relief from various land use, zoning, or other building rules, policies, and/or procedures of the City. Housing Element Policies: 1.1, 1.11 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 82 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 83 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.22 Private Streets City of Tustin None necessary Continue 69 private streets The City of Tustin has adopted standards for private created streets in new residential developments. To reduce construction costs, developers may be permitted to install private rather than public streets, wherever feasible. Housing Element Policies: 1.17 1.23 Building Codes City of Tustin, City General On-going '97 Plumbing, 2007 California The State of California has determined that the over- Community Fund; Staff time Mechanical & Building Codes riding value is the protection of the health and safety Development Building Code adopted of residential occupants. Continue to adopt the Department 1996 Electrical Codes Uniform Building Code pursuant to the state adopted directives and where local amendments are proposed to reflect local climatic, geologic or topographic conditions, and minimize, wherever possible, impacts on provision of housing. Housing Element Policies: 5.4 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 83 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 1.24 Site Improvements Community Developer Evaluate the use of special Converted portions Created assessment The requirement for the developer to construct site Development funded assessment district funding of public works districts at Tustin improvements often result in passing these costs on Department, at the MCAS -Tustin by assessment district Legacy. the housing consumer. These costs are reflected in the Redevelopment 2005 and its use in other bonds to fixed rate to cost of housing that eliminates an even greater Agency developing areas. lower costs. proportion of the population from financially received qualifying for the purchase of housing. The financing of public improvements by a special assessment district or community facility district on a per parcel benefit basis may enable a greater proportion of the market to qualify for housing. Assessment district financing has been implemented in the East Tustin area and is being used to pay for public improvements. The City will assess opportunities to utilize these public improvement financing techniques in newly developing areas such as MCAS Tustin and determine whether they are financially feasible. In creating any new assessment districts, an evaluation should be completed of the developer's activity to advance pay off bonds at the close of escrow. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 84 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 85 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.25 Fees, Exactions, and Permit Procedures Community City General On-going Fees waived for 1 Entitlement Consider waiving or modifying various fees or Development Fund; project application fees, exactions normally required where such waiver will Department, Redevelopment permits fees, and reduce the affordability gap associated with providing Redevelopment Agency Set- inspection fees for housing of the elderly and for very -low and low- Agency Aside Housing 192 beds transitional income households. facility at the Village of Hope (Orange Housing Element Policies: 1.11 County Rescue Mission) were waived. Certain building codes requirements were also waived and expired permits were reissued. The City also effectively provided construction management for the project. 1.26 Environmental Constraints Community General Fund; On-going 11 Negative Competed Final Continue to alleviate the necessity of delays in Development Private Declarations Program EIS/EIR for processing, and mitigating requirements incorporated Department, developer cost adopted; prepared a MCAS Tustin. into the development plans by requiring program Redevelopment recoverable draft and final environmental impact reports (EIR) on all major Agency Program Joint development projects whenever possible. EIS/EIR for MCAS - Tustin project Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 85 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 86 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.27 Density Bonus Program Community General Fund, Process all requests for Density Bonus 182 density bonus Promote Density Bonuses to facilitate the construction Development Redevelopment density bonuses. Ordinance adopted units granted to of affordable housing. Under State law, applicants Department Agency Housing 11/1/99; one Lennar/Lyon for the may file for density bonuses when projects Set -Aside Funds application creation of incorporate 20 percent of units for low-income affordable units at persons; 10 percent of units for very low-income units; Columbus Square or 50 percent of units for senior citizens. and Grove. Housing Element Policies: 1.11 1.28. MCAS -Tustin Redevelopment Project Area. Tustin Community Redevelopment Adopt MCA' ---Tustin Adopted MCAS Redevelopment Agency funds Specific Plan and Tustin Specific Plan The City anticipates the creation of a new Agency Redevelopment Project and MCAS Tustin redevelopment project area for MCAS -Tustin site Area Redevelopment through the adoption of a Specific Plan by the City Project Area. and a Redevelopment Project Area by Fiscal Year 2002-03. Housing Element Policies: 1.2;1.6; 1.8 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 86 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Responsible I Effectiveness Program Agency I Funding Source Objective 1 1998-2000 72001-2008 Goal 2: Equal Housing Opportunity 2.1 Fair Housing Community CDBG funds Assist approximately 400 2,289 1,541 complaints The City shall continue to provide housing counseling Development Tustin residents annually, complaints processed processed services to assure equal housing opportunities within Department, Fair 2,000 residents by 2005. the City. The City allocates approximately $15,000 Housing Council of annually for handling tenant/landlord disputes, Orange County housing discrimination cases, counseling, tenant rights, fair housing education, and education within the City. The City will continue to promote the fair housing educational resources offered by adding the services on the City's webpage, Code Enforcement brochure, and the Community Development directory. Housing Element Policies: 2.1, 2.2, 2.4 2.2 Shared -Housing TLC, Parks and CDBG funds Continue 25 cases 50 cases Continue to provide coordination and support to a Recreation Services home sharing program funded in part by the Department, and Feedback Foundation, Inc. as part of TLC Community (Transportation Lunch and Counseling) and the Development Orange County Housing Authority. Department Housing Element Policies: 2.3 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 87 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 2.3 Housing Referral Program Police Department; City General • 8,750 referrals to social 4,375 social services 4,850 social services Continue to provide housing referral services to Parks and Fund, CDBG agencies by 2005 referrals; referrals; 50 shared families in need of housing assistance and Recreation Funds 25 shared housing housing referrals information. This program consists of three City Department; • 50 referrals for shared referrals departments disseminating information to the public Community housing by 2005 at all times. Development; Redevelopment • The Police Department refers homeless people to Agency different agencies that provide shelters and food for various segments of the population. • The Parks and Recreation Services Department provides housing information and social service information to the senior citizen population. The Community Development Department and Redevelopment Agency provide housing and social service information to all segments of the population during regular city hall business hours. The Community Development Department also serves as a clearinghouse for the Community Development Block Grant Program and represents the City at Housing Authority and OCHA Advisory Committee Meetings. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 88 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS j c►Qq ,)nnsa %Judi J: V W 1IC1,111 i1u11,111 3.1 Condominium Conversions Responsible City General Impose requirements Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective City departments utilize the following documents and to condominiums to process a conditional use -permit, Department, City Redevelopment also make these documents available to the public: provide relocation assistance, and/or to provide Council, Agency Housing • Directory of Senior Citizen's Services prepared by incentives and assistance for purchase of the units by Redevelopment Set -Aside Funds the Area Agency on Aging Senior Citizen's Office low- to moderate -income households. Agency • Social Service Assistance Booklet prepared by Housing Element Policies: 3.1, 3.2, 3.3 Connection Plus • Orange County Housing Directory prepared by OCHA and the OCHA Advisory Committee. Housing Element Policies: 2.2, 2.3, 2.4, 2.5 Ongoing Review of Housing Element See Progam1.19 Programs Consolidated Plan See Program 1.20 %Judi J: V W 1IC1,111 i1u11,111 3.1 Condominium Conversions Community City General Impose requirements 14 units (Laguna No units converted Continue to require developers converting apartments Development Fund, where applicable. Gardens) to condominiums to process a conditional use -permit, Department, City Redevelopment provide relocation assistance, and/or to provide Council, Agency Housing incentives and assistance for purchase of the units by Redevelopment Set -Aside Funds low- to moderate -income households. Agency Housing Element Policies: 3.1, 3.2, 3.3 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 89 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Goal 4: Affordable Housing Preservation 4.1 Replacement Housing Responsible Redevelopment As necessary Effectiveness Program Agency Funding Source Objective 1998-2000 2001-2008 3.2 State Home -Ownership Assistance Redevelopment Redevelopment Assist 30 First time 8 first time No assistance The City's Redevelopment Agency provides a First Agency Agency Housing homebuyers by 2005 homebuyers assisted provided Time Homebuyers program utilizing housing set- from the market as part of a specific redevelopment Set -Aside Funds; developers by RDA program, aside funds. The Redevelopment Agency also applies project pursuant to California Community State and Federal not State for and will explore the use of other funding Redevelopment law. sources opportunities such as HELP, HOME funds, and other Housing Element Policies: 2.5 State and Federal programs. Housing Element Policies: 3.1, 3.3 Bonding Programs See Program1.14 Ongoing Review of Housing Element See Program1.19 Programs Consolidated Plan See Program1.20 Goal 4: Affordable Housing Preservation 4.1 Replacement Housing Redevelopment Redevelopment As necessary 56 units removed 30 units removed Ensure rehabilitation or construction of an equal Agency Agency Housing (replacement (replacement number of replacement units when low and moderate Set -Aside Funds; complete) complete) income residential units are destroyed or removed Private from the market as part of a specific redevelopment developers project pursuant to California Community Redevelopment law. Housing Element Policies: 2.5 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 90 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 14912 ?nnR CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 91 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 4.2 Housing Rehabilitation' Community CDBG and The City plans to 63 units assisted with 56 units assisted Allocate available CDBG and Redevelopment Agency Development Redevelopment Rehabilitate 100 units by RDA funds with RDA funds funds to finance public improvements and Department, Federal Agency Housing 2005. The City also plans to rehabilitation of residential units in target areas. Department of Set -Aside Funds increase homeownership Housing and Urban opportunities, conserve, Housing Element Policies: 1.2, 5.1, 5.2 Development maintain, and rehabilitate Redevelopment and promote conservation Agency of City's housing stock. 4.3 Housing Authority Orange County HUD, CDBG, Continue i developer contract No contract was Contract with the Orange County Housing Authority, Housing Authority, Redevelopment with OCHA processed where necessary, for the development and operation Redevelopment Agency Housing (Tustin Gardens) of federally assisted low- and moderate -income Agency Set -Aside Funds housing programs. Housing Element Policies: 1.5,1.16,1.17 4.4 Rental Assistance County of Orange HUD Issue 200 certificates/ 632 certificate/ Approximately 350 Encourage the availability of Section 8 rental Housing Authority vouchers annually -1,000 by vouchers issued certificate/ vouchers assistance certificates and voucher certificate program 2005. issued annually assistance funds through the Orange County Housing Authority. To encourage the maintenance of existing and establishment of new certificates, support the County's efforts to obtain continued Federal funding. Housing Element Policies: 4.1, 4.2 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 91 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 4.5 Affordable Senior Housing Project and Community None necessary Maintain 38 units of 120 units maintained 120 units maintained Senior Board and Care Facility Development affordable Senior Housing. (100 Tustin Gardens (100 Tustin Gardens To maintain 38 units of affordable housing for Seniors Department + 20 Mitchell) + 20 Mitchell) located at 17432-17442 Mitchell Avenue (20 units) and a senior citizen board and care facility in operation at 18 units maintained 1262 Bryan Avenue (18 units). (Bryan) Housing Element Policies: 5.1, 5.2, 5.3, 5.4 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 92 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Effectiveness Objective 1998-2000 2001-2008 .6 Preservation of Assisted Housing Tustin has four low-income housing projects with a Community Development • CDBG Preserve 100 units currently at greatest risk Monitored Tustin Monitored Tustin total of 100 units at risk of conversion to market rate Department, . Redevelopme Gardens and preserved all at -risk Gardens and preserved all at -risk in 2001. If project owners choose to convert the Redevelopment nt Housing projects to market rate housing, coordinate the Agency Set -Aside units units provision of financial and administrative resources to Funds, State preserve these units as affordable housing. and Federal Funds a) Monitor Units at Risk: Maintain contact with owners of at risk units as potential conversion dates . Low Income approach to determine whether Section 8 contracts or Tax Credits, affordability covenants have been renewed or are Private planned to be renewed. Discuss with the owner of the Activity .at risk" projects the City's desire to preserve the Mortgage units as affordable. Revenue Bonds b) Tenant Education. Work with tenants of at risk units in danger of converting. Provide tenants with • Variety of information regarding potential tenant purchase of other sources buildings including written information and any related workshops. Act as a liaison between tenants and nonprofits potentially involved in constructing or acquiring replacement housing. If existing staff is not able to provide adequate staffing for this program, provide outside consultants to support the program. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 93 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 94 2008 Responsible Effectiveness Program Agency Funding Source Objective 1998-2000 2001-2008 c) Work with Nonprofits. Work with nonprofit housing providers to explore and if appropriate, facilitate acquisition or replacement of at risk units. d) Reserve Fund. Earmark development housing set- aside funds to assist priority purchasers with the down -payment and closing costs associated with purchasing projects at risk. Continue to monitor other potential funding sources, such as State grants and HUD funds. Housing Element Policies: 4.1, 4.2, 4.3, 4.4 Mobile Homes See Program 1.2 Deed Restrictions: See Program 1.4 Tax Increment Financing See Program 1.8 Transitional Housing See Program 1.10 Ongoing Review of Housing Element See Program 1.19 Programs Consolidated Plan See Program 1.20 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 94 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Responsible I Effectiveness Program I Agency I Funding Source Objective 1998_2000 1 2001-2008 Goal 5: Neighborhood Conservation 5.1 Enforcement of Building and Housing Community City General Investigate 150 Approximately 1,800 4,285 code Codes Development Fund substandard housing cases code enforcement enforcement related Continue to enforce building and housing codes to Department annually and 750 cases by inspections were inspections ensure health and safety, rectify Code violations and 2005. conducted. conducted. thereby improve the overall character of the community. Enforcement will include identifying substandard housing units and those that are otherwise identified as a threat to the health and safety of occupants. Actions will be taken pursuant to the law to demolish, rebuild, or correct the code violations. This program includes notification of taxing agencies upon failure to gain code compliance from the property owner to allow City to recover enforcement cost. Housing Element Policies: 5.3, 5.4 5.2 CDBG Funds for Commercial Community CDBG Receipt of $20,000 Two projects Project is Rehabilitation Development annually, approximately completed (Rengel temporarily Continue to make applications for CDBG funds. Department $100,000 by 2005. and Heredia) suspended. Promote the availability of these funds for rehabilitation by newspaper articles, announcements in Tustin Today (a City publication that is mailed to all households) Housing Element Policies: 1.2, 5.1, 5.2, 5.3, 5.4 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 95 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 96 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 5.3 Cultural Resources District Community CDBG, City Rate historic structures 9 units rehabilitated 79 certificate of There are a large number of structures in the City that Development General Fund, where applicable and appropriateness were constructed before and after the turn of the Department State grants process 20 certificates of issued century. Continue to utilize the City's Cultural appropriateness. Resources Overlay District to safeguard the heritage of the City by preserving neighborhoods and structures that reflect the City's heritage and past. Through the District, promote the public and private enjoyment, use and preservation of culturally significant neighborhoods and structures. Continue to require that any alteration of a designated resource or construction improvements in the District conform to the requirements of the Cultural Resources Overlay District. Owners of historic landmarks or properties within the District are required to obtain a certificate of appropriateness before beginning any type of exterior construction, alteration, or demolition. A certificate of appropriateness certifies that the proposed changes are consistent with the design guidelines and are appropriate within the district context. Housing Element Policies: 5.5 Ongoing Review of Housing Element See Program 1.19 Programs Consolidated Plan See Program 1.20 Building Codes See Program 1.23 Goal 6: Environmental Sensitivity CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 96 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1999 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 6.1 Energy Conservation Community None necessary Require all new units 1,556 new units Require all new construction to be subject to State Development within planning period. required to meet energy conservation requirements (Title 24) as a Department state standards condition for the issuance of a building permit. Housing Element Policies: 6.2 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 97 2008 TABLE HTM- 37 PROGRESS TOWARDS OBJECTIVES 199&2008 CITY OF TUSTIN Quantified __ Unit Type/Description Objectives Accomplishments' Very Low Low Moderate Upper NEW CONSTRUCTION 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 Emergencyz 192 192 192 MCAS Tustin Transitional Family; 50 49 49 MCAS Tustin Social Servicesa 60 90 90 Granny Flats 10 0 New Owner Housing 432 953 17 l28 77 731 New Senior Housings 97 54 54 Density Bonush 160 182 Recycling of SFD to MFD 25 0 Subtotal 5,003 4,289 472 192 1,070 2,555 RHNA (1999) 3,298 694 489 778 1,337 Difference 1,705 (222) (297) 292 1,218 REHABILITATION Owner Occupied Housing 40 Rental Rehabilitation Loans/Grants 120 56 19 14 23 Multi-Family Acquisition/Rehab/ 100 Conversion/Resale Multi-Family Acquisition/Rehab/ 2W Conversion/ Rental Total Rehabilitation 460 56 19 14 23 PRESERVATION Rancho Alisal 69 69 8 61 Rancho Maderas 54 54 6 48 Rancho Tierra 51 51 38 13 Affordable Senior Housing -Mitchell 20 20 12 8 Senior Board & Care -Bryan Ave. 18 IS 18 Old Town Residential 29 Tustin Gardens 100 100 100 Total Preservation 341 312 164 148 OTHER AFFORDABLE HOUSING l+~ Time Homebuyer Down Payment Assistance Loans' 40 6 6 County Mortgage Credit Certificates " 0 Section 8 Rental Voucher Assistance 1,500 3,500 3,500 Shared Housing Referrals 75 50 50 CITY OF TUSTIN TECHNICAL MEMORANDUM 98 HOUSING ELEMENT 2008 TABLE HTM- 37 PROGRESS TOWARDS OBJECTIVES 1998-2008 CITY OF TUSTIN Unit T escri ion Quantified Ob'ectives Accom lishments' Ve Low Low Moderate U er Deed Restrictions y 620 243 70 64 109 Homeless Housing Partnership Program 242 Emergency Shelter'0 252 331 331 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 includes: 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 Park) -16 units. + Tustin Family Campus (Orange County Social Services Agency) - 90 beds 54 units at Heritage Place and 201 units at Monarch Village ^ 182 density bonuses granted to Lennar at Villages of Columbus ~ Temporarily suspended. s Program suspended. 4 Includes: Tustin Field I - 78 units; Tustin Field II - 40 units; Arborwallc -10 units; Cambridge Lane 36 units; Camden Place - 37 units; Clarendon - 42 units '~ Includes: 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 Park) -16 units. Sources: (1) Effectiveness of Housing Programs 1998-2008, City of Tustin; (2) Five Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas for Fiscal Years 2005-2006 to 2009-2010 CITY OF TUSTIN 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 HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 City of Tustin Comprehensive Affordable Housing Strategy Appendix B Affordability Gap and Leveraged financing Analysis February 15, 2008 Prepared for: City of Tustin Submitted By: David Paul Rosen & Associates Northern California David Rosen, Principal 1330 Broadway, Suite 937 Oakland, CA 94612-2504 Phone: 510-451-2552 Fax: 510-451-2554 e-mail: DavidmDRAConwltants.com www.draconsultants.oom Southern California Nora Lake-Brown, Principal 3941 Hendrix St Irvine, CA 92614637 Phone: 949-559-5650 Fax: 949-559-5706 e-mail: NoraODRAConsultants.com www.draconsultants.com Table of Contents PAGE 1.0 Executive Summary ....................... 9 2.0 Housing Prototypes ..................................................... ............................. 3.0 Financing Scenarios, Income Targeting and Affordable Housing Cost......... 9 9 3.1 Financing Scenarios ................................:........................................... ................ ... l 9 . s ....................................................... 3.2 Target income Leve 3.3 Affordable Housing Cost Definitions .................................................... 12 3.4 Occupancy Standards ......................................................................... ~- 12 5 Utility Atlowances ............................................................................... 3 13 . 3.6 Affordable Net Rents and Affordable Monthly Housing Cost ................ 14 . : 16 ......................... ......................... 4.0 Development Costs:....:..:........: .......:...... 4.1 Developer Interviews, Rental Housing Development ........................... 16 4.1.1 Jamboree Housing ......................................................... ......... 16 4.1.2 Keyser Marston Associates ........................................................ 17 4.2 Developer Interviews, Owner Housing Development .......................... 17 4.2.1 Springbrook Advisors ................................................................ 18 18 4.2.2 Nevis Homes ............................................................................ 4.2.3 The Olson Company ................................................................. 18 4.2.4 Keyser Marston Associates ........................................................ 18 19 4.2.5 CIM Group ............................................................................... 4.2.6 William Lyon Homes ................................................................ 19 4.2.7 Sun Cal Companies .................................................................. 19 4.2.8 John Laing Homes ...................................................... 19 4.3 Land Acquisition Costs ........................................................................ 20 4.4 Development Impact Fees ................................................................... 21 4.5 Hard Costs and Site Improvement Costs .............................................. 24 4.6 Estimated Total Prototype Development Costs ..................................... 25 5.0 Operating and Financing Cost Assumptions ............................................... 26 5.1 General Operating Casts, Rental Prototype .....•••••••••.••••--•~••••••••••••••••••• 26 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 Calculations ................................. 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 Tai;les Attachment C: Leveraged Financial Analysis, Renter Prototype City of Tustin Affordability Gap and Leveraged Financing Analysis Page li List of Tables TABLE PAGE 1. Homeowner Per Unit Subsidy Requirements .............................................. 4 6 2. Tenant Per Unit Subsidy Requirements ....................................................... 3. Average Per Unit Subsidy Requirements, Leveraged Financing Scenarios ...:............................................................................................. 8 4. Owner Housing Prototype Projects ............................................................. 10 5. Rental Housing Prototype .......................................................................... 11 fi 12 6. nitions .......................................................... Affordable Housing Cost De 7. Current Monthly Utility Allowances, County of Orange .............................. 14 . :: 15 8. ....... Affordable Net Rents ...:..................................................................... 15 9. Affordable Monthly Housing Cost .............................................................. 10. Tustin Legacy Comparable land Prices ...................................................... 20 11. Per Unit Land Acquisition Cost Assumptions by Prototype..........•...•••••••••••• 21 12. Development Processing and Impact Fee Assumptions, Owner Housing Prototypes ............................................................................................. 22 13. Development Processing and Impact Fee Assumptions, Rental Housing Prototype .............................................................................................. 2 3 14. Per.Net Square Foot Hard Construction Cost Assumptions by Prototype ..... 25 7 5. Estimated Prototype Development Costs, Owner Housing Prototypes......... 27 16. Estimated Prototype Development Costs, Renta! Housing Prototype........... 28 1 y. Development and Financing Cost Assumptions, Owner Housing Prototypes .................................................................................... 30 18. Development and Financing Cost Assumptions, Rental 31 Prototype .............. .............................................................................. .... 19. Income Targeting Assumptions for Leveraged Financing Scenarios ............. 33 20 Construction and Permanent Sources and Uses, Leveraged Financing . Analysis, Renta! Housing Prototype ....................................................... 35 Ciry of Tustin Affordability Gap and Leveraged Financing Analysis Page iii City of Tustin Affordability Gap and leveraged financing 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 options for new residential development in Tustin. The "affordability gap" methodology determines the difference between the supportable mortgage on the unit at affordable rents and sales prices and the actual development cost 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 10096 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 Redevelopment Agency for capital pianning 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 pro>7~ .. The t'trst 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 by 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 1 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 mo ge supportable by net operating income from restricted rents. For owners, the gap ise difference between development costs and the supportable 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 ~aps for the owner prototypes 'are summarized in Table 1. The gaps have been calcu ated for the following three income levels:. Affordable Income Limit Housing Cost 1. Very Low Income 509'0 of Anna Median Income (AMI), adjusted for household size 30% of 50% AMI 2. Low Income 80% of AMl, adjusted for household size 30% of 70% AMI 3. Moderatie Income 120% of AMI, adjusted for household size 35% of 110% AMI Depending upon 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 (AMI), 30% of 50% AMI adjusted for household size 2. Low Income 80% of AMI, adjusted for household size 30% of 60%AMI 3. Moderate Income 1209'0 of AMI, adjusted for household size 30% of 110% AMI DRA produced, under separate cover, a comprehensive review of Federal, State, and private sources of funding that might be used bo subsidize affordable rental and ownership housing in Tustin. For ownership housin~ per unit mortgage assistance, as available, genera y reduces the gap on a dollar for do lar 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. 99'o Low Income Housing Tax Credits (Federal only); 2. 4% tax credits with tax-exempt bonds; 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 Develop Area (DDA) by HUD in ?007, projects in the County are eligible fora 13096 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 Ttr:dn 2008 Prototvne/Unit 64droom Count Owner Prototype #1' Attached Townhome 'Tiro Bedroom Throe Bedroom Four Bedroom Average Owner Prototype tlZs Stacked Flat Condominium One Bedroom Two Bedroom Thn~e Bedroom Four Bedroom Average Owner Prototype !t3' High Density Condominium One Bedroom Two Bedrooom Thnse Bedroom Four Bedroom Average Owner Prototype #4' Mixed Use, Ground Floor Retail One Bedroom Two Bedrooom Three Bedroom Average Very Low Low Moderate Income' Income' Income' ;366,000 5322,400 5195,500 5387,800 5339,400 5198,400 ;426,800 ;374,600 5222,300 ;393,500 5345,500 5205,400 ;258,600 $219,900 S107,100 S259,000 ;21 S,S00 588,600 $267,100 ;218,800 ;77,800 ;290,500 ;238,300 $86,000 ;268,800 $223,100 589,900 ;407,500 5368,800 ;256,000 5432,500 5389,000 5262,100 5542,000 5493,700 ;352,600 5569,400 5517,200 5364,800 $487,900 $442,200 5308,900 ;491,700 $453,000 5340,200 5537,400 5493,900 5366,900 5595,000 5546,600 5405,600 5541,300 ;497,800 5370,900 Source: David Paul Rosen & Associates City of Tustin nffordabiliry Gap and Leveraged Financing Malysis Pager 4 Notes to 7ab(e 1: 'Per unit subsidy requirements are calculated as per unit total development cost less affordable home purchase price, based on an occupancy 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 arse based on the following assumptions: 30-year mortgage interest rate of 8 percent; average property tax rate of 1.20 percent; property inwrance costs of S50 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 percent 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 70 percent of AMI, adjusted for household size. Average low income affordable home purchase price is 5116,457. 4 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 5249,723. 'Owner Prototype ~1 average unit size is 1,296 square feet. Average per unit development cost is $468,663. Per unit development costs arc adjusted by unit size/bedroom count. `Owner Prototype x2 average unit size is 1,142 square feet. Average per unit development cost is 6339,591. Per unit development costs are adjusted by unit size/bedroom count. ~ Owner Prototype x3 average unit size Is 1,350 square feet. Average per unit development rnst is 5558,617. Per unit development costs are adjusted by unit size/bedroom count. ° Owner Prototype J~4 average unit size is 1,515 square feet. Average per unit development cost is 5608, 712. Per unit development costs are adjusted by unit size/bedroom count. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 5 Table T Tenant Per Unit Subsidy Requirements' Rental Housing Prototype: Stacked Flat Apartments City of Tustin 2008 Renter Prototype Stacked Flat Apartments Very Low Low Moderate Unit Bedroom Count Income= Income Income4 One Bedrooms 5311,300 $294,600 5211,400 Two Bedroomb 5348,000 5329,300 5235,600 TF-ree Bedroom' $321,800 $301,000 $197,000 Four Bedroom° $402,000 $379,600 $174,800 Average 5345,775 $326,125 $204,700 Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged 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 5300, 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 one, per California Redevelopment Law. 2 Very low income renter affordable housing cost is calculated as 30 percent of 50 percent of AMI, adjusted for household size. Average very law income affordable monthly rent is 5847. ' low income renter affordable housing cost calculated as 30 percent of 60 percent of AMI, adjusted for household sire. Average low income affordable monthly rent is 51,033. ' 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 51,963. s One bedroom unit is 750 square feet. Per unit total development cost is 5321,075. ~ Two bedroom unit is 950 square feet. Per unit total development cost is 5362,224. ' Three bedroom unit is 1,050 square feet. Per unit total development cost is 5382,799. ° Four bedroom unit is 1,250 square feet. Per unit total development cost is 5423,947. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 7 Table 3 Average Per Unit Subsidy Requiremenb Rental Housing Prototype Stacked Flat Apardnenb Leveraged Financing Scenarios City of 1Lstin 2008 Leveraged Financins Scenarios 996 Tax Cndib 496 Tax Credits, Tax-Exempt Bonds 4% Tax Credits, Tax-Exempt Bonds, Multi-family Housing Program (MHP) Source: David Paul Rosen b Associates. Renter Prototype Stacked Flat Apardnenb X57,000 5140,100 s l 09,600 City of Tusdn Affordabiliq Gap and leveraged FinancingMalysis Page 8 2.0 Housing Prototypes Tables 4 and 5 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 residen# 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 3.7 Financing Scenarios DRA first modeled the owner and renter housing prototypes under a conventional 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/tenant income level. In the leveraged financing analysis, described in Section 7.0 below, we model the renter housing prototype assuming use of the Low Income Housing Tax Credit and tax-exempt bond programs. 3.2 Target 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 AM1. 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 $78,700 for Orange County. City of Tustin Affordability Gap and leveraged Financing Analysis Page 9 Table 4 Owner Hous~irrg Protatgpe Project City of Tulmt 1008 PROTiO~iYPE Owner 1 Attac-edTownhome Owner 2 Stacked Flat Cortdornintum Owner 3 High Density Condominlum Owner 4 Maed Usq Ground Floor tZetaii UNIT COUNT 234 Units 325 Units 400 Units 20 Units ZONING R3 t0 PC C2 P NUMBER OF S1fOR1ES 2S Stories 2 Starks 4 Storks 3 Stpries a stone: rte>;ida CONSTRUCTION TYPE Type V Type V Type V Type V Wbod Frame Wood Frame Wood Frame Mrood Frame DENSITY (DU'S/Acre) t8.0 25.0 45-50 29.0 F100RAREA RATIO (FAR) 0.5 0.7 1.5 1.5 LAND AREA Utl~ 13.00 Akxes 13.00 Aaes 8.00 Acres 0.69 Acres UNITS BY BR COUNT One Bedroom 0 75 100 4 Two Bedroom 90 100 125 6 Throe Bedroom 90 100 125 10 Four Bedroom 54 50 50 0 UNIT SIZE Wet Sgwre Feeq One Bedtbom WA 950 1,000 1,100 Two gledroom 1,050 1,050 1,150 1,400 ~~ g~~ 1,3D0 1,200 1,650 1,750 Four Bedroom 1,700 1,500 1,800 WA AvRye Square Feet 1,296 1,14? 1,350 i,5i5 BLDG. SQ. FEET Net Liv6sB Aron 303,300 371,250 540,000 30,300 Carennutity Space 2.~ 2,000 0 0 Total Nc181d6. Square Feet 305,800 373,250 540,000 30,300 TYPE OF PARKING Garage Carport Parking Structure Garage NO, OF PKG. SPACES Garage 468 0 0 40 Carport 0 650 0 0 Opp 59 82 100 1 D teukbsg Structure 0 0 700 0 TOTAL SPACES 527 732 800 50 City ofTUStin Page t0 AHgd~bilfty Gap and l ~varaged Flouncing Analycs Table s Rcalal tioarina Prototype City of'Rtstin 200E ~~~ Ramer Prototype Stacked Flat UNR COUNT 325 Units T~ ~ PROOUtT Stacked flats ZONING ~ NUAItiER OF STORIES 2 CONSTRUCTION TYPE TypeV Wbod Frame DENSITY (DU'S/AaRI 25.0 F[.OOR AREA RAT10 (FAIL) 0.6 tJ1ND ARFJ1 Nr.~ T 3.00 Acres UNITS iY RR COUM Orte Redroon 73 Two Redraom 100 Three Yedroom 100 ~' i0 ManaRer'i Unib (I~vo Eeekaota) y UNIT SIZE (Net Sgwire Fut) Orre ~-~ 750 Tiiw Redraao ~ 950 Thttex ~~ 1.050 Fatr tiadr+oam .i,Z50 Arrrap SQwrc Feet 9d2 Rt.DC. s~ Fir Net LlrinjArK 3T9,150 ComrwrkY ~ 0 Total Net RIdE, Squire Feet 319,1 SO TYPE OF PARKING Parkin8 Struaurc NO.OF PARKING SPACES ~aRt 0 Carpal 0 Open 81 Parking Struclurc 650 TOTAL SPACES 731 Cky olilnUn AICwJaWINy Gap Ord LaNnged flruneirra A^+IY+Is Page i 1 3.3 Affordable Housing Cost Definitions Calculation of the affordability gap requires defining affordable housing expense for renters and owners. Table 6 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 Oefini8ons City of Tustin Income Level of OccuR n~ Extremely low income (30% of AMI and below) Very low income (greater than 30% to 50% of AMl} Low income (greater than 50% to 80% of AMI) Moderate income (greater than 80% to 7 20% of AMI) AMI =Area Median Income 3.4 Occupancy Standards T~pgQf Housing Renta[ Ownership Not Analyzed 30% of 50% AMI 30°10 of b0% AMI 30% of 110% AMI Not Analyzed 30% of 50%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 Tustin Affordability Gap and Leveraged Financing Analysis Page 12 3.S Utility Allowances Allowable affordable net rents are calculated by subtracting allowances for the utilities paid directly by the tenants from the gross rent (or affordable housing cast). 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 t, 2006 provided by the County of Orange, Housing and Community Services Department, summarized in Table 7 below. The rental gap analysis assumes that the resident pays utilities (assumed to include basic electric and electric heating, cooking and water heating), It assumes the landlord pays 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. Actuaf 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 require electricity or gas. City of Tustin 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 Monthly Utili Allowancet 1 Bedroom $54 2 Bedroom X68 3 Bedroom S98 4 Bedroom x109 Owner Households Bedroom Size 1 Bedroom $93 2 Bedroom $110 3 Bedroom $148 Source: County of Orange, Housing and Community Services, effective October 1, 200b. 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). 2 Includes electric utilities (heating, cooking, water heating and basic electric) and water, trash and sewer. City of Tustin Affordability Gap and leveraged Financing Analysis Page 74 Table 8 Affordable Net Rents Cty of Tustin 2008 Unit Size (No. of Bedrooms) Very Low 5096 AMI Low 80°~ AMI Moderate 12096 AMI 1 Bedroom $733 $890 $1 677 2 Bedroom $817 $994 1 880 3 Bedroom $88b 1 083 2 066 4 Bedroom 953 $1 166 2 228 Table 9 Affordable Monthly Housing Cost ~ cty of Tustin 2008 Unit Size (No. of Bedrooms} Very Low 5090 AMI Low . 80% AMl Moderate 120°6 AMI 1 Bedroom 787 $1 102 $2 020 2 Bedrooms $885 1 240 2 272 3 $edrooms $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, adjusted proportionally for 6096 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 30% of gross income spent on rent and then deducting the utility allowances from Table 7. T California 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 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. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 15 4.0 Development Costs Development casts include: land acquisition, hard costs, hard cost contingency, on- and aff--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. Development 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 costs: ~ ~ . • Laura Archuleta, )amboree Housing • Jerry Trimble and Michael Wong, Keyser Marston Associates 4.1.1 Jamboree Housing 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- sty[e, 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 projecL~' timing, which can vary costs based on cost fluctuations in the market. In 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 8155 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 Gty of Tustin Affordability Gap and Leveraged Financing Analysis Page 1 b to $342 per square foot for this product, with the average cost at $239 per square foot. The prevailing wage bids average $270 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 deve{opment costs: • Tom Sakai, Springbrook Advisors • Scatt Young, Nevis Homes • Scott Newcomb, The Olson Company • Jerry Trimble and Michael Wong, Keyser Marston Associates • Justin Rime1, CIM Group • Tom Crable, William Lyon Homes • Ian Vickers, Sun Cal Companies • Steve Kabel, John Laing Homes Below we review the results of these interviews and detail the 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. ~iryor iusurt Affordability Gap and Leveraged Financing Analysis Page 17 4.2.1 Springbrook Advisors Springbrook Advisors represents Lennar and Lyon Homes on development projects throughout Southern California. In 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. 4.2.2 Nevis Homes Nevis Homes has recently developed a 93-unit townhome project in the Tustin anaa. 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 DRA with development cost estimates for the four owner prototypes, based on the company's development experience in Orange County. For Owner Prototype #1, Attached Townhomes, Olson estimates $78 per square foot in hard costs. For Owner Prototype t2, Stacked Flat Condominiums with podium parking, hard costs were estimated at $82 per square foot.. Olson also estimates $115 per square foot hard costs and a $21,000 to $27,000 cost per parking space for Owner Prototype #3, High Density Condominiums. For Owner Prototype #4, Mixed Use Condominiums, Olson 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 Affordability Gap and Leveraged Financing Analysis Page ~ 8 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 $30 per square foot for parking construction. For a townhouse product with 13 dwelling units to the acre, they estimate hard costs at $96 per square foot. A mixed use, Texas Wrap style project with 75 dwelling units to the acre is estimated to have $119 per square foot hard costs with additional $35 per square foot costs for parking construction. A!( of KMA's prototypes assume soft costs to be equal to 18.5 percent of hard costs. 4.2.5 C1M Group The CIM 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 $140 per gross square foot for hard costs, with additional costs of $25,000 per at-grade structured parking space to $35,000 per below-grade structured parking space. 4.2.6 William Lyon Homes William Lyon Homes is currently developing a 102-unit mixed-income housing project on the Columbus Grove site of Tustin Legary. 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 $76 per square foot, inclusive of two-car garages within the building envelopes. The land cost for this project was $133,000 per unit or approximately $79.50 per square foot. William Lyon Homes is also developing a 156-unit development of townhomes and flats, with a mix of market rate and affordable units. This project's hard costs are $98 per square foot and~the land cost was $72,600 per unit or X32 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 $95 to $99 per square foot. Site improvement costs vary widely by site and so Sun Cal could not provide an estimate of typical site improvement costs. Sun CaI Companies is also familiar with stacked flat and mixed use developments in the Tustin area. These projects have hard costs ranging from $90 to $l 10~per square foot, with the higher costs associated with projects that have more than three stories. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 19 According to Sun Cal's experience, high density housing developments built in the wrap design, with buildings surrounding at grade parking have hard costs around 5200 per square foot while those with podium parking have hard costs around $225 per square foot 4.2.6 John 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 S84 and S87 per square foot. In Irvine, developers are most commonly purchasing partially-finished lots, according to Mr.~Kabel. 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 Reppoort 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 examined in this study. The land prices and density of these parcels are shown in Table 10 below: Table 10 Tustin Legary 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 16.3 units/acre No. 9 S47 /SF 16.2 units/acre No. 9A $33 /SF 16.2 unitsJacre Average $45 /SF 16.3 units/acre Ciry of Tustin Affordability Gap and leveraged Financing Analysis Page 20 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 [and 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 #7 Attached Townhome $109,000 $45 Owner #z Stacked Flat Condominiums $75,000 $43 Owner #3 High Density Condominiums $52,000 $~ Owner #4 Mixed Use Condominiums $90,000 $60 Renter #1 Stacked Flat Apartments $70,000 $43 Source: Dataquick Information Systems; City of Tustin; DRA interviews of Tustin area developers. 4.4 Development Impact Fees Development impact fees for new residential development in the City of Tustin include Orange County Sanitation District fees, East Orange County Water District fees, Transportation Corridor Agency fees, Tustin Unified Schoo[ 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. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 21 >~ 7s D~,Iopnsatt pseceashtt and Mpact Fee Aaiuntptiorts owner tioesing reotohP~ Illy of7Yss6a ~9a PrOCxype t4: Pnfsotype tl: Pfotptype t2: Prototype t3: Mized Use ABached Stat:lad Flat High Density Ground Floor Number of Urdu prangsCounlySanitationDktrlct East p~~ ~ Vlfaler DbMct ~ ~~ w...nn.w,o 234 Unks 51,026,018 (117,000 739,564 !1 902 2 325 Unix (1,296,025 5162,500 1054 950 13 475 -- 4p0 Uniu 51,57000 (200.000 Si 40D 700 20 Un9s f78,300 f10.000 554 920 1 ~ ~~ ~~ ~~ ~~ ~~ ~~ f6 P drdknh,ry WQ-vIP Q fits p~nl 514,000 514,000 512,(100 Hail Map f6'ooD 56J000 56,000 35,2 publk knproYenKnts 518,000 S18p00 (15,000 (6,600 51 792 11Vatrr 4~xY M~B~M Plan SS1000 55.000 , ~,~ Gtttdir~ p~ 512,000 ('12.000 51Q,000 53.100 RMmt y 10 6S 1D 000 6S 000 7 3 3630 527 f92 Subbtd NlDrks Serrkes 30 f0 50 (1,320 ~~~ 000 (3 53,000 53,000 57,980 Design ftevilw , 000 33 (3,000 53,000 (1,910 1hctMep , S1 33S 51,335 51935 51e1 HnalTwctMrp , SO 50 SO 57.'~ Cddklonal Uie Rem9 333 57 333 51 50 ~ EfnrkoirrNfti Impact Report Fee , . 50 5725 SO NegMtia ~~ fa 060 59 59,060 (6,273 5690 Precise Ctrs PamtM Feu . ~~ ~ PlnNt Fedi 5125,00 St 58,~ 5192,500 (6,336 New Constnscttat fee 819 564 5'18,955 (113.969 53,398 ~~ FlsltrYt ~ Plemi+~ ~~ Gheek ~ , (9,080 f11,054 (15,956 (476 SutldingPlinCherk 145,401 355,258 (79,778 52,378 planning hspection Fae 512,972 515,791 522.794 5680 S23 ~~~~~ S35 u 535 116 53 535 54,532 5182 ~~ Motlon ~~ p~ FN 415 522 , 522.415 522,a15 (14,794 pM~ ~ MadHnlCil P~smd ~ , 510,460 515,791 518,550 5655 ~ pyn Eck ~ (5,230 336 (33 (7.993 535,733 59,275 W.453 5333 51,730 Pkrnbing paw ~ ~~PSanC7NKk~ , 514,668 S77,867 (22,726 5865 455 51 pmn~ ~~, ~ Autiwrity lnperxlon Faa 533,300 523,530 f14,480 , ustin Unlfled Sd-ooi DWrid Fem - Leve12 52,050,308 52909.650 53,650,400 5736.186 ~~ ~ S 2.961,464 S 3,956,882 5 6,795,360 5282,896 BnTnroportation System knpnovdrbnl S1 787 400 5110 589 43 36,52 1 iS 626 ,fS7 197 Su6exd ,~ 57 54 6 !96 f 5760 9 537 D par lhaK 164 J 3~! (1) Indudes feu asioclited wRh residerKial ~portlon d deueloprttent cnl F%fees assessed per PmJ~~ nltxtWlons assorts residentW portion d ptaect b: Sources Ctty dTustin Community Development Dapstment planting Divisbn,74stM Community RBdevrJolxnent A®enq, Clry dTustin public WorlatlEnglneaG~g Departrne!x. Dsvld Raul Rosen b Associates. uA}6ndrblillN ~P and twereged Fvuneiry Anah'4s ~ Page 22 Table 13 Development Prot~a:ing and impact Fee Af:tallptiona Rer~! lioudng Prototype City of Tu:tbt 200E Rental Prototype f1: Stacked Flat Number of lJnles - - - 325 Units Orange County Sanitation District 1,133,154 Earsi Orange County Water Dsstrlct 5162,500 Trans Corridor 5613 925 S 1909,579 ~~ tteview ~ Map, study, preliminary WQMP & rise plan} 514,000 Final Map :6.000 Public Irrrprovenrerrts 518,000 Weser QualRy Management Plan Ss,000 Procbe Grading Plan 612,000 Pem,it b on 610,000 Subfndt/ (~ 65 000 D~evdoprtierrt Agreement S0 Design Review S3AOp TerrLtlwTract Map 50 Firm) lied M~ SO Conditional.Use Permit SO ~~~~ ~ 57,333 Negative Declaration SO Precise Grading Ptrrrnit Fees 59,060 Public Improvements Permft Fees 69,060 New Construction Fee 5158,950 Bvll~ng PtmrR Fee 560,677 Planning Plan Check Fee 58,495 Building Plan Check 541,474 Planning InspeWon Fee 512,135 Building bseartoe Fee S35 Strong Motion Instrtrnerrtation Program Fee 52,377 Electrical Plermtt Fee ;22,415 McCFIfntCal Permit Fee 512,188 Mechankal Plan Check fee 56,094 Plumbing P~errrtlt Fee 528,268 Plumbing Plan Check Fee 514;134 Orange County>ireAuthority Inspection Fee 518,100 Tustin Unified Schopl District Fees - level2 52,157,454 Quimby fee 53,956,882 Tustin7ren temlm rvves~entPro m 50 Subtotal S6 340 729 Total Sit 15 08 A PMr Unit ~5 6 Source:. City oflirsttn Community Development Department Planning Division, Tustin Community Redevelopment Agenry, City of Tustin Public Worla/Engineering Department, David Paul Rosen & Associates. Crty of Tustin Afbrdabil}ty t:wp and t.everaged financing Analysts 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 building 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 improvement costs can also vary widely depending upon the extent of existing infrastructure and unique site conditions. For the affordability gap analysis, we model the prototypes assuming a market 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% for 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. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 24 Table 14 Per Net Sgaare Foot Hard Construction Cost Assumptions by Prototype City of Tustin 2008 Prototype Hard Construction Cost Per Average Site improvement Net SF Buitdin Area Cost Per Net SF Site Area Owner #1 $95 $25 Attached Townhome Owner #2 $85 $20 Stacked Flat Condominiums Owner #3 $195 $30 High Density Condominiums Owner #4 $155 $20 Mixed Use Condominiums Renter a71 $155 $20 Stacked Flat Apartments Source: DRA interviews of Tustin area developers. 