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HomeMy WebLinkAbout01 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CONSOLIDATED PLAN FOR PROGRAM YR 2010-2015 & 1 YR ACTION PLAN FOR PROGRAM YR 2010-2011Agenda Item 1 --~'" Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: APRIL 20, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CONSOLIDATED PLAN FOR PROGRAM YEAR 2010-2015 AND ONE YEAR ACTION PLAN FOR PROGRAM YEAR 2010-2011 SUMMARY The Housing and Community Development Act of 1974, as amended, established the Community Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing decent housing, suitable living environments, and by expanding economic opportunities, specifically for low and moderate income persons. To participate in the CDBG program, the City is required to prepare a Consolidated Plan that identifies needs for affordable and supportive housing, community development, public services, and economic opportunities. The Consolidated Plan is required every five years. Annually, the City is also required to prepare aone-year Action Plan that implements the goals and objectives contained in the Consolidated Plan. The documents set forth in Resolution No. 10-32 fulfill these requirements. On February 10, 2010, the City Council held the first required public hearing to receive public input and testimony, considered and provided staff with direction on the 2010-2015 Consolidated Plan Priority Needs, considered and provided staff with direction on public service performance evaluations for continued funding; and set a second required public hearing on April 20, 2010 to finalize the 2010-2015 Consolidated Plan update and the Program Year 2010-11 Action Plan. RECOMMENDATION That the City Council adopt Resolution No. 10-32: 1. Approving the 2010-2015 Consolidated Plan including the proposed use of Program Year 2010-2011 Community Development Block Grant (CDBG) funds for inclusion in the one-year Action Plan; 2. Approving amendments to Program Year 2007-08 and 2008-09 Action Plans; and, 3. Authorizing the Community Development Director to submit the Consolidated Plan to the federal Department of Housing and Urban Development (HUD) and City Council Report CDBG Consolidated Plan & Action Plan April 20, 2010 Page 2 make minor modifications to the Consolidated Plan and execute documents, certifications, contracts, or other instruments as may be required to carry out the CDBG program. FISCAL IMPACT The proposed 2010-2011 programs and expenditures will be implemented with CDBG funds. No impacts to the General Fund are anticipated. BACKGROUND/DISCUSSION Consolidated Plan To participate in the CDBG program, each jurisdiction is required to prepare a Consolidated Plan, "The Plan", afive-year planning document intended to identify a jurisdiction's overall needs for affordable and supportive housing, community development, public services, and economic opportunities. The Plan also outlines a five-year strategy for addressing those needs and identifies resources and programs which might assist in meeting these goals. In developing the Consolidated Plan, the Council's adopted Housing Element and the Comprehensive Housing Affordability Strategy FY 2008-09 to FY 2013-14 were utilized in developing the City's affordable housing strategies, goals and objectives. The Consolidated Plan has four (4) components: 1) Housing and Homeless Needs Assessment; 2) Housing Market Analysis; 3) Strategic Plan; and 4) Action Plan. In general the components are summarized as follow: • Housing and Homeless Needs Assessment -afive-year estimate of housing and supportive services needs, including the nature and extent of homelessness in the community. • Housing Market Analysis - a description of significant characteristics of the housing market, a brief inventory of facilities and services meeting housing needs of homeless persons, and an explanation of barriers to affordable housing. • Community Housing and Development Strategic Plan - a plan/strategy identifying key goals for addressing priority housing/community development needs. • Action Plan - a description of activities and projects to be undertaken with grant funds during the program year. The Consolidated Plan, as required by federal regulations, must be available for public review for a period of not less than 30 days. The City advertised the availability of this City Council Report CDBG Consolidated Plan & Action Plan April 20, 2010 Page 3 document in the Tustin News. The review period began on March 1, 2010 and ended on March 30, 2010. No public comments were received during the comment period. This Consolidated Plan document may be amended based on the City Council's action at this meeting. The U.S. Department of Housing and Urban Development (HUD) mandates that the Plan must be submitted to HUD no later than 45 days prior to the beginning of the program year or May 17, 2010. Action Plan A section of the Consolidated Plan called the one-year Action Plan, serves as the City's application to HUD for CDBG program funding. The City must submit an Action Plan annually to receive its entitlement money. The purpose of the Action Plan is to detail how the City intends to spend its annual allocation of funds to meet community needs identified in the Consolidated Plan. Program Requirements and Regulations According to HUD, the City will receive $875,521 of CDBG funds for Fiscal Year 2010- 2011. These funds are allocated on a formula basis to cities to carry out activities that provide opportunities to develop viable urban communities. Communities are permitted to develop their own programs and funding priorities, as long as each activity meets one of the three CDBG National Objectives. These objectives are for projects that: 1) Benefit low- and moderate-income persons; 2) Aid in the prevention or elimination of slums or blight; 3) Meet community development needs having a particular urgency (conditions that pose serious or immediate threat to the health or welfare of the community, where other sources of funding are not available). The program also requires that at least 70 percent of the total CDBG funds must be used for activities that benefit low- and moderate-income persons over aone-, two-, or three-year period; and individual activities designed to benefit low- and moderate- income persons must assist at least 51 percent low- and moderate-income persons. To assure that activities will meet the National Objectives, HUD established guidelines for Eligible and Ineligible activities. Eligible activities include, but not limited to, the following: • Housing related activities • Removal of Architectural Barriers to Public Facilities • Rehabilitation and Preservation Activities • Public Facilities and Improvements • Public Services Activities City Council Report CDBG Consolidated Plan & Action Plan April 20, 2010 Page 4 Economic Development Activities Planning and Program Administration, etc. In addition, the program also limits the amount of allocation for Public Services activities and Program Administration. A maximum of 15 percent (15% x $875,521 = $131,328) of the total grant award may be allocated to Public Services types of activities. A maximum of 20 percent (20% x $875,521 = $175,104) of the total grant award may be expended on Program Administration activities. Public Service Activities Multiyear Funding On April 17, 2007, the City Council amended the City's Citizen Participation Plan by designating the Tustin Community Foundation as the Citizen Participation Committee for Public Service Activities and that funding for public services are to be allocated through a three (3) multiyear funding cycle. Accordingly, on February 25, 2008, the Tustin Community Foundation acting as the City's Citizen Participation Committee held a public hearing, considered funding requests for public service programs, and recommended allocation based on a multiyear funding cycle. The City Council on May 6, 2008, accepted the recommendation and approved the funding allocation for public services programs for a three year period and established a minimum funding amount of $5,000. Following the Year One (1) allocation for Program Year (PY) 2008-09, the approved public service programs would continue to receive Year Two (2) for Program Year 2009-10 and Year Three (3) for Program Year 2010-11 funding if they meet the following criteria: a. Activities must continue to meet the priority and objective for which the activities are funded in Year One (1); b. Activities must continue to leverage funds with other sources; c. Activities must be in compliance with contractual obligations; d. Activities must report accomplishments correctly in the Quarterly and Annual Performance Reports and/or other documentation as described in current year contract; e. Activities must receive a successful assessment of project performance and progress from City staff. A list of public service programs and their accomplishments is attached as Attachment B. The City Council, at the February 10, 2010, public hearing, considered the public service accomplishments, and directed staff to continue funding for all Public Service projects in Year 3. City Council Report CDBG Consolidated Plan & Action Plan April 20, 2010 Page 5 The following are recommendation for public service funding allocation: Public Services Activities (max. $131,328) Boys and Girls Club $ 15,000 (continue) Community Service Programs (ATSC) $ 10,000 (continue) Community SeniorServ (Senior Meals) $ 20,000 (continue) Graffiti Removal -CDBG target areas $ 23,528 (continue) Laurel House $ 5,000 (continue) Human Options $ 5,000 (continue) Olive Crest $ 5,000 (continue) Tustin Parks and Recreation Department (Youth Center Staff) $ 28,900 (continue) Tustin Parks and Recreation Department (Kids Corner) $ 18.900 (continue) Public Services Subtotal $131,328 Non Public Services Activities/Programs On December 10, 2009, the City published a Request for Proposals in the Tustin News newspaper soliciting applications and proposals to provide fair housing services to the City of Tustin. Two (2) fair housing applications were received by the January 8, 2010, submission deadline. Staff evaluated both applications and based upon the qualification and proposed services and activities, staff recommends that the City Council opt for Fair Housing Foundation as the City's fair housing service provider for Program Year 2010- 2011. This option is reflected in the proposed funding allocation On February 18, 2010, a Notice of Funding Availability for other non public service projects was published in the Tustin News newspaper. No application was received. The following is a list of the City's non public service projects and funding allocation: Public Facilities and Improvements Re-lamp Parks: Pine Tree, Pepper Tree, Frontier $ 120,000 Mitchell Ave. Storm Drain: First Phase Construction $ 275,000 McFadden Parkette 58 089 Public Facilities and Improvements Subtotal $ 453,089 Rehabilitation and Preservation Activities Code Enforcement 116 000 Rehabilitation and Preservation Subtotal $ 116,000 Program Administration and Planning Activities (max. $175,104) Fair Housing Counseling Agency (Fair Housing Foundation) $ 17,412 CDBG Program Administration 157 692 Administration & Planning Subtotal $ 175,104 City Council Report CDBG Consolidated Plan & Action Plan April 20, 2010 Page 6 Action Plan Amendments for Program Years 2007-08 and 2008-09 Under the CDBG Program regulations, communities are required to expend CDBG monies expeditiously. For 2007-08 and 2008-09, there are unexpended funds that need to be reallocated to ensure compliance with CDBG timeliness regulations. The unexpended funds are from projects that are complete or slow moving and therefore have no further or immediate expenses under CDBG. The proposed amendments to 2007-08 and 2008-09 Action Plans would reallocate unexpended funds of previously approved activities to other activities. An amendment to an Action Plan is required when the City adds a new activity not previously described in the Action Plan of the respective Program Year. The proposed amendments to the project allocations are as follows: Program Year From To Amount PY 2007-08 TFYC Parking Lot Fence Pine Tree Park $33,004.14 PY 2007-08 Sycamore Ave. Storm Drain Red Hill Avenue Parking $5,000.00 Bay (at Pine Tree Park) PY 2007-08 Sycamore Ave. Storm Drain San Juan Sidewalk $31,975.38 PY 2008-09 Prospect Ave. Traffic Signal San Juan Sidewalk $17,866.71 The Tustin Family Youth Center Parking Lot Fence project was canceled due to public safety concerns, the Sycamore Avenue Storm Drain and the Prospect Avenue traffic signal have been completed; hence, remaining funds are proposed to be reallocated to the Pine Tree Park, Red Hill Avenue Parking bay, and San Juan Sidewalk projects. The public was notified of the proposed amendments to previous Action Plans through the local news paper and postings. The public was given an opportunity to make comments on the proposed amendments during the public comment period between March 1, 2010 and March 30, 2010. No public comments were received. CITIZEN PARTICIPATION PROCESS Federal laws relating to CDBG funds require cities to provide citizens with specific information about the amount of monies expected for the program and the range of activities that may be undertaken with those funds. Federal regulations also require a jurisdiction to hold at least two public hearings to obtain the views of citizens on such issues as housing, other community development needs, and the use of the CDBG monies. The first public hearing was conducted on February 10, 2010, wherein the City Council received public input and testimony, considered and provided staff with direction on the 2410-2015 Consolidated Plan Priority Needs, considered and provided staff with direction on public service performance evaluations for continued funding; and set a second City Council Report CDBG Consolidated Plan & Action Plan April 20, 2010 Page 7 required public hearing on April 20, 2010 to finalize the 2010-2015 Consolidated Plan update and the Program Year 2010-11 Action Plan. This is the second required public hearing and the City Council is asked to consider the draft 2010-2015 Consolidated Plan and 2010-2011 Action Plan (a component of the Five- year Consolidated Plan and an annual application fora CDBG grant), considered proposed amendments to Program Year 2007-08 and 2008-09 Action Plans, and to authorize staff to submit the Consolidated Plan and Action Plan to HUD. The City Council may modify the recommended funding allocations; however, total funding within the Public Services category is limited to a 15 percent maximum allocation, or $131,328. Please note that any change in an allocation amount of an activity under the Public Services category would require a change of funding amount for other activities within the same category. After City Council approval, staff will submit the 2010-2015 Consolidated Plan and 2010- 2011 Action Plan to HUD detailing the City's specific use of the funds for Program Year 2010-11. The Consolidated Plan and Action Plan are due to HUD on May 17, 2010. After receiving final approval of proposed projects, each public service/non-profit organization receiving continued funding will be asked to enter into agreements with the City requiring compliance with all Federal CDBG regulations relating to program management, reporting, auditing, etc. No disbursement of monies can be made to any agency or organization until expenses are incurred and documented to benefit the intended program. E nne V. Hutter Associate Planner Elizabeth A. Binsack Director of Community Development ATTACHMENTS: A. Resolution No. 10-32 B. Table of Public Service Projects Performance Outcome and Year 3 Funding Recommendations C. Table of Requests for Nonpublic Service Funding Application S:\Cdd\CCREPORl12010\CDBG Conplan 2010-2015.doc ATTACHMENT A RESOLUTION NO. 10-32 RESOLUTION NO. 10-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE PROGRAM YEAR 2010-2015 CONSOLIDATED PLAN INCLUDING THE PROPOSED USE OF PROGRAM YEAR 2010-2011 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR INCLUSION IN THE ONE-YEAR ACTION PLAN AND THE AMENDMENTS TO PROGRAM YEAR 2007-08 AND 2008-09 ACTION PLANS FOR SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, under the Housing and Community Development Act of 1974, as amended, Federal assistance maybe provided for the support of community development activities which are directed toward certain specific objectives as set forth in the Act as the Community Development Block Grant (CDBG) Program; and WHEREAS, during the February 10, 2010, public hearing, citizens were furnished with information concerning the CDBG Program, the range of eligible activities, and the proposed use of funds; WHEREAS, on February 10, 2010, a public hearing was held by the City Council to evaluate the performance of the approved public service activities for continuation of funding in Year 3 and review nonpublic service funding allocation for Program Year (PY) 2010-2011 for inclusion in the Action Plan; WHEREAS, the Draft 2010-2015 Consolidated Plan, 2010-11 One-year Action Plan and amendments to PY 2007-08 and 2008-09 Action Plans were noticed in a newspaper of local circulation and posted at City Hall and available for public review and comment for thirty (30) days beginning March 1, 2010, and ending March 30, 2010; WHEREAS, a report has been prepared transmitting to the City Council recommended priority needs, goals, and objectives including public testimony received during the hearing or comments received during the 2010-2015 Consolidated Plan, 2010-11 One-year Action Plan and amendments to PY 2007-08 and 2008-09 Action Plans public review period; WHEREAS, a public hearing was held by the City Council on April 20, 2010 to receive public input and respond to questions and comments on the proposed 2010-2015 Consolidated Plan, 2010-11 One-year Action Plan and amendments to PY 2007-08 and 2008-09 Action Plans; and WHEREAS, the City Council evaluated needs, priorities, goals and objectives based on recommendations of the Citizen Participation Committee, public testimony received during the hearing; and Resolution No. 10-32 Page 2 NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The City of Tustin's 2010-2015 Consolidated Plan, 2010-11 One-year Action Plan and amendments to PY 2007-08 and 2008-09 Action Plans are hereby approved as presented to the Council at their hearing of April 20, 2010, and in Exhibit A of this Resolution. Section 2: Staff is hereby directed to include the proposed use of CDBG Funds for Program Year 2010-2011 in the One Year Action Plan of the Consolidated Plan to be submitted to the U.S. Department of Housing and Urban Development. Section 3: The Director of Community Development is authorized to make minor modifications and execute such documents, certifications, contracts, or other instruments as may be required to carry out the City's Community Development Block Grant Program. Section 4: The City Clerk shall certify to the adoption of this Resolution and shall file a copy of said application with the minutes of this City Council meeting. Section 5: The City of Tustin's Program Year 2007-08 and 2008-09 Action Plans are hereby amended by reallocating unexpended funds of previously approved projects as follows: Program Year From PY 2007-08 TFYC Parking Lot Fence PY 2007-08 Sycamore Ave. Storm Drain PY 2007-08 Sycamore Ave. Storm Drain PY 2008-09 Prospect Ave. Traffic Signal To Pine Tree Park Red Hill Avenue Parking Bay (at Pine Tree Park) San Juan Sidewalk San Juan Sidewalk Amount $33,004.14 $5,000.00 $31,975.38 $17,866.71 PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting on the 20th day of April, 2010. JERRY AMANTE MAYOR PAMELA STOKER CITY CLERK Resolution No. 10-32 Page 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 10-32 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. 10-32 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 20th day of April, 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER, CITY CLERK RESOLUTION NO. 10-32 EXHIBIT A 2010-2015 CONSOLIDATED PLAN CITY OF TUSTIN 2010-2015 Five Year Consolidated Plan 2010-2011 Annual Action Plan City of Tustin Community Development Department 300 Centennial Way Tustin, CA 92780 TABLE OF CONTENTS Table of Contents Application -Standard Form 424 Certifications Executive Summary .........................................................................................................i Summary of Consolidated Plan Process .......................................................................xiv Introduction .....................................................................................................................xv SECTION I -HOUSING AND HOMELESS NEEDS ASSESSMENT PART A. Needs Assessment ..........................................................................................I-2 1. Current Estimates/Five Year Projections .................................................I-2 2. Nature and Extent of Homelessness ........................................................I-10 3. Populations with Special Needs -Other than Homeless ........................I-14 PART B. Lead-Based Paint Hazards ..............................................................................I-23 SECTION II -HOUSING MARKET ANALYSIS PART A. Market and Inventory Characteristics ............................................................II-2 1. Community Description ............................................................................. II-2 2. Population Trends ...................................................................................... II-6 3. Employment Trends ................................................................................... II-15 4. Housing Market Conditions ....................................................................... II-28 5. Housing Costs and Rents .......................................................................... II-34 PART 6. Public Assisted Housing .................................................................................II-66 PART C. Facilities and Services for the Homeless ......................................................II-68 PART D. Facilities and Services for Special Need Groups .........................................II-70 PART E. Barriers to Affordable Housing ......................................................................II-74 SECTION III -STRATEGIC PLAN PART A. Summary of Strategic Plan .............................................................................III-2 PART B. Strategy for Affordable Housing .....................................................................III-9 PART C. Strategy for Homelessness .............................................................................III-20 PART D. Strategy for Special Needs Groups ................................................................III-24 PART E. Non-Housing Community Development Plan ................................................III-25 PART F. Barriers to Affordable Housing ......................................................................III-36 PART G. Lead-Based Paint Hazard Reduction .............................................................III-42 PART H Anti-Poverty Strategy ......................................................................................III-43 PART I. Institutional Structure and Intergovernmental Cooperation ........................III-50 PART J. Coordination ....................................................................................................III-56 PART K. Public Housing Resident Initiatives ...............................................................III-57 SECTION IV -ACTION PLAN Executive Summary ..................................................................:...................................... IV-1 PART A. Housing and Community Development Resources .................................... IV-5 PART B. Summary of Priorities and Statement of Annual Objectives ...................... IV-16 PART C. Description of Activities ................................................................................ IV-25 PART D. Geographic Distribution ................................................................................ IV-26 PART E. Homeless and Other Special Needs ............................................................. IV-29 PART F. Need of Public Housing ................................................................................. IV-31 PART G. Antipoverty Strategy ...................................................................................... IV-32 PART H. Evaluate & Reduce Lead-based Paint Hazards .......................................... IV-32 PART I. Program-Specific Requirements ................................................................... IV-34 PART J. Citizen Participation and Consultation ......................................................... IV-34 PART K. Communication .............................................................................................. IV-36 PART L. Community Vision .......................................................................................... IV-36 PART M. Strategies ........................................................................................................ IV-36 PART N. Action Plan ......................................................................................................IV-36 PART O. Integrated Approach to Planning and Development ..................................IV-37 PART P. Monitoring System .........................................................................................IV-37 LIST OF TABLES SECTION I I-A Housing Assistance Needs of Low 8~ Moderate Income Households ................I-4 1-B Consolidated Plan Income Ranges, Orange County ...........................................I-5 -C 2008 Rental Housing Income Level and Affordable Housing ...............................I-6 I-D 2008 Ownership Housing Income Level and Affordable Housing ......................I-7 -E 2007 RHNA Existing Housing Need ......................................................................I-9 I-F Summary of Annual Counts in Key Risk Categories for Homelessness ......... I-13 -G Special Needs/Non Homeless Subpopulation (HUD Table 1 B) ......................... I-15 -H Social Services for persons aged 65+ ................................................................ I-18 -I Reported HIV Cases Tustin and Orange County 1981-2009 ..............................I-22 -J Estimation of Housing Units with LBP ................................................................I-23 -K Elevated Blood Lead Levels -City of Tustin ......................................................I-24 SECTION 2 II-A Population Growth 1990-2000 ..............................................................................II-7 II-B Age Distribution City of Tustin 1990-2000 .......................................................... II-9 II-C Racial and Ethnic Composition City of Tustin 1990-2000 .................................II-10 II-D Jobs Held By City of Tustin Residents, By Sector .............................................II-15 II-E Household Type by Tenure .................................................................................. II-17 II-F Household Income Distribution By Race and Ethnicity ....................................11-20 II-G Composition of Housing Stock, By Unit Type 1990-2000 .................................. II-28 II-H Occupied Housing Units by Tenure .................................................................... II-29 II-I Housing Vacancy by Tenure and Unit Size .........................................................II-30 II-J Age of Housing Stock ...........................................................................................II-31 II-K Plumbing and Kitchen Facilities by Tenure - 2000 ............................................II-32 II-L City of Tustin, Elevated Blood Lead Levels ........................................................II-33 II-M 2009 Median Home Prices, Tustin and Orange County .....................................II-34 II-N 2000 Housing Values, City of Tustin ...................................................................II-35 II-O 2000 Gross Rent by Unit Size, City of Tustin ......................................................II-36 II-P 2010 Affordable Housing Projects, City of Tustin ..............................................II-36 II-Q 2007 Maximum Affordable Housing Cost, City of Tustin ...................................II-39 II-R Affordability of Orange County Rental Units ......................................................II-41 II-S 2007-2010 Estimated Annual Demand for New Market-Rate Rental Housing .II-41 II-T 2000 Households with Overcrowding, City of Tustin ........................................II-45 II-U Housing Problems For All Households (HUD Table 1 C) ...................................11-47 II-V Housing Inventory by Type of Unit, City of Tustin ...............................................II-49 II-W Low Income Households Overpaying for Housing, City of Tustin .....................11-50 II-X Overcrowded Households, City of Tustin ...........................................................11-51 II-Y SCAG 2007 RHNA Overcrowded Households, by Income Level, City of Tustin II-51 II-Z Renter and Owner- Occupied Housing Units, City of Tustin 1990 and 2000...... II-52 II-AA 2000 Housing Vacancy, City of Tustin ................................................................II-53 II-BB Distribution of Housing Units by Year Built, City of Tustin and Orange Countyll-54 II-CC Distribution of Owner-Occupied Housing Units by Value, City of Tustin ........ II-56 II-DD 2005 Fair Market Rent Schedules, Orange County MSA .....................................11-57 II-EE 2000 Elderly (65+) Disability Status, City of Tustin ............................................ II-59 II-FF Large Households By Tenure, City of Tustin .....................................................II-60 II-GG 2000 Disabled Residents, City of Tustin ............................................................. II-61 II-HH 2000 Poverty by Household Type, City of Tustin ............................................... II-62 II-II 2000 Poverty Level by Presence of Children, City of Tustin ............................. II-63 SECTION 3 III-A Affordable Housing Expense ...............................................................................III-4 III-B Priority Housing Needs (HUD Table 2A) ............................................................. III-8 III-C MCC Income Limits ...............................................................................................III-16 III-D Community Development Needs (HUD Table 2B) .............................................. III-28 III-E 2005-2006 Community Development Block Grant Program Applications .......III-35 SECTION 4 IV-A 2010-2011 Public and Private Resources- Housing and Community Development Activities (Table 1) .................................................................................... IV-6 IV-B 2010-2011 Potential Public and Private Resources- Housing and Co38mmunity Development Activities (Table 2) ........................................................... IV-8 IV-C 2010-2011 Homeless And Other Special Needs Activities ................................ IV-37 LIST OF MAPS Map 1 Areas of Black Concentration .............................................................................II-12 Map 2 Areas of Hispanic Concentration .......................................................................II-14 Map 3 Areas of Low Income Concentration ..................................................................II-23 Map 4 Areas of Very Low Income Concentration .........................................................II-25 Map 5 Areas of Extremely Low Income Concentration ................................................11-27 APPENDICES A. Glossary of Terms B. City of Tustin Census Tracts C. Affordability Gap Analysis D. Summary of Prepayment Eligible and Expiring Section 8 Contracts E. Agencies Contacted F. Legal Notices and Resolutions G. Summary of Citizen Comments H. Monitoring Program 1. Affordable Housing Ordinances City of Tustin Consolidated Plan FY 2010-15 Executive Summary The City of Tustin incorporated in 1927 as a small agricultural community of approximately 200 acres and 900 residents, making Tustin the third oldest city in Orange County. Development in the community was slow at first due, in part, to the Great Depression of the 1930s. Soon after World War II, urban development began to slowly increase in Tustin as it did throughout Southern California. In 1942, the war brought a new kind of growth to Tustin when the U.S. Navy built its Lighter-Than-Air Base on nearby bean fields. In 1951, this base was changed from a naval base to a Marine Corps facility supporting helicopter operations and renamed Marine Corps Air Station (MCAS), Tustin. The MCAS-Tustin later was determined to be a surplus to the needs of the Marine Corps and was identified for closure in 1991. The MCAS-Tustin was fully closed in July 1999. By the 1960s, rising land values and falling grove production induced agricultural landowners 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 continued to grow at a steady pace to reach a 2000 population of 67,504. According to the Department of Finance, the current population of the City of Tustin for the year 2009 is 74,825, reflecting a 10.8 percent change since 2000. Local residents and visitors enjoy the convenience of an airport, golf courses, parks, and community center facilities. Residents and visitors enjoy a central Orange County location, an excellent climate, and a host of cultural activities within Tustin and neighboring communities. Action Plan For FY 2010-11, the City of Tustin will receive $875,521 of Community Development Block Grant funds. The City allocated CDBG funds to a variety of eligible projects to meet the community housing and non-housing needs. Citizen Participation The City of Tustin is the lead agency responsible for overseeing the development of the Consolidated Plan, while the Community Development Department is responsible for implementation of the Plan. To assist the City in accomplishing its Citizen Participation requirements, the Tustin Community Foundation, a nonprofit community organization, has been designated as the Citizen Participation Committee, which makes recommendations to the City Council regarding which public service projects should be funded. Tustin 2010-2015 Consolidated Plan Executive Summary The 2010-2015 Consolidated Plan process started with an informational and public input meeting held on December 9, 2009 and February 18, 2010 at the Tustin Library to discuss the Analysis of Impediments to Fair Housing. On February 16, 2010, the City Council held the first required meeting to receive public input regarding the 2010-2015 Consolidated Plan. On April 20, 2010, the City Council held the second required meeting to receive public input, after which the Council adopted Resolution No. 10-32, approving the 2010-2015 Consolidated Plan, 2010-2011 Action Plan, and authorized staff to submit the funding application to the U.S. Department of Housing and Urban Development. City staff notified 82 public service, housing and community organizations; and, posted a meeting notice in various locations in the City Hall complex, including the Library. Please refer to Appendix E for a complete listing of all agencies contacted during the community planning process, as well as all organizations contributing statistical data to this document. COMMUNITY PROFILE According to the 2000 United States Census, there were 67,504 persons in the City of Tustin. To meet the housing needs of these persons there are 25,406 total units of which 1,575 were vacant (for rent, for sale, or in the process of occupancy) during the Census timeframe. Just under half of the units (49.6 percent) were owner occupied. The population in Tustin grew at an annual rate of 5.68 percent between 1980 and 1990, significantly greater than the 1.98 percent of the surrounding Los Angeles- Orange County Metropolitan Statistical Area (MSA). Growth between 1990 and 2000 slowed somewhat, but was still greater than the .97 percent of the surrounding MSA. Overall growth from 1970 to 2000 was significantly higher in the City of Tustin at 217.7 percent versus 46.2 percent for the entire Los Angeles-Orange County MSA. Furthermore, the average household size in the City increased from 2.42 persons per household in 1980 to 2.92 per household in 2000. According to the 2000 Census, the most significant population growth has occurred largely in the Hispanic and Other racial categories which parallels trends seen Countywide. Tustin's overall population make-up is 44.8 percent white, 34.2 percent Hispanic, 2.64 percent Black, and 18.3 percent Other Races (non-Hispanic). It should be noted that in 2009, the State Department of Finance reported that Tustin's population was 74,825 persons, which is a growth of 10.8 percent since 2000. Tustin 2010-2015 Consolidated Plan Executive Summary HOUSING AND COMMUNITY DEVELOPMENT NEEDS Conditions According to the 1990 Census, the City of Tustin had a total of 19,281 housing units, 95.1 percent of which were occupied. The 2000 Census indicates that occupancy rates have declined somewhat to 93.8 percent. According to the 2000 Census, the City of Tustin had a total of 25,406 housing units in 2000. Although the number of single-family homes has increased, the City's housing stock is dominated by multiple-family units, which comprise 55 percent of the housing stock. The State Department of Finance reported in May 2009 that the City contained 26,215 housing units in 2009. Housing Needs Year 2000 Census data indicates that the total of low-income households (<80 percent area MFI) in Tustin represent 37.34 percent, or 8,898 households. Of these, 70.17 percent or 6,244 households are renters, while the remainder has ownership tenure. Across the board, this circumstance is greatest for households with the lowest incomes. Among the low and moderate-income population, the 2005 Consolidated Plan reported a need for 1,384 units for the Very Low Income; 1,767 units for the Low Income; and 2,092 units for the Moderate Income for a total need of 5,243 affordable units. For 2010, estimates of potential housing need, differentiated between rental and owner households, is provided in HUD Table 2A (Consolidated Plan TABLE III-B) in Section III. It should be noted that this information contains the maximum potential for units, and may exceed the true number of required units by a significant amount. Housing Market Conditions The highest rate of housing construction occurred during the 1960s. A total of 61 percent of Tustin's housing stock were built prior to 1980 and are at least 30 years old. This indicates that over 14,500 units are at the age when rehabilitation may be necessary, especially when maintenance has been deferred. Additionally, a total of 2,792 units will reach 30 years within the next ten years. Of these units, a large percentage was a result of annexation of existing units previously in unincorporated areas of the County. As a result, more units maybe at the age of rehabilitation than the City anticipated. The 2000 median sales price for homes in the City of Tustin was $264,412. According to the 2000 Census, 74.6 percent of homes (8,824 homes) are within the top 20 percent of National Value. However, the median household value of $264,412 featured a significant decline from 1990 values of $325,170.The 2009 median sales price for homes in the City of Tustin was $452,500. Although the price of homes in Tustin has fluctuated over the past three years, prices Tustin 2010-2015 Consolidated Plan Executive Summary iii remain high relative to sales prices in the rest of the southern California region. The 1990 Census data indicated that 50 percent of all rental units in the City rent for more than $701 per month, and three-quarters rent for over $621 per month. According to the 2000 Census, the median gross rent for all units in Tustin was $895. In fact, 60.5 percent of rental households within the City of Tustin (7,261 households) pay rent that is in the national top 20 percent of rental costs. Actual rents are often much higher. According to the Apartment Ratings website, a comprehensive database of apartment ratings, the typical rental price for aone-bedroom apartment is $1,230 amonth, atwo- bedroom would rent for $1,594 a month, and athree-bedroom would rent for $1,800 a month. Rental rates for apartments are generally lower than single-family homes, condominiums, and townhomes. Affordable Housing Needs The 2007 Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SCAG) shows a total of 23,840 households in Tustin. There are approximately 6,190 cost-burdened owner and renter households. Of the total households units, there are 4,285 overcrowded households of which 3,465 units were renter households and 820 units are owner occupied. While high local housing costs create an affordability problem for the cost-burdened owner and renter households, the shortage of larger rental units combined with the affordability problem, contributes to the overcrowding experienced by almost 4,300 households. With the rapid rise of housing costs, instances of overcrowding continue to increase. According to the 2000 Census, 821 owner households (3.5 percent) and 3,569 renter households (29.7 percent) were living in overcrowded conditions. The 1990 Census indicates Tustin's median family income (MFI) was $42,840. Census data shows that 50 percent of all households earn 95 percent of the MFI or $40,600; 20 percent earn 50 percent below the MFI, or $21,240; the other 23 percent earn above $21,420 but below $40,600. For the 2000 Census, the median household income estimate for Tustin is approximately $60,092, as compared with $50,687 for the Los Angeles-Orange County MSA. The Census furthermore reports that 31.2 percent of households (7,435 households) are within the National Top 20 percent for High income. The City's two biggest housing concerns are to preserve the 100 federally- assisted housing units at the Tustin Gardens property which are at risk of conversion to market rates; and, rehabilitation activities to preserve the over 14,500 units which will reach 30 years of age during the next decade as safe and decent housing. The median sales prices for new and existing homes within Tustin has increased and decreased significantly in the last five years, 2007 was the peak of the housing market and has since decreased to prices similar to 2004 and early 2005. The estimated median sales price of a home in 2008 was between $416,000 and $570,000. Tustin 2010-2015 Consolidated Plan Executive Summary iv According to the California Association of Realtors, the average price of a single family home within Orange County in August 2009 was $426,000, while the price of a single family home statewide was $200,000 less. To address current affordable housing needs, the City of Tustin plans to preserve the existing housing stock, construct new units to accommodate the range of incomes in the City, and assist first-time homebuyers in achieving home ownership. Homeless Needs Available statistics currently indicate that the City of Tustin does not have a significant population nor subpopulation of homeless persons or homeless families with children. The City anticipates that homeless persons and homeless persons with children will be assisted on an as needed basis by making appropriate referrals to organizations or agencies that provide shelter, food and other services for homeless persons and homeless families with children. However, the City of Tustin recognizes that homelessness is a regional issue which needs to be addressed by all jurisdictions regardless of individual circumstances. The City identifies the Homeless Assistance Plan, established for the MCAS Tustin Specific Plan area, as one of the strategies to address the homelessness issue. The Homeless Assistance Plan provides assistance for supportive housing and supportive services to help homeless persons and families transition from homelessness to living as independently as possible. The plan includes 192 transitional housing units at the Village of Hope facility to assist in the movement of homeless individuals and families to permanent housing within 24 months and supportive services designed to address the special needs of homeless persons. Other homeless service providers operating in the MCAS Tustin Specific Plan area are the Orange County Social Services Tustin Family Campus, Salvation Army, Orange Coast Interfaith, Families Forward, and Human Options. The City has developed a strategy that will continue to refer homeless persons and homeless families with children to service agencies and organizations. Through financial contributions, the City will support agencies which provide shelter and other services to the homeless. Public and Assisted Housing Needs Although there are no public housing units within Tustin, 100 units within the City are contracted to provide Section 221(D)4 and Section 8 housing. In addition, there are a total of 1,012 other assisted units through the Federal, State and Local funds or programs. Of these projects receiving assistance, the City has identified 277 units at- risk of converting to market rate housing. Tustin 2010-2015 Consolidated Plan Executive Summary v Barriers to Affordable Housing The City's housing affordability is affected by factors in both the private and public sectors. Tustin's existing zoning ordinance allows for a range of residential densities from a maximum 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 and 10 units per net acre in the MHP Mobilehome Park District. In order to keep costs down, the City uses housing set-aside funds to assist with predevelopment costs and gap financing, for projects located in redevelopment project areas. In addition, the City has adopted the State Historical Code which relaxes building code requirements in the City's Cultural Resources Overlay District, which will further reduce rehabilitation costs. All low-income housing projects are provided further assistance with a "one-stop" processing system which helps reduce holding costs incurred by developers and ultimately a unit's selling/rental price. The City of Tustin also offers a density bonus to incentivize the development of affordable housing alternatives and is in the process of amending this ordinance to comply with new changes in the State law. Please refer to Section H of this document for a copy of this ordinance. Fair Housing The city has agreed to affirmatively encourage fair housing practices to ensure that all person have access to safe decent housing within the City of Tustin regardless of race, creed, color, national origin, religion, or handicapped status, and contracts with a non- profit fair housing service provider to provide services for residents within the City. Lead-Based Paint While the City prepared an estimate of the number of units that may possibly contain lead- based paint (LBP), the 1990 Census data revealed that rental properties in Tustin built between the years of 1940-1959 have the largest percentage (55 percent) of lower income households occupying them which may give indication to the greatest area of need for assessment (approximately 154 units). This trend again continued with the 2000 Census. According to the Orange County Public Health -Epidemiology Division, the City of Tustin had six persons who reported incidents of lead poisoning between 1990 and 2000. Between 2005 and 2010 the City of Tustin had one case of children under the age of 16 who met the case definition of requiring a home visit and environmental investigation for the presence of elevated lead levels. Tustin 2010-2015 Consolidated Plan Executive Summary vi The properties most at risk for lead-based paint toxicity are deteriorated units with leaky roofs and plumbing. However, it must be noted that lead-based paint is not the only source of lead poisoning in children. Other sources of lead to which they may have been exposed, and thus causes of elevated blood lead levels are china and pottery, lead painted clay pots containing tamarind candy, and lead-based colorings in some imported spices. The City will implement into its housing policies over the next five years the following: ~ Include lead-based paint hazard reduction as an eligible rehabilitation activity. ~ Review existing regulations, housing and rehabilitation codes to assure lead- based paint hazard reduction is incorporated. ~ Require testing and hazard reduction in conjunction with rehabilitation. ~ Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. Other Issues The City of Tustin has estimated, to the extent practicable, the number of those persons who are not homeless but require supportive housing, including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addiction, persons diagnosed with AIDS and related diseases, and their supportive housing needs. According to the 2000 Census, among the population over 65 years of age in the City of Tustin, 1,249 were living alone, 1,795 reported having a disability, and 293 were living below the poverty level. The Orange County Office on Aging (OoA) reports that as of December 2009, the City of Tustin has approximately 198 elderly individuals within the City who receive supportive services through the County's Social Services Agency, including case management and/or meal services. An additional 845 receive Medi-Cal benefits, as of December 2009. The Social Services Agency (SSA) Adult Services and Assistance Programs division includes programs that serve large numbers of older adults. SSA provides one or more types of services and assistance to persons and families each month. SSA provides services to approximately 13 percent of the County's total 65+ population of 308,748, some of which are duplicated in more than one assistance program. For example, recipients may receive Medi-Cal and Multipurpose Senior Services (MSSP). The City's Senior Center receives 20 requests per year for Shared Housing, and individuals are referred to the Office on Aging and the Orange and Irvine Senior Centers where they have dedicated personnel to assist with shared housing requests. Tustin 2010-2015 Consolidated Plan Executive Summary vii The Orange County Health Care Agency, Adult Mental Health Services (AMHS) division does not keep exact counts of persons with mental illness in each jurisdiction, however, it estimates that approximately three percent of the City's general population or 2,176 persons, based on 2007 population estimates, have some form of mental illness and may be in need of supportive housing in the City of Tustin. The HIV/AIDS Planning and Coordination Unit, under the County of Orange Health Services Agency maintains statistical information on the number of AIDS cases reported and persons living with AIDS. Cumulatively, since 1981, the City of Tustin has had 186 reported cases of AIDS, an incidence rate of 248.6 per 100,000. AIDS cases have been reported in each of the 31 cities within the County of Orange. At this time, the AIDS Services Foundation acts as a referral agency for persons within the City of Tustin requiring HIV/AIDS services. Community Development Needs Tustin's CDBG target area was planned and developed prior to annexation therefore, the area is limited in terms of park and recreational opportunities. As a result, Tustin is giving considerable attention to the area in terms of providing additional private and public youth, adult, and senior services and facilities to supplement those which are heavily utilized at this time. Coordination The City of Tustin coordinates with and maintains a listing of County and State licensed facilities providing supportive housing and acquires updates as necessary from the State's Community Care Licensing - Residential Division Office. The City also coordinates with public and assisted housing providers and private and governmental health, mental health, and service agencies to solicit input though the public participation process. Tustin 2010-2015 Consolidated Plan Executive Summary viii HOUSING AND COMMUNITY DEVELOPMENT STRATEGY Vision for Change The purpose of Tustin's Consolidated Plan is to achieve three basic goals for its citizens: ~ Provide decent housing ~ Provide a suitable living environment ~ Expand economic opportunities Housing Priorities Tustin's 5-year housing priorities include: ~ Preservation of 277 existing affordable units at risk of conversion. ~ Rehabilitation of existing housing stock through the Single and Multi-Family Home Rehabilitation Program; ~ New housing construction for ownership multi-family housing; ~ Multi-Family Rental New Construction/ Acquisition and Rehabilitation; ~ First-Time Homebuyer and/or Foreclosure Negotiated Purchase; ?~ Homeless assistance and Supportive Services ~ Tustin Legacy Ownership Multi-Family New Construction housing ~ Tustin Legacy Rental New Construction housing ~ Administrative support for implementation of the CHAS. Non-Housing Community Development Priorities Tustin's non-housing community development priorities are geared toward creating recreational opportunities for youth; developing Neighborhood Facilities to service youth and adults; and, child care facilities/services. The City will improve the various types of infrastructure in the CDBG target area which was constructed more than 30 years ago. Tustin 2010-2015 Consolidated Plan Executive Summary ix Through the City's full service senior center, services will be enhanced to encourage full participation in the center's programs which may require additional services. Crime prevention activities will be targeted in order to create a safe, healthy living environment. There will be a continuing focus on code enforcement and planning activities for low/mod areas of the City. Anti-Poverty Strategy The City has identified several goals, policies and programs designed to provide adequate, safe and affordable housing for all segments of the population. Some of these goals will ensure that housing is affordable to all segments of the City's population. Accordingly, the City will provide for new affordable housing opportunities; work to preserve affordable housing units in the City; promote the availability of affordable housing for large, low- income families; promote, assist, and facilitate the development of emergency and transitional housing; and, promote equal opportunity housing programs. Housing and Community Development Resources Tustin will target its Federal, State and local housing resources for households at the 37 percent very low, 29 percent low and 34 percent moderate-income levels. CDBG funds will be targeted to address the City's non-housing community development needs such as services to youth and seniors. Coordination of Strategic Plan The City of Tustin will strive to enhance coordination between the City and public and assisted housing providers and private and governmental health, mental health, and service agencies by developing productive working relationships with such agencies by soliciting input through the public participation process. Tustin 2010-2015 Consolidated Plan Executive Summary x ONE-YEAR ACTION PLAN FY 2010-11 Description of Key Projects The Action Plan delineates the City of Tustin's funding priorities and allocations for the use of Program Year 2010-11 Community Development Block Grant (CDBG) funds. The Plan describes: ~ The resources available for program implementation; ~ Activities to be undertaken during the year; ~ Programs for the City's homeless and other special needs groups; and, ~ Other actions taken by the City that have or will be undertaken to implement the Action Plan. The City of Tustin has allocated CDBG funds to a variety of eligible projects to meet community housing and non-housing needs. For Fiscal Year 2010-11 the City of Tustin will receive $875,521 of CDBG funds through the U.S. Department of Housing and Urban Development. The following is a listing of all activities that will be funded for FY 2010-11: Public Services Activities Boys and Girls Club Community Service Programs (ATSC) Community SeniorServ Graffiti Removal (Limited to CDBG Target Areas) Human Options Laurel House Olive Crest Tustin Parks and Recreation Department (Youth Center Staff) Tustin Parks and Recreation Department (Kids Corner) Public Services Subtotal $ 15,000 $ 10,000 $ 20,000 $ 23, 528 $ 5,000 $ 5,000 $ 5,000 $ 28,900 18 900 $131,328 Tustin 2010-2015 Consolidated Plan Executive Summary xi Public Facilities and Improvements Re-lamp Parks: Pine Tree, Pepper Tree, and Frontier $120,000 Mitchell Storm Drain: First Phase Construction $275,000 McFadden Parkette 58 089 Public Facilities and Improvements Subtotal $453,089 Rehabilitation and Preservation Activities Code Enforcement $116,000 Program Administration and Planning Activities Fair Housing Counseling Agency $ 17,412 CDBG Program Administration 157 692 Administration & Planning Subtotal $ 175,104 Grand Total for all Activities ~~ Tustin 2010-2015 Consolidated Plan Executive Summary xii Lead Agencies The City of Tustin is the "Lead Agency" or entity responsible for overseeing the development of the Plan. The Community Development Department is responsible for the day-to-day administration of programs developed to meet the City's goals. To comment on Tustin's Consolidated Plan, please contact: Edme/ynne V. Hutter Community Development Department City of Tustin 300 Centennial Way Tustin, CA 92780 (714) 573-3174 Tustin 2010-2015 Consolidated Plan Executive Summary xiii Summary of Consolidated Plan Development Process In preparing its Consolidated Plan, the City of Tustin contacted many agencies, groups, organizations that provide housing and supportive housing services to residents within the City and in Orange County. Significant aspects of the development process included consultations and cooperation between these groups in order to provide the most current information available. Notification of the first citizen participation meeting was published in the Tustin Weekly on February 4, 2010. Additionally, notification was sent directly to 82 agencies and organizations listed in Appendix E. The public participation meeting for the City's Consolidated Plan was held on February 16, 2010 at 7:00 p.m. at the City Council Chambers located at 300 Centennial Way. The formal public comment period on the complete draft Consolidated Plan commenced on March 1, 2010 and closed on March 30, 2010. Publication of the availability of the Draft Consolidated Plan was published on February 25, 2010 in the Tustin Weekly. A notation of all citizen comments received in reference to the 2010-2015 Consolidated Plan for the City of Tustin is provided in Appendix G. At the close of the formal public comment period, staff presented the final Consolidated Plan document to the Tustin City Council on April 20, 2010 for their approval and direction to submit the document to HUD. Tustin 2010-2015 Consolidated Plan Summary xiv Introduction The overall goal of the community development and planning programs covered by the Consolidated Plan is to develop a viable urban community by providing decent housing and a suitable living environment and expanding economic opportunities principally for low- and moderate-income persons. The Federal government requires that local jurisdictions prepare this document and state within it its plan that the jurisdiction will pursue this goal for all of its community development and planning programs, including housing programs. This Consolidated Plan serves the following functions: A planning document for the City of Tustin, which builds on a participatory process at the lowest levels. 2. An application for federal funds under HUD's formula grant programs. 3. A strategy to be followed in carrying out HUD programs. 4. An action plan that provides a basis for assessing performance. Tustin 2005-2010 Consolidated Plan Introduction xv SECTION I. HOUSING AND HOMELESS NEEDS ASSESSMENT This section discusses the estimated housing needs for the City of Tustin projected for the five-year period commencing July 1, 2010 and concluding June 30, 2015. As required by the U.S. Department of Housing and Urban Development (HUD), the housing data contained in this Section of the Consolidated Plan (Plan) is based on 2000 U.S. Census data, with comparisons to year 1990 U.S. Census data. Additionally, data has been extracted from both the City's 2009 Housing Element and Technical Memorandum, which has received certification from the State Department of Housing and Community Development (HCD), the 2007 SCAG Regional Housing Needs Assessments (2007 RHNA), and the Comprehensive Affordable Housing Strategy (2008-2018) prepared for the City of Tustin and the Tustin Community Redevelopment Agency (CRA), adopted June 17, 2008. The discussion also reflects consultation with social service agencies concerning the housing needs of children, elderly persons, persons with disabilities, homeless persons, and other persons served by such agencies, and the citizen participation process. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-1 PART A: NEEDS ASSESSMENT 1. Current Estimates/Five-Year Projections This portion of the Consolidated Plan includes an estimate of Tustin's significant current needs for housing assistance for extremely low-income, low-income, moderate-income, and middle-income families, for renters and owners for elderly persons, for single persons, for large families, for persons with HIV/AIDS and their families, and for persons with disabilities. A description is also included of the extent to which cost burden and severe cost burden (as defined in Appendix A, Glossary of Terms), overcrowding (especially for large families), and substandard housing conditions are being experienced by each of the income categories listed above compared to the City as a whole. HUD regulations for preparation of the Consolidated Plan also require the City to determine the extent to which any racial or ethnic group has disproportionately agreater need for any of the above income categories. a. Extremely Low-Income/Low-IncomelModerate-Income/Middle-Income Housing Assistance Needs of Low & Moderate Income Households -Table I-A provides information about the housing assistance needs of very-low, low and moderate income households relative to the cost of housing and problems with housing units. The table distinguishes households by tenure type and specific sub-categories are highlighted (elderly, small-related households, large related households). HUD requirements for preparation of a Consolidated Plan define cost burdened households as those with 30 percent of their income going towards rent-plus-utilities or mortgage-plus-principal and interest; while severely cost burdened households spend 50 percent or more of their income on rent-plus-utilities or mortgage-plus-principal and interest. Year 2000 Census data indicate that the total low and moderate-income households (eaming less than 80 percent of Median Family Income (MFI)) in Tustin represent 38 percent, or 8,898 households. Of these, 70 percent or 6,244 households are renters, while the remaining 2,654 are owner occupied. Rental households are also reporting higher percentages of cost burden and housing problems. Across the board, this burden is greatest for households with the lowest incomes and gradually decreases in incidence as income increases. Overall, 82 percent of rental households eaming less than 80 percent of MFI or 5,135 of Tustin's rental households are experiencing one type or more of a housing problem, including cost burden greater than 30 percent of income, overcrowding, and units without complete kitchen or plumbing facilities. As the 2000 Census demonstrates, when compared with all 23,780 households within the City of Tustin, this burden is even more evident as 45 percent of households at all income levels citywide experience some type of housing problem. In 2006, SCAG reported that, across all income levels, 6,190 Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-2 households out of 23,840 in the City are cost burdened. This represents 26 percent of the total households in the City. In addition to the income limits for households that are considered low and moderate as defined by HUD, Tustin must also be responsive to the SCAG RHNA model, to meet its fair share of affordable housing for the region. Existing need data is intended as a planning aide for jurisdictions in programming, goal setting, and allocation. It is not intended for construction target nor is the jurisdiction expected to solve the existing need, it is only one projection of housing conditions. The RHNA is a key tool for SCAG and its member governments to plan for this growth. The RHNA, helps local govemments quantify the need for housing within each jurisdiction. Communities will then plan, consider, and decide how they will address this need through the process of completing the Housing Elements of their General Plans. The RHNA does not necessarily encourage or promote growth, but rather allows communities to anticipate growth, so that they can grow in ways that enhance quality of life, improve access to jobs, transportation, and housing, and not adversely impact the environment. The RHNA forecasted both Existing Need and Future/Construction need. Existing Need is defined by the estimated number of households with one or more Federally-defined "housing problems." These problems include: (1) overcrowding (more than 1.01 persons per bedroom) (2) un-affordability/cost-burden (housing costs in excess of 30 percent of gross household income) (3) substandard housing (lack of adequate kitchen, toilet, heat or plumbing facilities) The SCAG 2007 RHNA Future/Construction Need is a projection of future housing needs to accommodate forecasted population and employment growth. The future need for housing is determined primarily by the forecasted growth in households in a community. Each new household, created by a child moving out of a parent's home, by a family moving to a community for employment, and so forth, creates the need for a housing unit. To project growth, demographers examine historical growth patterns, job creation, household formation rates, and other factors to estimate how many households will be added to each community. Finally, the RHNA considers how each jurisdiction might grow in ways that will decrease the concentration of low-income households in certain communities. The need for new housing is distributed among income groups so that each community moves closer to the regional average income distribution. The housing need for new households is then adjusted to account for an ideal level of vacancy needed to promote housing choice, moderate cost and acceptable levels of housing upkeep and repair. In the SCAG region, many communities currently have more than the ideal number of vacancies, and thereby the vacancy adjustment is, in those cases, subtracted from the total housing need. A second adjustment is made to account for units expected to be lost due to demolition, natural disaster, or conversion to non- housing uses. The sum of these factors, household growth, vacancy need (generally a Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-3 negative number), and replacement need, form the construction need for a community. According to the 2007 SCAG RHNA, the City of Tustin Future/Construction Need is 2,380 units over the seven and a half (7.5)-year period ending in June of 2014. The primary determinant of housing needs for a region is household growth, which is determined by the region's RTP growth forecast. Beyond accommodation of household growth, however, it is understood that the region must maintain an adequate supply of vacancies and replace housing units in the existing stock that are expected to be lost due to demolition, natural disaster, and conversion to non-housing units, in order to meet all housing needs. The RHNA also identifies the need for units that are affordable to various income categories, similar to HUD as shown in Table I-A. Table I-A 2007 RHNA Projected 2006-2014 Year Housing Needs City of Tustin Total 2006-2014 Percent Housing Need of Total Very Low Income (<50%) 512 21.5% Low Income (51-80%) 410 17.2% Moderate Income (81-120%) 468 19.6% Subtotal-Low and Moderate 1,390 58.4% High Income (>120%) 991 41.6% Total Housing Need 2,381 100.0% Source: Southern California Association of Governments (SCAG), 2007 RHNA. Table I-A indicates a need in Tustin for lower income households and housing affordable to moderate and upper income households. Based upon the City's 2009 Housing Element, the City of Tustin has been successful in its progression toward meeting RHNA construction needs. Since January 1, 2006, the City added 680 units of housing for low/moderate income households and also added 1,620 units available to households earning above moderate income levels. Thus, as of 2009, the City has satisfied approximately 96 percent of its total RHNA housing construction need. Furthermore, the reuse of the MCAS Tustin site will provide the City with nearly 390 acres suited for residential development, with potential for 4,049 new Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-4 housing units. Based on State Redevelopment Law concerning Inclusionary Housing and the proposed Specific Plan, at least 15 percent of the units at the former MCAS site, or 607 units 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, with 140 units for Low-Income households and 224 affordable to Moderate Income households. Finally, in developing a strategy for utilization of the Tustin Community Redevelopment Agency housing set-aside funds (derived from 20 percent of the tax increment collected by the Tustin Community Redevelopment Agency), the Comprehensive Affordable Housing Strategy (2008-2018) established a range of income levels to correspond to both common State and Federal program guidelines for renters and owners, providing a cohesive method to plan for and target affordable housing needs specific to the City of Tustin. These income levels are utilized to maximize the competitiveness of projects applying for allocation of nine-percent tax credits. Table I-C and Table I-D depicted the income limits for Rental Housing and Ownership Housing respectively. Table I-B summarizes income ranges based on HUD's 2009 Income Limits. Table I-B Consolidated Plan Income Ranges Orange County Extremely Low-Income 0-30% MFI <$27,900 Low-Income 31-50% MFI $27,901-$46,500 Moderate-Income 51-80% MFI $46,501-$74,400 Middle-Income 81-95% MFI $74,401-$81,795 Based on a 2009 median household income for a family of four in Orange County of $86,100. Source: HUD 2009 Income Limits Affordable monthly housing cost is defined as 30 percent of annual household gross income. Renters' affordable housing cost is defined to include monthly rent and utility costs. For homeowners, affordable expense is defined to include principal and interest, loan insurance, taxes, fire and casualty insurance, utilities and condominium fees. For ownership units, affordable housing cost is defined at the top of each income range. Table I-C, below, summarizes these definitions for rental housing while Table I-D provides this information for owned properties: Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-5 Table I-C Rental Housing Income Level and Affordable Housing Cost Definitions' City of Tustin 2008 Affordable Housing Strategy Income 2007 Income Limit Monthly Level for a Family of Housing 4 persons Cost <50% $43,300 30% of 48% $984 Median (48% of Median Income Income) II 51-80% $69,300 30% of 60% $1,181 Median (60% of Median Income Income) III >80% $94,710 30% of 110% $2,164 Median (110% of Median Income Income) Based on 2007 median income of $78,700 for Orange County for a family of four, and average of 4 persons per three-bedroom unit for purposes of calculating household income, including utilities. Source: Tustin Affordability Gap Analysis, Comprehensive Affordable Housing Strategy (2008-2018) (Affordability Gap Tables 8). Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-6 Table I-D Ownership Housing Income Level and Affordable Housing Cost Definitions' City of Tustin 2008 Affordable Housing Strategy Income 2007 Assumed 2007 Income Limit Monthly Range Income Limit for a Family of Housing 4 persons Cost <50% of $43,300 30% of 50% $984 Median (50% of Median Income Income) II 51-80% of $69,300 30% of 70% $1,377 Median (70% of Median Income Income) III >80% of $78,700+ 35% of 110% $2,525 Median (110% of Median Income Income) ~ Based on 2007 median income of $78,700 for Orange County for a family of four, and average of 4 persons per three-bedroom unit for purposes of calculating household income. Assumptions include utility allowance, homeowner association fees, property taxes, and insurance costs. Source: Tustin Affordability Gap Analysis, Comprehensive Affordable Housing Strategy (2008-2018) (Affordability Gap Tables 9). In addition to identifying target income limits and affordable costs, the Comprehensive Affordability Housing Strategy (2008-2018) included an Affordability Gap Analysis. Because low and moderate-income households cannot afford to pay the rent or mortgage payments necessary to cover the cost of constructing and operating a typical apartment or owning a home, public funds and other assistance are needed to meet affordable housing needs. The analysis, a copy of which has been included in Appendix C, identifies the potential "subsidy gap" between housing costs for a range of housing product types and the housing payments affordable to families at different income levels. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-7 To summarize the findings of the analysis, it was determined that the renter affordability gaps (see Table I-C) are larger for Level I and Level II income households who are earning less than 80 percent of the area median income, or less than $69,300. Additionally, Level III households can afford rentals with smaller subsidies, and in some cases no subsidies would be required. For ownership housing, affordable monthly costs will vary depending upon the type of ownership housing prototype due to alternative utility allowance, homeowner association fees, and property tax assumptions. b. Changes in Housing Needs 1) General Need According to the City's Comprehensive Housing Affordability Strategy (CHAS) Housing Needs Assessment, rehabilitation of the existing housing stock will be one of the City's biggest concerns over the next decade. A total of 39.7 percent of the City's housing stock was built prior to 1969 and is at least 30 years old. This indicates that 9,729 units are at the age when rehabilitation may be necessary, especially if maintenance has been deferred. Deferred maintenance is especially a problem in lower income households and those homes where cost burden is an issue as they typically do not have the funds available for housing repair activities. Additionally, a total of 6,170, or 25.2 percent of the housing units within the City of Tustin were built between 1970 and 1979 and thus will reach 30 years of age this decade. Of these units, a large percentage was a result of annexation of existing units (constructed prior to annexation) in previously unincorporated areas of the County. Therefore, more units maybe at the age of rehabilitation than the City anticipated. Preservation of assisted housing units at risk of conversion to market rates has also been identified to be important for maintenance of the City's existing affordable housing stock. According to 2007 RHNA, high local housing costs, discussed previously, relative to income creates an affordability problem for 6,190 low and moderate-income (up to 80 percent of Median Income) cost-burdened owner and renter households in Tustin. The affordability problem and shortage of larger rental units contributes to the overcrowding experienced by 4,285 households as shown on Table I-E below. Table I-E summarizes the 2007 RHNA Existing Housing Need within the City of Tustin. This data is currently being updated and future planning for the City of Tustin will take into account this information once it is available. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-8 Table I-~ 2007 RHNA Existing... Housing.:. Need City of Tustin Income Level <30% 31 %-50% 51 %-80% 81 %-95% >95% Total All Households Renters 1,585 1,910 2,780 1,670 4,040 11,985 Owners 525 760 1370 885 8,315 11,855 Total 2,110 2,670 4,150 2,555 12,355 23,840 Households wi th Housin Problems- Renters 1,395 1,790 2,085 700 750 6,720 Owners 390 490 820 510 1,755 3,965 Total 1,785 2,280 2,905 1,210 2,505 10,685 Households wi th Cost Burderr> Renters 855 865 940 260 160 3,080 Owners 340 350 585 425 1,410 3,110 Total 1,195 1,215 1,525 685 1,570 6,190 Households wi th Overcrowdin Renters 520 140 1,100 425 550 3,465 Owners 45 870 225 85 325 820 Total 565 1,010 1,325 510 825 4,285 Overcrowding definitions based on SCAG's definition of more than 1.01 persons per bedroom. HUD defines overcrowding as more than 1.0 person per room. Source: SCAG 2007 RHNA To address its current and future housing needs, Tustin will need to develop a range of housing programs which seek to rehabilitate and preserve the existing housing stock, construct new units affordable to the range of incomes in the City, and assist first-time homebuyers in achieving home ownership. 2) Disproportionate Racial or Ethnic Need The Consolidated Plan must identify the specific needs of any racial or ethnic group that has a disproportionately greater need in comparison to the needs of each specific income category as a whole. For this purpose, disproportionately greater need exists when the percentage of persons within a certain income category who are members of a particular racial or ethnic groups is at least 10 percentage points higher than the percentage of persons in the category as a whole. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-9 According to data taken from the 2000 Census, the only racial group that has a disproportionately greater need as defined by HUD are non-Hispanic Blacks, who have proportionately the lowest median income at $44,348. By comparison, the average median income for all households in 2007 is $78,700. A total of 43.6% of the 798 households defining themselves as Black for the 2000 Census are within the very low- income category (which is defined as 0 to 50 percent of the median family income). This racial group represents about 3.1 percent of all persons in the community, for a total of 1,970 persons, a decrease of 925 persons or 32 percent, likely due to the closure of the MCAS-Tustin. The reuse of the MCAS base will occur primarily through new residential, office, retail, industrial, hotel, and golf course development. In addition, a portion of the existing base housing will be rehabilitated and sold as both market-rate and affordable housing. At build out of the MCAS property, the facility is projected to include over 9 million square feet of non-residential development and 4,500 single and multi-family homes. 2. Nature and Extent of Homelessness a. Needs of Sheltered and Unsheltered Homeless 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 2009 Orange County Homeless Census and Survey, the County has 8,333 homeless individuals of which an estimated 5,724 are unsheltered, and 2,609 in shelters. The Homeless Census and Survey stated that 1,647 homeless persons were in transitional shelters and 962 in emergency shelter facilities. An additional 324 homeless persons were housed in institutions such as jails, hospitals, and rehabilitation facilities, but do not meet HUD's homeless definition for the census and survey purposes. Based on a HUD-recommended formula, the report estimated that 21,479 people in Orange County experience homelessness annually. The report also stated that 3,578 are identified as chronically homeless, 1,904 as severely mentally ill, 68 are suffering from HIV/AIDS, 475 are victims of domestic violence and 2,683 suffer from chronic substance abuse. HUD defines chronically homeless as a person who is "chronically homeless" is an unaccompanied homeless individual with a disabling condition who has either been continuously homeless for a year or more OR has had at least four (4) episodes of homelessness in the past three (3) years. In order to be considered chronically homeless, a person must have been sleeping in a place not meant for human habitation (e.g., living on the streets) and/or in an emergency homeless shelter." Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-10 A disabling condition is defined as "a diagnosable substance use disorder, serious mental illness, developmental disability, or chronic physical illness or disability, including the co- occurrence of two or more of these conditions." A disabling condition limits an individual's ability to work or perform one or more activities of daily living. An episode of homelessness is a separate, distinct, and sustained stay on the streets and/or in an emergency homeless shelter. A chronically homeless person must be unaccompanied and disabled during each episode. The 2009 Orange County Homeless Census and Survey report, generated by Applied Survey Research, created a demographic profile of homeless persons seeking services in Orange County. The survey yielded 787 respondents, in which 56 percent of them had been homeless for a year or more. The report showed that 56 percent of the respondents were between the ages of 41 and 60 years old. Seventeen percent of the respondents had dependent children living with them. Overall, survey respondents most frequently cited loss of job or unemployment as the primary reason that led to their homelessness. Police reports and windshield surveys within the City of Tustin 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. b. Subpopulations With the limited and out of date statistical information available, it is not practicable to assess the needs of the subpopulations for Tustin. As indicated, homeless individuals encountered by City staff and/or the Police Department are assisted once an assessment of their needs are made. The City has not documented actual statistics for each individual encountered. c. Needs of Persons Threatened with Homelessness At this time, the City of Tustin is not able to ascertain the specific characteristics and needs of low-income individuals and families with children (especially those with income below 30 percent of area median income) who are currently housed but threatened with homelessness. This is due in part to the reasons stated above, in that homeless persons and families appear to relocate or potentially seek assistance from shelters or services in adjacent cities. However, there is some indication that female-headed households may experience the greatest threat. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-11 Female-headed households tend to have lower incomes and special needs, thus limiting housing availability for this group. One of the more dramatic changes in types of households since the 1970 Census has been the increase in this group. According to the 1970 Census, approximately 8 percent of the family households were female headed. The 1980 Census showed an increase to 17.8 percent, or 1,578 households. However, by 1990, while the absolute number of female-headed households increased to 2,054, their proportion of the total population declined to 11.6 percent. According to the year 2000 U.S. Census, 12 percent of the households in the City were female headed. By comparison, only 1,050 households were male headed, or roughly 5 percent of the total households in the City. Furthermore the 2000 Census indicates that there are 2,478 single parent households in the City of Tustin, indicating an additional instance of housing cost burden as single parent households of both sexes often face a disproportionate housing cost burden. Furthermore, of the 2,054 female-headed households in 1990, 1,178 had children 18 years of age or younger. In 2000, of the 2,842 female-headed households, 1,779 had children under 18 years of age. For these families it is important that the home be close to schools and services as a necessity for their daily living requirements, while they will also derive great benefit from safe parks, streets, and recreational areas. Of the total number of female heads of household in 1990, 27 percent were below the poverty level. By 2000, this number decreased to 15 percent of female-headed households, or 367 households, who were living below the poverty level. For these households, locating 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. In fact, to those persons who are living below the poverty level, almost all, if not all, safe decent housing will create a sever cost burden to these households. Based upon these statistics, the City of Tustin will explore program options to assist in the provision and funding services of temporary housing such as transitional housing or single room occupancy housing, and a homeless prevention emergency loan program. Certain subpopulations in the County of Orange are at higher risk to homelessness because of their situation. The 2009 Orange County Ten-Year Plan to End Homelessness estimates that 615 to 3,076 parolees, 58 to 73 emancipated foster youth, 3,589 veterans, and 6,938 individuals with mental illness are homeless. It is important to note that the City of Tustin participates in the CoC Homeless Assistance Program organized by the County of Orange, therefore these figures represent needs countywide. In the 2000 Continuum of Care Gap Analysis, the County of Orange estimated that over 200,000 supportive services are needed to fill gaps in the County's CoC system, of which Tustin fills a small portion. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-12 Table I-F Orange County Summary of Arltzual founts in Kev Risk Categories for Homelessness Subpopulation Total Estimated Estimated Level of Number Percent Number Confidence in in Cohort Homeless Homeless Estimate Acute Povert 124,756 N/A N/A N/A Public Assistance 96,373 3% 2,469 Likel low estimate Parolees (Federal & State) 6,541 10-50% 615-3,076 25% likely closest estimate Emanci ated Foster Youth 146 40-50% 58-73 Stron estimate Veterans 156,053 2.30% 3,589 Fairly strong estimate Mental Illness 40,186 16% 6,938 Fairly strong estimate Substance Abuse 11,795 20% 2,334 Fairly strong estimate Source: 2009 Orange County Ten-Year Plan to End Homelessness Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment 1-13 The County of Orange has identified the following unmet needs for homeless individuals and persons in families with children: ~ Permanent supportive housing ~ Substance abuse treatment for homeless individuals and persons in families with children ~ Mental health care for homeless individuals and persons in families with children ~- Housing placement services for homeless individuals and persons in families with children ~ Programs for homeless individuals, and persons in families with children, who are physically disabled ~ Programs for homeless individuals that are chronic substance abusers ~ Programs for homeless individuals (and persons in families with children) who are seriously mentally ill ~ Programs for homeless individuals (and persons in families with children) who are dually-diagnosed ~ Programs for homeless youth (17-21) 3. Populations with Special Needs -Other Than Homeless a. Need for Supportive Housing Based on overall needs within the County of Orange, the City of Tustin has estimated, to the extent practicable, the numbers of those persons who are not homeless but require supportive housing, including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addiction, persons diagnosed with AIDS and related diseases, and a description of their supportive housing needs. Table I-G (HUD Table 1 B) summarizes these priority needs and the estimated dollar amounts to address the need for this group: Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-14 Table 1-G (HUD Table 1 B) Special Needs/Non-Homeless Subpopulations Table 1 B S ecial Needs of the Non-Homeless Sub-Populations Priority Need High, Medium, Low, No Such Need Estimated Priority Units Estimated Dollars to Address Elder) H 4,221 $125,000 Frail Elder) H 1,644 $25,000 Severe Mental Illness N 12,400 0 Develo mental) Disabled N 10,168 0 Ph sicall Disabled L 16,221 $93,500 Persons w/ Alcohol/Other Drug Addictions M 3,000 0 Persons w/ HIV/AIDS L 534 0 Other S eci Total 48,188 $243,500 Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-15 Non-Homeless Special Needs Strategy In addition to the homeless, certain segments of the population may require assistance due to various special needs. These people include the elderly, frail elderly, severely mentally ill, developmentally disabled, physically disabled, persons with alcohol/other drug addictions and persons with HIV/AIDS. While these individuals may have permanent or temporary housing, meeting their specific needs may be beyond the scope of their means. Senior citizens and the disabled are the largest groups with special needs and they are especially vulnerable to the lack of housing choices during a supply and demand gap and resulting affordability crisis. Unlike the homeless, whose needs are addressed by the County as a whole, issues regarding these individuals are more commonly addressed under various jurisdictions. The unique requirement of Orange County's special needs population are provided below. Elderly: Elderly households continue to live in housing that costs too much, is substandard, or fails to accommodate their needs. Currently, 60 percent of the participants in the Orange County Housing Authority's (OCHA's) Section 8 certificate program are classified as senior citizens or disabled. Seniors also make up a large proportion of homeowners who are low-income. Many are struggling to maintain their homes on limited incomes, and many experience a cost burden in excess of one-third of their income. Adequacy: Many seniors live in housing in need of repair or rehabilitation. These substandard dwellings pose a threat to their safety and welfare. Of those seniors renting, many have annual incomes well below poverty thresholds. Combined with lacking assets, they have a limited capacity for finding better housing at market rents. Affordability: High housing cost is the most prevalent housing problem within the elderly population and many are severely cost burdened, paying more than half of their incomes for housing. Accessibility: The number of elderly with physical limitations totals approximately 20 percent of the population. The incidence of these limitations and the need for home modifications increase with age. Of those households headed by persons 85 or older, one in eight needs functional modifications to their shelter. As the Baby Boomers age, this population is expected to increase dramatically. Frail Elderly: Certain portions of the elderly population have various mobility and care limitations, which designate them as "frail." Severe Mental Illness: According to the Orange County Health Needs Assessment (OCHNA), approximately three percent of the adult U.S. population and a similar Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-16 proportion of children and adolescents suffers from severe mental illnesses such as schizophrenia, bipolar and uni-polar affective disorder, schizo-affective disorder, autism, panic disorder, and obsessive-compulsive disorder. However, not all mentally ill persons require supportive housing. Those who are higher functioning and/or have private insurance are less likely to need assistance. Developmentally Disabled: Nationally, the accepted percentage of the population, which can be categorized as developmentally disabled is one to three percent. This figure is published by the Association for Retarded Citizens (ARC), a national organization for retarded and disabled citizens. Physically Disabled: Persons who are physically disabled include those who have a work disability, a mobility limitation, or a self-care limitation. Persons with Alcohol/Other Drug Addictions: According to the Substance Abuse and Mental Health Administration's (SAMHA) Treatment Episode Data Set (TEDS) the annual admissions rate for drug and alcohol abuse for California is approximately 0.5 percent. Persons with Hll//AIDS (PWAs): Orange County is experiencing a increased rate of AIDS cases among Hispanics, African Americans, Southeast Asians, women, and those who have contracted the disease through heterosexual contact. Due to the progression of the disease, the housing and supportive service goals are different from other populations with special needs. Persons with HIV/AIDS (PWAs) are usually unable to work and are dependent on Supplemental Social Security Income (SSI) which nets them approximately $10,000 per year. In addition, as the disease progresses, PWAs need supportive housing once they are no longer able to live at home. Elderly/Frail Elderly The 2000 Census shows that in Tustin among the 65+ population, 1,249 were living alone, 1,795 reported a disability, and 293 were living below the poverty level. Population projections for 2005 are not available. The Department of Finance does publish population projections, but they are on a County, not City level. The Orange County Social Services Agency reports that as of December 2009, the City of Tustin has approximately 198 elderly individuals within the City who receive supportive services through the County's Social Services Agency, including case management and/or meal services. An additional 845 receive Medi-Cal benefits, as of December 2009. Through Community SeniorServ, a non-profit organization with programs such as meal delivery, congregate meals, adult day services, and case management to assist elderly too frail to perform daily living tasks. Tustin has 52 current participants in the meal delivery program and 295 participants in the congregate meals program. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-17 Table I-H provides information on residents within the City of Tustin who are over the age of 65 and receive various Orange County-operated programs administered by the Social Services Agency, as of December 2009. Table I-H City of Tustin Social Services for persons aged 65+ Pro ram Partici ants Adult Protective Services APS 6 Medi-Cal 875 In Home Su portive Services IHSS 160 Food Stam s 32 Multipurpose Senior Services Pro ram MSSP 13 Source: Orange County Social Services Agency *CalO tima administers MSSP and rovided the data, A ril 2010. In addition to the above programs, SSA provides Adult Protective Services to protect frail elders and dependent adults from abuse and to enable low-income elderly, disabled, and blind individuals to remain safely in their own homes. The clients could be anyone who has suffered from financial, physical, mental, or sexual abuse, neglect by another, abandonment or self-neglect. The City's Senior Center receives 20 requests per year for Shared Housing, and was able to refer them to organizations that provide placement services for shared housing. Elderly individuals in need of Meal Delivery Services is estimated to be approximately 347 individuals. The overall aging of persons within the County will continue to impact and increase the need for supportive services directed at addressing their unique needs. In fact, according to the 2003 Condition of Older Adults Report generated by the County of Orange, adults 55 years and older make up 17.8 percent of the population in Orange County. Those 65 and older represent slightly more than 9 percent of the total population in Orange County and are divided 60 percent female and 40 percent male. Over the last decade Orange County's population has grown at a faster pace than that of California. There was also a faster growth in those 65+ and those 85+. Orange County's overall population increase between 1990 and 2000 was 18.1 percent compared with California's 13.8 percent. The 65+ population increased 27 percent in Orange County versus 14.7 percent in California. The number of persons 85 years of age and older increased 47.4 percent in Orange County and 42.3 percent in the state. The need for supportive services is especially great given that: Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-18 ~ Orange County elderly adults have a lower median household income than that of the county in general. ($45,420 for 65-74 year olds and $30,856 for 75+ year olds versus $58,820 for the county in general). ~ 31.8 percent of all older persons reporting income in 2001 made less than $10,000; the median income reported was $14,152. ~ 66 percent of Orange County adults aged 65+ indicated they were employed for wages; 65 percent of those aged 75-84 were employed for wages. ~ Only 2 percent of Orange County adults aged 65+ reported being "retired." ~ 6.2 percent of Orange County seniors have incomes below the poverty level. Developmentally Disabled Using the standard of one to two percent of the total 2009 City population, an estimate of 750 to 1,497 persons within the City of Tustin may have a severe level of mental illness. Severe Mental Illness The Orange County Adult Mental Health Services (AMHS) provides rehabilitative mental health services and episodic treatment services to Orange County Special Needs population. The AMHS does not retain statistics for individual cities within the County. However, it estimated that in the general population about 3 percent have some form of mental illness. Thus, of the City's general population of 74,825, roughly 2,244 persons have mental illness. Of these persons, standard estimates place over 90 percent of this subpopulation with incomes below the poverty level. The AMHS identified the need for additional housing options such as licensed care facilities, transitional housing, and new permanent housing to assist the already overburden existing system of care. The AMHS also anticipates an increase in this special needs population especially among the mentally disabled homeless persons with substance abuse and arrest record. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-19 Physically Disabled The Orange County Health Agency does not retain statistics for individual cities within the County and therefore is not able to provide an accurate estimate of physically disabled persons within the City. Therefore, it is not practicable for the City to estimate the supportive housing needs. of this population. Alcohol/Other Dru4 Addiction The Orange County Health Care Agency -Alcohol and Drug Abuse Services division, (ADAS) does not retain statistics for individual cities within the County and could not provide an estimate of the population. Therefore, it is not practicable for the City to estimate the supportive housing needs of this population. However, the ADAS identified the need for additional funding opportunities to increase the total number of substance abuse services beds and expand the range of services. The ADAS identified the following as their unmet needs: adolescent inpatients and residential detoxification programs, short term adolescent recovery programs, dually diagnosed detoxification and recovery programs, non-secured custodial treatment facilities and transitional recovery facilities. AIDS and Related Diseases The AIDS Coordinator for the Orange County Health Care Agency estimates that the City of Tustin currently has four persons requiring supportive housing. Currently, the AIDS Services Foundation acts as a referral agency putting persons with special needs in contact with providers. In January 2009, the Orange County HIV Planning Council and Orange County Health Care Agency Public Health Services completed the Comprehensive HIV Services Plan. Within the Plan, the Committee indicated the need of coordination between the AIDS housing and service-providers, advocates, and people living with HIV/AIDS (PLWH/A) with mainstream advocacy and homelessness groups in order to increase the effectiveness of service delivery. According to the 2009-2011 Comprehensive HIV Services Plan developed for Orange County area: ~ The top five most important services for PLWH/A were (1) medical care, (2) financial assistance for medications and insurance premiums, (3) basic dental care, (4) case management, and (5) advance dental care. ~ Geography and cost of living present barriers to care for PLWH/A in Orange County. The overall cost of living in Orange County is 55 percent higher than the national average and the population is dispersed, which may result in Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-20 care and service locations being 25 miles or more from the residence of a person living with HIV/AIDS. ~ Barriers for Latinos and African Americans in seeking or remaining in care are the fear of medication, fear of community response, lifestyle, denial, mental illness and/or depression, immigration issues, cost, and doctor care. Beginning July 1, 2002, human immunodeficiency virus (HIV) infection has joined the list of reportable diseases in California. HIV is reportable via anon-name code. Similar to AIDS reporting, health care providers and laboratories are required to report individuals with HIV infection to the health department within seven calendar days. Based on the County of Orange, Health Care Agency's 2009-2011 Comprehensive HIV Services Plan: ~ The first resident case of AIDS in Orange County was reported to the Centers for Disease Control (CDC) in 1981. It has been estimated that approximately 6,676 people with HIV/AIDS are currently living in Orange County as of December 2009, of which 5,074 are estimated to be diagnosed cases of HIV/AIDS; the remaining 1,602 individuals are assumed to be unaware of their HIV status. ~ According to the latest available data (as of December 2007), Orange County has reported more AIDS cases than 26 U.S. states and ranks 28th in number of AIDS cases reported among the 100 metropolitan areas (recognized by the CDC) with 500,000 or more population. ~ With the advancement of available therapies, AIDS death rates have declined slightly from 1.9 per 100,000 in 2001 to 1.8 per 100,000 in 2005. Between 2006 and 2007 the number of PLWA increased by 5.5 percent. The number of new cases diagnosed in 2006 and 2007 was 498 new AIDS cases. Since the first case was diagnosed in 1981, the cumulative mortality rate in Orange County has been 52 percent. Information from the HIV/AIDS Reporting System for December 2009, reveals the following information about instances of HIV/AIDS in the City of Tustin, presented in Table I-I below: Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-21 Table I-1 Re orted HIV Cases, Cit of Tustin and Oran a Count , 1981- 2009 Cit of Tustin Oran a Count Race/Ethnici Number Percent Number Percent White 96 51.6% 4,605 60.7% African American/Black 20 10.8% 381 5.0% His anic 64 34.4% 2,382 31.4% Asian/Pacific Islander 6 3.2% 197 2.6 Other/unknown 0 0.0% 27 0.4% Sex Number Percent Number Percent Male 158 84.9% 6,834 90.4% Female 28 15.1 % 728 9.6% Mode of Ex osure Number Percent Number Percent Men havin Sex with Men MSM 120 64.5% 5,437 71.6% In'ection Dru Use IDU 18 9.7% 826 10.9% MSM +IDU 9 4.8% 415 5.5% Heterosexual contact 22 11.8% 523 6.9% Hemo hilia or coa ulation disorder <5 NC 38 0.5% Transfusion Teti lent <5 NC 91 1.2% Ped/Maternal ex osure <5 NC 49 0.6% Other/unknown 9 4.8% 213 2.8% A e Group Number Percent Number Percent <13 <5 NC 43 0.6% 13-19 <5 NC 30 0.4% 20 - 29 35 18.8% 1,492 19.7% 30 - 39 77 41.4% 3,231 42.6% 40 - 49 46 24.7% 1,889 24.9% 50 - 59 18 9.7% 661 8.7% 60+ 5 2.7% 246 3.2% Total 186 7,592 NC= % for events less than 5 cases are not calculated Data Source: HIV/AIDS Surveillance, A ril 2009 Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-22 PART B: LEAD BASED PAINT HAZARDS Although accurate information is not available and no formal assessment has been prepared, Tustin is required to estimate the number of housing units within the City that are occupied by low-income or moderate income households that may have Lead Based Paint (LBP) hazards. However, without an actual survey of units in the City, the numbers of units with actual hazards (physical, chemical, etc.) is difficult to determine. Instead the following discussion and Table I-J provides an estimate of the number of units that may possibly contain LBP based on percentages typically found within the housing stock. In deriving this estimate, a review of housing unit age data from the 2000 Census were utilized. Because it is assumed that lower income households often occupy older, lower cost housing units, and residents occupying older housing units experience the highest incidence of lead based poisoning, these findings are significant. Table I-J Estimation of Housing Units with LBP City of Tustin Estimated Year Number Estimated Number of Built of Units % With LBP Units With LBP Pre-1940 41 80% 33 1940-1959 173 70% 121 1960-1979 3,597 52% 1,870 Totals 3,811 2,024 Source: 2000 Census Despite the use of the above methodology, the City believes that it is highly unlikely that the estimated total of 2,024 units, or 10 percent of the total housing inventory, contain LBP hazards. The properties most at risk are those with deteriorated units, particularly those with leaky roofs and plumbing. The Census also revealed that rental properties in Tustin built between the years of 1940-1959 have the largest percentage (55 percent) of lower income households occupying them. This may give indication to the greatest area of need for assessment (approximately 154 units). According to the Orange County Public Health -Epidemiology Division, the City of Tustin had six persons who reported incidents of lead poisoning between 1990 and 2000. Between 2000 and 2009 the City of Tustin had five cases of children under the age of 16 who met the case definition of requiring a home visit and environmental investigation for the presence of elevated lead levels. This information is summarized in Table I-K below: Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-23 Table I-K City of Tustin Elevated Blood Lead Levels Year # Children less than 16 # Children less than 16 years old with BLL years old meeting case greater than 10 mcg/dL* definition*~` (includes children who are cases 2000 4 0 2001 4 1 2002 5 1 2003 8 1 2004 4 1 2005 3 1 2006 5 0 2007 3 0 2008 3 0 2009*** 1 0 10- ear total 25 5 BLL =blood lead level CDC =Centers for Disease Control and Prevention mcg/dL =micrograms per deciliter *The CDC has determined the "level of concern" or "elevated" BLL to be 10 mcg/dL or greater. **A "case" is defined as a child who has had one BLL of 20 mcg/dL or greater or two BLLs between 15 mcg/dL - 19 mcg/dL drawn at least 30 days apart. ''**Includes data through December 15, 2009. Data was obtained from the Childhood Lead Poisoning Prevention Program Response And Surveillance S stem for Childhood Lead Ex osure RASSCLE Database. Tustin 2010-2015 Consolidated Plan Section I -Housing and Homeless Needs Assessment I-24 SECTION II -HOUSING MARKET ANALYSIS This section is intended to provide a portrait of Tustin by describing the significant aspects of the housing market and inventory characteristics and factors affecting the availability of affordable housing. Supporting the development of this section, the U.S. Department of Housing and Urban Development (HUD) has provided Tustin with printed reports containing 2000 Census data to estimate the demand and supply of housing for lower income groups. Much of this data has been compared with year 1990 Census data to provide historical perspective. Additionally, much of the narrative in this section has been taken exclusively from both the City's 2009 Housing Element and Technical Memorandum, approved by the State Department of Housing and Community Development (HCD), and the City's Comprehensive Housing Affordability Strategy (CHAS). Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis I I-1 PART A: MARKET AND INVENTORY CHARACTERISTICS 1. Community Description a. Background and Trends To create a context for the formulation of Tustin's Consolidated Plan, the following discussion describes the important historical, social, and economic factors and trends affecting housing affordability in the City of Tustin. Current City Profile The City of Tustin is located in central Orange County, at the junction of State Route 55 and Interstate 5. Tustin is bordered by Santa Ana to the west, Irvine to the east and south, and unincorporated Orange County areas to the north. The Tustin Ranch planned community and the conversion of the former Marine Corps Air Base at Tustin provide the major new growth areas for the City of Tustin. These two areas are also largely responsible for the changes and shifts in age and ethnic distribution that have occurred from 1990-2000. The City provides a mix of housing types and supporting commercial land uses and employment. Historical Background The first residents of modern day Tustin were local Indians, with much of the Indian culture is only today being pieced together from archeological studies in the area. However, it is known that there had been an Indian village or gathering place around Red Hill. The availability of a dependable water supply, some of it from natural artesian wells that flowed from the ground attracted Indians and then the early settlers. Columbus Tustin, a Northern California carriage maker, and his partner Nelson Stafford, purchased 1,300 acres of what had been the Rancho Santiago de Santa Ana for the price of one dollar and fifty cents per acre. Mr. Tustin attempted to create "Tustin City," but sales of home sites were slow, and in the early 1870s he ended up giving free lots to anyone who would build a home. By the 1880s, Tustin had grown into an agricultural center with three churches, a fifty-room hotel, a bank, and a horse drawn "tallyho" (trolley line) which connected Tustin to Santa Ana. By the turn of the century, groves of apricots and walnuts were gradually being replaced by the more profitable Valencia oranges. The City of Tustin incorporated in 1927 as a small agricultural community of approximately 200 acres and 900 residents, making Tustin the third oldest city in Orange County. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-2 Development in the community was slow at first due, in part, to the Great Depression of the 1930s. During World War II, three military bases were established in nearby bean fields and unincorporated areas in proximity to Tustin: the Santa Ana Army Air Base, the EI Toro Marine Corps Air Station, and the navy's Lighter-Than-Air Base (where the huge hangers housed coast-patrolling blimps). Soon after World War II, urban development began to slowly increase in Tustin as it did throughout Southern California. In 1951, this base was changed from a naval base to a marine facility supporting helicopter operations and renamed Marine Corps Air Station (MCAS), Tustin. The MCAS-Tustin later was determined to be a surplus to the needs of the Marine Corps and was identified for closure in 1991. The MCAS-Tustin was fully closed in July 1999. In the 1950s, Tustin's growth began in earnest. Freeways, quality schools, and post-war industries attracted thousands of people. The orchards were developed by builders and by 1970 the population had jumped to 32,000. Growth was a painful process as houses replaced orange groves. Old timers and newcomers alike had to adapt to each other, cope with new problems and situations, and expand facilities to handle increased patronage. And so tract after tract replaced grove after grove. Annexation became the major issue during the period from 1955 to 1965. One of the early annexations to the city was the Tustin Union High School campus. Although the school was built in 1921, it remained outside the city limits until annexation in 1957. During the 1950s the City increased 220 percent in size with annexations. The big leap came in the 1960s when the population increased a whopping 1,012 percent, going from 2,006 to 22,313 population and the land area increased from 434.23 acres to 2,214.77, or a 410 percent increase. Several large annexations greatly increased the city's area between 1971 and 1981. The Marine Corps Air Station was annexed to Tustin, adding 2,076 acres to the city. A few years later a total of 2,257 acres that had been in the Irvine Ranch agricultural preserve were annexed and are being developed as Tustin Ranch. By the 1960s, rising land values and falling grove production induced agricultural landowners to sell their land for urban development. Asa result of new development and annexations, the City's population jumped from 2,000 in 1960 to 21,000 in 1970, and continued to grow at a steady pace to reach a year 2000 Census population of 67,504 and a population of 74,825, as determined by the Department of Finance in 2009. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-3 Social Trends During the last decade, the City's population has been affected by many of the same trends that have been observed region-wide: a substantial increase in minority populations, especially persons of Hispanic ethnicity who in 2000, represent 34.24 percent of the households in the City of Tustin. This represents a significant increase from 1990 when persons of Hispanic origin represented 20.29 percent of the population compared to 8.74 percent in 1980. This increase has also created a concomitant increase in the average size of households and a surge in housing costs. Single-family detached housing comprises 27.7 percent of housing units in the City, while single-family attached housing accounts for 13.1 percent of housing units. Tustin has a substantially lower percentage of single-family housing than the County of Orange as a whole, at 41.4 percent compared to a countywide average of 67.5 percent. Economic Factors Tustin is a home to the closed Marine Corps Air Station (MCAS), Tustin. The Defense Base Realignment and Closure Act (BRAG) of 1991 mandated the closure and realignment of military bases throughout the United States. The MCAS-Tustin as part of the 1991 BRAG was identified as a surplus to the needs of the Marine Corps. BRAG 1993 confirmed this closure with some modifications to the realignment recommendations. MCAS, Tustin closed in July, 1999. Other Activities In addition to the above mentioned historical, social and economic trends, there are several other events that will or have had an affect on the affordable housing programs in Tustin. The following provides a brief summary of those events. 