4.6 Estimated Total Prototype Devebpment 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, property taxes and insurance. General conditions include items such as the trailer, utilities, 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 12% of total development costs, based on DRA experience and input from developers and the Building Industry Association. This level is considered a baseline profit or "hurdle rate," representing the minimum necessary fvr the City of Tusti n Affordability Gap and Leveraged Financing Analysis Page 2S 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 housing, developer profit is typically measured as a percentage of gross sales revenues (typically 7 - -9 percent), rather than total development cost. However, this measure does 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 retum 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 temp 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 calcutated as a percentage of total development cost For example, the Low Income Housing lax 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 i 6 for the renter prototype. The key development cost assumptions used in the analysis are specified in Table 17 and Table 18, referenced below. 5.0 Operating and Financing Cost Assumptions 5.1 General Operating Costs, Rental Prototype Annual operating costs are estimated at 53,600 per unit for the gap analysis, excluding property taxes and reserves, based on interviews with Coca[ apartment owners and property managers and DRA 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% 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 Mixed Use, Townhome Condominium Condominium Ground Floor Gross Site Area in Acres 13.000 13.000 8.000 0 689 No. of Units Parking Spaces 234 325 400 . 20 Net Square Feet Living Area 527 303,300 732 371,250 800 540,000 50 30 300 Community Space SF 2 500 2000 p , 0 Total Net Square Feet Residential 305,800 373,250 540,000 30 300 Percent Residential Total Gross SF Bldg. Area 10096 305,800 100°k 373 250 10096 540 000 , 669'0 45 90 , , , 9 Land Acquisition Costs $25,482,600 $24,350,040 520,908,800 $1 188 000 Site Improvements Building/Parking Hard Costs $14,157,000 29 $11,325,600 St0,454,400 . , $396,000 Hard Cost ~ontingenry $ ,051,000 $2,160,400 $31,726,250 $2,152,593 $1.05,300,000 $5,787,720 $4,696,500 $254 625 ArchJEngJConstr. Supervision $1,296,240 $1,291,556 53,472,632 , $752 775 City Development Impact/Processirig Fees S7,404,546 S9,514,995 St 5,937,526 , $750 609 Construction Loan Fees $919,647 $928,754 $1,859,558 , $106 483 Construction Interest $6,644,448 $6,710,244 511,457,346 , ;2,516 665 Environmental Phase 1 $7,500 $7,500 $7,500 , 57 500 Soils Testing $40,000 540,000 $40,000 , $20 000 Property Taxes $259,248 $258,311 5694,52b , $30 555 Insurance Sales Commissions $1,296,240 $1,081,937 $1,291,556 51,092,b51 53,472,632 $2,187,715 , $152,775 $125 274 Selling~Closing Costs 55,409,687 $5,463,256 510,938,576 , $626 371 Developer Overhead 54,327,750 $4,370,605 $8,750,861 , $501 097 Developer Profit 58,655,499 $8,741,209 $17,501,721 , 51,002,194 TOTAL PROTECT COST $108,193,743 $109,265,118 $218,771,513 $12,527,424 PER UNIT 5462,366 5336,200 $546,929 5626,371 PER NET SF 5353.81 5292.74 5405.13 $413.45 TOTAL COST, iIXCLUDINC LAND ~ ' 582,711,143 584,915,078 $197,862,713 $11,339,424 PER UNIT $353,466 $261,277 $494,657 $566,971 PER NET SF 5270.47 5227.50 $366.41 $374.24 City of Tustin Affordability Gap and Levvaged Financing Malysis Fdge 27 Table 16 Esdmated Prototype Development Costs Rental Housing Prototype: Stacked Flat Apartments City ofTiutio X008 Renter Prototype Stacked Flat Apartmerr~ Acres 13.000 Number of Units 325 Parking Spaces 731 Net Square Feet Cluing Area 319,150 Total Net Square Feet 319,150 Ratio NetlGross SF 100°l6 Total Gross Square Feet Building Area 319,150 Land Acquisition 524,350,040 Site Improvements $11,325,600 ~~.~~ ~. BuildinB/Parking Hard Costs - - 549,468,250" Hazd Cost Contingency 53,039,693 ArchicfieclurelEngineering/Constr. Supervision 54,255,570 Development Impact and Processing Fees 58,315,308 ALTA Survey $3,000 Environmental Phase 1 $7,500 Soils Testing 510,000 Construction Loan Fees 5456,065 Construction/Lease-Up Interest S3,095,367 Property insurance 5607,939 Property7axes During Construction 5364,763 Construdlon Loan Title and Dosing 515,000 Appraisal Fees S] 0,000 ~ 530,000 Market Study/Consulting 525,000 Marketing/Lease-Up/StaR-Up S100,000 Developer Overhead 54,794,504 Developer Profit 59,589,008 Tote! Project Costs S] 19,862,606 Total Cost Pier Unit 53b8,808 7atal Cost Per Net Square Foot 3375.57 TOTAL COSTS, WITHOUT LAND $95,512,566 TOTAL COST PER UNlT 5293,885 TOTAL COST PER SQUARE FOOT $299.27 Source: David Paul Rosen & Associates City of Tustin !-fFordabllity Gap and Leveraged FlnancingAnalysis Page 28 5.2 Financing Costs Financing costs vary according to 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 balance 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 tender, the creditworthiness of the borrower, and financial market conditions. The LIBOR iscurrently 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°k and an average loan balance of 60%. DRA has assumed an 8.5%.construction interest rate and a 1.09'° construction [oan 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 b0%. DRA has assumed an 8.59'° 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 8.09'0 {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 morr<;gage supportable by net operating income from restricted rents, based on the above assumptions. For owners, the ggap is the difference between development costs and the supportable mortgage plus tf~e buyer's down payment, ury of Tustin Affordability Gap and Leveraged Financing Analysis Page 29 Table 17 Development and Plnancb~ CatAaataepttom Owner Hotntag hototypea atr afTustin 2ooe Owrw 1 Owns' 2 Owner 3 Owner 4 Mixed Use, Attadfad Stacked Plat High oenstty Ground Floor Townhome Condomtnfum t7w+dorninium ReW( teed AoquWlfoe Coat Land Cant PEi Cross SF Site Aron 545.00 543.00 560.00 560.00 Land Cast Pbr Unit 5109,000 575,000 552,000 590,000 Devetopreeet Cal Site Imprvremlzrt Coat per Net ~ 525.00 520.00 539.00 520.00 Sala lrnprovernent Coen per Unk 561,000 :35,000 52b,000 520,000 Unh Hard Cortltnution per SF 595.00 585.00 5195.00 1155.00 Hard Colt Canfktgency (1) 5% 5% 596 5% • ArChl~uraVErfBlneering(1) 3% 3X 396 3% . ..Property,Tatxs During Construction (1) 0.6096 0.6096 ~ 0.6096 ~ 0.60X Insurartoe Durlnq Cal>struction (1) 3.0096 3.00% 3.009E 3.0096 Se14nRlClah~ Cash (%TDQ 5.0096 5.00% 5.0096 5.0096 Sales Commiarlons (96TDq 1.0096 1.0096 1.0096 1.00% Developer OraFwsadal Conditions (%TlX) 4.0096 4.00% 4.0096 4.0096 Developer Pro1k (%TDG 8.00% 9.0096 8.0096 8.00% Coeubuction Loco Construction Loan % of 70C 85.00% 85.0096 85.0076 85.00% Construction Loam Amt. 591,964,681 592,875,351 5185,955,786 510,648,310 Inlen~ Rabe 8.50% 8.5096 8.5096 8.5096 Lawn Fees 1.0096 1.0096 1.0096 1.0096 Average Loan Balancx-Cor~sUuction 60.00% 1;0.0096 60.00% 60.00% Coru6ructlon Period 12 Months 12 Months 12 Months 12 Months Sale Pt:rlod 3 Months 3 Months 3 Months 3 Months ToL[ Construction Loan Term 15 Months 15 Months 15 Months 15 Mondx Constniction Loan n 54,690,199 $4,736,643 59,483,745 SS43A64 Catstnact'wn loan Intsest--Sale Prriad !1,954,249 51,973,601 51,973,601 51,973,601 Totat Construubn Loan Mtterest 56,644,448 56,710,244 511,457,346 52516,665 Constnictlon Loan Nntnk 5919,647 5928,754 57,859,558 5106,483 Note: TOC •• Taal Development Casa (1) As a percentage of directcosts (site ImprovaneMS and and building shelf hard costa. Saun:o: David Paul Rosen !~ Associstes. ~Nordabil~'~ry Gap and Lerera8ed FlsancingAnairsis Valle 30 Table 18 DevelopnreM and Financitts Coat Assumptions ReaW Prototype Stacked t9a! Apaebetetrts Ciry of ihstln zoos Renber Prototype __ -_ Sbadoed Flal Aa~artmtnb land/euilding Acquisitioe Cult Land Coat i'ler Gross SF Site Urea 543.00 CancVeulkldtg Cosa Fix Unit 570.000 Devebpntertt Coat Awtarrptlotq Sib lmproven>ertt Coats pa SF Site Area :20.00 Sib In'tprr~e+neru Cow per Unit 535,000 [lard ConslrvcNon Costs per Net BkiR. SF St 55.00 Herd cost Conthtgatcy h) S.oo9c Arrftitectural/EngineeriraR (1) 7.0096 Property Taxes During CortstrucNon (1) 0.6096 Insurance Dtt-ing constrtxxion (t) t .0096 lNarketiryifLwsinA/5talrt-Up Pbr Unit =t~0D0 Developer Overhead (%TDC) 4.0096 Developer Profit (96 TDC) 8.00% Cowtrrtdion Loan Constniaion Loan As a 96 oiTDC 75.009'. ~^~don ~^ ~^O~ 589,896,955 Inttmt Rate 8.50% ~^ F~ ~) 5898,970 Average loan Salante (Constr/least'-Up) 60.0096 Constnxxion Period 12 Months Total constructMtt Loan Term 15 Months Cortsauctlon loan Interest 55,730,931 Perntarteot loan Debt Coverage Ratio 1.25 Morllpge Term 30 Yea ktberest Rabe , 8.00% fl) M a perwntage d direct mrb pia Impraenwntr„ parking rtructure and buUtflng III lord crib) Rl At 1.096 of mnrtrudion Wan amount. Sout+ce: David Paul Rosen & Asaoclaies Cky ofibstln Agordadllry Gap and savaged Rnancing Analysb Vigo 31 Attachment A contains the per unit affordability gap calculations fvr 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 assuming various forms of non-[oval 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 bonds, 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 Orange County. We also used the 130% Since Orange County was a designated Difficult to Develop Area (DDA) in 2007, projects in the County were eligible fora 13096 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 Develop 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 Affordabil leveraged Financing (~ of Units at 9~° Ani!a Based on Income Targeting Source/Scenario Median Income 9'o Area Median Income) 9% Low Income Housing Tax 10% of units ~ 30% AMI 47%AMI Credits 15% of units ®~45% AMI 75% of units ®50% AMi ~% Low Income Housing Tax 30% of units ®509'o AMI 57%AMI Credits, Tax-Exempt Bonds 70% of units ®60% AME 4% Low Income Housing Tax 30% of units ®30% AMI 51 %AMI Credits, Tax-Exempt Bonds, 70% of units ®60%AMI and MHP Source: David 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 California Health and Safety Code occupancy standard of one person per bedroom plus one applies. This Cty 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 $3,600 per unit and annual 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 total development costs. l=or 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 fvr 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°k 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 cn~dit 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 $30 million per project. 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 Pemwnent Sources and Uses Leveraged Financing Malysis Rental Housing Prototype: Stacked Flat Apartments City of Tustin 2008 FUNDING SCENARIO 9% Tax Credits 4% Tax Credib 496 Tax Credits, Tax Exempt Bonds Bonds, MHP Number of Units 325 325 325 Acres 13.00 13.00 13.00 Units/Acre 25.00 25.00 25.00 SOURCES OF FUNDS CONSTRUCTION Tax Credit Equity $1,601,192 $813,772 $951,186 Construction Loan $93,857,236 $59,393,300 $67,161,024 MHP (1) $0 $0 $22,609,147 Affordable Housing Program (AHP) (1) $1,625,000 $1,625,000 $1,625,000 Temporary Gap financing Required (2: $17,317,865 $48,263,749 $31,205,104 TOTAL SOURCES $114,401,293 $110,095,822 $123,551,461 PERMANENT Federal Tax Credit Equity $80,059,618 540,688,609 $47,559,315 State Tax Gedit Equity $0 $0 $0 MHP (1} $0 $0 $22,609,147 Affordable Housing Program (/1HP) (1) $1,625,000 $1,625,000 $1,625,000 Permanent Financing $14,207,327 $22,245,144 $16,145,037 Gap Financing Required $18,509,348 $45,537,069 $35,612,962 TOTAL SOURCES 6114,401,293 $110,095,822 $123,551,461 RermanentGapFinancinglUnit $56,952 6140,114 $104,578 USES OF FUNDS CONSTRUCTION AND SOFT COSTS 6114,401,293 6110,095,822 5123,551,461 TOTAL COST/UNIT 6352,004 6338,756 6380,158 (1) Estimated at 55,000 per unit. (2) Equals temporary gap financing required after assuming 2 percent of total tax credit equity is used to fund construction and soft costs during construction. Source: David Paul Rosen & Associates City of Tustin Affordability Cap and Leveraged flnancing Malysis Page 35 Taws A-1 PER UNR PROTOTYPE DEVELOPMENT COSTS BY BEDROOM COUNT OWNER PROTOTYPE Itt QTY OFTLISTIN __~_.Y ,...,.c~T r...__ ,woc arJn cr~F nK r1Nrr ToW Nrmrber of Unitas 234 Unib 2 Bedroom 3 Bedroom 4 Bedroom 1,050 Net S.F. 1,300 Net S.F. 1,700 Net S.F. 1 059 Total S.F. (1 1 311 Total S.F 1 1 714 Total S.F. (1) Hard Corutrsrttion Cosb SILe Improvernenis ~ 560,500 /DU 560,500 Sfi0,50D 560.500 UnitJParldng Constr. Casts 5102.06 /Gr. S.F. 5108,051 5133,778 S7 74,940 Tool Hard Costb 5168,SS1 5194,278 5235,440 Developmast ~a and Procer6ss Fen 537,643 /Unk 531,643 131,643 131,643 Indireet/So1t Cab 572,4571DU 172,457 572,457 572,457 eta] Coeds (&cept Land and pvcrfsmd/ProHQ 5272,652 5298,378 5339,547 t.andCorb 5108,900 /DU 5708,900 5108,900 Si 08,900 Dev. Fte/profit 3~ O„erbead 1 Z96 552,030 555,538 561,1 S1 Total Pro~ett Costa Per Dwe[ting Uok 5433,582 1462,816 5509,592 (1) Assumes efficiency ratio (neVgross 5F7 of 101 % Source: David Paul Rases ~ Assoclabss. Cky of Tustin Page A-1 Af(o~dabllay Gap and I~vera$ed flnanCang Arialysn Table A.2 PFR UNiT IROiOT1TE DEVEEOPMENT COSTS t7Y BROOM COUNT ovvNER t~OTOTYPE rx CITY OF TUSTiN Stacked Flat TYPE AND SIZE Prototvoe Deoriolio,fa Condmrinion Of UNR Tote! tVarber of lhibe 321 Udb 1 B 2 Bedroom 3 Bedroom 4 eedroorn 950 Net S.F. 1,050 Net S.F. 1,200 Net S.F. 1,500 Net S.F. 955ToW S.F. 1) 1 0S6TobI S.F. 1 7 206TotaIS.F. (T 1 508Tota15.F. 1 Hard CoatrucNoa Coda 5[te lmprovementa 534,848 /DU f34,848 534,648 534,848 534,848 UniGParkina Cahttr. Ca:ta 590.77 /Ci S.F 586,693 595,819 S109,507 5136,884 TMaI Hard Cosfa 5721,541 3130,667 5744,355 5771,73] hrlpact aed hooeadtrS Feel S29,277lUnit ;29,277 129,277 529,277 529,277 Irrdk'act/SoltCarb f52S66/DU 55266 152,566 552.566 552,566 TMaI Cab (Except land and OMerl,ead/15roA0 5203,384 5212,509 5226,198 5253,575 Egad Cate 574,9231DU 574,923 574,923 574,923 574,923 t)ev. Fee/Profd >F Overhad 12% 537,951 539,195 S4t,062 544,795 Total ho~ecl Cody Per Drwd6oS Unit 5316,258 X326,628 5342,183 5373,29) tt l Ass~rnes elRdency ratio tnet/gross SF) ok 101% Source: David Hul Rosen ~ Associate,. fay afTUWn NRwd,blNy cap and fever, fea Financug Am~yr vee Mz Table A3 PER UNIT PRDTOTYPE DEYE(.OPMENT COSTS AY BEDROOM COUNT OWNER PROTOYYPE 9S CTTY OF 1Y1S11N 1'{I~ T,e! •~tn l1'rC AF I IAlrr prOIORnIC UNCrprors w,w,ww.w, 7oW Number 0/ Unhn 900 Unit 1 Bedroom 2 Bedroom 3 4 Bedroom T,000 Net S.F. 1,150 Net S.F. 1,650 Nat S.F 1,80D NB S.F. 1 000'Iiota15.1: 11 1 150 Total S.F 1 1,650ToW S.F. p 1800 Total S.f: (1 Hard CoostrucKon Cosb Sits 1mplwsrnetNS 526,136 /DU 526,136 526,136 526,136 526,136 UnitlPufdng Conslr Cats 520;•72 /Gr. S.F. 5205,718 S236S76 5339,435 3370,292 70%1 Hard Cab 5231,854 5262,712 5365,571 5396,428 Devetopn~ettt ImPad and procesrltt6fw 539,844/Unh 539,894 539,894 539,844 539,849 IridireetJSok CaU 585,326 /DU ~ ' 585,326 585,326 185.326 585,326 Todl ~~ ~~ (a0d a0d O{iy 5357,024 5387,882 5490,741 5521,598 ~ ~ 552.272 /DU 552,272 552,272 552,272 152,272 Dew FeeRrollt lr Overhead 12% 553,813 560,021 574,047 578,255 Ybtal Project Costa Per DrlelAnBUO~ 5465,109 SSD0,17S 5617,1)60 5652,125 (11 Assumes eHklancy ratio (netlgress SF) oF. 100% 5ouree: David Poul Rosen & Assodates. Cky dTwdn PIS M3 ,-na.d.baty Gap and Levuapd Financing ANIys1s Tab1eA-4 PER UNIT PROTOTYPE DEVELOPMENT COSTS BY BEDROOM COUNT OWNER PROTOTYPE s4 am ol:TUmN rulhoea u,s, crouta Protolyne Deecrit~oex Floor RehN TYPE AND SIZE OF UNR Total Number of Untie 20 Urtils 1 Bedroom Z Bedroom 3 Bedroom 1,100 NetS.f. 1,400 NeAS.f 1,750 NeR S.F. 1 100 Tota15.F. 1 1400To1a1 S.F. 1) 1 750 Total S.F. 1 Hard Corrbrretlan Cab 5iklrrtprovnmemer 519,800/DU 519,800 S19,800 519,800 UniHPuking ContlG Cosec 5163.40/Gr. S.P. 5179,744 5228,765 5285,956 Tool Herd Coeb 5199,544 5248,565 5305,756 Deudopnrartt impact and ProcadrrRFea 537,530/Unit 537,530 537,530 537,530 ~Cosb 5186,920 /DU 5186,920 5186,920 5186,920 Total Cosh (Except land and Orerbad/Ptnfiq 5423,991 5473,015 5530,206 land [nets 559,400lDU 559,400 f59,400 559,400 Dev, FatrlProfit is Overlrnd 12% 565,917 f72,602 580,401 Tatal Project Cads Per Dure0btt Urtlt 5549,}12 5605,017 S67D,007 (1) Assurrres eflicienry ratio (net/grosi St7 of: 10096 $our~: David Paul Rosen & Asexlates. City of Tustin MfoMtblltty tap and leveti4ad finendng MtJysis P+ie A-4 Table A-5 Homeowner Subsidy Requirements Owner 1 Attached Townhome Two Bedroom City of Tustin 50°k of 70% of 110% of Median Median Median Income Level (1) $35,415 $49,581 $77,913 Affordable Monthly Housing Cost (2) $885 $1,240 $2,272 Less: Monthly Utility Allowance (3) $1'10 $110 $110 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance 550 $50 $50 Available for Principal, Interest, Taxes $550 $905 $1,937 Less: ProlfertyTaxes (4} ~ 579 $130 - $278 Supportable Mortgage Before Prop. Taxes (5) $75,007 $123,272 $264,044 Assumed Assessed Value at Sale $78,955 $129,760 $277,941 Available for Mortg. Principal and Interest $471 $775 $1,660 Supportable Mortgage (5) $64,247 $105,588 $226,165 Affordable Purchase Price (6) $67,628 $111,145 5238,069 Buyer Downpayment 53,381 $5,557 $11,903 Required Capital Subsidy [n $365,953 $322,437 $195,513 (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°6 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: S433,582 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-1 Table A-6 Homeowner Subsidy Requirements Owner 1 Attached Townhome Three Bedroom City of Tustin 50% of 70% of 11090 of Median Median Median Income Level (i) $39,350 $55,090 $86,570 Affordable Monthly Housing Cost (2) $984 $1,377 52,525 Less: Monthly Utility Allowance (3) $148 $148 $148 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 S50 550 Available for Principal, Interest, Taxes $611 51,004 ~~ ~ - $2,152 Less: Property Taxes (4) $88 $144 $309 Supportable Mortgage Before Prop. Taxes (5) S83,235 $136,863 $293,276 Assumed Assessed Value at Sale $87,616 $144,066 $308,712 Available for Mortg. Principal and Interest $S23 $860 $1,843 Supportable Mortgage (5) 571,295 $117,229 $251,204 Affordable Purchase Price (6) $75,047 $123,399 5264,425 Buyer Downpayment 53,752 $6,170 $i 3,221 Required Capital Subsidy (7) $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 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: S.OOgo (6) Assumed to include downpayment at 5.0% of purchase price; {7) Total development costs of: $462,816 less buyer downpaymen~, less supportable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Rnancing Analysis Page A-2 Table A-7 Homeowner Subsidy Requirements Owner 1 Attached Townhome Four Bedroom City of Tustin 50% of 709'° of 11096 of Median Median Median income Level (1) $42,496 559,497 593,496 Affordable Monthly Housing Cost (2) $1,062 $1,487 $2,727 Less: Monthly Utility Allowance (3) $164 $164 $164 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 $50 S50 Available for Principal, Interest, Taxes $673 $1,098 $2,338 Less: Property Taxes (4} $97 $158 $335 Supportable Mortgage Before Prop. Taxes (5) $91,780 $149,698 $318,625 Assumed Assessed Value at Sale $96,611 $157,577 $335,394 Available for Mortg. Principal and Interest $577 $941 52,003 Supportable Mortgage (S) $78,614 $128,223 $272,916 Affordable Purchase Price (6) $82,751 $134,971 $287,280 Buyer Downpayment $4,138 $6,749 514,364 Required Capital Subsidy (7') $426,840 $374,620 $222,312 (1) Income limit for a family of 5. (2) At 30°~6 of gross income for low income and 35% of gross income for moderate income households. (3I 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) Sased on 1.209'° average tax rate. (5) Based on 30-year mortgage at: 8.00% (6) Assumed to include downpayment at 5.Q°k of purchase price; (7) Total development costs of: $509,592 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & Associates. Ciry of Tustin Affordability Gap and leveraged Financing Analysis PageA-3 Table A-8 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium One 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°AO of 7096 of 110% of Median Median Median $31,480 $44,072 $69,256 $787 $1,102 $2,020 $93 $93 $93 $175 $175 $175 $50 $50 $50 $469 $784 $],702 $67 $112 $244 $63,917 $106,819 $231,950 $67,281 $112,441 $244,158 $402 $671 $1,458 $54,748 $91,495 $198,675 $57,629 $96,311 $209,132 $2,881 $4,816 $10,457 $258,629 $219,947 $107,126 (i) 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 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°~ (b) Assumed to include downpaymeni at 5.0°k of purchase price; (7) Total development costs of: $316,258 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of7ustin 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: 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') 5086 of 70% of 110°/0 of Med'wn Median Median $35,415 $49,581 $77,913 $885 57,240 $2,272 $110 $110 $110 $175 $175 $175 $50 S50 $50 $550 $905 $1,937 $79 $130 $278 $75,007 $123;272 $264,044 578,955 $129,760 $277,941 $471 $775 $1,660 $64,247 $105,588 $226,165 $67,628 $171,145 $238,069 S3,381 $5,557 $11,903 $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 al{owances 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 t .20% average tax rate. (5) Based on 30-year mortgage at: 8•~°~ (6) Assumed to include downpayment at 5.0% of purchase price; (7) Total development costs of: $326,628 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. ' City ofTusiln 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 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 Dowrtpayment Required Capital Subsidy (73 50% of 70% Of Median Median $39,350 $55,090 $984 $148 $175 $50 $611 $88 $83,235 $87,616 $523 S71,295 $ 75,047 $3,752 $267,136 $1,377 $148 $17s $50 $1,004 $144 $13 6,863 $144,066 $860 $117,229 $123,399 $6,170 $218,784 1109'0 of Median $86,570 $2,525 $148 $175 $50 $2,152 $309 $293,276 $308, 712 $1,843 $2 S 1,204 $264,425 $13,221 $77,758 (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 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. City oETustin Affordability Gap and Leveraged Financing Analysis Page A-3 Table A-11 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium four Bedroom City of Tustin 50°6 of 7096 of 110°6 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) $164 $164 $164 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 $50 $50 Available for Principal, Interest, Taxes $673 $1,098 52,338 Less: Property Taxes (4) $97 $158 $335 Supportable Mortgage Before Prop. Taxes (5) $91,780 $149,698 $318,625 Assumed Assessed Value at Sale $96,611 $157,577 $335,394 Available for Mortg. Principal and Interest $577 $941 $2,003 Supportable Mortgage (5) $78,614 $128,223 $272,916 Affordable Purchase Price (6) $82,751 $134,971 $287,280 Buyer Downpayment $4,138 $6,749 $14,364 Required Capital Subsidy t71 $290,542 $238,322 $8b,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°k 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 affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-4 Table A-12 Homeowner Subsidy Requirements Owner 3 High Density Condominium One Bedroom City of Tustin Income Level (1) Affordable Morttltly 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) Afforclable Purchase Price (6) Buyer Downpayment Required Capita! Subsidy (7) 50% of 70°~ of 1109'° of Median Median Median $31,480 $4.4,072 $69,256 $787 $1,102 $2,020 $93 $93 $93 $175 $175 $175 $50 $SO $50 $469 $784 $1,702 $67 $112 $244 $63,917 $106,819 $231,950 $67,281 $112,441 $244,158 $402 $671 $1,458 $54,748 $91,495 $198,675 $57,629 $96,311 $209,]32 $2,881 $4,816 $10,457 $407,480 $368,798 $255,977 (1) Income limit for a family of 2. (2) At 30% of gross income for low income and 35% of gn~ss income for moderate income households. (3) Based on current utility allowances from County of Orainge Housing and Community Services Oept. 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) Total development costs of: $465,109 Less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-1 Table A-13 Homeowner Subsidy Requirements Ci'wner 3 High Density Condominium 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, Interests 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°.6 of 70% 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 51,937 $79 $130 $278 $75,007 $123,272 $264,044 $78,955 $129,760 $277,941 6471 $775 $1,660 $64,247 $105,588 S226,165 $67,628 $111,145 $238,069 $3,381 $5,557 $11,903 $432,547 $389,030 $262,106 (t } 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°~6 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: $500,175 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Flnancing Analysis Page A-2 Table A-14 Homeowner Subsidy Requirements Owner 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 Insurance Available for Principal, tnienest, 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 7096 of 1109'° of Median Median Median $39,350 $55,090 $86,570 $984 X1,377 $2,525 $148 $148 $148 $175 $175 $175 $50 550 $50 $611 $1,004 $2,152 $88 $144 $309 S83,235 $136,863 $293,276 $87,616 $144,066 $308,712 $523 $860 $1,843 $71,295 $117,229 $251,204 575,047 $123,399 $264,425 $3,752 $6,170 $13,221 $542,013 $493,661 $352,635 (1) Income limit for a family of 4. (2) At 30°~ of gross income for low 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% 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) Total development costs of: $617,060 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis PageA-3 Table A•15 Homeowner Subsidy Requirements Owner 3 High Density Condominium 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 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 ttequired Capital Subsidy (» so°~6 of Median $42,498 7096 of 11096 of Median Median $59,497 $93,496 $1,062 $1,487 $2,727 $164 $164 $164 $175 5175 $175 $50 $50 $50 $673 $1,098 S2,338 $97 $158 $335 $91,780 $149,698 $318,625 $96,611 $157,577 $335,394 $577 $941 $2,003 $78,614 $128,223 $272,916 $82,751 $134,971 $287,280 $4,138 $6,749 $14,364 $569,374 $517,154 $364,845 {1) Income limit fvr 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 grange 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•~% (6) Assumed to include downpayment at 5.0% 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 50% Of Median 70% of Median 11096 of Median Income Level (1) $31,480 $44,072 $69,256 Affordabhe 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: Property Insurance $50 $50 $50 Available for Principal, interest, 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 $112,441 $244,158 Available for Mortg. Principal and Interest $402 $671 51,458 Supportable Mortgage (5) $54,748 $91,495 $198,675 Affordable Purchase Price {6) $57,629 $96,311 $209,132 Buyer Downpaymeni $2,881 $4,816 $10,457 Required Capital Subsidy (7) $491,683 $453,001 $340,180 (]) irtcome 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. City of Tusti n Affordability Gap and Leveraged Financing Analysis Page A-1 Table A-17 Homeowner Subsidy Requirements Owner 4 Mixed Use, Ground Floor 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, lnterest, 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°~6 of 70°10 of 11096 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°'0 of gross income for node~ate 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% of purchase price; (7) Total development costs of: $605,017 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen 8c Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-2 Table A-18 Homeowner Subsidy Requirements Owner 3 Mixed Use, Ground Floor Retail Three Bedroom City of7ustin 50°6 of 70°~ of 110°k of Median Median Median Income Level (1) $39,350 $55,090 $86,570 Affordable Monthly Housing Cost (2) $984 $1,377 $2,525 Less: Monthly Utility Allowance (3) $148 $148 $]48 Less: Homeowner Association Dues $175 $175 $175 Less: Property {nsurance $50 $50 $50 Available for Principal, Interest, Taxes $611 $1,004 $2,152 Less: Property Taxes (4) $88 $144 $309 Supportable Mortgage Before Prop. Taxes (5) $83,235 $136,863 $293,276 Assumed Assessed Value at Sale $87,616 $144,066 $308,712 Available for Mortg. Principal and Interest $523 $860 $1,843 Supportable Mortgage (5) $71,295 5117,229 $251,204 Affordable Purchase Price (6) $75,047 $123,399 $264,425 Buyer Downpayment $3,752 $6,170 $13,221 Required Capital Subsidy (7) $594,960 $546,608 $405,582 (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 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°Yo of purchase price; (7} Total development costs of: $670,007 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of 7usdn Affordability Gap and leveraged Financing Analysis Page A-3 Ta61a &/ Per Unit DavdopltMnt Caa4 ~ U.k bedroom Count Beafal FIot~Yae ProEotypa Stadtei Hat AparOoenb Cti d7btia 2006 Stacioad Fiat Aparllttenb TYP E AND SIZE 17F UN R ~ ~~ 32S Utdb 1 750 Net 5. F. 2 930 Net f. $ t 050 NM S.F 4 t 50 Net S.P. Hard CoealeYCdoa Cab Site Irnpnor.t-Mw 534,818/DU UnfWirlortiCmsnGaatt 5155.OOPbrSF TobtNadCab 534,54e i11b,250 1151,098 534,84e 5147,250 1182,098 534,846 5162,150 5197,59e S34,s46 5793,750 S228,596 and 7eu CIryPtocaeei ~ ~ ~ 126.05/ Nat SF. 519,541 524,752 527,357 532,56e tndintYSeftCads 131,9114 536,984 535,9M 134,984 536,984 Coeb (Excgt ~~, prlrLead, Pro11t) 5207,623 5243,834 5261,940 f298,150 Sand Cate i74,923/DU 474,923 574,923 574,423 S74,923 pave EeelProBt 8<OverMd 1216 538,529 143,4b7 545,936 150,874 Tod Iroject Cab Pts Unlt 5321,075 5362,224 5382,199 5421.947 Solutes David pawl Rosen b Arwclalec G~dlleea ~ bt Aftoid~hilftY Cap ad i,mwled fhnndnjMry~sh Table B-2 Tenant Subsidy Requiremerrt~ Renter Prototype Stacked Flat Aparanents One Bedroom City of Tustin 2008 50% of 6096 of Median Median Income Level (1) $31,480 537,776 Affordable Monthly Housing Cost (2) $787 S944 Less: Monthly Utilities (3) - 554 S54 Affordable Monthly Rent 6733 $890 Less: Monthly Operating Cost (4) $300 5300 Less: Monthly Property Taxes (5) 5321 $321 Less: Vacancy Allowance (6) $22 $27 Tenant Monthly Net Operating Income $90 $243 Tenant Supported Debt (71 59,805 $26,451 Total Development Cost Per Unit $321,075 $321,075 Required Capital Subsidy (8) $311,270 $294,624 110% of $69,256 51,731 $54 $1,677 5300 $321 $50 $1,006 $109,661 $321,075 $211,394 -----~- (1)For ahousehold size of 2 persons, pro-rated from 2007 HUD income limits for Orange County. (2) Assumes 3096 of gross income spell 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 annum property tax rate of 1.2°k applied to 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 of Tustin Affordability Crap and leveraged financing Analysis Page B-1 Table B-3 Tenant Subsidy Requirernerrts Renter Prototype Slicked Flat ApaHrnerrb Two Bedroom City of7ustin 2008 5096 of 6096 of t 1096 of Median Median Median income Level (1) $35,415 $42,498 $77,913 Affordable Monthly Housing Cost (2) $885 X1,062 X1,948 Less: Monthly Utilities (3) $68 $68 $68 Affordable Monthly Rent 5817 $994 $1,880 Less: Monthly Operating Cost (4) $300 $300 $300 Less: Monthly Property Taxes (5) S362 $362 $362 Less: Vacancy Allowance (6} $25 $30 $56 Tenant Monthly Net Operating Income $131 $302 $1,161 Tenant Supported Debt (7} 514,242 $32,969 S126,603 Total Development Cost Per Unit $362,224 $362,224 $362,224 Required Capital Subsidy (8) $347,982 6329,255 6235,621 (t) For a household size of 3 persons, pro-rated from 2007 HUD income limits for Orange County. (2) Assumes 30% of gross inrnme 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) Sased on annual property tax rate of 1.2% applied to total development cost. (6) Assumed at 3°/" of affordable monthly rent. (7) Sased on 30-year mortgage at : 8.0096 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. Cty of Tustin Affordability Gap and Leveraged Financing Anaiysis Page B-2 Table B-4 Tenant Subsidy Requirements Renter Prototype Stacked Flat Apar6nents Three Bedroom City of Tustin 2008 5096 of 60% of 11096 of Median Median Median Income Level {1) 539,350 $47,220 $86,57D Affordable Monthly Housing Cost (2) 5984 51,181 $2,164 Less: Monthly Utilities (3) 598 598 598 Affordable Monthly Rent 5886 $1,083 52,066 Less: Monthly Operating Cost (4) $300 $300 $300 Less: Monthly Property Taxes (5) $383 5383 $383 Less: Vacancy Allowance (6) 527 532 $62 Tenant Monthly Net Operating Income $559 $750 $1,704 Tenant Supported Debt (7) 560,965 $81,773 $185,810 Total Development Cost Per Unit 5382,799 $382,799 5382,799 Required Capital Subsidy (8) $327,834 $307,026 $195,989 (1) For a household size of 4 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 1.2°/u applied to 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 of Tustin Affordability Gap and Leveraged Financing Malysis Page B-3 Table B-5 Tenant Subsidy Requirements Renter Prototype Stacked flat Apartment Four Sedroom City ofTu:tin 2008 Income Level (1) Affordable Monthly Housing Cost (,Z) Less: Monthly Utilities (3) Affordable Monthly Rent Less: Monthly Operating Cost (4) Less: Monthly Property Taxes (5) Less: Vacancy Allowance (6) Tenant Monthly Net Operating Income Tenant Supported Debt (7} Total Development Cost per Unit Required Capital Subsidy (8) 5096 of 6096 of 110°6 of Median Median Median $42,498 $50,998 $93,496 $1,062 St,27S 52,337 $109 $109 $109 $953 $1,166 $2,226 $300 $300 $300 $424 $424 $424 $29 $3S $67 $201 $407 $2,285 521,903 $44,376 $249,179 $423,947 $423,947 $423,947 E402,044 $379,571 $174,768 (1) For a household size of 5 persons, pro-rated from 2007 HUD income limits for Orange County. (2) Assumes 3096 of gross income spent on housing. (3) f3ased 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 5300 (5) Based on annual property tax rate of 1.2% applied to total development cost. (6) Assumed at 3% of affordable monthly rent. (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 capital ized "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 Affadabiliry Gap and Leveraged Fnancing Analysis Page a-4 TaE~e C-1 LEVERAGED FINANCING ANALYSIS RENTAL PItOTOTYPEi STACIQ`D FLAT APARTMENTS DEVELOPMENT PROGRAM CITY OF TIJSTIN 2008 Unib Type ~ Unlb 96 Unify Sq. Ft/Unit Tots! 5F Pler Acre Acres t Bedroom 73 2396 750 54,750 2 Bedroom 100 3196 950 95,000 3 Bedroom 100 319E 1,050 105,000 4 Bedroom 50 1596 1,250 62,500 Total Affordable LJnlts 323 10096 317,250 25.D0 13.00 2 BR Manager's Unit 2 1,900 Total Housing Units 325 314,150 Carnmunity Room 0 Total Net SF BuildingArea 374,150 Parking/Clrculatton open Spaces Parking Structure Tots} Spada 5naces 81 650 73i City ofTustln AAtordablltty Cap and Leveraged Fr~arxirtg Analysis ~ C-1 TiYk G 2 RENGIL t'SpRpT1TE f'f/uUCED FLATMAATAIENTf INCOINE MID CrE3ATINC CO6Ti 1N1TH 9%U%CRLDITS F~1E3AC AND STATE ASSUMT11ONS 2007 Median HouaelaW GKOmR, Family d four Af(oLtleble Houdnq CoalAt a %o(bloaaa No. of 8adymma ~ Tdak Homehold Sire 11) Hauaahold Sirs Inooma AdWr. F~e1M Utllity Alkwana R) No. d Unit 32] Tool e.dioom. n3 AFPO~'-311 YiNtS OY IAICOM! 2ENEi AMUeI Glow leraew Alfordabb Mwd+lY llanin!{ Coal laM: AbnNyUYiIgAYOa~enae ARaaabls MonlMy Raft 4sx d rt4.dfas Aaaal Grab 1'ICefIN Afbrdaltle MarMbly HarM11 t~ I.aa: MOn3Lly UdOgADawntcs Afbrdabla MontFdy Ru+t Arewal Gran aKatw Afbrdabis 1~M Hauip Cpl t.airw Ma,6,lyudrtyAUeM.nn A16rdabb Ma+d-h Rae NET OrERA75tdG 6YLbME ARafdabilily LaalMo. d3adrooma lOS% U~db 4Sx dMadlae 15.2% o< UNO SO~ka[.l~in 74,6x d UNs f73,700 30li 1 Sdream Z badroae 2 bdroaa 4 Mi:aoto 1.S F4r1oro 3.0 f~araa+a 1.0 fYnan 5.01-iona 7S% 90x 100% 1D6% fS4 she s96 slog y3 7pp 100 SO rs Zoo wo :oo 517,706 321.24! (23,610 S257t!! (443 5531 fS90 f6l7 asp) ab» x931 cs1o~ s]e9 s46s s492 Ss2s f26,S61 531,674 S3S,41S x)6,2~t fiH 5767 (635 f9S6 ff54) (5631 ((961 (f10% 5610 5729 5767 5647 (29,513 f3S,415 (]9,950 (42,496 f7~ f36S 5964 f1,062 lis4) cSbp If9a a109) 5664 Set? f806 5953 ' Monddr Unfit Rant Grow Inooms I Badrooa f 1 0 54 10 f463 , 6 ] bad~aaa 10 54(2 (4,820 4 D.aa6,a s fszb (2.6'10 tlsdmm 11 5610 56,710 2 eadraom 15 f729 f1Q,935 3 6ad~oafn 15 5767 Sl l,eo5 4 Badfoola 6 5647 56.776 l8sdaoa S4 36M (]6,936 2 eadroan 7S 581r 56t,27S 7 Dadlaom 73 5666 5644!0 4 6adivom ]7 f9S3 S]5,261 , Took 323 Managar'r Unln 2 aE f3,017~400 GROSS RENTAL OrCOI lsaa: Vacancir (31 a 5~ aS32,300 ~~, pia 5100 Prr Unh CROSS ANNUM INCOINE ~'~'~0 LlSS: OPEIIATING EXPENSES S]OOhmlVrtw. 53.600 Irr UnNJykar 3% dOpr. budges x1,170,000) a3S,t00) Lew: OpaatlngRMrrea !ales: Ra0lsarrwn Rama 5400 F!r UnWYYtr (f130,00W NfT OPERA711JG INCOME f1,56+J T30 p) AaurnM 6ha law d 7CAC ooalpanoy atuLdad (1.5 pantoro par bedroom) rtd pllforLda Fkaldj and Safety ocwpaKY aatLdard Iona Pawn par badnwm pGr ones). R] Sourct Cw+mr d Om+la Nausbp and Gomauniry Servlcaa, af~cdre Ot3obar t, 2006. Aawrr~ unarx PaYa all aMouie baa31K, oookbg6 and waMr batlnq and back akl3kkta landad R+ya waq- and trKh. (37 P[AC requ'w a Sx minimum wancy nu asks vreWad bead on waray dale 1n dla marled area. 4S0 f2S1 CKy d1bM P~6r G2 Mard+bNi~r W' p ~^d L...o~d rGr~dy M~IrIY Table G3 RENTAL PROTOTYPE: STACIO:D F[AT APARTMENTS DEVELOPMENT COSTS 996 TAX CR@17S, FEDERAL AND STATE Acres 13.00 No. of Unit 325 Total Net Living Area (SF) 319,150 Community Roam 0 Total Net Square Fast, Residerrtial Units 319,1 SO Other BuildingArea 0 Ton1 Net Square Feet 319,150 Toni C1oss Square Feet 565,280 96 Residernial Barb Eiigtbk 100.00% Tax Credit Eiig. Bads Total (100% Rasid.J LAND ACQUIS)TION 643 Pbr Site SF 624,350,040 f0 SITE WORK 520 Per Ste SF 511,325,600 611,325,b00 UNITCONS7'RUCTION HARD COSTS S75S Per SF 549,468,250 549,468,250 OONTiNGENCY 5.00% of Hard Casts 53,039,693 53,039,693 ARCHJENGJCONSTR SUPERVISION 7.009L of HardCotla 55,960,072 55,960,072 LOGII.IMPACTAND PROCESSING FEES 326.05 Per SF 68,315,308 ;8,3]5,308 ALTA SURVEY 53,000 53,000 ENVIRONMENUt'PHASE I 57,500 ~ 67,500 SCIIISTESTING 510,000 f10,000 CCM1S'TRUCTION CORN FEES 1.0096 (938,572 5938,572 CCBVSTRUCTIONA.EASE-UPINTEREST 8.5096 15 Months 56,781,185 66,781,185 REAL ESTATETAXES AND INSURANCE 1.6096 of bard Cosh 51,362,302 61,362,302 TITLE AND CLOSING 515,000 515,000 APPRAISAL FEES (10,000 610,000 REAL ESTATE LEGAL (30,000 512,000 ORGANIZATIONAL LEGAL f3D,000 f 0 MARIOeT STUDY 525,000 525,000 POST{ONSTRUCTION AUDn' S1 S,tXXf SO MARICETUVCJLEASE-UPISTART UP 5100,000 60 OPERATING RESERVE 3 Months O-per 5292,500 ~ TOTAL DEVELOPMENT COST 112 079 022 S87 73 482 DEVELOPER ) 15.00% otTDC 51,940,000 S],200,000 TAX CREDIT CONSULTANT ~ ~ (30,000 SO TAX CREDETAPPUCATION FEE 52,000 SO TCAC ALLOGTION FEE 4.00% of Mn. Credo (320,270 f0 SYNDIUTION LEGAL 5~,~ 50 TOTAL PROJECT COST 5114,401,29, 588,473/L82 PER UNIT 63S2,OQ4 5272,226 PER SE $358.46 (1) As of 2006, the nwxlmum devdopar fee permitted by TCJ1C is the lesser of 1596 of development costa ar S2 m1111on. The maximum amount that can be included in eliglbk basis b 51.4 million. Developmer~i and tax credit consulting and syndiatlon costs are Included In the developer fee ap. t:hy of7uilM A((ordabDNy Gap and Leve,aged (°Mancin0 Analysis Page G3 Table C-4 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS FINANCING ASSUMPTIONS 9'6 TAX CREDITS, FEDERAL AND STATE TAX CREDIT EQUITY Requested Eligible Basis $71,616,838 Less: Non-Qualified Non-Recourse Financing So Unadjusted Eligible Basis 571,616,838 Adfusted Eligible Basis (High CostAreaAdfust) 1.30 593,101,889 Qualified Basis (% Low Income Units) 100% 593,101,889 Tax Credit Rate 8•~°A Annual Allow. Federal Credits 58,006,762 Tax Credit Pricing (Equity Raised Per Tax Credit Dollar)- rederal 51.000 Federal Tax Credk Equity (99.99%) 580,059,618 FAIR MARKET VALUE CALCULATION Net Operating Income; Restr. Rerrts 51,563,730 Capitalization Rate 8.5096 Capitalized Va{ue at ResMcted Rents 518,396,824 MAXIMUM CONSTRUCTION LOAN CALCULATION Max. Constr. Loan as Percent of FMV 75% 513,797,618 Plus: Federal and State Tax Credits 580,059,618 Maximum Construction loan 593,657,236 CONSTRUCTION LOAN Constr. Loan AmL 593,857,236 {nterest Rate 8.5096 Loan Points 1.00% Average Loan Balance--Constnxtion 60.00°!e Construction Loan Term 12 Months Lease-Up Period 3 Months Total Construction Loan Period 15 Months Construction Loan Int~eresi-Construction 54,786,719 Construction Loan interest-Lease-Up 51,994,466 Total Construction Loan Interest S6,781,185 Construction Loan POirrts S938,572 PERMANENT MORTGAGE Net Operating Income 51,563,730 Debt Coverage Ratio 1.25 Debt Service Based on DCR 51,250,980 Mortgage Term 30 years Interest Rate 8.009'0 Max. Mortgage Amount (DCR) 514,207,327 Loan Fees 1.009'0 5142,073 City of Tustin Affordability Gap and Leveraged FlnancingAnatysis ~C't Table C-5 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS 996 TAX CREDITS, FEDERAL AND STATE Orange Co. 9%Threshold Basis Limits, 2008 Unit Size TCAC Basis # of Units Limit Per Unit Total Basis 1 Bedroom 73 $139,272 2 Bedroom 100 $168,800 3 Bedroom 100 $215,040 4 Bedroom 50 $239,568 2 Bedn~om Mgr's Unit 2 $168,800 Total Threshold Basis Threshold Basis Boosts Plus: Prevailing Wage Soost Plus: Subterranean' Parking Boost Plus: Day Care Center Soost Plus: Special Needs Boost Plus: Elevator Boost Subtotal Boost (1) Plus: Energy Efficienry Basis Boost Plus: Distributive Energy Boost Plus: Seismic Upgrade Boost Plus: Development Impact Fees Total Adjusted Threshold Basis Max allowed zo% 7°~6 2% 2% 10% 39% 4% 5% 15% o°~ 0°k 0% 0% 0% Total Unadjusted Eligible Basis Requested Eligible Basis $10,166,856 $] 6,880,000 $21,504,000 $11,978,400 $337,600 $60,866,856 $o $o $0 $0 $0 4% $2,434,674 09'0 $0 0% $0 $8,315,308 171,616,838 $88,473,482 ;71,616,838 i1) Under 2008 TUC regulations, the total combined boost for prevailing wage, parking, day care center, special needs and elevator may not exceed 39 percent City of Tustin Affordability Cap and Leveraged Financing Analysts Page C-1 Au.0 mx1Ar.170WrfM MOW rtA9 AFAa7Atst[s oW58A7U,c BUDG07 A10 cAH mm 9% ax cNSXSS PROEM AND SUITE 13011A710R Ram opeaftam ,rrr.r,llp 611. F- II"d ammm Dm,1 F4rn9d 8•m Nd emits Ymmm 011.14 C" CAWS Naw FD110100 1'414 U&S...-Flo nm Ds1 DdeCIVW R 8490 Imam pLaw Dwdgm hm1Aw114 JW CAH RDW AFFU 487. AIG$ M AYdw9w Hid; LVL 1•• Rew I i.�1Mp 1L��1�6F►�eY1Amiga s-eo% 7.sox 779% • s 8 ! 10 t i7 / s s W017A00 73.011,158 u17%139 51,7400410 SSMOAU $7.A17.s►t $77.180 $17.709 MIN $77.109 511,109 salon $cox 61544 015041 a1s4594 09,97.174 au4,1s71 6174154 17.15%00 17.971,701 DAK796 1X17%$47 11.IW Z= 92"X3 7708 A*m a7,t7%a 161.714090) at,n%7711 091297.704 a1i4.t971 11,180,1091 71,1' %M 51,714151 $1,MA11 $70477041 51,15"18 13A8473o •WDAO% 6174000 0151154 aumm at%lm 474%17» also" $cox 4316154 044 1170494 amore ~0 "AM s1.58%ns $lA0%471 $72/14 :13 15 •tA.74 $1,NLSU 1"A4M1 {4,7"490 091.8%!15) 091.794504 11,75480 6129440 61.754900) 725 197 to td1. 133 133 5117,710 $11 m, - S"16m 519%810 5414188 $4%K7 574091 Q4004 1174114 m7L1191 a71,15a a772391 wilom 5!91.7!0 $917.94 $147048/ 550.171 $MAW 6•14798 SKOW 5f%s" $71,113 321A91 577,758 527.405 3%405$ $3.58%740 SOM409 51J893b SIAWA77 53A0909D MIN $1%115 553,109 MIN $37.115 571.100 417498U 091193304 5,/70474 a1YA1M 61lf,/7q 091879151 $7190407 f),110LS11 53,975Affi 53.817.011 13imdm $3.794747 61,4477$► atAS%9p1 dl scA171 WAK3 1 DIA MS) 091,700,1851 S1A116175 SIASSA44 S1A9.s09 $7.91%•71 52m'as "Aft" au%mw 619%1540 0171,110 6117,171% 6115274 6191,7910 mt471 aW41571 at%714 647A74 64,3171 so 07116221 51,7410491 $1.167.10 $1.7040400 $1,14,119 $1.914m ats54154 091,!"404 61.754304 6/25430 a7,794910 61.7!09001 137 1.30 1A1 IAV SAS 1.57 $404" $*"It 9"04" $$4704» 25f0,739 SS4.7m a71.5111 124.19A 614$44 a75.s1n 647170 618.969 541.700 1184716 HS1,797 ;51411" "CAN 061/,3U 875.515 $71,107 07404 $70,551 N4777 8X.991 trrC.6 HauterOFOMM 65AC160SIM A7M1TA1RM Ot'81A5 M IM1DW AND Owl PLOW *% TAX CUMM ROBAL AND STATE EWAL49M SAM 1111o,mwl�r 2.04 a7.,r1� CAM 3.st41 P MEL fee 179!1 11 p !! 16 17 N 19 20 71 12 23 !4 Be" Oe„earr Gloel 110e,eY1 am ' 641x14rw 64161611 64»2 to7 1477400 144 pR3p 64!•1.771 7470411/ 3/013 767 1491{911 ss lve7o lS 1lIAt M SS 924 631 U Altus- 677,10 SAM 535.101 S2%m 633,100 SMIGS 166.011 WON 673.10 636.101 137.1a0 697.10 Wv,o7A1kw1m SA00'+l 620241119) 07WOM 5713,173) 02MMS► 02MM W229AM arii, M a?/1,iw OW.210 02:3,7979 0=!!.7331 0926"71 No Mata Mawr 16,919,772 53,!/4661 14WA39 14.334.00 142~ W f4,7KM 14,!0!,916 SWSA 8 1/.7!14751 14847.01 14.ri1.044 6SA11.417 gfr+llf.aY 6300 Atone. :p.7f7.M (SIAM= 01,910,173) 61AMISO 62A11 " 02,1W1,770 IMIT 262) 0s2I;3:7) xZ3240S» 47.4114376) 07.450.00 62301,1541 OWopaltlme 12MMI 17.164177 $%IU U 1t324M 62194774 11,M3.1a1 UAAA64 WJG1,190 52,401.191 67.434144 12474.IfS 52.SIt%261 11"imc e 1 WYee 640 Ae}a 0114,091 02003141 x214430 6217.7751 0226 051 5217.30w 0241.4741 aMOM (P'.183) 0717.776) 0277.0%) Saw" Opwsft two JAM MIAM so m GUAM 6o 60 00.1901 10 Sa So 474.010 So 61911 tW W 1'61 Der) 3111% SIAW"Of 51ARAW 11.9791176 11,947.05 J%OK 11 1AN,714 1%MAM 62,181491 u,MA25 17,171At1 52.127.717 12.223.410 Dow Sm "a1s5T11etDOW 011749001 01.234910 allms 0 x1.250.910 x1.254900) 41,250.00 61,150'3/0 01.710.4 Gum" W.1SOum 01 ]x0.100► 167.754910 Da610 a 9plo 1.80 1.36 131 1.30' t.H IA5 lit 710 1.71 1.71 1.70 1.71 1Q010111OW 1619.184 6704121 67214156 7014911 1711.326 SOICA14 877112 6114463 SWIM 9911%436 6171707 SWZAN t7alelelsA.ne%IL74a 610.000 OVA10 014457) '071.740 030,840 03480 671.7191) 632!10 017,411 (t4400 675.19!) 070777) Cp."Al NST CUM FLOW A2T0tMOM AYRler 19.0.1~ 6077077 510,917 1161,915 1737.495 SMISIS 6744411 6at.167 61516177 !/6404 5634."S 1934162 L4r1a7�1 FU& 9Mhos Sommeii41 WAS S33AW 674240 $514044 S300111) 121.719 1!2.011 01.44 694405 135,750 734337 537,374 Cf f/w AMWhb WGMPa ALMWpd71eMe1�A.e1'► layW .M.0 YNM/aDtCWM WAC® RATAMfnd N11 ONRAnMf JDMAND CAIN NOW 9%UX OWM%FKft-AND 1d" 1643H.4trM- -1 bmwm~ 73DK pNf 1307► N►wwolo hw hA 2-M 3s x r r a x 11ao1 ■w Qm 33335! JIM Sg AW W 14111,01 $4733" 1407.210 14027.227 $41700 1Aw*po1r 0161411 7 ial W% M 07,10 711.10/ X70 Vou"Aa7rass 5.0071 4927SAO 8274M axtb7l ansom a1f1.21q OWN) "Roam, 0,!17.575 7a3B.7M 14A,14S1� 71W5 15.7x,1x I7„1w,11a O—C 0 3700AOW 42~0 a+67649M a3./SL"n OMMI 4 6>,di5A/q 111,172,1771 Nr o1.+1tkmm ftpb=NMRB-- 1700AWa 12.1716230 o tox a w,.n 4x7.2331 SWILM WIYA A UAKW aN1.100 32"45" a7WA= 12.77t27a 3313 " ciows"ftw4f LW% 0 40.3171 1D 7D 11101.1011111 10 77AI71aowrOalxwsR71 D,MSMrn- 11111doad 7X2+3" 411imfa4 711."7.335 al mom 12.11/3Nm OIJXWM 01.321.70 31.2141x1 1%257.0/ 01.204/1$ 52.777757 131.210.001 O�t�fwrylRrb 7.10 1114113 US x71,13 LM 11;Mµ17 IA6 11.7DI.S17 131 f1.ax.M1 1.10 11.113.7H �Ammkip.he PDA00 6747aA 6147171 37o17ro O71.iDq 042,M Mae MU C I ROW AFI" MSL UM M 1x16111 "NAM 11.000.1m f1.0W33 11144 SlAw" D AMINE 77A7r 14 NSL 177 PW1lNA "ams 13L70 174791 171AW W70 1DAN cmvafl� IYwG ANW6ft GM rJ1 M1rr1✓�1w TAbb ca RENTAL NOWMM S AIDW RAT A1NR161lNn ORRA2ING AND REPLACB41M Roam RIND wr{NQS 9%TAX CREDFM FEDERAL. AND$AT! WERAl1N4G 1 2 3 4 S 6 7 6 9 10 11 R99k1NE B44Ywl q Rab- 3292,500 $331.900 $373,296 6414496 $461.659 $704«2 SS74162 si09.702 SM.704 5719,07 5775,310 Y49wtEaidrals 1500% 54,386 $4900 $9.599 S6,247 54925 37,633 54373 Ala 54953 514799 $11,679 CofrillWAV4 3.0m $35,100 534929 337,600 236,916 549,27E 641AW $43,147 $"AS? $464220 547.635 $49,512 VA*A♦awa4 60 SO 00 $0 60 30 $0 50 $0 $0 So Eadar aalanm 5371.956 $373.296 $4t4499 5461,699 6SO4561 s954iR2 $609,702 5663,901 5719,677 5774310 5539,497 Max. Dalaroa 410 MOL Suft 6 Mew SSIS,000 5606,475 $626.667 $60AW $671,301 $694,796 $719,114 6744263 $770:333 1797,295 SWS,200 RNf ABMT RWM moomfteamm s0 5134000 $266.900 S40l,757 $S6403i 069,596 $4241,0[29 SS94,2S3 57646S3 5971,276 5300,701 I tort farrdw 1.500% $0 S1,950 ¢,996 $4146 64402 54.004 34420 $5,914 311,325 $14,200 $9,726 Conr6mbn4 $130,000 S134,S50 5139,259 $144.133 $149,176 $15099 S139AID3 5165,91A 5171.1ss 7177,177 $163,375 VAdd.wW so so 6o $0 044$A% so So SO $0 (S7i1A21) 60 Endkm Bolam 6130,000 $264500 5405,757 $560,006 $269,956 6424,@9 6794253 5765.561 $991,176 $351,701 SS70,504 A7/IYaM aWrtllarc.v.dIsY f111aaA,rAM" frec1 1Y41e 47 RWTAL TROIOrvp& SE*Am 0 RATAMRTUM /78QA71NG AND RQ9ACRAM" R95MW FIND LMANM 9%VX CMMM RMRAL AND STXM OPIUM C R65LW Hal salawn ban *" 1.500% faabtu mac 3. wwxhvnk Eed6q Balnce ax. MB"we • 0 Mas. Budd 6IAoe, ■91ACS6Ri4T SM, I oftwfteomm bd,,m 1nRs 1.5007$ awwbutlom VA*wld MH Eadit Balanee 12 13 14 /5 16 17 16 19 20 21 22 $831,497 000% $BSZP9 $917,90! SMA" S94UD $1,6"0,64? $1A33= S1.041p1 $1,130,770 S1,147,32S $1,161,535 812 312 :12,761 $13.10 $13,975 $14,105 $15,260 $15,50! 515,741 $166956 $17,210 $17,468 50 S53J4" N 50 556.106 $0 $0 $0 $65,191 $0 $0 N S0 S0 S0 50 so $MAN $0 $117,109 W 5931,677 SO S94 AM 30 $1A16k6a $0 $1033,922 $1,019,431 $1,130.170 $1,147,325 $1,16035 S1.182AM $854A62 $663A975 5914,914 59464136 5960.07$ $,✓014,362 S1,04%M SIAKG31 11,124,663 $1.164,026 51304,767 $s$MU ;7656 59777 $1,$1$,1927 sw" $692.185 $13,920 S1,S1 51$21,515 $554 )m SOSIM 11944,439 5203.314 $210,430 $7A11 5217,793 $$1%313 $225.410 $233300 AU $241.474 $249,425 $SIM 5254673 $12.380 $267,726 $189,796 3p 1p S0 0956AM SO 30 18 10 (11.147,43-1) $0 $0 5764163 5977,151 51,195,110 $467,379 5692,165 51271186 51,173,214 $1,434316 $558,303 $825,350 $1,105.456 cilr duft fs6e G-10 ANe,6NMGW wLewmrdPMaw4<A-** bmw w 24 RWAL FROMM STACKM RAT AFAUMP DMAIING AND RMUCBMW 27 REWM FUND M[ANCtS 29 9% TAX CREDIT; FEDMALAND STATE $1,/82,003 OFIL431NG l6ERVE moo-bg Kalem $7,2!],668 bMwNtE nifto ISM Ca ~MW ].000% WldidMVA& EndlnR Seance $17,730 MOL Nab= 4/ f Moa &* 6 Mot UP ACNaIi 521,236 BtRiwit bbnu MOB k4nIRR Etanl� Camrbutiont 1.500% wld�dswA Endue 6eiwKe SO 23 24 25 26 27 28 29 30 $1,/82,003 SIX4,55R $7,2!],668 $1,313.73 $1,415,719 S1,436,955 51,45490 11,972,595 $17,730 519,116 $1914" 519,696 521,236 121,554 MOB S21,SSS $74816 10 SO 562,980 SD 50 Sol^& SD 50 80 10 50 $0 1D So $D 11,274,950 51,2.666 11,513.73 $1,415,719 S1,436r91S $1,45k509 $1,572,155 57.59S,94D $1,246,934 S1,2l M 57,315,747 $1,382,498 S1,430A86 $1,480,967 51,532.01 St 186,441 57,163,456 S1,291yl34 51,706,916 1663,U0 SUM" 81,313A66 SIIA@2,M V @8M7 816,562 SAW MAN 59,957 514,715 $19,705 $24137 510,421 62".97 8286,795 SM6A83 $307,222 $317,975 $329104 S340A22 8362.544 so $0 (11,365.331 $0 14 Se f0 (11.622.4161 511399134 SIOIK916 $663A20 8900,999 $1313AU SIAUA" $201.OW $7"576 cwdvm" Afa.ditCy -4 t--yW to—.d A.kilk hp W t Table Ge RENTAL PROTORYPE STACKED FLAT APARTMENTS RENTAL INCOMEAND OPERATING COSTS 4'16.TAX CREDITS, TAX-EXEMCT RONDf ASSUFIPTllOP15 2007 Medfan Household Incase, Famiy of Four 578,700 Affordable Hawing Cost At a 7L of income 30X Na of Bedrooms lbtals 1 Bedroom 2 Bedroom ~ Bedroae i Redman Flousah0ld Size (1) 1.5 Persons 3.0 Parsons 4.0 PYysons 5.0 Prisons Household Size Income Adjust Factor 75'K 90% 100% 10876 UUIityAlbwanal2) S54 S66 S98 5109 of Unib 32] No 73 100 100 50 . Total Btdrodrn 773 73 200 300 200 AFFORDIAI<LE RENTS BY INCCtME LEVEL ~~'~._~W Anrsal Cron IttOOtne 529,513 S3S,415 539,350 542,498 Affordable Matthy Housirg Coat 5738 Seas 5964 51,062 LeatA Monthly tltltity Alkrwanca ~ (s54) f56e~ 5817 (59~ S886 (s1091 5953 Afiordabk MontMy Rent S6e4 An a 635,415 542,49fi f47,220 Ssa.~ ARordable Mondrly Ha>sing Cost 5885 51,062 51,161 ~ 51,275 tilo9) Lau: Mondry utilhy Alktwanee 5554) ~ seat 5994 51,063 St,166 Alfardable Momhy Rent NET oPERATING INCOME Mon~Iy Aifordabilhy LaveUlJo. of Bedroorru Units Rent Gn7ef h~mrne ~ 1 Bad,oorn 22 S68i 515,046 ~ 30.07L of Unite 2 Bedroom 3 Bedroom 30 5817 30 i8e6 524,510 526,580 4 Bt:droan 15 5953 f14,295 1 Bedroom 51 Se31 542,381 2 Bedroom 70.0'J< of Unin 70 f994 169 3 Bedroan 70 51,083 575,610 4 Bedroom 35 51,166 540,810 Tdak 323 5304,014 .ry unn 2 GROSS RENTAL ING'OiME 53,708,166 s0e) (s165 Less: ~~~ S3) • 5.07 , 300 332 ;N1sc. income 5100 Per UnR , GROSS ANNUM. INCOME S3,SSS,060 lESS: OPERA7INGFXPENSES f3tXYuniUmo. 53,600 PerUniWear (51,170,000) 100) (535 teas: Operadng Reserves 3.0% of Open. 8trdget 5400 Pt:r Unit/Year , (f130,000) Less: Replaeemad Reserves NE70PE1tA71NG INCOME 52,219'960 p) Assumes the laser of ItJ1C occupanry standard (13 persons per bedroom) and G Ufornia Hahh a nd Safety occupancy standard Stine person psr bedroom Pita one). (x) Sauce: County o(Ogngs Housing and Community Services, efl iWve October i, 2006. Assumes te nant pays a!I electric heatlnQ, cooking and water hpting and basic electricity; landlord pays water and trash. (3) TG1C requires a 516 minirtwrtt vaeanty ore unless waived based on vacancy data in the market area. or7Lsao A~Ifordebigq Gap ~> FlnsncirB Arolyd~ p~ C-t2 Table C•9 RENTAL PROTOTYPE: STACKED FU1T APARTMENTS DEVaOPMENT COSTS 4% TAX CREDITS, TAX-EXEMPT BONDS Acres (Units Plus Parkir~ 13.00 No. of Units 325 Total LbingArca 319,150 Community Room 0 Total Nd Squares Feat, Residential Unlts 319,150 Other BuIlding Area 0 Total Net Square Fed 319,150 Total Grow Sgrenre fad 319,150 ~(, RrsldereRfai 100.00% Tax Credit Elig. Basis Total (10096 Redd.) LAND ACQUISIi'ION SRE VilORK UNR CONSTRUCTION HARD COSTS CONTINGENCY ARtD-11ENGJCONSfR. SUPERVISION LOCAL IMPACT AND WROCESSING FEES 543 Pter SiUt SF 520 i~rSiOeSF 3155 Ptx Sf 5.00% of Bard C+~sts 7.00% of Hard Cosa 526.05 Per SF 524,350,040 511,325,600 549,468,250 53,034,693 s5,96o,072 58,315,308 53,000 57,saa ;10,000 5693,933 52,776,637 51,362,302 515,000 510,000 530,000 530,000 S25,000 515,000 5100,000 5292,500 50 (11,325,600 549,468.250 53,039,693 55,96o,on 58,315,304 S3,OD0 57,500 510,000 SO 52,776,637 57,362,302 St5,000 310,000 512,000 SO 525,000 . f0 50 50 ALTA SURVEY ENVIRONMENTAL PHASE I SOILS TESTING CONSTRUCTION BOND FEESKOStS CONSTRUCTIONA.EASE-UPLNTEREST REAL ESTATE TAX13 AND INSURANCE TITLE AND CL061NG APPRAISAL FEES REAL ESTATE LEGAL ORGANIZATIONAL. LEGAL MARKET STUDY PdST{ONSTRUGTION AUDIT MARKETINGJLEASE-UPSTART UP OPERATING RESERVE SOFT COST CONTINGENCY 1.00% Pha 5100,000 5.50% 15 Months 1.6096 of Hard Coati TOTAL PROTECT COST PHt UNR PER SF 5110,093,422 543,637,779 5,438,756 5257,347 f 344.97 (1) As of 2006, the maximum developer fee permkted by TUC is the lesser ~ 1596 of development vests or S2 m1111on. The maxLrnrm arerereaunt ttreat can be Included in elig~lt basis K f 1.4 million. Development and tax crept consulting and syndintion costs arc included in the developer fee cap. aty otTukren Allferd~bNfty Gap and teven8ad Finureing Malysis p+ae G13 BONDVTAX CREDIT ADVISOR 530,000 50 TAX CREDTTAPPLIGTIt:1N Fl>E 52,000 50 TCAC ALLAC'ATK)N TEE 4.00% of Mn. Credk 5156,570 50 SYNDIGTIOtV LEGAL 530,000 50 'Cable C-10 RENTAL PROTaTYPEt STACIO:D FLAT APARTMENTS FINANCING ASSUMPTIONS 496 TAX CR®IYS,TRX-EXEMPT BONDS TAX CRED17 EQUITY Total Ellglbk Basis Less: Non-Q~~I1Rad Non-Recourse Finandng Less: Ell~bk AmountVoluntarily Excluded UnadjutLed Eligible Basis Adjutcsd Eligtbk Bath (Mlgh Cott Mee AdjuW QupltNed Bash Tax Coedit RaN Mnual Nbw. Credltt Tax Credft Pricing (Equhy Raised PerTax Cnedk Dollas'j Federal Tax Cnedh Equity (9996) . CONSTRUCTION BOND AMOUNT Constr. Loan Amt Interact Race Constr. Bond Issuance Costs!Fees Average Loan Balance--Construction Constnktion Period Lease Up Period ConstrtpWon Loan Intent--Construction Constnaction Loan Intensst-Leaas.Up Net IrMerest Coat Bond Issuance Costs PERMANENT BOND AMOUNT Nd Operating Income Debt Coverage RaBo . Debt Service Moetgage Term ]nterett Race Chr ofTustln 1.fferdablllty Gap and le+~eraged FlnancingMaiysh 096 1.30 10096 5596 of Agg. Basis 5100,000 Plus 583,637,779 So SO ;83,537,779 5108,729,113 5108,729,113 3.60% f3,9i4,248 51.05 540,688,609 559,393,300 5.509 1.006 60.00% 12 Months 3 Months 51,959,979 5816,b58 52,776,b37 5693,933 52,219,960 1.25 51,775,970 30 yeas 7.00% Pale C-14 Table C-11 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS 4% TAX CREDITS, TAX•EXEMPT BONDS Orange Co. 4% Threshold Basis Limits, 2008 Unit Size TCAC Basis # of Units Limits Total Basis 1 Bedroom 73 $179,727 2 Bedroom 100 $216,800 3 Bedroom 100 $277,504 4 Bedroom 50 $309,157 2 Bedroom Mgr's Unit 2 $216,800 Total Threshold Basis Threshold Basis Boosts Plus: Prevailing Wage Boost Plus: Subterranean Parking Soost Plus: Day Care Center Boost Plus: Special Needs Boost Pius: Elevator Boost Subtotal Boost (1) Plus: Energy Efficiency Basis Boost Plus: Distributive Energy Boost Plus: Seismic Upgrade Boost Plus: Development Impact Fees Max allowed 20% 7% 2% 20/6 i0% 39% 4% 5°k 15% 0% 0% 0% 0% 0% $13,120,071 521,680,000 $27,750,400 $15,457,850 $433,600 578,441,921 $0 So $0 50 $0 4% $3,137,677 0% $0 0% $0 $8,315,308 TatalAdjustedThreshold Basis Total Unadjusted Eligible Basis Requested Eligible Basis $89,894,906 $83,637,779 $83,637,779 (1) Under 2008 TCAC regulations, the total combined boost for prevailing wage, parking, day care center, special needs and elevator may not exceed 39 percent. City oFTustin Affordability Gap and Leveraged Financing Analysis Page C-1 UNRC42 RMbI FR0101m fTACM FIAT AIMPAMI4 OFRATWdG MJDCR AND CUM RAW 4% TAX CRRDO$, TAO" MR %OHM OOUM ON WM la=M aar cpwwkq Ca$ I2d% 333 PSP m1p, For 2.757. 3 ♦ ! 6 7 y 10 11 12 1 2 now Room" 53,7041p Si,SW73 S&W%44'1 53.S1S.111 SOM124 %1%492 $"W f4N1.MS K514"S4~4M.74UN $4,60%.436 111 6PoWAI Ret D4 1�� 573.>m $33.1$1 /33,10% fi7.1a $7;106 53;1116 S3 i WWI 523.14$ 67747!'D 273.70!1 AYlS,90lI 513.106 6271,%%06277,734 6 637.10$ ($x7172 Sim 6119.404 Clio"" M"s ,1199663) 6306640 63pS,77A Wcan FA4lowo %138,120 53.#7!31 "734107 23AMk.71♦ 53121373 UMIL N KI lb439 S42M f4i25r7A S4432.S62 1WAAW $650.777 D1y1dt11 Sacaa! 3300 Mae. a1.170AM (1/,19MM ab239371) 0S.2 %"o 111,MO461) 01.32374% 67,136.#11 ($1,1D.» 61, 4WIl 61.461.770 61.497ASA $1,13.141) op",OCyy 5%3@UW SL444M pMKM S3. MM 53,034,14 S2AMM $2.MAU 12oo VW 21./13,177 SLIn'30 W P4,M "120.132 4406 AA% 15134#4 6u43ia ($17SN911 6,44UA ,11441% 6154.75!1 151346m) ($IAM 0171.1651 (11n.lrn 010313M1 ($7$47901 S6 yUera 3.17Q0. 630.1114 au'win 63vm 677.754 OW44 Ip6F12) 610.7691 I1417A 1M.7W $1.626,7:6 643AW $3.794310 !0 $2161%17 52.974336 �e4Mn6 CAIHROWAMIL MRDSFSM $:,213,19 a1.77S'sm s33T1.v9 01.AS170 52,319131624046M mjXMM at7733M 52,442.149 ,16775.$74 333/4197 61775130 SUMPS 0977100 3L62t1i11 41.7738711 ,17.770.470) 61.775,170 p1.773 om ,11.775974 a13e.1a`FMr1 vn Osd 1.35 126 1.71 134 ,30 1A/ IM 1.44 Id1 1SS DitOdweOMWO $4425 54641N fl37.N9 51$0.810 S"kM $724.9W 1760.106 314/1710 8394795 ""AM 1116f.tl/ 51154 FMO al' A" R,11" ($2/11,1 0171!2 692,20;8 621 M 636101 024101 6143311 07417% W^954 ptt. AwM Ma. fm $30AM 624094 3571.794 5317.174 UU.SMO 5701,661 5761.94 51122336 4#6!41 f94M61 5,.069 2S$ f1.717.417 MO CASA FLOW AFM FAffNE .16GF FM "333'90 WA" 574590 $21.115 $21.6# SIZ291 SUM 533433 $24163 W141 SILDI 124333 SM254 AAaalate 1� dS 1w• teems PC= _ ►�G1t AGWAft GP"I jgpA RYmd7Amh1 AWG/1 fND15MDVDnV51 MCRURATARWhiEWtS OMIATIWCI AMM AND CASIt ROW 4% TAX QEDff%TAWAXW t NONDS EWAA1ATION SATok Itoowwoom of - Cmb 2-V% 19u6 rerrwtiipt.O1. a4 3n14 . 77 14 is is 17 1s 19 10 11 h 11 Zy OaNI /ws C a ftwow 14K 54A07.m4 53.II1.7SI $1,190341 55 IM i &S,3 KIN S7.i41Ai9 $3.10.4► SUN" SUMM s4519,1n SL713,tri $"GAn LK-kp m- 9336m s17.1m 315.im 551,11Y 377,100 MIN 317.14 $13.100 MIN s77,1a0 $11,10 $37,10 71Ka1LLT A0s&ssa 3.007E 4140.150 429AN a81,tW7) 436"M Wnp a a7s1.1111 MWI11 02MAN) 4191%071 all tA09) 4919,194 43VIS74 Nd TArdl4 bmumt: 7'An0.n1 34AELVI 53.030.73 53.13%114 fl.1R.094 57.7904W SS,SnAIo 3&GK M SsA00.s39 K9491,Pt 39.W7,7W V4M4W opmw4cmb S7asiram. 6t,s UM aIAIZA54 151,63.179 (5//0/.504 01MUM atom%" 1 INA24A90 om 1t) a1.9t7,loo 6104111) d"14m 4ba tm emopplaw 31.199.791 37.171A17 31 WAS MAW 3131I "bMItD Si.7MAI0 11,7 W S~71 S3,054,M SL MMI %18012 IYplSowl M Ru@m $400 MK 41964705 0703.110 03144101 0117,7/5) 411!,414 W33,VA *MAYO (3114113) 8290A7O mwgA cri"A07I 41861795) opow"amm 1WN so N ad.M so 30 A 19 S0 4715151 So 50 so t9141MWNWNLMR0l8sam 33AIMO 33A97AM SUVAM 31,171A ID $:100.174 $3jff% t VAN.716 SU444 7 57.6%,190 S%n7A% UANAU $3~7 DvkS.do1rfl InWDr ISUMAM GIMUM 01.773.970 41770A70 01.775.977 a1,TJtp6 111.170A 111775,10 61.775,574 0177"M a1775A70 a177s.970 Dam C, 17011b 140 177 1.74 IAI 1.00 1!0 IAS 103 im 2m LW 1.19 W&Tomm.ow St, 24" 31,17F,t10 SIXIA00 SIAt4N0 SIASM14 $00,02 SlAwtM i19"AR S175417o SWAM 12AMR3 SM 32447 D1ekpwmwA%.h. ""m OVA20 619A37) 414140 1R0.oI0 470.070 CW,7A5 9316m) 6R.4101 634AM 635.1!51 til9,fbs t VAW NROWROWAFRSSAtTNMUMIN 31,191,100 51,15471 SI,ie0,1s0 SIAIV% S1A13.334 5IJM117 S1An 5 St73L0N 6L76tAl2 SIXSJM s1,S94,151 SIA14,nt se.Yn�m A4`.19y ll� lrA 9?tatr�O R7AN SM477 S0,14D 574044 SAW* 831.719 55},501 Moa 0449 9 577,733 $75,727 &37,78 4d%& ►v►�+�w+d0A-h+ti l�.ut WeG11 arm"KNOM& 6RKAfAOAMIPM ORM1OM46 M MOMANO CASH Row 4% TAX Q®fI%TA7 MAWT 10N X OCUMMMson opsq7ce 110'11. A>awsmP A1M6 1- !.7371. x all x a x a MMwa www. c a. rrrrY.I Me+ 66,706.960 154.5464776 37AG6w VM2,7M 17,4030 37 75444!! 63;10 677Jw 677,654 677,/54 !3!.101 6371154 vMMQ, Aswooft SAM 6310430 6343M 63626770) 6361.434 Ova+547► 677l1M+I MAPAWA WOM $& otiwli si7%— 667»,766 66.5474739 $7.06.654 S64+2,109 O^1M cw 6700 MYm 61.11MM IR IASIA 4:423.344 6MW4 66,66 M W.7wlAwl) t4M� mw !461&6154 SI6541.541! 34MAN SOI%W 647747M 64,3o.n! www 6100A00% WNA* 67w6A171 67179671 NMI" 6s1 A= 679l,67M opnftow� 2AM 60 6A 064M 654 60 30 CAM RQw AVAM.. IOM O W MW O.h Swdoea10RT"It O.d 37A91.777 61.773,660► 640N.77M 61.716.910 1411!413 61477.9!01 643WO 61.6771 M 34,IwlAM 61]7L6601 6440j" 6+.79076 0IM C 6 Amb 723 1.70 73! 7A1 L{f am MOCA6HRow 3 MUM 6y611, M 63!1406! 37641.967 { Awn 6L31AM 541,600 MI36)w 64!.7411 MMM 04$,2M DosbWAWN A*hM No CASH ROwAFMIMM MM ACT IN S30Aw 676,1511 6L/77,4SM $1.6!466 3740104 DAM133 37.lf1AM 6l+673y374 MWA w tObMiy M/L 654 6' Aft4 !76.767 67!.400 MOM 341,104 30.746 .116.914 O*di/.. canon Ke.iiitM 4 � r�� �l�li 1We C-13 OMAL PROTOTYM SLACKED RAT APARTMENTS OPERATING AND REMACFA4WT RFSERYE FUND RALAMM 4% TAX CREDITS, TAX-EXEMPT BONDS OPERATING RESERVE 1 2 3 4 S 6 7 8 9 10 11 Be1161ninRBelance =292,500 5331,988 $372,945 $415,416 $459,446 $SOS= $S32,370 :601,361 $652,104 3700,52 5759,057 lol m Eemirds 1.500% $4,386 $4,980 SS,S94 $6,231 $8892 17,576 $8,286 59,020 $91782 $10,570 $11,386 ConMbuNols 3.000% $35,100 $35,978 $36477 $37,799 $38,744 $39,712 540,705 $41,723 $42,766 $43,835 $0 VYKldrawpb EndkW BoWnce So $331,988 50 $372,945 m $415,416 $0 $459,446 $0 $505,062 $0 $552,370 $0 5601,361 $0 $652,104 $0 $704,652 30 $759,057 s0 $770,442 Max. Balance • 1 Mos. Budg: 6 Mos, $Saslow $599,625 $614,616 $629,981 3645,731 $661,874 $678,421 5695,381 $712,766 $730,585 $748,849 REP ACEMEI4TRESERVE egkmk l Balance s0 5130,000 $266AW $409,757 $560,036 $269,586 $428.029 $594,253 3768 S63 $951,276 $381,701 kmng E "*W 1.500% $0 $1,950 53,998 $6,146 $8,401 $4,044 56,420 $8,914 $11,528 $14,269 $5,726 ContdbuOom $130,000 5134,550 $139,2S9 $144,133 $149,178 $154,399 $IS9,803 5165,396 $171,185 $177,177 $163,378 YNdukawtls so 50 $0 $0 ($448029) m $0 $0 (3761,021) 50 Endit BaWntt $130,000 $266,500 $409,757 1560,036 $269,5% $428,029 $594,253 5768,563 $951,276 $381,701 $570,804 Cel C/TLNNM A/uJaMiy Gar aad to ward r-" ma"6 Phr C -I T" C-13 RENTAL PROROTYP& STACKM FLAT APAB'TL4ENTS OPERATINGAND REPLACEMENT RESERVE FUND BALANCES 4% UX CREDITS. TAX-EXEMFT BONDS 12 13 14 /5 16 17 16 19 20 21 22 OPERATING RESERVE 13 inning Balance $770,442 $781,999 $793,729 SM.635 $667,315 $880325 3893,530 5906,933 $920,536 5934,345 51,006,675 InwW Ewr"p 1.500% $11,557 $11,730 $11,906 $12,085 $13,010 $13,205 $13,403 513,604 MAN $14,015 $15,086 Coredbwkwo 3.00D% SO 3u 3o S49,S95 So So $0 5o $0 $57,515 $0 YVdhdra als $0 so So 3o SD So 5o $0 So So 3o Ending Balance $781,999 $793,729 SM,635 5867,315 S880,32S $893,530 S906,933 $920,536 $934,345 S1.00S,875 $1,024963 Max. Balance • / Mos. Buds: 6 Mos. $767,571 $786,760 5806,429 $626,590 $847,254 $666,436 $694147 $912,400 $935,210 $956,591 $982,555 REPLACEMENT RESERVE BeRlanirg Balance SS70AM $769.163 $977,139 $1,195,110 5467,379 3692.185 $927,986 $1,175,214 $1,434,316 5554303 $625350 kneel EankW 1500% 58,562 $11,537 314,657 $17,927 $7,011 $10,383 $13.920 $17,628 521,515 $4375 $12,380 Convintions $189,796 $196,439 $203,314 $210,430 5217,795 $225,418 $233.308 $241,474 $249,925 3254673 5267,726 wwwaye(s SO $0 ($956)088) $0 50 $0 ($1,147,453) $0 $0 & linRBalance $769,163 39771139 $1,195,110 $467379 5692,165 $917,986 S1,17S,214 $1,434,316 5556,303 $825.350 $1,105,456 Cy OFT - w Pap C•2 Aflsdab"G; and law;sd F -m -M Ardpb TAW C-13 RENTAL PROTOTYPE STACKED RAT APARTMENTS OPERATING AND REP ACEMENI RESERVE RIND BALANCES 4% TAX CREDITS, TAX-EXEMPT BONDS oPEanNc 225ERVE 23 24 25 26 27 28 29 30 BaBinning Balance $1,020,963 $1,036,278 $1,051,622 $1,067499 $1,083,613 51,166,568 51,161,066 $1,201,827 Interest Earnings 1.500% S1S,314 $15,544 $15.777 $16,014 $16,254 $17,499 $17,761 $16,027 Caibi6utions 3.000% 50 $0 $0 50 566,700 50 $0 $0 Withdrawals Ending Balance 51,036,278 $1,0.51,822 $1,057,599 $1,063,613 $1,166,568 $1,184,066 $1,201,827 $1,219,855 Mac. Balance 0 f Mos. Buda: 6 Mas, $1,007,119 $1,032,297 $1,058,105 $1,084,557 $1,111,671 $1,139,463 $1,167,950 $1,197,148 REPLACEMENT RESERVE BglinnhM Balance $1,105,456 51,3!9.134 $1,706,916 5663,820 5980,999 $1,313,688 $1,662,498 $2,028,057 Ir11ereN Earnings IMM $16,582 $20,987 325,60! $9,957 $14,715 519,706 $24,937 $30,421 CorMriGAions $277,097 5286,795 1296,833 $307,222 $317,975 $329jO4 $340,622 S3S2,544 Withdrawals $0 (51,365,S33) $0 $0 $0 30 ($1,622,446) Endorg1 Balance $1,399,134 $1,706„916 5663,820 5980,999 $1,313,6611 $1,662,498 S2,OSt8,OS7 $788,576 City o n d. Aaadb6ay Gap and Lawaad Fwanaq AnWyiti G3 7L6ie GT4 RENTAL PRGfOTYPE: S7Al]~ED FU1t APARTMENTS MHP LOAN L1AltTS 2007 t1nW • Unit • AltiP loth Lio$ M Unit Aludmunt MHP Coto Unk Slse ~ of UnOt 307E AAU 60% AMI 90% AMI fA% AMI 30% AMl 60% AMI Total 1 Bedroom 73 22 51 5770,606 545,000 52,435,092 52,295.000 54,730,097 2 Bedroom 100 30 70 1123,930 (45,000 53,710,110 (3,150,000 56.x60.140 3 Bedroom 100 30 70 1136,102 145,000 51,085,460 53,150,000 57,235,460 4 eadroom 50 15 35 1146,697 f4S,000 52,Z00,4SS St,S73.000 13,77S,4SS Toni 323 97 22b 512,439,147 S1q,170.000 522,609,147 Cty d7ie1M P~~e C.22 A!<end~tYllryCry and tewapd Hrwncbt~nafysb 7abk C-13 RENTAL PROTOTYPE[ STACIO:D FIJ1T APARTMENTS RENTAL INCOME AND OPERATING COSTS MHP PROGRAM, TAX-EXEMR BONGS, 4% TAX CREDITS ASSUMPTIONS 2007 Median Household Income, Family of Four 578,700 Affordable Housing Cost Asa % of Income 30% No. of Bedrooms Totak 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Household Size (1) 1.5 Persons 3.0 Persons 4.0 Persons 5.0 Penora Household Size Income Adjust. Fader 75% 90% 100% 108% Utility Allowance (2) S54 S68 S98 5109 No. of Unib 323 73 100 100 50 Total Bedrooms 773 73 200 300 200 AFFORDABLE RENTS BY INCOME LEVEL MHP 8 OD%) Affordable Matthly Housing Cat 5456 5547 5632 5705 Less: Monthly Udiity Allowance (S54) (568) (598) (5109) Affordable Monthly Rent 5402 5479 ;534 5596 1iB Annual Gress Income 535,415 542,498 547,220 550,998 Affordable Monthly Housing Cost 5885 51,062 51;181 57,275 Less: MortthlyU811tyAlbwanct (S54) (S68) (S98) (S1pg) AffordableMonthlYRem 5631 5994 f1,083 51,166 NET OPERATING INCOME Monthly Affordability LeveUNo. of Bedrotmhs Unib Rent Gross Irtcarrhe MHP B C30%1 1 Bedroom 22 5402 58,844 30.0%of Units 2 Bedroom 30 5479 514,370 3 Bedroom 30 5534 516,020 4 Bedroom 15 5596 S8,940 6096 of Median 1 Bedroom 51 5831 542,381 7o.o%of units 2 Bedroom 70 5994 s69,seo 3 Bedroan 70 51,083 575,810 4 Bedroom 35 51,166 540,610 Avenge Affordeblltty 50.99% Totals 323 5276,755 Managah's Unit 2 CROSS RENTAL INCOME 53,321,060 Less: Vacancies (3) sl S.D96 fS166,053) Miscel. Insane 5100 Per Unit 532,300 GROSS ANNUAL INCOME 53,187,307 LESS: OPERATING EXPENSES 5300/unttlmo. 53,600 Per Unit (51,170,000) Less: Operating Reserves 3.0% ofOper. Budget (535,100) Less: Replacement Reserves (4) 0.6% d Construction Costs (S371,012) NET OPERATING INCOME ;1,611,195 (1) Assumes the lesser of TUC occupancy standard (1 S persons per bedroom) and Callfomla Health and Safety occupanry standard (one person per bedroom plus are). (~) Souse: County of Orange Housing and Community Services, effective October 1, 2006. Assumes tenant pays all electric heating, cooking, and water hating and basic electricity; landbrd pays water and trash. (3}TUC requires a 5% minimum vacancy rate unless waived based on vacanry data in the market arra. (4) MHP requires replacement reserves equal m 0.6%construction cosh unless otherwise approved. City of Tustin Afforda6lliry Gap and Leveraged Pirhancing Arolysh g~ C_i Table C-16 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS DEVELOPMENT COSTS MHP PROGRAM, TAX-EXEMPT BONDS, 496 TAX CREDITS Acres (Units Plus Parking) No, of Units Total Living Area Community Room Total Nd Square Feet, Residential Units Other Building Area 7oha1 Net Square Feet Total Gross Square Feet 96 RaideMial 13.00 325 319,1 SO 0 319,150 0 319,1 SO 319,150 100.0096 tal x Credit E1ig. Basis (10096 Resid.> LAND ACQUISITION S43 Pier Sl>me SF 524,350,040 SO SRE WORK S20 Per Site SF 511,325,600 511,325,600. UNR CONSTRUCTION HARD COSTS (1) 5794 Per SF 561,835,313 561,835,313 CONTINGENCY 596 of Hard Costs 53,658,046 53,658,046 ARCHJENGJCONSTR SUPERVISK)N 796 of Hard Costs 55,960,072 55,960,072 LOCAL IMPACT AND PROCE551NG FEES 526.05 Pier SF 58,315,308 58,315,308 ALTA SURVEY 53,000 S3,000 ENVIRONMENTAL PHASE I 57,500 57,500 SOILSTESTING 510,000 510,000 CONSTRUCTION BOND FEESKOSTS 1.00% Plus 5100,000 5771,610 5771,610 CONSTRUCTION/LEASE-UP 1M'EREST 5.50% 15 Months 53,139,778 53,139,778 REAL ESTATETAXES AND INSURANCE 1.6096 of Hard Costs 51,362,302 51,362,302 TITLE AND CLOSING 515,000 515,000 . APPRAISAL FEES 510,000 510,000 REAL ESTATE LEGAL 530,000 512,000 ORGANt7J-TIONALLEQAL 530,000 SO ~~ ~~ 525,000 S25,000 POST{ONSTRUCTION AUDIT 515,000 SO MARKETING/LEASE-UPSTART-UP 5100,000 50 OPERATING RESERVE 3 Months Oper 5292,500 SO encr rncr rnrrriNr:Fnir-v 2.0096 S110,384 5110,384 DEVELOPER FEE (2) 15.0096 of Dev. Costs ii,yqu,~ ~r,~uu,wv BOND/U-X CRFDITADVl50R 530,000 SO TAX CREDITAPPLKJ\TION FEE f2,000 SO TCAC ALLOUTION FEE 4.0096 of Ann. Credit $183,008 50 SYNDICATION LEGAL 530,000 SO TOTAL USES 5/23,551,461 697,760,912 PER UNIT 5380,158 53l>b,803 PER SF 6387.13 (1) Estimated hard costs, assuming prevailing wages, at a 2596 increase In hard costs over non-prevailing wage costs. (2) For MH P projects with tax credits, the difference between the maximum developer fee underTCAG 51,940,000 and the maximum under MHP: 53,137,500 be deferred and paid only out of cash flow city of Tustin Affordability Gap and Leveraged Financing Analysis ~ ~-t Table C•17 RENUL PROTOTYPE: STACKED FIAT APARTMENTS FINANCING ASSUMPTIONS MHP PROGRAM, TAX-EXEMPT BONDS, 496 TAX CREDITS TAX CREDIT EQUITY Total Eligible Basis Less; Non-Qualified Non-Recourse Financing Less: Eligible AmourK Voluntarily Excluded UnadJusted Eligible Basis AdJustsd Eliglbb Balls 0-Iigh Cost Area AdJust) Quallfled Basis Tax Crodit Rate Annual Allow Credib Tax Credit Pricing (Equity Raised Per lax Credit Dollad Federal Federal Tax Credk Equity (9996) 'CONSTRUCTION BOND AMOUNT Constr. Loan Amt. Intere~ Rate Constr. Bond Issuance Costa/Fees Average Loan Balance-Construction Constru~lon Period Cease Up Period Construction Loan Ingest-Constnu3ion Construction Loan Interost-lease-1Jp 7otai Irrberest Cost Bond issuance Cats PERMANENT BONDAMOUNr Nat C-perating Income Debt Coverage Ratio Debt Service MortgageTerm Interest Rate Max. Nbrtgage Amount (DCR) City o(Tustin Affordab[11ty Grip mdtewxaged FlnsndngAnalystr 0°k 130 10096 55% of Agg. Basis 5100,000 Piua 597,760,912 f0 SO 597,760,912 5127,089,186 f127,089,186 3.6096 54,575,211 57.05 547,559,315 567,161,024 5.50% 1.0096 60.00% 12 Months 3 Months 52,216,314 5923,464 53,139,778 5771,610 51,611,195 1.25 51,288,960 30 years 7.0096 516,145,037 Page C-15 Table C-18 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS MHP PROGRAM, TAX•IXEMPT BONDS, 496 TAX CREDITS Orange Co. 49'o Threshold Basis Limits, 2008 TCAC Basis Total Unit Size # of Units Limit Basle 1 Bedroom 73 $179,727 513,120,071 2 Bedn~om 100 $216,800 $21,680,000 3 Bedroom 100 $277,504 $27,750,400 4 Bedroom 50 $309,157 515,457,850 2 Bedn~om Mgr's Unit 2 $216,800 $433,600 Tots] Threshold Basis $78,441,921 Threshold Basis Boosts Max allowed Plus: Prevailing Wage Boost 20% 20°Yo $15,688,384 Plus: Subterranean Parking Boost 796 0% $0 Plus: Day Care Center Boost 2% 09'0 $0 Plus: Special Needs Boost 2% 0% $0 Plus: Elevator Boost 10% 0% SO Subtotal Boost (t) 39% Plus: Energy Eflicienry Basis Boost 4% Plus: Distributive Energy Boost 5% Plus: Seismic Upgrade Boost 15% Plus: Development Impact Fees Total Adjusted Threshold Basis Total Unadjusted Eligible Basis Requested Eligible Basis 4% $3,137,677 096 $0 0% $0 $8,315,308 $105,583,290 597,760,912 $97, 760,912 (1) Under 2008TCAC 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 Malysis Page C-1 Ltlt6M SOW ROTOW16 SMOUD F3A•APAW ADWS OISATISIG 1000E7 MVD CAVA ROW A" ROOM W/TAX IMMIT OONDS WALATION 1A74c 119tlINltM1 2j" opm" ONe 3.941% )rMbNhpA6¢ FM 7.79% 1 ! 3 6 ! 6 7 1 9 Nl 11 12 lrrtl 1.6wr GNM hMWW PANt f3 771pto 53.016W SX4ftl W 1304611• 73.624171 A MOS $!.11.411 $XWAW 54014!69 K147AO S4i91.239 1490.9H LNAW CO- 157.30 M"ll i37,10t 4x4101 29401 $x1,)0! $W4111 19LIM $33.101 S77-10 S31,10 $17,10 mmLVANw am 54O% 6100142 61702061 0171690 617403 6187!0 GINA74 619LW11 61WAM GWVI% WW.377) 0212,M7► 0217,2750 No%not' A.In.3D7 53NAM $7.367.!37 S3, ARS 53X%" A.14L70 SI.MIA61 SWARM DAM117 S3,17;Y/9 S401.N3 $417!,790 o$wa tlw 5799421.% 61.110006 61121495" 6.2536 3) OIJO.3= 61.342.1"0 61AWlM) 01.424216 61A0ASt71 61.5%46n 61,611,910 61,254600 (S1.70.1651 smopNdglt2 m PAIl3W ! AKM f5A147O3 S16177= 77!,17400 =13,115 0293 1S1 KUl 57334611 S7 MAN 1>I,01,70 5311726.60 2�1Nn19 $1,142M11t GRIA111 63DAM WWAV) 6111,947) 6705.7" SOMAWO *"M. 6672.00 6AMM 0309.6611 COMM W41AM Ojnt191$1o�w 3.041% em"ll 654326 $PAM 631,!10 664770 040M 044167) 664467) 6642101 667770 664512) $0 044%6 ROW lal os$ stttl $1,111-1115 SIA3s.7I4 17A7716M SIA14242 11.M1111) SIXJ4m S1,734$Dl s1.7JL16a SIA06731 1708,74141 $1.14632 Sl w2M9 0161smvbt-fb*T"Dmd 6l,»14Mq 61.24640 61,264110 WAW.996 61.71.970 GIABOAM 61,10, M 42.7/4164 61.20.916 61.70.!6!♦ 61.7141" {51.21.101 D"cwwwll6o US 134 915 131 132 1.54 lit 1.11 1.0 IA2 I.A3 1,11 NuCAB"ROW an.= 5364766 7375106 71!4242 $611060 566403 "W," 5414342 SS131774 SLW40 $954%22 $BXM DaP14WA.dhWrM $now 6341 674590) 421.110 631,00 62=70 42L/M1 11"11 142,1511 WOO C52LS311 6347]0 674SS0 PW OWI ROW MM 1996 At= F3 tn"21 7374217 534%M U74M 7367,70 5414916 164200 NNA52 S07,591 $310170 77n" UWAlS 11I - Is Oehni Dwokpw N6 Fit WJ07Af 6774711 6744710 6MOM $D 10 0 SO ID M so $0 WET OW ROW A"M DMRM DIM FB !0 50 D SIM916 5799.7" $4149K $442A0 s4lam $607,931 $310,70 SM 321 1MAN AYli2l0 MtN�AI/.796 $7400 MIN) 521.715 221036 07.211 171,16 $27.9!9 5201%3 $24" S2SAM 734733 $24"1 D2in6i rFa+Odn $Ms.= $%NM1 7719.270 to 70 W M ID A $0 $o SD 7>yl>1� Al�YnrCMwllw�Pi h,."o1 MM26 7+nw+ Win C." MNfAIF90:OfFl6 SGdIORATAFABM94IS OFMi0MA0 BUDWAN0 CASH FLOW AOM F000RAM W/TAX !» SOBS RdlAslOk RA1B, !laws m - LM opmeftcam Lm hoom n NW FK 2.73x 11 U tS 16 t! IS 19 10, !t 22 b _ M flow ft ww Gs Awwddswi $4464436 54 MIIN 54AMJn f4MLMS $4974177 %013.7$6 Is.►74776 $s,lM,3U f6M1.lw 61,577,992 13.337,47 SS.$i4.771 $33.10 177.101 W.1M 677.101 $3&106 f77.IO1 631,106 $33.106 133.1M 03.106 "MIll $33.10/ V&CWVCyA§DASM9.0011 6:7;7!]) a77�90$I 43MAZW 0710,90034LU l 11253,60 USIA* WK4611 CM724M 069077$.0) a76%SM 061193/1191 I/davow c>aM $4.214711 $4,761,71! 140633,10 114®7,5 fA.7747)7 f4U7,M f4937.M $S.W(91O $1.7W.069 f1,337.70D 61.K46n SSAOMV OFmAn6CM11 17DD Afisn ISI.MAW OtA246>q O1 111,071 almals" 07AUA4 07.001.7%06 aL17:.7Q> 087061 m (I7.3MA67► 02,AD. us OL4U.U4 06LM1.19q Nd !7.$04$!1 $LH7A61 $1,!1111,177 52,42.30 S%6p,M9 $1,7540" 3.71409 UAV.M s wowNip' $1,9Q2 665 >Z !74609 $3,19 713 51,142 MI/F 0914674/ R$145?40 13fO4S'� !82!.$74 pW>,fl0 01666.644 41614!!O 11111,733► 067747631 11.11141,741 1176gnq 0614,!.) lam 0.11,0110 ss M OMAM s0 $0 O "ll fs so fo 117411q so CAMRMFMDWOM $1,161iM f1AF7.74s $1.91410! sI.661./6l ppKW 0A6Ww $2,026,371 11,114,367 WMA" $1,194593 $7.104177 $22"1 OeAllm o 4YasrrlAnd 06+.714/14 01,7$404 al WAM1 01,30.'x4 01.26404 dl.ULUO a1,7M,1i0 41,307,964 0IXUW ISIAM 4 61,26B.M4 01.2M.9/11 DlkCwwge9a66 IA7 Ii2 143 1.92 I!9 IAO til IJ64 lib 1.17 Ii] 1.21 MCCAMROIN SHEA". sows 11WAU 103AN $77460 $7!!.197 sm"I $0%,W $W^ 104612 SMU17 MOAN n. 6 AtlwAr.rlw OWN OVAW !3%4m O24W 074044 axwo 10.710 1121,01) SM640 a34AM1 634Mq 0343271 1177,7!61 wrom RO41FAF1H100 imt O ! sfl7.972 6194,27 1674422 IM W 1764610 $7474" $704679 $791.611 .113.297 5614277 1779,90 W4.5]2 f ywAFAI60drMOwtsapw0rts s0 so SWKSIT IO SOL422 to "0,957 s0 $1,2010 $0 sm."I s0 $70401 10 f7 Als $0 $60.297 so SU4337 s0 $7741$0 $0 $04,912 MFp191ROWAn10OlFMOOMF9 SMp2 Aypii161lglyww64* MRaeIwM $VAN 62$.417 WOOD $34044 $7400 s31.719 f9LfR MOM $"Am s3sis9 114727 $77.326 OlkadO■d.^rdAhf s0 $0 $0 M so so ID $0 $0 - s0 30 s0 OydsAle IYpc n W*G10 mmU P0O971S16 wmam RAP AI me81 Ol8ATIMC 9UO W AND 0191 ROOM 341►►lOG1AYW/W Ellm" BONDS 11n1LQ10N RAMIN bcv1l011- ism O1r"Gl1 1s0R rm Wa+p WqL hs 17511 ri 16 27 70 >9 to Gam rvap ftv S"WW 451PASO 1531518 $5060,761 $03%10 16.19530 L--V1C*1► 131301 MISS 113.101 133.110 W,18 "1110 v1ORLY P" is holt 90059" MW ASS) 651111,3401 MIMAIM 9591,5 it 971501" Nd Am 0d •coil 15,7H.111 13,0Q.74 1[075511 14171,130 sgd3 AW 1511511/ 4m8Rc" wo Al w 11;1",1344 91764fA1 97,8+.7► WAWA" 11►AMM) 97.17;0") 1i1Op1dr00w SkditT36 11.3111317 111657" AM44W n2vA40 13715610 1►1MmRvw 1111171 11,113 4*6 91".1173 901,PM QW.11% 40%M) 9177,1131 111,00413* X101"1 R.O11 ]AM io 9151301 s9 m MIAM 10 OWI ROW POOR OHP ORK 44,331,014 11111.316 93,714795 17.777159 11:115/79 11.110.301 Di11wnb4%dTm*Dnd O1,764lM 910290.901 91/05011/ OL2089 91/",130) 91,7",969 Rub 147 1.67 173 177 1.71 179 WITCASMAJOW 1159"61 0015116 "MM 14105790 1911911 11,011.511 DripwAmw#vLRs 575000 ISMAS30 935/0+1 915131) 911.1044 944+193 "AR40 NPPO167IROWMIMMIM1lLUCLIVE 1610701 1075300 1373.10 SSWUN 1674171 H77i/7 Py+rolo OMwWDrakp-"ftm so 10 30 10 0 10 MTC%MR9)WAFrM=WEOOMM 1107710 074710 1335M7 1!16,101 117401 1677611 61i+�M�'i*OM.Pr li31Y1O "4333 135117 514191 $41,101 1Qa0 $45901 Oabr06Dwdgwmalimm ncl 10 10 30 111 JD 10 a+>` •Ir .-4 G*r t-m'wr--k4A*Y FOC -33 1rih C40 RR14TA1FSGWX re MOMD 1,01APARTURM CrOY HAND @MLFJN41 NSOM MIND &MANM MN►PROGRAMW/TAX VMWT BONN S 6 7 1 9 10 71 1 2 3 4 OPGRKFMMal I � 1292300 5331,18! 1]73,446 $414AW 3461,69! $so 57A33 $56$„182boradfamm 56.371 Si09J02 1!746 5662.501 591953 1719.577 $1%795 $77�3t0 $11,675 1500!6 SUVA $35,100 $4.5110 $34329 65,599 137,6W 54247 134916 $4925 $4q.T16 541,660 647.147 $44,697 144710 $47,038 M512 convibudom 3.000% $0 $0 i0 $0 50 $0 $0 50 i0 50 SO yy*Awmis lowbmswaice X31,98$ :371,096 $414495 $41AS9 SMA62 $550.182 160!,702 5661,501 $719,677 $770,310 5039.497 Max. $Aavm 0 8 MOL 8.df 6 Mac $3$5.000 5606,475 $6X667 S54U= 5671,301 5644.796 5719,114 $744,263 $770,333 $797,295 1025.200 MRAC MN4TAYE $0 5371,012 5747.58$ 11,12%MS $1517,774 31,911,332 $711,!33 $1.161,777 31,331,210 11947.530 $2,$35,755 y4y� 1 900'�i $0 $SISI: $11,114 S14"7 522.767 SNA71 $11,730 $17,171 $232!0 12!,213 535,216 y�al 1 5371,012 $171,012 1171,012 5371,012 $371.012 5371.012 SMA12 $371Al2 $371,012 5371Al2 $371,012 CoOriVkft 60 50 S0 30 $0 K7A9.2421 i0 50 50 S0 SO MIRl�drw.ala 6771,012 $747,50 51.129,015 $1.517,774 51,911,552 $761,995 $1,164737 $1,317,220 51947,530 S2,347,75S $2,757,963 car onEft b AN.&wkr owp-8L".wi4 F1I A-** I" C.21 FAROMFROM F STACKID3RATA1BKIMEM O►RAmM AND R.RACumm REBOW FUND MLANCES MX►1ROGRAM W/ TAX OMM/f N~ 12 13 14 1S 16 17 is 19 20_ 21 22 RI#NWARawwrmo $139AW $!52,009 {917,905 1931.677 S945AW 11.16642 f1,G13922 f1A49,431 11,130,370 $1,147,323 $1,164,535 ImAeoEn ral 1500% 112,392 $12,7x1 $13,769 $13,971 114,18S $15,2x0 S1S,S09 515,741 $14%6 517,230 117,462 CYIl%kdkwa 3•OOri SO $53,0!9 19 $D $51ADS $0 3o 165,196 $0 $D 3D VvdA 1w b SD $0 10 SD SO SO $0 !0 50 SO f0 EfAftOBINCe $8121m 3917905 S%IA77 S91S,6S) $IAII,642 SIMLS02 S1A4 31 $1,190.170 $1,147,325 S1,164,S33 $1.162" Mm Bob" • 4 Ma, Body 6 Mac. $IS4,IM SM,9n 5914,914 5946936 $900.79 S1.M4,3M $1,0"AIS 11AW631 31,124 663 $1,164,026 51.204,767 WRACNOW 19NH34 ByUM1icOoww= 12,751,961 590.118 S1,M5,577 St,730,097 $2.1369% 5293W 12,9496104 S1ANAN $1,391,137 $I MA36 S2,1FQ794 Mru�Fa11, 11 1.500% 141,310 $14A47 $20,22! S26AU $32.04 338100 $44.337 $I$Nfi SZOA67 326,746 132,772 COM&NOW 1171,012 S371Al2 $371,0/7 $371Al2 $471.2 $371,012 SMA12 5371.12 $371.012 S371Al2 1371,012 wtok$ r.la 62,2W,10 111 50 10 30 $D !12,159,2631 $0 SO $0 $0 EnftB41ma 5963.118 $1,346,577 $1,739,07 62,136,926 52,539,992 52,949,104 SIAOSA69 S1.391,1S7 51,763A36 $2,114794 $2914,51a I" C. 6 6N mrmarortft SF CMDFIATAMRmm OMMMING AND 6 WMU M143 ULANCB 6 SEM F1M1D MFR POOGUM w/TAX OM M" K MDf 23 24 25 26 27 16 29 30 ogpk1M16e1w" S1.182AN $1.274,SS0 StAUA66 51,313,073 $1,414719 S1.Qi,95S 11,412506 f1fTlaSS ho"FAmb" 1500% $171730 $19.118 519.405 319,396 ULM S21,5S4 124676 123,565 Cade 3.0001E $74A/6 90 50 561,960 50 i0 $0 591,9" SO so m WWWRWAN to Llsece 50 S1,274.ff0 S0 51.293.666 S0 $11711,073 SO 51,613,719 1D $1,494955 S1.45MM 51,971.155 51,595,910 MM SAM= O e MM/. kWV 6 Mos. $1,146.134 SIM"77 51,335747 $1,362.4!6 $1.430,662 $1,49%W $102AM $1.164419 FARACUAPIF E611R - B"Ow $2,364.$16 52,964.297 S1A14.7161 ft.401,019 tt,749A1f $2.194154 32194.660 53004.7$4 !>+ 1-4M QmrtN1AMN ri4J66 $371.012 S419►4 $371Al2 515,221 5371,011 521,015 1371,012 524666 S371A11 S32,664 3371,012 134922 $971,012 341A7t $371Al2 vtkb&WA is 6wft Bsia m So 52.994797 15 A"A ll 31.014766 V 31.401,019 Sb $1,M.O" to $2.194.154 $0 12.994A30 m 13.604.764 So 53.420,646 AbMl161I �f ad l�"4� Rw���/� R"C-33 APPENDIX B REFERENCES CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 REFERENCES A. Documents 8. 1990 Census Report. U.S. Department of Commerce, Bureau of the Census. 9. 2000 Census Report. U.S. Department of Commerce, Bureau of the Census. 10. Comprehensive Housing Affordability Strategy for Fiscal Years 2007-2008 to 2017-2018, David Paul Rosen & Associates (DRA). 11. Marine Corps Air Station (MCAS) Tustin Specific Plan/Reuse Plan, Adopted February 2003, Amendments through June 2007. 12. California State Department of Finance, 2007. 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 Needs 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 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 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) 777-4653 12. Karen Roper, Homeless Prevention Coordinator Orange County Housing and Community Services Agency (HCS) (714)480-2841 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 APPENDIX C MAJOR EMPLOYERS IN TUSTIN 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 Power Supplies 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) 838-4444 205 Glass & Glazing Work 14321 M ford Rd -Tustin 92780 Costco 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) 669-5880 200 Hospital 14662 New rt Ave -Tustin, 92780 Vitatech International, Inc. - (714) 832-9700 178 Pharmaceutical 2832 Dow Ave -Tustin 92780 Pre arations Home Depot - (714) 838-9200 154 Retail 2782 EI 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) 730-7301 - 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 Deparhnent, and Orange County Workforce Investment Board 2007 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 APPENDIX D ORANGE COUNTY BUSINESS COUNCIL 2007 WORKFORCE HOUSING SCORECARD CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2008 n t' ,• 'ate ~~~ ° ., ,.... ~,J,.. _ ~~ ~ ~~w _ ~ __~_ r. anew ~~ ~ . .M ._ ~_ ,. ~~-~~ ORANGE 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 Hill, 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 Lifesciences Corporation Elsinore Homes, Inc. Experian Farmers & Merchants Bank First American Title Company Fluor Corporation Ford Motor Company Freedom Communications Inc., Metro Division Gibson, Dunn & Crutcher 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, Inc. Manatt, Phelps & Phillips, LLP Merrill Lynch Michael Brandman Associates Morrison & Foerster LLP New Century Financial Corporation Northwestern Mutual Financial Network, The Waltos 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 Credit Union Orange County Transportation Authority O'Shea, Divine & Company, Inc. Pacific Life Paul, Hastings, Janofsky & Walker LLP Porter Novelli Poseidon Resources Corporation PricewaterhouseCoopers LLP 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 Paul Merage School of BusinessNC-Irvine The Robert Mayer Corporation The Showpros Group, Inc. Toshiba America Electronic Components, Inc. Toshiba America Information Systems, Inc. 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 Quiksilver TABLE OF CONTENTS I. FOREWORD AND ACKNOWLEDGMENTS .................................................................1 I. 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 Table of Contents il:. ~ ~ R 3 . Y i ((' T~~ per. • ~r ~~' t 4 '~ !' 1 ~F w ^. i •. 1 c ~l ~"'" • ~ ~ _ °- - ~-- T- F ~ ~ d ~ia- ~ , 4. . ` ~,- ~t~. _s~r i.~"' Skyline at MacArthur Place/ City of Santa Ana - Table of Contents OCBC Workforce Housing Scorecard 2007 OCBC Workforce Housing Scorecard.• 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- bility. 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 ~ rir ~~~ ~ 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. 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 UC Irvine; Ray Silver, Executive Director, Orange County League of Cities; Dr. Scott Bollens, 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 II. 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 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 arriers 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 1 5 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 1 5 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."Z Baldassare wrote that passage in 1986, when Orange County's population was just over 2 million resi- dents. Fast forward to 2007. 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 b z Mark Baldsassare, 1986, Trouble in Paradise: The Suburban Transformation in America. Overview OCBC Workforce Housing Scorecard 2007 .. - 4 ~~~ k .... 1 P, k_ .j 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 $185,000.3 Despite the recent cooling of the housing market, the median price for asingle-family home in Orange County at the time of this writing is $634,000.' 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. a Apri12007. OCBC Workforce Housing Scorecard 2007 Overview 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. 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) report6 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 ." Recent Census data show that the number of residents compre ensive ana ysis o e s a e o coun y between the ages of 25 and 34 dropped by nearly 1 2.7 housing, it does address the crucial relation- percent between 2000 and 2005, or nearly 59,000 peo- ships among housing supply, workforce development, affordability, and business com- ple in five years. This rate of loss is nearly four times the state average. As expected, the number of children petitiveness in Orange County. 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 35.0% pOC%Change u 30.0% ^ CA %Change 29'9/ 2 5.0% 20.0% 15.3% 15.0%', 4Z% 9.1% 12.3% ~~ 10.0% 5.0%~ -- - --- 0.0% - - -- -5.0% -2.1 % -4.7% -10.0%~~-9.6% -6.a% ~_3_2~LOZ°la_ -1 5.0% I' -- 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 2007). Overview OCBC Workforce Housing Scorecard 2007 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 h I fth t t f t r 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 11 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 for 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. ©The 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 Triangle Source: ACCRA/Council for Community. 300 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 2007 0 50 100 150 200 250 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- tio is below average and merits a C. Any ratio greater than 1.75 merits a failing grade. a Cal State University Fullerton, Orange County projections (2007). 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 I i rv ne A S na anta Aliso Viejo Rancho Santa Margarita G d G j en rove ar Orange Mission Viejo San Clemente ~ 200 5 i _ Lake Forest Fullerton ~ ®199 1-200 5 Grow th Laguna Niguel Tustin B h H ti t un ng on eac Laguna Woods_ t M C os a esa Newport Beach i r W t t es m ns e Yorba Linda Buena Park i L H b a a ra 0 50,0 00 100,000 150, 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 Scorecard 2007 Figure 3.2: OC Total Job Growth Leaders (1991- 2005) 250,000 200,000 1 50,000 100,000 50,000 0 ^Jobs Created 1991- 2005 ^Jobsl991 1~1+~~~1e ~i~~~a~1~10~1 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, 168 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. Viejo S. Clemente Lag. Beach Tustin B. Park RSM SJC Irvine Y. Linda H. Beach N. Beach Lag. Niguel La Palma M. Viejo Orange C. Mesa S. Ana OC Median Income Growth Home Value Growth r 250% 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 Irvine Anaheim Santa Ana Orange Fullerton Costa Garden HuntingtonNewport Mesa Grove Beach Beach 0% 50% 100% 150% 200% ^ 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); ^ 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 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 1,1 50,000 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 1 58,000 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 _m _-_ _----------- --------------~~- ---- 350% 25,000 300% ~ New Houses 250% 20,000 -i-% Growth 200% 1 5,000 1 50% 10,000 100% 5,000 50% 0 0% `,\~2 o`~y~ ~~i~° r~~~ ~~~ mar mar ~~il° ~yi~~ a~~~ e~~~ \°iJ~~ .`.y,~e~ ~`~oo Pia ~\~aa ~~~~a ~ ~ ~ P. Pia ~0 ~~ ~. ~ Oc ~\~~ ~~ y~~. ~~~~ 5• ,, Q\ac, ~,a ~• y~e 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). ure 4.2: 1991-2005: OC Housing Leaders...Trail Job Growth Irvine L. Forest A. Viejo Anaheim RSM N. Beach H. Beach M. Viejo ONew Houses Tustin _ Orange ^NewJobs S. Clemente L. Niguel Westminster Fullerton S. Ana- Y. Linda- 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 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 jobs to housing ratio. Figure 4.3: New Jobs Created per Housing Permit Granted 2000-2005 s.o 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 tOrange County California United States Sources: Hanley Wood Market Intelligence (www.hanleywood.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 2000 2001 2002 2003 2004 2005 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 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. Figure 4.5:1990- 2005: OC Cities' Change in Density (Leaders) A. Viejo L. Forest Tustin Stanton Placentia Irvine i L. Hills Westminste N. Beach L. Niguel ^ 1990 S. Clemente Cypress H. Beach 02005 M. Viejo Orange- L~ Habra ®Change in Density OC Median 0 1000 2000 3000 4000 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) Laguna Fins Villa Park La Habra Stanton Irvine Anaheim Laguna Niguel Tustin Garden Grove _ M fission Viejo San Juan Capistrano Costa M esa Westminster Buena Park Brea Seal Beach ORANGE COUNTY M EDIAN ^ 2000 % Overcrowded ^ 1990 % Overcrowded ^ Percent Growth 50% 100% t50% 200% 250% 300% 0% OCBC Workforce Housing Scorecard 2007 Supply Trends: Housing Growth in OC, 1991-2005 E~~c~~in~J my ~OrlStr~intS; ~~~~~~j "~~-~~..°~~it~,~, II°l~i~i, art ti~~ ivlytFt 0~ Beim ~uiEt'~r~f 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.10 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 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. " 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. iz 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) 11% 0% ^ Single Family 7/ ^Mutti-Family ^Commercial ^ Vacant 2 ^ Industrial 19% ^ Agricultural Given the substantial impact that land scarcity has on housing prices and the aforementioned capacity for infill development, Orange County'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 space to accommodate continued sprawl of single-story, single-family houses. If instead the discussion accommodates differing types of housing units, we find ourselves 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, vibrant 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 lack 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, 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 - 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. 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 ^ 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 CEQA, 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 2.3% 7.8% r .v .~. 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 lower-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 1 7,000 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. 13 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 atwo-bedroom housing unit averaged $1,317. 15 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 52,81 5 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 1 5 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. "' The Statc 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 2007 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 35,000 30,000 25,000 20,000 1 5,000 10,000 5,0000 35% 30% 25% 20% 15% 10% 5% 0% . ~ or ~~ ,~a ~~~ ~~ e. ~a ot~ oc t~- as or •~o ~~a ea ,~~~ a,~e`~~a \t~~~ Q',`J~ ~t° ~aco'~ \\~t'~~aJ'~ a a~~~~~a J` Ja Q,~ .\,~~ Qty o~ a~ ~~ O ~'`a FJ 5 ~~ ,oa ~~..`~o '`~. ~~ J~~`J~~ ~ Vasa Lo Q~J J~~y~Qo ~ J~~a ~~~ 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. 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 50,000 100,000 150,000 200,000 250,000 300,000 350,000 OCBC Workforce Housing Scorecard 2007 Orange County in 2030 Figure 5.1:2005- 2030 Population Growth by City (Leaders) Figure 5.2: OC Job Growth: 2005-2030 Figure 5.3: 2005-2030: OC Housing Projections by City 30,000 2 5,000 20,000 15,000 10,000 5,000 0 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 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. ~\,~c, ~\.~ Sti~~ Pcr Pia ~~e Pur t~o~ .\~Aa ~~~P ~Sa tea ova, ~oO ~tiz SAC 0°'~ ~t P~Pr ~a ~ 6~ 5. D~a ~ 0~ ~a~~a, y ~, Q\PCe C ~` ~ ~ Vy ~~a~`\~~~ ~ Ja 5• 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 workers without homes to purchase, many will be forced to commute from outside the county, result- ing in increased commute times and traffic congestion. l°he Fa9C~ut ~f ~r~.nge Cc~untyss Exp~nsiv~ ~€~I~scrl ~rk~t 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 can 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 Import 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 need to replace the baby boomers on their respective payrolls once they reach the age of retire- ment. 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. Commutes 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 Scorecard 2007 Figure 5.5: OC Employment Magnets (2005) 1ao,oao O1obs Within Jurisdiction 160,000 ^Employed City Residents 140,000 O(jobs w/in jurisdiction - employed city 12annn residents) Irvine Orange Newport Brea Costa Anaheim Los Laguna Santa Ana Beach Mesa Alamitos Hills 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 Qobs 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- ies in the county.1e Figure 5.6: OC Employment Magnets (2005) _ -..._ 160,000 - ___- pJobs Wlthln Jurlsdlctlon 160,000 - _ - ~__ ^Employed Clty Residents 140,000 t](jobs w/In Jurlsdlctlon -employed 120,000 - city residents) - 100,000 80,000 F 60,000 40,000 20,000 Irvine Orange Newport Brea Costa Anaheim Los Laguna Santa Beach Mesa Alamitos Hills Ana 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 'g Thel l cities not listed constitute "the long tail" and have between 1,000 and 10,000 more workers than jobs. OCBC Workforce Housing Scorecard 2007 Orange County in 2030 tightening of credit in the mortgage sector. As such, rental occupancy has increased in 27 out of 34 Orange county cities.19 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. Based on an adjustable interest rate of 6.48 percent - Orange County in 2030 OCBC Workforce Housing Scorecard 2007 $zoo,ooo s18o,o00 $160,000 S 140, 000 S 1 2 0, 000 S 100,000 S 80,000 560,000 $40,000 $ 20,000 SO Figure 5.7: Income Needed to Afford Median Priced Home ($710,920) Compared to Typical Salaries Orange County, 2006 Typical Annual Income Annual Income Needed $145,680 $57,782 Elementary School Teacher $70,052 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.2z Orange County Business Council Workforce Housing Scorecard, 1991 -2005 rou o O ~ ro- __ ~ ~ a+ ~ ~.., ~ ~ .C V 01.~ ~ul VI E 3 ~ 3 ~. o oL VI VI w ~ o~ o 0 I ,n ~~ 0o C c b 3 a, roo Rank Cit Y u I-u 0 x~x ,x ux 1 Irvine 26 1 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 1 3 7 Mission Viejo 42 11 8 9 14 8 San Clemente 46 12 1 1 12 1 1 9 Westminster 46 15 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 66 5 14 27 20 18 Cypress 68 14 23 21 10 19 San Juan Capistrano 69 25 19 8 1 7 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 1 5 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 107 34 30 1 7 26 30 Laguna Beach 110 24 29 29 28 31 Seal Beach 117 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 'Z Note that Laguna Woods has zero jobs in 1991. The city was incorporated in 1999. - The Scores OCBC Workforce Housing Scorecard 2007 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 place 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 Rank City 1 Anaheim 2 Irvine 3 Santa Ana 4 Tustin 5 Newport Beach 6 Orange 7 Fullerton 8 Brea 9 Placentia 10 Huntington Beach 1 1 Cost Mesa 12 Stanton 13 Yorba Linda 14 Cypress 1 5 Fountain Valley 16 Garden Grove 17 San Juan Capistrano 18 Aliso Viejo 19 San Clemente 20 Buena Park 21 Laguna Woods 22 Westminster 23 Laguna Niguel 24 La Habra 25 Laguna Hills 26 Mission Viejo 27 Dana Point 28 Villa Park 29 Lake Forest 30 Rancho Santa Margarita 31 Seal Beach 33 Laguna B 34 La Palma o ~ '~ v > ~u mp ~ o c ,~ ~ ~ ~, rn - ~ c ~, c ' _ o a+ a, c .. 3 ro3 «~ o ~nou+ ,~o ~ cav, 3 u o L I-u O,~ O x ox o~ roc s 0 d uxo 13 5 2 3 3 16 1 1 13 1 32 8 5 10 9 32 2 3 23 4 I 33 21 4 2 6 36 11 6 8 11 42 10 8 11 13 43 12 12 12 7 44 25 10 4 5 45 4 7 19 15 ', 50 7 11 20 12 51 30 14 5 2 51 31 9 1 10 61 6 18 29 8 61 13 17 17 14 62 23 13 7 19 64 18 16 9 21 66 16 19 14 17 66 9 15 24 18 73 15 20 18 20 85 29 25 15 16 86 14 21 27 24 89 19 22 22 26 90 22 24 21 23 93 17 26 28 22 95 27 23 16 29 101 24 27 25 25 101 34 33 6 28 102 3 31 34 34 114 26 28 30 30 114 20 29 32 33 116 33 30 26 27 122 28 32 31 31 131 32 34 33 32 OCBC Workforce Housing Scorecard 2007 The Scores The Orange County Business Council Workforce Housing Scorecard, Cumulative 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 2007 '4R~'9' m'*, Jv '7? f Assessing the State of Housing in Your City 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. OCBC Workforce Housing Scorecard 2007 The Scores Orange County Business Council Workforce Housin 1991-2005 Rank City 1 Irvine 2 _ Tustin 3 Newport Beach 4 Anaheim 5 Huntington Beach 6 Orange 7 Aliso Viejo 8 Placentia 9 Santa Ana 10 Fullerton 1 1 San Clemente 12 Stanton 13 Brea 14 Yorba Linda 15 Cypress 16 Costa Mesa 17 Westminster 18 San Juan Capistrano 19 Garden Grove 20 Lake Forest 21 Laguna Niguel 22 Mission Viejo 23 24 Fountain Valley Laguna Hills 27 Rancho Santa I 28 Dana Point 29 Laguna Woods 30 Villa Park 31 Seal Beach 32 Laguna Beach 33 La Palma 34 Los Alamitos m E u 42 69 74 - 87 91 93 97 104 108 112 115 117 120 129 132 132 133 134 135 137 137 ~ 149 153 171 174 a 178 190 217 228 _ 231 232 238 238 .c os 1 4.~ :° o Hu` 1 16 9 2 8 4 22 3 5 12 31 19 23 14 6 15 25 7 10 20 11 o c ro '~ bu o O x rn- a 'vf O VI O O ~ ~ ~, .n ' 04.0 om xox ~~ 1 18 9 3 5 13 4 24 6 15 10 25 2 2 17 19 15 31 14 27 11 12 25 6 21 16 16 5 23 21 22 30 13 10 19 8 _~ 18 26 V 7 11 12 4 8 9 26 20 7 28 24 14 18 28 28 27 3 1 21 27 22 30 34 34 32 33 32 33 32 20 24 29 29 34 30 17 29 31 33 retard. Cumulative 2005-2030 'v ° ~ ' '' n c ro ~ c c4 rop c c0 • a, C1 ~ ~ o ~ ~+ C a+ .~ ' 2 F+ a, C1.C ~'^ ,0 3 ro3 ~+ p ~o~ ~ F- 3 ,~o ~ •~ cv+ ro ~ so oL o,~o ort so ux I-u x ox ~~ ux 6 9 31 13 16 1 4 23 11 2 18 25 10 24 8 17 21 5 12 14 22 7 15 27 19 34 30 32 28 26 29 21 5 4 11 16 25 8 10 9 30 12 31 7 14 18 23 3 19 27 13 17 22 15 26 24 29 34 20 28 32 33 1 3 4 2 7 6 19 10 5 8 15 14 12 9 18 11 21 16 13 31 22 23 17 26 20 28 27 25 _ 33 29 32 34 30 13 1 23 4 2 6 3 3 19 15 8 11 14 17 4 5 10 9 11 13 24 18 5 2 12 7 1 10 29 8 20 12 27 24 9 21 7 19 34 34 22 26 16 29 17 14 28 22 21 23 30 30 25 25 15 16 6 28 32 33 31 31 33 32 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- wardsworkforce 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 ~T. Orange County Business Council thanks its partners in developing this first-ever Housing Scorecard for Orange County. Corporate underwriting courtesy of: BankofAmerica ~~ Community Partners: J`~v ~ ~ R ~' ~ fiC~~O .,w J d : (~ U ; 17 i Community ~~c<``~~UNTM ~py```~Q Foundation ORANGE COUNTY Aesoturww or RELLTaa~ A Step Ahead Orange County United Way Housing Element TUSTIN TECHNICAL MEMORANDUM May 2008 Final Draft TABLE OF CONTENTS Section Page INTRODUCTION ................................................................................................................................1 STATE LAW AND GENERAL PLAN GUIDELINES 1 SOURCES OF INFORMATION 6 SUMMARY OF HOUSING ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS........ 7 HOUSING NEEDS ASSESSMENT .................................................................................................... 9 POPULATION/EMPLOYMENT TRENDS 9 HOUSEHOLD CHARACTERISTICS 14 HOUSING STOCK CHARACTERISTICS ASSISTED HOUSING PRESERVATION ANALYSIS 31 40 CONSTRAINTS TO THE DEVELOPMENT, IMPROVEMENT AND MAINTENANCE OF HOUSING .................................................................................................... 49 GOVERNMENTAL CONSTRAINTS 49 MARKET CONSTRAINTS 62 ENERGY CONSERVATION ............................................................................................................ 67 SUMMARY OF PREVIOUS HOUSING ELEMENT PROGRAMS ............................................. 69 PROGRESS IN IMPLEMENTING THE 1989 GOALS AND OBJECTIVES 69 REVIEW OF PAST PERFORMANCE 70 APPENDICES: A. AFFORDABILTTY GAP ANALYSIS B. REFERENCES C. MAJOR EMPLOYERS IN TUSTIN D. ORANGE COUNTY BUSINESS COUNCIL SCORECARD CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM i 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 HTM- 5: Employment by Industry 2000 14 TABLE 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 34 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM ii 2008 TABLE HTM- 22: Resale Price of Homes and Condominiums Tustin and Neighboring Jurisdictions March 2008 35 TABLE HTM- 23: Affordable Monthly Housing Cost 36 TABLE HTM- 24: Average Rental Rates 37 TABLE HTM- 25: Affordable Net Rents 38 TABLE HTM- 26: 2006-2014 Housing Needs 40 TABLE HTM- 27: Assisted Units At Risk for Conversion 42 TABLE HTM- 28: Assisted Housing Inventory 43 TABLE HTM- 29: 2008 Fair Market Rents 47 TABLE HTM- 30 Affordable Net Rents 47 TABLE HTM- 31: Cost of Providing Rental Subsidy for Very Low Income Households 48 TABLE HTM- 32: General Plan Residential Land Use Categories 50 TABLE HTM- 33: Summary of Residential Zoning Regulations City of Tustin 53 TABLE HTM- 34: Comparative Development Fee Summary 60 TABLE HTM- 35: Summary Table Effectiveness of Housing Element Programs: 1998-2008 70 TABLE HTM- 36: Effectiveness of Housing Element Programs 1998 2008 72 TABLE HTM- 37: Progress Towards objectives 1998-2008 98 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM iii 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 summarized in graphic form (table, 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 each 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 (SCAG) is June 30, 2008. The planning period for the Regional Housing Needs Assessment (RHNA) as prepared by SCAG, is from January 2006 to June 2014, an eight and one-half year period. The implementation period covered by this element is January 2006 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 preservations improvement, 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 must meet 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-governmental 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. B. 