1. In 1994 the City began administering its own Community Development Block Grant (CDBG) program funds. This has allowed Tustin to concentrate its programs and efforts where the most need exists. 2. In 1992, the Tustin Community Redevelopment Agency established a Housing Rehabilitation Program to assist property owners in making basic code-related improvements to their properties and other improvements which would upgrade targeted residential neighborhoods. The programs are made available to rental as well as owner-occupied properties in the form of grants and deferred loans. The primary benefits are to residents of low and moderate income, a required criterion for program participation. Between Fiscal Year 1994-95 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-4 and Fiscal Year 2008-2009, a total of 192 households received assistance. The following describes the breakdown based on the income limits: "Very Low Income" - (0 to 50% of median income): 90 "Low Income" - (50% to 80% of median income): 55 "Median Income" - (80% to 100% of median income): 13 "Moderate Income" - (81 % to 120% of median income): 34 Total Number of Households: 192 3. In 2009, the State of California Department of Housing and Community Development (HCD) certified the City's Housing Element and provided written verification that the Housing Element complies with all provisions of State Law. The City is currently in compliance with the all State mandated schedules for the Housing Element Update. 4. The City adopted the Density Bonus Ordinance in November, 1999, and last amended this Ordinance in January, 2010. This ordinance would provide for up to 35 percent density bonus and at least one "Concession" or "Incentive"; or provide other "Incentives of Equivalent Value" when a developer agrees to provide the following number of rental or for-sale "target units": (1) At least 20 percent of the total units affordable to Lower Income Households; or (2) At least 20 percent of the total units affordable to Very Low Income Households; or (3) At least 5 percent of the total units affordable to Moderate Income Households; or (4) 20 percent of the total units for Senior Citizen housing; or (5) At least 15 percent of the total units affordable to Very Low Income, under Land Donation. Please refer to Appendix I for a copy of Tustin's current Density Bonus Ordinance. With the latest enactment of AB 2280 which revised the density bonus law further, the City has amended the Density Bonus Ordinance to comply with the State Law. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-5 b. Demographics/Low Income and Racial/Ethnic Concentrations - The following discussion presents the essential demographic data describing the general population (including trends in population), household, and racial and ethnic characteristics of Tustin. A description is also included for areas within Tustin with concentrations of racial/ethnic minorities and/or low-income families. Additionally, a definition of the terms "area of racial/ethnic minority concentration" and "area of low-income concentration" as defined in the Consolidated Plan instructions is provided including the locations and degree of these concentrations in Tustin. 2. Population Trends and Characteristics The purpose of this section is to illustrate current conditions in the City of Tustin in terms of its demographics and existing housing stock. Accordingly, the section entails discussions on Tustin's population and housing trends by looking at the most current data, at the time this document is prepared, and earlier data to make comparisons between time periods to reflect on the current state of the City and its future direction. Orange County experienced substantial growth between 1990 and 2000, with a population increase of 18 percent compared to statewide growth of 13 percent. By comparison, the City of Tustin grew at an even more dramatic rate of 33 percent during the decade, reflecting its status as fast growing city within the region. According to the 2000 U.S. Census, there was a population of 67,504 persons in the City of Tustin. These persons comprised 23,831 households. The population in Tustin grew at an annual compound rate of 2.7 percent between 1980 and 1990, increasing to 3.0 percent annually between 1990 and 2000. The number of households in Tustin grew more slowly at annual compound rates of 1.4 percent from 1980 to 1990, and 2.4 percent from 1990 to 2000. As a result, the average household size in the City increased from 2.42 persons per household in 1980 to 2.77 in 1990 and 2.92 in 2000. According to the 2000 Census, the most significant growth rate has occurred largely in the Hispanic ethnic category which parallels trends seen Countywide. Tustin's overall population make-up is 44.83 percent white, 34.24 percent Hispanic, 9 percent Asian/Pacific Islanders, 2.64 percent Black, and 18.29 percent Other (non-Hispanic). Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-6 It is estimated that the City of Tustin's population reached 74,825 in 2009 (an increase of 10.8 percent from year 2000 census information). The City of Tustin's population has been significantly impacted by military trends. The increase of 180 percent in the City's military population during the 1980s can be attributed mostly to the addition of new family housing units on northern and eastern portions of the base to support the MCAS, Tustin operations and provides affordable housing for personnel assigned to MCAS, EI Toro (7 miles to the south of Tustin). The MCAS, Tustin closed in July 1999, which caused relocation of military personnel out of the area therefore diminishing any need for additional housing facilities to support this special population category. This again created a significant shift in military personnel and the realignment of various ethnic groups as these personnel moved from the City of Tustin. As part of the Reuse Plan for the Tustin MCAS, additional private housing reuse opportunities are being pursued which will have an impact on future housing availability. Table II-A summarizes the City's population changes from 1990-2000. Table II-A Population Growth 1990-2000 1990.2000 C~i'owtit Jurisdiction ~~ ~ 2000 Number Percent Tustin 50,689 67,504 16,815 33% Orange County 2,410,556 2,846,289 435,733 18% State of California 29,976,000 33,871,648 3,895,648 13% Source: U.S. Census Burea u. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-7 AQe Composition Age distribution is an important factor in determining housing demands. Traditional assumptions are that the young adult population (19 to 34 years old) tends to favor, or can only afford, apartments, low to moderate cost condominiums, and smaller single-family units. The adult population (35 to 65 years old) seek moderate to high-end apartments, condominiums, and single- family homes. The primary assumption is that the 35 to 65 year old age group tends to have larger household sizes requiring larger living accommodations, while having the higher incomes that provides the means to acquire this housing. The senior population (65 years and older) tends to generate demand for low to moderate cost apartments, condominiums, group quarters, and manufactured homes. Some seniors may also live in older, larger houses that once housed the entire family. Based on the 2000 Census, nearly 64 percent of the City's population was age 25 and older, while 7 percent of the total population was of age 65 and older. The under 18 group represented 27 percent of the total. As shown in Table II-B, the City of Tustin experienced a substantial drop in the percentage of residents aged 18 to 24 years during the decade 1990-2000 of 17.5 percent. This is thought to be attributable to the closure of the former Tustin Marine Corps Air Station (MCAS) in the early 1990s, which provided a large percentage of persons within this demographic to the City's population. In contrast, the fastest growing age group in the City of Tustin was among 45 to 54 year olds who experienced a 69.8 percent increase in population between 1990 and 2000, likely attributable to the initiation of new development in the Tustin Ranch area which features a master planned development of higher-end properties of mixed single and multi-family design. Other age groups demonstrating substantial growth rates from 1990 to 2000 were 5 to 17 year olds with a 58.7 percent increase and 55 to 64 year olds with a 47.7 percent increase. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-8 Table II-B Age Distribution City of Tustin 199 0-2000 Number 1990 Percent Number 2000 Percent Change 1990 to 2000 Number Percent Under 5 ears 4,383 8.6% 5,815 8.6% 1,432 32.7% 5 to 17 ears 7,755 15.3% 12,307 18.2% 4,552 58.7% 18 to 24 ears 7,631 15.1 % 6,294 9.3% -1,337 -17.5% 25 to 44 ears 19,296 38.1 % 25,728 38.1 % 6,432 33.3% 45 to 54 ears 4,581 9.0% 7,780 11.5% 3,199 69.8% 55 to 64 ears 3,234 6.4% 4,776 7.1% 1,542 47.7% 65 to 74 ears 2,209 4.4% 2,745 4.1 % 536 24.3% 75 to 84 ears 1,172 2.3% 1, 576 2.3% 404 34.5% 85 ears and over 428 0.8% 483 0.7% 55 12.9% Total o ulation 50,689 100% 67,504 100% 16,815 33.2% Under 18 ears 12,138 23.9% 18,122 26.8% 5,984 49.3% 65 ears and over 3,809 7.5% 4,804 7.1 % 995 26.1 Source: 1990 and 2000 Census Race and Ethnicity The U.S. Census provides statistics regarding the race and ethnicity of a city's population. Table II-C highlights the ethnic distribution of the population for 1990 and 2000. As Table II-C illustrates, the number of minority residents in Tustin increased from approximately 27 percent in 1990 to approximately 39 percent in 2000. It should be noted that persons of Hispanic origin are included within all ethnic categories, and may be of any race. In 1990, 21 percent of the population was of Hispanic origin, and by 2000 this figure had increased to 34 percent. Asian and Pacific Islanders also showed substantial growth during the decade, demonstrating that Tustin is becoming a more ethnically diverse, heterogeneous City, reflecting the overall demographics of Orange County. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-9 Table II-C Racial and Ethnic Composition City of Tustin 1990-200 0 1990 Number Percent 2000 Number Percent Change 1990 to 2000 Number Percent Total o ulation one race 50,689 100.0% 64,431 100.0% 13,742 +27.1 White 37,127 73.2% 39,639 61.5% 2,512 +6.8% Black or African American 2,895 5.7% 1,970 3.1 % -925 -32.0% American Indian and Alask Native 274 0.5% 448 0.7% 174 +63.5% Asian or Pacific Islander 5,260 10.4% 10,058 15.6% 4,798 +91.2% Other race 5,133 10.1% 203 0.3% -4,930 -96.0% His anic on in of an race 10,508 20.7% 23,110 34.2% 12,602 +119.9% Source: 1990 and 2000 Census The geographic concentrations of Black and Hispanic residents in the city are illustrated in Maps 1 and 2, respectively. These maps show that there are no portions of the city where Blacks represent more than 25% of the population, although there are areas in the central and western parts of the city where Hispanics represent more than 75% of the population. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-10 Map 1 Concentrations of Black Residents Within The City of Tustin Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-11 Map 1 City of Tustin Black Concentration by Block Group ORANGE O • UNINCORPORATED ORANGE COUNTY 1 ~~ 14~ l Tustin Percentage of total persons of Black race <= 25'~g P Note: Only portions of block groups falling ~dP~ within Tuslin cily boundaries are displayed. Data represents partial block groups. ~T~ Vrotluc M for JH Douglas a Assouates U D.5 ~ ryt~e Cenror br Demograp~e RSearcn Mai~~.`GU` Mika Data.1000 Gen¢u¢, JH Douglas 8 Asociates. ono ae tamer mr Dem~grapn~c Rasearcn Map 2 Concentrations of Hispanic Residents Within The City of Tustin Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis II-13 Map 2 City of Tustin Hispanic Concentration by Block Group ORANGE O • SANTA ANA u UNINCORPORATED ORANGE COUNTY Z <i~ Tustin T 0 0.5 1 Mlles Percentage of total persons of Hispanic origin <= 25% ® 28 - 50% - 51 - 75% _ > 75°~ Note: Only portions of block groups falling within Tustin city bountlaries are displayed. Data represents partial block groups. Protlpce0lor JH Douplaa 8 Assxiata M1Y IM1e Cen[er br DarMgrapM1ic R~earc5 Marc52005 Dana zo°° capap:. JN Doua~as a Assaolea, apa 3. Employment Trends According to the Year 2000 Federal Census, the City of Tustin had 34,906 employed residents. The California State Department of Employment Development (EDD) estimates that the unemployment rate statewide during January 2005 was 6.2 percent, as compared with a rate of 4.0 percent within the Santa Ana -Anaheim-Irvine MSA, and a rate of approximately 3.8 percent within the City of Tustin. As shown in Table II-D, the 2000 Census indicated that the largest proportion of jobs in the City of Tustin were in the wholesale and retail trade (21 percent), manufacturing sector (18 percent), followed by education, health and social services (15 percent) and the professional/ scientific/ management sector (15 percent). TABLE II-D Jobs Held By City of Tustin Residents, By Sector 2000 Job Sector Number Percent Agriculture, forestry, minin 30 0% Construction 1,862 5% Manufacturin 5,980 17% Wholesale trade 1,740 5% Retail trade 3,737 11 Transportation,warehousing, utilities: 1,090 3% Information 917 3% Finance, insurance, real estate 3,502 10% Professional, scientific, mana ement 5,253 15% Educational, health and social services: 5,081 15% Arts, entertainment, recreation 2,895 8% Other services exce t ublic admin 1,890 5% Public administration 929 3% Total Employed Persons (16 years+) 34,906 100% Source: 2000 U.S. Census, SF3 Table P49 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-15 Household Characteristics Before current housing issues can be understood and future needs anticipated, housing occupancy characteristics need to be identified within the City. Table II- E illustrates a profile of household composition. By definition, a "household" consists of all the people occupying a dwelling unit, whether or not they are related. A single person living in an apartment is classified as a household, as are two persons sharing a dwelling as "roommates." Similarly, a couple with two children living in the same dwelling unit is also considered a household. Table II-E shows the household types for the City of Tustin according to the 2000 Census. This data illustrates that family households comprised approximately 72 percent of owner households and approximately 63 percent of renter households. The data indicates that married couple households represent 60 percent of the owner households and 41 percent of rental households. Approximately 37 percent of all rental households are non-familial. This compares with 28 percent of all owner occupied housing. It is interesting to note that single female householders (16.8 percent), exceed male householders (11.3 percent) among owner-occupied households, while single female and male householders are relatively balanced among renters, comprising 17.3 percent and 19.8 percent of non-familial rental households, respectively. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-16 Table II-E Household Type by Tenure 2000 HOUSEHOLD TYPE Owner-Occupied I Renter-Occu ~ Households ~ Percent ~ Households Percent Famil households: 8,504 71.9% 7,551 62.9% Married-couple family: 7,092 60.0% 4,869 40.6% Householder 15 to 34 years 1,216 10.3% 2,205 18.4% Householder 35 to 64 years 4,898 41.4% 2,475 20.6% Householder 65 years and over 978 8.3% 189 1.6% Other family: 1,412 11.9% 2,682 22.3% Male householder, no wife present: 366 3.1 % 806 6.7% Householder 15 to 34 years 112 0.9% 412 3.4% Householder 35 to 64 years 218 1.8% 378 3.1 Householder 65 years and over 36 0.3% 16 0.1 Female householder, no husband present: 1,046 8.8% 1,876 15.6% Householder 15 to 34 years 125 1.1% 641 5.3% Householder 35 to 64 years 724 6.1 % 1,147 9.6% Householder 65 years and over 197 1.7% 88 0.7% Nonfamilyhouseholds: 3,325 28.1% 4,451 37.1% Male householder: 1,333 11.3% 2,371 19.8% Living alone: 958 8.1 % 1,611 13.4% Householder 15 to 34 years 188 1.6% 559 4.7% Householder 35 to 64 years 599 5.1 % 943 7.9% Householder 65 years and over 171 1.4% 109 0.9% Not living alone: 375 3.2% 760 6.3% Householder 15 to 34 years 123 1.0% 525 4.4% Householder 35 to 64 years 229 1.9% 226 1.9% Householder 65 years and over 23 0.2% 9 0.1 Female householder: 1,992 16.8% 2,080 17.3% Livin alone: 1,691 14.3% 1,474 12.3% Householder 15 to 34 ears 143 1.2% 400 3.3% Householder 35 to 64 ears 903 7.6% 750 6.2% Householder 65 ears and over 645 5.5% 324 2.7% Not livin alone: 301 2.5% 606 5.0% Householder 15 to 34 ears 93 0.8% 415 3.5% Householder 35 to 64 ears 172 1.5% 179 1.5% Householder 65 years and over 36 0.3% 12 0.1 Total Households 11,829 100.0% 12,002 100.0% Average Household Size 2.70 2.93 Source: 2000 Census, Tables H12 & H17 Households According to the 1990 Census, the City of Tustin had a total of 18,338 households. By the 2000 Census, the number of households within the City of Tustin increased to 23,831. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-17 The 2009 Median Family Income (MFI) for Tustin (as part of the Orange County PMSA) was $86,100. Median income is the middle of the ranges of income distribution and the Census further defines median income for households and families based on the distribution of the total number of units including those with no income. Based upon year 2007 RHNA calculations, owner households in Tustin continued to have higher incomes that renter households in 2006. While over half (52.4 percent) of Tustin's renter households eamed 80 percent of the median income 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 eamed over 95 percent of median income. Areas of Low Income Concentration HUD regulations for developing a Consolidated Plan require each jurisdiction to define and identify in the community "areas of racial/ethnic minority concentration" and "areas of low-income concentration." The City of Tustin reviewed the 2000 Census information concerning race/ethnicity and incomes for all tracts in the City of Tustin (a breakdown of the City by census tract is contained in Appendix B) to assist in developing a local definition for both of these terms. The following definitions have been derived and are applicable only to the City of Tustin in an effort to meet housing needs of these two unique categories: 1. "Areas of racial/ethnic minority concentration" are defined as those Census tracts where a minority population; that being a race or ethnic group with a minority representation City-wide, has a percentage equal to or greater than the percentage representation City-wide. The areas of Tustin that meet the above definition are found to be located in Census tracts 052501, 074404, 075403, 075505, 075507, 075508, and 075509, where the Hispanic population makes up 20 percent or more of the tract population. The Black minority is concentrated in Census tracts 052501, 074404 and 075509. The maps on the following pages show these areas. 2. "Areas of low-income concentration" are defined as those Census blocks/tracts where the concentration of low- and moderate-income persons is at least 51 percent. However, certain communities are allowed to use the "exception criteria" and to undertake area benefit activities in any residential areas where the proportion of low and moderate-income persons falls within the upper quartile of all areas within the community's jurisdiction. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-18 In February 1999, HUD notified the City of Tustin that the Quality and Work Responsibility Act of 1998 provided the City with new exception. With this exception, City is permitted to compute 80 percent of area median income for CDBG and HOME using the actual median income for its MSA's. In February 2005, HUD transmitted area benefit data in which it identifies block groups that qualified as low- and moderate-income areas as a result of using the higher income limit (uncapped limits). The City of Tustin started using the new income limit and the new area benefits for all of its CDBG activities during Fiscal Year 2000-2001. The areas of Tustin that meet the above definition are found to be located in Census block groups 075515, 074408, 074407, 075515, 075403, 074408, 075514, 075514, 074408, 075507, 075512, 075505, 075507, 075505, 075603, 075513, and 075505. Map 3, Map 4, and Map 5 show these areas. Household Income and Areas of Low Income Concentration Household income distributions for the varied racial and ethnic groups within the City of Tustin are shown in Table II-F. The table shows that the groups with the highest median income are Native Hawaiian, Asians and Non-Hispanic Whites, while median incomes of Blacks, American Indians and Hispanics are significantly lower. 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(!3 ~ ~ ~ EA EA fA d9 69 EA ER fA ER EA ER O O O ~ 7 C O O O O O O O O O O O O O f6 O O O O O O O O O O O O O O O O O O O L L,,, O O O O O O O O O O O O O O O C O O O O O O O O O O O O O tf> 0 0 +-~ O M O N O In O ~ O ~ ' O O In O N l17 O ' ~ ~ U F" ~ J r EA r H4 N Ef3 N EA M Efl M EA ~ EA d EA ~ ER O ER ~ EA r EA r 69 ER ( V Efl ~ C .~ >+ (6 C Q N (0 O) C .~ 7 O 2 C O U C (0 d N (6 'O O C O U 0 0 N O O N C 7 H O N As demonstrated graphically in Maps 3, 4 and 5 areas of low-income concentration in Tustin are summarized by Census block group. Generally, the west-central portions of the city have lower incomes while the newer areas of Tustin Ranch are more affluent. Map 3 shows that there are block groups in the west-central portion of the city where Low-Income households represent more than half of all households, and some areas where more than 75 percent of households are Low-Income. Very-low-income persons comprise more than half of all households in the far western section of the City of Tustin (Map 4). As seen in Map 5, some block groups in the west-central area also have more than 25 percent extremely-low-income households. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-21 Map 3 Low-Income Concentrations City of Tustin Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis I I-22 Map 3 City of Tustin Low-Income Concentrations by Block Group ORANGE O UNINCORPORATED e ORANGE COUNTY SANTA ANA IRVINE 'r ~~ 0 0.5 1 Miles Percentage of total persons with incomes 51 - 80% of median income or below 26 - 50% ~'~ 51 - 75% - > 75% Note: Only portions of block groups falling within Tustin cdy boundaries are tlisplayetl. Data represents partial block groups. ProCUCe01or JH Douglas B Assocatas Oy tM1e Cenle~lor OemcprapM1~c HmeaecM1 Ma~cn:'WS Dxa. zom ceaepe, ~r, Dppe~as a Au«~aie:. a~a u.e censer i« Dempgrapn~c Heaeaitl~ Map 4 Very Low-Income Concentrations Within the City of Tustin Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-24 Map 4 City of Tustin Very Low-Income Concentrations by Block Group ORANGE SANTA ANA IRVINE Percentage of total persons with incomes 31 - 50% of median income or below 26 - 50% 51 - 75% ~~ 0 OS 1 Mlles Note: Only portions of block groups falling within Tustin city boundaries are displayed. Data represents partial block groups. ProEUCeC for JH Oouglaa 6 Associate. by ibe Center for Oerro9ra0bu Rmearcb Marcb 2JD5 Daly ]OW Census, JH Douglas a Ass¢ules. antl Ne Center Im Demograpb~c Reawrcn O UNINCORPORATED - o ORANGE COUNTY 0 ____. / ~ _ ~~ ~~ ~Tust~n ~! ,, ~ , \~ ~\ ~~ Map 5 Extremely Low-Income Concentrations Within the City of Tustin Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-26 Map 5 City of Tustin Extremely Low-Income Concentrations by Block Group ORANGE O UNINCORPORATED e ORANGE COUNTY SANTA ANA a IRVINE Percentage of total persons with incomes <= 30% of median income or below <= 25% i 26 - 50% T 0 0.5 1 Mibs Note: Only portions of block groups falling within Tustin cdy bountlaries are displayed. Data represents partial block groups. RMU VIar JH ~ouglazfl PSUCiales by the Center for oarrryrapnc Researcb MarcM1 2005 oaa xoo ceases, JR Doucias a nssociares, ana 4. Housing Inventory and Market Conditions This section describes the significant general market and inventory conditions in the City of Tustin. The discussion provides information on Tustin's general housing market in terms of supply, demand, condition, and cost of housing. The housing inventory is described by tenure, vacancies, cost and size, and suitability for persons with special needs. Housing impediments as well as opportunities for housing production, ownership, alleviation of overcrowding, and meeting the needs of large families is also highlighted throughout the discussion. Analysis of past trends in the housing stock also provides a method of projecting the future housing needs of Tustin. Housinct Stock Profile According to the 1990 Census, there were a total of 19,380 housing units in the City of Tustin which increased to 25,486 according to the 2000 Census. Table II-G summarizes the change in the composition of the housing stock between 1990 to 2000. The table indicates that the total number of housing units in the City increased by 6,186 units between 1990 and 2000 to 25,406 total housing units in the year 2000. Table II-G Composition of Housing Stock, By Unit Type 1990 - 2000 Tustin T e 1990 Percent 2000 Percent SF detached 5,322 27.6% 8,070 31.7% SF attached 2,505 13.0% 3,457 13.6% MF 2-4 units 3,013 15.6% 3,834 15.0% MF 5+ units 7,633 39.5% 9,218 36.2% Mobile Homes 710 3.7% 889 3.5% Other 117 0.6% 18 0.1 Total 19,300 100.0% 25,486 100.0% Source: US Census Bureau In 2000, single-family detached and attached housing comprised 45.3 percent of housing units in Tustin, while multi-family housing accounted for approximately 54.7 percent of housing units. Multi-family housing typically provides the largest source of both rental and affordable homeownership opportunities in a community. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-28 Residential properties with two to four units comprised 15.0 percent of housing units in Tustin, while multi-family developments with five or more units comprised 36.2 percent of the housing supply. Mobile homes accounted for 3.5 percent of housing units within the City of Tustin. In terms of actual dwelling units in the City, however, the data indicates that the stock of single-family units within the City of Tustin increased most between 1990 and 2000. Tenure Tenure data (actual occupancy) by housing type in 2000 is provided in Table II-H. In 2000, 66.3 percent of occupied units were owner occupied, and 33.7 percent were renter occupied. TABLE II-H Occupied Housing Units by Tenure 2000 Owner-Occu ied Units Renter-Occu ied Units T pe Number Percent 1 Number Percent 1 Total 1, detached 7,180 44.8% 754 4.7% 7,934 1, attached 2,543 15.9% 815 5.1 % 3,358 2 80 0.5% 368 2.3% 448 3 or 4 516 3.2% 2,140 13.3% 2,656 5 to 9 311 1.9% 1,333 8.3% 1,644 10 to 19 291 1.8% 1,092 6.8% 1,383 20 to 49 45 0.3% 1,130 7.0% 1,175 50 or more 130 0.8% 4,233 26.4% 4,363 Mobile home 731 4.6% 128 0.8% 859 Boat, RV, van, etc 18 0.1 % 0 0.0% 18 Total 10,630 66.3% 5,410 33.7% 16,040 Represents proportion of total occupied housing units. Source: 2000 Census Vacancy Rates The vacancy rate within a City is a measure of the general availability of housing. It also indicates how well the available units meet the current housing market demand. A low vacancy rate suggests .that households may have difficulty finding housing within their price range, especially for those with lower income levels. A high vacancy rate, by contrast, may indicate either the existence of a high number of units undesirable for occupancy, or an oversupply of housing units. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-29 The availability of vacant housing units usually provides households with choices on different unit types to accommodate changing needs (for example, single persons, newly married couples and elderly households typically need smaller units than households with school age children). A low vacancy rate may serve to increase market rents and housing costs, as shortages tend to result in higher prices and may limit the choices of households in finding adequate housing. It may also be related to overcrowding, as discussed in later sections. Figures from the 2000 Census show that 1,648 housing units were vacant, which correlates to 6.5 percent of the total housing stock. The data show that vacancy rates in Tustin are very low in all types of housing. Table II-I also indicates the largest proportion of the owner occupied housing is 3 or more bedrooms in size, and that the most common type of rental unit are studio or 1 bedroom, further. TABLE II-I Housing Vacancy by Tenure and Unit Size 2000 Total Housin T e Cate o Number % 0-1 Bd % 2 Bd % 3+ Bd Total Housing Units 25,486 100.0% ~. Total Occupied Units* 23,838 93.5% 7,286 28.6% 7,494 29.4% 9,058 35.5% - Rental Units* 11,993 47.1 % 6,132 24.1 % 4,477 17.6% 1,384 5.4% - Ownership Units* 11,845 46.5% 1,154 4.5% 3,017 11.8% 7,674 30.1 Total Vacant Units* 1,648 6.5% - Vacant for Rent* 261 1.0% N/A N/A N/A -Vacant for Sale* 181 0.7% N/A N/A N/A - Other Vacant/Seasonal* 1,206 4.7% N/A N/A N/A " As a percentage of total housing units. Source: 2000 Census, SF3 Tables H 8 & 42 Age of Housing Stock Age is one measure of housing stock condition and a factor for determining the need for rehabilitation. Thus, units that are older are likely to be in need of major repairs, such as a new roof, plumbing, or updated electrical systems. As a general rule of thumb, houses 30 years or older are considered aged and are more likely to require major repairs. In addition, older houses may not be built to current housing standards for fire, earthquake safety, and energy efficiency. Furthermore, without proper maintenance, housing units deteriorate over time. Thus, in areas where households are cost burdened and maintenance is often deferred, this deterioration may be accelerated. Table II-J identifies the distribution of housing units by year built. According to the Census, the highest rate of construction occurred in Tustin during the 1970s. Construction during this decade accounted for 34.3 percent of the existing Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-30 housing stock within the City. The prior decade of the 1960s was another active period of housing construction in Tustin, accounting for an additional 23 percent of existing housing units. Approximately 9.6 percent of Tustin's housing units were built prior to 1959 and are at least 45 years old. Only 18.3 percent of the City's housing stock was developed from 1990 to March 2000. TABLE II-J Ag e or Housi ng aiocK Year Built Owner Percent Renter Percent Built 1999 to March 2000 496 4.2 94 0.8 Built 1995 to 1998 1,930 16.3 754 6.3 Built 1990 to 1994 1,891 16 1,349 11.2 Built 1980 to 1989 1,017 8.6 1,775 14.8 Built 1970 to 1979 2,123 17.9 4,115 34.3 Built 1960 to 1969 3,578 30.2 2,755 23 Built 1950 to 1959 519 4.4 766 6.4 Built 1940 to 1949 73 0.6 152 1.3 Built 1939 or earlier 218 1.8 233 1.9 Totals 11,845 100 11,993 100 Median 1977 NA 1975 NA Source: 2000 Census Over 41 percent of the city's housing units were built prior to 1970. Consequently, a large proportion of units are over 30 years of age. This indicates that a large proportion of the City's housing units are at the age where significant maintenance may be necessary, and programs designed to assist homeowners in the maintenance and rehabilitation of units will be essential. Housing Conditions Housing is considered substandard when physical conditions are determined to be below the minimum standards of living, as defined by Section 1001 of the Uniform Housing Code. A housing unit is considered substandard if any of the following conditions exist: - Inadequate sanitation - Structural hazards - Nuisances - Faulty weather protection - Fire hazards Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-31 - Inadequate maintenance - Overcrowding - Hazardous wiring, plumbing or mechanical equipment Households which are living in substandard conditions (lacking complete plumbing and/or kitchen facilities) are considered as being in need of housing assistance even if they are not actively seeking alternative housing arrangements. In addition to structural deficiency and standards, the lack of certain infrastructure and utilities often serves as an indicator of substandard conditions. According to the 2000 Census, there were 26 owner-occupied units (reflecting 0.2 percent of all housing units) and 67 rental units (or 0.6 percent of all housing units) which lacked complete plumbing facilities, and 13 owner- occupied units (or 0.1 percent of all housing units) and 159 rental units (1.3 percent of all housing units) lacking complete kitchen facilities in the City of Tustin, as shown in Table II-K. TABLE II-K Plumbing and Kitchen Facilities by Tenure - 2000 TUSTIN Owner % Renter Total units 11,845 100.0% 11,993 100.0% Com lete lumbin facilities 11,819 99.8% 11,926 99.4% Lackin com lete lumbin facilities 26 0.2% 67 0.6% Com lete kitchen facilities 11,832 99.9% 11,834 98.7% Lackin complete kitchen facilities 13 0.1 % 159 1.3% 2000 Census SF3, Tables H48 & H51 Lead Based Paint According to the Orange County Public Health -Epidemiology Division, the City of Tustin had six persons who reported incidents of lead poisoning between 1990 and 2000. Between 2000 and 2009 the City of Tustin had five cases of children under the age of 16 who met the case definition of requiring a home visit and environmental investigation for the presence of elevated lead levels. This information is summarized in Table II-L below: Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-32 Table II-L City of Tustin Elevated Blood Lead Levels Year # Children less than 16 # Children less than 16 y.o. w/ BLL greater than y.o. meeting case 10 mcg/dL* (includes definition** children who are cases 2000 4 0 2001 4 1 2002 5 1 2003 8 1 2004 4 1 2005 3 1 2006 5 0 2007 3 0 2008 3 0 2009*** 1 0 10- ear total 40 5 BLL =blood lead level CDC =Centers for Disease Control and Prevention mcg/dL =micrograms per deciliter *The CDC has determined the "level of concern" or "elevated" BLL to be 10 mcg/dL or greater. **A "case" is defined as a child who has had one BLL of 20 mcg/dL or greater or two BLLs between 15 mcg/dL - 19 mcg/dL drawn at least 30 days apart. *** Data includes through 12-15-2009. Data was obtained from the Childhood Lead Poisoning Prevention Program Response And Surveillance System for Childhood Lead Exposure (RASSCLE) Database. To address the potential threat of lead-based paint within homes in Tustin, the City will implement into its housing policies over the next five years the following: ~ Include lead-based paint hazard reduction as an eligible rehabilitation activity through the City's CDBG grant program. ~ Review existing regulations, housing and rehabilitation codes to assure lead- based paint hazard reduction is incorporated. 4 Require testing and hazard reduction in conjunction with rehabilitation. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-33 ~ Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. 5. Housing Costs and Rents This section discusses resale costs of existing housing, as well as the typical rental prices in the City. Existing and New Home Price Trends The City of Tustin, as the rest of Southern California, experienced a drop in home prices in the early 1990s following the price peak occurring in 1989-1990. Since the recession of the early 1990s, housing market prices have risen. Then housing prices peaked again in 2007-2008, and have declined during the current recession, with a 2009 median sales price for single-family homes in Tustin ranging between $455,000 and $800,000, and from $175,000 to $431,000 for condominiums (Table II-M). TABLE II-M Median Home Prices Tustin and Orange County 2009 Median Sale Price Area/Zi Code SFD Condo Tustin 92780 $455,000 $175,000 92782 $800,000 $431,000 Orange County Total $475,000 $281,000 Source: DataQuick, 2010 Table II-N reflects the distribution of housing values reported in the 2000 Census. (Note: These statistics include mobile and manufactured housing, therefore the values are expected to be somewhat lower than the median values reported by DataQuick.) This table demonstrates that the majority of homes within the City of Tustin were valued between $200,000 and $400,000 in 2000. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-34 Table II-N Housing Values, City of Tustin 2000 Less than 100,000 1,102 9.3% $100,000 to $124,999 759 6.4% $125,000 to $149,999 879 7.4% $150,000 to $174,999 593 5.0% $175,000 to $199,999 715 6.0% $200,000 to $249,999 1,832 15.5% $250,000 to $299,999 2,133 18.0% $300,000 to $399,999 2,051 17.3% $400,000 to $499,999 966 8.2% $500,000 to $749,999 619 5.2% $750,000 to $999,999 170 1.4% $1,000,000 or more 26 0.2% Total Units 11,845 100.0% Median Value $251,000 Source: ~uuu census srs i apiece hu4 ~ ryzs~ According to the California Association of Realtors, the average price of a home within Orange County in January 2010 was $480,790, while the price of a single family home Statewide was $287,440. Rents Table II-O lists market rents by unit size based on 2000 Census data. The table shows that in 2000 the majority of rentals were one- or two-bedroom units. Further analysis indicates that nearly half of all apartment units in Tustin rented for between $750 and $999. The 2008-2018 Comprehensive Affordable Housing Strategy noted that in 2007, the average rent for aone-bedroom unit was $1,292 a month and athree-bedroom unit was $2,431. In 2009, according to Apartment Ratings, an comprehensive online database of apartment ratings, the average rent for aone-bedroom unit was $1,230 a month and athree- bedroom unit was $1,800 a month. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-35 Table II-O Gross Rent by Unit Size, City of Tustin 2000 Rent Studio 1 Bedroom 2 Bedroom 3+ Bedroom Total % Total $0-$200 9 98 14 9 130 1.1 $200-299 18 57 30 14 119 1.0% $300-499 27 78 75 40 220 1.8% $500-749 486 782 203 63 1,534 12.8% $750-999 957 2, 331 1, 876 191 5, 355 44.7% $1,000+ 248 1,002 2,180 995 4,425 36.9% No Cash Rent 13 26 99 72 210 1.8% Total 1,758 4,374 4,477 1,384 11,993 100.0% Source: 2000 Census SF3 Table H67 Table II-P provides a list of affordable rental projects in Tustin. Each of these projects is deed-restricted to ensure that units will provide long-term affordability. TABLE II-P AfFordable Housing Projects City of Tustin 2010 NAME ADDRESS ZIP TYPE OF UNITS # UNITS TOTAL ADDITIONAL AFFORD- # OF INFORMATION ABLE UNITS Ambrose Lane Tract 15707 Family 8 38 New construction 3 Bedroom Arbor Walk 14552 92780 Family 10 63 Completed (Olson Co.) Newport Ave. Chatham Village 16331 92780 Family 201 335 First Come, First McFadden 1 & 2 Bedroom Served Ave. Flanders Pointe 15520 Tustin 92780 Family 49 82 Villa e Heritage Place a 1101 92780 Seniors 62+ 52 54 Tustin Sycamore 43 - 1 Bedroom Ave. 11 - 2 Bedroom Rancho Alisal 13800 92780 Family 72 Parkcenter Rancho Maderas 13408 92782 1 Bedroom Famil 10 266 3-5 Year Waitin Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-36 TABLE II-P Affordable Housing Projects City of Tustin 2010 NAME ADDRESS ZIP TYPE OF UNITS # UNITS TOTAL ADDITIONAL AFFORD- # OF INFORMATION ABLE UNITS Heritage 2 Bedroom (Family) 44 List Wa Rancho Tierra 13202 92782 2 Bedroom (Family) 50 252 Myford Rd. 3 Bedroom (Family) Tustin Gardens 275 E. Sixth 92780 Seniors 100 100 4 Year Waiting Lis St 62+/Handicap 100 - 1 Bedroom Tustin Grove Tract 14934 92780 Family 21 145 3 Bedroom Tustin Terrace 17432 92780 Seniors 19 20 Mitchell 62+/Handicap 1 Bedroom Tustin Field I PA 21 92782 Family 78 276 Completed (Parcel 33) 2 Bedroom 3 Bedroom Tustin Field II PA 21 92782 Family 40 189 Completed (Parcel 34) 3 Bedroom Clarendon Tract 16582 92782 Family 42 102 Completed (Columbus 3 Bedroom Grove) Camden Place Tract 16581 92782 Family 37 222 Completed (Columbus 2 Bedroom Square) 3 Bedroom Cambridge Lane Tract 16581 92782 Family 36 156 Completed (Columbus 1 Bedroom Square) 2 Bedroom 3 Bedroom Coventry Court Tract 16581 92782 Seniors 153 240 Construction on (Columbus hold Square) Westchester 1602 Nisson 92780 16 - 1 Bedroom 149 150 1 Bedroom - Park Apts. Rd. (senior) Waitlist Closed 94 - 2 Bedroom 2-3 Bedroom - Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-37 TABLE II-P Affordable Housing Projects City of Tustin 2010 NAME ADDRESS ZIP TYPE OF UNITS # UNITS TOTAL ADDITIONAL AFFORD- # OF INFORMATION ABLE UNITS (family) 2-3 Month 40 - 3 Bedroom Waitlist famil Source: County of Orange, Housing 8~ Community Development Department -Affordable Housing List Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-38 Affordability Gap Analysis The costs of home ownership and renting can be compared to a household's ability to pay for housing, based on the 2007 HUD median income of $78,700 for the Orange County area. Table II-Q identifies maximum affordable housing cost and purchase prices by income category for both a family of four and a single person household, based on 30 percent of income expended. The maximum affordable housing costs is adjusted based on household size. Overpayment refers to renters and homeowners who must pay more than 30% of their gross incomes for shelter. A high cost of housing eventually causes fixed-income, elderly and lower income families to use a disproportionate percentage of their income for housing. This may cause a series of related financial problems that may result in a deterioration of housing stock, because costs associated with maintenance must be sacrificed for more immediate expenses, or inappropriate housing sizes and types to suit the needs of the household. TABLE II-Q 2007 Maximum Affordable Housing Cost by Income Category City of Tustin Maximum Annual Affordable Maximum Affordable Income Cate o Income' Housin Cost z Purchase Price3 Fnur Pprcnn Heuseheld Ve Low <50% $43,300 $984 $70,764 Low 51-80% $69,300 $1,377 $116,457 Moderate 81-120% $94,440 $2,525 $249,723 Above Moderate >120% $94,440+ $2,525+ $249,723+ Median Income (family of 4 $78,700 Adjusted for 3 bedroom unit. ' Based on HUD income limits, April 2007 z Calculated as 30% of income divided by 12 months (35% for moderate income) s Assumes 10% down payment, a 8.0% interest rate for 30 years and tax and homeowners insurance. Source: Comprehensive Housing Affordability Strategy 2008-2018 "Maximum Affordable Housing Cost" is defined as those homes with values affordable to households with incomes at or below HUD Area Median Family Income levels. "Affordable" is defined as annual owner costs less than or equal to 30 percent of annual gross income (35 percent for moderate income). Annual owner costs are estimated assuming the cost of purchasing a home at the time of the Census based on the reported value of the home. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-39 For housing purchases, the 30 percent threshold for affordability includes payment on principal and interest, and an assumed 1.25 percent allocation for taxes and homeowner insurance. In actuality, taxes and insurance may often exceed the assumed 1.25 and may include additional fees for homeowner association costs and other charges. Smaller households in the very low-income category face challenges in the rental market, and also have few rental options available to them apart from boarding or sharing rental expenses with roommates, which may result in overcrowded conditions. The data indicates that a family of four earning 50 percent of the area median family income ($46,500 annually) can afford to pay no more than $1,162 per month for rent in order to avoid overpayment. With regard to opportunities for home purchases within the City of Tustin, data indicate that housing purchase opportunities in the City are limited for low- and very-low-income households due to the relatively high price of housing within the City. Smaller households at the lower end of the income range will have a limited selection of units from which to choose. The National Low Income Housing Coalition highlights the precarious housing situation for low and moderate income households throughout the County of Orange. A minimum wage earner (earning $8.00 per hour) could afford monthly rent of no more than $646 while an SSI recipient (receiving $907 monthly) could afford no more than $272. However, the Fair Market Rent (FMR) within the County in 2009 was $1,296 for cone-bedroom unit and $1,546 for atwo- bedroom unit. Consequently, a worker earning Minimum Wage must work 149 hours per week to afford atwo-bedroom unit available at the area's FMR. In fact, as demonstrated in Table II-R below, afull-time worker must earn $29.73 per hour in order to afford atwo-bedroom unit. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-40 Table II-R Affordability of Orange County Rental Units Bedrooms Fair Market Rent Income needed to afford Percent of Family Area median income Hourly wages needed to afford Work hours per week necessary at minimum wa e 0 $1,147 $45,880 53% $22.06 110 1 $1,296 $51,840 60% $24.92 125 2 $1,546 $61,840 72% $29.73 149 3 $2,188 $87,520 102% $42.08 210 4 $2,518 $100,720 117% $48.42 242 Source: National Low Income Housin Coalition, based on HUD 2009 Fair Market Rents In addition, as shown in Table II-S, HUD forecasts a continued high demand throughout Orange County for new rental housing through 2010, particularly for two-bedroom units at rents less than $1,600 per month. Table II-S Estimated Demand for New Market-Rate Rental Housing July 1, 2007 to July 1, 2010 Oran a Count ,California: North Oran a Count Submarket One Be droom Two Bedrooms Three B edrooms Monthly Gross Rent Units of Demand Monthly Gross Rent Units of Demand Monthly Gross Rent Units of Demand $1,100 600 $1,600 1,675 $2,100 125 $1,150 530 $1,650 1,400 $2,150 110 $1,200 490 $1,700 1,300 $2,200 100 $1,250 440 $1, 750 1,150 $2,250 80 $1,300 380 $1,800 1,000 $2,300 70 $1,350 320 $1,850 850 $2,350 60 $1,400 270 $1,900 700 $2,400 50 $1,500 220 $2,000 550 $2,500 40 $1,600 170 $2,100 350 $2,600 30 $1,700 140 $2,200 250 $2,700 20 $1,800+ 110 $2,300+ 100 $2,800+ 10 Note: Distribution above is non-cumulative. Demand shown at any rent represents demand at that level and higher. Source: HUD Office of Policy Development and Research, Comprehensive Housing Market Anal sis: Oran e Count ,California, Jul 2007. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-41 Barriers to Affordable Housing This section discusses potential obstacles to the production of affordable housing and potential actions by the City to overcome those obstacles. Barriers or impediments to affordable housing are caused when the incentive to develop this housing is removed due to excessive development costs or the lack of community commitment. Some development costs are motivated by economic conditions and other issues that affected the real estate market, and are outside the control of local government. In addition, the development of affordable housing is affected by both the economic market conditions and the housing policies of federal, state and local governments, and the "Not In My Back Yard" (NIMBY) phenomenon. Although federal and state environmental regulations are implemented at the local level, these policies have and seem to continue to add to the cost of development. Public policy and community issues that may potentially affect the cost of development and housing projects within the City include the following: ~ Land use development ~ Cost of labor and materials ~ Cost of land ~ Environmental problems (wastewater, floodplains, and capacity) ~ Deed restrictions and covenants Zoning Ordinances Development standards include zoning ordinances, subdivision ordinances and building code requirements. The most far-reaching constraints are those contained in the City's zoning ordinance, which is the most traditional tool used by a local jurisdiction to regulate the use of private land. Zoning regulates the use, density, floor area, setbacks, parking, placement and mix of residential, commercial, and industrial projects. Zoning can also regulate the intensity of residential land use through minimum lot size requirements. The City, while encouraging housing, is also concerned about the living environment that is created based on standards such as: ~ Density ~ Height ~ Setbacks Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-42 ~ Under grounding of utilities ~ Aesthetics ~ Parking Housing Development Fees Various fees and assessments are charged by the City and other outside agencies (e.g., school districts, sewer/sanitation agencies) to cover costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed based on the concept of cost recovery through a pro rata share system, based on the magnitude of the project's impact or the extent of the benefit which will be derived. While the city of Tustin is using the cost recovery concept in setting its development fees, these fees could impact the production of affordable housing. Tustin is highly urbanized with most of its necessary infrastructure, such as streets, sewer and water facilities already 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 the redevelopment project areas can minimize site improvement costs. Development Review Process The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit's selling price. 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. Infrastructure Constraints All development within the City is scrutinized for its impacts on the community in transportation, sewer, parks, recreation and pedestrian use. The cost of new or improved infrastructure is often paid by the developer, who shifts the cost to the project, thus increasing the housing costs. Davis-Bacon Wage Compliance A prevailing wage must be paid to laborers when federal funds are used for any project over $2,000 or any multi-family project over eight units. The prevailing wage is usually higher than competitive wages. Davis-Bacon requires extensive paperwork that adds to housing costs to document the prevailing wages in order to comply with monitoring requirements. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-43 Floodplain Insurance When federal funds are used to rehabilitate homes or build new homes located in a floodplain zone, the developer or homeowner is required to obtain flood insurance. This requirement can be costly and impact low-income homeowners, especially where minor rehabilitation is involved. Existing Needs Overcrowding In response to higher housing prices, lower income households must often be select smaller, older, less adequate housing for the available money. Consequently, the need to find housing which they can afford may lead families into situations of overcrowding. Overcrowding places a strain on physical facilities and does not provide a satisfying living environment. While some families with low incomes may opt for overcrowding to derive additional income, the cost of housing usually necessitates overcrowding for many lower-income residents. Both 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. For example, aone- bedroom apartment with living room, kitchen, and bathroom would be considered overcrowded if it housed more than two persons. Overcrowding is often reflective of one of three conditions: - Either a family or household is living in too small a dwelling. - Familial household includes extended family members (i.e., grandparents or grown children and their families living with parents, termed doubling). - A family is renting living space to non-family members. Whatever the cause, overcrowding is symptomatic of greater affordability issues. Some examples of when lack of affordability promotes overcrowded conditions include: - Large households unable to afford larger dwellings that must then move into smaller than acceptable units. Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis I I-44 - Older children wishing to leave home who are prohibited from doing so because they cannot qualify for a home loan or are unable to make rental payments. - Grandparents or elders on fixed incomes who are unable to afford housing suitable for their physical handicaps, and must often move in with their grown children and families. According to the 2000 Census, a total of 821 owner occupied households (3.5 percent) and 3,569 renter occupied households (29.7 percent) were living in overcrowded conditions. It is especially noteworthy that 12 percent of renters live in severely overcrowded conditions with over 2 persons per room, which is twice the official threshold for overcrowding. Table II-T describes overcrowding among Tustin residents in 2000. TABLE II-T Households with Overcrowding, City of Tustin 2000 Households Total: 23,838 100.0% Owner occupied: 11,845 49.7% 0.50 or less occupants per room 8,336 35.0% 0.51 to 1.00 occupants per room 2,688 11.3% 1.01 to 1.50 occupants per room 400 1.7% 1.51 to 2.00 occupants per room 286 1.2% 2.01 or more occupants per room 135 0.6% Renter occupied: 11,993 100.0% 0.50 or less occupants per room 4,449 37.1 0.51 to 1.00 occu ants er room 3,975 33.1 1.01 to 1.50 occu ants per room 1,094 9.1 1.51 to 2.00 occu ants per room 1,049 8.7% 2.01 or more occupants per room 1,426 11.9% 2000 Census, SF3, Table H2O Overaayment Overpayment refers to renters and homeowners who must pay more than 30 percent of their gross incomes for shelter. An overly high cost for safe, decent housing within a City is detrimental to fixed-income, elderly, and lower income families who must use a disproportionate percentage of their income for housing (overpayment). State housing policy recognizes that cooperative participation of the private and public sectors is necessary to expand housing opportunities to all economic Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-45 segments of the community. A primary State goal is the provision of decent housing and suitable living environment for Californians of all economic levels. Consistent with HUD's "threshold of overpayment" definition, California's housing administration has determined that, "Affordable housing costs with respect to very low, low and moderate income households shall not exceed 30 percent of gross household income." (Health and Safety Code, Section 50052.9). That is, when households must exceed 30 percent of their incomes for rent or mortgage payments, they are left with insufficient funds for other necessities, such as food, health care, clothing, and utilities. Overpayment for housing may cause a series of related financial problems, and may result in a deterioration of housing stock, because costs associated with housing upkeep and maintenance must be sacrificed for more immediate expenses (for example, food, clothing, medical care, and utilities). Overpayment also promotes overcrowding, which leads to a variety of problems, from accelerating the rate of housing wear and deterioration, to children's decreased performance in school, to code enforcement issues. HUD recognizes that upper-income households overpaying for their housing are generally more able to secure housing within their budgets, and are more capable of paying a larger proportion of their income for housing, unlike lower income households which are more significantly impacted by housing overpayment. The distinction between rental and owner housing overpayment is important because, while homeowners may choose to allocate a higher percentage of their disposable monthly income on housing costs, this allocation is justified in light of the beneficial investment qualities of ownership. Newer or younger households may overextend themselves financially to afford a home purchase, but the owner maintains the option of selling the home and may realize tax benefits or appreciation in value. Renters, on the other hand, are limited in the rental market, and are generally required to pay the rent established by that market. The discrepancy between renter and owner households is largely reflective of the tendency for rental households to have lower incomes than their owner counterparts. Table II-U contains 2000 Census figures demonstrating that over 33 percent of all households in the City, and over 37 percent of all Tustin renters were overpaying for housing. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I-46 ~_ _~ V ~ r Q O W ~ ~ J ~ N Q Q ~/ Q L a .N 0 2 N ~ 0 f` t` N M M ~ ~ V O ~ ~ O N W O W O f~ N V ~ ~ 0 V e0 O oD N I~ ~ ~ O (O ~ O M ~ W O t0 ~ V N N ~ V V M M N N L V N N ~ ~ ~ ~ N J N f- N 7 O 2 O O W Q) M o0 00 V (O ~ a0 '7 N V ~ O O M O V ~ V c9 N N ~ V ~ O ~ V O M M O N N ~ V O ~ M O O ~ C 3 ~ ~ l0 c0 c0 V _ l° to N ~ N N M N I- 0 N V V N N f~ O O W W ~ ~ r ~ ~ ~ M ~ M M O V (O t0 W ~ N O) a1 f` O r n f` f` O N O (O ~ O N O N M O M O M V L L N Q _ N - N 7 O 2 ~ N O O ~ ~ In M QI ~ ~ r In M V M V' ~ M l° ~ ~ c~0 N ~ N ~ M N ~ lf) N M ~ N N O rn m ~ 2 C J ~ O 3 V O) O O N W ~ f~ M r O) M a0 M fD V ~ O ~ O O M O N M ~ N M O) OO f~ ~ N r n uO'f V O N N N O N N N V ~ ~ (6 YO (~ ~ 2' .N.. ti -~ O ~ V N M CO M c0 V 'Q t17 ~ i~ f` O) O O l0 N ~ I` ~ ^ V' N V CO (O M N ~. ~ N V V N ~ M M M N N L L O °~ ~ N ~ u' N _ O N W ~ ~ 7 A O L C u1 00 M o0 M N l0 I~ O) c0 c0 ~ V a0 f~ M V O c0 N ~ w (0 U: 7 ~ O W ~ ~ m W N ~ n O N ~ ~ ~ M ~ LL1 M N ~ ~ U ~ ~ C N f` V V V M M c0 00 00 V W N r O to o0 O c0 ~ O N "O p O t` M V O O (D W o0 t` M M W QI O O O In O O W c0 f` (O M ~ M O) N ^ V a) M V 7 - N t N M r a L a~ o C N ~ 7 0 U 0 = U m 7 f~ U7 V O ~ h N M t17 a1 O) N O ~ eO M O f~ N O f~ j N W M M W N a0 ~ W 0) f~ (O M ~ I~ O) 7 ~ oO 1~ N ~ M M N y O N ~ ~ U N o m J ~ O Z 'O M M N 7 a0 O V a0 f~ ~ op QO V O) (O O N Q1 W O f0 M ~ M a1 to W M ao ~ O) (O a0 V N N O r M N ~ M N (O N N ~ ~ M N ~ ~ N l(7 ~ ~ m lD N V O ~ N ~ W aD ~ ap M M O O M a0 O ~A O O T N ~ N d O V M (O r O f` ~ O O W f` N ~ (O M O O l0 O) t0 N ~ M l0 IA O M °' ~ ~ a -° a Ul N W ~ ~ 7 O L O C N LL ~ IL 7 ° 0 o 0 _ ~ ,~ o ~ N ~ ~ LL r2 V p ~/ LL ~ N N U ~ n N a M E N e + \° O E N w N N ~ ~ N N C O - a II II ~ O ~ C! L O ~ A O ` ' e A O ~ e O ` ~ a V ~' V °' o o e o A ~ o o o o d ~ c o ° O ~n N E C c o O w w O O ~ E E C _ M ~ E C ' M ~ O ~N A A O N A /~ 9 N A A O O N A A O N n n V 7 C C1 7 C O 7 C C ~ V e V e 7 L C C V ~ 7 C C C O L C -° O ~ C O L C e N v L O r N N --° .p .p v v .0 r a a 9 ~ 7 ,o 7 y ~ a 7 ~ 7 ~ O O ~ O m m O C O m m t ~ m m t ~ m m p = N m m N ° L > L > U U L ~ U U d ' L_ 3 ~j N U d c L_ 3 ~j N U _ 3 L_ 3 y U N U S O O 3 O 3 0 = o o = o o C ~ o 0 0 S 2 0 o a = 0 0 0 ° ° N M ~ l° O ~ W O O N M d ~ (O I~ 00 O O N N (0 (d O 0 0 N C f9 m N .~ _T (9 C Q (9 QI C .~ 7 O C O := U v C a d f0 .O C O U 0 0 N O N C 7 Disproportionate Housing Need Disproportionate need refers to any need that is more than 10 percentage points above the need demonstrated for the total households. The statistics referenced below are based on the data presented in Table II-U. Extremely Low Income Households (<=30 percent MFI) Extremely low-income households have the most disproportionate need of all segments due to their severe financial limitations. Within the City of Tustin, 88 percent of extremely low-income renter households have some housing problem compared to 56 percent of all renters, and 83 percent of this group was overpaying for housing (more than 30 percent of total income for housing expenses) compared to 37 percent of all renters. Disproportionate need was also found among owner-occupied households, with 75 percent having some housing problem compared to 33 percent for all owners. Within extremely low-income households, 73 percent were overpaying (>30 percent of income) compared to 29 percent of all owners. Vern Low Income Households (31-50 percent MFI) The problems of very low-income households were similar to those described for the extremely low-income group. A total of 94 percent of very low-income renters had some housing problem compared with 56 percent of all renters. Among very low income households, 83 percent were overpaying for housing as compared to 37 percent of all renters. Among owners, 85 percent of very low-income households had some problem compared to 45 percent of all owners and 77 percent were overpaying compared to 33 percent of all owners. Low Income Households (51-80 percent MFI) Low-income households also had disproportionate housing need, although not to the extent as the extremely low and very low groups. 75 percent of low-income renters had some housing problem compared to 56 percent of all renters. A total of 70 percent of low-income owners had some housing problem compared with 45 percent of all owners. Large Households (5 or more persons) Large households also had disproportionate housing need. 92 percent of large renter households had some housing problem compared to 56 percent of all renters. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-48 Supply and Demand Supply According to the 1990 Census, the City of Tustin had a total of 19,300 housing units, 95 percent of which were occupied. By 2000, the total number of housing units within the City increased to 25,406. Of these, 23,831 units or 94 percent were occupied. The City's housing stock is dominated by multiple-family units, which comprise 55 percent of the housing stock. While the number of single-family detached units has increased, the housing stock is still dominated by multi-family attached units. Table II-V, below, provides a summary of the housing supply by type of unit. Table II-V Housin g Inventory by Type of Unit City of Tustin 2000 No. of Units % of Stock Single-Family Detached 8,070 31.7% Single-Family Attached 3,457 13.6% 2-4 units 3,834 15.0% 5 or more units 9,218 36.2% Mobile Homes 702 3.0% Other 18 0.1 Total 25,406 100% Source: 2000 Census Demand According to the City's Comprehensive Housing Affordability Strategy (CHAS) (2008- 2018), two indicators of demand for housing, or housing need, are directly related to overpayment and overcrowding. The City of Tustin is required by California State law to provide in its Housing Element, housing needs projections through the use of the SCAG Regional Housing Needs Assessment (RHNA) model. SCAG is asked by the State to determine the fair share of housing for each jurisdiction in the area. The intent of SCAG's allocation of future needs is to balance the region's housing for all incomes. The RHNA consists of two components: 1) Existing Need 2) Future/Construction Need. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-49 In the 2007 RHNA Existing Need assessment, SCAG provides estimates of the number of low- income households paying more than 30 percent of their income for shelter and having housing problems such as overcrowding, and substandard housing (lack of adequate kitchen, toilet, heat or plumbing facilities). The SCAG's model utilizes information obtained from the 2000 Census and current household totals to derive estimates of overpayment, overcrowding and housing with problems. The numbers are only projections and intended as planning aides to jurisdictions in programming, goal setting and allocation of resources. The Existing Need numbers are not intended as construction target, nor are city expected to solve existing need. The estimated number of cost-burdened households in Tustin is presented in Table II-W: Table II-W Low Income Households Overpaying for Housing City of Tustin of Median Income Renters Owners Total Less Than 30% 855 340 1,195 31 % to 50% 865 350 1,215 51 % to 80% 940 585 1,525 81 % to 95% 260 425 685 Greater than 95% 160 1,410 1,570 Total 3,080 3,110 6,190 Source: Southern California Association of Governments; 2007 Regional Housing Needs Assessment (Existing Needs) HUD defines overcrowding as more than 1.0 person per room, excluding bathrooms and kitchens. Housing with occupancy of 1.01 to 1.50 persons per room is considered to be overcrowded, while housing with 1.51 persons per room or more is considered to be severely overcrowded, while 2.01 or more is extremely overcrowded. Based upon the 1990 Census, 16.2 percent of all renters, or approximately 1,757 households, lived in overcrowded conditions. As shown in Table II-X, for the 2000 Census, this proportion of persons living in overcrowded conditions increased significantly. Based upon year 2000 Census data, 18.4 percent of all households, or 3,569 rental households within the City of Tustin were living in overcrowded conditions. For owners, the proportion of households living in overcrowded conditions was much smaller, at 3.5 percent of all households within the City. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-50 Overall, 18.4 percent of Tustin's households lived in overcrowded conditions, as defined by HUD. Furthermore, households considered to be extremely overcrowded (with 2.01 or more occupants per room) increased significantly, with 1,426 renter occupied households and 135 owner occupied households, or 6.6 percent of the total households in the City extremely overcrowded. Table II-X Overcrowded Households City of Tustin 1.01 to 1.50 1.51 + Total of All Persons/Room Persons/Room Households Overcrowded (1.01+ Persons/Room Renter Households 1,094 4.6% 2,475 10.4% 3,569 15% Owner Households 400 1.7% 421 1.8% 821 3.5% Total Households 1,494 6.3% 2,896 12.2% 4,390 18.4% Source: 2000 U.S. Census According to SCAG, there were 4,285 overcrowded households in Tustin, representing 18 percent of total households, as summarized in Table II-Y below. Table II-Y SCAG 2007 RHNA Overcrowded Households, by Income Level City of Tustin Income Level Less than 31 % to 51 % to 81 % to Greater Than Total 30% 50% 80% 95% 95% Renters 520 870 1,100 425 550 3,465 Owners 45 140 225 85 325 820 Total 565 1,010 1,325 510 875 .Source: 2007 Regional Housing Needs Assessment (Existing Needs 4,285 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-51 Tenure According to 1990 Census data, 40.9 percent of the City's 18,332 occupied housing units were owner occupied and the rest were renter occupied. By the year 2000, Census figures indicate that of the 23,831 occupied housing units within the City of Tustin, 50.4 percent (12,011 units) were occupied by renters. This is slightly lower than the overall Los Angeles- Orange County MSA which is 51 percent owner occupied and 49 percent renter occupied. This is significant in part because renters tend to have lower incomes than owners and are more susceptible to housing cost increases, and may be more likely to reside in overcrowded conditions (more than one person per room). Table II-Z shows the relative proportions of renter and owner households in 1990 and 2000 U.S Census data. Owners comprised 49.6 percent of all households in 2000, up from 40.9 percent in 1990. The proportion of renter households decreased from 59.1 percent to 50.4 percent over this time period. A significant factor contributing to the increase in homeownership was both a regional correction in housing prices which made them more affordable to a greater number of households and also lower percentage rate financing which also enhanced purchasing ability. Table II-Z Renter and Owner- Occupied Housing Units City of Tustin 1990 and 2000 Housin4 Tenure 1990 Number Percent 2000 Number Percent Owner Occupied Renter Occupied 7,504 40.9% 10.828 59.1 Total Occupied Units 18,332 100.0% Source: 1990 and 2000 Census 11,829 49.6% 12,002 50.4% 23,831 100.0% Vacancy Rate According to 1990 Census data, the City's 1990 overall housing vacancy rate was 5 percent. Generally, a vacancy rate of less than 5 percent indicates a "tight" housing market. The for-sale vacancy rate was well below this at 1.5 percent in 1990. The rental vacancy rate, at 5.6 percent was slightly above the overall average. By 2000, the City of Tustin's vacancy rate increased to 6.5 percent, with for-sale vacancies of 181 units and 261 vacant rental units, and 1,206 units vacant for seasonal or other reasons, for a total of 1,648 vacant units. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-52 Table II-AA shows estimated breakdown of vacant units by their status, including "vacant for rent", vacant for sale", "seasonal". Table II-AA Housing Vacancy City of Tustin 2000 Housing Tenure Number Percent 261 1.0% Vacant Units for Rent Vacant Units for Sale Vacant -Seasonal/Other 181 0.7% 1,206 4.7% Subtotal-Vacant Units 1,648 Occupied Units Total Housing Units Source: 2000 Census 6.5% 23.838 93.5% 25,486 100.0% Condition Table II-BB compares the distribution of housing units in 1999 for the City of Tustin and the County of Orange by year built. The highest rate of housing construction occurred in Tustin during the 1960s, when the City gained almost one-third of its current housing units (32.1 percent). Tustin added another 25.2 percent of existing units during the 1970s, probably largely as a result of the annexation of existing units in previously unincorporated areas of the County. Of these units annexed during the 1970s, it is reasonable to assume that a large portion of the units were constructed prior to 1970. After a slower period of housing construction during the 1980s (13.9 percent of all units built), the 1990s have again seen increased housing development with 21.3 percent of Tustin's units built during this period, likely a result of the development of Tustin Ranch housing. By comparison, about one-quarter of the County's housing stock was built in the 1960s and another quarter was added during the 1970s. One-fifth of the County's units were built during the 1980s, decreasing to only 8.4 percent since 1990. Less than one tenth of Tustin's units were built prior to 1959 (7.6 percent) compared with 19.3 percent countywide. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-53 A total of 39.7 percent of Tustin's housing stock was built prior to 1969 and are at least 30 years old. This would indicate the potential need for rehabilitation and continued maintenance of 9,729 dwelling units. Table II-BB Distribution of Housing Units by Year Built City of Tustin and Orange County Year Built (Age of Structure) Number Percent 1939 or earlier (70 years or more) 451 1.8% 1940 to 1949 (60 to 69 years) 225 0.9% 1950 to 1959 (50 to 59 years) 1,285 5.0% 1960 to 1969 (40 to 49 years) 6,333 24.9% 1970 to 1979 (30 to 39 years) 6,238 24.5% 1980 to 1989 (20 to 29 years) 2,792 11.0% 1990 to 1994 (15 to 19 years) 3,240 12.7% 1995 to 1998 (12 to 14 years) 2,684 10.5% 1999 to 2000 (10 to 11 years) 590 2.3% 2001 to 2007 (9 years or less) 1,639 6.4% Total Housing Units 24,531 100.0% Source: Comprehensive Housing Affordabil 2008-2018 Substandard/Substandard Suitable for Substantial Rehabilitation As defined by the California Civil Code, a "Substandard" dwelling unit is one that is substantially lacking of any of the following: ~ Roof ~ Walls ~ Windows that do not leak ~ Working plumbing or gas facilities ~ Water supply of hot and cold running water connected to a sewage disposal system ~ Heating system that works ~ Electrical lighting and wiring in working order; ~ Building and grounds kept clean, sanitary, free from garbage, rodents, and vermin ~ Adequate number of garbage cans or dumpster in good repair ~ Floors, stairways and railing in good repair Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-54 ~ Other standards established by the state or local codes. A "Substandard Suitable for Substantial Rehabilitation" is defined by Community Redevelopment Law (CRL) as units where the rehabilitation value constitutes 25 percent of the after rehabilitation value of the units, inclusive of the land value. According to the City of Tustin's CHAS (2008-2018), Housing Needs Assessment, rehabilitation of the existing housing stock will be one of the City's biggest concerns over the next decade. A total of 57.1 percent of the City's housing stock was built prior to 1979 and is thus at least 31 years old. This indicates that 14,532 units are at the age when rehabilitation may be necessary, especially if maintenance has been deferred. Additionally, a total of 2,792 units will reach 30 years during the CHAS planning period which extends until the year 2018. Of these units, a large percentage was a result of annexation of existing units in previously unincorporated areas of the County. Therefore, more units maybe at the age of rehabilitation than the City anticipated. Of these the number of renter substandard units is probably greater than the number of owner substandard units. In 1990 the City implemented what is known as the Community Improvement Partnership Program (CIPP), which covers the southwest area of the City. The CIPP identified three target areas where improvement activities were focused. The CIPP included activities such as: development of Community Assistance Task Force, proactive Code Enforcement program, Graffiti Abatement program, and public education on property maintenance. This program evolved into what is now commonly known as the City's Code Enforcement Southwest Strategy. The Code Enforcement Southwest strategy has the same goals and objectives as the CIPP and has been actively involve in the property maintenance of the southwest neighborhood. Housing Costs Table II-CC displays the estimated median sales price for housing based upon the year 2000 Census, median home value for owners is $251,000. Overall, the values of Tustin's owner units closely track those for the County as a whole. Tustin had a good proportion of units (34 percent) valued in the affordable range under $199,999, reflecting the higher share of multifamily condominium units in the City. The largest proportion of Tustin's units are valued between $200,000 and $400,000 (50.8 percent), with 15 percent priced over $400,000. According to the City's 2009 Housing Element Technical Memorandum, 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 other nearby cities ranged from $205,000 to $819,500. Overall, median resale home prices in Tustin were similar to those occurring throughout Orange County. Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis II-55 Table II-CC Distribution of Owner-Occupied Housing Units by Value City of Tustin Price Number Percent Less than 100,000 1,102 9.3% $100,000 to $124,999 759 6.4% $125,000 to $149,999 879 7.4% $150,000 to $174,999 593 5.0% $175,000 to $199,999 715 6.0% $200, 000 to $249, 999 1, 832 15.5% $250,000 to $299,999 2,133 18.0% $300,000 to $399,999 2,051 17.3% $400,000 to $499,999 966 8.2% $500,000 to $749,999 619 5.2% $750,000 to $999,999 170 1.4% $1,000,000 or more 26 0.2% Total Units 11,845 100.0% Median Value $251,000 Source: 2000 Census Rental Housing The 1990 Census indicates that 50 percent of all rental units (including single-family homes and condominiums) in the City rent for more than $701 per month, and three- quarters rent for over $621 per month. By the 2000 Census, median gross rent increased to $895. Recent data regarding rental units compiled from the classified sections of the Orange County Edition of the Los Angeles Times and the Orange County Register reveals different rental costs. Of the listings found, almost all were for apartments. The majority of the units were one- and two-bedroom units, with most 3-bedroom units being single-family residences. Although Census data indicate lower rental rates, this non-scientific survey reflects higher rental prices with the average price for aone-bedroom being $975, fortwo- bedrooms the average was $1,350, and for athree-bedrooms it was $1,750+. Rental rates for apartments are generally lower than single-family homes, condominiums, and townhomes. Typically, single-family units were for three- and four- bedrooms. The average rent for single family home is between $2,000 and $2,400. Based upon this information the average apartment rental rates are found to be on average with HUD's 2010 Fair Market Rents (FMR) as shown on Table II-DD. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-56 Table II-DD Fair Market Rent Schedules Orange County 2010 Unit Type Fair Market Rent 0 Bedroom $ 1,183 1 Bedroom $ 1,336 2 Bedroom $ 1,594 3 Bedroom $ 2,256 4 Bedroom $ 2,597 Source: HUD Fair Market Rents for 2010 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-57 Special Needs Groups Certain segments of the population may have affordable housing due to special circumstances. alteration to housing to meet their needs. In Consolidated Plan, Tustin addresses the special stock the elderly, disabled, large families, the summarized below: Elderly Persons a more difficult time finding decent, These groups may require specific the requirements for preparing a needs and suitability of the housing homeless and farm workers, as Currently Tustin has a total of 190 affordable senior housing units and 24 assisted living facilities with 345 beds. The affordable senior housing units include a 100 units restricted to seniors (Tustin Gardens), a 20-unit apartment project limited solely to seniors with limited income (Tustin Terrace), an 16 apartment units that are State Bond/Tax Credit restricted (Westchester Park), and a 54-unit apartment project (Heritage Place). The special housing needs of the elderly are an important concern to the City of Tustin. This is especially significant because many retired persons are likely to be on fixed low incomes, and at greater risk of housing overpayment. In addition, the elderly maintain special needs related to housing construction and location. The elderly often require ramps, handrails, lower cupboards and counters to allow greater access and mobility. In terms of location, because of limited mobility the elderly also typically need access to public facilities (for example, medical and shopping requirements) and public transit services. Elderly citizens also may need special security devices for their homes to allow greater self-protection. In many instances, the elderly prefer to stay in their own dwellings rather than relocate to a retirement community, and may require assistance with home repairs and manual house/yard work. In general, every effort should be made to maintain their dignity, self-respect, and quality of life. Finding reliable means of transportation to medical appointments, senior centers, meal sites and shopping are also continued concerns for seniors. Many seniors lack private transportation due to physical or financial limitations. Most County agencies, including the County's Public Libraries, the Tax Collector, Assessors Office, County Clerk, Harbors Beaches and Parks, and the Probation Department, serve older adults among their general clienteles. The major County providers of important programs specifically for Orange County's older adult population are: ~ Office on Aging (OoA) ~ CaIOPTIMA ~ Health Care Agency (HCA) Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis II-58 ~ Housing and Community Development Department (H&CD) ~ Public Administrator/Public Guardian (PA/PG) ~ Social Services Agency (SSA) ~ Orange County Transportation Authority (OCTA) ~ Veterans Services Office (VSO) Table II-EE shows the number and percent of elderly persons in Tustin (65 and over) with disabilities. Any of these conditions may indicate a need for supportive housing. TABLE II-EE Elderly (65+) Disability Status, City of Tustin 2000 Disability Persons of Total in Cohort (65+) Senso disabilit 556 11.6% Ph sical disabilit 1,296 27.0% Mental disabilit 513 10.7% Self-care disabilit 444 9.2% Go-outside-home disabilit 964 20.1 Total (65+)' 4,804 100.0% Hn percentages are calculates on this tigure. Source: 2000 Census Large Families As evidenced by the survey of costs, discussed previously, for single-family rental units available, lower income; large families with larger unit needs may have problems finding housing or may require assistance. Table II-FF shows the number of large family owner and renter households in Tustin according to the 2000 Census. The 2000 Census reported 3,645 households in the City of Tustin with five or more persons, which constitute 15 percent of all households in the City. Of these, there were 1,491 owner-occupied and 2,154 renter occupied housing units. This is an increase from the 1990 Census where there were about 2,062 large households with five or more persons representing about 11 percent of all households. Large family households need special consideration because they generally require larger dwellings with sufficient bedrooms to meet their housing needs, without overcrowding. Additionally, there is a limited availability of 3+ bedroom apartment units in the City available to meet the needs of large families. Furthermore, 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. Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis II-59 Difficulties in securing housing large enough to accommodate all members of a household are heightened for renters, because multifamily rental units are typically smaller than single-family units. Thus, large families typically suffer disproportionately from both overcrowding and inability to pay. TABLE II-FF Large Households By Tenure, City of Tustin 2000 Number of Persons in Unit Owner Occupied Percent ~ Renter Occupied Percents Total Occupied Units Percent s Five 774 6.5% 1,058 8.8% 1,832 7.7% Six 400 3.4% 492 4.1 % 892 3.7% Seven or More 317 2.7% 604 5.0% 921 3.9% Total 1,491 12.6% 2,154 18.0% 3,645 15.3% ~ Total owner occupied units is 11,845. Percent of all owner-occupied units calculated on this figure. 2 Total renter occupied units is 11,993. Percent of renter-occupied units calculated on this figure. s Total occupied units is 23,838. Percent of total occupied units calculated on this figure. Source: 2000 Census Disabled Persons Tustin's Housing Element sets forth policies to encourage the development of handicapped-accessible housing. New construction of apartment units (including 1,652 in the East Tustin Specific Plan project area) developed in the City of Tustin during the 1980s and 1990s have been constructed in accordance with the State's Title 24 requirements, which required 5 percent of the units on the ground floor to built as handicapped-accessible units. New construction requirements for apartments and condominiums, effective in July 1993, must comply with the "California Multi-Family Disabled Access Regulations" which blends the regulations of the U.S. Fair Housing Amendments Act of 1988 (ADA) and the California Disabled Access Regulations (Title 24). In general, the regulations require accessibility and adaptability to ground floor units and other units where circumstances are determined favorable. Access and affordability are the two major housing concerns of disabled persons. Access is particularly important for the physically disabled. Physically disabled persons often required specially designed dwellings to permit access within the unit, such as lowered countertops, wider doorways, and modified bathroom facilities, as well as to and from the site. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-60 California Administrative Code Title 24 sets forth access and adaptability requirements for the physically handicapped (disabled). These regulations apply to public buildings such as motels, employee housing, factory-built housing and privately funded, newly constructed apartment houses containing five or more dwelling units. Regulations also require that ramp ways, door widths, restroom modifications, etc., be designed to enable free access to the handicapped. Such standards, however, are not mandatory for the construction of new single-family residential housing units. The disabled, like the elderly, have special needs with regard to the location of their housing unit. There is typically a desire to be located near public facilities and needed services, as well as close proximity to public transportation facilities that often provide needed mobility for them. Table II-GG shows disability data for Tustin residents in 2000, including those persons with physical and mental disabilities, representing a total of 15,799 disabilities, although some residents have more than one impairment and thus may have been counted twice. Especially of concern is the fact that many members of this demographic group are often on a fixed, most often lower income, and often rely on federal or state aid. TABLE II-GG Disabled Residents City of Tustin 2000 Persons 16 to 64 Years Senso disabili 587 Ph sical disabilit 1,455 Mental disabili 966 Self-care disabilit 364 Go-outside-home disabilit 3,268 Em to ment disabilit 5,386 Persons 65 Years and Over Senso disabilit 556 Ph sical disabilit 1,296 Mental disabilit 513 Self-care disabilit 444 Go-outside-home disabilit 964 Source: 2000 Census SF3 Table P41 Female Headed Households As seen in Table II-HH, 1,463 total households, or 7 percent of all households within the City of Tustin were living with incomes below the poverty level. As shown in Table 11-HH, there were 836 families with children under 18 years of age living below the poverty level, including 329 female-headed households. This is reflective of overall poverty trends. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-61 According to the Public Policy Institute of California, single-mother households have had very high poverty rates in California (about 30 percent) compared to an overall rate of 13 percent. This is especially troubling because "...Single mothers in poverty may increasingly find themselves in a "catch 22" situation: they may earn just enough from employment to move them beyond the income threshold necessary to qualify for means-tested public assistance, but not enough to provide for an adequate level of subsistence or to free them from the grasp of poverty." (Poverty and the Single Mother Family: A Macroeconomic Perspective, Bowen, et. al., 1995, p.117) TABLE II-HH Poverty by Household Type City of Tustin - 20 00 Household Type Income below poverty level Income above poverty level Total households Family households: 939 15,185 Married-couple family: 505 11,727 Householder under 25 years 47 317 Householder 25 to 44 ears 330 6,646 Householder 45 to 64 ears 99 3,660 Householder 65 years and over 29 1,104 Other famil 434 3,458 Male householder, no wife present: 67 983 Householder under 25 years 19 108 Householder 25 to 44 ears 29 625 Householder 45 to 64 ears 10 200 Householder 65 ears and over 9 50 Female householder, no husband present: 367 2,475 Householder under 25 years 67 171 Householder 25 to 44 ears 233 1,193 Householder 45 to 64 ears 51 806 Householder 65 years and over Nonfamil households: 524 7,205 Male householder: 167 3,337 Householder under 25 ears 35 187 Householder 25 to 44 ears 82 1,906 Householder 45 to 64 ears 31 953 Householder 65 ears and over 19 291 Female householder: 357 3,868 Householder under 25 ears 66 173 Householder 25 to 44 ears 68 1,429 Householder 45 to 64 ears 112 1,310 Householder 65 years and over Source: 2000 Census SF3, Table P92 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I - 62 TABLE II-II Poverty Level by Presence of Children Tustin - 2000 Family Type and Presence of Children e ow poverty level ove poverty level Income in 1999 below pove level: 939 15,185 Married-couple famil 505 11,727 With related children under 18 years: 449 6,525 Under 5 ears onl 70 1,739 Under 5 years and 5 to 17 ears 258 1,490 5 to 17 years only 121 3,296 No related children under 18 years 56 5,202 Other family: 434 3,458 Male householder, no wife present: 67 983 With related children under 18 years: 58 641 Under 5 years only 9 126 Under 5 ears and 5 to 17 years 13 177 5 to 17 ears only 36 338 No related children under 18 years 9 342 Female householder, no husband present: 367 2,475 With related children under 18 years: 329 1,450 Under 5 ears only 62 175 Under 5 years and 5 to 17 years 55 200 5 to 17 ears only 212 1,075 No related children under 18 years source: zuuu census srs i aoie rau Homeless Population Available statistics currently indicate that the City of Tustin does not have a significant population nor subpopulation of homeless persons or homeless families with children. The City anticipates that homeless persons and homeless persons with children will be assisted on an as needed basis by making appropriate referrals to organizations or agencies that provide shelter, food and other services for homeless persons and homeless families with children. However, the City of Tustin recognizes that homelessness is a regional issue which needs to be addressed by all jurisdictions regardless of individual circumstances. The City identifies the Homeless Housing Partnership Program as one of the strategies to address the homelessness issue. Within the City of Tustin, there are a variety of non-profit service providers which make direct housing and other supportive services available to homeless persons. These include a transitional housing facility, temporary housing for teenagers in crisis and a meals program affiliated with the United Way (Feedback Foundation). A number of churches in Tustin also provide food services to the homeless. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-63 Six transitional or emergency shelters in Tustin are the Sheepfold, Laurel House, Village of Hope, Human Options, Olive Crest, and Families Forward. The 38-bed Sheepfold transitional housing facility, located in "Old Town" Tustin, provides shelter, food, clothing, job training, and job-referral services to women with children. Laurel House provides temporary housing for teenagers in crisis (homeless and runaway youth) for up to six (6) youths in a home environment. The facility also provides food, informal counseling, access to medical care and clothing. The Orange County Rescue Mission located in the Tustin Legacy (former MCAS Tustin) provides transitional housing for a total of 192 homeless men, women and children, with facilities for 36 families and 88 single adults. Human Options provides six (6) transitional housing units for abused women and their children, giving them access to job training, counseling, job-referral, and a variety of other services. Olive Crest provides transitional housing for twenty-four (24) foster care children, ages 16-18, who will be emancipated from the foster care system after turning 18 years old. The children are provided shelter and taught life skills that will prepare them to be independent, self-sufficient adults. Families Forward provides transitional housing to homeless families, providing shelter, counseling, career coaching, and life-skills training.. Orange County Social Services also provides 90 beds for intermediate care shelter for abused children and their parents at the Tustin Family Campus at the Tustin Legacy. The City has developed a strategy that will continue to refer homeless persons and homeless families with children to service agencies and organizations. Through financial contributions, the City will support agencies which provide shelter and other services to the homeless. Farmworkers Prior to the 1970s there was a significant agricultural economy in Orange County. As a result, there was a significant population of migrant farm workers bringing with them a unique set of housing challenges. Changes in the local economy since then have drastically reduced agricultural production within the City limits. Today, Tustin's job base is concentrated in manufacturing, professional, educational and health occupations. In 2000, the Census reported 30 persons (less than one percent of total employed persons) in Tustin employed in agriculture or related industries. Though some remains, most land previously used for agricultural activities is currently developed or designated for commercial or residential development. As there are limited active agricultural areas in the City, there is no apparent or explicit need for farmworker housing. Persons Living with HIV/AIDS and their Families The AIDS Services Foundation acts as a referral agency for putting persons with HIV/AIDS and their families in contact with providers specializing in supportive housing Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-64 and services for these individuals. The Orange County Health Care Agency/HIV Planning and Coordination Department is responsible for preparing a Comprehensive HIV/AIDS Services Plan for the county, which includes the City of Tustin. In 2009, Orange County reported 241 AIDS cases, a 13 percent decrease from the 278 cases reported in 2008. Since the county's first AIDS case was reported in 1981, a total of 7,592 AIDS cases have been reported through December 2009. Of the total reported cases, 6,676 were living as of December 31, 2009. Orange County ranks sixth among twelve of California metropolitan areas, with 500,000 or more population, in cumulative AIDS cases reported through 2006. Between July 2002, when human immunodeficiency virus (HIV) infection became a reportable disease in California, and December 2009, there have been 2,844 HIV cases reported in the county. Among Orange County residents reported with AIDS since 1981, 48 percent have died as of December 2009 (3,645 of 7,592 cases). These numbers represent deaths among individuals reported with AIDS to the local HIV AIDS Reporting System CHARS). As noted above, in December 2009, an estimated 6,676 Orange County residents were living with AIDS, a 61 percent increase from 2000, which estimated 4,138 residents. The Orange County Health Care Agency's 2009 HIV/AIDS Fact Sheet, summarized trends in HIV/AIDS cases and conditions of People Living With HIV/AIDS: ~ Between 2008 and 2009, the number of people living with AIDS (PLWA) increased by 4 percent. ~ By gender, 87 percent of prevalent cases were male and 12 percent were female. ~ By race/ethnicity, 52 percent of prevalent cases were White, 38 percent Hispanic, and 5 percent African-American and 4 percent among Asian/Pacific Islanders. ~ There have been changes in the risk profile of persons living with AIDS. By exposure category, men who have sex with men (MSM) accounted for the largest number of prevalent cases (73 percent), followed by persons infected through heterosexual contact (11 percent), then followed by injection drug users (IDU) (7 percent), and men who have sex with men and are also injection drug users (MSM/IDU) (4 percent). Cumulatively, since 1981, the City of Tustin has had 186 reported cases of AIDS, an incidence rate of 248.6 per 100,000. AIDS cases have been reported in each of the 31 cities within the County of Orange. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I - 65 PART B. PUBLIC AND ASSISTED HOUSING INVENTORY Public Housing The City of Tustin does not have any public housing units, nor does the Orange County Housing Authority (OCHA) maintain this type of dwelling unit inventory, as it is defined by HUD regulations. However, the City participates in OCHA's tenant-based Section 8 program and maintains other types of assisted housing inventory (project-based) as discussed below. Founded in 1972 OCHA is part of the Orange County Housing and Community Development Department. OCHA administers the tenant-based Section 8 rental assistance program in the unincorporated areas of the county as well as in 30 participating cities. In addition to these households, OCHA provides assistance to clients who have elected to use their assistance in locations outside of OCHA's jurisdiction. Section 8 The OCHA has indicated that, as of March 2010, there were 332 households in Tustin that were receiving certificates and vouchers. All of these units were tenant-based and under a Housing Assistance Plan (HAP) contract. The City also has within its assisted unit inventory a Section 8 project-based program, which is "at-risk" of converting to market rents. OCHA was unable to determine the current number of inactive and pending certificates for Tustin. An inactive certificate describes certificate holders who do not locate a unit within the allowed time period (60 to 120 days). According to OCHA, the number of inactive certificates has decreased as they are now "portable" throughout California and are therefore easier to keep active. OCHA is not tracking the unused certificates by unit size separately for Tustin nor the number of units vacant. Other The 2009 Housing Element reported a total of four assisted housing projects comprising 277 assisted units in the City of Tustin that are at risk of converting to market rate housing. One of these projects (Tustin Gardens) consisting of 100 units is at risk of converting to market rate housing. This project has aproject-based Section 8 contract for 100 units. The Section 221(d) program insured below market rate loans for new construction or substantial rehabilitation multifamily rental properties. Low interest rate loans insured under this program offer incentives for the development of affordable rental housing that serve persons with incomes too high for public housing yet unable to afford market rate rents. The program provides interest rate reduction subsidies to affordable housing sponsors as well as rent subsidies for income-qualified tenants. In return for these subsidies, owners are required to rent units to low-income persons. After 20 years, the owner is permitted to prepay the remainder of the 40-year mortgage. With prepayment, Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I - 66 HUD affordability restrictions on the use of the property would expire. The owner of the project is Goldrich & Kest has indicated that they intend to continue or to accept Section 8 certificates for their project. The remaining three projects, containing a combined total of 177 assisted family units, received bond financing. These units are subject to income restrictions until year 2012, but no rent restrictions. All three projects are owned by The Irvine Company and are located in the East Tustin Specific Plan Area., Rancho Alisal contains 72 restricted units, Rancho Maderas 54 restricted units, and Rancho Tierra 51 restricted units. In addition, based upon the third Five-Year Implementation Plan of the Tustin Community Redevelopment Agency, the City has additional affordable housing units including Tustin Grove in the South Central area with 21 income restricted units, Ambrose Lane in Town Center with 8 restricted units, Hampton Square with 105 restricted units, and Flanders Point with 24 restricted units. In addition, there are several projects in Tustin Legacy that are affordable housing including Cambridge Lane with 36 units, Camden Place with 37, Clarendon with 42, and Coventry Court with153 senior housing units. Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis I I - 67 PART C. FACILITIES AND SERVICES FOR THE HOMELESS AND PERSONS THREATENED WITH HOMELESSNESS Within the City of Tustin, there are a variety of non-profit services which provide direct housing and other services to homeless persons. These include a transitional housing facility, temporary housing for teenagers in crisis and a meals program affiliated with the Community SeniorServ. A number of churches in Tustin also provide food services to the homeless. The five transitional or emergency shelters in Tustin are the Orange County Rescue Mission Village of Hope facility,- Sheepfold, Laurel House, Human Options, and Olive Crest. The 38-bed Sheepfold transitional housing facility, .located in "Old Town" Tustin, provides shelter, food, clothing, job training, and job-referral services to women with children. Guests are admitted on a first-come, first serve basis. Usually all beds are filled. In addition to serving the immediate Tustin area, The Sheepfold provides service to a large service area extending beyond Tustin's boundaries, including many portions of Orange and San Bernardino Counties. Laurel House provides temporary housing for teenagers in crisis (homeless and runaway youth) for up to six 6 youths in a home environment. The facility also provides food, informal counseling, access to medical care and clothing. The young people served are primarily Tustin residents and students of Tustin Unified School District. Olive Crest provides shelter and counseling to teenagers who are about to emancipate from the foster care system into independent living. They are also taught life skills such as making and following a budget, job search and interview skills to help them succeed when they live as independent adults. The Community SeniorServ focuses its resources toward the needs of senior citizens, including residents within the City of Tustin, by providing nutrition and supportive services, dining centers, home delivered meals, case management, in-home care, day health care centers, and adult day care. Services are offered to anyone who is in need, but primarily to seniors countywide. A number of local churches in Tustin also provide services to the homeless and low income families including St. Cecilia's, Redhill Lutheran which has a food pantry three days a week, Tustin Presbyterian Church which distributes collected food through the TAFFY Program and Tustin Senior Center, and Aldersgate Church which provides food to the Commercial Service Alliance. A couple of non-profits organizations such as Western Medical Center and Newport Medical Center also provide meals once a week to the homeless and low-income families. Numerous other agencies provide shelter and other services to the homeless in the nearby cities of Santa Ana, Irvine, and Orange. The City of Tustin makes referrals to these agencies, which include Mercy House Transitional Center in Santa Ana. The Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I - 68 Orange County Homeless Issues Task Force, a non-profit homeless advocacy organization, maintains a list of these and other homeless services in Orange County. In the City of Tustin's 2008-2018 Comprehensive Housing Affordability Strategy (CHAS), included within the affordable housing program elements, are programs targeted to prevent low-income individuals and families with children from becoming homeless. These programs include: Homeless Housing Partnership Program and Section 8 Rental Assistance. Homeless Housing Partnership Program The Tustin Housing Element identified that the Homeless Housing Partnership Program has a goal of creating 242 affordable housing units, all of which are planned to be located at Tustin Legacy. The Tustin CRA also would provide 48 temporary housing for families in need through agreements with non-profit housing providers. Section 8 Rental Assistance The basic concept of the Section 8 program is that a low income tenant pays up to 30 percent of income for rent (including utilities) in the private housing market, and government pays the landlord the difference between that amount and the market rent on the unit. The Orange County Housing Authority is allocated a given number of units for which Section 8 subsidy dollars are guaranteed. Eligible low-income families may apply for certificates to participate in the program. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-69 PART D. FACILITIES AND SERVICES FOR SPECIAL NEEDS GROUPS Residential Care Facilities for the Elderly (RCFE) provide care, supervision and assistance with activities of daily living, such as bathing and grooming. They may also provide incidental medical services under special care plans. The facilities provide services to persons 60 years of age and over and persons under 60 with compatible needs. RCFEs may also be known as assisted living facilities, retirement homes and board and care homes. The residents in these facilities require varying levels of personal care and protective supervision. The following is a listing of the inventory of licensed care facilities in the City of Tustin. The listing provides inventory of housing or supportive housing by type of special needs group: Elderly and Frail Elderly Blue Bird Manoor III 60 years old plus 12641 Elizabeth Way (6 Residents) Bonner House 60 years old plus 17391 Bonner Street (6 Residents) Candlewood Care Home 2 60 years old plus 1652 Melvin Way (6 Residents) Columns Care Home 60 years old plus 17332 Laurie Lane (6 Residents) Cranbrook of Tustin 60 years old plus 1262 Bryan Avenue (100 Residents) Danberry Residential Care 60 years old plus 14611 Danberry Circle (6 Residents) Fairmont House 60 years old plus 13642 Fairmont Way (6 Residents) Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-70 Family Villa Home Care 60 years old plus 13122 Woodlawn Avenue (6 Residents) G.M. Guest Home II 60 years old plus 17311 Vinewood Avenue (6 Residents) Gilda's Guest Home 60 years old plus 15621 Pacific Street (6 Residents) The Golden Years Guest Home 60 years old plus 14752 Holt Avenue (6 Residents) Heart of Gold Care Home 60 years old plus 18622 Manning Drive (6 Residents) Helena Gardens 60 years old plus 13762 Palace (6 Residents) Helena Gardens II 60 years old plus 13762 Palace (6 Residents) Helena House 60 years old plus 17421 Laurie Lane (6 Residents) Independent Care Service-No.2 60 years old plus 18092 17th Street (6 Residents) Lois Guest Home 60 years old plus 17582 Medford Avenue (6 Residents) Lois Guest Home II 60 years old plus 17562 Medford Avenue (6 Residents) Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-71 Magellan Guest Homes 60 years old plus 1321 Lear Lane (6 Residents) Magellan Guest Home II 60 years old plus 13581 Diamond Head Drive (6 Residents) Magellan Guest Home III 60 years old plus 13612 Utt Drive. (6 Residents) Magellan Guest Homes 4 60 years old plus 1732 Lance Drive (6 Residents) Premier Senior Living -Fairmont 60 years old plus 13792 Fairmont Way (6 Residents) Silverado Senior Living 60 years old plus 240 E. Third Street (42 Residents) TLC on Amagenset 60 years old plus 17602 Amaganset (6 Residents) TLC on Brookline 60 years old plus 14611 Brookline (6 Residents) Tustin Ranch Villa II 60 years old plus 15712 Pacific Street (6 Residents) Persons with Disabilities Casa Grande Community Care Ages 18-59, 14 Persons 15645 South "B" Street Mentally Disordered Gallegos Family Home Ages 5-17, 6 Children 13881 Karen Way Developmentally Disabled Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-72 Groom Family Home 14152 Woodlawn Avenue High Hopes Head Injury Program 14152 Woodlawn Avenue Scott Board and Care 12781 Dunas Road Arc Mid Cities 13791 Marshall Lane Tustin Villageway Guesthome 14452 Grassmere Lane Ages 18-59, 1 Person Developmentally Disabled 49 Person Head and Brain Injury Ages 18-59, 6 Persons Developmentally Disabled Ages 18-59, 6 Persons Developmentally Disabled Ages 18-59, 6 Persons Mentally Disordered Persons with Alcohol or Other Drug Addictions: The following is a listing of licensed residential facilities and/or certified alcohol and drug program provided by the State Department of Alcohol and Drug: Cornerstone of Southern California 4 13671 Rosalind Street (6 Residents) Cornerstone of Southern California 8 13672 Yorba Street Cornerstone Recovery Home Y11 13672 Yorba Street Serenity Recovery Center 14511 Carfax, Suite C (6 Residents) (6 Residents) (24 Residents) Persons Diagnosed with AIDS and Related Diseases: The City of Tustin does not maintain an inventory of facilities providing supportive housing for persons with AIDS and related diseases. According to the Orange County Health Care Agency Public Health Division -HIV Community Services, cumulatively, since 1981, the City of Tustin has had 186 reported cases of AIDS, an incidence rate of 248.6 per 100,000. Throughout Orange County, an estimated 6,676 residents are living with AIDS. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-73 PART E. BARRIERS TO AFFORDABLE HOUSING 1. Relevant Public Policies a. Description/Assessment -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. 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 & Swift estimates that the cost of residential two-story wood frame construction averages $87.85 per square foot, based on a two-story wood frame of average quality for the Orange County Area. 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 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-74 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 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 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 Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis II-75 to 9 percent of the selling price of single-family homes and slightly higher for attached units. According to the recently completed City of Tustin Comprehensive Affordable Housing Strategy, 2008-2018, 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 - 2018estimated developer overhead is at 4 percent of total development costs. Redevelopment Affordability Gap Analysis In addition to information related to Housing Constraints provided in the City's Housing Element, the CHAS (2008-2018) Affordability Gap Analysis to illustrate the "gap" between the cost of developing housing for rent and ownership in Tustin and what households at a variety of income levels can afford to pay toward their housing expense. Appendix C contains a complete copy of the gap analysis. Governmental Constraints Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvements 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 Tustin 2010-2015 Consolidated Plan Section I I -Housing Market Analysis II-76 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. Ten (10) units per net acre are also permitted in the MHP Mobilehome Park District. The Planned Community District has authorized residential subdivisions with single-family lots of 3,500-5,000 net square feet, which significantly increases density potential. The Planned Community Development also provides incentives such as no height limits when certain criterion are met and for innovative designs that incorporate small lots, residential clustering, mixed density, and mixed income types which also provides flexibility in overall density. 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. There are approximately 20 properties with an R-3 zoning designation that abut Single Family Residential (R-1) zoning comprised of a variety of older apartment units and several parcels within Old Town Tustin that are adjacent to the First Street commercial zoning areas. 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. When designed properly with features such as limited windows and door openings along the walls facing single family zoned properties or using stepped building heights and design to minimize intrusion to the privacy of existing residents, Conditional Use Permits to allow such development projects have been granted. Although, it should be noted that this restriction would not impact areas where future residential development are targeted within this planning period, since the City's RHNA quantified objective identified preservation of existing units and new construction units at Tustin Legacy where the 20 foot limitation would not be applicable. Conversely, within Neighborhood 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 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-77 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. The MCAS Tustin Specific Plan designation provides opportunities for development of a variety of residential products at varied density ranging up to 25 dwelling units per acre. Consistent with the City's policy to increase homeownership to maintain a balanced community, the majority of residential units authorized within the Specific Plan are owner-occupied units. However, in response to market demand, the City anticipates shortly processing an amendment to the MCAS Tustin Specific Plan that would allow for additional renter-occupied units, including affordable rental units. 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 build out of the MCAS Tustin Specific Plan is expected to occur incrementally over a 20+ year timeframe. The actual level of development within any given phase will be tied to the availability of infrastructure necessary to support such development. Implementation triggers of specific infrastructure improvements are included in the EIS/EIR for the project. Future market demand and the complexity and timing of environmental cleanup efforts are additional factors influencing the schedule of development. Other than the MCAS Tustin area, the Pacific Center East Specific Plan also provides another opportunity for residential development. Approximately 27 acres in size, the potential project site provides for the development of mixed uses including residential developments. The specific density for this project site has not been determined; however, approximately 300 units could be accommodated within this project site. The remaining opportunity sites consist of a large proportion of small vacant and underutilized land that is located within Redevelopment Project areas within the City or Old Town residential areas where infrastructure is available and no major Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-78 improvements would be anticipated. Limited residential uses are also permitted in areas designated Public/Institutional provided the intended occupants are associated with the primary institutional uses. Additionally, homeless facilities are permitted by right in the MCAS Tustin Specific Plan and are allowed throughout the remainder of the City either as an outright permitted or conditionally permitted use depending on the number of residents in the project. The City's Zoning Ordinance calculates parking requirements by unit type. 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. Carports for multi-family units are permitted which would reduce development costs in contrasts to the provision of garages. Furthermore, affordable and senior housing development meeting the State Density Bonus Law would be eligible to use the reduced parking standards under the State Law. 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. Atwo-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. Fees and Improvements 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 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-79 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. The City, in conjunction with the preparation of the Housing Element also prepared the Affordable Gap and Leveraged Financing Analysis. The analysis evaluated development costs to arrive to per unit affordability gap in producing affordable units. Table 12 and Table 13 of the analysis summarize average per unit development processing and impact fee of $29,277 to $37,530 per unit for owner housing prototype and $25,586 per unit for rental housing prototype In response to recent economic downturn, the City Council also adopted an economic stimulus program which allows the payment of specific development fees for construction of new residential units be deferred until either prior to final inspection or issuance of certificate of occupancy. This program would provide direct and indirect assistance to developer of residential units in that reduced on- hand cash flow were required at time of permit issuance. Building Codes and Enforcement 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 for building materials and incorporate seismic safety standards that add to construction costs. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-80 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, 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. Local 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 Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis I I - 81 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. The Design Review application does not require a public hearing or Planning Commission approval. The Tustin City Code authorizes the Community Development Director to approve development plans when findings can be made that the location, size, architectural features and general appearance of the proposed development will not impair the orderly and harmonious development of the area. In making such findings, the Zoning Code provides items to be considered such as height, bulk, setbacks, site planning, exterior materials and colors, relationship of the proposed structures with existing structures in the neighborhood, etc. This code provision affords the developers with tools to design their projects and thus increase certainty of project's design review and approval. Project application which complies with all the development standards prescribed by the district in which the project is located would not be required to go through any other discretionary approval. For Tustin Legacy, developments under the Master Developer footprint (approximately 800 acres) would be subject to the Legacy Park Design Guidelines to ensure compatibility of products proposed by vertical builders. The design guidelines present minimum design criteria for the achievement of functional, quality, and attractive development expected at the Tustin Legacy. The guidelines are intended to complement the MCAS Tustin Specific Plan district regulations and to provide staff, builders, design professionals, and other users with a concise document when dealing with Design Review process to avoid ambiguity. Together the zoning code, Design Review provision, the Legacy Park Design Guidelines, and the "one-stop" processing system provide certainty to developer seeking approval for the development of residential project. Additionally, for projects of 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 the amount of staff time available for processing development projects. Since the workload is Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-82 determined by outside and uncontrolled forces (economy and market for housing availability of general fund revenue), a shortage of staff time may occur which could lead to increased processing time for development projects. Tustin 2010-2015 Consolidated Plan Section II -Housing Market Analysis II-83 SECTION III. STRATEGIC PLAN This section establishes the general priorities for assisting extremely-low, low, moderate and middle income residents based on the analysis of the City's needs and market and inventory conditions, as described in Section I and Section II. This section also sets forth the strategy to be followed and the actions to be taken to address imbalances between the City's needs for housing assistance and the affordable and supportive housing services inventory. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-1 PART A. SUMMARY OF STRATEGIC PLAN Tustin's Strategic Plan is based on the City's housing needs as outlined in Section and Section II, the Affordability Gap Analysis prepared in the Comprehensive Housing Affordability Strategy (2008-2018) for the City of Tustin and Tustin Community Redevelopment Agency (CRA), and the anticipated availability of financial resources (both Federal and others). Several broad policies establish the framework within which the City's Strategic Plan has been developed. The key objectives include the following: 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; 5. Ensure new housing is sensitive to the existing natural and built environment. These broad policies for expenditure of the housing set-aside funds are designed to ensure that significant resources are available to accomplish specific program goals. In addition to the above broad policy direction, there are a number of specific procedural policy guidelines that will impact the City's allocation of funds to specific programs. The following guidelines are proposed. Geographic Taraetina Programs involving the substantial expenditure of public funds on a per unit or per household basis will be focused in identified target areas or sub areas in the South Central and Town Center Redevelopment Project Areas. By targeting redevelopment areas, Tustin retains the ability to combine housing set-aside funds with Federal and State funds to draw from a larger resource. Additionally, areas identified in Section Il as "areas of low-income concentration," low- and moderate-income," and "areas of racial/ethnic minority concentration" will also be areas of targeting. Programs requiring smaller financial subsidies or expenditures of staff time will be operated citywide as resources are available. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-2 Taraetinct of City Financial Resources Tustin will target its housing resources for households at various income levels and with special needs as close as possible to the distribution of extremely low, low, moderate and middle income households as defined in HUD's instructions for preparation of the Consolidated Plan, and will also incorporate the SCAG RHNA model for future needs as described in the Tustin Housing Element. This would mean that the City will make an effort to assist units in approximately the following income distribution levels consistent with HUD and the State Department of Housing and Community Development (HCD) and the proportionate share of each need income category as identified in the SCAG Regional Housing Needs Allocation (RHNA) model: 37 percent very low, 29 percent low and 34 percent moderate. This percentage of disbursement could change as HUD's requirements or SCAG's information changes or the City amends its Housing Element. Definition of Affordable Housin4 Expense Affordable housing expense will be defined for renters as rent plus utilities and for owners as principal, interest, property mortgage insurance (PMI), property taxes, insurance, condominium or maintenance expenses, utilities and other required housing expenses. State law and most federal affordability standards define affordable housing expense at 30 percent of gross income for renters (including rent and utilities) and 30 percent to 35 percent of gross income for owners (including principal, interest, property mortgage insurance (PMI), property taxes, insurance, homeowners fees, maintenance expenses, and other housing costs). For very low and lower income renter households, affordable housing expenses will be defined according to the largest subsidy program available for rental housing development: the low income housing tax credit program. Affordable housing expense for very low-income renter households is targeted to the "nine percent" low income housing tax credit program. To maximize the competitiveness of a project, a developer applying for an allocation of "nine percent" tax credits should set rents at levels affordable to families at an average of 48 percent of area median income, adjusted for household size. Affordable housing for lower income renter households is targeted to the tax exempt bond program and "four percent" tax credits. The maximum rent allowed under the tax exempt bond financing/four percent tax credits program is a rent level that is affordable to persons at 60 percent of area median income, adjusted for household size. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-3 Affordable housing expenses for very low, lower and moderate owner households are generally based on California Redevelopment Law definitions. While CRA defines affordable housing cost at 35 percent of 110 percent of median income for moderate income households, the amount of 35 percent of 100 percent of area median income was chosen because households at this income level are generally able to devote a larger percentage of their household income toward housing costs. In defining affordable housing expense for specific home ownership programs, the City will consider current underwriting practices to ensure the definitions do not exclude households form eligibility for private lending programs. In summary, the rule of thumb for maximum affordable housing expenses is defined in Table III-A below. Table III-A Affordable Housing Cost City of Tustin Definition of Maximum Affordable Housing Cost Income Level Rental Ownership Very low income 30% of 50% 30% of 50% (50% of median and below) Lower income 30% of 60% 30% of 70% (51 -80% of median) Moderate income 30% of 110% 35% of 110% (81-120% of median) Source: Comprehensive Affordable Housing Strategy (2008-2018). Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-4 Term of Affordability The length of time an assisted housing project must maintain affordability restrictions is referred to as the term of affordability. In the 1960s and 1970s, when HUD designed its assisted rental housing programs to provide for 20 years of affordability, it was considered a long-term program. But the 20-year period of many of these developments is coming to an end and the need for affordable housing has increased. HUD is faced with the choice of providing substantial additional subsidies to make it feasible for affordable housing developers to purchase these properties and keep them permanently affordable, or allowing the projects to convert to market rate, pricing most existing tenants out of their units. The trend in Federal and State affordable housing assistance programs is towards longer terms of affordability. To receive low-income housing tax credit allocations in California, project owners must agree to affordability restrictions of fifty-five (55) years: Local Califomia redevelopment law provides that housing assisted with redevelopment funds is to remain affordable for "the longest feasible time" as determined by the Redevelopment Agency, but for not less than the period of the land use controls established in the Redevelopment Plan. The National Affordable Housing Act of 1990 and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 both adopted "useful life" as the term of affordability for assisted housing. The useful life of the development--which is generally defined as the time period for which the project remains physically sound and can be maintained in good condition with the income generated by the payment of affordable housing costs--is the longest feasible time for which housing can be maintained as affordable to low and moderate income households. The resources to implement City housing- projects may come from many different sources with varying affordability term requirements. Projects using resources from multiple sources must comply with the most stringent standards of the sources used. The Tustin Community Redevelopment Agency's housing set-aside funds (the Low and Moderate Income Housing Fund) will be one of Tustin's primary sources of financial assistance for affordable housing. Any new or substantially rehabilitated housing assisted from the Low and Moderate Income Housing Fund must remain affordable to low and moderate income persons or households for "the longest feasible time" or the most stringent time standards required by the sources used. Substantial rehabilitation applies to rental properties with three or more units or single family (ownership) properties with one or two units, where the value of the rehabilitation work constitute 25 percent of the after rehabilitation value of the dwelling, inclusive of land value. The affordability with the housing set-aside funds must be made enforceable by the agency through the recordation of covenants or restrictions against the applicable parcel. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-5 Pursuant to California Government Code Section 65915, the City's density bonus ordinance adopted in November, 1999, and amended/updated in November 2006 provides a developer with developer incentives and a density bonus for the construction of affordable housing, if the developer agrees to ensure a continued affordability for all required units (target units) for a period of 30 years or longer period if required by the mortgage financing/mortgage insurance/rental subsidy programs. If only a density bonus is provided by the City, continued affordability must be guaranteed for 10 years for all target units. Even if the Low and Moderate Income Housing Fund rehabilitation assistance does not involve substantial rehabilitation, certain affordability controls may still be needed. For example, a deferred rehabilitation loan without some form of controls for the term of the loan might enable the recipient to prepare the dwelling unit for sale at a higher price, thus taking the unit out of the affordable housing stock and having the exact opposite effect of that intended by the extensive housing set-aside provisions. The Tustin Housing Element does require deed restrictions to prevent speculation on low or moderate income housing constructed or rehabilitated with the assistance of any public funds or Redevelopment housing set-aside funds as may be legally required by the use of such funds. Housing Type and Tenure The City will continue to pursue the creative use of various housing types and tenure to meet Tustin's affordable housing development objectives. Tustin can meet its affordable housing objectives by providing a variety of housing types and tenure. Rehabilitation resources will concentrate on rehabilitating units as close as possible to the percentage of the City's current tenure mix of 50.4 percent rental to 49.6 percent ownership (based on Census data from the year 2000). This nearly equal mix is a change from 1990 Census data which had a 60 percent rental and 40 percent owner mix. In new construction, an attempt will be made to concentrate resources on increasing homeownership opportunities so that 70 percent of new units enhance homeownership and 30 percent are affordable rental units. Tustin may wish to pursue alternative types of tenure, such as limited equity cooperatives. This type of tenure provides ownership opportunities for some households who otherwise could never afford an equity stake in housing within Tustin. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-6 Periodic Review of Housing Strategy The City will review its Housing Affordability Strategy policies, programs and assistance goals every five years or at least when it updates its Housing Element. Opportunity for an update will be afforded if General Plan Amendments are completed to support reuse at the MCAS Tustin. An annual review will also be afforded once Tustin prepares its Action Plan component of the Consolidated Plan required for entitlement grants under the Federal CDBG and HOME programs. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-7 SUMMARY A summary of the priority housing needs within the City of Tustin is provided in Table III-B (HUD Table 2A) below: TABLE III-B (HUD Table 2A) Priority Needs Summary Table PRIORITY Priority Need HOUSING NEEDS Level Unmet Goals households Hi h, Medium, Low Need L 478 12 0-30% Small Related M/H 795 47 31-50% M 819 46 51-80% L 287 33 0-30% Large Related M/H 513 33 31-50% M 655 10 51-80% Renter L 244 40 0-30% Elderly M 130 40 31-50% M/H 64 80 51-80% L 375 144 0-30% All Other L 329 48 31-50% L 554 0 51-80% L 388 0 0-30% Owner L 488 0 31-50% L/M 819 26 51-80% Special Populations L 0-80% Total Goals 559 Total 215 Goals 400 Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-8 PART B. STRATEGY FOR AFFORDABLE HOUSING Consistent with the policies discussed in Section III Part A, the City has devised a number of programs for housing assistance to address Tustin's housing needs. The programs are described in terms of activity types and are reflective of programs adopted as outlined in the Comprehensive Affordable Housing Strategy (2008- 2018). Many of the programs reinforce, in terms of housing assistance, the overall neighborhood revitalization effort the City has initiated in the South Central Redevelopment area. There are nine major housing program activity categories which relate to the City's established housing policies. HUD instructions for preparation of the Consolidated Plan require the City to identify the various priorities for allocating investment. According to Consolidated Plan preparation instructions, a "relative priority" of high, medium, low, or no such need is to be assigned to the various household types based upon the City's needs assessment combined with the availability of staffing and financial resources. Overall, in assigning priorities, Tustin has concentrated the high priorities where benefit to the greatest number of households could be achieved with less assistance dollars per household. This allows the monies available to serve more households. Finally, in implementing the Consolidated Plan, the City of Tustin will generally support applications for all programs and resources from eligible nonprofits and other entities where their activities provide assistance to the City's residents. With adequate program staff available for administration, the City also plans to apply for and pursue sources of program funds listed in Section IV of this document and other future funding sources that become available. 1. Priority Activity: Preservation of At-Risk Affordable Housing Rental (High Priority) a. Analysis In the 1960s and 1970s, several widely used HUD loan and rental assistance programs provided owners the opportunity to end affordability restrictions or opt out of rental assistance contracts prior to the full contract time, without HUD approval. As required by State law, the City's Housing Element includes a strategy to preserve the affordability of these units. 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. The City has identified 277 units of at-risk housing with expiring use restrictions within the six-year CHAS planning period, including 145 units of very low-income housing and 132 low-income housing. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-9 b. Strategy Development -Investment Plan Activities In response to concern over the imminent loss of assisted units, Congress passed the Emergency Low Income Housing Preservation Act of 1987 (ELIHPA) and the Low Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) to provide measures to preserve assisted housing and prevent the displacement of existing tenants. The restrictions on opt-outs from Section 8 contracts are not as limiting as those of ELIHPA or LIHPRHA. An owner whose contract provides the option may still elect to discontinue participating in the Section 8 program prior to the contract's expiration date as long as one year's advance notice is given to HUD. If discontinued, any affordability controls imposed by the contracts would no longer be binding. Programs Proposed form of assistance is described below: Preservation ofAt Risk Affordable Housin_g Rental Units 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 percent tax credits. The total amount of funds allocated to this program is $2,181,672. 2. Priority Activity: Rehabilitation of Existing Housing Stock (High Priorit a. Analysis As discussed in Section I, the City of Tustin has a large number of older housing units in need of rehabilitation in the areas within the South Central and Town Center Redevelopment Project Areas. Additionally, other areas in the City with high concentrations of low- and moderate-income households, and racial/ethnic minority households will be targeted. These include single-family units, small two to eight unit apartment projects and larger apartment complexes. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-10 As outlined in Section I, Census data indicate that renters experience higher incidences of housing problems and cost burdens than owners. The City also has an unusually high ratio of renter to owner households. Consequently the City has placed emphasis on the assistance needed for renter households. Income levels targeted for rehabilitation assistance for the owner-occupied component are between 80-120 percent of median while the assistance to the renter-occupied component is targeted to income at or below 120 percent of median. b. Strategy Development -Investment Plan Activities Since the South Central Redevelopment Project Area has a number of smaller apartment projects containing two to eight units each, the rehabilitation and preservation of these units is considered critical to the success of the City's housing revitalization efforts. The City's goals for the area are to increase homeownership opportunities, balance the income mix by increasing the number of moderate income households, and improve the housing stock while preserving affordability for existing low income residents. The South Central Project Area also has pockets of single family housing in need of repair and rehabilitation. This program has assisted low and moderate income homeowners in target areas to upgrade their properties as well. Programs 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 multi-family units citywide, including the South Central Project Area. The City's goals under this program are to rehabilitate 162 units, including 54 single-family units and 108 multi-family units. Owner Rehabilitation Loans or Grants (Low Priority) The Tustin Community Redevelopment Agency will continue to provide rehabilitation loans and grants for owner-occupied single-family properties within certain specified target areas for households at or below 120 percent of median income, adjusted for household size. Eligible improvements include: painting, re-stuccoing of building exteriors, existing fence and wall replacement or repair, plumbing repairs, stairway, roof, window, and driveway repairs and general yard cleanup. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-11 Low and Moderate Income Housing Funds and future CDBG and/or HOME funds will be used for the program. In the case of the CDBG and HOME programs, the City will need to ensure that program guidelines respond to the specific legislative restrictions of each of these programs. Loan proceeds are designed to be returned to a revolving loan fund upon sale or transfer of property or violation of any required deed restriction (i.e. failure to maintain dwelling). Multi-Family Acquisition, Substantial Rehabilitation, and Conversion to Ownership Housin_g (Hi_gh Priorifir): Many of the City's small two-eight unit apartments in the South Central Project Area are owned by absentee landlords and managed by apartment management companies. Absentee owners of rental units purchased for future speculative value, perhaps with the thought of redevelopment of existing properties, may be less inclined to make a short-term investment to maintain the condition of existing properties, while submitting to long-term affordability restrictions. A multi-family acquisition and rehabilitation program is proposed whereby the Tustin CRA will act directly or as a catalyst for the acquisition, rehabilitation and, where possible, conversion of these units to ownership housing, such as condominiums or cooperatives. Structuring financial assistance in the form of deferred loan secured by a deed of trust on the assisted property can provide further assurance that affordability will be maintained. A deed of trust provides that if the borrower defaults in a promise (either for repayment or maintenance of housing affordability), the Agency can take over the property. Also the combination of deferred loan and recorded restrictions would reduce the risk of units be converted to market rate. Rental Rehabilitation Loans or Grants (Low Priorityl: As in the case of the owner rehabilitation program, the Tustin Community Redevelopment Agency will continue to provide loans and grants to owners of rental property in need of moderate rehabilitation where a majority of existing tenants (51 percent) are at or below 120 percent of median income and rents remain within Fair Market Rent (FMR) levels for the term of the loan. Again, housing set-aside and future CDBG and/or HOME funds will be utilized. In the case of the CDBG and HOME programs, the City will need to ensure program guidelines respond to the specific legislative restrictions of each of these programs, including income restrictions. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-12 Small Project Multi-Family Rental Acquisition and Rehabilitation (Medium Priority): Units in small projects (two to eight units) purchased form absentee landlords and rehabilitated could be retained in non-profit ownership and rented to qualifying low-income tenants with rental restrictions in place. If substantial rehabilitation is involved, the City and/or the Tustin CRA is required to restrict the occupancy to eligible families for the longest feasible time determined by the Agency, but not less than the period of land use controls under the redevelopment plan. In this case, the City and/or the Tustin CRA would record in the County Recorder's office, a regulatory agreement, restrictive covenant, or other document outlining the rental restrictions placed on the property. 4. Priority Activity: New Housing Construction (Priority Varies by Pro ram a. Analysis As discussed in Section I previously, the City of Tustin has requirements to meet the regional objectives to provide the City's fair share of housing units in various income ranges as received from SCAG and to increase home ownership in the City. In the past, new housing construction projects have primarily focused on meeting these objectives. Tustin will continue to make an attempt to meet SCAG's RHNA model objectives. With the exception of development opportunity that will occur on the MCAS, Tustin site, the City is mostly built-out. Consequently, Tustin is looking towards the development of primarily in-fill housing development. b. Strategy Development -Investment Plan Activities The City will assist in the development of affordable new owner and senior rental housing in Tustin compatible with surrounding neighborhoods. Consistent with the City's housing policies, priority for new construction assistance will be given to ownership housing. The City's General Plan provides mixed-use site opportunities in Old Town where new ownership housing could be constructed. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-13 Proctrams The City has limited opportunities for new ownership and rental construction on in-fill sites in the City. These programs would assist the development of affordable units within newly constructed projects in the City's two redevelopment areas. Ownership Multi-Family New Construction The City 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, 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 seven units affordable to very low-income households and 11 units affordable to low-income households. Multi-Family Rental New Construction 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 flay prototype, assuming leverage from 4 percent tax credits and tax-exempt bonds. Additional leverage may be obtained if the City is able to identify a project competitive for the nine percent 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. 5. Priority Activity: Homebuyer Assistance (High Priority) 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. There are two components of the homebuyers program. Downpayment assistance loans to low- moderate income households will be provided citywide. Finally, the Mortgage Credit Certificate (MCC) program is a Federal program which allows first-time homebuyers to receive a Federal income tax credit for a portion of their mortgage payment (effectively reducing their housing payment). Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-14 a. Analysis 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. b. Strategy Development -Investment Plan Activities Downpayment Assistance Potential low and moderate income first-time home buyers may have adequate incomes to qualify for mortgages to purchase houses but may lack sufficient savings to make downpayments and pay closing costs. Often downpayments are from 5 percent to 10 percent of the purchase prices and closing costs may be an additional 3 percent. By providing financial assistance through the City's First Time Homebuyers loan program, the City can continue to assists potential low to moderate income homebuyers whose savings and/or income are insufficient to qualify for home mortgages without assistance. The City's assistance takes the form of a second trust deed, which serves to provide assistance for downpayment and closing costs and lower monthly payments. The program also serves to reduce the "affordability gap" when combined with the first time homebuyer programs Resale restrictions and purchase options are placed on the units, which limit the extent to which prices may increase and preserve the benefit of the Agency's subsidy for future owners. While the homeowner's potential financial benefit from price appreciation is limited under the terms of the second trust deed loan, the owner continues to receive the remaining benefits of home ownership including: mortgage interest and property tax reductions; limited appreciation; and family and neighborhood stability. The City records in the County Recorder's office, a regulatory agreement and restrictive covenant with other related documents giving constructive notice to future potential owners of the housing restrictions. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-15 Mortgage Credit Certificate (MCC) Program The Mortgage Credit Certificate (MCC) program is a federal program, administered through the County of Orange, which allows first-time homebuyers to receive a federal income tax credit for 15 percent of their mortgage interest payments. Mortgage lenders view the credit as a reduction of housing payment or an increase in income to assist households in need. The federal government has established income restrictions for the program and encourages the MCC program to be combined with other first-time homebuyer programs. The income limits were established for the County of Orange MCC program as summarized in Table III-C below. Table III-C MCC Income Limits Household Size 1-2 Persons 3 Persons or more ' As defined by the Statute Target Areas' and Non-Target Areas' $111,600 $130,200 Source: National Homebuyers Fund, Inc., 2010 The City's financial obligations to participate in the program are minimal. Program allocations are based on the dollar certificates. The City or the Tustin CRA would be required to hold in a reserve account 1 percent of the allocation requested. In addition, Tustin would also be responsible for its fair share of administrative costs. 4. Priority Activity: Tustin Legacy New Housing Construction (Priority Varies by Program) As discussed in Section I previously, the City of Tustin has requirements to meet the regional objectives to provide the City's fair share of housing units in various income ranges as received from SCAG and to increase home ownership in the City. In the past, new housing construction projects have primarily focused on meeting these objectives. Tustin will continue to make an attempt to meet SCAG's RHNA model objectives. A large majority of the City is already development and the MCAS Redevelopment Project Area is an opportunity for the City to create a significant number of affordable units on primarily vacant and former military land. The build-out of the former Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-16 military base will serve as the last large scale development opportunity in the City. a. Analysis The City's development agreements for Tustin Legacy are projected to create 323 new affordable multi-family ownership units and 253 new affordable rental units in the City over the six-year CHAS planning period. b. Strategy Development -Investment Plan Activities Tustin LeQacy Ownership Multi-Family New Construction The City's development agreements include 130 units in the 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. Tustin Le_gacy Rental New Construction The City's development agreements include 126 affordable rental units for very low-income households, 64 affordable units to low- income households, and 63 units 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. 5. Priority Activity: Support and Ancillary Services (High Priority) Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-17 The City of Tustin has identified three particular activities that are supportive and ancillary services to address the specific needs of Tustin's residents: Homeless Assistance Partnership Program and Existing Section 8 Rental Assistance, and administrative support for the affordable housing activities. These activities are discussed below but do not preclude the utilization of other support services that may become available or become necessary to support affordable housing units for a particular population group. a. Analysis Homeless Housin_g Partnership Program Assistance in providing supportive housing and supportive services to help homeless persons and families transition from homeless to living as independently as possible. The Homeless Housing Partnership Program includes transitional housing to facilitate the movement of homeless individuals and families to permanent housing within 24 months and supportive services designed to address the special needs of homeless persons. Existin_g Section 8 Rental Assistance Low and very low-income residents of the City may apply for Section 8 rental assistance certificates and voucher certificate program assistance funds allocated through the Orange County Housing Authority (OCHA). The basic concept behind the Section 8 program is that a low income tenant pays up to 30 percent of income for rent (including utilities) in the private housing market, and the government pays the landlord the difference between that amount and the market rent on the unit. The numbers of the non-homeless special needs households are not significant in Tustin, and there are not significant numbers of Tustin residents on OCHA's waiting list for the Section 8 program. Therefore, a low priority ranking has been assigned under non-homeless persons with special needs on Table III-D. Administrative Support for Affordable Housing Activities The CRA will provide administrative support to implement its affordable housing activities. b. Strategy Development -Investment Plan Activities Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-18 Homeless Housin_g Partnership Program The City's Housing Element identified a goal of preserving and/or creating 272 housing units under this program. Other local nonprofit housing providers will operate 48 additional scattered housing units to provide temporary housing for families in need under agreement with the Redevelopment Agency. Section 8 Rental Assistance OCHA is allocated a given number of units for which Section 8 subsidy dollars are guaranteed. The current Section 8 Program has no limits on rents, but instead, there is a payment "standard" which is equal to the fair market rent for Section 8 existing housing. The subsidy payment for a voucher holder is the difference between the payment standard and 30 percent of the tenant's adjusted income, regardless of actual unit rent. Administrative Support for Affordable Housin_g Activities The CRA will provide administrative support to implement its affordable housing activities. The CRA projects operating expenses of $4.95 million over the six-year CHAS planning period. Programs Homeless Housing Partnership Program A detailed discussion on this program is covered under Part C: Strategy for Homelessness. Existin_g Section 8 Rental Assistance Eligible very-low and low-income families in Tustin may apply for certificates to participate in the program. The City will continue to contract with OCHA for this program and make appropriate referrals. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-19 PART C. STRATEGY FOR HOMELESSNESS Available statistics currently indicate that the City of Tustin does not have a significant population nor subpopulation of homeless persons or homeless families with children. The City anticipates that homeless persons and homeless persons with children will be assisted on an as needed basis by making appropriate referrals to organizations or agencies that provide shelter, food and other services for homeless persons and homeless families with children. For these reasons, all of the homeless needs have been assigned a low priority ranking. However, the City of Tustin recognizes that homelessness is a regional issue which needs to be addressed by all jurisdictions regardless of individual circumstances. The CHAS identifies the Homeless Housing Partnership Program. The Homeless Housing Partnership program provides assistance for supportive housing and supportive services to help homeless persons and families transition from homelessness to living as independently as possible. The Homeless Housing Partnership Program includes 192 transitional housing units at the Village of Hope campus (operated by the Orange County Rescue Mission) to facilitate the movement of homeless individuals and families to permanent housing within 24 months and supportive services designed to address the special needs of homeless persons. To address the regional needs of homeless individuals and families, the City of Tustin participates in the Continuum of Care (CoC) program sponsored through the County of Orange. The purpose of the Continuum of Care Homeless Assistance Programs is to fund projects that will fill gaps in locally developed Continuum of Care systems to assist homeless persons to move to self-sufficiency and permanent housing. An important element of meeting this objective is to fund projects that will meet the Department's goal of ending chronic homelessness. Since the year 2000, the County of Orange has coordinated an "Associated Application" for homeless assistance on behalf of all jurisdictions and agencies in the County of Orange who wished to participate. The County of Orange/Housing and Community Services Department (HCS) is responsible for oversight, planning and coordination of the Continuum of Care Strategy, application process, and project evaluation and prioritization. A Continuum of Care system is developed through acommunity-wide process involving nonprofit organizations, government agencies, other homeless providers, housing developers, services providers, private foundations, neighborhood groups, and homeless or formerly homeless persons. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-20 The Orange County Continuum of Care (CoC) system consists of five basic components: (1) Advocacy on behalf of those who are homeless or at-risk of becoming homeless and to ensure social justice is maintained for all residents regardless of socio-economic status; (2) A system of outreach, assessment, and prevention for determining the needs and conditions of an individual or family who is homeless; (3) Emergency shelters with appropriate supportive services to help ensure that homeless individuals and families receive adequate emergency shelter and referral to necessary service providers or housing finders; (4) Transitional housing with appropriate supportive services to help those homeless individuals and families who are not prepared to make the transition to permanent housing and independent living; and (5) Permanent housing, or permanent supportive housing, to help meet the long-term needs of homeless individuals and families. The 2009 Continuum of Care SuperNOFA is designed to fund the following components in the Orange County Continuum of Care system for homeless individuals and families: (1) homeless outreach and assessment, (2) transitional housing and appropriate supportive services, and (3) permanent housing or permanent supportive housing, and 4) HMIS. The remaining components of the Orange County's system of care are funded through a variety of other sources. In conjunction with the CoC, each year, the County of Orange conducts a regional homeless needs assessment. Hundreds of homeless shelters and service providers throughout the County are surveyed to count: ~ Existing inventory of beds and services ~ Number of homeless {s Homeless demographics ~ Housing Authority "waiting list" statistics ~ Social Services Agency welfare statistics ~ Health Care Agency statistics for homeless ~ Other regional data Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-21 The City also has developed a strategy to address the following: 1. Helping low-income families avoid becoming homeless. 2. Reaching out to homeless persons and assessing their individual needs. 3. Addressing the emergency shelter and transitional housing needs of homeless persons. 4. Helping homeless persons make the transition to permanent housing and independent living. The priority homeless needs table prescribed by HUD prioritizes the needs contained in the four strategies listed above. The City of Tustin will meet these needs of homeless persons and homeless families with children through the following strategies: 1. Continue to refer homeless persons and homeless families with children to service agencies and organizations; 2. Support agencies which provide shelter and other services to the homeless through financial contributions funded through the CDBG Program. 3. Provide for and support the establishment of a homeless accommodation strategy in the reuse of Marine Corps Air Station, Tustin. The City of Tustin has prepared aReuse/Specific Plan for Marine Corps Air Station (MCAS) Tustin, which was closed July 1999. The Reuse Plan provides the following fundamental guiding principles: a. Coordination and cooperation among the Cities of Tustin and Irvine, support service providers, school districts and advocates for the homeless should be promoted. b. Creating a program and service system separate from the mainstream is inefficient and not consistent with the concept of breaking the cycle of homelessness. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-22 c. Established public and private providers should be used for delivery on-site or off-site (by contracting and visiting clinical personnel) of certain program and services. This should be the preferred approach and will assist in the streamlining and consolidation of existing programs. d. Linkages with job-training, employment and education should be encouraged. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan i I I-23 PART D. STRATEGY FOR SPECIAL NEED GROUPS The City of Tustin has analyzed the needs of persons, including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addiction, persons with HIV/AIDS and their families, and public housing residents, who are not homeless but require supportive housing. The housing and supportive needs of the greatest priority for the City of Tustin are described below: 1. Elderly/Frail Elderly: The elderly are in need of case management, meal delivery, transportation and shared housing services. 2. Severe Mental Illness: The City is unable to adequately estimate the needs of this population. Individuals in need of assistance are referred to the Orange County Health Care Agency. 3. Developmentally/Physically Disabled: The individuals are in need of supportive housing that accommodates independent living. 4. Alcohol/Other Drug Addiction: These individuals are in need of supportive housing and services which address individual needs. Persons in need of assistance are referred to the Orange County Health Care Agency. 5. AIDS/HIV: These individuals are in need of supportive housing and services which address individual needs. Currently the AIDS Services Foundation acts as a referral agency for putting persons with AIDS/HIV and their families in contact with appropriate service providers. 6. Public Housing Residents: There are no public housing residents within the City of Tustin. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-24 PART E. NONHOUSING COMMUNITY DEVELOPMENT PLAN The City of Tustin is seeking assistance under the Community Development Block Grant program. Therefore, the Consolidated Plan is required to describe the City's priority non-housing community development needs eligible for assistance under HUD's community development programs by CDBG eligibility category. The needs of families for each type of activity, as appropriate, in terms of dollar amounts estimated to meet the priority need for the type of activity are shown in Table III-D (HUD Table 2B). The non-housing community development needs are categorized in Table III-D as public facility needs, infrastructure improvement, public service needs, accessibility needs, historic preservation needs, economic development needs, other community development needs, and planning. Some of these categories contain specific needs which are listed in the Table. The City has identified the following specific needs with a high priority ranking and has provided a description of the specific need: Youth Centers/Services Youth Centers have been identified by the community as essential for providing recreational options to area youths. The target area for the CDBG program is severely limited in its park and recreation resources available to area youth desiring to participate in constructive, organized activities. Neighborhood Facilities Community facilities to serve children, youth, adults are a medium priority for the City of Tustin. As identified under other categories in this section, the number of existing facilities is not adequate to serve the growing population and the changing needs of target area residents. Fire Station The Tustin Legacy, as a new community, is in need of infrastructure and services already in place in established communities. Locating emergency response services, such as a fire station, at the Tustin Legacy is a high priority. Parking Facilities Parking facilities have been identified as a medium priority need for the City. A city- owned public parking facility serving Old Town is in need of rehabilitation and accessibility upgrades. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-25 Asbestos Removal Older private and public structures in the City may still contain asbestos material. Asbestos removal is a medium priority and efforts initiated by the City will be for public structures and facilities. Street and Sidewalk Improvements/Infrastructure The majority of the street and sidewalk improvements as well as other types of infrastructure in the target area were constructed more than 30 years ago. Also, some areas were never developed with sidewalks. These facilities have reached the age where they are beginning to deteriorate more rapidly and require reconstruction. The City identified street and sidewalk improvement as a high priority. Water/Sewer Improvements Water and sewer improvements have been identified as a medium priority for the City. Infrastructure, such as water wells, are in need of rehabilitation and improvements. Public Services Priorities for public services activities vary by activity. The City has identified that the graffiti abatement program is a high priority in that quick response graffiti removal help control blight. Other activities, such as transportation services, substance abuse services, and employment training are ranked a medium priority. Crime Awareness The target area has become the community's highest priority for crime prevention activities, given the increasing population density and increasing need for police services. The population is a potential target for victim related crime which could be prevented through the implementation of crime awareness programs. Child Care Facilities/Services Existing Child Care Facilities and Services affordable to low- and moderate-income families are inadequate to serve the number of families in need in the target area. In addition, the ethnic diversity in this area further complicates the problem. The City identified the need for adequate and affordable Child Care Facilities and Services as a high priority. Senior Services Area senior services are presently provided through the City's full service senior center located in Old Town Tustin. Although the senior center is not geographically distant Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-26 from the target area, multicultural and economic limitations and barriers may be preventing full participation in the center's programs. Additional services are necessary to target this population. The City identified senior services as a high priority. Recreation Facilities The City's CDBG target area was largely planned and developed prior to annexation by the City of Tustin when the area was part of unincorporated Orange County. Therefore, the area is comparatively limited in terms of park and recreational opportunities. The higher population density within the target area also contributes to the need for recreational facilities. As a result, considerable attention has been focused on ways to provide additional private and public youth, adult, and senior services and facilities to supplement those which are heavily utilized at this time. The City identified the need for additional recreational facilities and services as a medium and high priority of the community depending on the facility. Economic Development Commercial and shopping centers within the target area are located on relatively small or shallow lots that lend themselves mainly to "strip mall" type developments for small business. The city has identified commercial/industrial redevelopment, Town Center: A New Beginning Implementation, and developing and implementing a "Shop Locally" campaign as high priority activities. Code Enforcement Property maintenance issues are of significant importance to the community as the majority of residential, commercial and industrial structures in the target area are at least 25 years in age. Absentee property owners and declining rent structures have contributed to delayed property maintenance in many cases. Active code enforcement is needed to ensure that properties are properly maintained in accordance with City standards. Planning Planning services are needed to administer the CDBG program and to provide fair housing assistance. These services are necessary to support the other priorities of the target area including planning activities for the implementation of the Town Center - A New Beginning program within the CDBG target area. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan f I I-27 TABLE III-D (HUD Table 2B) COMMUNITY DEVELOPMENT NEEDS Priority Need Estimated Estimated PRIORITY COMMUNITY Level Priority Dollars to DEVELOPMENT NEEDS High, Medium, pow, Units Address No Such Need PUBLIC FACILITY NEEDS Tustin Family and Youth Center M $900,0002 Addition Acquisition Parks and/or Recreation Facilities 1. Tustin Sports Park Baseball 3 H $200,000 Diamond #2 2. Tustin Sports Park Ball 3 $200,000 Diamond Renovations H 3. Tustin Sports Park 3 M $2,500,000 Multipurpose Fields 4. Centennial Park Playground 3 $76,000 Renovation M 5. Southwest Park Site $700,0003 Acquisition H 6. Frontier Park Handball Court M $85,0003 Renovation 7. Columbus Tustin Playground M $145,0003 Renovation 8. Columbus Tustin Sports Fields H $245,0003 Renovation 9. Columbus Tustin Park Picnic M $74,0003 Shelter Replacement Fire Station #37: relocation to H $5,500,000 Tustin Legacy Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-28 Priority Need Estimated Estimated PRIORITY COMMUNITY Level Priority Dollars to DEVELOPMENT NEEDS High, Medium, Low, Units Address No Such Need Health Facilities N Parking Facilities: Stevens Square -Elevator and resurfacing the upper M $550,0006 parking level (106 publicly owned spaces) to address ADA accessibility Solid Waste Disposal ~ Improvements N Asbestos Removal: Community $1,000,0005 Park site M Non-Residential Historic ~ Preservation ~ Other Public Facility Needs H ~ INFRASTRUCTURE Water/Sewer Improvements: various well rehab projects at Beneta M $4,500,0003' a Way and Columbus-Tustin Street Improvements $30,000,0003 1. Tustin Ranch Road (Warner to H Walnut) 2. Armstrong Ave (Warner to H $8,000,000 Barranca) 3. Red Hill Grade Separation at M $86,000,000 SCRRA/OCTA R/W & Edinger 4. Warner Avenue (Red Hill to M $14,000,000 Armstrong) 5. Newport Avenue (Phase II) M $45,500,000 Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-29 PRIORITY COMMUNITY DEVELOPMENT NEEDS Priority Need Level High, Medium, how, No Such Need Estimated Priority Units Estimated Dollars to Address Sidewalks H $500,0003 Sewer Improvements M Flood Drain Improvements 1. Peters Canyon Channel 2. Barranca Channel Improvements 3. Barranca Retention Basin H H M $22,000,000 $7,000,000 $1,000,000 Other Infrastructure Needs ~ $1,000,0005 PUBLIC SERVICE NEEDS Handicapped Services ~ Transportation Services M ~ Substance Abuse Services M $40,000 Employment Training M Health Services N Graffiti Abatement H $1,000,000 Other Public Service Needs N ANTI-CRIME PROGRAMS Crime Awareness H $125,000 Other Anti-Crime Programs H ~ YOUTH PROGRAMS Youth Centers H $800,0002 Child Care Centers H >> 2 Youth Services M $550,000 Other Youth Programs H ~ Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-30 Priority Need Estimated Estimated PRIORITY COMMUNITY Level Priority Dollars to DEVELOPMENT NEEDS High, Medium, Low, Units Address No Such Need SENIOR PROGRAMS Senior Centers L Senior Services H $150,000 Senior Transportation: M $172,000 Other Senior Programs M ECONOMIC DEVELOPMENT Rehab; Publicly- or Privately - M $200,000$ Owned Commercial/Industrial CI Infrastructure Development H '~' Other Commercial/Industrial M $3,000,000 Improvements Micro-Enterprise Assistance L Town Center - A New Beginning: H ~ Implementation ED Technical Assistance (added an additional $50,000 to provide technical assistance to Tustin small M $100,000 businesses through the OC Small Business Development Center) Other Economic Development: Target defined business areas, assist H $200,000 with a "Shop Locally" campaign CODE ENFORCEMENT H $337,000 PLANNING Planning H $380,000 Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-31 Priority Need Estimated Estimated PRIORITY COMMUNITY Level Priority Dollars to DEVELOPMENT NEEDS High, Medium, how, Units Address No Such Need Town Center - A New Beginning: H Zoning Studies TOTAL ESTIMATED DOLLARS $236,341,400 NEEDED: n nown. 2 Conveyance of one child-care centers at Tustin Legacy expected. 3 Financing sources for all infrastructures are included in the Seven-Year Capital Improvement Projects (CIP). 4 To be improved by Irvine Ranch Water District (IRWD) or Orange County Sanitation District (OCSD). 5 Potential hazardous materials abatement associated with underground piping in the Community Park Site- Tustin Legacy. 6 Ramps and sidewalk ADA improvements within the CDBG target area. 7 See Infrastructure Improvement needs. 8 Energy efficient improvements is a component of the Commercial-Industrial Rehabilitation program. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-32 Community Development Objectives The community development component of the Consolidated Plan must state the jurisdiction's specific long-term and short-term community development objectives which assist in developing viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for low-income and moderate-income persons. Short Term Community Development Objectives: 1) Minimize any adverse economic impacts resulting from the closure of Marine Corps Air Station, Tustin and its conversion from military to civilian use. 2) Support the development of facilities and/or services to serve the children, youth, adults, and seniors of the community, especially in those target areas of greatest need. 3) Promote the improvement of existing infrastructure and the creation of new infrastructure where such infrastructure is nonexistent or completely inadequate, as on the Base property. 4) Direct a comprehensive range of resources, such as concentrated code enforcement, housing assistance, and infrastructure enhancements toward improving the living environment of the City's Southwest Neighborhood. 