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 afive-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 2008 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: developmen# 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 65580 of the California Government 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. 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, 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 TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 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 2~7. 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 (SCAG) Regional Housing Needs Assessment (RHNA) provided information regarding existing needs and projections regarding: future housing needs. Data regarding housing costs have been obtained from local 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 Condition. Many 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 Conversion 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 2008-2018. For the 2006-2014 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 RHNA 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 affordable housing in Tustin. ° Housing Problems. According to the 2007 Regional Housing Needs Assessment, the City had 3,935 lower income (household income .less than 80% of County median) households overpaying (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 Stock 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 1960s, 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 50 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 Stack 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 TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 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 2000-2007 CITY OF TUSTIN, SURROUNDING JURISDICTIONS AND ORANGE COUNTY Growth Jurisdiction 2000' 2007 z 2000-07 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 z Department 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 is expected to increase by approximately 10 percent to 88,694 persons by the year 2025. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 10 2008 Table HTM-1a Population Projection 2010 2015 2020 2025 Percent Change (2010-2025) Tustin 80,728 86,621 88,245 88,694 10% Source: OCP 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 TRENDS 1990 - 2000 CITY O F TUSTIN A e Grou 1990 % Total 2000 % Total 0-4 4,464 8.8% 5,815 8.6% 5-14 5,916 11.7% 9,916 14.7% 15-24 9,127 18.0% 8,685 12.8% 25-34 12,254 24.2% 13,798 20.4% 35-54 11,898 23.5% 19,710 29.2% 55-64 3,187 6.3% 4,776 7.1% 65-74 2,292 4.5% 2,745 4.1% 75+ 1,551 3.1 % 2,059 3.1 Total 50,689 100.0% 67,504 100.0% Sources: U.S Bureau of Census, 2000; Center for Demographic 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 significantly. The Hispanic population has increased from about 20% of the total population in 1990 to about 34% in 2000. Asian/Pacific CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 11 2008 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 ETHNICITY: 1980, 1990, 2000 CITY OF TUSTIN 1980 ~ 1990 z 2000 s Race and Ethnicity Po ulation Total Po ulation Total Po ulation Total s White 31,654 87.6°!0, 37,127 73.2% 30,264 44.8% Black 957 2.6% 2,895 5.7% 1,785 2.6% American Indian 237 0.7% 274 0.5% N/A N/A Asian/Pacific Islander 1,683 4.7°! 5,260" 10.4% 10,194 15.1% Other :1,588 4.4% 5,133 10.1% 2,151 3.2% His anic a (3,085) (8.5%) (10,508) (20.7%) 23,110 34.2% Total 36,119 100% 50,689 100% 67,504 100% iytsu Lensus z 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 bom 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. In 2000, the largest occupational category was professional and related occupations, in which a total of 7,467 were employed. The CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 12 2008 second largest category was the management, business, and financial operations occupations, employing 6,657. TABLE HTM- 4 EMPLOYMENT BY OCCUPATION-2000 CITY OF TUSTIN Occu ational Cate o Number Management, business, and financial operations occu ations 6,657 19.1 Professional and related occu ations 7,467 21.4% Healthcare su ort occu ations 506 1.4% Protective service occu ations 432 1.2% Food re aration and servin related occu ations 1,502 4.3% Building and grounds cleaning and maintenance occu ations 1,186 3.4% Personal care and service occu ations 957 2.7% Sales and related occu ations 4,278 12.3% Office and administrative su ort occu ations 6,040 17.3% Farmin , fishin ,and fores occu ations 33 0.1 Construction and extraction occu ations 1,222 3.5% Installation, maintenance, and re air occu ations 735 2.1 Production occu ations 2,689 7.7% Trans ortation and material movin occu ations_ _ 1,202 3.4% Total 34,906 100.0% 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 Electronics, Inc., Rockwell Collins, Cherokee International, ADC Telecommunications, Balboa Instruments, Toshiba America Medical Systems, the City of Tustin, and Costco Wholesale. CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 13 2008 TABLE HTM- 5 EMPLOYMENT BY INDUSTRY 2000 CITY OF TUSTIN Indus Number A riculture 774 1.9% Minin 4 .Ol Construction 2,437 6.1 Manufacturin non-durable oods 1,890 4.7% Manufacturin durable oods 5,919 14.8% Trans ortation and ublic utilities 1,174 2.9% wholesale trade 3,645 9.1 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 Self Em to ed 2,526 6.3% TOTAL 40,107 100.0% Source: VIP ZUUb 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 OFTUSTIN - 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 2 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% N/A N/A Non-Famil 6,015 32.8% 7,776 32.6% N/A N/A Total 18,332 100% 23,831 100% 24,787 100% ~ U.S. Dept. of Commerce, Bureau of the Census,1990Census. 2 U.S. Dept. of Commerce, Bureau of the Census, 2000 Census 3 Total populations based on Department of Finance estimates, January 2007 Table HTM-6 shows that 12,317,- or about 67%, of the City's households were classified as family households in 1990. The percentage of households remained the same in 2000. Moreover, as shown in Table HTM-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 attributed 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 East 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 Census Report. z U.S. Dept. of Commerce, Bureau of the Census, 2000 Census Report. s California Department of Finance (DOF), 2007 CITY OF TUSTIN - HOUSING ELEMENT TECHNICAL MEMORANDUM 15 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 (SCAG) 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: 1) 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 17 DECEMBER 2001 TABLE HTM- 8 HOUSEHOLDS IN OVERCROWDED CONDITIONS 2006 CITY OF TUSTIN Tenure Extremely Overcrowded Low Total Very Low Overcrowded Total Low Overcrowded Total Moderate & Above Overcrowded Total Total Overcrowded Total All Households Owner 45 525 140 760 225 1,370 410 9,200 820 11,855 Renter 520 1,585 870 1,910 1,100 2,780 975 5,710 3,465 11,985 Total 565 21110 1,010 2,670 1,325 4,150 1,385 14,910 4,285 23,840 Source: Southern California Association of Governments (SCAG) Regional Housing Needs Assessment (RHNA), 2007 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 17 DECEMBER 2001 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. In 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 jurisdictions. --- TABLE HTM- 9 MEDIAN HOUSEHOLD INCOME: TUSTIN AND SURROUNDING AREAS 2000 urisdiction Median Household Income Percent Above/Below Coun Median Median Family Income Percent Above/Below County Median Tustin $55,895 -5.2% $60,092 -7.5% Anaheim $47,122 -24.8% $49,969 -29.3% Garden Grove $47,754 -23.2% $49,697 -30.0% Irvine $72,057 18.4% $85,624 24.5% Santa 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. Uepaztment of Comrnerce, bureau of Census, 20W 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 Range # Households) % Households % Cumulative Less than $14,999 1,787 7.5% 7.5% $15,000 to $24,999 2,026 8.5% 16.0% $25,000 to $34,999 2,479 10.4% 26.4% $35,000 to $49,999 4,194 17.6% 44.0% $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°h Median Household Income, $55,985 City of Tustin Median Household Income, $58,820 Orange County 1 Derived by applying the percentage of households by income level from Summary File 3, Table P-52 (total number of households shown as 23,853) to a total of 23,831 occupied households from Summary File 1, Table H-3 for consistency with other Census data on the number of households used in this report. SOURCE: 2000 U.S. Census; Comprehensive Affordable Housing Strategy, 2008-2018. 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 MEMORANDUM 19 2008 TABLE HTM-11 HOUSEHOLD INCOME DISTRIBUTION BY HOUSE HOLD 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% 15.5% $20,000 to $34,999 2,568 21.4% 36.9% $35,000 to $49,999 2,857 23.8% 60.7% $50,000 to $74,999 2,653 22.1% 82.8% $75,000 to $99,999 1,308 10.9°~ 93.7% $100,000 or More 756. 6.3% 100.0% Total Renters 12,002 100.0% OWNER HOUSEHOLDS Less Than $10,000 246 2.1 % 2.1 $10,000 to $19,999 537 4.5% 6.6% $20,000 to $34,999 1,110 9.4% 16.0% $35,000 to $49,999 1,301 11.0% 27.0% $50,000 to $74,999` 2,442 20.7% 47.7% $75,000 to $99,999 1,894 16.0% 63.7% $100,000 to $149,999 2,581 21.8 % 85.5 $150,()00 or More 1,718 14.5% 100.0% Total Owners 11,829 100.0% 1 Derived by applying the percentage of household tenure by household income from Summary File 3, Table HCTll (total number of renter h ouseholds 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 HTM-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 RHNA. 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 OF TUSTIN- 200(s Tenure/Income Range, Number Percent Cumulative as percentage of AMI RENTER HOUSEHOLDS Below 30 percent AMI 1,585 13.2% 13.2% 30 - 50 percent AMI 1,910 16.0% 29.2% 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% Total Renters 11,985 100.0% OWNER HOUSEHOLDS Below 30 percent AMI 525 4.4% 4.4% 30 - 50 percent AMI 760 6.4% 10.8% 50 - 80 percent AMI 1,370 11.6% 22.4% 80 - 95 percent AMI 885 7.5% 29.9% Over 95 percent AMI 8,315 70.1 % 100.0% 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 groupsl. The 2007 RHNA identifies housing overpayment for lower-income households based on income data from the 2000 Census. Lower- income households are those earning less than 80% o€ 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 low-income households. While the extremely low income households are currently housed, they are in a precarious position, particularly those overpaying for housing in light of the current housing market, and could face the threat of homelessness. 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 1 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% 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 income households in the City overpaying for housing, 2,660 or 68% were renters. 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 Housing 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 (AMI) 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: Physical 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 23 2008 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 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 standards do not apply to new single-family residential construction, they do apply to new multi-family residential construction. Most existing housing units iri 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 apartments 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 are provided in the Tustin Legacy area, accessibility is considered as part 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 area will further require development of even more handicapped- accessible 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 limitations 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 are typically smaller than single-family units, larger families who are CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 24 2008 also renters face more difficulties in securing housing large enough to accommodate all members of the household. 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% 5 or more Persons 3,627 15.2% Total Households 23,832' 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 percent 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% 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 TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 25 2008 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 large families 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 1,700 female-headed households with.. children under 18 living at home. 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 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 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 26 2008 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: 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. T'he 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. T'he .City's Police Department estimates that there are 10-12 homeless persons residing in the City at any given .time. Although there are no established areas where homeless persons congregate in the City, there are several homeless services facilities in the City. Thee Village of Hope was recently completed on five acres at the Tustin Legacy 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 27 2008 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. 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 (Redevelopment Act), the City of Tustin was formally 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 28 2008 ° 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-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/ Zoning Conditionally Permitted _ Planning Area 3 of MCAS Transitional Home Permitted Tustin Specific Plan Planning Area 3 of MCAS Emergency Shelters Permitted Tustin Specific Plan _ Supportive housing Permitted Planning Areas 1 and 3 of 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 (6) or fewerl properties t Includes congregate care facility, single room occupancy hotel, and children's intermediate care shelter Source: City of Tustin, MCAS Tustin Specific Plan CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 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 CITY OF TUSTIN Facility Services Provided Sheepfold Provides shelter, food, clothing, job training, and job-referral services #o 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. Red Hill Lutheran Operates emergency food program where a erson 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. Aldergate Refers interested persons to Ecumenical Services Alliance in Santa Ana. Village of Hope 192 beds transitional home at the Village of Hope o erated b 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. Salvation Army Six (6) new transitional units at Tustin Field I perated by Salvation Army and Acquisition of 16 transitional units in Buena Park Salvation Army operated by Salvation Army. The City assisted in acquisition and contributed grant funds to ac uire the units Fourteen (14) new transitional units at Columbus Families Forward1 Grove to be operated by Families Forward, formerl Irvine Tem ora Housin in Irvine. Human Options Six (6) new transitional units at Columbus Grove 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 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, 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 - 2007 TUSTIN AND SURROUNDING AREAS Number of Housin Units Percent Chan e Jurisdiction 1990' 2000 2 2007 3 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% 1% Irvine 42,221 53,711 74,936 27% 40% Santa Ana 75,000 74,588 75,375 -0.5% 1% Oran eCoun 875,072 969,484 1,024,692 1% 6% ' U.S. Department of Commerce, Bureau of the Census,1990 Census Report. 2 2000 Census Report. s State of California. Department of Finance, Revised Estimate, May 2007. Housing Unit Type Table HTM-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, 15 percent multi-family (2-4 units), 36 percent multi-family (5+ units), and 4 percent mobile homes. Compared to Orange County as a whole, Tustin 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 % 2(100 % 2007 % 2000-2007 Sin le-Famil Detached .5,351 27.7% 8,075 30.6% 8,697 34.1% 7.7% Sin le-Famil Attached 2,530 13.1 % 3,459 10.8% .3,807 14.9 % 10.1 Multi-Famil 2-4 units 3,089 16.0% 3,836 12.8% 3,110 12.2% -18.9% Multi-Famil 5+units 7,678 39.5% 9,223 43.0% 8,955 35.1% Mobile Homes 707 3.6% 908 2.9% .908 3.6% 0% Total 19,300 99.9%* 25,501 100.1%* 99.9% N/A - i orals ao not equa- tuu ~ aue to rounamg error. Source: California Department of Finance; Comprehensive 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 led Units 23,831 24,787 Vacancy Rate 6.6% 2.71% 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 rate than rental housing. Housing 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. In 2000, 49.6% 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 38.6% 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 1990 2000 Housing Tenure ~ Number ~ Percent ~ Number ~ Percent C'i+v nF Tnctin Owner-Occu ied 7,504 40.9% 11,829 49.6% Renter-Occu ied 10,828 59.1% 12,002 50.4% Total Occu ied Units 18,332 100.0% 23,831 100.0% C'nanly of nl'anflP Owner-Occu ied 496,782 60.1% 574,456 61.4% Renter-Occu ied 330,284 39.9% 360,831 38.6% Total Occu ied Units 827,066 100.0% 935,287 100.0% Source: Comprehensive Attordabte Housing StrategyLUUS - ZU18. 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 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% 1999 to 2000 590 2.3 1995 to 1998 2,684 10.5% 1990 to 1994° ` 3,240 12.7% 1980 to 1989 2,792 11.0% 1970 to 1979 6,238 24.5% 1960 to 1969 6,333 24.9% 1950 to 1959 1,285 5.0% 1940 to 1949'. 225 0.9 1939 or earlier 451 1.8 Total 25,477 100% Source: comprehensive Attordable Housing Strategy 2008 - 2018 Housing Costs Ownership Housing: Southern California, in line with the nation, is 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 research 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, begmning 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. Within 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 HTM-22, Tustin is experiencing the same trend with a significant drop in home price sales, especially in the areas of the city in the lower end of the. housing market. 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 HTM-22 ranged from $205,000 to $819,500.. Overall, median resale. home prices in Tustin were similar to those occurring throughout Orange County. TABLE HTM- 22 RESALE PRICE OF HOMES AND CQNDOMINIUMS TUSTIN AND NEIGHBORING TURISDICTIONS MARCH 2008 Median Home % Change Ci Zi Code Price-March 2008' from 2007 Tustin 92780 $416,250 -34.7% Tustin 92782 $570,000 -9.9% 92801 $360,000 -35.7% 92802 $430,000 -22.4% 92804 $390,000 -31.5% Anaheim 92805 $350,000 -37.4% 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 92844 $429,000 -2.5% 92845 $438,000 -24.2% CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 35 2008 92602 $740,000 -1.3% 92603 $819,500 14.1 92604 $561,818 -8.2% Irvi 92606 $670,000 21.8% ne 92612 $422,500 -21.2% 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% Orange 92867 $490,000 -26.5% 92868 $362,500 -19.2% 92869 $520,000 -16.2% 92701 $205,000 -33.9% 92703 $358,750 -38.1 Santa Ana 92704 $298,500 -48.8% 92705 $710,000 2 1.4% 92706 $433,000 -29.5% 92707 $330,000 -40.0% ' uata mclude all riome sales, new and resale, and condominiums. z Includes Lemon/Cowan Heights Source: Orange County Register, April 6, 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 No. 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 Laurorma vepartment of riousmg and Community llevelopment 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 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 MEMORANDUM 36 2008 Rental Housing: According to Realfacts, the average rent for Tustin in 2007 was $1,528. Studio and one-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. Table HTM-24 presents a summary of the rental rates. TABLE HTM- 24 AVERAGE RENTAL RATES 2007 CITY OF TUSTIN Number of Bedrooms Number of Units Average S uare Foota a 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 56 1,441 $1,861 3bd/2ba 216 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 lazge segment of the rental market and offer larger, more affordable units. 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 Table HTM-24). It is important to note, however, that the rental survey considered only large, CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 37 2008 investment-grade rental properties and did not report prices of 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- 2S AFFORDABLE NET RENTS 2008 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 ' based on H U lJ income limits, 2007. Source: Comprehensive Affordable Housing Strategy, 2008-2018. Share 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 (SCAG). 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 38 2008 Construction needs are defined as the number of units that would 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 RHNA 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 re-use 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. 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 for 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% 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 MEMORANDUM 39 2008 TABLE HTM- 26 2006-2014 HOUSING NEEDS CITY OF T USTIN Income Cate o # of Units % of Total Ve Low <50%Coun Median 512 21.5% Low 50% - 80%Coun Median 410 17.2% Moderate 80% -120% 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. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 40 2008 Tustin has one project that contains units "at risk" of converting to unrestricted market rate rents. Tustin Gardens is a 101-unit Section 221(D)(4) project with a Section 8 contract for 100 units. In 2003, the 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 local programs, including HUD 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, or expiring use restrictions. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 41 2008 TABLE HTM- 27 AT RISK FOR CONVERSION IN 2006-2014 CITY OF TUSTIN FEDERAL Tustin Gardens Owner: HUD 221(D)(4) # of Type/Length of Earliest Tenant Date Project Name, Name, Type(s) of Gov't Section 8 Affordability Potential # of Type Bedroom Built Income Address Address, Assistance Contracts Controls Conversion Units (i.e., Elderly, Mix (if Group (incl. zip) Tel. # Section 8 (if applic.) (including Date(s) Family) known) Sec. 8) FEDERAL Tustin Gardens Goldrich & Kest HUD 221(D)(4) 275 E. 6th 5150 Overland Ave. 100 40 yr Loan 100 Elderly 1001-br 1979 100 very low Tustin, CA 92780 Culver City, CA at 8% 213-204-2050 90230 Section 8 July 2008 Source: Comprehensive Affordable Housing Strategy 2008 - 2018. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 42 2008 TABLE HTM- 28 ASSISTED HOUSING INVENTORY FEDERAL Goldrich & Kest California Statewide Type/Length Earliest Tenant Project Name, Owner: Name, Type(s) of Gov't of Affordability# Potential Conver- of Type Bedroom Date Built Condition if Address (incl. zip) Address, Assistance Controls sion Units (i.e., Elderly, Mix (if known) Tustin, CA 92680 Tel. # Section 8 (including Date(s) 100 Family) 9 3-br known) Culver City, CA Bond Financing Sec. 8 FEDERAL STATE Goldrich & Kest California Statewide Tustin Gardens 5150 Overland Community Income 61-br E. 6th Ave. HUD 221(D)(4) --- --- 101 Elderly 101 1-br 1979 Good Tustin, CA 92680 Newport Beach, Section 8 rent 7/13/00 100 9 3-br Culver City, CA Bond Financing restrictions 213-204-2050 92660-9959 90230 California Statewide STATE CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 43 2008 The Irvine Co. California Statewide Rancho Alisal 550 Irvine Ctr. Community Income 61-br 13800 Parkcenter Dr. Development restricted. No May 2012 72 Family 57 2-br 1987 Excellent Tustin, CA 92680 Newport Beach, Authority 1998-A rent 9 3-br CA Bond Financing restrictions 92660-9959 The Irvine Co. California Statewide Rancho Maderas 550 Irvine Ctr. Community Income 13408 Heritage Way Dr. Development restricted. No May 2012 54 Family 101-br 1988 Excellent Tustin, CA 92680 Newport Beach, Authority rent 44 2-br 730-3700 CA Financing Bond Financing restrictions 92660-9959 Rancho Tierra The Irvine Co. California Statewide Income 7 3-br 13202 Myford Rd. 550 Irvine Ctr. Community restricted. No May 2012 51 Family 44 2 br 1988 Excellent Tustin, CA 92680 Dr. Development rent CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 43 2008 TABLE HTM- 28 ASSISTED HOUSING INVENTORY LOCAL Tustin Grove Tract 14934 Redevelopment Type/Length Earliest 21 Tenant 21-3br N/A Very Project Name, Owner: Name, Type(s) of Gov't Type of Affordability Potential # of Type Bedroom Date Built Condition Address Address Assistance Controls C Units Family Mix (if New (incl. zip) Tel. # Agency (including sion Eld(�erl known) known) Orange Gardens Sec. 8) Date(s)Family) y) 17-1br 730-5868 Newport Beach, Authority 1998-A restrictions 5/2028 150 Family 93-2br N/A Good Tustin, CA 92780 CA Bond Financing rent 40-3br 92660-9959 restrictions LOCAL Tustin Grove Tract 14934 Redevelopment DDA1 N/A 21 Family 21-3br N/A Very Agency Good Ambrose Lane Tract 15707 Redevelopment DDA1 N/A 8 Family 8-3br N/A New Agency Orange Gardens Income 17-1br 1602 Nisson Rd. Westchester Redevelopment restricted. No 5/2028 150 Family 93-2br N/A Good Tustin, CA 92780 Park, L.P. Agency rent 40-3br restrictions Hampton Square Income 16331 McFadden Fairfield Redevelopment restricted. No 124-1br Ave. Residential Agency rent 10/2011 210 Family 86-2br 1969 Good Tustin, CA 92780 Corp. restrictions Flanders Pointe Tustin Income 15520 Tustin Village Affordable Redevelopment restricted. No 10/2029 49 Family 41-2br 1966 Good Way Housing Corp. Agency rent 7 2br Tustin, CA 92780 restrictions Ownership 45 years of Tustin Field I Redevelopment initial 27-2br Tustin, CA 92780 Various owners Agency income purchase 78 Family 51-3br 2006 Excellent restricted. date CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 44 2008 TABLE HTM- 28 ASSISTED HOUSING INVENTORY N/ A - Not available ' DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2008-2018; City of Tustin, 2008. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 45 2008 Type/Length Earliest Tenant Project Name, Owner: Name, Type(s) of Govt of Affordability Potential # of Type Bedroom Date Built Condition Address (incl. zip) Address Assistance Controls Csion Sion Units (1e rly, Elderly, Mix (if own) known) o Tel. # (including Date(s) Family) known) Sec. 8) 45 years of Tustin Field II Various owners Redevelopment Ownership income initial 40 Family 40-3br 2007 Excellent Tustin, CA 92780 Agency restricted. purchase date 45 years of Arbor Walk Various owners Redevelopment Ownership income initial 10 Family. 10-3br 2006 Excellent Tustin, CA 92780 Agency restricted. purchase date Ownership 45 years of 11-lbr Cambridge Lane Various owners Redevelopment income initial 36 Family 13-2br 2006 - Excellent Tustin, CA 92780 Agency restricted. purchase 12-3br 2007 date Ownership • 45 years of Camden Place Various owners Redevelopment income initial 37 Family 22-2br 2006- Excellent Tustin, CA 92780 Agency restricted. purchase 15-3br 2007 date Ownership 45 years of Clarendon Various owners Redevelopment income initial 42 Family 42-3br 2006- Excellent Tustin, CA 92780 Agency restricted. purchase 2007 date 955 TOTAL N/ A - Not available ' DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2008-2018; City of Tustin, 2008. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 45 2008 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-year 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 market 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 HUD 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 a11100 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 2008 FMRs for Orange County, which encompasses the City of Tustin, are shown in Table HTM-29. TABLE HTM- 29 2008 FAIR MARKET RENTS ORANGE COUNTY Efficiency* 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom $1,103 $1,238 $1,485 $2,125. $2,441 *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. $733' for a one bedroom unit, $817 for a two bedroom unit, and $886 for a three bedroom unit. To 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 80% 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 are 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, 2008-2018 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL 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 FOR VERY LOW INCOME HOUSEHOLDS Affordable No, Differe Totai Unit FMR Rent 1 .Units nce Monthly Annual 1 Bedroom $1,238 $733 0 $505 $50,500 $606,000 2 Bedroom $1,485 $817 0' $668 $0 $0 TOTAL $50,500 $606,000 ~ 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 areas 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 Housing 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 25 dwelling units per acre in the High Density Residential designation, which corresponds to the R-3 Multiple Family Residential District in the Zoning Code. Up to 10 units per net acre are 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 CITY OF TUSTIN Effective Dwelling Unit per Density Desi ation Descri tion Acrea 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. PD MCAS Tustin Low, medium, and medium high- z z S ecific Plan' densi residential develo menu. Maxunum density in dwelling units per acre is prescribed by individual Planned Community Documents. Effective dwelling units 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) Source: City of Tustin General Plan, Land Use Element, 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 (DOF) reports 25,477 dwelling units have been constructed (as of January 2007) 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 SO 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 u1 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 economic 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 f 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 OF 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 TABLE HTM- 33 SUMMARY OF RESIDENTIAL ZONING REGULATIONS CITY OF TUSTIN Source: City of Tustin, Zoning Code, 2008. CITY OF TUSTIN TECHNICAL MEMORANDUM 53 HOUSING ELEMENT 11: Lot Building Interior Corner Zoning Minimum Lot Area Coverage Height Front Yard Side Yard Side Yard Rear Yard R -A Residential Agricultural 7,200 square feet 40 percent 30 feet 20 feet 5 feet 10 feet 5 feet, but no less than 1,000 District feet clear and unobstructed on open space. E-4 Residential Estate District 10,000 square feet 40 percent 30 feet 20 feet 10% of lot 10% of lot 20 percent lot depth width width R-1 Single -Family Residential 7,200 square feet 40 percent 30 feet 20 feet 5 feet 10 feet 5 feet, but no less than 1,000 District feet clear and unobstructed on rear 1/3 of lot. R-2 Duplex Residential District 3,500 square feet 40 percent 30 feet 20 feet 5 feet 10 feet - R-2 Duplex Residential District 3,500 square feet 50 percent 35 feet 20 feet 5 feet 10 feet 10 feet (single structure) R-3 Multiple Family Residential 1,750 square feet 65 percent 35 feet 15 feet 5 feet 10 feet 10 feet District R-4 Suburban Residential 3,000 2 stories or 20 feet 5 feet 10 feet 25 feet District 35 feet MPH Mobile Home Park Minimum 5 acre site 75 percent 30 feet Trailer park -none. District for mobile home park. Individual lot -5 feet Travel trailer shall not (measure from curb exceed 10% of total to actual structure, spaces in mobile home hitch excluded). park. P -D Planned Development 10,000 To be To be To be determined To be To be To be determined with adoption District determined determined with adoption of P- determined determined of P -D District with with D District with with adoption of adoption of adoption of adoption of P -D P -D P -D District P -D District District District Source: City of Tustin, Zoning Code, 2008. CITY OF TUSTIN TECHNICAL MEMORANDUM 53 HOUSING ELEMENT 11: 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 congregate in the City and that most persons migrate through Tustin to other areas within Orange County, rather than stay for extended periods of time. The Orange County Partnership, anon-profit organization whose purpose is to strengthen public and private agencies serving the homeless and those at risk of homelessness, reported that in 2007 there were 34 homeless persons identified Tustin as the city of last known permanent address. The McKinney-Vento Homeless Education Assistance Act reported 55 homeless children and youth enrolled in the Tustin Unified School District during 2006-07. 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, CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 54 2008 provides supportive services and is occupied by low-income persons with disabilities and certain other disabled persons. 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 to 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 HOMELESS ACCOMMODATION ZONING REGULATIONS Housing Type Permitted/ Zoning Conditionally Permitted 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 Permitted MCAS Tustin Specific Plan Community Care Facility Permitted All residentially zoned for six (6) or fewer properties Family care home, foster All residentially zoned home, or group home for Permitted properties six (6) or fewerl ~ Includes congregate care facili ty, single room occupancy hotel, and children's intermediate care shelter Source: City of Tustin, MCAS Tustin Specific Plan CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 55 2008 The following are transitional homes that have been provided in the City at Tustin Legacy. 1. A 192 beds transitional home at the Village of Hope to be operated by the Orange County Rescue Mission. 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.2 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 dispersed 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 socio-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 Electrical 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 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 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 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, u1 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 conditions 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 costs 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 57 2008 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 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 Iaw. 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 far 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) Noise 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 58 2008 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 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 HTM-34, which illustrates the fees and exactions that may be assessed to a residential building.. development project in comparison to other nearby communities. These fees may be and have been waived by the City Council for projects where extraordinary benefits 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 Proposition 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 1 Fee Charges Planning Fees Tustin Anaheim Costa Mesa Orange Environmental Initial Determination $95 N/A N/A $230 Ne ative Declaration $125 N/A $910 $1,000 de osit EIR Processing-minor $2,500 $30,000 deposit Consultant cost $3,000 deposit EIR Processin -ma~or $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 $10,700 de osit Tentative Tract Map $3,000 deposit $181.10/hr $1,160 $3,000 deposit $10,000 de osit Design Review $3,000 deposit $181.10/hr N/A $1,000 deposit $4,000 de osit Planned Develo ment Review N/A N/A $1,450 $1,000 de osit Conditional Use Permits and N/A $181.10/hr N/A N/A Variances $10,000 de osit En¢ineerine & Subdivision Final Tract Map $56/unit $709/lot ($35,450 de sit $85/hr $1,500- $30/unit Sewer Plan Check $31/unit $109-153/hr $3,000 de it" N/A $500 Water Plan Check $106/unit $9.46/lf N/A $54-$112/hr Stormdrain Plan Check $296.91/unit $9.46/lf $628.30/unit $20/unit Street Plan Check $296.91/unit $9.46/lf $85/hr $20/unit Surface Draina e Plan Check N/A $98-119/hr N/A N/A Gradin Plan Check 182/unit $98-119/hr $224/unit $30/unit Cavital Facilities & Connections Water fixture units $400/unit $663/unit N/A $300/unit Sewer fixture units $600/unit $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 er $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 al 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 ' Comparafive 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 are not included in this analysis Source: City of Tustin, 2008; Building Industry Association, 2006-07 Land Development Fee Survey for Orange Coun 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 standard 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 Committee. 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 chart and- copies of pertinent information such as street improvement construction standards, 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 nuniinize development costs. Additionally, for projects of CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 61 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 (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 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 6 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- incomefamilies. 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 s 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 typica12,200 square foot, wood frame home would be at minimum $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 are most attributed to a reduction in land costs; when that cost is spread on a per unit basis. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 65 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. Permits 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 savmgs. 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 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 unplementation 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/Preservation Housin Assistance Income Grou Goal Actual Goals 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 .vttnougn goals were not allocates to specific income group, the City attempted to utilize RHNA percentages to fulfiill RHNA objectives. Source: The City of Tustin, Housing Element, 2002; Effectiveness of Housing Element Programs, 2008. REVIEW OF PAST PERFORMANCE State law establishes afive-year cycle regulating housing element updates. In compliance with the SLAG 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 uz 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 iri compliance: with State's Law. Review of Past Housing Element Objectives Tables HTM-36 and HTM-37 summarize the performance of the 2002 Element's goals and objectives. The time period covered in this analysis is January 1,1998 to Apri12008. 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 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 70 2008 housing as a percentage of total Orange County housing units. 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 Housing Element Objectives. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 71 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 72 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.1 Available Sites Community City General Assist in the development 1474 units 12 live/work units Continue to utilize Planned Community Districts and Development Fund; of new affordable owner nearly completed Specific Plans to authorize and encourage mixed-use Department, Redevelopment and rental housing through developments (see Zoning Studies Program). Redevelopment Agency Funds; development in MCAS - Agency, City City and Agency Tustin and infill of 3,151 Housing Element Policies: 1.1, 1.8, 1.11 Council staff time units. involved 1.2 Mobile Homes Community City General As received No applications 10 new mobile home Continue to maintain the City's mobile home park Development Fund; processing received units/spaces created zone and process conditional use permit applications Department, City fees (Villa Valencia MHP) as received for manufactured homes. Council (recoverable) Housing Element Policies: 1.1, 1.3 1.3 Secondary Residential Units Community City processing 2 units 2 units completed Ordinance amending Continue to provide opportunities for affordable sec- Development fees (135 A Street - third zoning code to ondary residential dwelling units in the Single-family Department, City (recoverable) unit; 13635 Green process second Residential District lots where feasible through Council Valley Drive - residential units existing Zoning Ordinance provisions. second unit) ministerally adopted in 2003. Housing Element Policies: 1.1, 1.7,1.13 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 72 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN TECHNICAL MEMORANDUM 73 HOUSING ELEMENT /I: Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.4 Deed Restrictions Community 1) Tax -Exempt Require appropriate deed 207 units Created a total of 243 Require appropriate deed restrictions to ensure Development Mortgage restrictions to ensure restricted units as continued affordability for low- to moderate -income Department, Revenue continued affordability for follows: housing constructed or rehabilitated with the Redevelopment Bonds low- or moderate -income •Tustin Field I - 78 assistance of any public or Redevelopment Agency Agency, City housing constructed or units funds as may be legally required. Council 2) Redevelopm rehabilitated with the •Tustin Field tI - 40 ent Agency assistance of any public or units Housing Element Policies: 1.1 Housing Redevelopment Agency *Arbor Walk -10 Set -Aside funds as may be legally units Funds required. q •Cambridge Lane - 36 units *Camden Plan - 37 units *Clarendon - 42 units 1.5 Pre -application Conferences Community City General Continue 11 projects 26 projects Continue to utilize procedures for pre -application Development Fund; conferences and processing procedures to expedite Department City processing permit processing. fees (recoverable) Housing Element Policies: 1.11 1.6 Permit Processing for Low- to Moderate Community City General Continue 11 projects 20 projects Income Housing Development Fund; Ensure that processing of permits for low- to City processing moderate -income housing are fast -tracked with low- fees to moderate -income housing permits being given (recoverable) priority over other permit applications. Housing Element Policies: 1.11 CITY OF TUSTIN TECHNICAL MEMORANDUM 73 HOUSING ELEMENT /I: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 74 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.7 Permit Coordination Community City General Processing of 11 projects fast 26 projects fast Continue the services of the City's Community Development Fund; approximately 10 new tracked tracked Development Department as a central clearinghouse City processing residential projects with individuals assigned the responsibility of fees annually, 50 projects by expediting development permits required from (recoverable) 2005 various departments and agencies. Housing Element Policies:.1.11 1.8 Tax Increment Financing Redevelopment Redevelopment Assist 620 units by 2005 18 units for Very Low 19 units for Very Provide housing set-aside tax increment funds Agency Agency Housing Income households Low Income generated from the Redevelopment Projects, where Set -Aside Funds 44 unL I for or ow Income households, 14 units available, to assist in providing housing ac- households 1 unit for Moderate for Low Income commodations for low- and moderate -income households assisted households, 23 units households in rehabilitation or new construction through housing for Moderate Income projects. rehabilitation program households assisted through housing Housing Element Policies: 1.6,1.12, 3.2, 4.2 rehabilitation program. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 74 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 1.9 Housing for the Disabled Community State and Federal Refer individuals to 6 units were Require new multi -family housing units and Development programs; City's agencies providing requested to provide apartment conversions to condominiums to comply Department General Fund. supportive housing that for accommodation with State specifications pursuant to SB 520 for accommodates for the disabled accommodation of the disabled. The City will independent living. Add conduct analysis, add procedures, and/or undertake procedures and/or appropriate amendments to existing standards by undertake appropriate removing constraints through the adoption of a amendments to existing Reasonable Accommodation Ordinance to create a standards to ensure process in accommodating the disabled (to be adopted accommodation to the in conjunction with Zoning Studies/Program 1.21) disabled by 2003. and complying with Chapter 11 of the California Building Code (requires portion of multi -unit dwellings to be accessible dwelling units) to ensure accommodation for the disabled. Housing Element Policies: 1.13,1.15 CITY OF TUSTIN TECHNICAL MEMORANDUM 75 HOUSING ELEMENT TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 1.10 Transitional Housing Various Non -Profit Variety of • Promote, assist, and 3 homes for a total of 3 homes for a total of Encourage the continuation of the Sheepfold homes Organizations, private funds; facilitate the 16 beds maintained 16 beds maintained and Laurel House in Tustin, which provide housing Redevelopment CDBG funds development of facilities for battered homeless women and children. Agency, emergency and 90 beds Orange These homes are located in single-family Community transients' shelters County Social neighborhoods and provide a much-needed service Development through continued Services Tustin for homeless women and children. In addition, Department support of the County Family Campus explore additional program options to assist in the Homeless Assistance facility designed for provision and funding for other programs such as Program abused and transitional housing and single room occupancy • Support local agencies neglected children housing. who provide homeless and their parents as services by providing well as for Housing Element Policies: 1.15, 1.16 financial assistance of emancipated youth approximately $5,000- shelter. $10,000 annually. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 76 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program 1.11 Temporary Housing for Homeless The City will also support countywide efforts to assist approved homeless providers as part of the MCAS Tustin Reuse effort. Housing Element Policies: 1.14,1.15 CITY OF TUSTIN TECHNICAL MEMORANDUM Responsible County of Orange, Redevelopment Agency Funding Source CDBG funds, HUD SHP funds 77 Objective • Provide 192 emergency housing units to single men and women by 2003 at Tustin Legacy (OC Rescue Mission). The City plans to assist 200 individuals by integrating counseling, education, job -training and other techniques to stop the cycle of homelessness. • Provide 24 units of transitional housing for families (Salvation Army) • Provide 6 units of transitional housing for women and children (Human Option -Dove Housing) • Provide 6 units- in long- term 12-24 months - transitional housing for families with children (Orange Coast Interfaith Shelter) Effectiveness 1998-2000 Prepared FY 2000-05 Consolidated Plan (Continuum of Care Plan included in Consolidated Plan. Applied and received $1,000,000 for OC Rescue Mission and $800,000 for transitional housing to be owned by the City at the MCAS - Tustin. HO 2001-2008 • Construction of a 192 beds at the Village of Hope is nearing completion (OC Rescue Mission). • 6 new units at Tustin Field I (Salvation Army). • Acquisition of 16 units in Buena Park (Salvation Army). The City assisted in acquisition and contributed grant funds to acquire the units. • 6 new units at Columbus Grove (Human Options). • 6 new units at Columbus Grove (Orange Coast Interfaith Shelter). ELEMENT 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 78 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective • Provide 14 units of 14 new units at transitional housing to Columbus Grove - families with children Families Forward, who are homeless due to formerly Irvine a short or temporary Temporary Housing financial hardship (units are in Irvine (Families Who Care, but part of the formerly Irvine MCAS Tustin base Temporary Housing). closure homeless accommodation). Provide for a 60 -unit expansion of Orangewood Transitional Housing for children (to be operated by the County of Orange. 1.12 Implementation Program Redevelopment Redevelopment Review within legal time Reviewed within Reviewed within The Redevelopment Agency will review Agency Fund frames legal time frames legal time frames. Implementation Plan for each project area and Adopted Comprehensive Housing Affordability Strategy as Implementation Plan required by Redevelopment Law and adjust as for the Town Center necessary. and South Central Redevelopment Housing Element Policies: 1.12, 3.2 Project Areas for FY 2005-2006 to 2009- 2010. Currently in process of updating the Comprehensive Affordability Housing Strategy. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 78 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN TECHNICAL MEMORANDUM 79 HOUSING ELEMENT 11: Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.13 Housing Opportunities for all Economic Private Developers City General Monitor 174 affordable 174 units in East 177 units in East Segments in East Tustin, Fund; Staff time units in East Tustin Tustin monitored Tustin monitored (72 Monitor the implementation of the affordable housing Community units at Rancho program adopted as a part of the East Tustin Specific Development Alisal, 54 units at Plan. Department Rancho Maderas, and 51 units at Housing Element Policies: 1.1, 1.8,1.9, 1.10 Rancho Tierra) 1.14 Bonding Programs Redevelopment State and Complete analysis of Processed 150 Processed 53 Issue Redevelopment tax-exempt bonds, as necessary, Agency Municipal available programs on as restricted units to restricted units for to accomplish Five -Year Quantified Objectives with Bonds; Private needed basis. low income (Orange very low and low such issuance conditioned on having projects ready to Activity Gardens - total 150 income through the move forward. Also utilize other housing revenue Mortgage Bonds units) County bonding bond financing resources and Low Income Housing Revenue issued program (Heritage Tax Credits on new construction and by California Processed 49 Place - total 54 units) acquisition/ rehabilitation projects that help meet the Statewide restricted units to City's affordable housing needs. Communities low income (Flanders Development Pointe - total 82 Housing Element Policies: 1.12, 3.3 Authority and units) others; California Low - Income Housing Tax Credits; variety of other sources CITY OF TUSTIN TECHNICAL MEMORANDUM 79 HOUSING ELEMENT 11: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 80 2008 Responsible Effectiveness Program Agency Funding Source Objective 1998-2000 2001-2008 1.15 Economic Integration within Sphere of County of Orange City General On going request to both 10 notices requested Influence Fund; Staff time agencies. Request that the Orange County Planning Commission and the Environmental Management Agency (EMA) notice the City of Tustin of any pro- posed development activities within Tustin's sphere of influence. Housing Element Policies: 1.1,1.4, 1.5 1.16 Senior Citizen Housing Redevelopment Redevelopment Preservation of 100 at -risk A site on Sycamore 54 units for 100% Continue to identify sites that are suitable for senior Agency; Agency Housing and 60 new units by 2005. Avenue was affordable senior citizens housing projects. These sites will be promoted Community Set -Aside Funds; identified for a 60 apartments were for private development and applications will be Development HELP; Low- unit senior housing constructed made for any available subsidy funds. Department Income Housing project (Heritage Place at Tax Credits; Sycamore) Housing Element Policies: 1.1, 1.13,1.15 Private Activity Bonds issued by California Statewide and others 1.17 Senior Services Program Parks and City General Assist 850 elderly annually Assist 920 elderly Develop a comprehensive transportation program, Recreation Funds Annually case management, information and referral, and Department shared housing program. Housing Element Policies: 1.15, 2.3 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 80 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN TECHNICAL MEMORANDUM RA HOUSING ELEMENT 1/: Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.18 Recycling Single -Family Uses in R-3 Zones Community City General Respond to all requests for 1 additional unit at Density bonuses Into Multiple -Family Units Development Fund and density bonus per City 135 A Street were granted to Continue to encourage developers to consolidate Department Redevelopment codes. constructed Lennar as an individual lots into larger cohesive developments. Agency Funds; incentive for the Density bonuses may be considered as an incentive to Staff time creation of consolidate lots. affordable units at the Villages of Housing Element Policies: 1.11 Columbus 1.19 Ongoing Review of Housing Element Community City General On-going Reviews Reviews Programs Development Fund; Staff time accomplished accomplished. From the date of adoption of the Housing element, Department General Plan Annual prepare an annual report to the Planning Commission Reports submitted to assessing previous years' accomplishments toward HCD. meeting Housing Element objectives. Submit the Annual Report to the State HCD. Housing Element Policies: all policies 1.20 Consolidated Plan Community Variety of local, Prepare Consolidated Plan Prepared Prepared The City of Tustin shall prepare an update of the Development State, and in 2005. Consolidated Plan Consolidated Plan Consolidated Plan that provides a comprehensive Department Federal funding; Prepare Action Plan for FY 2000-05. for FY 2005-10. assessment of housing needs, a housing development City General annually Action plans Action Plans plan incorporating Federal, State and local public and Fund and prepared annually. prepared annually. private resources, and a one-year implementation Redevelopment plan. Agency Funds Staff time Housing Element Policies: 1.15,1.16,1.18, 2.1, 4.1, 4.2, 4.3, 4.4, 5.1, 5.2, 5.3, 5.4, 5.5 CITY OF TUSTIN TECHNICAL MEMORANDUM RA HOUSING ELEMENT 1/: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 1.21 Zoning Studies Community City General Initiate Zoning Studies by Density Bonus Revised Density To facilitate the new construction goals of the 1998- Development Fund, January 2002 and complete Ordinance adopted Bonus Ordinance in 2005 Regional Housing Needs Assessment, the City Department Redevelopment any proposed amendment in 1999 compliance with intents to undertake zoning studies to consider new Agency funds in 2003. recent change in programs to encourage and promote affordable State Law. housing and recommend appropriate amendments for actions by the Planning Commission and the City Adopted a Planned Council. These studies include: Community District (1) Creation of zoning provisions which will to accommodate accommodate mixed uses in portions of the mixed use project in City, particularly in the Old Town Old Town (Prospect Commercial Area; Village). (2) Provide relaxation of certain development standards and incentives for projects which include affordable housing units upon City Council's approval; (3) Provide a process for individuals with disabilities to make requests for reasonable accommodation to relief from various land use, zoning, or other building rules, policies, and/or procedures of the City. Housing Element Policies: 1.1, 1.11 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 82 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN TECHNICAL MEMORANDUM M. HOUSING ELEMENT //: Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.22 Private Streets City of Tustin None necessary Continue 69 private streets The City of Tustin has adopted standards for private created streets in new residential developments. To reduce construction costs, developers may be permitted to install private rather than public streets, wherever feasible. Housing Element Policies: 1.17 1.23 Building Codes City of Tustin, City General On-going '97 Plumbing, 2007 California The State of California has determined that the over- Community Fund; Staff time Mechanical & Building Codes riding value is the protection of the health and safety Development Building Code adopted of residential occupants. Continue to adopt the Department 1996 Electrical Codes Uniform Building Code pursuant to the state adopted directives and where local amendments are proposed to reflect local climatic, geologic or topographic conditions, and minimize, wherever possible, impacts on provision of housing. Housing Element Policies: 5.4 CITY OF TUSTIN TECHNICAL MEMORANDUM M. HOUSING ELEMENT //: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Effectiveness Objective 1998-2000 2001-2008 1.24 Site Improvements Community Developer Evaluate the use of special Converted portions Created assessment The requirement for the developer to construct site Development funded assessment district funding of public works districts at Tustin improvements often result in passing these costs on Department, at the MCAS -Tustin by assessment district Legacy. the housing consumer. These costs are reflected in the Redevelopment 2005 and its use in other bonds to fixed rate to cost of housing that eliminates an even greater Agency developing areas. lower costs. proportion of the population from financially received qualifying for the purchase of housing. The financing of public improvements by a special assessment district or community facility district on a per parcel benefit basis may enable a greater proportion of the market to qualify for housing. Assessment district financing has been implemented in the East Tustin area and is being used to pay for public improvements. The City will assess opportunities to utilize these public improvement financing techniques in newly developing areas such as MCAS Tustin and determine whether they are financially feasible. In creating any new assessment districts, an evaluation should be completed of the developer's activity to advance pay off bonds at the close of escrow. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 84 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT //: Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.25 Fees, Exactions, and Permit Procedures Community City General On-going Fees waived for 1 Entitlement Consider waiving or modifying various fees or Development Fund; project application fees, exactions normally required where such waiver will Department, Redevelopment permits fees, and reduce the affordability gap associated with providing Redevelopment Agency Set- inspection fees for housing of the elderly and for very -low and low- Agency Aside Housing 192 beds transitional income households. facility at the Village of Hope (Orange Housing Element Policies: 1.11 County Rescue Mission) were waived. Certain building codes requirements were also waived and expired permits were reissued. The City also effectively provided construction management for the project. 1.26 Environmental Constraints Community General Fund; On-going 11 Negative Competed Final Continue to alleviate the necessity of delays in Development Private Declarations Program EIS/EIR for processing, and mitigating requirements incorporated Department, developer cost adopted; prepared a MCAS Tustin. into the development plans by requiring program Redevelopment recoverable draft and final environmental impact reports (EIR) on all major Agency Program Joint development projects whenever possible. EIS/EIR for MCAS - Tustin project Housing Element Policies: 1.11 CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT //: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 86 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 1.27 Density Bonus Program Community General Fund, Process all requests for Density Bonus 182 density bonus Promote Density Bonuses to facilitate the construction Development Redevelopment density bonuses. Ordinance adopted units granted to of affordable housing. Under State law, applicants Department Agency Housing 11/1/99; one Lennar/Lyon for the may file for density bonuses when projects Set -Aside Funds application creation of incorporate 20 percent of units for low-income affordable units at persons; 10 percent of units for very low-income units; Columbus Square or 50 percent of units for senior citizens. and Grove. Housing Element Policies: 1.11 1.28. MCAS -Tustin Redevelopment Project Area. Tustin Community Redevelopment Adopt MCAS -Tustin Adopted WAS Redevelopment Agency funds Specific Plan and Tustin Specific Plan The City anticipates the creation of a new Agency Redevelopment Project and WAS Tustin redevelopment project area for MCAS -Tustin site Area Redevelopment through the adoption of a Specific Plan by the City Project Area. and a Redevelopment Project Area by Fiscal Year 2002-03. Housing Element Policies: 1.2;1.6;1.8 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 86 2008 TABLE HTM- 36 . EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Responsible Program Goal 2: Equal Housing Opportunity Effectiveness Funding Source I Objective I 1998-2000 1 2001-2008 2.1 Fair Housing Community CDBG funds Assist approximately 400 2,289 1,541 complaints The City shall continue to provide housing counseling Development Tustin residents annually, complaints processed processed services to assure equal housing opportunities within Department, Fair 2,000 residents by 2005. the City. The City allocates approximately $15,000 Housing Council of annually for handling tenant/ landlord disputes, Orange County housing discrimination cases, counseling, tenant rights, fair housing education, and education within the City. The City will continue to promote the fair housing educational resources offered by adding the services on the City's webpage, Code Enforcement brochure, and the Community Development directory. Housing Element Policies: 2.1, 2.2, 2.4 2.2 Shared -Housing TLC, Parks and CDBG funds Continue 25 cases 50 cases Continue to provide coordination and support to a Recreation Services home sharing program funded in part by the Department, and Feedback Foundation, Inc. as part of TLC Community (Transportation Lunch and Counseling) and the Development Orange County Housing Authority. Department Housing Element Policies: 2.3 CITY OF TUSTIN TECHNICAL MEMORANDUM M. HOUSING ELEMENT /I: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 2.3 Housing Referral Program Police Department; City General • 8,750 referrals to social 4,375 social services 4,850 social services Continue to provide housing referral services to Parks and Fund, CDBG agencies by 2005 referrals; referrals; 50 shared families in need of housing assistance and Recreation Funds 25 shared housing housing referrals information. This program consists of three City Department; • 50 referrals for shared referrals departments disseminating information to the public Community housing by 2005 at all times. Development; Redevelopment • The Police Department refers homeless people to Agency different agencies that provide shelters and food for various segments of the population. • The Parks and Recreation Services Department provides housing information and social service information to the senior citizen population. The Community Development Department and Redevelopment Agency provide housing and social service information to all segments of the population during regular city hall business hours. The Community Development Department also serves as a clearinghouse for the Community Development Block Grant Program and represents the City at Housing Authority and OCHA Advisory Committee Meetings. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 88 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Goal 3: Ownershin Housine 3.1 Condominium Conversions Responsible City General Impose requirements Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective City departments utilize the following documents and to condominiums to process a conditional use -permit, Department, City Redevelopment also make these documents available to the public: provide relocation assistance, and/or to provide Council, Agency Housing • Directory of Senior Citizens Services prepared by incentives and assistance for purchase of the units by Redevelopment Set -Aside Funds the Area Agency on Aging Senior Citizen's Office low- to moderate -income households. Agency • Social Service Assistance Booklet prepared by Housing Element Policies: 3.1, 3.2, 3.3 Connection Plus • Orange County Housing Directory prepared by OCHA and the OCHA Advisory Committee. Housing Element Policies: 2.2, 2.3, 2.4, 2.5 Ongoing Review of Housing Element See Progam1.19 Programs Consolidated Plan See Program 1.20 Goal 3: Ownershin Housine 3.1 Condominium Conversions Community City General Impose requirements 14 units (Laguna No units converted Continue to require developers converting apartments Development Fund, where applicable. Gardens) to condominiums to process a conditional use -permit, Department, City Redevelopment provide relocation assistance, and/or to provide Council, Agency Housing incentives and assistance for purchase of the units by Redevelopment Set -Aside Funds low- to moderate -income households. Agency Housing Element Policies: 3.1, 3.2, 3.3 CITY OF TUSTIN TECHNICAL MEMORANDUM :• HOUSING ELEMENT TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Goal 4: Affordable Housing Preservation 4.1 Replacement Housing Responsible Redevelopment As necessary Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 3.2 State Home -Ownership Assistance Redevelopment Redevelopment Assist 30 First time 8 first time No assistance The City's Redevelopment Agency provides a First Agency Agency Housing homebuyers by 2005 homebuyers assisted provided Time Homebuyers program utilizing housing set- from the market as part of a specific redevelopment Set -Aside Funds; developers by RDA program, aside funds. The Redevelopment Agency also applies project pursuant to California Community State and Federal not State for and will explore the use of other funding Redevelopment law. sources opportunities such as HELP, HOME funds, and other Housing Element Policies: 2.5 State and Federal programs. Housing Element Policies: 3.1, 3.3 Bonding Programs See Program1.14 Ongoing Review of Housing Element See Program1.19 Programs Consolidated Plan See Program1.20 Goal 4: Affordable Housing Preservation 4.1 Replacement Housing Redevelopment Redevelopment As necessary 56 units removed 30 units removed Ensure rehabilitation or construction of an equal Agency Agency Housing (replacement (replacement number of replacement units when low and moderate Set -Aside Funds; complete) complete) income residential units are destroyed or removed Private from the market as part of a specific redevelopment developers project pursuant to California Community Redevelopment law. Housing Element Policies: 2.5 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 90 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN TECHNICAL MEMORANDUM 91 HOUSING ELEMENT 11: Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 4.2 Housing Rehabilitation' Community CDBG and The City plans to 63 units assisted with 56 units assisted Allocate available CDBG and Redevelopment Agency Development Redevelopment Rehabilitate 100 units by RDA funds with RDA funds funds to finance public improvements and Department, Federal Agency Housing 2005. The City also plans to rehabilitation of residential units in target areas. Department of Set -Aside Funds increase homeownership Housing and Urban opportunities, conserve, Housing Element Policies: 1.2, 5.1, 5.2 Development maintain, and rehabilitate Redevelopment and promote conservation A enc of City's housing stock. 4.3 Housing Authority Orange County HUD, CDBG, Continue 1 developer contract No contract was Contract with the Orange County Housing Authority, Housing Authority, Redevelopment with OCHA processed where necessary, for the development and operation Redevelopment Agency Housing (Tustin Gardens) of federally assisted low- and moderate -income Agency Set -Aside Funds housing programs. Housing Element Policies: 1.5,1.16,1.17 4.4 Rental Assistance County of Orange HUD Issue 200 certificates/ 632 certificate/ Approximately 350 Encourage the availability of Section 8 rental Housing Authority vouchers annually -1,000 by vouchers issued certificate/ vouchers assistance certificates and voucher certificate program 2005. issued annually assistance funds through the Orange County Housing Authority. To encourage the maintenance of existing and establishment of new certificates, support the County's efforts to obtain continued Federal funding. Housing Element Policies: 4.1, 4.2 CITY OF TUSTIN TECHNICAL MEMORANDUM 91 HOUSING ELEMENT 11: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Responsible Effectiveness Program Agency Funding Source Objective 1998-2000 2001-2008 4.5 Affordable Senior Housing Project and Community None necessary Maintain 38 units of 120 units maintained 120 units maintained Senior Board and Care Facility Development affordable Senior Housing. (100 Tustin Gardens (100 Tustin Gardens To maintain 38 units of affordable housing for Seniors Department + 20 Mitchell) + 20 Mitchell) located at 17432-17442 Mitchell Avenue (20 units) and a senior citizen board and care facility in operation at 18 units maintained 1262 Bryan Avenue (18 units). (Bryan) Housing Element Policies: 5.1, 5.2, 5.3, 5.4 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 92 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 .6 Preservation of Assisted Housing Community • CDBG Preserve 100 units Tustin has four low-income housing projects with a Development currently at greatest risk Monitored Tustin Monitored Tustin total of 100 units at risk of conversion to market rate Department, • Redevelopme Gardens and Gardens and in 2001. If project owners choose to convert the Redevelopment nt Housing preserved all at -risk preserved all at -risk projects to market rate housing, coordinate the Agency Set -Aside units units provision of financial and administrative resources to Funds, State preserve these units as affordable housing. and Federal Funds a) Monitor Units at Risk: Maintain contact with owners of at risk units as potential conversion dates • Low Income approach to determine whether Section 8 contracts or Tax Credits, affordability covenants have been renewed or are Private planned to be renewed. Discuss with the owner of the Activity "at risk" projects the City's desire to preserve the Mortgage units as affordable. Revenue Bonds b) Tenant Education. Work with tenants of at risk units in danger of converting. Provide tenants with • Variety of information regarding potential tenant purchase of other sources buildings including written information and any related workshops. Act as a liaison between tenants and nonprofits potentially involved in constructing or acquiring replacement housing. If existing staff is not able to provide adequate staffing for this program, provide outside consultants to support the program. CITY OF TUSTIN TECHNICAL MEMORANDUM 93 HOUSING ELEMENT 11: TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 94 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective c) Work with Nonprofits. Work with nonprofit housing providers to explore and if appropriate, facilitate acquisition or replacement of at risk units. d) Reserve Fund. Earmark development housing set- aside funds to assist priority purchasers with the down -payment and closing costs associated with purchasing projects at risk. Continue to monitor other potential funding sources, such as State grants and HUD funds. Housing Element Policies: 4.1, 4.2, 4.3, 4.4 Mobile Homes See Program 1.2 Deed Restrictions: See Program 1.4 Tax Increment Financing See Program 1.8 Transitional Housing See Program 1.10 Ongoing Review of Housing Element See Program 1.19 Programs Consolidated Plan See Program 1.20 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 94 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Responsible I Effectiveness Program Agency I Funding Source Objective 1 1998-2000 1 2001-2008 Goal 5: Neighborhood Conservation 5.1 Enforcement of Building and Housing Community City General Investigate 150 Approximately 1,800 4,285 code Codes Development Fund substandard housing cases code enforcement enforcement related Continue to enforce building and housing codes to Department annually and 750 cases by inspections were inspections ensure health and safety, rectify Code violations and 2005. conducted. conducted. thereby improve the overall character of the community. Enforcement will include identifying substandard housing units and those that are otherwise identified as a threat to the health and safety of occupants. Actions will be taken pursuant to the law to demolish, rebuild, or correct the code violations. This program includes notification of taxing agencies upon failure to gain code compliance from the property owner to allow City to recover enforcement cost. Housing Element Policies: 5.3, 5.4 5.2 CDBG Funds for Commercial Community CDBG Receipt of $20,000 Two projects Project is Rehabilitation Development annually, approximately completed (Rengel temporarily Continue to make applications for CDBG funds. Department $100,000 by 2005. and Heredia) suspended. Promote the availability of these funds for rehabilitation by newspaper articles, announcements in Tustin Today (a City publication that is mailed to all households) Housing Element Policies: 1.2, 5.1, 5.2, 5.3, 5.4 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 95 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 96 2008 Responsible Effectiveness 1998-2000 2001-2008 Program Agency Funding Source Objective 5.3 Cultural Resources District Community CDBG, City Rate historic structures 9 units rehabilitated 79 certificate of There are a large number of structures in the City that Development General Fund, where applicable and appropriateness were constructed before and after the turn of the Department State grants process 20 certificates of issued century. Continue to utilize the City's Cultural appropriateness. Resources Overlay District to safeguard the heritage of the City by preserving neighborhoods and structures that reflect the City's heritage and past. Through the District, promote the public and private enjoyment, use and preservation of culturally significant neighborhoods and structures. Continue to require that any alteration of a designated resource or construction improvements in the District conform to the requirements of the Cultural Resources Overlay District. Owners of historic landmarks or properties within the District are required to obtain a certificate of appropriateness before beginning any type of exterior construction, alteration, or demolition. A certificate of appropriateness certifies that the proposed changes are consistent with the design guidelines and are appropriate within the district context. Housing Element Policies: 5.5 Ongoing Review of Housing Element See Program 1.19 Programs Consolidated Plan See Program 1.20 Building Codes See Program 1.23 Goal 6: Environmental Sensitivity CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 96 2008 TABLE HTM- 36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1998 2008 Program Responsible Agency Funding Source Objective Effectiveness 1998-2000 2001-2008 6.1 Energy Conservation Community None necessary Require all new units 1,556 new units Require all new construction to be subject to State Development within planning period. required to meet energy conservation requirements (Title 24) as a Department state standards condition for the issuance of a building permit. Housing Element Policies: 6.2 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 97 2008 TABLE HTM- 37 PROGRESS TOWARDS OBJECTIVES 1998-2008 CITY OF TUSTIN Quantified Unit Type/Description Objectives Accomplishments' Very Low Low Moderate Upper NEW CONSTRUCTION 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 Emergencyz 192 192 192 MCAS Tustin Transitional Family 50 49 49 MCAS Tustin Social Services 60 90 90 Granny Flats 10 0 New Owner Housing 432 953 17 128 77 731 New Senior Housings 97 54 54 Density Bonusb 160 182 Recycling of SFD to MFD 25 0 Subtotal 5,003 4,289 472 192 1,070 2,555 RHNA (1999) 3,298 694 489 778 1,337 Difference 1,705 (222) (297) 292 1,218 REHABILITATION Owner Occupied Housing 40 Rental Rehabiitation Loans/Grants 120 ' 56 19 14 23 Multi-Family Acquisition/Rehab/ 100 Conversion/Resale Multl-Family Acquisition/Rehab/ 2Q0 Conversion/Rental Total Rehabilitation 460 56 19 14 23 PRESERVATION Rancho Alisal 69 69 8 61 Rancho Maderas 54 54 6 48 Rancho Tierra 51 51 38 13 Affordable Senior Housing -Mitchell 20 20 12 8 Senior Board & Care -Bryan Ave. 18 18 18 Old Town Residential 29 Tustin Gardens 100 100 100 Total Preservation 341 312 164 148 OTHER AFFORDABLE HOUSING 1~~ Time Homebuyer Down Payment Assistance Loans ~ 40 6 6 County Mortgage Credit Certificates a 0 Section 8 Rental Voucher Assistance 1,500 3,500 3,500 Shared Housing Referrals 75 50 50 CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT 98 2008 TABLE HTM- 37 PROGRESS TOWARDS OBJECTIVES 1998-2008 CITY OF TUSTIN Unit T e/Descri tion Quantified Ob'ectives Accom lishments' Ve Low Low Moderate U er Deed Restrictions e 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 includes: 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 Park) -16 units. } Tustin Family Campus (Orange County Social Services Agency) - 90 beds 54 units at Heritage Place and 201 units at Monarch Village e 182 density bonuses granted to Lennar at Villages of Columbus ~ Temporarily suspended. a Program suspended. e 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 io Includes: 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 Park) -16 units. Sources: (1) Effectiveness of Housing Programs 1998-2008, City of Tustin; (2) Five Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas-for Fiscal Years 2005-2006 to 2009-2010 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 99 2008 APPENDIX A AFFORDABILITY GAP ANALYSIS CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT 2008 City of Tustin Comprehensive Affordable Housing Strategy v Appendix B Affordability Gap and leveraged Financing Analysis February 15, 2008 Prepared for: City of Tustin Submitted By: David Paul Rosen & Associates Northern California David Rosen, Principal 1330 Broadway, Suite 937 Oakland, CA 94612 2509 Phone: 510-451-2552 Fax: 510-451-2554 e-mail: David®DRAConwltants.com www.draconsu Itants.com Southern Califomia Nora Lake-Brown, Principal 3941 Hendrix St Irvine, CA 92614-6637 Phone: 949-559-5650 Fax: 949-559-5706 e-mail: Nora®DRAConsultants.com www.draconsultants.com Table of Contents PA 1.0 Executive Summary ................................... 2.0 Housing Prototypes .................................................................................... 9 3.0 Financing Scenarios, Income Targeting and Affordable Housing Cost......... 9 3.1 Financing Scenarios ................................:........................................... 9 3.2 Target lncorne Levels ........................................................................... 9 3.3 Affordable Housing Cost Definitions .................................................... 12 3.4 Occupancy Standards ......................................................................... 12 3.5 Utility Allowances ............................................................................... 13 3.6 Affordable Net Rents and Affordable Monthly Housing Cost ................ 14 4.0 Development Costs ..........................:................................................ ..... 16 4.1 Developer Interviews, Rental Housing Development ........................... 16 4.1.1 Jamboree Housing .................................................................... 16 4.1.2 Keyser Marston Associates ........................................................ 17 4.2 Developer Interviews, Owner Housing Development .......................... 17 4.2.1 Springbrook Advisors ................................................................ 18 4.2.2 Nevis Homes ............................................................................ 18 4.2.3 The Olson Company ................................................................. 18 4.2.4 Keyser Marston Associates ........................................................ 18 4.2.5 C1M Group ............................................................................... l9 4.2.6 William Lyon Homes ................................................................ 19 4.2.7 Sun Cal Companies .................................................................. 19 4.2.8 John Laing Homes .................................................................... 19 4.3 Land Acquisition Costs ........................................................................ 20 4.4 Development Impact Fees ................................................................... 21 4.5 Hard Costs and Site Improvement Costs .............................................. 24 4.6 Estimated Total Prototype Development Costs ..................................... 25 5.0 Operating and Financing Cost Assumptions ............................................... 26 5.1 General Operating Costs, Rental Prototype ..............................•.•••••••••• 26 5.2 Financing Costs ......................................:............................................ 29 City of Tustin Page i Affordability Gap and Leveraged Financing Analysis b.0 Per Unit Affordability Gaps ........................................................................ 29 7.0 Renter Leveraged Financial Analysis ........................................................... 32 7.1 Hard Construction Costs ..................................................................... 32 7.2 Eligible Basis and Tax Credit Equity Calculations ................................. 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 TABLE PAGE 1. Homeowner Per Unit Subsidy Requirements .............................................. 4 2. Tenant Per Unit Subsidy Requirements ....................................................... 6 3. Average Per Unit Subsidy Requirements, Leveraged Financing ..................................................................................... Scenarios ...:........ 8 4. Owner Housing Prototype Projects ............................................................. 10 5. Rental Housing Prototype .......................................................................... l 1 6. Affordable Housing Cost Definitions .......................................................... 12 7. Current Monthly Utility Allowances, County of Orange .............................. 14 8. Affordable Net Rents ...:.....................................................................::........ . 15 .. . 9. Affordable Monthly Housing Cost .............................................................. 1.5 10. Tustin Legacy Comparable Land Prices ...................................................... 20 11. Per Unit Land Acquisition Cost Assumptions by Prototype .......................... 21 12. Development Processing and Impact Fee Assumptions, Owner Housing Prototypes ............................................................................................. 22 13. Development Processing and Impact Fee Assumptions, Rental Housing Prototype .............................................................................................. 2 3 14. Per.Net Square Foot Hard Construction Cost Assumptions by Prototype ..... 25 15. Estimated Prototype Development Costs, Owner Housing Prototypes......... 27 16. Estimated Prototype Development Costs, Renta! Housing Prototype........... 28 17. Development and Financing Cost Assumptions, Owner Housing Prototypes .................................................................................... 30 18. Development and Financing Cost Assumptions, Rental Prototype ................................................................................................. 31 19. Income Targeting Assumptions for Leveraged Financing Scenarios ............. 33 20. Construction and Permanent Sources and Uses, Leveraged Financing Analysis, Rental Housing Prototype ..........................................:............ 35 City of Tustin Affordability Gap and Leveraged Financing Analysis Page iii City of Tustin Affordability Gap and Leveraged Financing 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 opptions for new residential development in Tustin. The "affordability gap" methodology determines the difference between the supportable mortgage on the unit at affordable rents and sales prices and the adua) development cost 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 Redevelopment 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 project. 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 by 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 1 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 rototype, the gap analysis calculates the difference between total development costs andpthe conventional mortgage supportable by net operating income from restricted rents. For owners, the gap is the difference between development costs and the supportable 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 three income levels:. Income Limit Affordable Housing Cost 1. Very Low Income 50% of Area Median Income (AM1~, adjusted 30% of 50% AMI for household size 2. Low Income 80% of AMI, adjusted for household size 30% of 70%AMI 3. Moderate Income 120% of AMI, adjusted for household size 35% of 110% AMI Depending upon 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 fallowing 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 AMI, 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 might be used to subsidize affordable rental and ownership housin~ in Tustin. For ownership housing, per unit mortgage assistance, as available, genera y 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 only); 2. 4% tax credits with tax-exempt bonds; and 3. 4% tax credits, tax-exempt bands, 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 Develop Area (DDA) by HUD in ?007, 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 Protot +, Unit Bedroom Count Owner Prototype #1 Attached Townhome Two Bedroom Three Bedroom Four Bedroom Average Owner Prototype #2~ Stacked Flat Condominium One Bedroom Two Bedroom There Bedroom Four Bedroom Average Owner Prototype #3' High Density Condominium One Bedroom Two Bedrooom Three Bedroom Four Bedroom Average Owner Prototype #4' Mixed Use, Ground Floor Retail One Bedroom Two Bedrooom Three Bedroom Average Very Low Low Moderate Income Income' Income' $366,000 $322,400 $195,500 5387,800 S339,400 $198,400 $426,800 $374,600 5222,300 $393,500 $345,500 $205,400 $258,600 $219,900 $107,100 $259,000 $215,500 $88,600 $267,100 $218,800 $77,800 $290,500 $238,300 $86,000 $268,800 $223,100 $89,900 $407,500 $368,800 $256,000 $432,500 $389,000 $262,100 $542,000 $493,700 $352,600 $569,400 $517,200 $364,800 $487,900 $442,200 $308,900 $491,700 $453,000 $340,200 S537,400 $493,900 $366,900 $595,000 $546,600 $405,600 $541,300 $497,800 5370,900 Source: David Paul Rosen & Associates City of Tustin Affordability Gap and leveraged Financing Malysis Page a Notes to Table 1: 'Per unit subsidy requirements are calculated as per unit total development cost less affordable home purchase price, based on an occupancy 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 650 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 1,1006. ~ Very low income owner affordable housing is cost calculated as 30 percent of 50 percent of AM1, adjusted for household size. Average very low income affordable home purchase price is $70, 764. a Low income owner affordable housing cost is calculated as 30 percent of 70~ percent of AMI, adjusted for household size. Average low income affordable home purchase price is $116,457. 4 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 x1 average unit size is 1,296 square feet. Average per unit development cost is $468,663. Per unit development costs are adjusted by unit size/bedroom count. 6 Owner Prototype ~2 average unit size is 1,142 square feet. Average per unit development cost is 6339,591. Per unit development costs are adjusted by unit size/bedroom count. Owner Prototype x3 average unit size 1s 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 A~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 Unit Bedroom Count One Bedrooms Two 8edroom6 Three Bedroom' Four Bedrooms Average Very Low low Moderate Income Income9 Incomes $311,300 $294,600 $211,400 $348,000 $329,300 $235,600 $321,800 $301,000 $197,000 $402,000 $379,600 $174,800 $345,775 $326,125 $204,700 Source: David Paul Rosen & Associates. City of Tustin Affordability Cap and Leveraged 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 $300, 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 one, per California Redevelopment law. 2 Very low income renter affordable housing cost is calculated as 30 percent of 50 percent of AMI, adjusted for household size. Average very law 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 $321,075. 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 Gap and Leveraged Financing Analysis Page 7 Table 3 Average P+cr Unit Subsidy Requirement Rental Housing Prototype: Stacked Flat Apartment leveraged Financing Scenarios City of Ti~stln 2008 Levera Finan ina Scenarios 996 Tax Credits 4°~ Tax Credits, Tax-Exempt Bonds 4% Tax Credits, Tax-Exempt Bonds, Multi-Family Housing Program (MHP) Source: David Paul Rosen & Associates. Renter Prototype Stacked Flat Apartment $57,000 5140,100 S 109,600 Clty of Tustln Affadablllty Gap and t.everaged FinancingAnaiysis Page 8 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 f=inancing Scenarios, Income Targeting and Affordable Housing Cost 3.7 Financing Scenarios DRA first modeled the owner and renter housing prototypes under a convent'wnal financing scenario that does not incorporate leverage from alternative 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/tenant income level. In the leveraged financing analysis, described in Section 7.0 below, we model the renter housing prototype assuming use of the Lvw lncome 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 factors. The affordability gap calculations are based on the 2007 median household income of $78,700 for Orange County. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 9 Table 4 Owner Housing Prototype Projects City of Tustin 2008 PROTOTYPE Owner 1 AuachedTownhome Owner 2 Stacked Flat Condominium Owner 3 High Density Condominium Owner 4 Mixed Use, Ground Floor Retail UN1T COUNT 234 Units 325 Units 400 Unhs 2D Units ZONING R3 R3 PC C2 P NUMBER OF STORIES 2.5 Stories 2 Stories 4 Stories 3 Stories (2 Stories Resid.) CONSTRUCTION TYPE Type V Type V Type V Type V Wood Frame Wood Frame Wood Frame Wood Frame DENSITY (DU'S/Acre) 18.0 25.0 45-50 29.0 FLOOR AREA RATIO (FAR} 0.5 0.7 1.5 1.5 IJ1ND AREA Ucra) 13.00 Acres 13.00 Acres 8.00 Acres 0.69 Acres UNITS BY BR COUNT One Bedroom 0 75 100 4 Two Bedroom 90 100 ~ 125 6 Three Bedroom 90 100 125 10 Four Bedroom 54 50 50 0 UNIT SIZE Wet Square Feet) One Bedroom WA 950 1,000 1,700 Two Bedroom 1,050 1,050 T,150 1,400 Three Bedroom 1,300 1,200 1,650 1,750 Four Bedroom 1,700 1,500 1,800 N/A Average Square Feet 1,296 1,142 1,330 1,5 i5 BLDG.SQ.FEET Net Living Area 303,300 371,250 540,000 30,300 Community Space 2,500 2,000 0 0 Total Net Bldg. Square Feet 305,800 373,250 540,000 30,300 TYPE OF PARKING Garage Carport Parking Structure Garage NO.OF PKG. SPACES Garage 468 0 0 40 ~~~ 0 650 0 0 Opp 59 62 100 10 Puking Structure 0 0 700 0 TOTAL SPACES 527 732 800 50 City o(Tustin AffordabilRy Gap and Leveraged FinancingAnalyds ~~ ~~ Table s Rental ltowtng 11K City oflLstin 2008 PROTOTYPE Ranur Prototype Stacked Flat rtmeMs UN17 COUNT 325 Units TYPE OF PRODUCT Stacked Flats 20NING ~ NUMBER OF STORIES 2 CONSTRUCTION TYPE Type V Wood Frame DENSITY (DU`S/Acrra 25.0 FLOOR AREA RATIO (FAR) . 0.6 LAND AREA N~ 13.00 Acres UNf1S 8Y DR COUNT One Bedroom 73 Two Bedroom 100 Twee Bedroom 100 Four Bedroom 50 ManaRer'a Unlb Ci-w Bedroom) y UNIT SIZE (Net Square Feet) One Bedroom 750 1Wvo titdroom 950 TbretBedraom 1,050 Four ~~ .1,250 Average Sgwrc Feet 981 ~.DG. S~ t~E1' Net LivingArea 319,150 Community Space p Tots! Net Bldg. Square Feet 319,150 TYPE OF PARKING Parking Structure NO.OF PARKING SPACES ~'atl~ 0 carlwrt o Open S1 Park'utg Structure 650 TOTAL SPACES 731 cry or7lxun All'ardabilhy Gap and leMeraged Financing AnalysFs Page t t 3.3 Affordable Housing Cost Definitions Calculation of the affordability gap requires defining affordable housing expense for renters and owners. Table 6 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 Occupants Extremely low income (30% of AMI and below) Very low income (greater than 30% to 50% of AMl} Low income (greater than 50% to 80% of AMI) Moderate income (greater than 80% to 120% of AMI) AMI =Area Median Income 3.4 Occupancy Standards Tie of Housir~, Rental nershi Not Analyzed 30% of 50% AMI 30% of 60% AMI 30% of 110% AMI Not Analyzed 30% of 50%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 Tustin Affordability Gap and Leveraged F9nancing Analysis Page 12 3.S Utility Allowances Allowable affordable net rents are calculated by subtracting allowances for the utilities paid directly 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 t, 2006 provided by the County of Orange, Housing and Community Services Department, summarized in Table 7 below. The rental gap analysis assumes that the resident pays utilities (assumed to include basic electric and electric heating, cooking and water heating). It assumes the landlord pays 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 require electricity or gas. City of Tustin 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 Monthly Utility Allowancet 1 Bedroom $S4 2 Bedroom $68 3 Bedroom $98 4 Bedroom $109 Owner Households Bedroom Size ~ Monthly Utili Allowance2 1 Bedroom $93 2 Bedroom $110 3 Bedroom $148 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). 2 Includes electric utilities {heating, cooking, water heating and basic electric) and water, trash and sewer. City of Tustin Affordabifiiy Gap and t_everaged Financing Analysis Page i4 Table 8 Affordable Net Rents City of Tustin 2008 Unit Size (No. 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 Table 9 Affordable Monthly Housing Cost s City of Tustin 2008 Unit Size (No. of Bedrooms) Very Low 509'o AMI low . 80% AMl Moderate 120°~ AMI 1 Bedroom 787 $1 102 $2 020 2 Bedrooms $885 1 240 2 27'2 3 Bedrooms $984 $1 377 $2 525 4 Bedrooms $1 062 $1 478 $2 727 ' U.S. Department of Housing and Urban Development published 2007 very low income limits, adjusted proportionally for 60°I° of percentage of AMf category. Gross rents are calculated assuming an occupancy standard of 1 person per bedroom plus one, consistent with Califomia Redevelopment Law. Net rents are calculated assuming 309'° of gross income spent on rent and then deducting the utility allowances from Table 7. Z California 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 30q° 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, uti lities and HOA dues. miry or i ustin Affordability Gap and Leveraged Financing Analysis Page 15 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, saleslmarketing, 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. Development 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 costs: ~ ~ ~. . • Laura Archuleta, Jamboree Housing • Jerry Trimble and Michael Wong, Keyser Marston Associates 4.1.1 jamboree Housing 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- style, 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. In 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 $1.55 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 Gty 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 $270 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.i.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, C1M Group • Tom Grable, William Lyon Homes • Ian Vickers, Sun Cal Companies • Steve Kabel,lohn Laing Homes Below we review the results of these interviews and detail the 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 Financing Analysis Page 17 4.2.1 Springbrook Advisors Springbrook Advisors represents Lennar and Lyon Homes on development projects throughout Southern California. In 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. 4.2.2 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 DRA with development cost estimates for the four owner prototypes, based on the company's development experience in Orange County. For Owner Prototype #1, Attached Townhomes, Olson estimates $78 per 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 hard costs and a $21,000 to $27,000 cost per parking space for Owner Prototype ~3, High Density Condominiums. For Owner Prototype #4, Mixed Use Condominiums, Olson 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 Affordability Gap and Leveraged Financing Analysis Page ~ 8 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 $30 per square foot for parking construction. For a townhouse product with 13 dwelling units to the acre, they estimate hard costs at $96 per square foot. A mixed use, Texas Wrap style project with 75 dwelling units to the acre is estimated to have $119 per square foot hard costs with additional $35 per square foot costs for parking construction. AI[ 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 $140 per gross square foot for hard costs, with additional costs of $25,000 per at-grade structured parking space to $35,000 per below-grade structured parking space. 4.2.6 William Lyon Homes 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 !ow and moderate income households and 12 are transitional housing units. The hard costs estimated for this project total $76 per square foot, inclusive of two-car garages within the building envelopes. The Land cost for this project was $133,000 per unit or approximately $79.50 per square foot. William Lyon Homes is also developing a 156-unit development of townhomes and flats, with a mix of market rate and affordable units. This project's hard costs are $98 per square foot and~the land cost was $72,600 per unit or $32 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 $95 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 familiar with stacked flat and mixed use developments in the Tustin area. These projects have hard costs ranging from $90 to $110 per square foot, with the higher costs associated with projects that have more than three stories. Ciiy of Tustin Affordability Gap and Leveraged Financing Analysis 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 )ohn 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 1b.3 units per acre. The row townhouse project has hard costs of $$2 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.~Kabel. Therefore, the land costs for these projects would not be comparable to buying unfinished (ots for development in Tustin. 4.3 Land Acquisition Costs Harris Realty Appraisal prepared an Appraisal Re ort 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 examined 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 1 b.6 unitsJacre No. 6 $46 /SF 16.3 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 Tustin Affordability Gap and Leveraged Financing Analysis Page 20 Based on the above interviews and land cost comparables, DRA estimates per unit and per square foot land casts for the various housing product types represented by the housing prototypes. The [and 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 $109,000 $45 Owner #2 Stacked Flat Condominiums $75,000 ~ $43 Clwner #3 High Density Condominiums $52,000 $f,0 Owner #4 Mixed Use Condominiums $90,000 ${,0 Renter #1 Stacked Flat Apartments $70,000 $43 Source: Dataquick Information Systems; City of Tustin; DRA interviews of Tustin area developers. 4.4 Development Impact Fees Development impact fees for new residential development in the City of Tustin include Orange County Sanitation District fees, East 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 Cammunity 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. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 27 7Yble 12 Development Ptnct~irg and lrrpact Fee AsaampfiotM Owner liotuetg Protrrtypes City of 1lstln 2ooe Prototype 44: Prototype tl: Prototype 1l2: Promtype 43: Mixed Use /dtached Stacked Flat High Density Ground Floor T ...L..... ,-..,..1,.. P..nrrne ttPtailll) tVumberof Units v^.,234 Units 325 Units 400 Units 20 Units Oiartge ~rY Sanitatlon District 51,026,018 57,296,025 51,570,300 576,300 East Orsnge County Water Dlstrfct 5717,OOD 5162,500 5200,000 510,000 Tra ~tbn Corridor 5759,554 1 D54 950 St 98 400 S64 920 Subtoul f 1 902 582 f2 513 475 (3,068 700 f 153,220 Design Review f Tettta~tive Map, traff'oc study, preliminary WQMP & ire plartl 514,000 514,000 512,000 f6,600 Final Map 36,000 36,000 56,000 55,280 Public Improverr-ents 518,000 518,000 515,000 56,600 Water Qwttty Management Plan 55,000 SS,o00 32,700 51,782 Precbe Grading Plan s72,000 s7z,ooo siaooo s3,3oo Pbrmk 8,1 n S10 000 10000 7 S3 630 Subrlotd Publk Nbdo Se-vke's 65.000 65 000 533,200 527,192 DevelopntentAgraemtnc So So 50 51,320 Design RevitMr 53,000 53,000 53,000 51,980 1}a~-~,p 53,000 53,000 ;.1,000 (1,980 FinaiTrar2Map S1,335 51,335 51,335 5881 Gordltlonal Use Pkrmit 30 SO 50 57,E Environment Impact Report Fee 51,333 51,333 ~ SO Negalhre ~~~ SO 060 59 SO 060 59 Si25 56,273 SO 5690 ~~ ~~~ p~ Fees Pubtfc hs+proverttenpt Permit fees , ;9Afs0 , 59,060 ;6,273 5690 ~, COnp(uGtlWt ~ 5125,100 5158,750 5192,500 56,336 Building Plernsit Fee 564,859 578,955 5113,969 ;3,398 Plaming Plan Check Fee S9,OSb f71,054 515,956 3476 ButidingPlanCheck S4S,401 555,268 579,778 52,378 Planning Inspection Fee 512,972 515,791 522,794 5680 S23 Building ~~ ~ Strong Motion Irtstrtunentailon Program Fee S35 52.546 S35 53,176 53S 34,532 5182 EEec4'icalPkrtrtltFee 522,415 522,4]5 522,415 514,794 Mtchanlcd Pfd ~ 570,460 515,791 518,550 5655 Mec3-anip] Plan Check Fee 55,230 17,895 59,275 3333 Plumbing Penult Fee 533,336 535,733 545;453 51,730 Plumbing Plan Check Fee 516,668 $17,867 522,726 5865 Orange Coutrty Fire Authority I-xpetxion Fee 533,300 523,530 514.480 51,465 Tustin Unlfled School District Fees -Level 2 52,050,308 52,509,650 53,650,400 5735,186 Quimby Fee 5 2,981,464 S 3,956.882 S 6,795,360 3262,896 Tustin Transpartatton System Improvement 0 S1 787 400 5110 584 m Subtolel 53 43 964 6,936 52 12,815 626 5570197 Total 57,40f 546 314 99S fS,937 6 5730,609 ~ 1Jnit x,31 613 ST! 277 9844 537 30 (7) lnciudes fees associated with residwstial ~pottlon ddevelopmeM only. Fa fees assessed per pro)ect, calculations asstune residential poatton of project is: 6696 of total. Source: Chy of Tustin Cornnunity Development Department Planning Division, Tustin Comrnunlty Redevelopment Agenty, Ciry of Tustin P~1ic WorblEngineetirtg Department, David Paul Rosen de Associates. Gry dTustln loge 22 AffordabQtly Cap and Eaweraged Financing Malysis Table 13 Development Proceetsing and impact Fee Aswmptions Rental Hotsirig Prototype City ofTusdn 2t><!8 Rental Prototype t1: Stacked Flat •..~.~.,,...k NumberaFUnfts --- - 325 UnNs Orange County Sanitation District 61,133,1 54 Fast Orange County Water District ;t 62,500 Trans rtatlon Corrtdor A enc ;613 925 ubtoral S 1,909,579 Design Revlaw (tentative Map, traffic study, preliminary WQMP & site plan} 514,000 Final Map 56,000 Publk: improvements ;18,000 Water Quality ManagerneM Plan $5,000 Pnsclse Grading Plan $12,000 Permit b i on $10,000 Subtotal (PW Services) f6S,000 Development Agreement ~ 60 Design Review $3,000 Tentative Tract Map 60 Final Trail Map 60 Condhlonal Use Permit S0 Environment Impact Report fee $1,333 Negative Declaration 50 Praise Grading Permit Fees ;9,060 Public ]mprovements Permit Fees $9,060 New Construction Fee S158,950 Bultding Pcrrnit Fee ;60,677 Planning Plan Check Fee 58,495 Building Plan Check 541,474 Ptanning Inspection Fee $12,135 Building Issuance Fee 635 Sarong Motion lnstnrmentation Program Fee 52,377 Electrical Permit Fee $22,415 Mechanical Permit Fee $12,188 Mechanical Plan Check Fee $6,094 Plumbing Permit Fee $28,268 Plumbing Ptan Check lee 614;134 Orange County Fire Authority Inspection Fee ~ $18,100 Tustin Unified School District Fees -Level 2 S2,157,454 Quimby Fee 63,956,882 Tustin Trap ortation S tem Im rovement Pro am 60 Subtotal S6 340 729 ~~ SS 15,308 Ave a Per Unit x25,586 Source: , City oFTustin Community Development Department Planning Division, Tustin Community Redevelopment Agenry, City of Tustin Public Works/Engineering Department, David Pau[ Rosen & Associates. Giy of Tustin Afla~dabll'rtq Cap and Leveraged Financing Malysls 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 building 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 improvement costs can also vary widely depending upon the extent of existing infrastructure 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% for 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 Table 14 Per Net Square Foot Hard Construction Cost Assumptions by Prototype City of Tustin zoos Prototype Hard Construction Cost Per Average Site tmprovement Net SF Buildin Area Cost Per Net SF Site Area Owner #1 $95 $25 Attached Townhome Owner #2 $85 $20 Stacked Flat Condominiums Owner #3 $195 $30 High Density Condominiums Owner #4 $155 $20 Mixed Use Condominiums Renter #t $155 $2Q Stacked Flat Apartments Source: DRA interviews 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, property taxes and insurance. General conditions include items such as the trailer, utilities, 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 12% of total development costs, based on DRA 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 the City of Tustin Affordability Gap and Leveraged Financing Analysis page 2S 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 housing, developer profit is typically measured as a percentage of gross sales revenues (typically 7 - ~9 percent), rather than total development cost. However, this measure does 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. 5.0 Operating and Financing Cost Assumptions 5.1 General Operating Costs, Rental Prototype Annual operating costs are estimated at X3,600 per unit for the gap analysis, excluding properly taxes and reserves, based on interviews with local apartment owners and property managers and DRA 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% 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 Mixed Use, Townhome Condominium Condominium Ground Floor Gross Site Area in Acres 13.000 13.000 8.000 0 689 No. of Units 234 325 400 . 20 Parking Spaces 527 732 800 50 Net Square Feet Living Area 303,300 371,250 540,000 30 300 Community Space SF 2,500 2,000 0 , 0 Total Net Square Feet Residential 305,800 373,250 540,000 30,300 Percent Residential Tonal Gross SF Bldg. Area 100% 305,800 100% 373,250 100% 540,000 66% 45,909 Land Acquisition Costs $25,482,600 $24,350,040 $20,908,800 $1,188 000 Site Improvements $14,157,000 $11,325,600 $10,454,400 , $396 000 Building/Parking Hard Costs $29,051,000 $31,726,250 $1 05,300,000 , $4,696 500 Hard Cost Contingency $2,160,400 $2,152,593 , $5,787,720 , $254 625 Arch.lEngJConstr. Supervision $1,296,240 $1,291,SS6 $3,472,632 , $152 775 City Development Impact/Processirig Fees $7,404,546 $9,514,995 $t 5,937,526 , $750 609 Construction Loan Fees $919,647 $928,754 $1,859,558 , $106 483 Construction Interest $6,644,448 $6,710,244 $11,457,346 , $2,516 665 Environmental Phase I $7,500 $7,500 $7,500 , $7 500 Soils Testing $40,OOD $40,000 $40,000 , $20 000 Property Taxes $259,248 $258,311 $694,526 , $30,555 ]nsurance $1,296,240 $1,291,556 $3,472,632 $152 775 Sales Commissions $1,081,937 $1,092,651 $2,187,715 , $125 274 Selling/Closing Costs $5,409,687 $5,463,256 $10,938,576 , $626 371 Developer Overhead $4,327,750 $4,370,605 $8,750,861 , $501 097 Developer Profit $8,655,499 $8,741,209 $17,501,721 , $1,002,194 TOTAL PROJECT COST $108,193,743 $109,265,118 $218,771,513 $12,527,424 PER UNIT $462,366 $336,200 $54b,929 $626,371 PER NET SF $353.81 $292.74 $405.13 $413.45 TOTAL COST, EXCLUDING LAND ~ $82,711,143 $84,915,078 $197,862,7]3 $11,339 424 PER UNIT $353,466 $261,277 $494,657 , $566,971 PER NET SF $270.47 $227.50 $366.41 $374.24 City of Tustin Affordability Gap and Leveraged Financing Analysis Page 27 Table 16 Estimated Prototype Development Costs Rental Housing Prototype: Stacked Flat Apartments City of Tustin 2006 Renter Prototype Stacked Flat Apartments Acres Number of Units Parking Spaces Net Square Feet Living Area Total Net Square Feet Ratio NeVGross SF Total Gross Square Feet Building Area Land Acquisition Site Improvements -~..- ..- Building/Parking Hard Casts Hard Cast Contingency Archictecture/Engineering/Constr. Supervision Development Impart and Processing Fees ALTA Survey Environmental Phase I Soils Testing Construction Loan Fees ConstruciioNlease-Up Interest Property }nsurance Property Taxes During Construction Construction Loan Title and Closing Appraisal Fees Legal Market Study/Consulting Marketi ng/Lease-Up/Start-Up Developer Overhead Developer Profit 13.000 325 731 319,150 319,150 100°l6 319,150 $24,350,Q40 511,325,600 $49,468,250 $3,039,693 $4,255,570 $8,315,308 $3,000 $7,500 $10,000 $456,065 $3,095,367 $607,939 $364,763 $15,000 $10,000 $30,000 $25,000 $100,000 $4,794,504 $9,589,008 Total Project Costs Total Cost Per Unit Total Cost Per Net Square Fact TOTAL COSTS, WITHOUT LAND TOTAL COST PER UMT TOTAL COST PER SQUARE FOOT Source: David Pau! Rosen & Associates $119x862,606 $368,808 $375.57 $95x512,566 $293,885 $299.27 City of Tustin Affordability Gap and Leveraged FinancingAnalysls Page 28 S.2 Financing Costs Financing costs vary according to 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 balance 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 iscurrently 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 laan interest rate for the renta[ 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 b0%. 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 ggap is the difference between development costs and the supportable mortgage plus tthe buyer's down payment, ~~ry or i usnn - Affordability Gap and Leveraged Financing Analysis Page 29 Ta6k 17 Devebpment and Financing CostAasurupUons Owner Housing 1'rotolypes dty of Tustin 2008 Owner 1 Attached Townhome Owner 2 Stacked Flat Condornmitrm Owner 3 High Density Condominium Owner 4 Mixed Use, Ground Floor Reta(E Land Acgtrisitton Cost land Cost Per Gross SF Site Area S45.OD 543.00 S60.D0 560.00 Land Cost Pier Unit ;1 D9,000 ;75,000 552,000 ;90,000 Devdoprnent Cat Asttotrq~om Site impravensen# Coats per Net Sf S2S.00 520.00 ;30A0 ;20.00 Site improvement Costs per Unit ;61,000 535,000 526,000 ;20,000 Unit Hard Constnution per SF 595.00 S85.OD ;195.00 ;155.00 Hard Cost Contingenry (1) 5% 5% 596 5'16 • ArchitecturaVEngineering(1) 3% 3% 3% 3% • propertyTazes During Constrution (1) 0.6Q% 0.60% ~ 0.6096 D.60% Insurance DurirrgConstrtsction (1) 3.00% 3.0096 3.00% 3.0096 SellinglClaing Cats (%T13C) 5.00% 5.00% 5.00% 5.00% Sales Commissions (%TDC) 1.00% 1.00% 1.00% 1.00% Developer OverFsead/Generai Conditions (%TDC) 4.00% 4.009'0 4.00% 4.00% Developer profit (96 TDC) 8.00% 8.00% 8.00°k 8,00% Consh~oction Loan Construction loan % of TDC 85.00% 85.00% 85.00% 85.00% Construction LoanAmL 591,9W,681 592,875,351 5785,955,786 510,648,310 Interest Rabe 8.50% 8.5096 8.50% 8.5096 Loan Fees 1.00% 1.00% 1.00% 1.00% Average Laan Balance-Constriction 60.00% 60.00% 60.OQ% 60.00% Constructlon Period 12 Months 12 Months 12 Months 12 Months Sale Peeiod 3 Months 3 Months 3 Months 3 Months Toml Construction Loan Term 15 Months 15 Months 15 Months 15 Months Corotnx:doa Loan lnoerest-Constnsdion 54,690,199 54,736,643 59,483,745 SS43,064 Constrction Loan inmrest-Sak Pbriod 51,954,249 S],973,601 S1,973,601 S1,973,601 Total Construction Loan Interat 56,644,448 56,710,244 511,457,346 52,516,665 Constn~ction Loan Poinls 5919,647 5928,754 51,859,558 5106,483 Note: TDC .Total Development Casts (1) /1s a percentage of directcoses (site improvemerrts and and building shell hard costs). Source; David Paul Rosen & Associates. Ciy of Tustin Affordability Gap and Levera8ed FlnancingAnalysis F'ase 3D Table 18 Development and Financirrg Cost Assumptioru Rental Prototype: Slacked h1at Apartments City of Tustin 2008 Renter Prototype _ Stacked Flat Apartntenb Land/8uilding Acquisition Cost Land Cost Per Gross SF Site Area 643.00 LandJBufiding Cost Per UnR $70,000 tkvelopmenf Cost Assurtrpticm Site lmpravement Costs per SF Sits Area X0,00 Site lmprovrment Costs per Unit 535,000 .Hard Construdion Costs per Net Bldg. SF $i 55.00 Hard Cost Contingency (1) 5.00% An:hitedural/fngineering (1) 7.0096 Property Taxes During Construction (1) 0.60% Insurance During Consbvdion {t) ~ ,Opyf, Marketing/I.easing/Sbrt Up Per Unit =1,000 Developer Overhead (% TDGy 4.0096 Devebper Profit (96 TDC) B,OOgr, Construdion Loan Construdion Loan Aa a % of TDC 75.009'0 Construdion Loan Amount 589,896,955 interest Rate 8.50% Loan Fees {2) $898,970 Average Loan Balance (Cor>StrAease~Up) 60.009b ConstrudionPeriod t2 Months Lease-Up Period 3 Months Total Coratrvdlon Loan Term 15 Months Construction Loan Interest $5,730,931 Permanent Loan Debt Coverage Ratio 1.25 Mortgage Tenn 30 y~ Interest Rate 8.00% ft) As a percentage of direct oosls tslta Improvements, paridng structure and buikling sha0 hard casts) (2) At t.07G of canstrudion ban mount Source: David Paul Rosen & Associates t"ky of 7bsUn Agordab)Iity Gap and Leveraged Rnancing Analysis Pa a 31 8 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 assuming various forms of non-[ocaI 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 bonds, 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 nat 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 Catcula#ions In calculating eligible basis for the purposes of determining Federal tax credits, we have used 2407 non-elevator threshold basis limits for Orange County. We also used the 130% ~ Since Orange County was a designated Difficult to Develop Area (D DA) 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 Develop 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. Tablet 9 Income Targeting Assumptions for Leveraged Financing Scenarios City of Tustin Income Targeting Assumptions Average Affordability Leveraged Financing (% of Units at ~° Area ~ Based on Income Targeting Source/Scenario Median )ncome) (% Area Median Income) 9% Low Income Housing Tax 10% of units t~ 30% AMI 47% AMf Credits 15% of units ®45%AMI 75% of units ~ 50% AMi 4% Low Income Housing Tax 30% of units ~ 50% AM! 57%AMI Credits, Tax-Exempt Bonds 70% of units ~ 60%AMI 4% Low Income Housing Tax 30% of units ~ 30% AM[ 51 %AMI Credits, Tax-Exempt Bonds, 70% of units ~ 60% AMl and MHP Source: David 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 California Health and Safety Code occupancy standard of one person per bedroom plus one applies. This City 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, annual operating costs are estimated at $3,600 per unit and annual 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 total 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 IocaI housing resources. In addition, for the 9% 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 $30 million per project. 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 Profotype: Stacked Flat Apartments City of Tustin 2008 FUNDING SCENARIO 9% Tax Credits 496 Tax Credits 4% Tax Credits, Tax Exempt Bonds Bonds, MHP Number of Units 325 325 325 Acres 13.00 13.00 13.00 Units/Acre 25.00 25.00 25.00 SOURCES OF FUNDS CONSTRUCTION Tax Credit Equity $1,601,192 $813,772 $951,186 Construction Loan $93,857,236 $59;393,300 ,$67,161,024 MHP (1) $0 $0 $22,609,147 Affordable Housing Program (AHP) (1) $1,625,000 $1,625,000 $1,625,000 Temporary Gap Financing Required (2; $17,317,865 $48,263,749 $31,205,104 TOTAL SOURCES $114,401,293 $110,095,822 $123,551,461 PERMANENT Federal Tax Credit Equity $80,059,618 $40,688,609 $47,559,315 State Tax Credit Equity $p $0 $0 MHP (1} $0 $0 $22,b09,147 Affordable Housing Program (AHP) (1) $1,625,000 $1,b25,000 $1,625,000 Permanent Financing $14,207,327 $22,245,144 $1b,145,037 Gap Financing Required $18,509,348 $45,537,069 $35,b12,962 TOTAL SOURCES $114,401,293 $110,095,822 $123,551,461 Permanent Gap Financing/Unit $56,952 $140,114 $109,578 USES OF FUNDS CONSTRUCTION AND SOFT COSTS $114,401,293 $110,095,822 $123,551,461 TOTAL COST/UNIT $352,004 $338,75b $380,158 (1) Estimated at $5,000 per unit. (2) Equals temporary gap financing required after 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 Analysis- Page 35 rabk A-t PER UNIT PROTOTYPE DEVELOPMENT COSTS BY BEDROOM COUNT OWNER PROTOTYPE It1 CITY OfTUSTIN PretniwelJeacriotion: AttachedToxmhome 7YPEANDSIZECrFUNIT Tot'! Number of Unifss 234 Units 2 Bedroom 3 Bedroom 4 Bedroom 1,050 Net S.F 1,300 Net S.F. 1,700 Net S.F. 1 059 Tota15.F. (1 1 311 'iota! S.f: (1) 1 714 Total S.F. (1) Hard Consbvc6on Co sb _ SPoe Improvements $60,500 /DU $60,500 $60,500 $60,500 Unit/Parking Constr. Costs 5102.06 /Gr. S.f. $108,051 5133,778 5174,940 Total Hard Costs 5168,SS1 5194,278 $235,440 Develop+nent Impact and Processing Fees $31,643 /Unit $31,643 531,643 $31,b43 Indirect/Sotit Coats $72,457 /DU $72,457 572,457 572,457 Tota! Coats (Except Land and Overhead/ProfEfl $272,652 $298,378 $339,541 Land Cosh $108,900 /DU $108,900 $108,900 $108,900 Dex Fee/Profit & Overhead 12°Yo 552,030 $55,538 561,15] 7ota1 Project Cosh Prr Dwelling Unit 5433,582 $462,816 5509,592 {t) Assumes efficiency ratio (net/gross SF) of: 101% Source: David Paul Rosen & Assoctatrs. City pf Tuttin Affordab111ty Gap and Leveraged Rrwndng hnalysis Page A-1 Ta6k b2 PER UNiT PROTOTYPE DEVELOPMENT COSTS SY BEDROOM COUNT OWNER PROTOTYPE 112 CITY OF TUSTIN Stacked Flat TYPE AND SIZE Prnfalvee Oescrinliesr Condominban OF UNIT Iola! Number of U~Ix 325 Units 1 B room 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.F. t11 1 OS6Total S.F. 1 1 206Tota15.F. (t 1 508Tota) S.F. 1 Hard Construction Cosh S[te lmprovemerm $34,848 /DU 534,848 534,648 534,848 534,848 UniUParking Constr. Costs 590.771Ct. S,F 586,693 X95,819 51D9,507 5136,884 Total Hard Costs 5121,541 5130,667 5144,355 5771,732 Developrsent Impact and Proauing fees 529,277 /Unit 529,277 529,277 129,277 529,277 Ind'irect/5oR Costs 552,566 /DU 552,566 552,566 552.566_ 552,566 Tafal Cosh (Except Land and Overhead/ProfiO 5203,384 5212,509 S226,198 5253,575 Land CasU 574,923 /DU 574,923 S74,923 574,923 574,923 Dev. FoelProfil Ec Overhead 1296 537,951 539,195 541,062 544,793 Total Protect Costa Per DwelBng UrJt 5316.258 3326,628 5342,183 5373,293 (1) Assumes etfkiency ratio (net/gross SF1 of 10196 Soun:e: David Paul Rosen & Associates. Gry ofTustin Affordabfllry Gip and leveraged Flnsnting Amfysis Page A-2 Table A.3 PER UNIT PROTOTYPE DEVELOPMENT COSTS BY BEDROOM COUM OWNER PROTOTYPE t!3 CITY OF TUSTI N lilgh Density o...~.a.,... nrwrfnNnn. rnnrtrrninn~n TYPE AND S¢E OF UNIT -"_r r- --° r--°• Total Number of Unkr. 400 Unit 1 Bedroom 2 Bedroom 3 B 4 Bedroom f,000 Net S.F. 1,150 Net S.F. 1,650 Nct S.F. 1,800 Na S.F. 1 OOOi'otal S.F. 7l 1,150Total S.f. 1) 1,650Totai S.F. (1 1 BOOToW S.R (1 Hud Construetion Costs Site lmprovernerns ;26,136 /DU 326,136 526,136 526,136 526,136 UnitlParking Constr. Cods $205.72 /Gr. S.F. 5205,718 5236,576 5339,435 ;370,292 Total Hard Coeb 5231,854 5262,712 ;365,571 5396,428 Development Impact and Proceain6Feea 539,844/Unit 539,844 539,844 (39,844 539,844 lridireetlSoR Cosh 585,326 /DU "' 585.326 585,326 ;65,326 585,326 Total Costs (Etccept Laod and Overhad/Ptofit) 5357,024 5387,882 5490,741 6521,398 Land Costs 552,272 /DU 552,271 552,272 552,272 552,272 Dev. FeeRroflt & Overhead 1296 555,813 560,021 574,047 S78,255 Total Project Costs Per Dwellin6 Unit 5465,109 5500,175 Sti17,060 5652,125 (1) Assia»es efficiency ratio (neNgross SF7 ot: i ~6 Soune: David Paul Rosen & Associates. City otTuyttn Alrordabfllry Cap ind Leverrged Fln~ncing Mnll~sis Pace M3 Table A-4 PER UNIT PROTOTYPE DEVEIOPMEIYT COSTS BY BEDROOM COUNT OWNER PR07nTYPE +R4 qTY OF TUSTIiV Mixed Use, Gramd Profetve~ Dcscrietien: Floor ttetai) TYPE AND 512E OF UNIT Total Numtxr of Units: 20 Urrts 1 Bedroom 2 Bedroom 3 Bedroom 1,100 NetS.F 1,400 Net S.f 1,750 Net S.F. 1 1007ota15.F. 1 1400 Total S.F. (1) 1,750Tota1 S.F. (1) Hard Corafivctiorr Cacti Sitelrriprovernenb 519,800/Dtl 519,800 S79,800 S79,800 UnidParking Corutr: Costs 5163.40 /Gr. S.F. 5179,744 5228,765 5285,956 ToW Hard Coeb 5199,544 5248,565 5305,756 Development Impact and ProcepirajFees 537,530/Unit 537,530 537,530 537,530 I~rect/SoR Cocb 5186,920 /DU 5186,920 5186,920 S7 86,920 Total Cock (Except Land and Orerlread/Profiq ~ $423,994 5473,015 5530,206 I.andCosts 559,400 /DU 559,400 559,400 559,400 Dew FaelProfit & Over~sead 12% 565,917 S72,602 580,401 Total Project Costs Per DurcOing unit 5549,12 5605,017 5670,007 (1) Assumes efficienry ratio (net/gross SF) af: 10096 Source: David Paul Rosen & Associates. Ctry dTustin ANordablliry Gap and Leveraged Fnandng Analysis ~8e ~-'~ Table A-5 Homeowner Subsidy Requirements Owner 1 Attached Townhame Two Bedroom City of Tustin 50% of 70°~ of 110°~ of Median Median Median Income Level (1) $35,415 $49,581 $77,913 Affordable Monthly Housing Cost (2) $885 $1,240 $2,272 Less: Monthly Utility Allowance (3) $1'10 $110 $110 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 $50 $50 Available for Principal, Interest, Taxes $550 $905 ~ $1,937 Less: Property Taxes (4) ~ $79 $13U - $278 Supportable Mortgage Before Prop. Taxes (S) $75,007 $123,272 $264,044 Assumed Assessed Value at Sale $78,955 $129,760 $277,941 Available for Mortg. Principal and Interest $471 $775 $1,660 Supportable Mortgage (5) $64,247 $105,588 $226,165 Affordable Purchase Price (6) $b7,628 $111,145 $238,069 Buyer Downpayment $3,381 $5,557 $11,903 Required Capital Subsidy (7) $365,953 $322,437 $195,513 (1) Income limit for a family of 3. (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, 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: $433,582 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-1 Table A-6 Homeowner Subsidy Requirements Owner 1 Attached Townhome 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, lnterest,Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available far 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 $39,350 $55,090 $86,570 $984 $1,377 $2,525 $148 $148 $148 $175 $175 $175 $50 $50 $50 $611 ~ .$1.,004 ... .... $2,152 $88 $144 $309 $83,235 $136,863 $293,276 $87,616 $144,066 $308,712 $523 $860 $1,843 $71,295 $117,229 $251,204 $75,047 $123,399 $264,425 $3,752 $6,170 $13,221 $387,769 $339,417 $198,391 (i) 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 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) Sased 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: $462,816 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & 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 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) SO% of 70% of 110% 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 $91,780 $149,698 $318,625 $96,611 $157,577 $335,394 $577 $941 $2,003 $78,614 $128,223 $272,916 $82,751 $134,971 $287,280 $4,138 $6,749 $14,364 $426,840 $374,620 $222,312 (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. (4) Based on 1.209° 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. Ciry of Tustin Affordability Gap and Leveraged Financing Analysis PageA-3 Table A-8 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium One 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 70°~6 of Median Median $3 i ,480 $44,072 $787 $1,102 $93 $175 $50 $469 $67 $63,917 $67,281 $402 $54,748 $57,629 $2,881 $258,629 $93 $175 $50 $784 $112 $106,879 $112,441 $671 $91,495 $96,311 $4,816 $219,947 110% of Median $69,256 $2,020 $93 $175 $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 2. (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% 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: $316,258 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of7Lstin Affordability Gap and Leveraged Financing Analysis Page A-1 Table A-9 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium Two Bedroom C'~ty of Tustin 50°k of 70% of 110% of Median Median Median Income Level (1) $35,415 $49,581 $77,913 Affordable Monthly Housing Cost (2) $885 $1,240 $2,272 Less: Monthly Utility Allowance (3) $110 $110 $110 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 $50 $50 Available for Principal, Interest, Taxes $550 $905 $1,937 Less: Property Taxes (4} $79 $130 $278 Supportable Mortgage Before Prop. Taxes (5) $75,007 $123;272 $264,044 Assumed Assessed Value at Sale $78,955 $129,760 $277,941 Available for Mortg. Principal and Interest $471 $775 $1,660 Supportable Mortgage (5) $64,247 $105,588 $226,165 Affordable Purchase Price (6) $67,628 $111,145 $238,069 Buyer Downpayment $3,381 $5,557 $11,903 Required Capital Subsidy !~ $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% 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: $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 Requiremen#s Owner 2 Stacked Flat 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 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 (b) Buyer Downpayment Required Capital Subsidy (7} 50°~ of Median 70% of Median $39,350 $55,090 $984 $1,377 $148 $148 110% Of Median $86,570 $2,525 $148 $175 $175 $175 $50 $50 $SO $61.1 $1,004 $2,152 $88 $144 $309 $83,235 $136,863 $293,276 $87,616 $144,066 $308,712 $523 $860 $1,843 $71,295 $117,229 $251,204 $75,047 $123,399 $264,425 $3,752 $6,170 $13,221 $267,136 $218,784 $77,758 (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 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. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-3 Table A-11 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium four Bedroom City of Tustin 50°~6 of 70°k 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) $164 $164 $164 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 $50 $50 Available for Principal, lrrterest, Taxes $673 $1,098 $2,338 Less: Property Taxes (4) $97 $158 $335 Supportable Mortgage Before Prop. Taxes (5) $91,780 $149,698 $318,625 Assumed Assessed Value at Sale $96,611 $157,577 $335,394 Available for Mortg. Principal and Interest $577 $941 $2,003 Supportable Mortgage (5) ,$78,614 $128,223 $272,916 Affordable Purchase Price (6) $82,751 $134,971 $287,280 Buyer Downpayment $4,138 $6,749 $14,364 Required Capital Subsidy (7) $290,542 $238,322 $8b,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% of purchase price; (7) Total development costs of: $373,293 . less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-4 Table A-12 Homeower Subsidy Requirements Owner 3 High Density Condominium One 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 70% of 110% of Median Median Median $31,480 $44,072 $69,256 $787 $1,102 $2,020 $93 $93 $93 $175 $175 $175 $50 $50 $50 $469 $784 $1,702 $67 $112 $244 $63,917 $106,819 $231,950 $67,281 $112,441 $244,158 $402 $671 $1,458 $54,748 $91,495 $198,675 $57,629 $96,311 $209,132 $2,881 $4,816 $10,457 $407,480 $368,798 $255,977 (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 current utility allowances from County of Or4nge 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: $465,109 Less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and leveraged Financing Analysis Page A-1 Table A-13 Homeowner Subsidy Requirements Chvner 3 High Density Condominium 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 (S) 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 $35,415 $49,581 $77,913 $885 $1,240 $2,272 $110 $110 $110 $175 $i 75 $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 $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) 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: $500,175 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City ofTusBn Affordability Gap and Leveraged financing Analysis Page A-2 Table A-14 Homeowner Subsidy Requirements Owner 3 High Density Condominium Three Bedroom City of Tustin 50°~6 of 7096 of 110% of Median Median Median Income Level (1) $39,350 $55,090 $86,570 Affordable Monthly Housing Cost (2) $984 $1,377 $2,525 Less: Monthly Utility Allowance (3) $148 $148 $148 Less: HorneownerAssociation Dues $175 $175 $175 Less: Property Insurance $50 $50 $50 Available for Principal, Interest, Taxes $611 $1,004 $2,152 .Less: Property Taxes (4) $88 $144 $309 Supportable Mortgage Before Prop. Taxes {5) $83,235 $136,863 $293,276 Assumed Assessed Value at Sale $87,6] 6 $144,066 $308,712 Available for Mortg. Principal and Interest $523 $860 $1,843 Supportable Mortgage (5) $71,295 $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) $542,013 $493,661 $352,635 (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 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: $617,060 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis PageA-3 Table A-15 Homeowner Subsidy Requirements Owner 3 High Density Condominium Four Bedroom City of Tustin Income Level (~ ) 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 Median 70% of Median $42,498 $59,497 110% of Median $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 $91,780 $149,698 $318,625 $96,611 $157,577 $335,394 $577 $941 $2,003 $78,614 $128,223 $272,916 $82,751 $134,971 $287,280 $4,138 $6,749 $14,364 $569,374 $57 7,154 $364,845 (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, coof<ing, 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: $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 of Tustin 50% of 7o°I° of 110% of Median Median Median Income Level {1) $31,480 $44,072 $b9,256 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: Property Insurance $50 $50 $50 Available for Principal, interest, 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 $b7,281 $112,441 $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) $57,624 $96,311 $209,132 Buyer Downpayment $2;881 $4,816 $10,457 Required Capital Subsidy (7) $49'1,683 $453,001 $340,180 (1) Income limit for a family of 2. (2) At 30% of gross income for tow 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. City of Tustin Affordability Gap and Leveraged Financing Analysis Page A-1 Table A-17 Homeowner Subsidy Requirements Owner 4 Mixed Use, Ground Floor 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: Properly 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 p) 50°r6 of 70°k of 110% of Median Median Median $35,415 $49,581 $77,913 $885 $1,240 $2,272 $110 $110 $1l0 $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 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% of purchase price; (7) Total development costs of: $605,017 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-18 Homeowner Subsidy Requirements Owner 3 Mixed Use, Ground Floor Retail Three Bedroom City of Tustin 50°~ of 70% of 110% of Median Median Median Income Level (1) $39,350. $55,090 $86,570 Affordable Monthly Housing Cost (2) $984 $1,377 $2,525 Less: Monthly Utility Allowance (3) $148 $148 $148 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 $50 $50 Available for Principal, Interest; Taxes $611 $1,004 $2,152 Less: Property Taxes (4) $88 $144 - $309 Supportable Mortgage Before Prop. Taxes (5) $83,235 $136,863 $293,276 Assumed Assessed Value at Sale $87,61 b $144,066 $308,712 Available for Mortg. Principal and Interest $523 $860 $1,843 Supportable Mortgage (5) $71,295 $117,229 $251,204 Affordable Purchase Price (6) $75,047 $]23,399 $264,425 Buyer Downpayment $3,752 $6,170 $13,221 Required Capital Subsidy (7) $594,960 $b46,608 $405,582 (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 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: $670,007 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. City of Tu sti n Affordability Gap and leveraged Financing Analysis Page A-3 Ta61e H-1 Per Unit Devdopa>ant tab sy Unit sedroom tourrt Rents) Housing Prototype Stadad FMt Apardnenb ~h ~~ 2008 Prototype Oesaiption: Sbdoed FlatApartntasb TY PEANU SIZE OF UN IT Total Nratber of Unite 325 Unib 1 B 750 Net S.F. 2 Bedroom 950 Net S.F. 3 Bedroom 1,050 hkt S.F. 4 Bedroom 1 250 Net S.F Hard Comtruttioo Cods Site lmprovarr-enb 534,8A8 /DU Unit/P2rking Canso Casts 5155.00 Per SF Totei Nerd Cosh 534.848 5716,250 5151,098 534,848 5147,250 5182,098 S3+t 848 31 G2,750 5197,598 534.848 5193,750 5228,598 Derebpmeat Prooaau:s and Impad Ftea . City Processing Fees (26.05/ Net S.F. 319,541 324,752 527,357 532,568 {ndirect/SokCoals (36,984 S36,984 535,984 536,984 536,984 Cost (Except Caad, Orerlread, ProtiU 5207,623 (243,834 52b1,940 3298,150 tend Cosh 574,923 /QU 574,923 574,923 574,923 574,923 pev FeelProEit & Overhead 124E 538,529 343,4b7 545,936 550,874 Total project Carta par Unit (321,075 3362,224 5382,799 5423,947 Source: oavki Paul Rosen 6 Associates Cry d1haH~ ARpda6ilhy Cap o~J I.ovwged Fi~ndn`Malrsb P,~ B-1 Table B-2 Tenant Subsidy Requirements Renter Prototype Stacked Flat Apartments One Bedroom City of Tustin 2008 Income Level (]) Affordable Monthly Housing Cost (2) Less: Monthly Utilities (3) Affordable Monthly Rent Less: Monthly Operating Cost (4) Less: Manthly Property Taxes (5} Less: Vacancy Allowance (6) Tenant Monthly Net Operating Income Tenant Supported Debt (7) Total Development Cost Per Unit Required Capital Subsidy (8) 509'° of 60% of 11096 of Median Median Median $31,480 $37,776 $b9,256 $787 $944 $1,731 - $54 $54 $54 $733 $890 $1,677 $300 $300 - $300 $32I $321 $321 $22 $27 $50 $90 $243 $1,006 $9,805 $26,451 $109,681 $321,075 $321,075 $321,075 $311,270 $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 1.2% applied to total development cost. (6) Assumed at 3°k of affordable monthly rent. (7) Based on 30-year mortgage at : 8.00°Io 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 of Tustin Affordability Gap and Leveraged Financing Analysis Page B-1 Table B-3 Tenant Subsidy Requirement9 Renter Prototype Stacked Flat Apartments Two Bedroom City of7ustin 2008 Income Level {1) Affordable Monthly Housing Cost (2) Less: Monthly Utilities {3) Affordable Monthly Rent Less: Monthly Operating Cost (4) Less: Monthly Property Taxes {5) Less: Vacancy Allowance (6) Tenant Monthly Net Operating Income Tenant Supported Debt (7) Total Development Cost Per Unit Required Capital Subsidy {8) 50% of 60°6 of t 10°,6 of Median Median Median $35,415 $42,498 $77,913 $885 $1,062 $1,948 $68 $68 $68 $817 $994 $1,880 $300 $300 $300 $362 $362 $362 $25 $30 $56 $131 $302 $1,161 $14,242 $32,969 $126,603 $362,224 $362,224 $362,224 $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% of gross income spent an 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) Sased on estimated monthly operating costs per unit of $300 (5) Sased on annual property tax rate of 1.2% applied to 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 ~ cover operating deficits. (8) Equivalent to total development cost less tenant supported debt. Source: David Paul Rosen & Associates. Gty ofTustin Affordability Gap and Leveraged Financing Analysis Page B-2 Table B-4 Tenant Subsidy Requirements Renter Prototype Stacked Flat Apartments Three Bedroom City of Tustin 2008 50% OF 6096 of Median Median Income Level (1) $39,350 $47,220 Affordable Monthly Housing Cost (2) $984 $1,181 Less: Monthly Utilities {3) $98 $98 Affordable Monthly Rent $886 $1,083 Less: Monthly Operating Cost (4) $300 $300 Less: Monthly Property Taxes (5) $383 $383 Less: Vacanry Allowance (6) $27 $32 Tenant Monthly Net Operating Income $559 $750 Tenant Supported Debt (7) $60,965 $81,773 Total Development Cost Per Unit $382,799 $382,799 Required Capital Subsidy (8) $321,834 $301,026 11096 of $86,570 $2,164 $98 $2,066 $300 $383 $62 $1,704 $185,810 $382,799 $196,489 (1) For a household size of 4 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 race of 1.2% applied to total development cost {6) Assumed at 3% of affordable monthly rent. (7) 8asedon 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 of Tustin Affordability Gap and Leveraged Financing Analysis Page B-3 Table B-5 Tenant Subsidy Requirements Renter Prototype Stacked Flat Apartments Four Bedroom City of Tustin 2008 Income Level (1) Affordable Monthly Housing Cost (2} Less: Monthly Utilities (3) Affordable Monthly Rent Less: Monthly Operating Cost (4) Less: Monthly Property Taxes (5) Less: Vacancy Allowance (6) Tenant Monthly Net Operating Income Tenant Supported Debt (7} Total Development Cost per Unit Required Capital Subsidy (8} 50% of 6096 of 110% of Median Median Median $42,498 $50,998 $93,496 $1,062 $1,275 $2,337 $109 $109 $109 $953 $1,166 $2,228 $300 '$300 $300 $424 $424 $424 $29 $35 $67 $201 $407 $2,285 $21,903 $44,376 $249,179 $423,947 $423,947 $423,947 $402,044 $379,571 $174,768 (1) fror a household size of 5 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 1.2% applied to 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 tots( development cost less tenant supported debt. Source: David Paul Rasen & Associates. City of Tustin Affordability Gap and Leveraged Fnancing Analysis Page B-4 Table C-1 Lf:VERAGED FINANCING ANALYSIS RENTAL PROTOTYPE: 5T/1CKED FLAT APARTMi:NTS DEVELOPMENT PROGRAM CITY OFTU5TIN 2008 Type 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Tota! Affordable Units 2 BR Manager's Unit Total Housing Units Community Room Total Net SF BuiidingArea Parking/Circulatton Open Spaces Parking Structure Tots! Spaces it Units % Units Sq. Ft/Unit 73 Z3% 750 100 31% 950 100 3196 1,050 50 1596 1,250 323 100°6 2 325 Spaces 81 650 73 i Units Total SF Per Acre Acres 54, 750 95,000 105,000 62,500 317,250 25.00 13.00 1,900 319,150 0 379,150 Cty ofTusSn A}Cordablllty Gap and Leveraged Financing Analysis Page G1 Table C-2 RENTAL fROTO7YPE: STACKED FLATAPAATMEfVTS (NCOAIE AND OrERATBVC COPTS WITH 9%TAx CREDITS, FEDELIL ANO STATi! assuMrnoNs 2007 Median Household lnoome, Famiyof four Affordable HousfnR CotlAt a %of income Na of Bedrooms ~ Toe} Houxhdd Sias (1) Houxhald Stu (noon. Ad~utt. factor Ueliry Allowance R) No, of Units 723 Total Hedroons 773 AFFORi>rt01E RENTS BY INCOME LEVEL Annul Cron Income Affordable Mondsly Houtlnl(Cost Leda: MondllyUtllityABoaArws Affordable Mondry Rent Annual Groat Itcorne Affordable Monthly Hooting Coal I.esa: Mortlty UdIRyAltowence Afbrtkbk MomhlY Rent Sq~d Mediae Are-wi Groh insane Affordable Momhly Houdreq Cost Less: MonO+yUtllitYAilowance Affordable Monthly Rent NET OrERAl7NG lNCOME Aflordabiliry LweUNO. dBedrooms 1as% unit ~9f. of Mediae l s.2% of uda SM4 d Median 74,6% d UNg s7a7oo 30% 1 Bedroom 2 Bedroom 3 Bedroom 1 Bedroom 1.5 Penoro 3.0 Persons 4.0 Persorn 5.0 Pt+conc 159E 90% 100% 108% 354 $68 S98 5109 73 100 100 SO 73 200 300 200 517,7 321,249 523,610 S25/t99 5443 5591 5590 5637 (554) (56~ 1i98) (5109) 1389 S<63 6492 Ss20 526,561 531,874 535,415 538,240 5664 5797 5885 S9S6 fS54) (S68) 1598) (5109) 5610 5729 5787 5847 529,513 535,415 539,350 5738 f885 5984 f354) (S68) (598) 5684 5017 5886 Monthly Units Rent Groec Income I Bedroom 8 6389 53.112 ,o s463 s4,63o 3 Bedroom 70 5492 54.920 4 Hedmom S 5528 S2,b40 1 Bedroom tl 5610 56,710 2 Bedroom 15 5729 f10,935 3 Bedroom 15 5787 511,1105 4 Bedroom 8 5847 56,776 t Bedroom 5< 3684 536,936 2 BedrOam 75 5817 Sb1,275 3 Bedroom 75 5886 566,450 4 BedrvWn 37 5953 535,261 3251 4S0 Took 323 Manager's Unhc 2 CRASS RENTAL INCOME Less: Vacanclet (31 •5A% Miscd. Income 5100 Par Unit GROSS ANNUAL INCOME LE55: OPHtATING FXPE145E5 S300/unlthrw. 33, 30'06 P f ~'t ~m Lan: Operating Resws Lest: Replaomnent Rererves 5400 Per Unit1YYer NETOPERAT(NG INCOME (1) Assumes Ste lessor d 7CAC occupancy ctandud (1.5 parsoro par bedroom) and Califomla Health snd Safely occupanty sundard (one parson qr bedroom plus one). 11) 5ourek County of Orange Housing and Community Servlcec, effective Omober 1.2006. Assumes tenant pays all eletyric heedryl, eookfig, and water hadnq and back ekeelehy; landlord pays wader and trash. (3) TCAC requies a STi m(nimum vatenty rata odes vvaived based on vaancY data in the market area. 542,490 57,062 (5109) 3953 53,017,400 (S1S0,870) 531,300 f2,89B,830 (Si,170,000) (S3S,100) (S130,000) sls(r7,73o Cuy dTUen Pant C-2 4r(ordo~rliq~ Gap end l~er+eed Finr+diq Malyda Table G3 RENTAL PROTOTYPES STACKED FLAT APARTMENTS DEVELOPMENT C05TS 9% TAX CREDITS, FEDERAL AND STATE Acres 13.00 No. of Units 325 Total Net LlvtngArea (SF) 319,150 Cornmtmity Room 0 Total Net Square Feet, Residential Units 319,1 SO Other BuiidingArea 0 Total Net Square Feet 319,150 Total Gross Square Feet 566,280 % Residential Basis Ellg'tbk 100.00% Tax Credit Eiig. Basis Total (10096 Resida LAND ACQUISl1K1N 543 Per Site SF $24,350,040 SO SITE WORK S20 Per Site SF 511,325,600 511,325,b00 UNIT CONSTRUCTION BARD CASTS 51 SS Pt:r SF 59,468,250 ;49,468,250 CONTINGENCY 5.00'!. of Hard Costs 53,039,693 53,039,693 ARCHJENGJCONSTR SUPfRV1510N 7.0096 of Hard Cods 55,960,072 55,960,072 LOCAL IMPACT AND PRCICESSING FEES 526.05 Per SF 58,315,308 58,315,308 ALU SURVEY 53,000 53,000 ENVIRONMENTAL'PHASE I 57,500 ~ 57,500 SCNLS TESTING 510,000 (10,000 CONSTRUCTION LOAN FEES 1.00% 5938,572 5938,572 CONSTRUCTION/LEASE-UPINTEREST 8.50% 15 Months 56,781,185 56,781,185 REAL ESTATETAXES AND INSURANCE 1.60% of hard Costs 51,362,302 51,362,302 TITLE AND CLOSING 515,000 515,000 APPRAISAL FEES E10,000 510,000 REAL ESTATE LEGAL 530,000 512,000 ORGANIZATIONAL LEGAL 530,000 s0 MARKET STUDY 525,000 SZS,D00 P057{ONSTRUCTION AUDIT 515,000 SO MARKETINCJLEASE-UPSTART UP ~ 5100,E SO OPERATING RESERVE 3 Morrths Ober 5292,500 SO TOTAL DEVELOPMENT COST 5112,079,022 567,273,482 DEVELOPER FEECi) ~ 15.0096 ofTDC 51,940,000 S7,200,000 TAX CREDIT CONSULTANT 530,000 50 TAX CREDITAPPLICATION FEE 52,000 SO TUC ALLOCATION FEE 4.0096 of Mn. Credit 5320,270 SO SYNDIUTiON LEGAL. ;30,000 SO TOTAL PROjECf COST $114,401,293 ;68,473,4$2 PER UNIT $352,004 5272,226 PER SF 5358.46 (1) As of 2006, the maximum developer fee permitted by TCAC is the lesser of 15% of development costs or S2 million. The maximum amount that can be included in eiiglble basis is 51.4 million. Development and tax credit consulting and syndicatlon costs are included h- the developer fee cap. City of7uctin nffordabllny Gap and leuenged Plnancing Analysis Page G3 Table C-4 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS FINANCING ASSUMPTIONS 9°k TAX CREDITS, FEDERAL AND STATE TAX CREDIT EQUITY Requested Eligible Basis $71,616,838 Less: Non~Qualified Non-Recourse Fnancing 50 Unadjusted Eligible Basis $71,616,838 Adjusted Eligible Basis (high CostArea Adjust) 1.30 593,101,884 Qualified Basis (% Low Income Units) 100% 593,101,889 Tax Credit Rate 8.609° Annual Allow. Federal Credits S8,006,762 Tax Credit Pricing (Equity Raised Per Tax Credit Dollar) Federal 51.000 Federal. Tax Credit Equity (99.99°~6) $80,059,618 FAIR MARKET VALUE CALCULATION Net Operating Income; Restr. Rents 51,563,730 Capitalization Rate 8.50°~6 Capitalized Value at Restricted Rents 518,396,824 MAXIMUM CONSTRUCTION LOAN CALCULATION Max. Constr. Loan as Percent of FMV 75°k 513,797,618 Plus: Federal and State Tax Credits 580,059,618 Maximum Construction loan $93,857,236 CONSTRUCTION LOAN Constr. Loan Amt. 593,857,236 Interest Rate 8.50% Loan Points 1.00°A Average Loan Balance--Construction 60.00°.6 Construction Loan Term 12 Montt-s Lease-Up Period 3 Monti~s Total Construction Loan Period 15 Months Construction Loan Interest--Construction 54,786,719 Construction Loan Interest-Lease-Up 51,994,466 Total Construction Loan Interest 56,781,185 Construction Loan Poirrts $938,572 PERMANENT MORTGAGE Net Operating Income 51,563,730 Debt Coverage Ratio 1.25 Debt Service Based on DCR ~ $1,250,980 Mortgage Term 30 years Interest Rate 8.00% Max. Mortgage Amount (DCR) $14,207,327 Loan Fees 1.00% 5142,073 City ofTustin Affordability Gap and Leveraged Financing Analysis Page C-1 Table C-5 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS L1M1TS 9% TAX CREDITS, FEDERAL AND STATE Orange Co. 9%Threshold Basis Limits, 2008 Unit Size TCAC Basis # of Units Limit Per Unit Total Basis 1 Bedroom 73 $139,272 2 Bedroom 100 $168,800 3 Bedroom ] 00 $215,040 4 Bedroom 50 $239,568 2 Bedroom Mgr's Unit 2 $168,800 Total Threshold Basis Threshold Basis Boosts Plus: Prevailing Wage Boost Plus: Subterranean Parking Boost Plus: Day Care Center Boost Plus: Special Needs Boost Plus: Elevator Boost Subtotal Boost (1) Plus: Energy Efficiency Basis Boost Plus: Distributive Energy Boost Plus: Seismic Upgrade Boost Plus: Development Impact Fees Total Adjusted Threshold Basis Max allowed 20% 7% 2% 2°~ 10% 39% 4% 5% 15% 0% 0% 0% 0% 0% 4% 0% 0% Total Unadjusted Eligible Basis Requested Eligible Basis $10,166,856 $1.6,880,000 $21,504,000 $11,978,400 $337,600 $60,866,856 $0 $0 $0 $0 $0 $2,434,674 $0 $~ $8,315,308 $71,616,838 $88,473,482 $71,616,838 (1) Under 2008 TCAC regulations, the total combined boost for prevailing wage, p2rking, day care center, special needs and elevator may not exceed 39 percent. City of Tustin Affordability Gap and Leveraged Financing Analysis Page C-t Tlrb G4 mmm EROIOTYFB STACTIED FIAT APAUA461Y OFERATR•G 1UDGET AND CAS" ROW 9% TAX CROWS,:MERM AND STATE MALATION RATES! hwomelw Ib 2.50x Opegw6Com 330x P.wwnhp Wo, hs 2.73% 3 6 7 t 9 10 11 12 1 1 3 • R41IR1 trraNet $3,017,400 43,0911,133$3,17W56 33,249,410 $3,330033,413.911 $3,467,743 S3.5K7b $3,676,409 $3,761.319 1067.511 57.951.090 nos rawrA i Rod PUN SIMOE 43.1.1ot 133,106 433,10/ $33,101 333,10E Into 533,/06 533,10E $33,108 S33,IOE 5.700% OISgt7N 11154,6411 OiNkSO4 0162,474 0164532) 517400 (1171.963) OWBA37) 6143,420 6144,416 6193,1261 {1/97,954) Wean Allowance 33A9 S30 $2.971.301 53PK736 43,1206W 53,190,220 53aM323 43,357,103 S3~11 43,525,696 33.613,411 13,702.508 $3.794,243 MM PNA 5306 Atha 01,170,014 (51,214930) 131,243,333) 01.297,20 6t347Am 61,2816593) 61,431.729) (SIAMS67) (37'740,667/ 61.:94.990) 1SI,6"l) 01.701.165) opal" C" 51,7216430 $1,768331 $1,791,71 $IA22,647 SIA54.618 f1,9K.73o S1A196173 $1,931,94 51.913,009 12,018.421 52,052,109 SMK,W9 I4MOpl41MS4�� 3400AMya 1$139,0= 6 134.554 6UUM 01.4,1331 01416174 01547941 O1SOAM O391t 1S5, 61711194 0177,1771 0113,3781 01!9,796) Rlw�+ 3 oox 612.164 636,3744 113%000 038.61,2 "274 "AM O4S M 644AM 646,720 (7,138► 049,912) 10 ptiiii8,� baa $1,563,730 $1,518,472 11,614,63 61,1,29,796 51,615,112 SIAMM3 31,711.2]5 31,741,111 $1,767,624 31,795,406 $1,819.210 1/,686243 CAS"RAWFORDE9TIERK mm FOR DEFF SOM 01.710.914 61,754914 61,25,2914 61,25D,664 (SIAM,9101 01.2501910) 61,294914 61,750,914 61,254914 67.7549101 67,254964 01,250514 D/li 1.75 1.77 1.29 1.11 • 133 ids 137 139 1.41 1.13 1.41 1.97 Di1Ch1t411PRS* $311,730 $33SAM 5363.563 4386,016 $414,162 $4391663 3414,248 14/8911 $316.64 $542.476 556/.236 $644.303 No GmaI nm 3201000 024000 62t1y$$O 621.115) 621AE4 622.797) 622.9051 623.539 024.160 t$24A44 (825,331) ($24233) (5261960 DawkpeAMM WrG2 NET CASH RAM AFTER MSL MGL FEE $792.730 $317,941 $347,466 5367.172 5391,880 $416756 341,70E $464729 1491,797 $314696 1542,065 $610,348 12D.S" $21,113 52IA96 521,292 527,906 $23,335 $21.183 124.146 $25,531 $26.733 $26954 1WRIIImft#1me411pMp.1N1EoW44 OWN CIV,eft 6, "w" AEad•WT G7..d Im�Rv.CKA-4.4 1"04 RH6fAL FWTOFTM STACKM FLACAFARTMENTS CIPMUTM RtXW T ANP CASH HOW #% TAX CREDfM FEDERAL AND STATE ESCAEATIM RATES: 6mndWAnS 7.5076 Operdlre Carly 6Wdddhlp Mp. lice 2.75% _ 11 14 t5 16 17 16 19 20 21 22 23 24 Re9pSR4we ' Grow p4wow Reit 14A69,M KIS%S19 54.2W" 54370`085 54.47!4347 $41M.331 54,704114 54.627,167 S4.94.961 S%WA70 55,194,670 $3,924,536 Lerwkoo" _ $336109 $336108 $33,106 $22,105 - $336108 533.108 5.13.10E $33,108 $33008 $3.1,106 $32.108 $33,106 YronoyAltoe SAO% 62M=) 0207,674 621.2,175) 08214.5051 024667) 4229.367) 42351M 15741,164 (5247,218) ($253,795) 425967371 0266,227) me Rwdw u ma $3.666,272 $3,964.656 SUM,439 $4,164,696 $4.2M.4V 54,394,972 $4,503,916 "AISAS6 K730,351 S4A47,679 $4,968,044 $5A91,417 Op-ftc ft $30070480. 01,74.9$0) (S1,629,61W d1,990,973) 01,664156) 02 .029,7641 d2A","% (52,174267! 052,219,327► WMIA" 42,4MS3S) 02.463,969) 02591,1541 mdopmftlwe 57.174121 12.154922 $2,196,567 $2,224,540 $2,259,724 S2,295,101 $2134654 52af6,160 SZOL190 $2,438,144 12,474,17S $7,514263 Reple1leeeev. $400A✓K NSW* 02093141 (5214430) 4217.70 0225,414) 15733.3069 08241,474 0249,9NA d2MW3) 1$267.724 4277,097) 08266.7961 OpEw %ftw . 340% 03.1.0261 S0 s6 ISSIAMI $6 $o 065.19" so $0 so 074,914 $o CASH FLOW FOR DEW Wft $'ATMA" $1AN-= $10791136 S/a4?1939 $$034,106 5?A61.79/ 52,023x62 Ai MAS 52.M.SZS 52,1711,414 &L122.262 $2,221.469 Debt ServiC&flnlTmaDeed 41154990 01.25496" 51,230,964 01,7549601 a1,2549q (51.254960) d1AMAW 61.260199" ISIAM 901 087,760,9901 021,250.90 d1.25t19966 Dom On *6 Ra110 ISO 136 139 1S61 143 IAS 1.2) 1.661 1.71 1.79 1.70 1.70 1497 CASH FLOW $419,64 5704679 $739,156 $696,969 0613,326 $614614 5771,002 "BASS 599 W VAS6479 3971,292 $MAW oeeelglerAmdM6S.Fee $70,000 027.6061 082914571 10829,2401 034044 4349701 1531.76) 012,S91) 63SAM 034,40" 033,333) 036,327, 07.320 IVETCASHFLOW AMER PART,MCEM 5992,169 S672A71 5699,917 5666,915 Sn2ASS S779A9S 2744411 5671,967 5956,137 $601094 $434,955 1935162 709. rmrlmro*Mp•he*ee~ 327,66 S29,4S7 $29,240 530,044 SAM $21,719 532,161 WASS 194,409 $35,355 136,377 $37,324 CkydTi9e A9udkbd rGW.Q' itm-ftI AA6 F�e47 MOW C-6 4FMAL rROIOTYIii 6FACOWD HATAMOWNTS ORRAnt4G 9UOM AND O►6N ROW 9% TAX CREOIIS, FIDE ML AND SdTF ESGIMTION RAM I- M-11 250% Opead4 f Com 3.507E ftrimmAlp Wg8 Fes 215% 25 24 27 21 29 30 Rad Rar•tes Gt ft" Rgl ROtt $S64STAW $5,594061 %7M.943 $5,177,262 $604.224 54174.130 Iawwoo1Rr $34108 SS,106 $33,100 i33,10 $33,104 $336101 lhrsef:7AUMWM 5.0071 (SmAO 6279.700 6246,6971 6213,569 63ol.211) 630741) 6141 R4a11 hoot $5,217,675 $3,347,494 6.414584 SSA14535 55,754120 $5,144196 Op""C40 $300A*m 62071,491 ($1.764960) GZUI77rn 62.961.571 a3,06SA01) 155,172.4971 Not 0pw416sho 52.$44360 52.11:,417 sulk= 52,654,601 $1644519 52.736,296 Rlplwm"RR 'Q $400 At% 67948331 tlw,2= 017,9751 6329,104 6314622) ISMS" Opwaft RO4M 3.005 59 642.950) SD 1D 651.966) $0 0494 FLOW FOR O W SM S2.249,M 52.192.325 $2.'504607 82.323.460 $2,257.929 12,373,754 OdwswWke-f1t119t61Dad 61250.960) 1511149101 6129q,94D 61,2549401 61.25416.9 61.254684 DA*Co` mpRk 6 1.90 5441.564 175 1941,345 IJ4 SI"A27 1.96 SIX4,511 1.60 S1,406.949 110 $1,122,714 NETCAmmm D-*pwA—hfNLFae 52MM 6547531 6344047 640A9t1 641.$00 0427461 641.924 NET CASH MW Af M MILL MGT. FO $464215 5901,93/ $1,009,136 51,002.473 1664200 $1.074130 MaJwrRl boo -Alp MM. fee l $36" 131,497 $40,491 $41AM $42.749 $43.4.04 Ch r4flnr Ap u Ma.66Fif 6f wd law, 1 F1 M*Y TWO G7 RENTAL FROTOTVFEI STACKED FL49 ATARTMOM 01PELU NG AND REPLACEMENT RESERVE F4)ND B UNM 9% TAX CREDn FEDERAL AND STATE 1 2 3 4 36 7 1 9 10 11 OFER;ATING RESERVE BeXkmlq(Balanee S292,M $331,908 $373,296 (116,495 $461,659 =308,862 $SS86182 $608,702 SWIM 5719,677 $776,310 kfen:sI Earnings 1.50071 511308 14,980 $91599 54247 5G,925 $7,633 $4373 $9,146 $9,953 $1%795 $11,675 C0F*&n110ne 3.00091 $35,100 53029 $37,600 631,916 $40,218 $41,688 $43,147 $44,667 $46,220 $47.635 $49,512 w8hdrsmis $0 $0 so $o $0 so $0 $0 $0 $0 $0 Ending Balance $331,916 $373,296 $416,495 $461,659 $508,862 $554182 $6091702 $663,504 $719,677 1776,310 $839,497 Max. Balance 0 0 Mn. Buft 6 Mos. $SOS,= S60S,475 $626,667 164/,600 6671,301 $694,796 $719,114 $744,263 $77%333 $797,295 $825,200 RFILACOAGNT RESERVE Bonloning Balance $D $134000 $266,500 $409 757 $56%036 111269,586 3428,00,9 $541,253 $764163 $951,276 $381,701 I,nawnc Earnings 1.500% $0 51,950 53,991 $6,146 $4401 $1,044 $4420 $8,914 $11,528 $14,269 $5,726 Conubmsons $130 000. $134,550 $139,259 5144,133 $149,178 $154,399 $159,10.1 $165,396 $171,185 1177,177 5113,371 Vrtrhdewals $0 s0 $0 $0 ($449,029) so 10 m $0 ($761,021) $o Ending 1lalance $/30.000 5264500 $408,757 $560,036 $269,586 $424029 $994,253 1768,563 $951,276 $381,701 $570,804 CYydheft ANsdaloftCepand L--§PdAawI Aasirk F%OG9 Table G7 $652,089 RENTAL PROIOIYPE: STACI(BD MAT APARTMEN OPERATING AND RIPLACEWNT $945.683 RESERVE FUND BALANCES $1A33,9ZZ 9% TAX CREDITS. FEDERAL AND STATE 91,130,370 OPERATING RMM $1,164,53S Bogkm R Balance $12,761 k*ow.1 Eanllnp 1.500% Contrmullons 3.000% vvwxkr w s $15,741 En ft Balance $17,210 Max_ Balance • a Mos. Buda: 6 Mos. REPLA CEIN[91T 11150VE ft#w %Balance so , -, - ' Eam6>es 1.500% GOMAM loses $0 wilxlawab $0 EndinR Balance $0 12 13 _ _ 14 15 16 17 16 19 20 21 22 5839,497 $652,089 $917,909 $931,677 $945.683 $1,018,612 $1A33,9ZZ S1,049A31 91,130,370 51,147,325 $1,164,53S 512,592 $12,761 313,769 $13,975 $14,185 $15,280 s15,s09 $15,741 $16,956 $17,210 $17,468 $0 $53Am so so $56AM $0 $0 $65,198 $0 $0 $0 s0 $0 s0 $0 so $0 so so $0 so so 5852,089 $917,909 $931,677 $945,653 51,018,642 S1,M3,922 $1,049,431 $1,130,370 51,147,325 $1,164,535 $1,182,003 $554,082 $8831975 5914,914 $946,936 $980,079 $1A14,362 $1,019,865 $1A86,631 31,124,663 $1,164,026 S12M,767 $570,801 $769,163 $977,139 $1,195,110 5467,379 $692,185 $927,986 $1,175,214 $1,434,316 5556 303 s82s m $k $11,537 $14,657 $17,927 $7,011 $10;383 $13,920 $17626 $21,515 $6,375 $12,380 $1891796 $196,439 $203,314 $210,430 $217,795 $225.418 6233,308 $241,474 5249,925 $256,673 $267,726 $0 so $0 0 956ADO $0 $0 $0 $0 (61,147,453) s0 $0 $769,163 $977,139 $1,195,110 $467,379 $692,185 $927,986 $1,175,214 $1,434,316 $558,303 $825,35D $1,105,456 Gy elTmw pale t-te AN.,hbft Cap end LeveoW F1 modKAW*sb Tame G7 24 RENTAL PROTOTYPE: STACKW FLAT APARTAIEIe OPERATING AND REPLACT3MENT 27 RESERVE FUND RALANCES 29 9% TAX CREDITS, FEDERAL AND STATE =1,182,003 OngL43ING a maw $1,293,668 OegkmWg Balance $1,415,719 hand Earnings 1 Soom Contributions 3.000% 1MltKIONwals $19,40S WDS Balani $21,236 Mae. Belence 0 t Mas, Budg, 6 Mot. aEPIACBAMY R mmw $74,816 &glnnMg Ealanes $0 teat M E9minas 1.50016 CmArlbutions $91,960 s0 $e Eedryt Balance $0 23 24 25 26 27 28 29 30 =1,182,003 $1,274,550 $1,293,668 $1,313,073 $1,415,719 $1,436,955 $1,45%,909 $1,572,395 $17,730 $19,118 $19,40S $19,696 $21,236 $21,554 $21,070 $23,505 $74,816 $0 $0 $82,950 $0 50 $91,960 s0 $e $0 $0 so f0 9D $0 $0 $1,274,550 $1,293,666 $1,913„073 $1,415,719 $1,06,9SS $1,454509 $/.572,355 $10A,940 $1,240,934 $1,290,577 $1,335,747 $1,382,496 $1,430006 $1,460,967 $1,532,001 $1,566,449 $1,105,456 51,]99,134 51,706,916 sm,820 $960.999 $1,313,666 $1,662,496 f AMAS7 $16,562 $20907 $25,604 $9,957 $14,71s $19,705 $24,937 $30,421 $277,097 $266,793 $296" $307,222 $317,975 5329,101 $340x622 $352.544 $0 $0 ($1,365,533) $0 50 . $0 $0 ($1,622,446) $1,399,134 $1,704916 $663,820 $900,999 $1.313,686 $1,662,490 $2,020,037 $78%576 CNv.moM AemtebW C+V.d PAeC41 Table GB RENTAL PRC-TOTYPE: STACKED FLAT APARTMENTS RENUIL INCOME AND OPERATING COSTS 4%.TAX CREDITS, TAX.IXEMPT BONDS ASSUMPTIONS 2007 Median Household Income, Family of Four 578,700 ANordable Housing Cost As a % of Income 30°/. No. of Bedrooms Totak 1 Bedroom 2 Bedroom 9 Bedraorn 4 eedroortt Household Slze (1) 1.5 Persons 3.0 Persons 4.0 Persons 5.0 Persons Household Size )name Adjust. Factor 75% 9094 100°/. 10896 Utility Alkriranca (2) 354 568 S98 S1 D9 No. of Units 323 73 7 DO 100 50 Total Bedrooma 773 73 200 300 200 AFFORDABLE RENTS SY INCOME LEVEL Mnual Gras Income 529,513 S35r415 539,350 542,498 Affordable Morttfily Housing Cat 5738 5885 5984 31,062 Less; Morttltly t1t)lity AI)awance (S54) (368) (398) (5309) Affordable Monthly Rent 5684 5817 5886 5953 t~096 t2f A~ Annual Gras Inwme 335,415 542,498 f47,220 550,998 Affordable Monthly Housing Cost 5885 51,062 51,181 51,275 Lace Monthly Utility Allowance (554) (S68) (S98) {5109) Affordable Monthly Rent 5831 5994 51,083 51,166 NET OPERATING INCOME Monthly Affordability LeveVNo, of Bedrootra Unib Rent Gross Income (~9G of Median 1 esdroom ~ 22 S684 515,048 , 30.096 of Units T Bedroom 30 5817 524,510 3 Bedroom 30 5886 S26,580 4 Bedroom ] 5 5953 514,295 b096 of Median 1 Bedroom 51 5831 542,381 70.0%ofUnits 28edroom 70 f994 569,580 3 Bedroom 70 51,083 575,810 4 Bedroom 35 51,166 540,810 Totak 323 3309,014 Manager's Unit 2 CROSS RENTAL INCOME S3,708,166 Las: Vacancla (3) • 5.0°A (f185,408) ;32 300 Misc. income #100 Per Unit , GROSS ANNUAL INCOME 53,555,060 LESS: OPERATING EXPENSES S300ftmit/mo. 53,600 Per Unit/year (51,170,000) Less: Operating Reserves 3.096 of Open. Budget (535,100) Las: Replacement Reserves 5400 Per UniWear (f130,000) NET OPERATING INCOME 52,219'960 (1) Assumes the lesser of TUC occupancy standard (1.5 persons per bedroom) and California Health and Safety occupancy standard (one person per bedroom plus one). (2) Source County of Orangle Housing and Community Services, effective October 1, 2006. Assumes tenant pays a!t electric heating, cooking, and water heating and basic electricity; landbrd pays wager and trash. (3) TCAC requires a 5% minimum vacanty rate unless waived based on vacancy data in the market area. City ofTwtin nrtordablllty Gap and te~eraaed Flnrncing Analyaia ire C-12 Table G9 RENTAL PROTOTYPE STACKED f1ATAPARTMENTS DEVECOPMINT COSTS 49f. TAX CREDITS,TAX-EXEMPT BONDS Aces (Units Plus Parking} No. of Units Total L1vingArea Community Room Total Net Square Feet, Residential Units Other Building Area Total Net Square Feet Total Gross Squaro Feet 96 Residential 13.00 325 319,150 0 319,150 0 319,150 319,150 100.0096 tal x Credit Eiig. Basis (10096 Re';IdJ LAND ACQUISITION 543 Per Site SF 524,350,040 SO SITE 1MORK 520 Pbr 5tbe SF =11,325,600 511,325,b00 UNR CONSTRUCTON HARD COSTS $155 Per SF (49,468,250 (49,468,250 CONTINGENCY 5.0096 of Hard Costs 53,039,693 53,039,693 ARCH.lENGJCONSTR. SUPERVISION .7.0096 of Hard Costs f5,960,072 ;5,960,072 LOCAL IMPACT AND PROCESSING FEES S26.R5 Per SF ;8,315,308 58,315,308 ALTA SURVEY 53,000 S3,000 ENVIRONMENTAL PHASE l ;7;500 • 57,500 SOILSTESTING 510,000 570,000 CONSTRUCTION BOND FEESICOSTS 1.0096 Plus 5100,000 5693,933 SO CONSTRUCTIONA.EASE-UPINTEREST 5.50% 15 Months 52,776,b37 52,776,637 REAL ESTATETAXES AND INSURANCE 1.6096 of Hard Costs 51,3b2,302 51,362,302 TRLE AND CLOSING ;13,000 515,000 APPRAESAL FEES 510,000 570,000 REAL ESTATE LEGAL S30,000 512,000 ORGANRATIONAL LEGAL S30,000 50 MARKET STUDY S25,OQD 525,000 1'057{ONSTRUCTK)N AUDIT 515,000 SO MARKETINt:,/LEASE•UPlSTARLUP 5100,000 SO OPERATING RESERVE 3 Marrths Oper 5292,500 50 DEVELOPER FEE (1) 15.0096 of Dev. Costs 51,940,000 ;1,200,000 BOND/UX CREDIT ADVISOR 530,000 50 TAX CREDTf APPLIUTION FEE 52,000 50 TUC ALLOUTION FEE 4.0096 of Mn. Credit (156,570 SO SYNDK;ATION LEGAL 530,000 SO TOTAL PROIER COST 5110,095,82? 583.657,779 PER UNIT 5338,756 5257,347 PER SF 5344.97 (1) As of 2006, the maximum developer fee permitted by TCAC is the lesser of 1596 of development costs or S2 million. The maximum amount that can be included in eligible basis is 51.4 million. Development and tax credit consulting and syndication cats are Included in the developer fee cap. City of Tustin A(fordabllity Gap amt Lewngad FlnancingAnalysh Pace G13 Table C-10 RENTAL. PRDTOTYPE: STACIDrD FLAT APARTMENTS FINANCING ASSUMPTIONS 496 TAX C7tEDiTS,TRX-EXEMPT BONDS TAX CREDIT EQUITY Total Eligible Basis Less: Non-Qualified Non-Recourse Financing Less: EI'sgible ArnouniVoluntarEty Excluded Unadjusted Eligible Basis Adjusted Eligible Basis (Nigh Cost Area Adjust) Qualtfled Basis Tax Credit Rate Annual Albw. Credits Tax Credit Pricing (Equity Raised PerTax Credit Dollar) Federal Federal Tax Credit Equity (9996) CONSTRUCTION BOND AMOUNT ConsV. Loan Amt. Intensct Rata Constr. Bond ]ssuance Costs/Fees Average Loan Balance--Construction Construction Period lease Up Period Constnxxion loan Interest--Construction Construction Loan Interest-Lease-Up Net Interest Cost Bond Issuance Costs PERMANENT BOND AMOUNT Net Operating Income Debt Coverage Ratio , Debt Service Mortgage Temt ]merest Rate City of Tuscln .fforclab(Ilty Gap and leveraged FinancingAnaiysis 0% 1.30 10096 55°~6 of Agg. Basis 5700,000 PRus $83,637,779 $0 $0 $83,637,779 $108,729,113 5108,729,113 3.6096 33,914,248 $1.05 540,688,609 559,393,300 5.50% 1,00° 60.0096 12 Months 3 Months 51,959,979 $816,65$ $2,776,637 3693,933 52,219,960 1.25 51,775,970 30 years 7.0096 Page C-14 Table C-71 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS 4% TAX CREDITS, TAX-EXEMPT BONDS Orange Co. 4%Threshold Basis Limits, 2008 Unit Size TCAC Basis # of Units Limits Total Basis 1 Bedroom 73 $179,727 2 Bedroom 100 $216,800 3 Bedroom 100 $277,504 4 Bedroom 50 $309,157 2 Bedroom Mgr's Unit 2 $216,800 Total Threshold Sasis Threshold Basis Boosts Max allowed Plus: Prevailing Wage Boost 20% 0% Plus: Subterranean Parking Boost 7% 09~° Plus: Day Care Center Boost 2% 0% Plus: Special Needs Boost 2°~ Oty° Plus: Elevator Boost 10% 0% Subtotal Boost (1) 39% Plus: Energy Efficiency Basis Boost 4% Plus: Distributive Energy Boost 5% Plus: Seismic Upgrade Boost 15% Plus: Development Impact Fees Total AdjustedThreshold Basis Total Unadjusted Eligible Basis Requested Eligible Basis $13,120,071 $21,680,000 $27,750,400 $15,457,850 $433,600 $78,441,921 $0 $0 $0 $0 $0 4% $3,137,677 0% $0 0°k $0 $8,315,308 $89,894,906 $83,637,779 $83,637,779 (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 o{Tustin Affordability Gap and Leveraged Financing Analysis page C_~ 1"C-12 MmIAL PODWO1Tl1: STACKID FEAT AFAWIMt34T7 OPERATING SUDCFT AND CASH FE01V 4%TAX CREDIF%TAY-VIM, 90NDS ESCAWION 1ATM lWoralmh I -M OPWAg cma 33M Pneanahip 16v. Fee 2.75% 3 4 S 6 7 8 9 10 11 12 i 2 13.708.166 $301001%2 $90194844 53.9!0.291 f4OU.124 94,193,432 $4700,1!8 74,467,846 747141,043 $4,63%994 $1,744769 f4,165,4]6 Cama 7mre)al Rene $32,200 $33,10e $33,10/ 533.101 $336106 $33,108 533,196 $33.108 $33,196 $73,196 533,106 $33.108 lauedrA w WtmyAllt 5.00^ 0141!,4090 0,90,044 ($I94,795) 0199156/) 62DOW ($201773) 0245,017) 0220390 0225,9e1I) 0231,33% 0237,3390 (1243,272) Na/ ramal lntonle $3,!!!0160 53M3,936 $3,734,207 53,n6734 $021.573 "!,767 74,118.429 $42206362 $4,325,746 $4,432.552 S"2,53e $4.65%27) Dpwdk*Cala 3300 Adm6. (51,170,000 (11,19MMI M,7L9.230 01,241,962) ($1.2111,461) 61,323.7490 61,3S6,MU W,3907M 011125,571) 151,461,174 61,497A991 01,533,1411 Ndopwau%-6oae1e $2,38!,6$0 $2.444686 $2.504.976 S7,5661772 ' $2,!184114 12019$0139 61543990 $2,761.587 0,39,603) $2012%) (5164396) S2AW,717 (6171,)) 72.971.392 (1177,177) $3.044639 ($163.37411 53,1206132 ($18%794) mph'.88a,1e POIWM $400 AJ1r. 3.00% 01306000 %37,10% 111343!0 OWE) (9139,25$1 03L,677) (1144,137) ($37,7990 x149,1790 036,74.6 0301712) %40.705) %41723) 047,76a (SOA35) So 70 OPS*MBfl .1. CASH ROW AVAIL FOR DE61SEIM 52,219,= 12,274199 $2,326,039 $2.3/4.)0 $2,442,192 $2,504927 01.775,970 S2,5$jAn 01,775,97% 1%622,680 01,775.9701 57,615,755 01,776,970 52,7501370 ($I,775.17q SUMA61 01775,970 53MO6336 01,773,9700 D6bESoalet"FWTne9Deed 151,775,971/ %1,7751970 51,7750170 01,773,970) %1,773,110 IA4 lA8 131 1.55 1.61 145 own cmetpwo las $44%M 128 54!2,119 1.31 $MAN 1.34 5608,010 138 $6640" IA1 1724,931 $76410e $666/710 59081,795 SHAW SIAM491 $1.154,366 NET CASH FLOW DadgW A14a1 k%t Fes $2oA0D (5201000 BASSO 021.1190 ($21/AQ 022.2971 42z.9DS 423609 $761.574 024112) 18223) ($24,$40 $564945 a25,5311 7944,69 024233) SIRS%258 (SM49541 $1,127,411 WTGWIFLOW AFTERTARTNELMGTIN $423.710 $477.679 SMI,7S4 SSe7,174 $"3,920 5700,052 mailam ►ae6ulddp Mr. Fee 64cwdao $now 92%!50 $21.115 721,6% 572,290 $22,905 $231SIs $24163 me" 323.531 SM233 (24954 531,«6," rqp C-14 WO& W 2 9114ft PROTOrVM SLACKED RATAPAWMEMI CMAnNC 6UDGTTAND CASH ROW 4% TAX CREDITS, TA%4M M►T 90ND6 ESCA4AYWN Unk hKOW4 Rwe. 2.50% Opwaurs Cwi Ls0% I'r4aw.hip W* fee 375% . _ 17 14 13 16 17 16 19 20 21 22 23 24 at" ftrwAm GdwA, a. It" 14,46704 $5,111,751 15,259.544 15,370531 $5,504,716 SSAOIL416 SS.M.477 S%S21,067 $W436S 142214172 $16.31%&M jkS43,473 Iwwdry/O61w $33.109 $23,106 131,1,7 $33,109 13x106 1336106 153,109 133,100 133,108 $336106 s ,109 $33,100 V4r.,LyMbwroe SAO% 63491" 6765:5611 ($706,977) 6269s2n 1E2751240) sm.131) (1269.1741 09601m CIMA131 531IA095 ($319,194) 11327.1741 14A Modal hasue $4,YMM $4666,271 $5,014)05 $5.13!6114 $S,262,664 SS,393.413 $5.Sa.410 UVA.769 15.605,559 $5,94%p1 116.097,7911 $4249.407 Opmomc 61T $306 i1Nlm. 01,573,312% ISIAIZA 1 (11.653,17($ x1.691.414 ,71.714($21 111.764297) 4111.104,11011) 4100421) 111,927.161) ,71.965,/11) (62,414,211 (12,064,594, NeAOpaaeFsleewer 13,190,300 13,276A73 $13PASS $3.44%605 13.521.,42 $3.613,100 $3,70?,610 1x7!1,747 SS, MS?& $3,964,760 $4.OI3.551 $4,114,112 Wpl6tummammene RWAM7a 4196,43% 61203,314) 4210,44 41217,715) 422-%411) IS233�3111M OW.474D 4124%924 WS$,67A 4267720 CP".CW) {%26479% Opeu6e6foraw 3.00% 110 1X1 4411—WO 6o 511 $o m $0 467,5151 10 So 10 GSH nMAV4L 5O! DEKT 5111% $3,004609 $397x0/6 $3,097.170 $3.232,610 1x300.374 $363796002 $3.461.136 13,544,422 13.572.190 $3,717,034 $3A ASS 5309%017 Ddt Swvke-P4K TAM Owd (61,775.00) 41,775,474 614773,970) (61.775A70) 111.775,S2p 1$1,775,970) 41,775,97% 41,7'75,97% {$1.775,97% 151,77%OM 1$1,775,?!01 41,776,97'4 p4MC4eewpRalfe 1.60 1.73 174 IA" LIS 190 1.13 IBD 2111 2119 2.14 2.19 NET OmRJOW 5/424616 S1.2W,/21 $/,321,5011 $1,444640 11,3!4,404 15.600,632 11,621,166 1/,766AS2 S1,7W20 06.941,064 $4034)4/5 12,122,047 Gao" I And Fee mom 627.616) 476,4571 1129240 630.044) 420($,4 631,7191 63269011 633,46111 6144031 631.3551 436,3275 637,320 NEF CASH ROW AFTER PAOTNEK MGT 606 06,197,206 $1,261,671 S1,i92.260 11,414796 11.493,334 11,$7;,113 S1A92.975 11,734164 $1,761Al2 51.905,701 $1,994,156 12,1164,711 Ma.hmm a el Up MAL ft 4walm"a 527.656 SM437 529,240 630.014 mom 531,719 $32.506 $17,40 534,409 $35.355 M327 S37MG CbydyAgb ARWd*&r mP W L --WA r—d-9A-Ir^h f6pc47 Table 412 lWTALRIOFO rl: MC((EOTLATAPAIUMOM OFIHUEF" 613)MAND CASH FLOW 4% TAX CREDDS,TA%JX MF1ROMM ESCA ATM4 RAM bKo"Wllenu 2."% Opw"PECO! 5.W% q.ee MP Me. Fee 2.757E 25 27 2$ 25 30 Mod ow"Ms (`,pa R1w" ■O4 $6,707060 STAft422 63%1a$ s»aa $33,1(5 :33,109 $33.W ?33.109 vacwxy panKe SAM 63±435» 0348.7371 (E3SL33A MG1.130 0577476) 03726421) MARRYA kto" $6.40 M4 16,564107 66.727,382 $6OK739 $7A66 57,24L1a orneei c"s f300 A*TdL ($7.116,20A (MIS%119 ($2,223,342) 4$2,27kWO Li1,33UW (±?:394.297) Noop"dgfte WOMB 54.99M S4S0U59 s461SA13 $4730 O WPM? bpip... wFrew $400AJrr. W96AM Lf>m.12n (Dir9FS) 029,704 434442n 4352,544 pmvftnmm S.M s0 fa 064M $0 so so GSH ROWAVAIL. FOR OELTSW s3.99L772 f41aR770 $4119.96! $4.N6.7a K".70 $4A'%M Olksuyloe-R4L1FroDeed {$1.77!,974 01,VMM (51,775.97% R1.77SAM 01,7?SWU 51.77S.97p CWA cow r Redo 215 2111 2!2 7A1 2A7 2.53 HEF CACH FLOW SL21 %M $4311,500 $7,349.595 $2.5101759 52AI31M s2.71412" De4ebim Awd Wo fm $30,000 1:34333) (M40F) (54.4911 (541AM M7421 043A74 HET CASH TLOWAFtMTAK1NOL MC0t FE $L177,450 sun" s}302.904 s2.4w,33 i1,97Lo39 $; 5.374 114a*d rm bm f M$L Ree ftd*o $Jid' W $39.40' M491 $41.604 $42.749 .$0.924 nTdii. hrG14 AN—% L'f4ene L--.WeI d Mil TAk C-13 RENTAL PROTOTYPE SLICKED FIAT APARTMENTS OPERATING AND REPLACEMENT RESERVE FUND RALANCES 4% TAX CREDITS, TAX-EXEMPT BONDS 1 2 3 4 5 6 7 8 9 10 it OPERATING RESERVE Beginning Balance $292,500 $331,968 $372,945 $115,416 $459,446 $505,082 $S52,370 =601,361 $652,104 $704,652 $759,057 Inkwok Earnings 1.500% $4,388 $4,980 $5,594 $6,231 $6,892 $7,576 $8,286 69,020 $9,782 $10,570 $11,386 Ccntdbulions 3.000% $35,100 $35,978 $36,877 $37,799 $38,744 $39,712 $40705 $41,723 $42,766 $43,835 $0 vvldxbzt als $0 50 $0 $0 $0 $0 $0 $0 $0 $0 $0 Ending Balance $331,988 $372,945 $415,416 5459,446 $5051M $552,370 $601,361 $652,104 $704,652 $759,057 $770,442 Max. Balance 0 0 Mos. Budg: 6 Mos. $585,000 5599,625 $614,616 $629,981 $645,731 $661,874 $678,421 $695,381 $712,766 $730,585 $748,949 REPLACEMENT RESERVE Beginni" Balance $0 $130,000 $266,500 $409,757 $560,036 $269,586 $428,029 $594,253 $768,563 $951,276 $381,701 kmwem Earnings 1.500% $0 $1,950 $3,998 $6,146 $8,401 $4,044 $6,420 $8,914 $11,528 $14,269 $5,726 Contdbulbns $130,000 $134,550 $139,259 $144,133 $149,178 $154,399 $1S9,803 $165,396 $171,185 $177,177 $183,378 Wdukawals $0 $0 $0 $0 ($448,029) $0 $0 $0 ($761,021) $0 ErKling Balance $130,000 $266,500 $409,757 $560036 $269586 $428,029 $594,253 $768,563 $9S1,276 $381,701 $570,804 Cky dTWs Aao.dabaiq. Gap and toswa Rnandng Analysis Pale C -i Table C•13 RENTAL ►ROIOfY►Et STACKED FLAT APARTMENTS OPERATING AND REPLACEMENT RESERVE FUND BALANCES 4% TAX CREDITS, TAX-EXEMPT BONDS 12 13 14 15 16 17 18 79 20 21 22 OPERATING RESERVE Beginning Balance $770,442 $781,999 $793,729 S80S,63S $867,315 $880,325 $893,530 $906,933 $920,536 $934,345 $7,005,875 iMerea Earnings 1.500% 511,557 $11,730 $11,906 $12,065 $13,010 $13,205 $13,403 $13,604 $13,808 $14,015 $15,088 Callributions 3.000% $0 $0 $0 $49,595 60 $0 $0 5o $0 $57,515 $0 Withdrawals $0 $0 $0 $0 $0 s0 $0 $0 $0 $0 $0 Ending Balance $781,999 5793,729 $805,635 $867,31S $880,325 1893,530 $906,933 $920,536 $934,345 53,005,875 $1,020,963 Max. Balance A F Mos. Budg 6 Mos. $767,571 $786,760 $806,429 $826,590 $847,254 $868,436 $890,147 $912,400 $935,210 $958,591 $982,555 REPLACEMENT RESERVE Beginning Balance $570,804 $769,163 $977,139 $1,195,110 $467,379 $692.165 $927,986 $1,175,214 $1,434,316 $558,303 $825,350 Interact Earnings 1.500% $8,562 $11,537 $14,657 $17,927 $7,011 $10,383 $13,920 $17,628 $21,515 $4375 $12,380 Contributions 5189,7% $196,439 $203,314 $210,430 $217,795 $225,418 $233,308 5241,474 S249,925 $258,673 $267,726 vAthdraa+als so $0 ($956,088) $0 $0 $0 ($1,147,453) $0 $0 Ending Balance $769,163 $977,139 $1,195,110 $467,379 $692,155 $927,986 $1,175,214 $1,434,316 $558,303 6825,350 $1,10S,4S6 Cky siTuyin Alfunk"thy Cap aid Lwsapd Fmwckq Analysis Page G2 Tabk C-13 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS OPERATING AND REPLACEMENT RESERVE FUND BALANCES 4% TAX CREDITS, TAX-EXEMPT BONDS 23 24 25 26 27 29 29 30 OPERATING RESERVE Beginning Balance $1,020,963 $1,086,278 $1,051,822 $1,067,599 $1,003,613 $1,166,568 $1,184,066 $1,201,827 Interest Earnings 1.500% $15,314 $15,544 $15,777 $16,014 $76,254 $17,499 $17,761 $18,027 Contributions 3.000% $0 $0 $0 SO 566,700 $0 $0 $0 Withdrawals $0 $0 50 $0 .$a So $0 So Ending 8al2noa $1,036,278 $1,051,822 $1,067,599 $1,083,613 $1,166,568 $1,184,066 $1,201,827 $1,219,855 Max. Balance • t Mos. 0udg: 6 Mos, $1,007,119 $1,032,297 $1,58,105 $1,084,557 $1,111,671 $1,139,463 $1,167,950 $1,197,148 REPLACEMENT RESERVE Beginning Balance $1,105,456 $1,399,134 $1,706,916 5663,820 $980,999 $1313,668 5102,498 $2,028,057 Interest Earnings 1500% $16,582 $20,987 $25,604 $9,957 $14,715 $19,705 $24,937 $30,421 Contributions $277,097 $286,795 $296,833 $307,222 $317,975 $329,104 $340,622 $352,544 Withdrawals $0 ($1,365,533) $0 $0 $0 $0 ($1,622,446) Ending Balance $1,399,134 $1,706,916 $663,020 $900,999 $1,313,668 $1,662,498 $2,028,057 $788,576 City o(Tunln Atronhbaxy cap and tamrated Finarckg Analysk Page C-3 Table G14 RENiAI PROTOTYPE: STAIXED FLAT APARTMENtS MHP LOAN C1MiT5 2007 Unila ~ Uirts 1 MHP Loan Card Per UnK Mnidmur. h1ttT Eoan Unh Size Y of UnKa 3D% AMi 60% AMI 30% AMl 60'16 AMI 30% AMl 6096 AMt Total 1 Bedroom 73 Z2 51 51]0,686 545,000 52,435,092 52,295,000 54,730,092 2 Bedroom 100 30 70 5123,938 545,000 53,718,140 53,150,000 56,868,140 3 Bedroom 100 30 70 5136,182 545,000 54,085,460 53,150,000 57,235,460 4 Bedroom 50 15 35 5146,697• 545,000 52,200,455 5],575,000 53,775,455 Total 323 97 22b 512,439,]47 510.170.000 522,609,147 Cay dTvstin q/e C,22 kit'adahility Gay and Levera6ad Financing Ansiysb Table C-13 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS RENTAL INCOME AND OPERATING COSTS MHP PROGRAM, TAX-EXEMPT 80NDS, 4% TAX CREDITS ASSUMPTIONS 2007 Median Household Inmme, Family of Four 578,700 Affordable Housing Cost Asa % of Income 30% No. o! Bedrooms Totals 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Household Size (1) 1.5 Persons 3.0 Persons 4.0 Persons 5.0 Persons Household Size Income Adjust. Factor 75°,6 90% 100% 108% Utility Allowance (2) 554 568 $98 5709 No. of Units 323 73 100 100 50 Total Bedrooms 773 73 200 300 200 AFFORDABLE RENTS BY INCOME LEVEL MHP B DO%) Affordable Morst)tly Housing Cost 5456 5547 f632 5705 Less: Monthly Utli1ty Allowance (S54) (568) (S98) (5109) Affordable Monthly Rent 5402 5479 5534 5596 6096 of Median Annual Gross Income 535,415 542,498 547,220 S50,998 Affordable Monthly Housing Cast 5885 57,062 51;181 51,275 Less: Monthly USIity Allowance (S54) (S68) (S98) (5109} Affordable Monthly Rent 5831 S994 51,083 St,t 66 NET OPERATING INCOME Monthly Affordability LeveUNo. of Bedrooms Units Rent Gross Income MHP B (30%) t Bedroom 22 5402 $8,844 30.096 of Units 2 Bedroom 30 5479 514,370 3 Bedroom 30 5534 516,020 4 Bedroom 15 5596 58,940 60% of Median 70.0%of Units Average Affordability Totals Managers Unit GROSS RENTAL INCOME Less: Vacancies (3) Mlscel. Income GROSS ANNUAL INCOME LE55: OPERATING EXPENSES Less: Operating Reserves Less: Replacement Reserves (4) NE70PERATING INCOME 1 Bedroom 57 2 Bedroom 70 3 Bedroom 70 4 Bedroom 35 50.99% 323 2 • 5.0% 5100 Per Unit 5831 542,381 6994 569,s8o 51,083 f75,810 51,166 540,810 5276,755 5300/uniVmo. 53,600 Per Unit 3.0% of Oper. Budget 0.6% of Construction Costs (t> Assumes the lesser of TUC occupancy standard (1.5 persons per bedroom) and California Health and Safety occupancy standard (one person per bedroom plus one). (2) Source: County of Orange Housing and Community Services, effective October 1, 2006. Assumes tenant pays all electric heating, cooking, and water heating and basic electricity; landlord pays water and trash. (3) TUC requires a 5% minimum vacancy rate unless waived based on vacancy data in the market area. (4> MHP requires replacement reserves equal to 0.6% construction costs unless otherwise approved. Gity of Tustin Affordability Gap and Leveraged FinancingArelysts 53,321,060 15166,053) S32,300 53,187,307 (51,170,000) (535,100) (5375,012) 51;611,195 Page C-1 Table C-t6 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS DEVELOPMENT COSTS MHP PROGRAM, TAX-EXEMPT BONDS, 496 TAX CREDITS Acres (Units Plus Parking) 13.00 No. of Units 325 Total Living Area 319,150 Community Room 0 Total Net Square Feet, Residential Units 319,150 Other Building Area 0 Total Net Square feet 319,150 Total Gross Square Feet 319,150 %Residential 100.00% Tax Credit Elig. Basis Total (100% Resid.} LAND ACQUISITION S43 Per Sibe SF 524,350,040 50 51TE WORK 520 Per Site 5F $11,325,600 $11,325,600. UNR CONSTRUCTION HARD COSTS (1) 5194 Ppr SF 561,835,313 561,835,313 CONTINGENCY 5% of Hard Costs 53,658,046 S3,b58,046 ARCHJENG/CONSTR. SUPERVISION 7% of Hard Costs 55,960,072 55,960,072 LOCAL IMPACT AND PROCESSING FEES 526.05 Per SF 58,315,308 58.315,308 ALTA SURVEY 53,000 53,000 ENVIRONMENTAL PHASE 1 57,500 57,500 SOILSTESTING $10,000 $10,000 CONSTRUCTION BOND FEESlCOSTS 1.00% Plus 5100,000 5771,610 5771,610 CONSTRUCTION/LEASE-UP INTEREST 5.50°k 15 Months .53,139,778 53,139,778 REAL ESTATE TAXES AND INSURANCE 1.6096 of Hard Costs 51,362,302 51,362,302 TITLE AND CLOSING 515,000 515,000 . APPRAISAL FEES 510,000 510,000 REAL ESTATE LEGAL 530,000 512,000 ORGANIZATIONAL LEGAL 530,000 SO MARKET STUDY 525,000 525,000 POST-CONSTRUCTION AU DIT 515,000 50 MARKETING/LEASE-UPSTART UP 5100,000 50 OPERATING RESERVE 3 Months Oper 5292,500 SO SOFT COST CONTINGENCY 2.00% ~ 5110,384 5110,384 TOTAL DEVELOPMENT COST 5121,366,452_ _ f 96,560,912 DEVELOPER FEE (2) 15.00% of Dev: Costs $1,940,000 51,200,000 BOND/TAX CREDIT ADVISOR 530,000 SO TAX CREDIT APPLICATION FEE 52,000 50 TCAC ALLOCATION FEE 4.00% of Ann. Credit 5183,008 SO SYNDICATION LEGAL $30,000 SO TOTAL USES $123,551,461 $97,760,912 PER UNIT $380,158 $300,803 PER SF ~ 5387.13 (1) Estimated hard costs, assuming prevailing wages, at a 25% increase in hard costs over non-prevail[ng 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 flow. City of Tustin Affordability Gap and Leveraged FinancingMalysis Page C-1 Table C-i 7 RENTAL PROTOTYPE: STACKED fiATAPARTMENTS FINANCING ASSUMPTIONS MHP PROGRAM, TAX-EXEMPT BONDS, 496 TAX C&EDITS TAX CREDIT EQUITY Total Elig~le Basis Less: Non-Qualified Non-Recourse Financing less: Eligible Amount Voluntarily Excluded Unadjusted Eligible Basis Adjusted Eligible Basis (High Cost Area Adjust) Qualified Basis Tax Crodit Rate Mnual Allow Credits Tax Credit Pricing (Equity Raised Per Tax Credit Dollar) Federal f=ederal Tax Cradle Equity (99°6) ' CONSTRUCTION BOND AMOUNT Constr. Loan Amt. Interest Rate Constr. Bond Issuance CostslFees Average Loan Balance-Construction Construction Period Cease Up Period Construction Loan Intent--Construdion Constructfon Loan Interest-Lease-1tp Total interest Cost Bond issuance Costs PERMANENT BOND AMOUNT Net Operating Income Debt Coverage Ratio Debt Service MortgageTerm Interest Rate Max. Mortgage Amount {DCR} Gty of Turtin ANordability Gap and Levvaged FinancingAnaiysis 0°/a 130 100% 55% of Agg. Basis $100,OOD Pius $97, 760,912 50 SO S97,760,912 5727,089,186 5727,089,186 3.50% $4,575,211 51.05 547,559,315 567,161,024 5.50°i6 ].0096 60.0096 12 Months 3 Months 52,216,314 5923,464 43,139,778 5771,610 51,611,195 1.25 51,288,960 30 years 7.0096 516,145,037 Page C-2i Table C-18 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BAS1S LIMITS MHP PROGRAM, TAX-EXEMPT BONDS, 49'o TAX CREDITS Orange Co. 4%Threshold Basis Limits, 2008 TCAC Basis Total Unit Size # of Units Limits Basis 1 Bedroom 73 $179,727 $13,120,071 2 Bedroom 100 $216,800 $21,680,000 3 Bedroom 100 $277,504 $27,750,400 4 Bedroom 50 $309,157 $15,457,850 2 Bedroom Mgr's Unit 2 $216,800 $433,600 Total Threshold Basis $78,441,921 Threshold Basis Boosts Max allowed Plus: Prevailing Wage Boost 20°~ 20% $15,688,384 Plus: Subterranean Parking Soost 7% 0% $0 Plus: Day Care Center Boost 2% 0% $0 Plus: Special Needs Boost 2% ~ 0% $0 Plus: Elevator Soost 10°~ 0% $0 Subtotal Boost (1) 39% Plus: Energy Effcienry Basis Boost 4% 4% $3,137,677 Plus: Distributive Energy Boost 5% 0°~ $0 Plus: Seismic Upgrade Soost 15% 0% $0 Plus: Development Impact Fees $8,315,308 Total Adjusted Threshold Basis $105,583,290 Total Unadjusted Eligible Basis $97,760,912. Requested Eligible Basis $97.760.912 (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 lade cls R84L1lFROTOMMSLV3 DFLATAFARTM7M5 or67AnNGsuoCEIAND CASH FLOW MlV ROG WA w/TAX OMMIT NODS W-MA710M *am boomb2olf1 2507E O"Mm c- 35071 PYtn"*MO res 2.79% ' 1 2 3 4 1 6 7 i 9 19 It 12 NNW aw n GMIfrcue11e1R4M $1.3216769 0.406067 33,464189 0.574418. 0,66401 $.1,757,09 $3"Al1 $3m?Aw s4.o4438! 24,147.549 $4,241,231 34.!!7,319 t -"*POO- $32,300 $13,109 S33,106 $33,105 531,10E 533.106 533.109 $35,101 $33.101 $33,106 $33,109 $32,101 141m"Alkwmae SAM .116660331 01742041 (5174,449) $179,011 $10.291) $187,674 $192,571► NIWAS) ONZ,311J) $2Or,377) - 1812,562► ($217,976) MdAervW kmm $3.197,30r 0264990 $3,34Y 137 51,430.705 0,914646 3L6MMM $3.691.919 53,797.419 $3,477,177 3I,973,279 $46771,783 Kin.7so O5iosli¢Cob 3300 A47ne (I1,170AM 151.21495.4 01,254138) (S1.297.2001 GIA42AM $1.3812931 $1,467,229) $1ASIAO $1,540.667) ISI S%SM $1.650.40) $1.708,165) 1421Op"aftmca 52,017,397 PADA- S2494A3 52,133,509 $2,174081 $2,213.115 $425VU 52,294,853 $7.334511 52,37069 32.421,181 $2,464A" 11pkosnn<ntRslane S1,142 A.1 r. 15171.0121 6383,9877 6117.437) ($411,347) 0423,745) SOCA40 045600 04"1) 64KSSD 0505,6511 1$523,3191 5541.660 Opeoftan 3.09% $35,104 0141267 037AM 038,9161 04(62767 1541.6967 M%1471 $44,667► G ,Ii 2201 017.9311 440.312) $0 CASH FLOW MR oaf MY $IA,11,lts $1,635.7/4 $1,659,466 S1Anj42 51.707,020 51,730..42 $1.754,501 51.779.165 51.901.739 $1.824200 $1,867,322 51,922,919 DekSwvk*-fkgTrWDeed CII.M984 191,267,964 (61,288,960) $1,2W,9601 $1,798,91) $1,211,964 $1,2M,96q 01JK26M 01,218,96) 1$1.280,964 $1.281,964 151",m Debs 0, p Roo 1.23 1.17 129 131 1.31 1.341.36 138 I A0 1.42 1.43 I A9 NR CASH ROW $332,M 334VM $7745061294.20 1416.460 s44I,122 14.1'1,344 s468,205 1215,779 SSSi,24o $559.562 56336959 DeeNoprAnOM9trm 920.000 420AM 42(4334 $21,115) $21,86) 022,29D $22,/03) 023,555) 624,1671 6268M1 325,3311 0242331 ($24960 NET 04911 FLOW AFM )ARL b= FEE 007,235 332420► $344391 SMA06 1395,769 $418,916 5442,0/8 mAn 54171671 55101709 $533329 $4W.MS Ply.nt b Defeled D Mkpn=e Fu $302,2352 6321.209 ($349,391) $21%670 $0 s0 so 67 10 $e so $0 NET CASH FLOW MRM DERRWD DEM FE1 so 10 SD 1152,916 094768 $414816 s442.00Y 5406722 $467,931 $510M $533,129 SWAM Ms*mhmnmll}MM.MWob" Mew $24650 $21.114 smAn 224318 $22,905 $23,515 $24,112 $24.948 s2s" $24233 WON DeRm4 DerdaprleM Fee Exha f 5694268 $5446761 $219,670 s0 $0 s0 s0 $D so SO s0 s0 OylLele ModAeeq'G+Pee4i--sf Fi A.** r+R Gs Ta kG19 aFWPAE 11R0101 M SFACffO RAT APART5413415 OPOLVIINC 1000FTAND CASH FLOW MHP PROGRAM W/ UK Fll AFf TOMOS ESCAIATM RATES+ V=nWWaIk 2.sm opwoftcom 3A 6 P. tm it 1p MO. Fee 245'9 13 a IS 16 17 Is 14 28 31 22 23 24 BMW tw Coat FEbw" Reno %466,456 745711.1111 14A82XI SOMAN 54.934132 75,053,3116 S5,179,720 *.1,!0!,213 SaA41,9M $3,577,992 S5,717Al2 SSA60,3711 $33,101 $Alan $33.101 573.100 $33.100 137,7011 733.1.1 S33,1016 133.011 133.100 133.101 $33,100 VaCWKyyi NGWSrXe 100% (723,3231 02211904 ($234629) .1210,/90 624410n 0352AM 020^0 036$,961) 0272,097) ($274900) 1121!.6721 ($24).0191 Net Rental Inane 14,274241 74302119 14.491,010 SOMAN 14,714733 $4,1133.024 74.951110 $40F4666 $5.103.954 7!,332,200 S5.46407 f6A,04467 OpmAl"Caft S300Aimm 01,767,950 61A29A2111 01,093,1173) ISIMISM CS2,02d760 $2,009,770 0,173,767) 0%244321) 02.326A91 ($2,409035) ($2.4911,11641 02.5111.1541 Nl4opwkgleoewe 72.7011,291 12d52A01 S2.S11,177 72443,340 S2,6V,9W 72,734,033 72,711RS79 112,127,331 SkW4,9M 52,922,665 S2.97%109 73,019.313 Repbe4meatnow" $1,142A,yr. 0164629 051142'0 (W0.59) a62I,941 0645,329! 0660,846) GWIS1) $713.271) 17730,239 157649741 079%010 $1111A99 Opar"Oeww 3110x 015SAI 9 $0 70 6811.11051 s0 i0 065,19$ 0 30 $0 07461110 s0 GSH HAM FOR D OTSIM 51,1101,628 $IXL245 SH,IaMA32 11,961.961 i2"AW S2A6%M SIA2601 72,114,263 SXIX666 *2.150.592 52.104177 72,20%0111 Debt Scwke-HwlVustu ad .11,26x9684 01,26.14684 51,2p%" a1,2E4wa .11,21149110) a1.4M.960 .11,20,960) GJAM O 01,2611,90 01.210.9601 ($1.2114960 .11.7711.96.1 Da6tCemWftb IAP 133 1sS 1.72 139 IAO 1.57 1464 1.66 IA? 1.63 1.71 MT CASH FLOW 7610$66 - $613,2115 $707.662 5673001 srs% 1/ 7779.247 $737,271 024203 SM7,7% $1109,632 S"6217 *911,1156 OetelopaAWKWO.Fee $24000 ($279461 412a,45) M2401 030040 03DAM (M.7131 a3L391) 633.054 $34A051 $35.359 036.3271 017,320 NETCUHROWAf$ERMMhiMM 5577972 7664,127 *674422 $642.07 $724AIO S747,S211 $70109 S741A75 7613,297 $934277 $779,090 SWAT S32 HtgatwN4oDdmv4dO11rdoplemllfae 30 $0 10 s0 0 70 s0 $0 $0 SO s0 s0 NHrOMFLOWAMNDB MIM KRE 797T972 7664,627 1671.422 SWIM $724610 S74WI $704671 137919/6 5613,297 Sa34D7 1779966 31174332 A4aaMl1111t 0 - hIOL 011 Ibcsts" SnASG $21,457 X9,240 13%044 734670 $31,719 732,791 $13,40 $34/09 $33.35S $34327 07.326 Dekaed Oe elopsm RN Iabm* s0 s0 s0 s0 s0 SO s0 0 s0 50 50 SO Aawacsa eor urerC".W te.«tra R..aex44aar k 4 IAbC-19 MINIM ►60T0$TF6 STACKED Fut AFARThUNM OIsMM 11MM AND CAS31 ROW Atli► MOGRAAIwfwt Vows 1OFDS ESDlut10N RA3s locaia4km 330% CpeamgCsw 3.50% Pammdlip Met. Flet 175% 2S 76 77 21 29 30 moral Renaaama Gat Foomol Reit 14006.0A 54137,060 543149". 33.469761 1$1670Nm 16,771" leadrltoo- mice 13110/ 171,14 333,109 $33,109 $31,14 VraKyAllowetos Sim 4300,3W "707.9331 151145" 6233,410 8331,5?4 1f23Ia13) Net Row am me 55,739,61 $3,47314 $M"4 164171,430 $6.337.42 S6,419,59F OpmftCUb $300 hb%=. 07P1,4" jpZ? "7) 02A61,7721 33%361,944 ISiJOL%M) 03,177697) Ndopspara$Isasws $3064156 3],117,317 13.!33,773 SIM44V S3.26MM 6%316,610 mglamm"m "m $1.142 AMIL 047,143) Af76,M 007.40 0m",M) 0977113) (11,006,139) Gpeaft Ran! 3.00% !0 1112,910 i0 $0 ("1,961) $0 CASH ROW FIDI DW MM 12,!21,014 $71'37,576 $2,754295 $2,2"4% $%24,379 $1.110,501 d6l4eriQ-FirbwtDecd CSIAM960) 01,21NI160 461,1941160► 01a80N6D 01,164,960 157.7/6,964 Dal* CwArIV Raft 7." KJ7 173 1.77 IM 1.70 NETCUKROW $!32.056 $14,616 19714333 1007295 013,6" SI.021.541 osagmAortat$LFba $70.000 036433) 46M.47) 0444") 041.6W1 042,7+9) CMM40 NET CASH FLOW AFRI MIL NCL M $690,708 312!,74 ""An 1914691 1174671 S977AI? npa,- bDaFaeaO DallOpwlM Iam 10 4 11) 10 4 4 NET GSH FLOW AFF@ DFf9RE0 MV. M $436708 5121,201 $929,647 $646.41 1174671 1977x6/7 IN "mmFlpoval pAte.farOffib r) 134353 139.407 M"I $41,44 14,749 34$.!94 odetd D.M1.lm.r r« mt I, 'I 1n $0 51 f0 $o $0 aira111ars Afw&WIW CW WA taagd maaK Pw C•70 1Sbk azo RR14TAL /ROTO VM STAOCFD FLAT A►ARTAENTS Ol8WOOGAND RtMACFABFNT RRSeM FUND BAIANCE9 MHF FROGRAM W/ TAX EXEM7'T BONDS 7 B 9 10 11 1 2 3 4 5 6 Ol6RATTNG M95ERVE %ginnMR Balance 5292,500 $331,955 5373,296 S414A" $461,659 $9000 SSS/,iS2 $609,702 5663,504 $719,677 $778,310 6eaegEwMnpp 1.500!6 54,388 $4.980 55,599 $37,600 56,247 538,916 54925 SW79 57,633 $41,688 $0,373 $43,147 $9146 $44,657 59.953 $46,220 SM795 $47,838 $11,675 349,512 Cor"budom 3.000X► 535,100 SO P6.329 f0 $0 $0 SO $O $0 50 $0 SO $0 Whhdiawak E63kM lWame $331,988 $373,2% $416,495 $461,659 $508,862 $556,182 5609,702 $663,504 $719,677 $778,310 $939,497 Max, Balance e 0 Mos. Ou4. 6 MOF, $SBS,OOD 5605.475 $624667 56481600 56711301 56941796 $719,114 $744,283 $770,333 5797,295 $025,200 RERACEMEWOORVE %Ong" Belmee $0 $371,012 5747,989 51,129,815 $1,517,774 $T.Ml,SS2 (781,995 $1,164,737 $1 553 220 $1,947,530 52,347,755 ylWestEWkW 1.50016 SO $5,565 $11,214 $16,947 $371,072 $22,767 $371,012 $28,673 $371;011 $11,730 $371.012 $17,471 $371,012 $23,298 $371,012 $29,213 $371,012 $35,216 $371,072 Gpftibupdy $371412 SO $371,012 $0 5371,012 So $B $0 (S1,S29,242) $0 $0 $0 SO $0 W WWra"s Wag Balance $371,012 $747,Sa9 $1.129,815 $1,517,774 $1,911,552 5781,995 $1,164737 51,553,220 $1,947,530 52,347,755 $2,753,963 Cwt A/o,d�+i,1f 6y ani 1a,�1 fl MJrdt si�flKe C•70 14bb C-20 UNTA[ PROFOFTP[s STAOM FLATA1MItTA*N OP[41AT114C AND BEILAICOANT RESOW R)ND BALANCES MHP PROGRAM W/TAX MMFT BONDS OPltA71NG R[3ElYF 12 13 14 15 16 17 18 19 20 21 22 Beginning Baume S839AW $852,088 59171909 $901,677 $945,6.53 S1.018,642 $1,013,922 51,049,431 $1,130,370 $1,147,325 $1,164,535 Iumm FWW py 1.500% $12,592 $12,781 $13,769 $13,975 514,185 $15,280 $15.509 915,741 $16.956 $t7,210 $17,468 C *ibuions 3.000% $D $5309 So $0 $58,805 $0 5o 565.198 $0 $0 $D WBhdrawds $D SO $0 SD 50 $0 $D $0 $0 $0 $0 En*gBalawe $832,089 $917,909 $931,677 5945,M $1A18,642 $1,033,922 $1,049,131 $1,134370 $1,147,325 $1,164,533 51,182,003 Maus Balance 41 r Mos. Budge 6 AAoL $8S4,D82 5883,975 5914,914 $946.936 $980.079 $1,014,382 $1,0",88.5 11,084,631 $1,124,663 $1,164,026 51,204,767 RERACMUW RESIM farm ra8 Ballance S2,753.SU $963,118 $I-MB,577 57,739,817 $2,136,9MG 52,539,9!2 S2,94%104 $IAWA69 $1,391,157 $1,783.036 $2.11AM MprwBrnbw 1.500% $41,310 514,447 $201229 SHAW $32AS4 538,100 $".237 SIS.076 $20.867 $16,746 $32,712 corm rebores 5371,012 5371Al2 $371,011 $371,012 5371.012 $371,012 $371.012 5371.012 $371,012 $371,012 5371,012 %y4hd= als 5212W,1871 SO SO 50 $o $0 K2.359 M $0 m $0 $0 ErwlmSolanft $963.118 $1,31077 $1,739.817 $2,136,926 $2,S39,992 $2,949,104 $1A0S.069 11,391,157 $1,783,036 52,180,794 $2,584,518 Wd1�ir AlmdiiarGgaad Lnm lirreigAndWr P+P c-31 OWe Cd0 RENTAL PROTOTYPE. STALM FLAT APARTMEN OPERATING AND MIAC'EAIENT RESERVE FUND BALANCE$ MFR PROGRAM W/TAX EXEMPT BONDS 23 24 25 26 27 xe 29 30 OPERATING RESERVE BgomMgBMance $1,182.003 $1,274,550 $1,293,660 51,313,073 S1,415,719 $1.436,955 $1,458„309 $1,572,3s5 ... . fAmk 11 1.500% $17,730 $19,118 $19,405 $19,696 $21,236 $21,554 121,670 $23,585 Convibo*kmu 3.0W% 574,016 SO so $82,950 Sa i0 191.960 so V,4"xkawws 50 $0 $0 W $0 $0 50 SO Endkq Salaoce $1,274,550 51,293,668 $1,313,073 $1,415,719 $1,436,955 S1,458,SW 31,372.355 ST,595,940 Max, Balance 0 It M01. Buda: 6 MOs. $1.246,934 $1,290.577 $1,335.747 $1,302,498 $1,430.886 91,460,967 $1,592,801 $1,586,449 REPRACIl%49 T RESERVE Be111anbs ft"We $2,584,518 $2,994297 $1.014,786 $1,401,019 $1,793046 $2,19.954 S2,P94A890 53,004.764 Inlmm EwnkW 1.500% $36„768 $44,914 $15,222 $21.015 S26JI96 532,864 534,922 $45.071 Ooodbu0arc $371,012 5371012 $371,012 $371,012 $371,012 3371,012 $371,012 $371,012 VVidldrawls Ending Balance $0 $2.994,297 Lf2,39j0M $1,014,786 .w $1,401,019 6n $1,793,046 $0 $2,19.954 $0 $2,594,830 $0 53,004,764 50 $3,420,848 cwyafxma AlmoM Rlp Gap wW Lw—rd � A,dr�i PAP G37 APPENDIX S REFERENCES CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT 2008 REFERENCES A. Documents 8. 1990 Census Report. U.S. Department of Commerce, Bureau of the Census. 9. 2000 Census Report. U.S. Department of Commerce, Bureau of the Census. 10. Comprehensive Housing Affordability Strategy for Fiscal Years 2007-2008 to 2017-2018, David Paul Rosen & Associates (DRA). 11. Marine Corps Air Station (MCAS) Tustin Specific Plan/Reuse Plan, Adopted February 2003, Amendments through June 2007. 12. California State Department of Finance, 2007. 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 Needs 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) 573-3107 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 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) 777-4653 12. Karen Roper, Homeless Prevention Coordinator Orange County Housing and Community Services Agency (HCS) (714)480-2841 CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT 2008 APPENDIX C MAJOR EMPLOYERS IN TUSTIN CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT 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 Power Supplies 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) 838-4444 205 Glass & Glazing Work 14321 M ford Rd -Tustin 92780 Costco 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) 669-5880 200 Hospital 14662 New ort Ave -Tustin, 92780 Vitatech International, Inc. - (714) 832-9700 178 Pharmaceutical 2832 Dow Ave -Tustin 92780 Pre arations 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) 730-7301 - 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 MEMORANDUM HOUSING ELEMENT 2008 APPENDIX D ORANGE COUNTY BUSINESS COUNCIL 200'7 WORKFORCE HOUSING SCORECARD CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT 2008 Exhibit B to City Council Resolution No. 08-43 Minor Text Amendment to the Tustin General Plan California. In 1942, the waz brought a new kind of growth to Tustin when the U.S. Navy built its Lighter-Than-Air Base on neazby 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 k99~ 2007 population of over 72,500~?A9A. Growth is expected to continue F tt,,.,.;,,,, +t,° ,.t„~~,r° ~~ r~r n e -r„~+;,, .,..a .+~ 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 j oint effort between the City of Tustin Planning Department and the County of Orange Advanced Planning Division. At that time, the Tustin General Plan azea 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 eazly 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 ~-k99-~ on January 16, 2001, to address changes associated with -~' •^^~~^ ~ ~-the reuse of MCAS Tustin2 which closed ~ ~+~^~~°+~~-~ °~~+° ^'^~,,,.° in July 1999. PURPOSE OF THE GENERAL PLAN CITY OF TUSTIN GENERAL PLAN INTRODUCTION JUNE 17ccnnr,--~~~, 20083 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 n S ace Land Use Housing Circulati~ • . Conservation/ • • S Recreation«~ Safety • Noise • Growth • Management~Z~ (1) The Recreation component of this Element is optional. (2) While Growth Management isnot 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 prepazation 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/ElR) was prepazed for the reuse of MCAS Tustin which also addressed the associated 2001 amendment of the Tustin General Plan. The prepazation 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 17FE~€11-2~, 2008 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 azea 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 aze 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 JCJNE 17FE~~, 20083 ° 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 tion 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 9-19-05 Land Use Resolution OS-101 Library OS-001 4-18-OS Circulation Resolution 05-62 El Camino Real Reclass. 04-001 2-22-05 All, except Resolution 05-43 Columbus Grove Reorg. Housing and Growth Mana 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 TUSTIN INTRODUCTION GENERAL PLAN 1 I JUNE 17fi~°D1~-~.D~z, 20083 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 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) 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 Plan The South Coast AQMP mandates a variety of measures to reduce traffic congestion and improve sirquality, ~~'°-"~° ~'-° °°~••'°•' -- ~~~ ~' .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 NSTIN LAND USE ELEMENT GENERAL PLAN 2 JUNE l~rtao~"."~~.20083 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 ofthe 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 #lE~ T..~r:«' AA!` A C CI T.~,.,.' John Wayne Airport, lvleadevvlad~perE, AFRC Los Alamitos, and Fullerton Airport. tt a t,...t.o ~~r A c T....e:.. De..~elC.~,._C.~ Dl..« 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. RELATIONSHIP TO OTHER GENERAL PLAN ELEMENTS The Land Use Element is the key element of any General Plan because it has the broadest scope ofthe mandated elements required in a General Plan. The Element must be prepared with the full knowledge and consideration ofthe 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/ Recreation 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 internelated 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 occw, coupled with the Growth Management Element which establishes policies and procedures to ensure development occurs at a rate CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 4 JUNE 17I<EB~, 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. ' ° ~"""...:"" '''~ c,"°..... ~_° ""`' "-~ =en-~;r.-tThe MCAS Tustin Specific Plan/Reuse Plan. twill continue to euide future development on approximately 1,533 acres in the City of Tustin (Tustin Leeacv). ° 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 6 ~(E ~ ~rcaoi1z~Tw ° v v 20083 ° 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-Waal 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 infill development is compatible and complimentary to this existing community. FUTURE DEVELOPMENT CHARACTER OF FORMER MCAS TUSTIN TU( STIN i Fraw~ ° 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 jobs/housing balance. ° There is an opportunity to continue to create immediate interim uses and reuse of many existing buildings and facilities at the site then-eles~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 l Q DUNE 17FEBI~H,4d~~, 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 11 1lJNE 17rco°i,~.i~°v-r, 200$3 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 limplement 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 ELEMENT GENERAL PLAN 12 J NE 17ccnnr,~ r~.~wov ~ Zug.; 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 5.1: 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~-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 of existing 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 5.5: 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. CITY OF TUSTIN LAND USE ELEA~4'NT GENERAL PLAN 17 1 17~~, 20083 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 Leeacv (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 WITH 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. CTfY OF TUSTIId LAND USE ELEMENT GENERAL PLAN 2~ f ccnnir~T~ov~ 20083 East Tustin iv+ll has provided the majority of new residential development within the planning area. The planned community approach for development of the area san achieved a balance between urban use of land and maintenance of the natural environment. GOAL 9: Continue to 1zErovide 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-tolenuLt 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 17L'cnn~-~.~~-" o v ~ 20083 Policy 11.5: Upgrade the edge conditions between industriaU business park uses and residential development through private development standards and onsite landscaping of industriaUbusiness 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 inftil 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. I FUTURE DEVELOPMENT CHARACTER OF TUSTIN LEGACY (FORMER MCAS err reTillll GOAL 13: Continue to imalement Develop the a Specific Plan/Reuse Plan for MCAS Tustin which maximizes the appeal of the site 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 ELEMENT GENERAL PLAN 25 JUNE 17ccn°~~"°"'.20083 Policy 13Z: 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: £aEe~age-a Implement the balanced reuse plan that responds to community needs but which iviN 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 pattems, 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 developmenrt. 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 CTfY OF TUSTIN LAND USE ELEMENT GENERAL, PLAN 26 NNE 17c cn ow n v ~~ 20083 TABLE LU-1 LAND USE RELATED GOALS AND POLICIES BY ELEMENT RELATED GOALS AND POLICIES BY ELEMENT Lend Ux Issm Land Ux Caoserndco/ Public Gruwtb Area Hous' Circulation S Saf Noix Bebmced 1.9, 3.1 L I0, 5.2, 2.12, 8.1 1, 1.1, 2.5, 2.6, Devebpment 3.6 14.12, 2.7, 2.8, 4.1 14.13 l5.2 Compefibld 1.11, 4.4, 1.3, 1.4, 7.3, 1.6, 3.3, 1.2, 1.9, Compkmmtery 4.3, 5.1, 7.4, 8.1, 8.3, 3.9, 4.3, 2.3, 2.4, Development 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 RevitaGzedon of 1.2, 1.3, 12.1 9.1 Olds 5.1, Dove 5.3 5.3 Improved City- 1.18 1.2, 1.9, 1.2, 1.3, 3.3, 5.2, 6.3 2.6 wide Urben 1.14, 6.8 7.1, Design 8.6, 11.1, 11.2, 12.3 14.1 17.2 Economic 2.3 Expeosion/ Divasificetioa Public Fecilitiea~ 1.16, 6.9 2.10, 5.6, 14.5, 3.2, 3.3 3.1, 3.2 Services 14.6, 16.10, Coordinetian 18.4 East Tustin 7.6, 8.13, 8.17, Cberecter 14.14, 14.13, IS.I Old TowdFurt Street Cbaracter PaciSc Cew Esat Cherecter Nartb Tustin Nnd wrea Tustin Leeaev 16.8 (Former MCAS Tmdn~ Cherecoc CTfY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 2g 1UNE 171`E8R~3ARY-Z, 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 I S 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, acid-a ^~~'~'°^~''°°~°~°'~°~areincluded. Aplannedcommunitydesignation,which includes residential, commercial business, and public institutional components, is also provided. Additionally, a separate specific plan designation is provided for the l reuse of MCAS Tustin. Major transportation facilities are included in a single transportation category. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 29 lUNE17°con~~-~ovo 20083 TABLE LU-2 DEVELOPMENT INTENSITY/DENSITY STANDARDS MAJOR MAXIMUM EFFECTIVE LAND USE DESIGNATION AND SUMMARY DESCRIPTION LAND USE DWELLING DWELLING GROUPINGS UNITS PER UNiT3 PER ACRE OR ACRE OR MAXIMUM AVERAGE FLOOR AREA FLOOR AREA RATIO (a) RATIO (b) RESIDENTAU_ 1-7 5.81 LOW DENSITY RESIDENTIAL -Detached aln0le famiy dweNkgs which allows up b 7 dweNkfp unNs per net aae with m sveraps o1 3.25 persons per dwelNnp unit 8.15 15.00 MEDIUM DENSITY RESIDENTIAL- MuNi-famNy dwellN~ps indudinp duplexes, condonYnlums, tawnhomes, and aparlmenb. Allows up b 15 dwelNnp uNls per net acro with m averepe of 2.73 persom per dwsMlrp urtN. 15-25 21.53 HIGH DENSITY RESIDENTIAL - Multl family dweNinOs IrxdudYp duplexes, condominiums, bwnhanes, and apaMisrds. Allows up b 25 dwelNny unHs pet net aae wilh m avereps of 2.15 persons Per dwepkp urdl. 1-10 8.31 MOBILE HOME PARK - Mobib Home Park devebprnent whidr slows up b 10 dweNinp units per sae with an averope of 2.15 persons per dwalYrp urrk. COMMERCIAL 0.5:1 0.4:1 COMMUNITY COMMERCIAL - Indudss retaN, professional oftbe, and seMce-oriented business adivitles aeMnp a comnwnfly-wide area and populeUm. 1.0:1 0.5:1 OLD TOWN COMMERCALL - Indudea rotail, profesabnd ortks, end seMawAmted business adivitles seMrp Old Twat and aurtoundinp arose. (May also irxiude high densty roaldsMieq. 0.8:1 0.4:1 PROFESSIONAL - PdrneAly akpk tenerrN or multl-tsneM ofllosa that Inducts legal and medical services, tinandal Insthutlorn, axparote and yovemmsnt olNces, and odisr supporthp uses. INDUSTRIAL. 0.8:1 0.5:1 INDUSTRIAL - A mix of kMusbial and oflke uses such as whobsals buskresses, Nyht manuiadurkrp, storope, dlsUibuNon and sales, roasarch and devebprtisM taboratorlss, end service corttmsrcfel businsu. PUBLIC 0.8:1 0.2:1 PUBLtCANSTITUTIONAL - PubNc and pdvrts uses such o sdwols, dwrdrss, City Hell, flood control dremels, roservoiro, oorrununladiat, utlNy subemfbns. and roaeatloNopen spaces ardt uses ss parks, golf courses, and desipnatsd open spaces. 0.-~~4:~ O:i;~3 PLANNED (c) (c) PC RESIDENTIAL - Inductee low, medium, and high densiy COMMUNITY realdentlel deaaibed above with respective averages of 3.15, 2.45, and 2.05 persons per dweNkp unq. 1.5:1 0.4:1 PC COMMERCIAL/BUSINESS - Mfx of oonsnerdal and office uses such as hoteUmotels, eommeroial amtero, roaeanh and devebpmeM, and professional ot)k:ss. 0.8:1 0.2:1 PC PUBLICANSTITUTIONAL - Same as Publialnatitulionalsbove. -- FormatEed CITY OF TUSTIN LAND USE ELEMENT GENERAL. PLAN 31 l1 INF. 17FEB1~HAIZ_X-2~, 20083 TABLE LU-2 DEVELOPMENT INTENSITY/DENSITY STANDARDS MAJOR MAXIMUM EFFECTIVE LAND USE DESIGNATION AND SUMMARY DESCRIPTION LAND USE DWELLING DWELLING GROUPINGS UNITS PER UNITS PER ACRE OR ACRE OR MAXIMUM AVERAGE FLOOR AREA FLOOR AREA RAT10 (s) RAT10 (b) MCAS TUSTIN (d) (d) LOW DENSITY RESIDENTUIL -Low density detached and SPECIFIC PIJW attached dwelYrps at a rrre:drrerm of 7 dweNing units per sere wfih an average of 3.25 persons per dvroYhg unit MEDIUM DENSfTY RESIDENTWIL -Medium density detached and' attadrsd dwelYngs a< a ma~dmum of 8.15 dwelYrp unit per acro with an average of 2.73 persons per dwelNng urril. MEDIUM•HIGH DENSITY RESIDENTWL -medium-hqh density dwetltrps of 18-2b dwellirp u-tNs per ara+e wtlh an average x(2.12 persons per dwelYng uNt. TRANSITIONALIEMERGENCYROUSING - Adaptlve rouse of mYilery donnbry type struduros for emergency housing, atrpb occupancy housing. or eongrege/e aro MAtlr an average o132 persons per acre. COMMERCIAL AND BUSINESS - A variety of industrial, research and development, professional office. retaY, commerdal rotreetlon , and spedalimd smployrnsm and merchandlsirp uses at an averege door area retlo of .35:1 vrlrkh can be increased under spedal dreumstenas. Residentlal uses are permitted at 18-25 dwelYrp unit per acro with ~ average of 2.12 pesons per dweginp unit. ' INSTITUTIONALIRECREATIONAL USES - A wide range of publb and quasi-pubYc uses hdudirq edueatlonal fadlitles, pubNc and private schoob, colleges, neghborfwod, conxrruMly end regional parks, ddb are anbrs, and grnrsmmenhVsodal service tadlitles. TRANSPORTATION - - TRANSPORTATION - Conabts of major and primary arterial roadways and raYroads. ,o, ..,-...,.-... -.~..-M- .~.-..., .A.-,..,,..R.~, a~~tim„ ~M ~~~„m,~.~ ~~. ar asro. (b) Assumed overall standard bust of development Sinn the development whkh hoe acarrod b dale has not reached the ma>dmum alkwved level W denNly or htens8y, fuWro development b expelled b be bas than the mardrrrum. Therefore, an eflectlve bvN of densily/tntensKy is used when projedhg bht iuturo dweNtrp unha/populatlon for rosidenlW development and /uturo square footage for rwn-rosidentlal development whero Boor area b used as a meawronrent of buildup hbnslly. (c) Mabrtxrm denstly in dwstlinp units per sore is presaibsd by Individual Planned Comrrearily doeurrrents. EI-ectlve dwelNng units per acre for tow, medium, and hqh dsnsNy residentlal b 4.85, 11.831, and 17.39, respsdhAgr. (d) Maximum and effectlve dwstlhg units per arxe and floor area retlo dasoribed h MCAS Tustln 3psdllc PIaNReuae plan (1998), sad Errata (1998). and 2008 Soedfk: Plan Amendment. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 32 JUNE 17rcon,.~eov~~ 2~ Public/Institutional: The Public/Institutional designation includes a wide range of public and quasi-public uses distributed throughout the community such as schools, churches, child care centers, transportation facilities, public buildings and facilities, public utilities, libraries, museums, art galleries, community theaters, hospitals, cultural and recreational activities, community recreational facilities, and parks. Certain public institutional uses may be permitted within other land use designations when determined appropriate. In addition, land uses which support and are specifically related to the function of the primary institutional use may also be permitted. These support uses may include residential (for purposes of housing persons related to an institutional use), retail and service commercial, and industrial uses (e.g., warehousing for a city yard facility). The standard intensity of development is a floor area ratio of 0.2:1 and the maximum intensity of development is a floor area ratio of 0.6:1. , n l l a .t, ..:... ,.r,le..et.......o». +i,..,- ~ _ .. n mac. i Crl. »l.v .,....~ ........,..Pf6e •:b ---:1:~...+. C ..aa... ,;f1 ...-oaC_....e...,:..__ _ vrm~vcvc~ cm7-ram..nova-cnccm*rc-nmxsmT-naorrrc] r r . . cy».... » ....... », ..».. .1 • ..,ii ..Il ..o.l 1.o:..R_ a....e..„e.l 4... DI..».....J .. .. .... ....,..... -^ ....o~ ..» ........ .... ...... .... .... .....,,.... ~..__ _____a a_ __ __ _~ ________ Planned Community (PC) Designations PC Residential: The PC Residential land use designation allows for the diversification in the relationships of various densities, building and open spaces. The land use designation recognizes that mixed and integrated uses can be made to be compatible and provides for the development of low, medium and high density residential development within a wide range of living accommodations. Single family dwellings and multi-family dwellings such as duplexes, condominiums, townhomes, apartments, cooperatives, community apartments and uses such as such as public/u~stitutional facilities, churches, schools, large family day care facilities and others which are determined to be compatible with and oriented toward serving the needs of residential neighborhoods may also be allowed. The actual mechanism for defining location, density range and other building intensity standards will specifically be governed by Planned Community District provisions or adoption of a Specific Plan as authorized by the California Government Code. The average population is approximately 3.25 persons per dwelling CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 40 JUNE 17LCnn~~-wov ~ 20083 The MCAS Tustin Specific Plan designation is intended to provide a framework for the continued conversion ofa-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 .••:'~i_governed by a the MCAS Tustin Specific Plan, as authorized by the California Government Code. The Specific Plan designation, however, .ivet+ld allows for a number of the following uses. Low Density Resideutial 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 mavwet~ 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 8-15 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 weuld-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 42 ~~CCnnr~~~~ovn 20083 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. ° TransitionaUEmergency Housing uses ive~tld-He are permitted to accommodate the adaptive use of exis6ing-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 commercial business uses in the future, iveuldmav-also be permitted. Other uses such as residential and public/institutional uses which support commercial and business uses -m~also be permitted. T'he average standard intensity of development for commerciaVbusiness uses across the Specific Plan designation is a floor area ratio of-35.5:1. However, individual planning areas and specific types of commercial business uses maybe permitted to have a higher avenge floor area ratio. In addition, increased intensities may be permitted where development capacity is transferred from one area to another in aoco~dance 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 fora. 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/Recreationsl 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 governmental/social 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 NE 17ccnr~~ov~~ 20083 average standard intensity of development for all institutionaVrecreational uses will be a floor ratio of.20:1 with higher average floor area ratios permitted for specific institutionaV recreational uses. Adequate right-of--way for major arterial roadway extensions will are also need-te~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, Wamer Avenue, and Edinger Avenue. Tustin Ranch Road will need to be extended to Von Kerman to connect Edinger Avenue to Barranca Parkway. Warner Avenue will need to be connected between Red Hill 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 ~ 1UNE 17FE8I~FJ,~, 20083 ofthe 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 Special Management Areas are applicable regardless of other land use descriptions on a property. Figures LU-4 and LU-S delineate the boundaries of Special Management Areas in the Tustin planning area. Existing 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, Fist Street, ark-North Tustin, and MCAS Tustin Specific Plan (Tustin Legacv). East Tustin Specific Plan: 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 ofthe City's eastern boundary. The Plan encompasses 1,746 acres~nd-Fepresents ,we i..... :c,,....., .. .,, tie ae at.,raa_.:..tar..,~ The entire Specific Plan area has been subdivided, with appFe~it~tely-hal-~ most ofthe 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 ofthe plan can be found in the Land Use Technical Memorandum. CTTY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 49 JUNE 17F6)~E3Pd~1=~, 20083 MCAS Tustin Specific Plan: Marine Corps Air Station (MCAS) Tustin closed in Juty 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 ofthe base and will-be was included in the airy planning for reuse of the base. Following closure, the MCAS Tustin property is under the. jurisdictional authority ofthe cities ofTustin (approximately 1,533 acres) and Irvine (approximately 73 acres), and ivi~l-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-she+dd-He is to translate community values into the most important qualities or characteristics ofthe 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 w+41-be permitted by the Plan, including residential, commercial/business, and institutionaV recreational activities. Through the federal disposition process, certain portions of the property were made w-i-N-be available to federal, state, homeless, and local agencies through public benefit conveyances. Property was also~ill-~alse-lie 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 wfll~ie sold by the Department ofthe 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 Proertt 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 ofthe City Council who are elected at large by popular vote. CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 54 17FE8RI3A3~~, 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 at+e shown on-Figure LU-S. 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 permi . {.' N Iwo a:.... ~.Tl~ A C T a:.. L... na .~ .,il .. ..sel.. v..acn cr.oorcrpB~3ca-rrc~°c.~r«rv-z.rcrv--ra~cm ».. ...,...». ,,::. »..,.~ mo~avc-iir*.-arro=:.r.rrv°cqu' ...........y .,.,........ North Tustin Area (outside 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 shall 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 ofthe General CITY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 55 ~j~17rcnorwnv~r2~~ 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 area 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 Sphen of Intlueuce The two smaller areas between Myford and Jamboree Road south of the I-S 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 GENERAI.PLAN 56 j l~=cno~~., 20083 for an area. They provide a mechanism for development of a unified design plan for publicand/or private property within the plan area. Responsible Agency/Department: Community Development Funding: City/Property Owners/Federai and State Grants Time Frame: Ongoing Related Land Use Element Policies: 1.4, 9.1-9.9, 10.1-10.9, 11.1-1.5 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, arm-South Central. and MCAS Tustin Redevelopment Project Areas to promote revitalization ofthese areas. Ehe~~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 CTfY OF TUSTIN LAND USE ELEMENT GENERAL PLAN 61 ~~ccnor~~env~ Zoo83 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 by Austin-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 mutes 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 (MPAH) -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 I transportation corridors bei+~g--pied-fe>; developed by the Transportation CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 2 JUNE 17, 2008 Corridor Agencies in Orange County. They ~'°'~'°~~•• ~-~ have been constructed as toll facilities and t~eR-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 near 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 are aimed at adiustine trip patterns or modifyine vehicle use in wavs that reduce air pollutant emission ' . The Air Quality Management District (AQMD) has adopted the X2007 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 ofthe gas tax increase (Proposition 111) 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 ofthe one-halfpercent sales tax to fund transportation improvements for an additiona130 years. 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 ofthe Countywide General Plan, the Master Plan of Countywide Bikeways designates various classes of bike routes throughout the county. One ofthe 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 Commater Rail Action Plan -This is one component ofthe 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 ofthe commuter nail stations for this system will-lje 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 SpacelRecreation 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 ofthe western leg ofthe Eastern Transportation Corridor ~~~~',.m-~.a=:~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 111 legislation (Congestion Management Program). ° A comprehensive transportation system/demand management program will serve to improve tniffic 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. ° ' ,There is a need for "Park- 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 parking which in tum 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 nul) design study process to ensure opportunities for future linkages in Tustin are examined and mass transit alternatives are explored. Pollcy 3.8: ~i^vmi^r-~'^ ••«•, o •t n .• of t - « .• a ~ Deleted. Policy 3.9: Work with the Southern California 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 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 includingpark-and-ride lots near the SR-55 and I-5 freeways. Policy 4.6: Encourage the promotion of ridesharing ley--these-empleyeFs ^'°~-'~• -° ••'°*~^^° through publicity and provision of infonmation 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 "leeakollector" 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 a typical right-of--way width of 120 to 144 feet and acerb-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 fu11120 to 144 feet of right-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 are 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 buildout land use and the con•esponding 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 is-was attributed to residential uses, with the remaining 60 percent generated bynon-residential uses. For buildout of the proposed General Plan land uses, the comparative total ADT trip generation is-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 buildout of the City's General Plan land uses and with the buildout 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_hHill 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: Classi, flcation: Modified Major (six-lane major arterial with modified cross-section) ° Newport Avenue, I-5 to Walnut Avenue: Classification: 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~~-Prospect Avenue to Holt Avenue and Ne wport Avenue to Tustin Ranch Road. Red_#Hill Aveuue: The Circulation Element includes the southward extension ofNewport 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_1~Hi11 Avenue. At the point where Valencia Avenue meets Red #~Hill 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 (IBC). 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 Bar~anca Parkway, Dyer Road, and the I-5 fi~eeway. Each City will pay its fair share of the cost of the necessary trat~c improvements in accordance with the agreement. The F~ closure of the MCAS, Tustin 3''h_provided opportunities for other means of capacity increases in this area (e.g., the ae extension of Valencia into the former Base and then south to Von Karman). 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 wilt exceed the ADT capacity ofthe current four-lane primary designation. Augmentation is recommended in the form of auxiliary lanes and additional turn lanes at intersections. Seventeenth Street, SR-SS 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. 1..«e a.e..a..,e«a :« al.v L'....a T....a:« C«o..: A.. Dl..«. Valencia Avenue: With the southward 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 attn3cted to the ft+t~Eastem 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. Reeeetly~The term "Superstreet" #~l~een-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 n, 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. Wine 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-5, Jamboree Road joins the southerly tenmination 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-ate ne~arl~vey. 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-S 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 overerossing ofthe 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 hHill 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_13Hi11 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_#~Hill 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_l~Hill Avenue and Tustin Ranch Road ivi~ll continue to be influenced by €eti+~e-new land uses ~~~r associated with the closure ofMarine Corps Air Station, Tustin, any detailed studies for potential deletion of the Browning Avenue overcrossing should be made only after the land uses and infiastructure on t-lithe 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 overctossing 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 ofOiange's Master Plan ofArterial 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 Ciroulation Element. The Circulation Element further recognizes that the opportunities for and the benefits ofthe "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, 2008 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 ofTustin 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. ""''''^ •''° ~°°°'*~° D1°° ~ - .The addition of these roadways also requires an amendment to the County of Orange Master Plan of Arterial Highways (MPAIT/. 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 ld introduce "Park-N-Ride" facilities into the area, thereby enhancing ridership for non-local trips. A commuter rail station mill-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 Goal S, 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 PARATRANSIT As related to safety, guidelines are administered through the development review process for the construction of pedestrian 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, JWA 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 ofthe City. ~ +Flp^'~~ o~~~ c --~~ r.ti ~. •„ The MCAS Tustin Soecific 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 w+ll--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 Countv providin 44 daily trains and carrvinQ more than 3 5 million riders. CITY OF TUSTIN CIRCULATION ELEMENT GENERAL PLAN 44 JUNE 17, 2008 The Orange County Transportation Authority is also evaluating the regional rail system through its Countywide Rail Study (CRS). This study is assessing congested traffic comdors 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 nrovidina additional capacity for future commuter rail ridership `----------------------------------------------------------------------------------------------------.. -"~FOrmatted: Fart solar: light Bkie 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_hHill 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$ 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 bHill Ave 3 Tons Mountain View Dr First St to Irvine Blvd 3 Tons OMryn Dr Red #Hill Ave to Woodland Dr 3 Tons Walnut Ave Red #-Hill 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 ° Through the Moulton Parkway Smart Street Project °"°~^* ~° °'~^-~^°~° ~n~~r IinR ^b^ °~^ s ca' ^ ''study the feasibility, Costa and environmental impacts ofa depressed or elevated grade separation at Red Hill Avenue rail tracks, north of Edinger Avenue. ° Explore State, Federal and local funding sources to finance consUucrion of alter~-ative types of crossings. Responsible Agency/Department: Engineering/Public Works 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/Public Works Department Funding Source: Property Developer Time Frame: On-going Related Circulation Element Policies: 1.1, 1.1 S, 1.16, S.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 Deparment, 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 construction of a parking structure at the Tustin station-~e-~e~reiel station-in-~'~stin. ° Continue to monitor studies and participate in the "corridor" (urban tail) meetings. Responsible Agency/Department: Community Development/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 Strategies: 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 The Open Space Element must contain goals and polices concerned with managing all open space areas, including undeveloped lands and outdoor recreation areas. Specfically, 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 identifies planned park and recreation faclities designed to support the recreational needs of Tustin's population. While air quality is not a mandatory General Plan element, the South Coast Air Quality Management Plan now contains specfic Guidance fequiremer~ts for air quality to be addressed in the General Plan. Air quality has been included as a sub-element to the Tustin ConservatioNOpen 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 agences or specal 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 Ad of 1973 (as amended in 1978), the Antiquities Ad 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 2 UJ NE 17dAA14JAR~-i&, 20084 The Califomia Environmental Quality Ad (CEQA) 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 asamended ina-992008 and 2007, resoedively. CEQA will continue to be instrumental in ensuring that the impacts of all potentially significant projects are assessed. Alr Quality Management Plan In X5872007, the South Coast Air Quality Management District and the Southern Califomia Association of Governments (SCAG) adopted an updated Air Quality Management Plan designed to achieve. the National Ambient Air duality 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 CnY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 3 JUNE 17dANkJAR~-~16, 2008~i 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 I 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 source 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 JUNE 171, 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-preserl~ 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 dyi~-eFin need of substantial care. There is a Cedar/Redwood grove on a propssed-passive community park site in the northeasterly portion of East Tustin that is unique and visually-prominent. Special Management 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 northeasterly 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 17JANUAR~~6, 20084 ° 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. ° The California Integrated Waste Management Board reouired the Citv to divert at least 50% of its waste from landfills. ° 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 resoun~s. 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 1718, 2008 ° 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,. especially in the southern and western portions of the community where densities are higher. ° In 2001. Tthe City s~eRtly-pads 82.4 acres of existing local and community parks, but neededs an additional 106 acxes to serve its pFeser~t-population based on a standard of three acres per 1,000 persons. The sphere of influence contains 10 acres of parkland leaving it 669 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 precludes 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 defiaency in facilities. ° The City has lost two parks - Utt Parkette and North TustiNSanta Clara Parkette -due to freeway widening improvements. CnY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 10 JUNE 17JAPidAR~1a1, 20083 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 beeping 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 respell these natural features of the community. The goals and supporting polities inducted in this Element address spetific 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 use, transportation and energy use planning. Policy 1.1: Cooperate with the South Coast Air duality Management District and the Southern California Assodation of Governments in their effort to implement provisions of the region's Air Quality Management Plan, as amended. Policy 1.2: Design safe and effitient vehicular access to commercial land uses from arterial streets to insure effident vehicular ingress and egress. Policy 1.3: Locate multiple family developments dose to commercal areas to encourage pedestrian rather than vehicular travel. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 12 UNE 17dANdA~Y-18, 2008 GOAL 7: Conserve and protect natural plant and animal communities. 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 feasible. The redwood/sequoia stand wiR-be-has been retained within a park site and integrated into teethe park design. Policy 7.2: Conserve important plant communfies and wildlife habitats, such as riparian areas, wildlife movement corridors, wetlands, and signficant 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 include 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 minimizing concrete channelization, retaining or replanting indigenous vegetation and/or retaining open space areas along the drainage course. Policy 7.8: 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 significant topographical features, important watershed areas, resources, and soils. 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 CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 16 JUNE 17dAAlUAFt~~6, 20084 GOAL 10: Reduce solid waste produced within City. Policy 10.1: Implement polices 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 all 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 practices. 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 sun/shade patterns, prevailing winds, landscaping, and building materials. CnY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 19 JUNE 17JAN~A&~8, 2008 specific parks, improvement programs, and speaal 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 deficiencies 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 parks and recreation facilities so they are safe, clean, and attractive to the public; and preserve, protect, and enhance both existing and potential natural recreatlon areas to ensure that long-term public investments and values are not unreasonably 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 facilities 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 17JAAlUA~X-~, 2008 Management District and the Southern California Association of Governments to implement the goals of this element and the Air duality 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 SCA~MD and SCAG. These measures are generally aimed at reducing the total number of vehice trips, improving traffic flow, and utilizing clean fuels in motor vehicles. The goal of the Transportation Control Measures (TCMs) is to influence transportation choices of mode, time 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: -- Formatted: Font Dolor: Light Blue (a) Telecommunications; (b) Smart shuttle transit; (c) Zero emissions vehiclesrnfrastructure; (d) Alternative fuel vehicles/infrastructure; (e)~ntelligent vehicle_ highway_sy_stems___________________________________..---- Formatted: Forrt: c~ srx„n ,~2ule 2202 - On-Road Motor Vehicle Mitigatlon_Optlons The _.__.-- Formatted: Font: coerauki sfxud 1997 AQMP else-includeds Rule 2202_proyiding_employ_erswhh ___.--- Formatted: Font: ci shn,n a menu of options to reduce mobile source emissions generated from employee comments. As of June, 1998, Rule 2202 appliedLs to any employer who employs 250 or more employees __..--- Formatted: Fork: c~ulc) stn,n on a full to part-time basis at a worksite for a consecutive six- 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: F«,t: (Defauh) Shrutl, Fork aofor: ---------------------------------------------------------------------------------------------------------=--------------'"~ LigM eYre CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 29 JUNE 17JANdAJ~Y-1~, 2008 In 1989, the State approved comprehensive recycling and source reduction legislation in the form of AB 939. That bill requireds___---- For~toea: Font: coefaok)Slvutl 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 we_ga~e also required to ___.--- FormatEed: Font: c~ SFrun divert 50 percent by January 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 performed as directed by the City to determine the potential for hazards and the amount of development which is supportable on the site,_____ --- rornwtcea: ForK: trm+~ SFrutl CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 31 JUNE 17JAAIUAR~IS, 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 Communities 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 species such as the California Bladc-tailed Gnatcatcher, the San Diego Cactus Wren, and the San Diego Coast Homed Lizard. The Coastal Sage Scrub itseff 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 preservation and improvement of the sensitive plant and animal communities within its borders. The General Plan also mandates the continued maintenance of significant tree stands. Healthy trees have been identfied 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 t#e-new development. CITY OF TUSTIN CONSERVATION/OPEN SPACEI GENERAL PLAN RECREATION ELEMENT 37 JUNE 17dANUARaF-i&, 2008 Topography, Soils, 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 prated 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 performed. 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 laernes-buildings 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 tl~e 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 aAFit# the closing of MCAS Tustin, additional historic resource surveying of the facility was ~;~; completed. It ~~~Twas CITY OF TUSTIN CONSERVATION/OPEN SPACE/ ' GENERAL PLAN RECREATION ELEMENT 38 JUNE 171AA161AR~t~, 2008 concluded that there existed two discontiguous ' all-inclusive historic districts containing aA-rer~aini~-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 identifies current historic resources within Tustin. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 39 JUNE 17JAN41P~6, 2008 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 protecting culturally significant structures, natural features, sites, and neighbofioods within the City of Tustin. The District includes 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 Counai. 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 city to apply for status as a Certified Local Govemment (CLG). The Certified Local Govemment Program is a federal program which allows a city to partiapate more directly 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 approved. Scenic Resources As new development is considered by City deasion 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 17JANldAF~Y~&, 2008 The need to conserve landfill space has been addressed by reser~ State legislation. Assembly Bill 939 mandates the preparation of a Source Reduction and Recyding 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 CONSERVATIONlOPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 42 JUNE 176, 2008 Element is the reduction of solid waste in the City. Specific policies set forth by the City include implementing the Source Reduction and Recyding Element, maximizing integration of source reduction programs, and maximizing public awareness. These goals and polices are set forth explictly 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 Conservation 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. Southern exposures in the winter and limited western exposure in the summer are both important. Streets~which run_east-west_are more adaptable to solar__..--- w~„~maa: w:,r: lo~a~rt~sh-:,n energy practices than north-south streets. The ideal building orientation for the Southern 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 #ellew-a+~d has implemented. CONSERVATION AND OPEN SPACE USED FOR THE MANAGED PRODUCTION OF RESOURCES Open Space areas for_the_managed_production of_resources with__..--- r~or~raetea:r-oM:~oera„ic~srn,n regard to this section indude 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 land most of which is within Tustin Leaacv. Very little of this undeveloped Jand is_currently_ used for commeraal_ agriculture, __.__-- rormatted: FonL• (oefauR) sntin and it is unlikely that any will be used in the future. ~'~#e-re-~aaiRiAg CnY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREA770N ELEMENT 43 JUNE 17dAN4~A&~-1~, 2008 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 SPACEI GENERAL PLAN RECREATION ELEMENT 44 JUNE 17JANdAR~-'1~, 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.~ee~ rl+_ !`: ~, :.:~~ `~~:~'~ Y"-` ` r`i'd D~" ~ ` '«~ Opportunities existt0 provide strong linkages between these open space resources to form a cohesive 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 Public/Institutional 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 J NE 17dAPlldA~-36, 20081` 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 I 1 acres occupied by a blimp hangers 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 Plsygrounds/Joint Agreement Public school playgrounds under the jurisdiction ofe 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 schooUrecreation 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 schooUrecreation use and maintenance program. An educational college campus is proposed within 1~4i}; the Tustin Leeacv development which could provide recreational facilities open to the public. CITY OF TUSTIN CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT I 52 UJ NE 17dANUA~K3S, 2008 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 lane; ° 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 aRecreational Bikeway/Trail Concept Plan 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 CONSERVATION/OPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 53 JUNE 17JAA161AF~-'46, 2008 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$ ommercial 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 JUNE 17JAA1dAR~, 20081 CONSERVATION, OPEN SPACE, AND RECREATION ELEMENT IMPLEMENTATION PROGRAM The 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 carry 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-today decision- making, subject to funding constraints. AIR QUALITY The Air Quality Management District (AQMD) has adopted the 2007 x-997 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 Control Measures (TCMs) which have been determined by the local agency to be politically and economically feasible. T"° "z„~QMa-i~ 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. CITY OF TUSTIN CONSERVATION/OPEN SPACEI GENERAL PLAN RECREATION ELEMENT SS JUNE 17JAA4UA~'IS, 2009 23. Peter's Canyon Wash: Support the maintenance of Peter's Canyon Wash as an open natural channel through the East Tustin Ranch Golf Course, 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/Planning 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 stonnwater 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 Courtly 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 CONSERVATIONlOPEN SPACE/ GENERAL PLAN RECREATION ELEMENT 64 JUNE 171API~lAR1~ia, 200Bi PUBLIC SAFETY ELEMENT PROPOSED AMENDMENTS ° Subsidence and other geologic hazards; ° Wildland/urban interface fires; and ° Evacuation routes. State law also permits sties 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 ConservatioNOpen 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 _.._--- wrmaeeea: Fart Dolor: u~ ekie agencies which have their own roles in the event of an emergency, including the Federa /CAD@Dartment 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 Policies; and The Public Safety Plan. The Public CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN Z JUNE 17JAN~IAPX~, 2008 SUMMARY OF PUBLIC SAFETY ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS The Tustin 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 €eastern parts of the City are subject to flooding in a 100- yearstorm, Tustin-~reperEy-and most of the southern and eastern areas of ##~Tustin Legacv Gity-are subject to flooding in a 500-year storm; 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 alive region. ° No known alive or suspected potentially alive faults exist within the Planning Area. The EI Modena fault passes through the Planning Area's northern section; however, studies have not been conclusive about the adive~nadive status of this fault. CnY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 4 JUNE 17JAA161APa~~6, 2008 ° The City lies under the Instrument Landing System Corridor of John Wayne International Airport airf'ielder ° 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 periodically conducted to educate staff on their emergency responsibilities and to assist in identifying procedures and functions which require further preparedness and training activities. ,~ ~~ CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 6 JUNE 17dAAR~AR•l~iS, 20084 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 ~Ila 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 geologicconditions 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 agencies. 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 significant identity. Policy 3.4: Regulate the structural seismic safety of all buildings located within the City, pFier-tee-93~. Inventory tilt-up industrial buildings built prior to 1974. Policy 3.5: Ensure that structures for human occupancy, critical structures, and vital emergency facilities are designed to minimize CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 8 JUNE 17dAA1r;lARX-iS, 20084 Air operations associated with John Wayne International Airport arm AAGAS-TastiR represent a potential hazard for the community. The risk from this hazard can be minimized through proper planning of land use. GOAL 7: Minimize the level of danger to life and property from air operations accidents. - Policy T.1: Develop criteria to regulate the type and intensity of developments in areas of known potential air operations hazards. .Policy T.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 participation 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: a partiapating in and monitoring the planning processes for John Wayne Airport 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 emergencies is necessary to minimize disruption, personal injury, and property. damage. Preventive measures taken before an emergency occurs can hasten recovery from such incidents. CITY OF TUSTIN PUBLIC SAFETY ELEMENT I GENERAL PLAN 13 JUNE 17JANlJAR~16, 200&? 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 specific events such as earthquake, major rail and roadway accidents, flooding, and hazardous materials. Policy 8.2: Coordinate with Orange County and the Federal Emergency Management Agency in reducing community risks in the event of a disaster. Policy 8.3: ~peASer-and-sSupport public education programs for emergency preparedness and disaster response; distribute information about emergency planning to community groups, schools, churches, and business associations; 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 solicit participation from private sector sources (i.e., ham radio, cellular telephone, etc.) to enhance local communication and response capability. GOAL 9: Reduce the amount of personal injury, damage to property, and economic or social dislocation as the result of disaster. Policy 9.1: Existing vital facilities not designed to be disaster- resistant should be examined, and hazardous st~+stuFes-conditions should b fully mitigated. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 14 JUNE 17JANlJAR~, 2008 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 faalities. 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 Canyon Channel so that runoff from a 100-year storm couldaR be carried representede 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 facilities 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 17dAA141P~R~1S, 20081 Like most military fadlities, MCAS Tustin has-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 Ad (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 #aas-created a team to organize and implement a Base Closure and ~tealignment Act Base Cleanup Plan (BCP). The purpose of the BCP is to summarize the status of current environmental restoration and assodated environmental compliance programs in support of base dosure and to provide a strategy for integrating all ongoing site activities in a comprehensive and effldent manner that protects human health and the environment. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 20 JUNE 17JAA1LJARY~S, 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 fin: 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 specificalty 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 cooperation 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 an'est. Reduang 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 17JANUARY-3&, 2008 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 Neighbofiood Watch and community oriented policing. The City will also work with the citizens 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 ohn Wayn° '° '`~.,te.;,atiet~al 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 ZS JUNE 17JAAIUAR~4&, 20084 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„ effisials. 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 speclfic 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 Comaatibility Zones, areas with Building Height restrictions, or within specified distances from runway surfaces. As with most controversial safety related topics, the involvement of citizens is of great importance. The City will encourage and notify residents of opportunities to become involved in airport related issues. AGENCY RESPONSIBILITIES AND COORDINATION The City contracts with the Orange County Fire Authority for Fire and Paramedic Services. Other agendes which have jurisdiction or which provide public safety services within Tustin include the California Highway Patrol, and the Orange County Health Department. The Cily coordinates with these agendes to provide the highest level of public safety services. The City will continue to work with these agendes to ensure adequate service. Plans for proposed developments, including City projedB, will be sent to appropriate agendes 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 I GENERAL PLAN 26 JUNE 17dAN41APK1~, 200Si individual agencies and the interagency coordination required to implement emergency procedures. The Southern Califomia Earthquake Preparedness Project (SCEPP) is a State and federally-funded effort to encourage local jurisdictions to prepare for catastrophic earthquakes that may occur in Southem Califomia. 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 preparedness planning needed to respond to major disasters. With Tustin's feser~tly-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 city 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 Califomia Emergency Preparedness Plan and Emergency Resources Management Plan which apply to city governments. The Plan will be adopted in 1997 to comply 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 disasterwili determine which routes and which directions CnY OF TUSTIN PUBLIC SAFETY ELEMENT I GENERAL PLAN 27 JUNE 17dAA1r:lA~`F-1S, 2008 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 agencies, in the event of a major disaster, other City, County, and State personnel~assume local emergency response roles. The updated Emergency Operations Plan wilE-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 activate 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 facilities available as emergency shelters. CITY OF TUSTIN PUBLIC SAFETY ELEMENT GENERAL PLAN 28 JUNE 17~, 2008 uses under air traffic corridors in order to reduce the potential accidents affecting highly populated areas; and f. 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 articipating in and monitoring the planning processes for John Wayne Airport y continuing to monitor proposed activities, expansions or alterations of 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 17JANl~AR~-18, 2008 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 MATERIALS 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-geAerate protectiefl-ef 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 17dAPlUARY-16, 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 collection, 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 reoonstrudion 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 17JAP4k/AR~S, 2008 NOISE ELEMENT PROPOSED AMENDMENTS ° Increases in traffic volumes will increase noise levels throughout Tustin. O TL... ....a6.:a:.... .....J .-..~~~-~~! A.a.._. ..___ .t •I/~wn rl r___ O -ttlOMFf: ° 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 city, state and federal laws is limited. Noise control measures and noise-related compatibility considerations need to be inducted in all new land use developments. Enforcement of dty, state and federal requirements regarding noise control is necessary, spedfically: The City's noise ordi- nance regarding intrusive noise, the state vehide code and provisions regarding mufflers and excessively loud radios, the state noise insulation standards for multifamily developmenrts, and the federal and state requiremenrts 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 assodated with commercaUndustrialsctivities impact nearby residences. CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 6 JUNE 17dAA14JAl~, 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: Use 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: ef-t#e-prsjesF Intentionally omitted 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 resulflng 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 , ~ CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 8 JUNE 17iS, 2008 participateing in and moniton'ng the planning processes for John Wayne Airport and b continuinge to discourage commeraal or general aviation activities which increase noise exposure. Policy 1.6: Encourage Tustin citizen participation and City involvement on committees that would influence future airoraft operations in Orange County. Policy 1.7: Encourage construction of noise barriers by the Public Utilities Commission, Southem Califomia Regional Rail Authority, Amtrak, and Orange County Transportation Authority along the Atchison, Topeka and Santa Fe rail line where residences exist next to the tracks. Policy 1.8: Encourage the Public Utilities Commission, Southem Califomia 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 reducing 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 neighbofioods when designating truck routes and major circulation corridors. Policy 1.12: Work with 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. CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 9 JUNE 171ANUA&a=-~, 2008 Areas of Special Concern Areas of special concern within the Noise ImpadArea are nearthe I-5 and SR-55 freeways. At these locations the existing CNEL ranges from 70 to 80 d8. Caltranswill-constructed soundwalls along these freeways as part of the freeway widening projects. These walls wilkeduce the CNEL at the adjacent residence ,------------------------------------------.-.- wrmattea: rant color. Llght ekro Residences next to a number of major and secondary arterials in the Tustin Planning Area are also exposed to a CNEL over 65 dB. 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 Calffomia Regional Raii Authority (SCRRA) rail line are surfently-were exposed to a CNEL of about 70 d6 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 d6 due to increased rail activity related to commuter rail activities along the SCRRA/OCTA railway (Metrolink). The primary source of annoyance at these loca- tionswill 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 specific 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 city policy related to new land uses and acceptable noise levels development. CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN LS JUNE 17d,4NdAR~F~&, 20081• TRANSPORTATION NOISE CONTROL The most effident 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 induding train tracks, two freeways, major arterials, collector roadways, nd a commercal 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 NOISE ELEMENT GENERAL PLAN 17 JUNE 17JAPIklA&a~-a~, 2008 The California Vehide Code contains noise limits applicable to new vehices at the time of manufacture and noise regulations pertaining to the operation of all vehicles 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 significantly minimize noise impacts. The State Motor Vehide noise standards for cars, trucks, and motorcycles will be enforced through coordination with the California Highway Patrol and the Tustin Police. The City and its ctizens will also partidpate in the planning processes for John Wayne Airport, Any changes in operations or land uses within the faclityies 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 inducting 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 Onlinance. Typical Mitigation for Industrial and Commercial Uses Consideration should be given to the control of noise in new commerdal and industrial developments when noise levels would othervvise 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 17dANUAR~~6, 2008 The City will seek assistance from the Public Utilities Commission, Southern 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, Southern Califomia Regional Rail Authority, OCTA, Amtrak, Redevelopment Agency Time Frame: Ongoing Related Noise 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 periodicalty 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 Works/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: Worts to reduce noise impacts resulting from aircraft operations ate John Wayne Airport y: (a) participating and monitoring the planning processes for John Wayne Airport (b) continuing to discourage general and commensal aviation activities which increase noise exposure to sensitive land uses. Responsible Agency/Department: Community Development Funding Source: City General Fund CITY OF TUSTIN NOISE ELEMENT GENERAL PLAN 23 JUNE 17dANIdARY-'1~, 20084 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 faclities, required to be addressed by developing communities. ,The former Tustin Marine Corps Air Station has significant infrastructure needs +n~e~atare-to support the development of Tustin Legacy Infrastructure planning wiA-was integrated into the planning feFt#~at of the site and redevelopment of the former base will be required to address the-costs and timing of additional infrastructure required to serve 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 facilities 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 polices where necessary. The Growth Management Element is implemented through various coordinated programs developed to support and carry out its goals, objectives and policies. In addition, this element minimizes duplication between Measure M and Congestion Management CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 2 JUNE 17dANNAR~'1~, 20084 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 (AQMP), 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 andlor 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, objectives, policies, and implementation programs for growth management. The goals of the Plan are summarized as follows: "...to reduce traffic congestion, ensure that adequate transportation faclities, public facilities, equipment and service are provided for existing and future residents and to protect the natural environment of Orange County." The Plan establishes the following flue major polices: 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 capacties. 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 17JAN~AAX-~S, 200t3~ 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, .The City is subject to all AQMP requirements for local jurisdictions. 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 ~-99a- CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN S JUNE 17dAN~lA~6, 2008 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 a -seven-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 Implementation Manual). Measures M and M2 Orange County voters approved a measure (Measure M) in 1990 to allocate additional funds to provide needed transportation facilities 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 Mwill-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 alias of Irvine, Santa Ana, Orange and the County of Orange. Tlae~slirnated . 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 inauded 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 17'6, 2008 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 forums Development of a 7-year Capital Improvement Program Address housing options and job opportunities 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 GeF-adeF 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. fie; CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 7 JUNE 17dAAlFdAR~-~, 2008 GROWTH MANAGEMENT ISSUES, NEEDS, OPPORTUNITIES AND CONSTRAINTS The City of Tustin is part of a large, fast-growing region. I se; tThe pace of new development has -te-e~+tst~exceeded 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 facilities. ° The City's ser+star~-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 Courrty stem from the inadequate capacity of the freeway system to serve peak period travel demands. This lads of capacity 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 of infra-regional traffic and complement the freeway 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 NewportAvenue, Red #~Hill 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 greatly 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 jurisdictions and throughout the County has effects upon the CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 9 JUNE 17JAN~JAFt~F-36, 2008 GROWTH MANAGEMENT ELEMENT GOALS AND POLICIES The following new goals and polices are designed to meet all the Growth Management Element requirements for Developed Communities as set forth by Measure M and elaborated by the Countywide Growth Management Program Implementation Manual. TRAFFIC CONGESTION Traffic congestion is a problem on local streets as well as arterials and regional freeways. In particular, heavy traffic volumes in Tustin exist along Red IaHill Avenue between Wamer Avenue and Edinger Avenue, along Seventeenth Street in the vicinity of Yorba Street, and along Irvine Boulevard between the Newport-Costa Mesa Freeway and Browning Avenue. Traffic volumes along the I-5 corridor are also extremely heavy and cause significant slowing during the peak hours. GOAL 1: Reduce traic congestion. Policy 1.1: Within three years of the issuance of the first building permit for a development project or within five years of the first grading permit for said development project, whichever occurs first, ensure that the necessary improvements to transportation facilities to which the project contributes measurable traffic are constructed and completed to attain Level of Service (LOS) "D" at the intersections under the sole control of the City. Intersections under the jurisdiction of another City or the County or the State or those included on the Deficent Intersection List established by the City and compiled by the GMA (Growth Management Area) in which the City participates (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. CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN ~ 1 JUNE 17J.4N~)AR~'1&, 2008 Policy 1.3: All development contributing measurable impacts to intersections on the Deficient Intersedaon List and all projects contributing cumulatively, or individually, 10 percent or more of the traffic 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. Policy 1.4: Promote traffic reduction strategies through TDM measures adopted by City ordinanoe.~ ADEQUATE TRANSPORTATION FACILITIES Many of the regional transportation fadl'Ities are not adequately sized to acxommodate existing and projected growth. Largely in response to this situation, Orange County voters approved a-+~eas~e-fMeasure M) in 1990 and Measure M2 in 2007 to allocate additional funds to provide needed transportation facilities. GOAL 2: Ensure adequate transportation facilities are provided for existing and future inhabitants of the City. Policy 2.1: Require that all new development pay its share of the street improvement costs assodated with the development, inducting regional traffic mitigation. Policy 2.2: New revenues generated from Measure M shall not be used to replace private developer funding which has been committed for any project. Policy 2.3: The City shall continue to collect Transportation System Improvement Program (TSIP) fees for improvements within its boundaries 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 but required to meet Measure M requirements. CITY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN ~Z JUNE 17dANdAR~-'1~, 2008 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-43y ' and will continue to pariiapate 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 Ce-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 is land 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 relatively close 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 17dAA141P~1'~&, 200&i 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 deficiendes, measures shall be implemented to correct identified defidencles. 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 projeds 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 projeda as well as a financing plan for providing the improvements. INTERJURISDICTIONAL COOPERATION The City of Tustin will become involved in interjurisdidional coordination for various purposes, including: ° Cooperating with the County of Orange, the Orange County Transportation Authority (OCTA), and other local jurisdictions CnY OF TUSTIN GROWTH MANAGEMENT ELEMENT GENERAL PLAN 18 JUNE 17JAPIk1Af~l!~S, 2008