5) Provide an adequate supply of housing to meet the City's need for a variety of housing types to meet the diverse socio-economic needs of all community residents. Lonp Term Community Development Objectives: 1) Provide for economic development activities that create jobs, which include job training and career transition assistance related to the closure of Marine Corps Air Station (MCAS), Tustin. 2) Conserve energy resources through use of available energy technology and conservation practices. 3) Promote, assist, and facilitate the development of emergency and transient shelters through continued support of the County Homeless Assistance Program. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-33 4) 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 of neighborhood. 5) Conserve, maintain, rehabilitate and/or replace existing housing in neighborhoods which are safe, healthful and attractive. 6) Improve the residential character of the City with an emphasis on revitalizing neighborhoods showing signs of deterioration. 7) Promote conservation of the City's sound housing stock, rehabilitation of deteriorated units where they may exist, and elimination of dilapidated units which endanger the health, safety and well-being of occupants. 8) Ensure equal housing opportunities for all existing and future City residents regardless of race, religion, ethnicity, sex, age, marital status or household composition. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-34 To meet these objectives, the City of Tustin received applications for the following activities. Program support for its 2010-2011 Program Year has been indicated in Table III-E below: Table III-E Program Year 2010-2011 Community Development Block Grant Program Projects City of Tustin Activities Recommended . Funding Public Services, 1. Boys and Girls Club of Tustin $15,000 2. Community Services Programs (ATSC) $10,000 3. Community SeniorServ $20,000 4. Graffiti Removal (limited to CDBG target areas) $23,528 5. Human Options $5,000 6. Laurel House $5,000 7. Olive Crest $5,000 8. Tustin Parks & Recreation Dept. (Youth Ctr. Staff) $5,000 9. Tustin Parks ~ Recreation Dept. (Kids Comer preschool) $18,900 Total Public Services Activities (max $131, 328) $131, 328 Public Facilities and Improvements," '' ,.. 10. Re-lamp Parks: Pine Tree, Pepper Tree, Frontier $120,000 11. Mitchell Avenue Storm Drain First Phase Const. $275,000 12. McFadden Parkette Improvements $58,089 Total Public Facilities and Improvements $453,089 Rehabilitation and. Preservation; 13. Code Enforcement $116,000 Total Rehabilitation and Preservation $116,000 Planning and Program Administration 14. Fair Housing Counseling $17,412 15. Program Administration $157,692 Total Planning and Administration (max $175,104) $175,104 Grand Total 5875,521' Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-35 PART F. BARRIERS TO AFFORDABLE HOUSING In order to meet the affordable housing assistance goals and objectives of the Consolidated Plan, the City of Tustin has adopted indirect assistance programs that can be provided to address negative affects that are created by the various barriers to affordable housing which are discussed in Section II. The following summarizes the types of programs the City of Tustin has incorporated into its Housing Element. Secondary Residential Units Provide opportunities for affordable granny flats and secondary residential units on lots within the City's Single-Family Residential Districts through existing Zoning Ordinance provisions. Deed Restrictions Require appropriate deed restrictions to ensure continued affordability for low-and moderate-income housing constructed or rehabilitated with the assistance of any public or Redevelopment Agency funds as may be legally required by the use of such funds. Fees, Exactions. and Permit Procedures Consider waiving or modifying various fees or exactions normally required where such waiver will reduce the affordability gap associated with providing housing of the elderly and for low-income households. Environmental Constraints Continue to alleviate the necessity of delays in processing, and mitigating requirements incorporated into the development plans by requiring program environmental impact reports (EIR) on all major development projects. A program EIR was developed for the East Tustin Specific Plan. Pre-application Conferences Utilize procedures for pre-application conferences and processing procedures to expedite permit processing. Shared-Housin_g Continue to refer the elderly to home sharing programs run by the Orange County Housing Authority, City of Irvine Senior Center, and City of Orange Senior Center. Tustin 2010-2015 Consolidated Plan Section fll -Strategic Plan III-36 Permit Processing and Coordination Ensure that processing of permits for low- and moderate-income housing are fast-tracked with low-and moderate-income housing permits being given priority over other permit applications. Continue the services of the City's Community Development Department as a central clearinghouse with individuals assigned the responsibility of expediting development permits required from various departments and agencies. Rental Assistance Encourage the availability of Section 8 rental assistance certificates and voucher certificate programs 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. Recvclin_g Single-Family Uses in R-3 Zones into Multiple-Family Units Continue to encourage developers to consolidate individual lots into larger cohesive development. Density bonuses may be considered as an incentive to consolidate lots. Housing Referral Program Continue to provide housing referral services to families in need of housing assistance and information. The Police Department refers homeless people to different agencies which provide shelters and food for various segments of the population. The Parks and Recreation Department provides housing information and social service information to the senior citizen population. The Community Development Department provides housing and social service information to all segments of the population during regular City Hall business hours. This 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. Zoning Studies Continue to initiate studies to consider new programs to encourage and promote affordable housing. These studies include: 1) Potential for creating mixed-use zones; 2) incorporate mandatory inclusion of affordable housing policies in the zoning provisions for housing units developed by the Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-37 Redevelopment Agency or by other public/private entities; and 3) consider relaxation of certain development standards and incentives that could be provided for projects which include affordable housing. Density Bonus Program The City of Tustin adopted the Density Bonus ordinance in November 1999, and updated it in November 2006. Applicants under State law may file for a density bonus plus additional incentives when projects incorporate a certain percentage of affordable housing for seniors, very low-, low-, and moderate- income levels. The bonus level and number of incentives available to an applicant varies according to the amount by which the percentage of affordable housing units exceeds the percentage established in the density bonus code section. With the enactment of SB 1818, which revised the State's density bonus law further, the City modified its Density Bonus Ordinance to reflect the new State Law. Mixed-Use Zoning and Design Flexibility The City has adopted Planned Community Districts and Specific Plans which authorize and encourage mixed-use developments and provide for flexibility and innovative approaches in design. The use of the Planned Community zoning has resulted in use of zero-lot line configuration and clustered developments which help to reduce development costs and make housing more affordable. Secondary Residential Units The City of Tustin has implemented the requirements of AB 1866 (Section 65852) provides that after July 1, 2003, the permit process for second units is ministerial, which means without a public hearing or discretionary approval. Local governments will be required to implement a process for second units (similar to the process for obtaining a permit for a room addition) in which the applicant is entitled to the permit if he or she complies with local standards -- eliminating the need for time-consuming, costly public hearings. Condominium Conversion The City has a condominium conversion ordinance requiring developers converting apartments to condominiums to process a use permit, provide relocation assistance, and/or to provide incentives and assistance for purchase of the units by lower-income households. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-38 Fair Housing The City will continue to contract with a private non-profit fair housing service provider to administer a wide variety of fair housing services to residents of Orange County and provide services to the City of Tustin to assure equal housing opportunities within the City. These services include: ~ Serving as a fair housing resource for the region, including implementation of an affirmative fair housing marketing plan, testing, and complaint verification ~ Responding to citizen complaints regarding violation of fair housing laws ~ Providing tenant-landlord counseling to all inquiring citizens ~ Promoting community awareness of tenant landlord rights and responsibilities ~ Reporting regularly on complaint processing ~ Providing fair housing education to residents, City staff, and community organizations, agencies and service providers. The 2010 Analysis of Impediments (AI) to Fair Housing Choice Report presented the following potential impediments: 1. Hispanic households had significantly lower median incomes than White and Asian households in each jurisdiction, as well as the County. 2. Areas of racial/ethnic concentrations in Tustin indicate that residential patterns are evident in some areas; however, they do not indicate the reasons behind the patterns. Given that many of the areas do not overlap the low- and moderate-income areas, the trends are likely related to other factors. The City may need to target these areas with fair housing services, education/outreach, and/or additional testing to ensure that these patterns are related to individual preferences and not a discriminatory force within the market. Tustin appears to have a high proportion of concentrated tracts including some areas with high concentrations. 3. Residents who speak Spanish at home represent the majority of linguistically isolated households in each jurisdiction, except Mission Viejo; where Asian/Pacific Island languages were more impacted. These language barriers may prevent residents from accessing services, information, housing, and may also affect Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-39 educational attainment and employment. 4. Analyzing tenure by race indicates that minorities are significantly underrepresented in the ownership market in each of the cities. 5. Housing for persons living with AIDS is scarce and many of these people may encounter discrimination. 6. Given the demographics Tustin, Asians appear underrepresented as there were no complaints received by the fair housing service providers from this group; though it is difficult to determine the significance of this trend, because of the large number of complainants that declined to state their race/ethnicity. 7. Disability (physical and mental), Race, and Familial Status constituted the majority of complaints received by the fair housing services providers within the City. These categories also represented the majority of protected classes of cases filed with HUD, FHEO, and DFEH. Moreover, there was a consistent pattern of the top three allegations including denial of a reasonable accommodation and unequal terms. These topics may need to be emphasized in outreach efforts and/or targeted to landlords through literature. Bias against physical and mental disability, familial status, sex, race, and retaliation should also receive focus in education and outreach materials. 8. Bias against race and/or ethnicity appears to be the biggest motivator of hate crimes within the City, as well as the County. 9. While the City has tried to provide for the accommodation of affordable housing, residents have sought to block affordable housing developments due to NIMBY sentiments, several of which involved HOA's. 10. While most of the impediments listed in previous AI's do not appear to exist in each of the cities, fair lending and education and outreach pertaining to fair housing laws and services, especially to immigrant populations, still appear to be a need. There also seems to remain a concern pertaining to disparate impact of credit scoring and some disparity in loan approval rates since use of credit scores are still widely used; as lenders and insurance agencies still heavily rely on credit scores. 11. Lack of advertising by lenders in particular neighborhoods is one area which may be of concern due to the lack of home purchase Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-40 loan applications received by African Americans and Hispanics. 12. The current housing market has resulted in many new concerns that were not present in the last AI, which may provide opportunities for additional incidents of discrimination including: foreclosures, loan modifications, short sales, and real estate owned properties that have flooded the market. Housin_g Authority The City contracts with the Orange County Housing Authority (OCHA) for the development and operation of federally assisted low and moderate-income housing program. Article 34 Election A referendum election was conducted in June, 1980, which authorized public housing for senior and lower income households in Tustin, subject to certain conditions. Tax Increment Financin_g: The South/Central and Town Center Redevelopment Projects provide for a 20 percent set-aside of tax increments to assist in providing housing accommodations for low-moderate income families. Housing projects for low-moderate income units proposed in these areas may apply for financial assistance through the agency for these set-aside funds. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-41 PART G. LEAD-BASED PAINT HAZARD REDUCTION This section outlines the City's actions proposed to be undertaken to evaluate and reduce lead-based paint hazards, and describes how lead-based paint hazard reduction will be integrated into housing policies and programs. As a result of the preliminary analysis prepared in Section I and Section II, and without conducting a formal survey, there does not appear to be a great number of housing units at risk of Lead-Based Paint (LBP) hazard. However, in order to comply with Title X of the Housing and Community Development Act of 1992, the City will implement into its housing policies over the next five years the following: ~ Include lead-based paint hazard reduction as an eligible activity in rehabilitation programs. ~ Review existing regulations, housing and rehabilitation codes to assure lead- based paint hazard reduction is incorporated. ~ Require testing and hazard reduction in conjunction with rehabilitation. ~ Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-42 PART H. ANTI-POVERTY STRATEGY The City of Tustin does not have a formally adopted Anti-Poverty Strategy. However, the City's Housing Element includes several goals, policies and programs designed to provide adequate, safe and affordable housing for all segments of the population. Five of the six goals within the Housing Element deal with ensuring that housing is affordable to all segments of the City's population. The City has adopted corresponding policies and programs to implement the strategies. The following discussions are excerpts from the City's Housing Element. Tustin is and will continue to be 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 community and ensure that housing discrimination does not serve as a barrier to housing in Tustin. 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 low income housing in the region requires the City attempt to preserve low-income housing units that are at risk of converting to other uses. Goal 1: Provide an adequate supply of housing to meet the need for a variety of housing types to meet 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 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 generally 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 grown principles by supporting the construction of higher density housing, affordable housing, and mixed use development (the Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-43 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, facilitating resident access to funding sources for preservation low income housing and of 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. 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- familydistricts 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. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-44 Policy 1.15: Encourage incentives to assist in the 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 Califomia 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 Center, Town Center, and MCAS Tustin Redevelopment Areas to assist in constructing, rehabilitating, and preserving low and moderate income housing within the jurisdiction of the City. Policy 1.17: Encourage the design and occupancy of housing for senior citizens and the disabled. Promote the construction or rehabilitation and adoption of dwelling units accessible to seniors and/or the disabled. Policy 1.18: Provide continued support for the County Homeless Assistance Program and other homeless assistance programs within Tustin and in adjacent cities, including the continued use of the City's membership in California Statewide Communities Development Authority to issue private activity mortgage bonds in support of these programs. Policy 1.19: Encourage the provision of grants and technical assistance to various organizations and agencies that provide assistance to persons with special needs such as the homeless, disabled, low-income, and elderly persons. Policy 1.20: Participate in federal and state housing assistance and rehabilitation programs aimed at assisting households in need. Policy 1.21: Utilize design criteria in evaluating projects to ensure compatibility with surrounding developments, while taking into consideration ways to 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. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-45 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. 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 homeownership 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 subsidies available for low-income households. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-46 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. 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 4.4: 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. 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 which 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. Policy 5.4: Continue to enforce health, safety, and zoning codes to eliminate conditions which are detrimental to the health, safety and general welfare of residents. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-47 Policy 5.5: Promote preservation of historic and architecturally significant residential properties. Policv 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, to achieve maximum neighborhood revitalization, particularly around identified Opportunity Sites as part of the Town Center- A New Beginning Implementation Study. From the above Housing Goals and Policies, the City has developed a number of programs to implement the strategies including: ~ Maintenance of the City's Mobile Home Park Zone ~ Provide incentives for condominium conversion including incentives and assistance for purchase of the units by low- and moderate-income households. ~ The Tustin CRA shall comply with replacement housing requirements when demolished according the California Redevelopment Law. ~ Protect tenant rights by encouraging the continuation of contracts with organizations that provide fair housing services. ~ Require the appropriate deed restrictions to ensure affordability of units. ~ Continue to enforce building and housing codes and notify property owners of deficiencies. ~ Continue to utilize pre-application processing. ~ Allocate CDBG and Redevelopment Agency funds in target areas for rehabilitation. ~ Contract with Orange County Housing Authority (OCHA) for federally assisted housing including Section 8 programs. ~ Utilize Housing Set-Aside Funds to provide housing accommodations for low- and moderate-income households. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-48 ~ Encourage the construction of housing units that provide the opportunity to expand habitable area for families. ~ Continue to provide housing referral services. ~ Preserve existing assisted housing stock. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan I I I-49 PART 1. INSTITUTIONAL STRUCTURE AND INTERGOVERNMENTAL COOPERATION 1. Description This section identifies the institutional structure through which the City of Tustin carries out its housing and community development plan. Each organization comprising the institutional structure is identified by type and purpose. A description of each organization's respective role and responsibilities in carrying out the strategy, including implementation of specific programs and the relationships among organizations is discussed. a. Public Institutions City of Tustin Community Redevelopment AQency The Agency is comprised of the City Council members, retaining the City Manager as the Executive Director and the Assistant City Manager as the Assistant Executive Director. The Tustin Community Redevelopment Agency was created in 1976 and is made up of members of the Tustin City council who are elected at large by popular vote. Provisions of State law enable 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. The Agency is responsible for setting the course of redevelopment in Tustin and for being sure that redevelopment plans are in the best interests of the Community. In directing the City Redevelopment activities, State law provides the Agency with broad governmental functions and authority to accomplish its purpose, including but not limited to: the right to issue bonds for authorized purposes and to expend their proceeds, and the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency may also demolish buildings, clear land, and cause construction of improvements including streets and sidewalks. The Tustin Community Redevelopment Agency receives no Federal or State funds, nor does it levy a tax on a redevelopment project area. Instead, its primary revenue is "tax increment." When a redevelopment project area is created, the assessed valuations in the area from which governmental taxing agencies receive property tax revenue are frozen. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-50 As a redevelopment plan is implemented, new development and inflation results in increases in property values within the redevelopment project area. The Agency receives one percent of the annual incremental increases in the assessed value of the improvements above the frozen valuation when the project area was formed. These revenues are called "tax increment" and it is these funds which must be used for redevelopment improvements within the project area (and for projects adopted after 1994) certain payments to taxing agencies. These revenues cannot. generally be used for general funded governmental purposes. The goals for the Agency are: ~ Rejuvenate dilapidated areas ~ Stimulate private investment ~ Strengthen the City's financial base including sales tax and property taxes ~ Improve public facilities ~ Create jobs Consistent with these goals, the Agency is actively involved in many projects and programs. A few of these include: ~ Housing Programs ~ Commercial Rehabilitation Programs ~ Business Outreach Retention and Attraction Programs ~ Capital Improvement Projects In Tustin there are currently three redevelopment project areas. A description of each area follows: Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-51 Town Center Project Area The Town Center Project Area, established in 1976, encompasses approximately 360 acres in the center of the City of Tustin which includes historic Old Town and the Civic Center complex and all the commercial properties within the central city. The project area has already seen a number of major development projects including new retail, office, residential and public improvement efforts. South Central Project Area The South Central Project Area encompasses approximately 370 acres and is generally that are bounded by Edinger Avenue, Red Hill Avenue, Valencia Street and the Costa Mesa (SR-55) and Santa Ana (I-5) Freeways and Newport Avenue. Portions of the area lack right-of-way improvements such as street lights, sidewalks, adequate street capacity and circulation. The City adopted the Pacific Center Specific Plan (located in this area) which will provide for an extension of Newport Avenue and much needed improvements to the SR-55 Freeway off- ramp at Edinger Avenue. The project will include office, hotel and limited commercial uses. MCAS-Tustin Project Area The MCAS-Tustin Project Area is approximately 1600 acres in size. The project area encompasses the former Marine Corps Air Station and an area 52 acres in size immediately adjacent to the base, at the northwest corner of Edinger Avenue and Jamboree Road. Tustin Town Center - A New Beginning Tustin Town Center - A New Beginning is a concept plan for redeveloping and revitalizing areas of the City that are older, denser, and generally have aloes-income population. The areas covered by the concept plan are located west of SR-55, and south and north of the I-5 freeways. The plan is in its early stages and community workshops were held to get public input about revitalization needs, land use, and needed community amenities. City of Tustin (Support Staffl There are four City Departments that coordinate with each other to deliver housing and supportive housing services. They are the Community Development Department, which administers the planning Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-52 and development related programs and coordinates with other Departments as needed; the Public Works/Engineering Department which implements supportive public works projects; the Parks and Recreation Department which coordinates services to seniors as well as City-wide community, social and recreational services; and the Finance Department which is responsible for the accounting and auditing. The Community Development Department is comprised of the Current Planning Division, Advance Planning Division, and Building Division. All of these divisions work with each other in delivering development related services to the community. The Current Planning and Building Divisions are primarily engaged with the development processing, plan check review and permit issuance of new construction and rehabilitation projects. The Advance Planning Division which includes Code Enforcement performs the long range and short range planning for housing activities coordinating and administering use of the City's CDBG program funds. With the City's establishment of its own Housing Rehabilitation Program utilizing the Tustin CRA Housing Set-Aside Funds, the Redevelopment Agency is responsible for coordinating with Current and Advance Planning Division on affordable housing projects. U. S. Department of Housin_g and Urban Development (HUD) HUD is the primary Federal housing and development agency acting as the City's liaison for information sources, funding sources and providing technical assistance to City staff in carrying out affordable housing activities. California Department of Housin_g and Community Development HCD) HCD is the primary State housing and development agency acting as an information and funding resource for all State administered programs available to carry out affordable housing activities. Orange County Housin_g Authority (OCHA) The City contracts with the Authority for administration of the Section 8 certificate and voucher programs. The City makes referrals to OCHA for those residents requiring rental assistance. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-53 b. Nonprofit Organizations in preparing the City's CDBG program application, the City has advertised the availability of funds and has sought community input. The names and addresses of those groups which have been contacted through this process are provided in Appendix E. 2. Overcoming Gaps a. Assessment This section assesses the capacity of the institutional structure described above through which the City of Tustin will carry out its affordable and supportive housing strategy. In its current configuration, the City's institutional structure is well balance in offering opportunities to various agencies and organizations. The City actively encourages a system for sharing resources and information through networking with other organizations such as federal, state, county and local non-profit agencies. b. Actions The section describes the actions to be taken over the coming five years, to eliminate the gaps that have been identified in the City's service delivery system and to strengthen, coordinate, and integrate this institutional structure and its component parts. The City of Tustin overcomes its largest gap in delivery of programs with its recognition as an entitlement City. This enables the City to implement programs that previously went un-funded orunder-funded. The program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-54 benefit low- and moderate-income persons. A grantee may also carry out activities which aid in the prevention or elimination of slums or blight. Additionally, grantees may fund activities when the grantee certifies that the activities meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet these broad national objectives. CDBG funds may be used for activities which include, but are not limited to: ~ Acquisition of real property; ~ Relocation and demolition; ~ Rehabilitation of residential and non-residential structures; ~ Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes; ~ Public services, within certain limits; ~ Activities relating to energy conservation and renewable energy resources; and ~ Provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities. HUD determines the amount of each entitlement grant by a statutory dual formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-55 PART J. COORDINATION Coordination between the City of Tustin, public and assisted housing providers, private and governmental health, mental health, and service agencies is enhanced through activities such as developing productive working relationships with these agencies, soliciting input through the public participation process, and seeking professional advice and input from these agencies. The City of Tustin coordinates with the appropriate County and State offices by referral as required, specifically for housing in any types of residential care facilities where six or fewer persons are residing, as stipulated in State laws. Additionally, the City of Tustin maintains a listing of the entire County and State inventory of licensed facilities providing supportive housing and acquires updates as necessary from the State's Community Care Licensing - Residential Division Office located in Santa Ana. Referrals are also made to the Orange County Public Housing Authority for persons of lower incomes with special needs who are requesting affordable housing. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-56 PART K. PUBLIC HOUSING RESIDENT INITIATIVES The Consolidated Plan must describe the jurisdiction's activities to encourage public housing residents to become more involved in management and participate in homeownership. The City of Tustin does not have any public housing projects as defined by HUD. Tustin 2010-2015 Consolidated Plan Section III -Strategic Plan III-57 Section IV - 2010-2011 Action Plan EXECUTIVE SUMMARY Background The City of Tustin's Consolidated Plan for FY 2010-15, is a five-year planning document that identifies the City's overall housing and community development needs and outlines a strategy to address those needs for Low- and Moderate-income households. The Annual Action Plan section of the Consolidated Plan details the City's specific use of Community Development Block Grant (CDBG) funds for one grant year as provided by the U.S. Department of Housing and Urban Development (HUD). Organization of the FY 2010-11 Action Plan The City of Tustin Action Plan for Fiscal Year 2010-11 contains all elements required by HUD, which include: ~ Standard Form 424 -This form serves as the official application for federal funding. ~ Sources of Funds - A description of potential private and public funding sources that may be available to the City to support activities listed in the Consolidated Plan. ~ Statement of Specific Annual Objectives - A summary of activities the City will implement to address the priority needs identified in the Consolidated Plan. ~ Description of Activities to be Undertaken - A description of community needs delineated in the Consolidated Plan; a list of projects and programs to be funded with 2010-11 CDBG funds allocated to the City of Tustin, and a list of objectives, outcome measures, and indicators (see Table 4) that describe outputs as established in the Federal Register Notice, dated March 7, 2006. ~ Geographic Distribution -Maps indicating eligible areas for CDBG funded projects and a map showing the location of projects to be funded with Fiscal Year 2010-11 CDBG monies. ~ Homeless and Other Special Needs - A description of Fiscal Year 2010-11 activities targeting the needs of the homeless and non-homeless with special needs. ~ Other Actions - A description of actions the City of Tustin will undertake to address various sub-strategies delineated in the Consolidated Plan. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-1 ~ Specific Program Requirements - A description of CDBG funds expected to be available during the 2010-11 program year. ~ Certifications and Miscellaneous - HUD required certifications and assurances. One-Year and Multi-Year Use of Funds The City of Tustin is implementing aone-year funding cycle for non-public service programs such as public facility improvements, housing/neighborhood rehabilitation and preservation, and program administration/planning activities. Funding requests for these types of projects will be reviewed annually. Public Service programs will be allocated on a three-year funding cycle. Funding for FY 2010-11 public service activities were based on FY 2009-2010 funding levels (Year 2 of the three-year cycle), adjusted to account for variations in CDBG grant allocations from HUD. This Action Plan covers activities to be funded during FY 2010-2011 (Year 3 of the public service projects three-year funding cycle). The City of Tustin has allocated CDBG funds to a variety of eligible projects to meet community housing and non-housing needs. For Fiscal Year 2010-11 the City of Tustin will receive $875,521.00 of CDBG funds through the U.S. Department of Housing and Urban Development. The following is a listing of all activities that will be funded for FY 2010-11: Public Services Activities (maximum $131,328) Boys and Girls Club $ 15,000 Community Service Programs (ATSC) $ 10,000 Community SeniorServ $ 20,000 Graffiti Removal (limited to CDBG target areas) $ 23,528 Human Options $ 5,000 Laurel House $ 5,000 Olive Crest $ 5,000 Tustin Parks and Recreation Department (Youth Center Staff) $ 28,900 Tustin Parks and Recreation Department (Kids Corner) 18 900 Public Services Subtotal $131,328 Public Facilities and Improvements Re-lamp Parks: Pine Tree, Pepper Tree, Frontier $120,000 Mitchell Avenue Storm Drain First Phase Construction $275,000 McFadden Parkette 58 089 Public Facilities and Improvements Subtotal $453,089 Rehabilitation and Preservation Activities Code Enforcement 116 000 Rehabilitation and Preservation Subtotal $ 116,000 Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-2 Program Administration $ Planning Activities (maximum $175,104) Fair Housing Counseling Agency CDBG Program Administration Administration 8~ Planning Subtotal Grand Total for all Activities $ 17,412 $ 157,692 $ 175,104 Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-3 OMB Number: 4040-0004 Expiration Date: OI/3 V2009 Application for Federal Assistance SF-424 Version 02 *1. Type of Submission: '2. Type of Application ' If Revision, select appropriate letter(s) ^ Preapplication ® New ® Application ^ Continuation 'Other (Specify) ^ Changed/Corrected Application ^ Revision 3. Date Received: 4. Applicant Identifier: 5/17/2010 B-10-MC-06-0583 5a. Federal Entity Identifier: "5b. Federal Award Identifier: B-10-MC-06-0583 B-10-MC-06-0583 State Use Onl 6. Date Received b State: 7. State A lication Identifier: 8. APPLICANT INFORMATION: *a. Legal Name: City of Tustin 'b. Employer/Taxpayer Identification Number (EIN/TIN): "c. Organizational DUNS: 95-6000804 076072487 d. Address: Street 1: 300 Centennial Way Street 2: "City: Tustin County: Orange *State: CA Province: `Country: USA "Zip /Postal Code 92780 e. Organizational Unit: Department Name: Division Name: Community Development Department Planning Division f. Name and contact information of person to be contacted on matters involving this application: Prefix: Ms. First Name: Edmelynne Middle Name: `Last Name: Hutter Suffix: Title: Associate Planner Organizational Affiliation: City of Tustin "Telephone Number: 714-573-3174 Fax Number: 714-573-3113 "Email: ehutter tustinca.or City of Tustin 3 Draft 2009-2010 Action Plan 3/4/09 OMB Number: 4040-0004 Expiration Date: 0 U31 /2009 Application for Federal Assistance SF-424 Version 02 *9. Type of Applicant 1: Select Applicant Type: C. City or Township Government Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: *Other (Specify) *10 Name of Federal Agency: U. S. Department of Housing and Urban Development 11. Catalog of Federal Domestic Assistance Number: 14-218 CFDA Title: Communit~Development Block Grant (CDBG) *12 Funding Opportunity Number: *Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): City of Tustin, CA *15. Descriptive Title of Applicant's Project: Community Development Block Grant program for Program Year 2010-11. Funds will be used to provide a variety of public services, public facility improvements and facilities, code enforcement, commercial rehabilitation and program administration (including fair housing). City of Tustin 4 Draft 2009-2010 Action Plan 3/4/09 OMB Number: 4040-0004 Expiration Date: 01/31/2009 Application for Federal Assistance SF-424 Version 02 16. Congressional Districts Of: *a. Applicant: CA-48 *b. Program/Project: CA-48 17. Proposed Project: *a. Start Date: 7/1/10 *b. End Date: 6/30/11 18. Estimated Funding ($): *a. Federal 875,521 *b. Applicant *c. State *d. Local *e. Other *f. Program Income *g. TOTAL 875,521 *19. Is Application Subject to Review By State Under Executive Order 12372 Process? ^ a. This application was made available to the State under the Executive Order 12372 Process for review on ^ b. Program is subject to E.O. 12372 but has not been selected by the State for review. ® c. Program is not covered by E. O. 12372 *20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes", provide explanation.) ^ Yes ® No 21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U. S. Code, Title 218, Section 1001) ® **IAGREE ** The list of certifications and assurances, or an Internet site where you may obtain this list, is contained in the announcement or agency specific instructions Authorized Representative: Prefix: Ms *First Name: Elizabeth Middle Name: A. *Last Name: Binsack Suffix: *Title: Community Development Director *Telephone Number: 714-573-3031 Fax Number: 714-573-3113 * Email: ebinsack@tustinca.org *Signature of Authorized Representative: *Date Signed: Authorized for Local Reproduction Standard Form 424 (Revised 10/2005) Prescribed by OMB Circular A-102 City of Tustin 3/4/09 Draft 2009-2010 Action Plan ACTION PLAN: ONE-YEAR USE OF FUNDS The Action Plan delineates the City of Tustin's funding priorities and allocations for the use of Program Year 2010-11 Community Development Block Grant (CDBG) funds. The following section of the Action Plan outlines the City's course of action to address housing and community development needs in compliance with HUD regulations. A. Housing and Community Development Resources There are several potential sources of funding which might enable the City of Tustin to address housing and community development priority needs and specific objectives identified in the Strategic Plan component of the Consolidated Plan. However, however, as a result of the world-wide financial crisis the actual financial resources currently available to the City are somewhat limited. Nonetheless, throughout the fiscal year, the City will pursue additional funding opportunities. The City's aim is to leverage, to the maximum extent feasible, the use of available Federal, State, and local funds in an effort to create a viable community, develop new affordable housing opportunities, and the maintain and preserve existing housing. To ensure the financial feasibility of a project, the City will consider the use of funds from other sources, such as Redevelopment Housing Set-Aside Funds, to further affordable housing and community development goals whenever a match, grant, or loan is necessary or appropriate. The following resources are anticipated to be available for the 2010-11 fiscal year: Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-5 IV-A Available Public and Private Resources Fiscal Year 2010-11 Housing and Community Development Activities (TABLE 1) Program program Name Description Eligible Activities Type 1. Federal Programs a. Formula/ Community Grant awarded to the City on Acquisition Entitlement Development a formula basis for housing & Block Grant community development Rehabilitation (CDBG) 2010-11 activities. Economic Funding - Development $875,521 ^ Homeless Assistance ^ Public Services ^ Public Improvements/ Facilities ^ Code Enforcement ^ Admin/Planning b. McKinney Act Grants to develop supportive Transitional housing Competitive Supportive housing & services that will Programs Housing Program enable homeless people to Permanent Housing (SHP) live as independently as for homeless with possible disabilities ^ Supportive Services, e.g., childcare, employment assistance, counseling services for the homeless 2. Local Programs Tustin 20% of Agency funds are set Acquisition Redevelopment aside for affordable housing Agency Housing activities governed by State Rehabilitation Set-Aside law New Construction Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-6 Program program Name Description Eligible Activities Type a. Homebuyer Financial Assistance for the Program purchase of existing housing Homebuyer stock b. Multi-Family Assistance to owners of Residential Rehab multi-family projects occupied by low- & Rehabilitation Loan/Grant moderate-income persons Program Funding c. Single-Family Assistance to low- & Residential Rehab moderate-income owners occupying single-family Rehabilitation Loan/Grant dwellings Program Funding d. New Housing Financial Assistance for new New Construction ^ Construction affordable housing project e. Business Assistance to promote the Business start-up Development development of new assistance Assistance businesses ^ Technical assistance ^ Site locating & space planning f. Business Financial assistance 8~ Property acquisition Financing j incentives to promote Assistance business growth On-site & off-site improvements I ~ Industrial development bonds ^ Tax increment financing ^ Micro loans g. Employment Assistance focused on the Tax credits for job Assistance hiring and retention of creation employees ^ Technical assistance Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-7 Iv-B Potential Public and Private Resources Fiscal Year 2010-11 Housing and Community Development Activities (TABLE 2) Program Type Program Name Description Eligible Activities 1. Federal Programs a. Formula/ HOME Flexible grant program Acquisition Entitlement awarded to the City on a Rehabilitation formula basis for housing activities. (Tustin is not a Home Buyer participating jurisdiction) Assistance ^ Rental Assistance b. Competitive Emergency Shelter Grants to improve existing Homeless Assistance Programs Grants (ESG) shelter beds or increase (Acquisition, New number of new shelters for Construction, the homeless. Funds are Rehabilitation, awarded to local nonprofits Conversion, Support through the State/county ~ Services) Supportive Housing Assistance for transitional Acquisition Program (SHP) housing for homeless ~ individuals & families and ' Rehabilitation permanent housing for New Construction handicapped homeless ' ^ Operating Costs ^ Supportive Services Shelter Plus Care Supportive housing & Program (S+C) services for persons with disabilities -Grants for rental assistance offered with Rental Assistance support services to homeless with disabilities & disabled households Section 8 Rental Rental assistance payments Assistance Program to owners of private market rate units on behalf of very Rental Assistance ^ low- income tenants. Administered by Orange County Housing Authority Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-8 Program Type Program Name Description Eligible Activities Section 202 Supportive Housing for the Acquisition Elderly -Grants to nonprofit developers of supportive Rehabilitation housing for the elderly New Construction ^ Rental Assistance ^ Support Services Section 811 Grants to non-profit Acquisition developers of supportive housing for persons with Rehabilitation disabilities, including group New Construction homes, independent living facilities & intermediate care Rental Assistance facilities Federal Home Loan Grants or subsidized interest Purchase Bank of San to banks to finance affordable Francisco: Affordable housing initiatives Construction Housing Program Rehabilitation 2. State Programs California Tax Credit Allocation of Federal & Allocation Committee State Low-income Housing Tax Credit New Construction ^ Low-income Housing Tax Tax credits for the Acquisition and Credit Program development and Rehabilitation ownership of low-income rental housing i California Debt Limit Allocation of private activity Allocation Committee bond (tax-exempt mortgage Tax exempt ^ Qualified revenue bond) to single- mortgage revenue family housing, multi-family bonds Residential Rental rental housing, student loans Project Program & economic development ~^ Tax exempt private ^ Single Family activity bonds Housing Program Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-9 Program Type Program Name Description Eligible Activities California Department Assist in the development of Second mortgage of Housing and innovative programs that loans in new Community create affordable housing projects Development (HCD) Provide downpayment Predevelopment ^ Affordable assistance loans to qualifying Housing first-time low- 8~ moderate- Site development Innovation Fund income buyers of homes in Site acquisition BEGIN projects • Building Equity Rehabilitation and Growth in Grants to local public Neighborhoods agencies & nonprofit Repair & Program (BEGIN) developers to assist individual replacement of households through deferred- manufactured ^ CalHome Program payment loans. Direct, homes ^ California Self- forgivable loans to assist Downpayment Help Housing development projects assistance Program (CSHHP) involving multiple ownership units, including single-family Mortgage financing ^ Emergency subdivisions ~ Housing 8~ ^ Homebuyer Assistance Grants to sponsoring counseling Program organizations for technical Operating Facility assistance, loans for Self-help Grants (EHAP) development assistance & construction mortgage assistance Project ^ Emergency Housing & Provide facility operating development Assistance grants for emergency shelters transitional housing Facility operations Program Capital , Development projects & supportive Rent assistance services for homeless ^ Multi-family individuals 8~ families ~ ^ Leasing or renting Housing Program rooms for provision (MHP) Fund capital development of temporary shelter activities for emergency ^ Pre-development shelters, transitional housing Capital Loan Program & safe havens that provide development (PDLP) -Urban 8~ shelter and supportive activities Rural services for homeless ~ individuals ~ families Acquisition, ~ ~ construction, Low Interest loan for multi- ~ conversion of family housing rehabilitation emergency shelter/ or acquisition, or rehabilitation transitional housing & acquisition ^ Administration Loans for Pre-development costs or "seed" money to Acquisition non-profit corporations 8~ Land lease payment local governments ^ New Construction Tustin 2010-2015 Consolidated Plan Section IV -Action Plan I V-10 Program Type Program Name Description Eligible Activities California Housing Low interest-rate loans for New Construction Finance Agency housing construction for Project design and (CaIHFA): individuals & families with special needs. development a. Special Needs Financing Program Predevelopment funding for Project funding affordable rental projects with Acquisition b. Predevelopment permanent CaIHFA financing. Finance Program Rehabilitation Permanent loan financing for c. Permanent new multifamily projects & Existing government Financing Program existing affordable housing assisted projects d. Preservation multifamily projects. • First-time homebuyer Acquisition Finance Loans for acquisition of at- purchase Program risk affordable housing & e. Tax-Exempt Bridge preservation of affordability Home purchase Financing Program status Home purchase of f. Construction Loan Tax-exempt bridge loans newly constructed home Program projects with 4% tax credits to ensure award of tax credits . Site acquisition g. Homeownership Mortgage Loan Market-rate construction Site development Program 40-Yr loans for projects with Fixed Mortgage CaIHFA permanent financing h. Interest Only PLUS First mortgage financing for Mortgage Loan low & moderate income Program homebuyers i. 30-Yr Fixed Rate First mortgage financing with Government below market rate interest for Insured/ low & moderate income Guaranteed Loan homebuyers Program First mortgage financing with j. Affordable Housing below market rate interest for Partnership first-time homebuyers in high- Program cost areas k. CaIHFA Housing Home loans for first-time Assistance homebuyers who are Program disabled or live have family members with disabilities I. High Cost Area living with them Home Purchase Assistance Deferred-payment second Program mortgage loans for use towards downpayment or m. HomeChoice closing costs for designated Program revitalization areas. o. Homeownership in Loans to nonprofit groups Revitalization usin the mutual self-hel Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-11 Program Type Program Name Description Eligible Activities Areas Program home construction method with a minimum 8 units per r. Self-Help Builder development. Assistance Program Regional Planning, Incentive grants to infill Rehabilitate or Housing and Infill housing projects with priority construct parks Incentive Account for projects near mass transit. ^ New or upgrade infrastructure ^ Transportation improvements ^ Traffic mitigation i ^ Brownfield cleanup Transit-Oriented Low interest loans for rental New construction Development Housing housing development with Program affordable units and i ^ Substantial mortgage assistance for Rehabilitation homeownership Conversion to developments. residential use Joe Serna, Jr. Farm Homeowner, rental Agricultural worker worker Housing Grant construction and housing projects Program rehabilitation grants and loans for farm worker housing ^ Land acquisition projects. Public Utilities Financial incentives to ~ ^ Use of energy Commission/ Pacific implement energy efficient efficient products Gas & Electric, design into new home and building California Multifamily construction. materials New Homes Program (CMFNH) California Statewide Assist for-profit and non-profit Communities developers access tax- New construction Development exempt bonds to finance low Authority, Housing income and senior housing Acquisition Bond Program projects. 3. Orange County Programs Tenant-based rental Rental assistance to low and assistance programs moderate income households ^ Rental Assistance with housing choice vouchers. Mortgage Assistance Silent second loans. First-time Program Homebuyer Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-12 Program Type Program Name Description Eligible Activities Assistance Community Provides up to $10,000 to Exterior Development qualified applicants to repair improvements Homeowner the exterior of their mobile Programs: homes. Roof repair/replacement ^ Mobile Home Preserve housing stock for Exterior Grant very low income families by Health and safety replacing decomposing roofs. improvements ^ Roof Replacement Program Assistance to low-income Repair or home owners who are unable replacement ^ Single Family to secure loans from Residence Loans commercial lenders to ^ Low Interest Loans eliminate health & safety for Home code violations and HUD's Rehabilitation standards. Low interest loans to medium & low income homeowners for home improvements 8~ rehabilitation. Multifamily Affordable Permanent & acquisition Acquisition Rental Housing loans to fund housing Program Mental projects for the mentally-ill Purchase of Health Service Act population. transitional housing 4. Private Resources/Financing Programs Federal National CHBP offers 5% down Homebuyer Mortgage Association payment mortgages with Assistance (Fannie Mae): 33/38 debt to income ratio to homebuyers earning less Loan applicants apply than 100% of area median to participating lenders income. for the following programs: 3/2 offers 3% downpayment with 2% gift from family 1.Single-family member, grant, or unsecured Community Lending loan. a. Community Home Low Down-Payment I Buyers Program Mortgages for Single-family ~, b. 3/2 Option Homes in under-served low- income & minority c. Fannie Neighbors communities. d. Fannie 97 Loans up to 97% with underwriting ratio of 33/36 for e. Community 25 yrs or 28/36 for 30 yr Seconds terms. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-13 Program Type Program Name Description Eligible Activities f. Flexible 97 & 100 Second-lien mortgage & low down payment for the qualified borrowers. " Homebuyer Assistance 2. Single-family Loans up to 100% with liberal Rehabilitation Loans debt ratios to homebuyers Rehabilitation a. Home Style with limited savings. Standard Mortgage Loans up to 90% of the "as b. Home Style completed value." Community Home Mortgage Improvement i Program Mortgages which fund the purchase & rehabilitation of a home. 3. Multi-family Fannie Mae purchases first Multi-family lien mortgages for Affordable Housing a. Targeted acquisition, moderate Affordable rehabilitation, or refinancing Housing of existing or recently b. Delegated completed multi-family Underwriting & developments. Servicing Fannie Mae fund used to 4. American provide loans & equity to Communities Fund affordable for-sale & rental ~ housing developments in 5. Fannie Mae targeted neighborhoods with i Foundation revitalization plans. Fannie Mae Foundation supports national & local non- profit corporations involved in the provision 8~ improvement of affordable housing & strengthening of neighborhoods & community. Federal Home Loan Freddie Mac Mortgage Corporation purchases/secures high loan (Freddie Mac) to value ratio single-family home purchase loans to Homebuyer a. Home Possible assist low-income families. Assistance Mortgages (Hope Possible 97, Home i ^ Acquisition Possible Rehabilitation Neighborhood Solution 97) b. Other Affordable ~ Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-14 Program Type Program Name Description Eligible Activities Housing Programs (Affordable Seconds, Federal Housing Administration 203(k) Rehabilitation Mortgages) ~ California Assistance to low-income Reinvestment minority neighborhoods, Coalition (CRC) including the construction, a. Community rehabilitation, bridge and acquisition financing needs of New Construction • Reinvestment Act developers of affordable Rehabilitation (C~) rental & for-sale housing, as b. Affordable Housing well as first-time, low- & Acquisition Program moderate-income Affordable Housing homebuyers. Projects c. Community Investment Program Program provides funds to Homebu er y qualified affordable housing Assistance projects that would not meet customary criteria or existing Commercial and secondary mortgage market economic requirements, or for which development there is no secondary market. activities Program offers interest rate at 20 basis points below the 11th District costs of funds. California Organized COIN provides financing for Investment Network affordable rental or ownership • Affordable Housing (COIN) housing Financing Non-profit Nonprofit financial institution Intermediaries with primary purpose of i assisting affordable housing a. Low-income projects with technical '~ Housing Fund assistance, loan guarantee 8~ b. Local Initiatives interest write down program, loan packaging revolving Affordable Housing Support Corporation , loan fund & mortgage Financing banking program. Affordable Housing Assistance for land acquisition, construction financing & equity capital. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-15 B. Summary of Priorities and Statement of Specific Annual Objectives CDBG monies allocated to the City for the 2010-11 funding year will not address all of the community's priority needs. Instead, allocations are focused toward specific projects addressing high community priorities and producing tangible community benefits. The following are the needs rated by the community as high priorities and their relation to the Five-Year priorities indicated in the Consolidated Plan. Also listed are actions that the City will undertake during the program year to address priority needs. Table 3 summarizes the City's priority, objectives and goals for the program year. Housing Needs Priority Activity: First-Time Homebuyers Program Based on the Southern California Area Government's 2006 Regional Housing Needs Assessment ,the City of Tustin is responsible for creating 11,985 housing units for renters, 3,080 (25.7%) of these units are to be reserved for "cost burdened" renters.' This requirement presents an opportunity for Low- and Moderate-income renter households to transition to homeowners, with some assistance. To address these opportunities, the City will provide technical assistance to assist Low- to Moderate-income households by identifying existing public and private lender financing programs (see list above). Additionally, the City will continue to monitor the Villages of Columbus housing tracts at Tustin Legacy. This master development is required to comply with the City's inclusionary housing requirements given that projects are in a redevelopment project area. Specifically FY 2010-11 programs include the following: • The City will provide referrals or direct assistance to Low- and Moderate- income households to help them identify and/or apply for homebuyer downpayment assistance programs that offer low interest rates and/or deferred interest loans. Programs include those offered by the State and Community Reinvestment Act (CRA) lender programs. • Assist Low- and Moderate-income homebuyers with a deferred second mortgage program for the amount of a buyer's "affordability gap." Priority Activity: Preservation of Existing Affordable Units The City will preserve its existing affordable housing by utilizing CDBG funds, Cost burdened means a moderate income tenant pays more than 30 percent of their income for housing and severely cost-burdened renters pay more than 50 percent of their income for housing for low income households. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan I V-16 Redevelopment housing set-aside funds, and other Federal/State available housing funds. These programs include: ~ Funding for nonprofits to assist with the acquisition of expired Section 8 project-based projects with expiring contracts. Strategies to preserve existing affordable housing units include: ~ Continue to require developers converting apartments to condominiums to process a use permit, provide relocation assistance, and/or provide incentives and assistance for purchase of the units by low- and moderate- income households. ~ Continue to provide housing referral services to families in need of housing assistance and information. ~ Code enforcement. CDBG funding will be used for code enforcement activities focused in low- and moderate-income neighborhoods. Code enforcement efforts support the City's housing rehabilitation program, which is funded with non-Federal monies. ~ Provide opportunities for affordable secondary residential dwelling units in. the single-family residential districts through existing Zoning Ordinance provisions. ~ Continue the provision of counseling and dispute resolution services via a fair housing service provider. ~ Continue the provision of services by a fair housing service provider to ensure equal housing opportunities within the City. ~ Ensure that processing of permits for low- and moderate-income housing are fast-tracked with low- and moderate-income housing permits being given priority over other permit applications. Priority Activity: Rehabilitation of Existing Housing Stock As indicated in the Consolidated Plan, a large number of older housing units are located within the City's South Central and Town Center redevelopment project areas. Many of these older homes are in need of rehabilitation. Currently rehabilitation programs have been targeting specific areas located in the southwest portion of the City. Programs include: ~ Owner Rehabilitation Loans and Grants. ~ Rental Rehabilitation Loans and Grants. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-17 The City's and Redevelopment Agency's strategies for the rehabilitation of the City's existing housing stock include: ~ Require appropriate deed restrictions to ensure continued affordability for low- or moderate-income housing constructed or rehabilitated with the assistance of public or Redevelopment Agency funds, as legally required. ~ Allocate available CDBG and Redevelopment Agency funds to finance public improvements and rehabilitation of residential units in the City's target areas. ~ Use 20 percent housing set-aside funds as subsidies (i.e. land write downs, acquisition, and rehabilitation assistance grants and loans, etc.) from the South Central, Town Center and MCAS Tustin Redevelopment Projects to reduce the affordability gap for developing new and rehabilitating existing owner and rental units for low- and moderate-income households. Priority Activity: New Housing Construction With the exception of development opportunities occurring on the available land from the reuse of the MCAS-Tustin base site (i.e., Tustin Legacy), the City of Tustin is mostly built out. Consequently, the City has limited opportunities for new ownership and rental construction on infill sites in the City. However, the following programs have been designed to assist with the development of affordable units within newly constructed projects in either the South Central or Town Center project areas. Programs include: ~ New Owner Housing Construction ~ New Senior Ownership Housing Construction Strategies to encourage new housing construction include: ~ The City will assist in the development of affordable new ownership or senior rental housing within Tustin Legacy. A priority may be given to ownership housing projects that are consistent with the City's Housing policy. ~ The City will provide for mixed-use site opportunities in Old Town where new ownership townhomes could be constructed. ~ The City will provide referrals to the Orange County Housing Authority where necessary for the development and operation of federally assisted low- and moderate-income housing programs. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-18 Priority Activity: Homeless Needs This priority encourages activities which support the homeless, those at risk of being homeless and families in transition from homelessness to independent living by providing support services, counseling, and transitional housing. Programs include: ~ Homeless Housing Partnership Program ~ Laurel House ~ Olive Crest ~ Human Options Strategies for support and ancillary services to support the homeless include: ~ Support Orange County Social Services Agency programs for the creation of a new family campus for abused and neglected children. ~ Laurel House -Allocates CDBG funds to assist Laurel House in providing temporary shelter and information for support resources to homeless runaway teens. ~ Olive Crest -Olive Crest shelter, support, education, and counseling to youth (16-18 years old) transitioning out of the foster care system. The Transitional Housing Placement Program helps prepare the youth for the challenges and stresses of independent adult life with the goal of helping them become productive members of society. Priority Activity: Support and Ancillary Services This priority encourages activities which support affordable housing units for particular groups, such as low- and very low-income households, homeless, and families in transition from homelessness to independent living. Programs include: ~- Section 8 Certificate and Vouchers Strategies for support and ancillary services to support affordable housing units for targeted groups include: ~ Encourage the availability of Section 8 rental assistance certificates and voucher certificate program assistance funds through Orange County Housing Authority. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-19 ~ Encourage the maintenance of existing and establishment of new certificates and support the County's efforts to obtain continued Federal funding. Community Development Needs The Community Development needs within the City of Tustin are summarized below. Priority Activity: Youth Centers/Services Youth centers/services have been identified by the community as essential to provide recreational options to area youth. The target area for the CDBG program is severely limited in terms of park and recreation resources that are available to area youth desiring to participate in constructive, affordable, and organized activities. Therefore, priority programs to address the need for youth centers and services within the City of Tustin include: ~ Tustin Family Youth Center -CDBG funds will be allocated to the City of Tustin Parks and Recreation Department to provide afull-time recreation coordinator at the Tustin Family Youth Center located in the southwest neighborhood of the City. The Center provides free and affordable recreation services to children, the majority of whom are of low-income families. ~ Boys and Girls Club -Upward Bound enrichment program is provided by the Boys and Girls Club for the academic, social, fitness, and character development needs of at-risk youth in the southwest area of Tustin (CDBG low and moderate income tracts). The Upward Bound program provides a comprehensive non-student day program for 100 at-risk youth with computerized tutoring and homework assistance, arts, sports, fitness and recreation. CDBG funds will be utilized to pay for a portion of staffs salary. Priority Activity: Neighborhood Facilities Community facilities to serve children, youth, and adults are high priorities for the City of Tustin. Several existing facilities in the City need to be expanded to serve the City's growing population and the changing needs of target-area residents. Programs include: ~ Senior Center Improvements -Although no new facilities are planned for this fiscal year, the City of Tustin, through the City's allocation of CDBG-R funding, has replaced deteriorated wall coverings in the Senior Center and will also replace the heating and ventilation system and the auditorium flooring, all of which are also original to the 1989 building. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-20 Priority Activity: Childcare Facilities/Services Additional childcare facilities and services that are affordable to low- and moderate-income families are needed to serve the number of families in need in the target area. ~ Kids Corner Preschool - A preschool program will be provided at the Tustin Family and Youth Center. Free preschool services will benefit Low- and Moderate-income families. The program's main objective is to strengthen a child's self image and feelings of competence through activities such as arts and crafts, field trips, storytelling and nutrition education. Priority Activity: Recreation Facilities The City's CDBG target area was largely planned and developed prior to its annexation to the City of Tustin. Therefore, the area is comparatively limited in terms of park and recreational opportunities. The higher population density within the target area also contributes to the need for recreational facilities. As a result, considerable attention has been focused on ways to provide additional private and public youth, adult, and senior services and facilities to supplement those which are heavily used at this time. Programs to address this priority include: ~ Re-lamp Parks: Pine Tree, Pepper Tree, and Frontier Parks -Remove and replace lighting fixtures throughout the park with energy efficient alternatives. ~ McFadden Parkette Improvement -Improvements to the pocket park include perimeter fencing and a children's play area and associated surfacing. ~ Tustin Legacy Community Park. With the closing of the MCAS-Tustin in July of 1999, the City is undertaking steps to rehabilitate existing amenities within the base. Priority Activity: Street and Sidewalk Improvements/Infrastructure The majority of the streets, sidewalks, and infrastructure in the CDBG target area, were constructed more than 30 years ago. Also, some portions of the target area were never developed with storm drain and/or sidewalks. These facilities have reached the age where they are beginning to deteriorate more rapidly and require reconstruction. With the population growing, the need for new street surfacing and infrastructure is also increasing. The City's objective is to promote the improvement of existing infrastructure and the creation of new infrastructure where such infrastructure is nonexistent or completely inadequate. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-21 Programs to address the needs of street and sidewalk improvements include: ~ Mitchell Avenue Storm Drain Project, Phase 1 Construction -Line existing pipe with cured-in-place pipe (CIPP) and connecting the existing storm drain laterals. The existing corrugated metal pipe arch (CMPA) is severely corroded and in need of rehabilitation. Phase 2 consists of pavement rehabilitation, replacement of ADA ramps, and installation of additional catch basins and storm drain laterals. Priority Activity: Senior Services Area senior services are presently provided through the City's full-service senior center located in Old Town Tustin. Although the senior center is not geographically distant from the target area, multi-cultural and economic limitations and barriers may be preventing full participation in the center's programs. Additional services are necessary to target this population. Current programs include: ~ Community SeniorServ -Community SeniorServ's Nutrition Program for the elderly include congregate and home-delivered meals. These programs provide nutritious meals to Tustin elderly. The programs' objective is to alleviate poor nutrition among the vulnerable elderly population, especially prevalent among those who live alone and/or on limited incomes. The programs not only provide meals at a congregate site in Tustin, but also deliver meals to at-risk seniors (homebound) residing within the City. CDBG funds will be allocated to reimburse the raw food and other meals' related costs. Priority Activity: Crime Awareness The target area has become the community's highest priority for crime prevention activities, given the increasing population density and increasing need for police services. The population is a potential target for victim-related crime, which could be prevented by the implementation of crime awareness programs which include: ~ Community Service Program (CSP) -CDBG funds will be allocated to the Assessment and Treatment Services Center (ATSC), managed by CSP, to provide staff for youth and family counseling services. ATSC provides counseling to minor and first-time offenders, youth who demonstrate poor school behavior or performance, youth with family problems, youth who are victims of domestic violence, youth who use drugs or alcohol, or delinquent youth. While program participation is voluntary, a child and his/her entire family must agree to undergo therapy together. Referrals are made to this organization by the Tustin Police and area schools. Counseling services are provided by CSP staff or coordinated with other agencies. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-22 Priority Activity: Anti-Crime Programs Domestic violence has a presence in the City and affects individuals on an emotional, mental and physical level. Many times, victims of domestic violence suffer in silence and do not seek help right away. When victims do seek help, they may not know what resources are available. Domestic violence can be prevented or stopped if victims or potential victims have access to support and counseling services. To meet this need current programs include: ~ Human Options -CDBG funds will be allocated to Human Options, Inc. to provide staff for outreach, shelter, and counseling services that focus on helping victims identify the impact of violence and developing a plan to take charge of their own lives. Counseling services are provided by Human Options staff or coordinated with other agencies. The program will be operated within the Low- and Moderate-income areas of the City and specifically service City residents Priority Activity: Health Services Based on the 2000 census, the Southwest area of the City (a CDBG target area) is concentrated with high-density residential and low-income households. Often, the majority of the households' income is utilized to pay for housing. Consequently, limited or maybe none at all is set aside for health insurance. Preventive medical and dental care is a luxury that typical households may not be able to afford. Low-cost health services are needed to help the household with preventive health and dental care. Programs to address this need include: ~ Health and Human Services: The Tustin Parks and Recreation Department offers health services such as fitness programs, hearing test, senior haircuts, Alzheimer support, housing referrals, counseling, etc. All services are offered free or at small nominal fee to Tustin Seniors. Priority Activity: Code Enforcement Property maintenance issues are of significant importance to the community as the majority of residential, commercial, and industrial structures in the target area are at least 30 years in age. Absentee property owners contributed to delayed property maintenance in many cases. Active Code Enforcement is needed to ensure that properties are properly maintained in accordance with City standards. Programs addressing code enforcement include: ~ Code Enforcement -CDBG funds will be allocated for salary and benefits for one code enforcement officer to support the City's Housing Rehabilitation program targeting the southwest neighborhood (low- and moderate-income target areas). Tustin 2010-2015 Consolidated Plan Section IV -Action Plan I V-23 ~- Graffiti Removal -CDBG funds will be allocated for the removal of graffiti in the southwest neighborhood. The southwest neighborhood has been determined by HUD as the CDBG low- and moderate-income target areas. Priority Activity: Economic Development Stimulating and retaining business within the CDBG target areas is necessary to rejuvenate dilapidated areas, stimulate private investment, strengthen the City's financial base, improve public facilities, create jobs, and prevent further economic decline to enhance the quality of life in the area. Redevelopment Agency staff resources and funds will be utilized to assist businesses that benefit the CDBG target area. Programs assisting business include: ~ Start-up and technical assistance - The Redevelopment Agency provides businesses with access to a variety of financing programs authorized by either the federal or state government, as well as programs provided by other private, public and nonprofit agencies. The Redevelopment Agency also facilitates preliminary development/ business license application meetings to discuss site location needs that would be of mutual benefit to the City and businesses and may be able to facilitate land assembly assistance or zoning incentives. The Community Development Department provides permit streamlining services to target businesses. Priority Activity: Planning/Administration Planning services are needed to administer the CDBG program, to prepare planning documents, and to facilitate fair housing assistance -these services are necessary to support other Consolidated Plan priorities. Planning and administration programs include: ~ Fair housing activities -Tustin has distinct and independent policies and programs that affect housing development. From time to time the City will review these policies and programs and evaluate if modifications may be warranted to ensure the jurisdiction is affirmatively furthering fair housing. In addition, CDBG funds will be allocated to contract with anon-profit fair housing service provider to provide fair housing services to Tustin residents. The contract also includes the implementation of the Analysis of Impediment to Fair Housing Choice. The following actions are the typical fair housing services to be provided: ^ Fair Housing Community Education -Conduct fair housing community education presentations, publish and distribute fair housing newsletters, speak at public meetings, and hold training programs for consumers and housing industry professionals. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-24 ^ Fair Housing Enforcement - Respond to housing discrimination complaints, including investigation and portfolio testing, .to evaluate the merits of a fair housing claim, and if appropriate, conciliation and/or prosecution of meritorious housing discrimination cases. ^ Tenant Legal Assistance -Provided legal assistance in court actions within the region, which involve important housing rights such as eviction, housing discrimination, substandard conditions, or retaliation for exercising a lawful right. ^ Housing Dispute Evaluation & Resolution -Assist in evaluating housing issues/complaints. ^ Mediation Program -Resolve disputes through certified mediators to assist housing providers/consumers to reach agreements about the disputes without litigation. ~ Planning and Administration -CDBG funds will be allocated for City staff administration of the CDBG program. Funds may also be used to undertake specific plans with impact to the Low- and Moderate-income target area. C. Description of Activities, Annual Affordable Housing Goals ~ Outcome Measures Tables 3 and 4 that follow describe activities to be undertaken, annual goals for each activity including affordable housing goals and the outcome measures. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan I V-25 U ..' .G 0 ^C CC _~ M (C y `r F ~ .~ .~ C/~ r ~ O r N LL ~ O E ~ O _ c o N U E N ~ L ~ v a ~ ~ N ~ Q N y N O N E~ E~ E o ~ O (n O (n O fn N O N N m y O O '~ r N tlJ 'O j N N 'O 7 N (A -O N 0 . ~ N O ~2LL 0 0 ~21L 7 ~21L ~ ~ ~ • • c fn 3 o w n ~ J a~ ~ N ~ C N ~, • N •~ d a L~ ~ o .N v c • c g m ~ ;~ Z w :° Z y ~_ ' cp ~ ~ -- . ~ v aci 2~o Qo° ~ ~mo ~c ~c ~c •~ f0 c iy 'p c~0, O N C ~ C ~ O n.- L ~ O N 3 O ~ O LL N N - `l p1 N f6 . - ~ t /`1 ` 7 V ~ ~. 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T ~ j . _ C ~ ~ Y m V N N J d O O N "' C c .a O N ~ N O ~ C -- N ;~ d ~ N Q ~ O_ N N O G~ m O U ' N ~ a ~ N y p N ~ 7 ~ t ~ U = L c6 j °' o •` ~ N N y = ~ c :: ~ O N y C '00 ~ N N ~ E ' 7 > N v ~ n O Q • C d W N N • ~ • ~ C • . O ~ . L ~ a~ L as °~' L r • rn ~ o ~~ ~ a m a ao ci Z C fC a ~ ~ ~~ a~ ~ ~ m m a~ o.5.wu,Eo N - N 7 N ~ O U N U C N O cy f0 O O a=LLU~U ~~ ~~ aSLL.U~U c co c O U Q r r O O N Table 4 CPMP Version 2.0 Grantee Name: Tustin Project Name: Bo sand Girls Club - U ward Bound Description: IDIS Project #: UOG Code: CA63804 The Upward Bound Academic Enrichment Outreach Program provides after-school and non-student day programs. The focus of the program is on academic, social an character development needs of at-risk youth in the Southwest Tustin area. CDBG funds will be used to pay for a portion of staff salaries. National Objective: Low/Mod income Limited Clientele - 24 CFR 570.208 (a)(2). Location• Priority Need Cate ory Citywide r - -- ~ Select one: - ' Public Services ~--- -- -- -- - Explanation: letion Date• d Com E t Youth Program: The community identified this program as a high priority since it is p xpec e nd affordable recreation activities i d i f ze a e, organ ve, sa important to provide construct 06/30/2011 especially for low- and moderate-income families. for children 0 jective Category , Decent Housing Suitable Living Environment Economic Opportunity Specific Ob'ectives Outcome Categories 1 ~ Improve the services for low/mod income persons _ - _ ~ Availability/Accessibility ' ~ ' bili ^ Aff d 2'' - ---- _-- __ -- - - ty or a ^ Sustainability 3 _ _____ _. 1 O1 People ~ ' Proposed 400 Accompl. Type: ~ _ __ _ -- _ _ - Underway ~ d Complete = Accompl. Type: ~ Accompl. Type: ~ a.+ H V d a 'o E pL, ~ Accompl. Type: ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 400 persons served Number of people served To be determined 050 Youth Services 570.201(e) ~ Matrix Codes ~ ~ Matrix Codes Matrix Codes _ ~ ~~ Matrix Codes ' ~ Matrix Codes '„~ CDBG I~ ~ Proposed Amt. $ 15,000 Fund Source: ~ ,. Actual Amount Fund Source: ~ Fund Source: ~ ~ Accompl. Type: • Accompl. Type: ~ O OL. Accompl. Type: ~ Accompl. Type: ~ City of Tustin 33 2010-11 Action Plan Table 4 CPMP Version 2.0 Grantee Name: Tustin Project Name: Communit Services Pro rams, Inc. -ATSC Description: IDIS Project #: UOG Code: CA63804 Assessment Treatment and Services Center (ATSC) will provide counseling service to youth in an effort to halt delinquent behavior. Funding is requested for staff salaries and benefits. National Objective: Low/Mod Income Limited Clientele - 24 CFR 570.208 (a)(2). Location• Priority Need Category y Cit wide -- ' Select one: Public Services ~ _ i - ---- --- Explanation: Expected Completion Date• Youth Program: The objective is to support the development of facilities and services for youth, especially those in the target area. The goal is to assist 150 Tustin at-risk 06/30/2011 outh annually with behavior modification/counseling services to be deter delinquent jective tegory y behavior. Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 Improve the services for low/mod income persons ~ -- - ----- ---- _- ----- --- --- --- Availability/Accessibility I ~ rd bili ^ Aff 2 _ _ _ ty o a ^ Sustainability 3 ___ ~ O1 People ' ~ Proposed 80 Accompl. Type: ~ -- Underway ~ d Complete t Accompl. Type: ~ ~ Accompl. Type: ~ ~ ++ _N v - d C. ~O d v Accompl. Type: ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 80 persons served Number of people served To be determined ~ 05D Youth Services 570.201(e) ~ Matrix Codes ~ _ _ __ _ _ _ Matrix Codes ~~ ~ Matrix Codes ~ Matrix Codes ~ Matrix Codes ~ ~ CDBG ~ Proposed Amt. $ 10,000 Fund Source: ~ ~ L Actual A mount Fund Source: ~ Fund Source: ~ } i Accompl. Type: ~ Accompl. Type: ~ O1 d Accompl. Type: ~ ~ Accompl. Type: ~ City of Tustin 34 2010-11 Action Plan Attachment 1 CPMP Version 2.0 Grantee Name: Tustin Project Name: Communit Senior Serve Con re ate Lunch & Home Delive Meals Pro rams. Description: IDIS Project #: UOG Code: CA63804 Meal programs for seniors and frail elderly. Congregate meals served at the Tustin Senior Center. Meals on wheels program delivered to homebound seniors. National Objective: Low/Mod Income Limited Clientele - 24 CFR 570.208 (a)(2). Location• Priority Need Category Home Meal Delivery program is Citywide & Congregate Meal Select one: [ublic Services _ _ ~ • program is offered at Tustin Senior Center - 200 C Street Tustin, CA. Explanation: Expected Completion Date: Funds will be allocated to Community Senior5erve to provide meals for seniors at a congregate site (Tustin Senior Center) and home delivery for those seniors who are 06/30/2011 articipate at the congregate site unable to 0 jective Category . p Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 I, Improve the services for low/mod income persons • ^ Availability/Accessibility II • rdability ^ Aff 2 - - --- _. _- - _.-- _ -- o ^~ Sustainability _ _ ~ • 3 _ ___ O1 People ~ • Proposed 295 Accompl. Type: • -- Underway ~ d Complete t Accompl. Type: ' • Accompl. Type: • N u= d a 'o ~ d ~ Accompl. Type: • Accompl. Type: • v Q Pro osed Outcome Performance Measure Actual Outcome 295 persons to serve Number of persons served To be determined 05A Senior Services 570.201(e) • _ - - Matrix Codes • ~ • i Matrix Codes ~ • ~ Matrix Codes ', • Matrix Codes • ~ Matrix Codes ~ CDBG • Proposed Amt. $ 20,000 Fund Source: L - Actual Amount Fund Source: • Fund Source: i Accompl. Type: • Accompl. Type: O1 O a Accompl. Type: • Accompl. Type: City of Tustin 35 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: Graffiti Removal ro ram Description: IDIS Project #: UOG Code: CA63804 Funds will be allocated to the Cit of Tustin Community Development Dept. to pay contractor to remove graffiti in the Southwest neighborhood (CDBG target area). National Objective: Low/Mod Income Area Benefit - 24 CFR 570.208 (a)(1) . Location• Priority Need Category Low- &Moderate-Income Census ~--- - - Public Services ~ Tracts & Block Groups Select one: - _ _ _ _ _ _ Explanation: letion Date• ected Com Ex The Southwest neighborhood (CDBG area) has experienced increased population p p -related an ith f t d i l i A g w g n e s a so es rea density & declining property maintenance. 06/30/2011 3; CT:075403 ram limited to: CT:074407 BG:2; CT:074408 BG:1,2 raffiti Pro jective tegory , . g g BG:3; CT:075505 BG:1,2 3; CT:075507 BG: 4, CT:075512 BG:1, CT:075513 BG:2; 0 Decent Housing CT:075514 BG: 1,2; CT:075515 BG:1, Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories i 1 ~~ Improve the services for low/mod income persons --- -- ---- ----- -- - -- - - ^ Availability/Accessibility ~ ^ Affordability 2 - - _ _ -- Sustainability ___ _ ___ ~ 3' _._ Accompl. Type: ~ Proposed 32993 Accompl. Type: ~ ~ -- _- Underway ~ ~ Complete ~ Accompl. Type: ~ Accompl. Type: ~ ~ v = ~ a 'o ~ d ~ Accompl. Type: ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 32993 Number of people served To be determined 05 Public Services (General) 570.201(e) ~ Matrix Codes ~ ~ ~ Matrix Codes ~ Matrix Codes ~ i Matrix Codes ~ Matrix Codes ~ CDBG ~ proposed Amt. L Actual Amount t0 ~ Fund Source: ~ i Accompl. Type: ~ O1 O t. Accompl. Type: ~ a 528 J I Fund Source: ~ Fund Source: I ~ Accompl. Type: ~ Accompl. Type: ~ City of Tustin 36 2010-11 Action Plan Attachment 1 CPMP Version 2.0 Grantee Name: Tustin Project Name: Human O tions -Tustin Outreach Pro ram Description: IRIS Project #: UOG Code: CA63804 Human Options will provide shelter, counseling, education and support services for women and their children that are victims of domestic violence. National Objective: Low/Mod Income Limited Clientele - 24 CFR 570.208 (a)(2). Location• Priority Need Category. y Cit wide Select one: ----- ~ Public Services '~_ _.__ __ __ ~ Explanation: The program will provide free services to low- and moderate-income individuals with Expected Completion Date• the goal of ending the cycle of domestic violence and ensuring a safe and stable 06/30/2011 environment famil Iective Category . y Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 ~~ Improve the services for low/mod income persons ! ~ Availability/Accessibility ~ ^ Affordability 2' --- - ^ Sustainability 3 _ ~ _ O1 People , ~ Proposed 18 Accompl. Type: ~ C - Underway ~ d Complete ~ Accompl. Type: ~ Accompl. Type: ~ u d a d u Accompl. Type: ~ Accompl. Type: ~ ~ v Q Pro osed Outcome Performance Measure Actual Outcome 18 persons served Number of persons served To be determined ~ 05G Battered and Abused Spouses 570.201(e) ~ i Matrix Codes ~ ~ ~ Matrix Codes ~ Matrix Codes ~ ~ Matrix Codes ' ~ Matrix Codes ~ Fund Source: ~ ~ Proposed Amt. $ 5,000 ' Fund Source: ~ i ___-- Actual Amount Fund Source: ~ ~ Fund Source: ~ i Accompl. Type: ~ Accompl. Type: ~ G1 O L a Accompl. Type: ~ Accompl. Type: ~ City of Tustin 37 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: Laurel House Description: IDIS Project #: UOG Code: CA63804 Emergency shelter for homeless teens. In addition to shelter, a variety of support services are also provided. CDBG funds will be used to fund a portion of salaries and benefits for house parent and the executive director. National Objective: Low/Mod Income Limited Clientele - 24 CFR 570.208 (a)(2). Location: Priority Need Category Citywide Public Services ~ ~ t one: l S --- - ec e --- -- - -- Explanation: Expected Completion Date• Youth Program: Support for local agencies and nonprofit organizations that provide shelter and other services to homeless through financial contribution of CDBG funds. 06/30/2011 rogram works to help teens reunite with their families with a positive and long- This jective Category p term effect. Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories Increase the number of homeless persons moving into permanent housing ~ ~' 1' -_- -- __- __ - _ -_ --- ^~ Availability/Accessibility Increase range of housing options & related services for persons w/ special needs ; ~ 2 ---- - --- -- ^Affordability ---- -- -- -- ------ ^ Sustainability 3 Improve the services for low/mod income persons ~ OS People ~ -- Proposed 10 Accompl. Type: ~ _ - - -- _ Underway ~ d Complete t Accompl. Type: ~ Accompl. Type: ~ *+ H v - d a 'o ~ L ~ d v ~ Accompl. Type: ~ Accompl. T e ~ ~ YP v Q Pro osed Outcome Performance Measure Actual Outcome 10 persons served Number of people served To be determined OSD Youth Services 570.201(e) ~ Matrix Codes ~, ~ Matrix Codes I ~ ~ Matrix Codes Matrix Codes ' ~ Matrix Codes CDBG ~ Proposed Amt. $ 5,000 Fund Source: ~ ~ i Actual Amount N } ~ Fund Source: Fund Source: ~ i Accompl. Type: ~ Accompl. Type: ~ O1 O a Accompl. Type: ~ Accompl. Type: ~ 0 City of Tustin 38 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: Olive Crest -Transitional Housin Placement ro ram Description: IDIS Project #: UOG Code: CA63804 Olive Crest provides shelter, support, education and counseling for youth (16 to 18 years old) who are transitioning out of the foster care system. Funds wi ll a used for staff salary and benefits. National Objective: Low/Mod Income Limited Clientele - 24 CFR 570.208 (a)(2). Location• . Priority Need Category Citywide j - ~ Public Services • Select one: ~ --- _-- --- - Explanation: Expected Completion Date: Youth Program: The Transitional Housing Placement program helps prepare the nd become lt lif d d t f d e a en u epen a in Youth for the challenges and stresses o 06/30/2011 roductive members of society after they emancipate from the foster care system. jective ategory p Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 ~ Increase range of housing options & related services for persons w/ special needs ' • Q Availability/Accessibility • Increase the number of homeless persons moving into permanent housing 2 ----- ^ Affordability - - ------ -- - --- - ^ Sustainability 3 Improve the services for low/mod income persons i • Ol People • Proposed 24 Accompl. Type: • - -_ _ - Underway ~ d Complete H Accompl. Type: • Accompl. Type: • v - d a 'o ~ d v Accompl. Type: • Accompl. Type: • v Q Pro osed Outcome Performance Measure Actual Outcome 24 persons served Number of persons served To be determined 05D Youth Services 570.201(e) ~I • ~ Matrix Codes Ii • ~~ Matrix Codes • ~ Matrix Codes • ', Matrix Codes ' • Matrix Codes I; • ~ CDBG • Proposed Amt. $ 5,000 Fund Source: • i. -- Actual A mount Fund Source: • Fund Source: • ~ i Accompl. Type: • Accompl. Type: • O L a Accompl. Type: • Accompl. Type: • City of Tustin 39 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: Tustin Park & Rec De t -Youth Center Staff Description: IDIS Project #: UOG Code: CA63804 Funds will be allocated to the City of Tustin Parks and Recreation Department to provide a recreation coordinator at the Tustin Family Youth Center located in the southwest neighborhood (Low/Mod area). The majority of the children and families served at the Tustin Family Youth Center are low/moderate-income families. National Objective: Low/Mod Income Limited Clientele - 24 CFR 570.208 (a)(2). Location• Priority Need Category 14722 Newport Ave, Tustin CA Select one: i Public Services ~ -- ---- ----- Explanation: Expected Completion Date: Youth Program: The community identified this program as a high priority since it is ecreation activities bl ff d i d d f or e r a ze an a e, organ important to provide constructive, sa 06/30/2011 especially for low/moderate-income families. for children 0 jective Category , Decent Housing Suitable Living Environment Q Economic Opportunity Specific Ob ectives Outcome Categories 1 ~ Improve the services for low/mod income persons ~ Q Availability/Accessibility i ~ rdability ^ Aff 2 _ __ ___ - o ^ Sustainability 3 _- ~ __- ___ Ol People ~ Proposed 2,400 Accompl. Type: ~ -~ - _-- - Underway ~ d Complete ~ Accompl. Type: ~ Accompl. Type: ~ v= d a 'o ~ a ~ Accompl. Type: ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 2400 persons served Number of people served To be determined ~ 05D Youth Services 570.201(e) ~ ~ ~ Matrix Codes I ~ _ - - - -- ~ Matrix Codes ~' ~ Matrix Codes it ~ Matrix Codes ~ Matrix Codes - ___ _ ,,~ ---------- CDBG I ~ Proposed Amt. $ 28,900 ------- - Fund Source: ~ ~ - Actual Amount } Fund Source: ~ ~ Fund Source: ~ i Accompl. Type: ~ Accompl. Type: ~ O d Accompl. Type: ~ Accompl. Type: ~ City of Tustin 40 2010-11 Action Plan Attachment 1 CPMP Version 2.0 Grantee Name: Tustin Project Name: Tustin Parks & Rec De t -Kids Corner Description: IDIS Project #: UOG Code: CA63804 Kids Corner Preschool encourages children 2 to 4 years old to creatively explore the world around them through art, crafts, music, field trips, storytelling and nutrition education. Funding requested is for salaries and benefits of program staff. National Objective: Low/Mod Income Limited Clientele - 24 CFR 570.208 (a)(Z). Location• Priority Need Category 14722 Newport Ave, Tustin CA - ~ublic Services ~ ~ Select one: - ----- - - -- ---- Explanation: Expected Completion Date• This is a program to benefit Tustin residents. It is free to local families that qualify. ortant to it i im i i it hi h p nce s or y s g pr The community identified this program as a 06/30/2011 organized and affordable care for children, especially for safe rovide constructive 0 jective ategory Decent Housing , , p low/moderate-income families. Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 Improve the services for low/mod income persons _ ' • ^ Availability/Accessibility ~ • ^~ Affordability 2 -_ - -- _ ^ Sustainability 3 - • __ _ ___ _ O1 People • Proposed 216 Accompl. Type: ~ • C - - Underway ~ d Complete H Accompl. Type: • Accompl. Type: ' • v - d a 'o ~ a v Accompl. Type: ~ • Accompl. Type: ~ • v Q Pro osed Outcome Performance Measure Actual Outcome 216 persons served Number of people served To be determined 05L Child Care Services 570.201(e) • j Matrix Codes ~, • - ---- ~ • Matrix Codes ' • Matrix Codes • ~ Matrix Codes ' • Matrix Codes r„~ CDBG • Proposed Amt. $ 18,900 Fund Source: • L Actual Amount Fund Source: ' • Fund Source: • i Accompl. Type: • Accompl. Type: • G1 O d Accompl. Type: • Accompl. Type: City of Tustin 41 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: Re-Lam Parks: Pine Tree, Pe er Tree, Frontier Description: IDIS Project #: UOG Code: CA63804 Remove and replace lighting fixtures throughout the parks with energy efficient alternatives (1402 Bryan Ave). National Objective: Low/Mod Income Area wide BeneFt - 24 CFR 570.208 (a)(1). Location• Priority Need Category Census Tract (Block Group): r ~~ ~ Public Facilities ~ 755.07 (4), 755.05 (3), 755 .12 Select one: _ (2) Explanation: Expected Completion Date: Public facility improvements utilized to promote improvements in existing i ty. infrastructure to create a more livable commun 06/30/2011 0 jective Category Decent Housing Suitable Living Environment Economicflpportunity Specific Objectives Outcome Categories ( Improve quality /increase quantity of neighborhood facilities for low-income persons ~ 1 , . ^ Availability/Accessibility ~ Improve the services for low/mod income persons ~ ' ^ Affordability 2 -- _ ------ - _- ----- --- - - - ^~ Sustainability 3 ~ __ __ 11 Public Facilities ~ Proposed 3 Accompl. Type: ~ --- Underway ~ d Complete S Accompl. Type: ~ Accompl. Type: ~ a+ ~- v ~ a .o o a v Accompl. Type: ~ Accompl. Type: ~ V Q Pro osed Outcome Performance Measure Actual Outcome 3 Public infrastructure provided To be determined '~ 03F Parks, Recreational Facilities 570.201(c) ~, ~ Matrix Codes ~ Matrix Codes ~ Ii Matrix Codes _ _ ___ ~ Matrix Codes I ~ 'Matrix Codes ~ ~ CDBG ~ Proposed Amt. $ 120,000 Fund Source: ~ ~ Actual Amount Fund Source: ~ Fund Source: ~ } i Accompl. Type: ~ Accompl. Type: ~ O a Accompl. Type: ~ Accompl. Type: ~ City of Tustin 42 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: Mitchell Avenue Storm Drain Phase 1 Construction Description: IDIS Project #: UOG Code: CA63804 Line existing pipe with cured-in-place pipe (CIPP) and connecting the existing storm drain laterals, between Newport Avenue and Red Hill Avenue. The existing corrugated metal pipe arch (CMPA) is severely corroded and in need of rehabilitation. National Objective: Low/Mod Income Area wide Benefit - 24 CFR 570.208 (a)(i). Location• Priority Need Category Census Tract: 755.12 r Public Facilities it ~ Select one: `____ __-_ --_--- -- - Explanation: Expected Completion Date: Public facility improvements utilized to promote improvements in existing i ty. infrastructure to create a more livable commun 06/30/2011 0 jective Category Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 Improve quality /increase quantity of neighborhood facilities for low-income persons ~ ~ _ _ - -- -- ----- - - ^ Availability/Accessibility ~ Improve the services for low/mod income persons ' ~ ^ Affordabilit 2 _ - -- -- - - _ "--- - - y Sustainability 3 ____ ~ __ _- 11 Public Facilities I ~ Proposed 1 Accompl. Type: ~ ~ ++ _ - _____ _ _-,_ Underway - C ~ d Complete H Accompl. Type: ~ Accompl. Type: ~ ~ v • C. d ~O pL, u Accompl. Type: ; ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 1 public facility improved Public facility improved To be determined ~ • 03I Flood Drain Improvements 570.201(c) i I,, Matrix Codes ~ ~ - ' ~ Matrix Codes ~ I Matrix Codes i _~ ~ Matrix Codes _ _ ~J 'Matrix Codes CDBG ~ ~ Proposed Amt. $ 275,000 Fund Source: ~ ~ _ __ __ L Actual Amount ~ Fund Source: ~ Fund Source: ~ i Accompl. Type: ~ Accompl. Type: ~ d1 O i Accompl. Type: , ~ Accompl. Type: ~ a City of Tustin 43 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: McFadden Parkette Im rovements Description: IDIS Project #: UOG Code: CA63804 Improvements to the pocket park include perimeter fencing and children's play area and associated surfacing. National Objective: Low/Mod Income Area wide Benefit - 24 CFR 570.208 (a)(1). Location: Priority Need Category Census Tract 755.14 -- i F ili ~ P l lect one: S - ac t es ub ic -- e ~--- ----- ---- Explanation: Expected Completion Date• Public facility improvements utilized to promote improvements in existing it l e commun y. infrastructure to create a more livab 06/30/2011 jective Category Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 Improve quality /increase quantity of neighborhood facilities for low-income persons ~ ^ Availability/Accessibility ' ~ % Improve the services for low/mod income persons ^Affordability Z _-.__ __ _- _____ _-- _-__ __ ^~ Sustainability ~ -- 3 --- - ----- 11 Public Facilities _~, ~ Proposed 1 Accompl. Type: ~ -- - - Underway ~ d Complete ~ Accompl. Type: i ~ Accompl. Type: ~ u- d a 'o ~ d ~ Accompl. Type: ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 1 public facility improved Public facility improved To be determined 03A Senior Centers 570.201(c) !~ Matrix Codes ~~J ~ Matrix Codes i ~ ~I Matrix Codes j Matrix Codes _ I, ~ Matrix Codes _ ~ CDBG I ~ Proposed Amt. $ 50,000 Fund Source: ~ ~„i ~ Actual Amount Fund Source: ~ Fund Source: ~ } i Accompl. Type: ~ Accompl. Type: ~ 01 O a Accompl. Type: ~ Accompl. Type: ~ City of Tustin 44 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: Code Enforcement Description: IDIS Project #: UOG Code: CA63804 The City's Southwest neighborhood (CDBG area) has experienced an increase in population density and decline in property maintenance. To arrest this decline the city has made code enforcement a high priority. CDBG funds will be used to fund 1 full-time code enforcement officer working exclusively in the Southwest neighborhood. National Objective: Low/Mod Income Area wide Benefit - 24 CFR 570.208 (a)(1). Location• Priority Need Category CT:074407 BG 2; CT:074408 BG:1, 2, 3; CT:075406 BG:3, -- Other, I~ ~ -- -- Select one: CT:075505 BG:1,2,3; CT:075507 BG:3,4; CT:075512 BG:1, CT:075514 BG:1, 2; CT:075515 075603 BG:3 CT BG 1 2 Explanation• : : , ; Code Enforcement: Provide active code enforcement to ensure properties are maintained in accordance with housing and building code standards. Expected Completion Date: 06/30/2011 0 jective ategory Decent Housing Q Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 Improve the quality of affordable rental housing ~ ~ -- --- -- - ^ Availability/Accessibility - - - ---- --- ~ ~ Improve the quality of owner housing ^ Affordability 2 ~ - --- - --- - -_ --- ^~ Sustainability 3 li _ _ - __ _ ~ 10 Housing Units ~ Proposed 100 Accompl. Type: ~ ~~,, -- - - - -_ Underwa Y ~ ~ d Complete t Accompl. Type: ~ Accompl. Type: ! ~ ++ ~- v - d a 'o E d v Accompl. Type: ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 100 properties improved to code Properties improved to code To be determined O ~ j Matrix Codes ~ '~ 15 Code Enforcement 570.202 c Matrix Codes _ ~ ~ ~ Matrix Codes ~ _ -- -- Matrix Codes --- - --- ~ atrix Codes I ~ ~ _- - - Fund Source: ~ ~ Proposed Amt. $ 116,000 - -- Fund Source: ~ L Actual Amount R Fund Source: ~ Fund Source: ~ ~ ~ Accompl. Type: ~ Accompl. Type: I ~ O a Accompl. Type: ~ ~ Accompl. Type: ~ ~ City of Tustin 45 2010-11 Action Plan Attachment 1 CPMP Version 2.0 Grantee Name: Tustin Project Name: Fdlr HOUSIn Services Description: IDIS Project #: UOG Code: CA63804 Fair housing enforcement, counseling and education services in order to address impediments to fair housing and to combat discrimination. Location• • Priority Need Category. Citywide ~ /Administration I i Pl Select one: , ann ng - --- - - Explanation: Expected Completion Date• Fair housing assistance for Tustin residents to ensure equal housing opportunities regardless of race, religion, ethnicity, gender, age, marital status or household 06/30/2010 osition com 0 jective ategory . p Decent Housing Suitable Living Environment Economic Opportunity Specific Objectives I ~ Outcome Categories 1 ^ Availability/Accessibility ~ , ~ ^ Affordability 2 ~ - - ^~ Sustainability 3 _ ~ _ __ 04 Households ~ --- Proposed 225 Accompl. Type: ~ _.___ --- Underway - _ ~ d Complete H Accompl. Type: ~ Accompl. Type: ~ v ~ a 'o ~ L 0 a v Accompl. Type: i ~ Accompl. Type: ~ v Q Pro osed Outcome Performance Measure Actual Outcome 21D Fair Housing Activities (subject to 20% Admin cap) 570.20 ~ Matrix Codes ~ Matrix Codes ~ Matrix Codes ' ~ Matrix Codes ~ ~ Matrix Codes ' ~ ~ CDBG ~ Proposed Amt. $ 17,412 Fund Source: ~ L Actual A mount f0 Fund Source: ~ Fund Source: ~ } i Accompl. Type: ~ Accompl. Type: ~ O1 O a Accompl. Type: ~ Accompl. Type: ~ City of Tustin 46 2010-11 Action Plan Attachment 1 Grantee Name: Tustin CPMP Version 2.0 Project Name: CDBG Pro ram Administration Description: IDIS Project #: UOG Code: CA63804 Funding for program oversight, coordination and compliance. Location• Priority Need Category Citywide Select one: Planning/Administration ~ ~_ _ - __-_- _- _ _- --- Explanation: Expected Completion Date• Planning and admin of CDBG program and leveraging of CDBG dollars with private 06/30/2010 funds. jective ategory Decent Housing Q Suitable Living Environment Economic Opportunity Specific Objectives Outcome Categories 1 j ~ ^ Availability/Accessibility ' ~ ^ Affordabilit 2 -- - -- y ^ Sustainability _ 3 ~ _-- - -- _ _-_. _--- _-_ Accompl. Type: ~ ~ Proposed NA Accompl. Type: ' ~ - Underway ~ d Complete ~ t Accompl. Type: • Accompl. Type: ~ v y ~ a 'o ~ pL, u Accompl. Type: ~ Accompl. Type: ~ v a Pro osed Outcome Performance Measure Actual Outcome ~ 21A General Program Administration 570.206 Matrix Codes ~ ~ _- City of Tustin 47 2010-11 Action Plan D. Geographic Distribution Tustin is a relatively small jurisdiction with limited areas which meet the Federal criteria of slum and blight, as defined under California State Redevelopment Law, or concentrations of Low- and Moderate-income persons. Nevertheless, Program Year 2010-11 funds have been allocated on the basis of meeting the national objectives of the CDBG program, including programs benefiting Low- and Moderate-income persons or possibly preventing slum and blight. Boundaries of the South Central redevelopment project area overlap areas of Low- and Moderate-income concentrations. Based on Consolidated Plan priorities, the City will focus public services and improvements in the portion of the City known as the Southwest Neighborhood which is also in the CDBG target area. The 2010-11 Action Plan reflects this "geographic" priority for allocating investment as indicated on the CDBG Low-and Moderate-Income Areas and Project Locations maps. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-26 Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-27 City of Tustin FY 2009-10 Community Development Block Grant Project Locations , ~'( /~ li; ~~ laurel House Community SeniorServ & Ceninr Cenrrri;ohrino Bovs 6i Girls Club Program Administration McFadden Parkette Graffiti Removal Mitchell Avenue ~ Code Enforcement Tustin Family 6z Youth Center Program, and Kids Corner Preschool " ~t'' '•~ ~~ Programs not shown on map: .{ ~,Yt{ ,~}+, f'`~~C , ~ 4 i Fair Housing Administration c .mss ~ ~ v ,° Y• ~t--~-~ ti,q ~ ~ ~/ .-'r Human Options ~ ~ / ,Qh `` ~,{~`~--.~,,,•<:,,;~I ~ ~l ~`y J"~ ~ Olive Crest ,` ~° r•-"~.•-~Y, ~ ~ ~ J ; ' ~ % Community Service Program / ATSC •,~~ r-- _ Redamp Parks: Pine Tree, Pepper Tree, Frontier J~, i ~ ~l{~~~4~-..c '~ ~'i ~i~ ~ `f ~ ~ ~. ~ ~r ,~``~' / ~+v~ / ~ /L ~, ~~ ~ /~ - ~/G~ /y~~~ 1 _ ~-~~i~ ~~w7 ~i~ IEGEND ~!; j ~~~ ~ ; ~ ~ { x_- `%//. ~/«3~c } r~~`~~~ ~ CITY .~' w ~,~„ ~- /(/ f ~ ~' ~~ / v~~ "_ ~~~ ~~ v MAP , n. ~ s '~ ~. ~ ~ . , A~~~rr~, r~ ~V'~~~y ~ `~~ti- o -/ ~ ®CDBG Target Areas / >y ~ ~`~l ~ /' S j \~~ \ /r' , , !/ ~ ~ `':. //\~~n~~~~~~~ ice' ~. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-28 E. Homeless and Other Special Needs Activities Statistical data, including the Year 2000 Census and data maintained by the Tustin Police Department, indicate that homelessness is not a major issue within the Tustin community. Nevertheless, it is recognized that homelessness is a regional issue for which the City of Tustin must provide a "fair share" of services to address the needs of the homeless. Furthermore, the City of Tustin participates in the County of Orange's annual Continuum of Care (CoC) application. 1. Activities to Address Emergency Shelter and Transitional Housing Needs of Homeless Individuals and Families In 1996 and 1998, the Orange County Rescue Mission was awarded approximately $1 million and $800,000 (respectively) to develop a supportive housing facility. Funding was awarded as part of the competitive Continuum of Care Homeless Assistance Grant program. A significant portion of the money was used in prior fiscal years to acquire transitional housing units. Additionally, in December 2001, the City of Tustin and Orange County Rescue Mission executed a ground lease to support the Rescue Mission's construction/rehabilitation of a 5.1 acre site to establish a 192-bed emergency and transitional housing project at the former MCAS Tustin. This emergency and transitional housing facility is now in operation. For FY 2010-11, the City will allocate CDBG funds for Laurel House and Olive Crest, organizations with local temporary and transitional shelters for teens, and Human Options, which provides transitional housing and support for domestic abused women and their children. 2. Activities to Prevent Low-income Individuals and Families with Children from Becoming Homeless The City of Tustin participates in the County of Orange Continuum Care program. The Orange County Housing Authority (OCHA) established a Family Self-Sufficiency Program. Preference for this program is given to families with children who are homeless or who are in danger of becoming homeless (those paying over 50 percent of household income for rent). In addition to providing housing assistance, this program provides a variety of support services designed to assist participants become economically independent including job training and employment for program participants. Tustin has allocated the maximum allowable amount of its CDBG funds to public service programs. While some of the organizations funded do not Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-29 directly serve the homeless, many of their activities may prevent homelessness. These activities include Laurel House, Olive Crest, counseling program (ATSC), Human Options, and Tustin Family and Youth Center programs. 3. Activities to Help Homeless Persons Make the Transition to Permanent Housing and Independent Living The City recognized that the homeless are often in need of low rent or subsidized housing in order to make the transition to independent living. The Orange County Housing Authority will continue to assist homeless persons on the Section 8 waiting list. Other efforts to help the homeless also are provided by local nonprofits and churches. 4. Activities to Address the Special Needs of Persons Who Are Not Homeless The City's Senior Center provides assistance to the elderly and frail elderly. These include transportation services, case management, information and referrals, shared housing program, senior activities, health and fitness, and other recreational activities. The City allocates CDBG funds to assist the Feedback Foundation to provide meals services to the elderly and frail elderly (home-bound elderly). The City will continue to refer those persons with special needs, such as persons with disabilities (mental, physical, developmental), persons with alcohol or other drug dependencies, and persons with HIV/AIDS to appropriate agencies. The following table summarizes the organizations that provide homeless services and special needs services for Fiscal Year 2010-11: Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-30 TABLE IV-C Homeless And Other Special Needs Activities Fiscal Year 2010-11 Target Funding Organization Program Name Population Special Amount Needs Federal Formula/Entitlement Grants ATSC / CSP Assessment and Youths At-risk $ 10,000 Treatment Services youths Center Human Options Tustin Outreach Low/Mod Victims of $ 5,000 persons Domestic Violence Laurel House Transitional Home Regional Homeless $ 5,000 for Teens in crisis Homeless Teens Olive Crest Transitional Housing Foster youth Homeless $ 5,000 Placement Program (16-18 yrs old) Community Senior Meal Eiderly Low/Mod $20,000 SeniorServ Program Elderly Total $45,000 F. Needs of Public Housing The City of Tustin does not have a Housing Authority. The City supports the Orange County Housing Authority (OCHA) housing voucher program. As of March 2010, 332 Tustin households received rental assistance administered by OCHA. The City does not own or operate public housing, and no public housing developments are proposed for Program Year 2010-11. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-31 G. Antipoverty Strategy/Reduce the number of poverty-level families The City continues to support and implement the goals, policies, and programs, as noted in the City's Housing Element of the General Plan and the Consolidated Plan. These documents are designed to provide for adequate, safe, and affordable housing to all segments of the population. The goals outlined in these documents include: • Provide an adequate supply of housing to meet the City's need for a variety of housing types to meet diverse socio-economic needs. • Ensure equal housing opportunities for all existing and future City residents. • Ensure a reasonable balance of rental and owner-occupied housing. • Preserve the existing supply of affordable housing. • Conserve, maintain, rehabilitate, and/or replace existing housing in neighborhoods that are safe, healthful, and attractive, in accordance with the adopted Land Use policy. H. Evaluate and reduce lead-based paint hazards The City's Consolidated Plan notes that there does not appear to be a large number of housing units in the City are at risk of lead-based paint hazard; however, to comply with Title X of the Housing and Community Development Act of 1992, the City has incorporated the following policies into its housing programs: • Review existing building, housing, and rehabilitation codes to assure lead-based paint hazard reduction is incorporated. • Require testing and hazard reduction in conjunction with rehabilitation. • Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. I. Other Actions 1. General The five-year Consolidated Plan for the City of Tustin contains a housing and homeless needs assessment which describes estimated housing needs for low- and moderate-income residents, special needs populations, and the homeless. During the 2010-11 funding year, the City of Tustin will undertake the following actions to address obstacles to meeting underserved needs including the following goals: ~ Foster and maintain affordable housing The City will continue to use available Federal, State, and local resources to foster and maintain affordable housing through housing rehabilitation programs for multi- and single-family dwelling units and provide and/or maintain homeownership opportunities Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-32 through various homebuyer assistance programs. ~ Remove barriers to affordable housing As stated in the Consolidated Plan, the City has adopted indirect assistance programs to address negative impacts created by barriers to affordable housing. The programs listed below are identified as the means by which the City of Tustin will address barriers to affordable housing during the 2010-11 funding year. - Second Units - Deed Restrictions - Fees, Extractions, and Permit Procedures - Environmental Constraints - Pre-application Conferences - Shared Housing - Permit Processing and Coordination - Section 8 Rental Assistance - Housing Referral Program - Density Bonus Program - Mixed Use Zoning ~ Develop institutional structure The City will continue to be involved in "network-building" activities with governmental, for-profit, and nonprofit organizations. Activities include attendance at quarterly Orange County Housing Authority Advisory Committee meetings. Tustin will also contract with and fund a fair housing service provider. Further, the City will continue to encourage and participate in efforts to work collectively and cooperatively with other Orange County jurisdictions. ~ Enhance coordination between public and private housing and social service agencies The City of Tustin does not own or operate any public housing Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-33 projects. However, the City will continue to support and encourage efforts of the Orange County Housing Authority to coordinate between private housing and social service agencies. ~ Foster public housing improvements and resident incentives While the City of Tustin does not own or operate any public housing projects, Tustin will continue to support the efforts of the Orange County Housing Authority to provide housing assistance to lower income tenants. ~ Use available Federal, State, and local financial resources to meet underserved needs. To meet the needs of the City's underserved population, efforts will be made to: • Coordinate with Federal, State, and local agencies to provide appropriate assistance to residents. • Coordinate with public service providers to promote adequate services to residents. • Work to provide physical areas and neighborhood moderate-income areas. J CDBG Program -Specific Requirements improvements to slum and blighted s with concentrations of low- and A description of all CDBG funds expected to be available during the 2010-11 program year is provided in Table IV-A (Table 1). No program income has been received from the previous program year; none is anticipated for 2010-11. The City has no urban renewal settlements, grant funds returned to the line of credit, or income from float-funded activities. Citizen Participation and Consultation HUD requires that each jurisdiction encourage its citizens to participate in the development of the Consolidated Plan and subsequent Action Plan. To ensure that this opportunity is provided, the City of Tustin adopted its Citizen Participation Plan in 1995 and revised it in January of 2003. In April 2007, the City Council amended the City's Citizen Participation Plan to shift Citizen Participation Committee duties to the Tustin Community Foundation. Foundation board members were charged with the task to review public service project funding applications and to develop athree-year funding recommendation for the City Council. The Tustin Community Foundation represents a broad cross Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-34 section of City of Tustin residents and has the ability to leverage CDBG funds with private funds to bolster the effectiveness of public service projects. The Citizen Participation Plan set forth policies and procedures for citizen interaction in planning, implementation, and assessment of the City of Tustin Consolidated Plan/Action Plan. The objectives of the Citizen Participation Plan are: 1. To encourage citizens, particularly residents of low- and moderate-income living in areas eligible for the use of program funds, including minorities, non-English speaking persons, and persons with mobility, visual, or hearing impairments, to participate in the development of the Consolidated Plan/Action Plan. 2. To assure that citizens are furnished with appropriate information about the Consolidated Plan and its various component programs. 3. The City started the Citizen Participation process by publishing a Notice of Funding Availability (NOFA) in the local newspaper seeking Request for Funding Applications for. the 2008-09, 2009-10 and 2010-11 CDBG Program Years. In addition, the City also sent the NOFA to 80 nonprofit organizations. The City received 13 applications requesting $809,947 in funding (FY 2008-09 $265,499; FY 2009-10 $269,949; FY 2010-11 $274,499). The 2010-11 Action Plan covers programs and projects to be undertaken during the respective year. To develop the City's 2010-11 Action Plan, two public hearings were conducted. The first public hearing was held by the City Council on February 16, 2010. The purpose of the first hearing was evaluate the performance of the approved public service activities for continuation of funding in Year 3. A second public hearing was held on April 20, 2010 by the City Council. The purpose of the second hearing was for the City Council to review the Draft Action Plan, including public service and nonpublic service activities, and approve a funding allocation for submission to HUD. All notices for the above hearings were published in the local newspaper at least 10 days prior to the hearing date and notices were posted at City Hall and at the library. All citizens were encouraged to participate, and those who required special accommodation were accounted for. The City also, as required by HUD, published a notice of the availability of a draft Consolidated Plan and Action Plan, and the Analysis of Impediments to Fair Housing Choice, for public review. The thirty (30) day public review and comment period began on March 1, 2010, and ended on Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-35 March 30, 2010. No comments were received from this public review. K. Communication The City of Tustin provides its Citizen Participation Committee with a package of CDBG materials and conducted a workshop to explain the CDBG process and procedures. The City also provides maps and tables to assist citizens in understanding the CDBG overall goals and objectives. The City, with the help of HUD, posts its Executive Summary on the HUD web page as a tool for interested citizens to understand the type of projects funded by the CDBG program. Information related to the CDBG program is available on the City's Webpage. The City prepares a performance report at the end of the program year utilizing the IDIS program. L. Community Vision The City delineates the Community's vision in its Five-Year (2010-2011) Consolidated Plan. The Consolidated Plan outlines community priority needs and its short-term and long-term goals and objectives. A copy of the Consolidated Plan is available to the public upon request at no cost. The City updates this Consolidated Plan as the community's vision and goals change throughout the years. The City annually submits an Action Plan to HUD as an application to receive CDBG funding. Within the Action Plan, the City provides benchmarks on each activity funded. These benchmarks will be utilized to measure the City's progress in achieving the stated goals and vision M. Strategies As delineated in the Consolidated Plan, the City strives to address various housing and community needs with limited resources. Section B of this Action Plan describes the activities and strategies that the City will undertake during the program year to address affordable housing issues. Section E describes the activities that the City will undertake to address the needs of the homeless. Finally, Section I indicates the strategies that the City will undertake to address obstacles in meeting the under-served needs, foster and maintain affordable housing, remove barriers to affordable housing, evaluate and reduce lead-based paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance the coordination between the public and private housing and social services agencies. N. Action Plan Each year the City prepares an Action Plan that not only functions as an application for CDBG funding to HUD, but it is also provided as a tool to provide the public with information on how the City utilizes its entitlement grant for the program year. The Action Plan provides a description of each activity, the Tustin 2010-2015 Consolidated Plan Section IV -Action Plan IV-36 amount of funding, and the projected accomplishment. All applications received by the City in response to its call for applications are summarized in the Proposed Project Table, Table IV-D of the Action Plan. O. Integrated Approach to Planning and Development Utilizing the Consolidated Plan process, the City was able to identify community needs, goals, and objectives. The City also was able to identify available resources and develop strategies to effectively utilize these limited resources. The Consolidated Plan provides the City with goals and identifiable benchmarks that the can be used to assess accomplishments at the end of program year. Each year the City invites public participation in identifying the needs of the community and prioritizing them in the order of high, medium, low, or no priority. With these identified needs, the City developed its Consolidated Plan/Action Plan and established activities to address these needs utilizing available resources. P. Monitoring System To ensure program compliance, the City conducts a regular on-site monitoring visit to each subrecipient. The City established this monitoring procedure to ensure that each subrecipient is carrying out the eligible activity, utilizing appropriate accounting methods, and verifying information provided to the City within the quarterly performance report. The on-site monitoring visit also provides the City with an opportunity to identify potential problem areas and to provide subrecipients with technical assistance as needed. The City utilizes a monitoring checklist form as a standard form to monitor the subrecipients. In addition, all projects are monitored for compliance with all State and Federal requirements including, but not limited to, eligibility, environmental impacts and labor regulations. Tustin 2010-2015 Consolidated Plan Section IV -Action Plan I V-37 ATTACHMENT B TABLE OF PUBLIC SERVICE PROJECTS PERFORMANCE OUTCOME AND YEAR 3 FUNDING RECOMMENDATION O 0 N Of O O N W H Q G! 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N C ,N N N Q n O C ~o R ~ v~ c a~ i s o •- c~ ~~ I '~ •~ 'U O ~ I'I O Y ~ O ~ Ip O ~ p~ O ~ i = O a ~~ u~ ~I~ ~ o~Cc~~ o a` ~ o 0 rn ca APPENDICES Tustin 2010-2015 Consolidated Plan Appendix A. Glossary of Terms Tustin 2010-2015 Consolidated Plan Appendix GLOSSARY OF TERMS Affordable Housing: Affordable housing is generally defined as housing where the occupant is paying no more than 30 percent of gross income for gross housing costs, including utility costs. AIDS and Related Diseases: The disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome. Alcohol/Other Drug Addition: A serious and persistent alcohol or other drug addition that significantly limits a person's ability to live independently. Area of Low-Income Concentration: For the City of Tustin, these areas have been defined in Section I -Community Profile as those 2000 Census tracts/block groups that meet the uncapped area benefit as defined by HUD. Area of Racial/Ethnic Minority Concentration: For the City of Tustin, these areas have been defined in Section I -Community Profile as those 2000 Census tracts where a minority population; that being a race or ethnic group with a minority representation City-wide, has a percentage equal to or greater than the percentage representation City-wide. Assisted Household or Person: For the purpose of identification of goals, an assisted household or person is one which during the period covered by the annual plan will receive benefits through the Federal funds, either alone or in conjunction with the investment of other public or private funds. The program funds providing the benefit(s) may be from any funding year or combined funding years. A renter is benefited if the person takes occupancy of affordable housing that is newly acquired, newly rehabilitated, or newly constructed, and/or receives rental assistance through new budget authority. An existing homeowner is benefited during the year if the home's rehabilitation is completed. A first-time homebuyer is benefited if a home is purchased during the year. A homeless person is benefited during the year if the person becomes an occupant of transitional or permanent housing. Anon-homeless person with special needs is considered as being benefited, however, only if the provision of supportive services is linked to the acquisition, rehabilitation, or new construction of a housing unit and/or the provision of rental assistance during the year. Households or persons who will benefit from more than one program activity must be counted only once. To be included in the goals, the housing unit must, at a minimum, satisfy the HUD Section 8 Housing Quality Standards (see 24 CFT section 882.109). Page 1 Certification: A written assertion based on supporting evidence, that must be kept available for inspection by HUD, by the Inspector General of HUD, and by the public. The assertion shall be deemed to be accurate unless HUD determines otherwise, after inspecting the evidence and providing due notice and opportunity for comment. Committed: Generally means there has been a legally binding commitment of funds to a specific project to undertake specific activities. Consolidated Plan (or "the plan"): The document that is submitted to HUD that serves as the planning document (comprehensive housing affordability strategy and community development plan) of the jurisdiction and an application for funding under any of the Community Planning and Development formula grant programs (CDBG, ESG, HOME, or HOPWA), which is prepared in accordance with the process described in Part 91 of the Code of Federal Regulations. Cost Burden > 30%: The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data available from the U.S. Census Bureau. Cost Burden > 50% (Severe Cost Burden): The extent to which gross housing costs, including utility costs, exceed 50 percent of gross income, based on data available from the U.S. Census Bureau. Economic Independence and Self-Sufficiency Programs: Programs undertaken by Public Housing Agencies (PHAs) to promote economic independence and self- sufficiency for participating families. Such programs may include Project Self- Sufficiency and Operation Bootstrap programs that originated under earlier Section 8 rental certificate and rental voucher initiatives, as well as the Family Self-Sufficiency program. In addition, PHAs may operate locally developed programs or conduct a variety of special projects designed to promote economic independence and self- sufficiency. Elderlv Household: For HUD rental programs, a one or two person household in which the head of the household or spouse is at least 62 years of age. Elderlv Person: A person who is at least 62 years of age. Emergency Shelter: Any facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary shelter for the homeless in general or for specific populations of the homeless. Existing Homeowner: An owner-occupant of residential property who holds legal title to the property and who uses the property as his/her principal residence. Page 2 Extremely Low-Income Family: Family whose income is between 0 and 30 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 30 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Family: See definition in 24 CFR 812.2 (The National Affordable Housing Act definition required to be used in the CHAS rule differs from the Census definition). The Bureau of Census defines a family as a householder (head of household) and one or more other persons living in the same household who are related by birth, marriage or adoption. The term "household" is used in combination with the term "related" in the CHAS instructions, such as for Table 2, when compatibility with the Census definition of family (for reports and data available from the Census based upon that definition) is dictated. (See also "Homeless Family.") Family Self-Sufficiency (FSS) Program: A program enacted by Section 554 of the National Affordable Housing Act which directs Public Housing Agencies (PHAs) and Indian Housing Authorities (IRAs) to use Section 8 assistance under the rental certificate and rental voucher programs, together with public and private resources to provide supportive services, to enable participating families to achieve economic independence and self-sufFciency. Federal Preference for Admission: The preference given to otherwise eligible applicants under HUD's rental assistance programs who, at the time they seek housing assistance, are involuntarily displace, living in substandard housing, or paying more than 50 percent of family income for rent. (See, for example, 24 CFR 882.219.) First-Time Homebuyer: An individual or family who has not owned a home during the three-year period preceding the HUD-assisted purchase of a home that must be used as the principal residence of the homebuyer, except that any individual who is a displaced homemaker (as defined in 24 CFR 92) or a single parent (as defined in 24 CFR 92) may not be excluded from consideration as a first-time homebuyer on the basis that the individual, while a homemaker or married, owned a home with his or her spouse or resided in a home owned by the spouse. FmHA: The Farmers Home Administration, or programs it administers. For Rent: Year round housing units which are vacant and offered/available for rent. (U.S. Census definition). For Sale: Year round housing units which are vacant and offered/available for sale only. (U.S. Census definition). Page 3 Frail Elderly: An elderly person who is unable to perform at least 3 activities of daily living (i.e., eating, dressing, bathing, grooming, and household management activities). (See 24 CFR 889.105). Group Quarters: Facilities providing living quarters that are not classified as housing units. (U.S. Census definition). Examples include: prisons, nursing homes, dormitories, military barracks, and shelters. HOME: The HOME Investment Partnerships Program, which is authorized by Title II of the National Affordable Housing Act. Homeless Family With Children: A family composed of the following types of homeless persons: at least one parent or guardian and one child under the age of 18, a pregnant woman, or a person in the process of securing legal custody of a person under the age of 18. Homeless Person: A youth (17 years or younger) not accompanied by an adult (18 years or older) or an adult without children, who is homeless (not imprisoned or otherwise detained pursuant to an Act of Congress or a State law), including the following: 1) An individual who lacks a fixed, regular, and adequate nighttime residence; and 2) An individual who has a primary nighttime residence that is: (i) A supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill); (ii) An institution that provides a temporary residence for individuals intended to be institutionalized; (iii) A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. Homeless Subpopulations: Include but are not limited to the following categories of homeless persons: severely mentally ill only, alcohol/drug addicted only, severely mentally ill and alcohol/drug addicted, fleeing domestic violence, youth, and persons with HIV/AIDS. HOPE 1: The HOPE for Public and Indian Housing Homeownership Program, which is authorized by Title IV, Subtitle A of the National Affordable Housing Act. HOPE 2: The HOPE for Homeownership of Multifamily Units Program, which is authorized by Title IV, Subtitle B of the National Affordable Housing Act. Page 4 HOPE 3: The HOPE for Homeownership of Single Family Homes Program, which is authorized by Title IV, Subtitle C of the National Affordable Housing Act. Household: One or more persons occupying a housing unit (U.S. Census definition). See also "Family." Housing Problems: Households with housing problems include those that: (1) occupy units meeting the definition of Physical Defects; (2) meet the definition of overcrowded; and (3) meet the definition of cost burden greater than 30 percent. Table 1C requests nonduplicative counts of households that meet one or more of these criteria. Housing Unit: An occupied or vacant house, apartment, or a single room (SRO housing) that is intended as separate living quarters. (U.S. Census definition). HUD: The United States Department of Housing and Urban Development. Institutions/Institutional: Group quarters for persons under care or custody. (U.S. Census definition). Jurisdiction: A state or unit of general local government. Large Family: Family of five or more persons. Large Related: A household of five or more persons which includes at least one person related to the householder by blood, marriage or adoption. Lead-Based Paint Hazard: Any condition that causes exposure to lead from lead- contaminated dust, lead-contaminated soil, lead-contaminated paint that is deteriorated or present in accessible surfaces, friction surfaces, or impact surfaces that would result in adverse human health effects as established by the appropriate Federal agency. (Residential Lead-Based Paint Hazard Reduction Act of 1992 definition). LIHTC: (Federal) Low Income Housing Tax Credit. Low-Income Families: Low-income families whose incomes do not exceed 50 percent of the median income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. NOTE: HUD income limits are updated annually and are available from local HUD ofFces (This term corresponds to very low-income households in the CDBG Program.) Page 5 Middle-Income Family: Family whose income is between 80 percent and 95 percent of the median income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 95 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. NOTE: HUD income limits are updated annually and are available from local HUD offices (This term corresponds to the moderate-income household in the CDBG Program and to the "moderate income family" under the CHAS statute, 42 U.S.C. 12705). Moderate-Income Family: Family whose income does not exceed 80 percent of the median income for the area, as determined by HUD, with adjustments for smaller or larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Non-Elderly Household: A household which does not meet the definition of an "Elderly Household," as defined above. Non-Homeless Persons with Special Needs: Includes frail elderly persons, persons with AIDS, disabled families, and families participating in organized programs to achieve economic self-sufficiency. Non-Institutional: Group quarters for persons not under care or custody. (U.S. Census definition used). Occupied Housing Unit: A housing unit that is the usual place of residence of the occupant(s). Other Household: A household of one or more persons that does not meet the definition of a Small Related household, Large Related household or Elderly Household. Other Income: Households whose incomes exceed 80 percent of the median income for the area, as determined by the Secretary, with adjustments for smaller and larger families. Other Low-Income: Households whose incomes are between 51 percent and 80 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. (This term corresponds to moderate-income in the CDBG Program). Page 6 Other Vacant: Vacant year round housing units that are not For Rent or For Sale. This category would include Awaiting Occupancy or Held. Overcrowded: A housing unit containing more than one person per room. (U.S. Census definition). Owner: A household that owns the housing unit it occupies. (U.S. Census definition). Person With a Disability: A person who is determined to: 1) Have a physical, mental or emotional impairment that: (i) is expected to be of long-continued and indefinite duration, (ii) substantially impedes his or her ability to live independently, and (iii) is of such a nature that the ability could be improved by more suitable housing conditions; or (2) Have a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-6006); or (3) be the surviving member or members of any family who had a disability at the time of his or her death. Physical Defects: A housing unit lacking complete kitchen or bathroom (U.S. Census definition). Jurisdictions may expand upon the Census definition. Poverty Level Family: Family with an income below the poverty line, as defined by the Office of Management and Budget and revised annually. Predominantly Low- and Moderate- Income Neighborhoods: Neighborhoods of which fifty-one (51) percent or more of the residents are low- and moderate-income persons. Primary Housing Activity: A means of providing or producing affordable housing -- such as rental assistance, production, rehabilitation or acquisition -- that will be allocated significant resources and/or pursued intensively for addressing a particular housing need. (See also, "Secondary Housing Activity.") Project-Based (Rental) Assistance: Rental Assistance provided for a project, not for a specific tenant. Tenants receiving project-based rental assistance give up the right to that assistance upon moving from the project. Public Housing CIAP: Public Housing Comprehensive Improvement Assistance Program. Public Housing MROP: Public Housing Major Reconstruction of Obsolete Projects. Rent Burden > 30% (Cost Burden): The extent to which gross rents, including utility costs, exceed 30 percent of gross income, based on data published by the U.S. Census Bureau. Page 7 Rent Burden > 50% (Severe Cost Burden): The extent to which gross rents, including utility costs, exceed 50 percent of gross income, based on data published by the U.S. Census Bureau. Rental Assistance: Rental assistance payments provided as either project-based rental assistance or tenant-based rental assistance. Renter: A household that rents the housing unit it occupies, including both units rented for cash and units occupied without cash payment of rent. (U.S. Census definition). Renter Occupied Unit: Any occupied housing unit that is not owner occupied, including units rented for cash and those occupied without payment of cash rent. Rural Homelessness Grant Program: Rural Homeless Housing Assistance Program, which is authorized by Subtitle G, Title IV of the Stewart B. McKinney Homeless Assistance Act. Secondary Housing Activity: A means of providing or producing affordable housing -- such as rental assistance, production, rehabilitation or acquisition -- that will receive fewer resources and less emphasis than primary housing activities for addressing a particular housing need. (See also, "Primary Housing Activity.") Section 215: Section 215 of Title II of the National Affordable Housing Act. Section 215 defines "affordable" housing projects under the HOME program. Service Needs: The particular services identified for special needs populations, which typically may include transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, and other services to prevent premature institutionalization and assist individuals to continue living independently. Severe Cost Burden: See Cost Burden > 50%. Server Mental Illness: A serious and persistent mental or emotional impairment that significantly limits a person's ability to live independently. Sheltered: Families and persons whose primary nighttime residence is a supervised publicly or privately operated shelter, including emergency shelters, transitional housing for the homeless, domestic violence shelters, residential shelters for runaway and homeless youth, and any hotel/motel/apartment voucher arrangement paid because the person is homeless. This term does not include persons living doubled up or in overcrowded or substandard conventional housing. Any facility offering permanent housing that is not a shelter and its residents are not homeless. Page 8 Small Related: A household of 2 to 4 persons which includes at least one person related to the householder by birth, marriage, or adoption. Substandard Condition: Unit that is substantially lacks of any of the following: roof, walls and windows that do not leak; working plumbing or gas facilities; water supply of hot and cold running water connected to a sewage disposal system; heating system that works; electrical lighting and wiring in working order; building and grounds kept clean, sanitary, free from garbage, rodents, and vermin; adequate number of garbage cans or dumpster in good repair; floors, stairways and railing in good repair; and other standards established by the state or local codes. Substandard Suitable for Substantial Rehabilitation: Units with conditions that are found to be substandard are where the value of the units constitute 25 percent of the after rehabilitation value of the units, inclusive of the land value. Substantial Amendment: A major change in an approved housing strategy. It involves a change to the five-year strategy, which may be occasioned by a decision to undertake activities or programs inconsistent with that strategy. Substantial Rehabilitation: Rehabilitation of residential property at an average cost for the project in excess of $25,000 per dwelling unit. Supportive Housing: Housing, including Housing Units and Group Quarters, that have a supportive environment and includes a planned service component. Supportive Service Need in FSS Plan: The plan that PHAs administering a Family Self-Sufficiency program are required to develop to identify the services they will provide to participating families and the source of funding for those services. The supportive services may include child care; transportation; remedial education; education for completion of secondary or post secondary schooling; job training, preparation and counseling; substance abuse treatment and counseling; training in homemaking and parenting skills; money management, and household management; counseling in homeownership; job development and placement; follow-up assistance after job placement; and other appropriate services. Supportive Services: Services provided purpose of facilitating the independence management, medical or psychological transportation, and job training. to residents of supportive housing for the of residents. Some examples are case counseling and supervision, childcare, Tenant-Based (Rental) Assistance: A form of rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. The assistance is provided for the tenant, not for the project. Total Vacant Housing Units: Unoccupied year-round housing units. (U.S. Census definition). Page 9 Transitional Housing: A project that is designed to provide housing and appropriate supportive services to homeless persons to facilitate movement to independent living within 24 months, or a longer period approved by HUD. Unsheltered: Families and individuals whose primary nighttime residence is a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings (e.g., streets, parks, alleys). Vacant Awaiting Occupancy or Held: Vacant year round housing units that have been rented or sold and are currently awaiting occupancy, and vacant year round housing units that are held by owners or renters for occasional use. (U.S. Census definition). Vacant Housing Unit: Unoccupied year-round housing units that are available or intended for occupancy at any time during the year. Worst-Case Needs: Unassisted, very low-income renter households who pay more than half of their income for rent, live in seriously substandard housing (which includes homeless people) or have been involuntarily displaced. Year Round Housing Units: Occupied and vacant housing units intended for year round use. (U.S. Census definition). Housing units for seasonal or migratory use are excluded. Page 10 B. City of Tustin Census Tracts Tustin 2010-2015 Consolidated Plan Appendix r ~ i N F- L~ r N O C ~_ ~ U U ~- ~., a ~-~ L :, ^•, a+ L ~ c: -a ~ ~ ' ~ a .,, ti ~ _ _ r Y ti ~ ~4 ~'~. w~ ~A .~' ~ ~~ r~ - -• + ,,J ^ a •~ ° ~ ~ f - r ~ ; r _. . ` 1 ~ ~ ~ -~ e f a 4~ iI `_ s.7 a ~. ' - - e1 ~ N ~ ~, ~ C F - ~ -i ~ ' !1 ~ . ~ ~ _~ is ' .. ~ ! ~ ct y ' c !..... - o J » ~ , m _ Q b ,w _s ' t U _ .- " ~ r !~ ~ bJ ~ G3 `~ '' ~ ,.y ,'` 'E ~ ,+~ t ~ ~~ ...i ..; K Q `n o - ~ ~ ~ ~ ~ ~S u u x ~ ` ` a d :± u d d u ~ '' ~ v u ~ ~ .., ~ 3~ «, 3~ ~ n r , J d ~ ~ ~ ~ i ~ U N - V V V •~ M V1 ~~,5 8 8 8 8 8 ~ ~ „ g ~~ rA ~ L d C. Affordability Gap Analysis Tustin 2010-2015 Consolidated Plan Appendix City of Tustin Comprehensive Affordable Housing Strategy Appendix B Affordability Gap and leveraged Financing Analysis February 1 S, 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®DRAConwltanls.com www.draconsultants.com Southern California Nora Lake-Brown, Principal 3941 Hendrix St Irvine, CA 92614-6637 Phone: 949-559-5650 Fax: 949-559-5706 c-mail: Nora00RAConsultants.com www.draconsu Itants.com Table of Contents PAGE 1.0 Executive Summary .................................................................................... 1 2.0 Housing Prototypes .................................................................................... 9 3.0 Financing Scenarios, Income Targeting and Affordable Housing Cost......... 9 3.1 Financing Scenarios ................................:........................................... 9 3.2 Target Income 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 CIM Group ............................................................................... 19 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 Affordability Gap and leveraged Financing Analysis Page i 6.0 Per Unit Affordability Gaps ........................................................................ 7.0 Renter Leveraged Financial Analysis ........................................................... 7.1 Hard Construction Costs ..................................................................... 7.2 Eligible Basis and Tax Credit Equity Calculations ................................. 7.3 Income Targeting Scenarios, Occupancy Standards and Affordable Rents .......................................................................... 7.4 Operating Costs and Vacancy ............................................................. Attachment A: Ownership Affordability Gap Analysis Tables Attachment B: Renter Affordability Gap Analysis Tables Attachment C: Leveraged Financial Analysis, Renter Prototype 29 32 32 32 33 34 City of Tustin Affordability Gap and Leveraged Financing Analysis Page li 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 .......................................................................... 11 6. Affordable Housing Cost Definitions .......................................................... 12 7. Current Monthly Utility Allowances, County of Orange .............................. l 4 8. Affordable Net Rents .................................................................................. 15 9. Affordable Monthly Housing Cost .............................................................. 15 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, Rental 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 Ci~ of Tustin Affordability Gap and everaged 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 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 fora 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 prototype, 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 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 (AMI), 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 following three income levels: City of Tustin Affordability Gap and Leveraged Financing Analysis Page Z 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 pprivate 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, generally reduces the gap on a dollar for dollar basis. For rental developments, the use of the Low Income Housing Tax Credit Program and/or tax-exempt bonds is more complicated, because of the formulas for calculating tax credits and the specific income targeting required. Therefore, for the rental prototype, we have examined the following leverage scenarios: 1. 9% Low Income Housing Tax Credits (Federal only)t; 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 State tax credits. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 3 Table 1 Homeowner Per Unit Subsidy Requirements' City of Tustin 2008 Very Low Low Moderate Prot~De/Unit Bedroom Count Income Income' Income' Owner Prototype #1' Attached Townhome Two Bedroom $366,000 $322,400 S195,500 Three Bedroom 5387,800 $339,400 5198,400 Four Bedroom $426,800 5374,600 5222,300 Average 5393,500 5345,500 $205,400 Owner Prototype #Z~ Stacked Flat Condominium One Bedroom $258,600 $219,900 5107,100 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 5268,800 $223,100 $89,900 Owner Prototype #3' High Density Condominium One Bedroom $407,500 $368,800 5256,000 Two Bedrooom 5432,500 5389,000 5262,100 Three Bedroom $542,000 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 $491,700 5453,000 $340,200 Two Bedrooom 5537,400 $493,900 5366,900 Three Bedroom $595,000 $546,600 5405,600 Average $541,300 $497,800 5370,900 Source: David Paul Rosen & Associates City of Tustin Affordability Gap and Le~reraged Financing 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 110 percent of AMI, adjusted for household size. Average moderate income affordable home purchase price is $249,723. s Owner Prototype r11 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 rr2 average unit size is 1,142 square feet. Average per unit development cost is $339,591. 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 cost is $558,617. Per unit development costs are adjusted by unit size/bedroom count. ° Owner Prototype !t4 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/bedroom count. City of Tustin Affordability Cap 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 Qne Bedrooms Two Bedroomb Three Bedroom' Four Bedrooms Average Renter Prototype Stacked Flat Apartments Very Low Low Moderate Income Income' Income' $311,300 $294,600 $211,400 $348,000 $321,800 $402,000 $329,300 $301,000 $3 79, 600 $23 5, 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. s 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 5382,799. ° 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 Per Unit Subsidy Requirement Rental Housing Prototype: Slacked Flat Apartments Leveraged Financing Scenarios City of 1Lstin 2008 Leveraged Financing Scenarios 9°~6 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 557,000 5140,100 ~ 109,600 Clty of Tustin Affordablllty Cap and Leveraged Financing Analysis 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 resident population, product and construction type, density, number of units, unit mix by bedroom count, and unit size. 3.0 Financing Scenarios, Income Targeting and Affordable Housing Cost 3.1 Financing Scenarios DRA first modeled the owner and renter housing prototypes under a conventional 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 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 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 COUNT NUMBER OF STORIES CONSTRUCTION TYPE DENSITY (DU'S/Acre) FLOOR AREA RATIO (FAR) lAND AREA Uan) UNITS BY BR COUNT One Bedroom Rvo Bedroom Three Bedroom rwr Bedroom UNIT SIZE (Nd Square FeeO One Bedroom Two Btdroan Three Bedroom Four Bedroae Atroraae Sgaan Feet BLDG. SQ. FEET Nd LlrlttR Arp CommtmKy Space Total Net BWy Squaw Fed TYPE OF PARKING NO.OF PKG. SPACES Cuage Carport Puking Structure 'OTAL SPACES Table 4 Owner Howlrts Prototype Projec6 City of Tustin 2008 Owner 2 Chvrler 3 Owner 4 Stacked Flat High Density Mixed Uu, 234 Units 325 Unlts 400 Units 20 Units R3 R3 PC C2 P 2.5 Storks 2 Stories 4 Stories 3 Storks (2 Stories Ratd.) Type V Type V Type V Type V Wood Frame Wood Frame Wood Frame Wood Frame 18.0 25.0 45-50 29.0 0.5 0.7 1.5 1.5 13.00 Acres 13.00 Acres 8.00 Acres 0.69 Acres 0 75 100 4 90 100 125 6 90 100 125 10 54 50 50 0 WA 950 1,000 1,700 1,050 1,050 - 1,150 1,400 1,300 1, 200 1, 650 1, 750 1,700 1,500 1,800 WA 1,196 1,1 ~1 1,350 1,515 303,300 371,250 540,000 30,300 2,soo z,ooo 0 0 305,800 373,250 540,000 30,300 Garage Carport Parking5tructure Garage 468 0 0 40 0 650 0 0 59 82 100 10 0 0 700 0 527 732 800 50 City of l~~ln Alfo.dabil eY Gap and lavenged F:nancind Ana'yfif Page 10 Tab4 s ReAal Housing Prototyp! ~h' dTtaNin 20011 PROTOTYPE Ranter Prototype Stacked Flat nb UNIT COUNT 325 UnMa TYPE OF PRODUCT Stacked flak 20NING R3 NUMBER OF STORIES 2 CONSTRUCTION TYPE Type V Wood Frame DENSITY (DU'SlAae) 25.0 FLOOR AREA RATlO (FAR) 0.6 LAND AREA (Aorul 13,00 Acres UNRS BY RR COUNT Oar Bedroar 73, TMo Redroorn 100 Throe Bedroom 100 Four Bedroan. SO Managte'a Unlb (Rvo Badreo~ 2 11N1T SIZE (N!1 Squan Feet) One BeeYoan 750 11eo Bedroae 950 TFnee Bedroom 1,050 Far Bedroan 1,250 Aterag! Square Felt 9d2 BLDG. s~, FEEr Nat UringArea 319,1 SO ConraueRy SNQ 0 ToW We! Rldg. Square Feat 319,ISO TYPE OF PARKING Parking Stratton NO.OF PARKING SPACES Garage 0 CsrpoR 0 OPlu el Prlring 54ucWre 650 TOTAL SPANS 731 Clly of lln~ln AFonlrbiNy Gp ^nd latnyad Fl'anrlr~ An^lytiir P~'^ 71 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 AMI) 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 Tyne of Housing Rental wn r hi Not Analyzed 30% of 50% AMI 30% of 60% AMI 30% of 110% AMl 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 3.5 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 1, 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, Uash 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. Ciry 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 $b8 3 Bedroom $98 4 Bedroom $109 Owner Households Bedroom Size Monthly Utili Allowancez 1 Bedroom $93 2 Bedroom $110 3 Bedroom $l48 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. t Includes electric utilities (heating, cooking, water heating and basic electric). ~ 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 14 Table 8 Affordable Net Rents' City of Tustin 2008 Unit Size (No. of Bedrooms) Very Low 50°~ AMl Low 80go AMI Moderate 1209° 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 z Gty of Tustin 2008 California Department of Housing and Community Development published 2007 low and median income limit. Owner affordable housing costs are calculated assuming an occupancy standard of one person per bedroom plus one and 30°Ao of gross income spent on housing for low income households and 359'0 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 1 U.S. Department of Housing and Urban Development published 2007 very low income limits, adjusted proportionally for 609'0 of percentage of AMI category. Cross rents are calculated assuming an «cupancy standard of 1 person per bedroom plus one, consistent with California Redevelopment Law. Net rents are calculated assuming 3096 of gross income spent on rent and then deducting the utility allowances from Table 7. 4,0 Development Costs Development costs include: land acquisition, hard costs, hard cost contingency, on- and off-site improvements, development fees, soft or indirect costs, financing costs, sales/marketing, and developer profit, overhead and general conditions. Hard costs include building and parking construction costs. Soft or indirect costs include architectural and engineering costs, property taxes and insurance. 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. !n addition, about half of Jamboree's bids assume payment of prevailing wages. Of Jamboree's non-prevailing wage bids, the hard costs range from $94 to $185 per square foot, with the average cost at 5155 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 City of Tustin Affordability Gap and Leveraged Financing Analysis Page 16 to 5342 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 development costs: • Tom Sakai, Springbrook Advisors • Scott Young, Nevis Homes • Scott Newcomb, The Olson Company • Jerry Trimble and Michael Wong, Keyser Marston Associates • Justin Rimel, CIM Group • Tom Grable, William Lyon Homes • Ian Vickers, Sun Ca! 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. City of Tustin Affordability Gap and leveraged Financing Analysis Page 17 4.2.] 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 a2, Stacked Flat Condominiums wish 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 .74, 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 18 For a stacked flat product with 50 dwelling units to the acre, KM,4 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. All of KMA's prototypes assume soft costs to be equal to 18.5 percent of hard costs. 4.2.5 CIM 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. C-f 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 $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 Cal 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. City of Tustin Affordability Cap 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 $200 per square foot while those with podium parking have hard costs around $225 per square foot 4.2.8 )ohn Laing Homes John Laing Homes last developed housing in Tustin two years ago but has several current projects in Irvine. These include a row townhouse development with a density of 16.5 units per acre, and two townhouse and condominium flats combination projects at 17.5 and 16.3 units per acre. The row townhouse project has hard costs of $82 per square foot. The two townhouse and flat combination projects have hard costs of $84 and $87 per square foot. In Irvine, developers are most commonly purchasing partially-finished lots, according to Mr. 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 Appraisaf prepared an Appraisal Report for the City of Tustin, Community Facilities District No. 66-1, Tustin Legacy/Columbus Villages in May 2007. Of the 16 Tustin Legacy land sales analyzed in the appraisal, four parcels have comparable housing type and density to the Owner Proto 1 examined in this study. The land prices and density of these parcels are shown in Ta le 10 below. Table 10 Tustin Legacy Comparable Land Prices City of Tustin 2008 Land Sale Data Land Cost, per square foot Lot Density, units per gross site acre No. 1 $53 / SF 16.6 units/acre No. 6 $46 /SF 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 costs for the various housing product types represented by the housing prototypes. The land acquisition cost assumptions are shown in Table 11. Table 11 Per Unit Land Acquisition Cost Assumptions by Prototype City of Tustin 2008 Prototype Land Cost Per Dwelling Land Cost Per Square Foot Unit Gross Site Area Owner #1 Attached Townhome $109,000 $45 Owner #2 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 School District fees, and building permit and plan check fees. Current fee estimates for each housing prototype were provided by the Tustin Community Redevelopment Agency and the Community Development Department Planning Division. Estimates of the development impact fees for the housing prototypes are detailed in Table 12 for the owner prototypes and Table 13 for the renter prototype. Fees for Owner Prototype #4, Mixed Use Condominiums, include only those that are applicable to the residential portion of the development. For those fees that are assessed project-wide, the fees are pro-rated based on the proportion of the total project that is dedicated to residential use. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 21 Tabk t2 De-elopment Procenbtg and iwtp~ct Fee Assumptioee Ownarr HwmK Pro6otypta City ot'Mdn loos Prototype t4: Prototype fl: Prototype 02: Prototype g3: Mixed Use Amched Stacked Flat Hlgh Denalry Ground Floc Tnwnhnmes Condos Condos RebHil) Number o(Urda 234 Unk s 325 Uni a 400 Urd a ZO Unla OrangeCwntySanlfatlonDisUict 51,026,07 8 f1,2%,02 5 31,570,30 0 f7B,300 East Orange CauMyWgd District f t 17,0 5162,.50 0 5200,00 0 $10,000 ra Corridor 759 56 4 1054 95 0 f 1 298 40 0 S64 920 Subrotd f 190158 2 f2 13 47 5 3 068 70 0 153110 Design Review fferttatMe Map, traffk studri pndimirory WQMP 6 silo plan) 511,000 514,000 312,000 f6,600 Final Map (6.000 56,000 $6,000 35,280 Publk krlprovertkna $18,000 518,000 S15,OtD 56,600 Wgert7usltryn4anaganrntPlan (5,000 $5,000 $1,700 51,782 PredseCradingPlan $71,000 512,000 510,000 53,300 PdmR b Ins - S70 000 f 10000 S7 00 f3 630 Sube~ad PubOrtMvb Services 65,000 65,000 53,200 f27 192 CNvebpmgttA®certent SO f0 f0 f1,32D Delon Review 53,000 33,000 53,000 f1,980 lOveTrailMap 53,000 53,000 33,000 (1,980 HrulTnsttMap 51,335 f1,335 f1,335 $881 Candklanal Use Pertnk SO 50 f0 57,980 FirvharvrwM impact Report Fee f1,333 51,333 SO SO Negathe Declaration f0 f0 5125 50 Predse Gra~ng Pbrmil Few 59,060 49,060 36,273 3690 Publk Improvemerta Pbmtlt Fees $9,060 59,060 56,273 3690 New Conttructlan Fee f125,100 f158,750 $192,500 f6,336 eullding PlemtM fee $64,859 (78,955 5113,969 53,398 PlamingPlen Check Fee 39,000 f11,054 f7S,956 $476 Building Plangreck $45,401 555,268 f79,778 51,378 Planning lmpec0ers Fes 512,972 515,791 (22,794 5680 Guiding ksuarKe Fos 334 f35 f35 423 Strang Motirtn Inprtrmereatlon Program Fes 52,546 53,116 $4,532 $182 ElecuialPom1ltFes 522,413 522,415 f22,415 f'U,791 Med+anlnlPermi Fee 570,160 515,791 518,550 f665 Mechanlpl Plan Check Fee f5,230 57,895 59,275 5333 Plumbirg PermR Fes (33,336 f35,733 545,453 51,730 Plumbing Plan Cfiedc Fa ft6,6tiB 517,867 f22,726 5865 Orange Coumy Fhe Authority Inspecdon Fea f33~00 f23,530 571,480 f 1,465 Tustin UNDed Sctrool DlsMct Fem -Level 2 52,050,308 f2,509,650 f3,65Q400 5735,186 t]uimby Fes f 2,981,464 S 3,956,882 f 6,795,360 5282,8% Tustin Tranrporation System Improvement am SO S1 787 400 3110 89 Submnl S 43 961 936,310 T1 dTS 626 $570,197 7ohl f7101 Si !9S FS 937 S2i S7S0 609 ,oar M Urrif SJF 64? f1! f39 f3T 30 (t) Includes lees associated with residsndal Donlon ddevelaprrtent mly. Fa fees assessed per project, olculatlons assume residential portion of pro~aa w: 66% d tohl. Source Cky dTustin Conrntmlry Deveiopmmt DeparUney P1am(ng Division, Tustin Conxnuniry RedevekrprneM agency, Gry dTustm PubNc works/Engirrsering Department, David Paul Rosen S Associates. dry dl'ustln ,1lfordrb~llry Cap and ! e~er+ged Fnvnehg Analyst Page 22 Table 13 Devebpment Procersing and impact Fee Antrmptions Rental Homing Prototype ~Y of Tustin 2l)Og Rental Prototype r1: Stacked Flat Number of Unit 325 Unib Ch'angeCounty Sanitation District (1,133,154 Eau Orange County Water District 3162,500 Trans Uon CorridorA enc 5613 925 ubtota/ S r,909,579 Design Review (Tentative Map, tra c study, preliminary WQMP & sibs plan) 514,000 Final Map f6,000 Public Improvements 518,000 Water Quality Management Plan (5,000 Preclx Grading Plan 572,000 PerrnR & in tlon 510,000 Subtotal (PW Services) rc r ,v,n gn Review 53.000 ttive Tract Map ~ Tray Map ~ fitlonal Use Permit ~ ~onment Impact Report Fee (1,333 hive Declaration ~ se Grading Permh-Fees 59,060 c Improvements Plermlt Fees 59,0601 Construction Fee 5158,950 1ng Ptmrk Fee 560,677 ling Plan Check Fee $8,495 ing Plan Check 541,474 dng Inspection Fee 312,135 ing Issuance Fee f35 ;Motion Instnmentatbn Program Fee 52,377 ical Permit Fes 522,415 enkal Permit Fee 512,188 apical Plan Check Fee 56,044 ring Permit Fee f28,268 ling Plan Check Fee 514,134 p County F1re Authority Inspection Fee 518,100 Unified School District Fees -level 2 (2,157,454 Iy F.K. t] f.fC DDn f~er Unit Source: City of Tl~stin Community Development Department Planning Division, Tustin Community Redevelopment Agency, City of Tustin Public WorldEngineering Department, David Paul Rosen & Associates. City of Tustin Aflprdabllity Gap and leseraged Fnarxing Analysis ~~ 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. City o(Tustin Affordability Gap and Leveraged Financing Analysis Page 24 Table 14 Per Net Square Foot Hard Construction Cost Assumptions by Prototype City of Tustin 2008 Prototype Hard Construction Cost Per Average Site Improvement 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 #1 $155 $20 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. Soh 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 casts 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 ?5 deal to proceed. Developer overhead is estimated at 4% of total development costs. Developer overhead cost line items typically represent a larger percentage of costs on small projects than larger projects. For market-rate owner 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 53,600 per unit for the gap analysis, excluding property taxes and reserves, based on interviews with (oval 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 Cily 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 1009'0 100% 100°Yo , 669'0 Total Gross SF Bldg. Area 305,800 373,250 540,000 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 $105,300,000 , $4 696 500 Hard Cost Contingency $2,160,400 $2,152,593 $5,787,720 , , $254 625 Arch./Eng./Constr. Supervision $1,296,240 $1,291,556 $3,472,632 , $152 775 City Development Impact/Processing Fees $7,404,546 $9,514,995 $15,937,526 , $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 1 $7,500 $7,500 $7,500 , $7 500 Soils Testing $40,000 $40,000 $40,000 $20 000 Property Taxes $259,248 $258,31.1 $694,526 , $30 555 Insurance Sales Commissi $1,296,240 $1,291,556 $3,472,632 , $152,775 ons Selling/Closing Costs $1,081,937 $5,409,687 $1,092,651 $5,463,256 $2,187,715 $10,938,576 $125,274 $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 5546,929 , , $626 371 PER NET SF $353.81 5292.74 $405.13 , $413.45 TOTAL COST, EXCLUDING LAND $82,711,143 $84,915,078 $197,862,713 $11 339 424 PER UNIT $353,466 $261,277 $494,657 , , $566 971 PFR 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 Devebpment Cosh Rental Housing Prototype: Stacked Fiat Apartments Clty ofTustin 2008 Renter Prototype Stacked Flat ~~nb Acres 13.000 Number of Units 325 Parking Spaces 731 Net Square Feet Living Area 319 150 Total Net Square Feet 319,150 Ratio NeUGross SF 100% Total Gross Square Feet Building Area 319 150 Land Acquisition 524,350,040 Site Improvements 511,325,600 euilding/Park)ng Hard Costs 549,468,250 Hard Cost Contingenry ;3,039,693 Archictecture/Engineering/Constr. Supervision $4,255,570 Development Impact and Processing Fees ;8,315,308 ALTA Survey $3,000 Environmental Phase 1 $7,500 Soi Is Testing 510,000 Construction Loan Fees $456,065 Construction/Lease-Up Interest $3,095,367 Property Insurance $607,939 Property Taxes During Construction S364,763 Construction Loan Title and Closing 515000 Appraisal Fees 510,000 Legal $30,000 Market Study/Consulting 525,000 MarkeHng/Lease-Up/Start-Up 5100,00,0 Developer Overhead 54,794,504 Developer Profit 59,589,008 Total Project Cosb 5119,862,606 Total Cost Per Unit 5368,808 Totai Cost Per Net Square Foot $375.57 TOTAL COSTS, WITHOUT LAND $95,512,566 TOTAL COST PER UNIT 5293,885 TOTAL COST PER SQUARE FOOT $299.27 Source: David Paul Rosen & Associates City of Tustin Affordabtitty Gap and Leveraged Flnandng Analysts 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 lender, the creditworthiness of the borrower, and financial market conditions. The LIBOR is currently at anear-historical low of 3.14%. Because this analysis is part of a 5-year plan, we assume a construction loan interest rate of 8.5% and a permanent loan interest rate of 8.0% to account for potential future rate increases during the planning period. With the renter prototype, we assume a conventional construction loan during construction. The construction loan is calculated based on a loan-to-cost ratio of 75% and an average loan balance of 60%. DRA has assumed an 8.5% construction interest rate and a 1.0% construction loan fee. The construction and lease-up period is assumed at 15 months for the renter prototype. We use an 8.0% permanent loan interest rate for the rental prototype. For the owner prototypes, the maximum supportable construction loan is calculated based on a loan-to-cost ratio of 85% and an average loan balance of 60%. DRA has assumed an 8.5% consiructiori interest rate and a 1.0% construction loan fee. The construction period is assumed at 12 months and the sales period at 3 months. For the owner prototypes, DRA assumed homebuyer mortgages based on an effective interest rate of 8.0% (combined loan interest and mortgage insurance where appropriate). We assume a 5% downpayment on the owner prototypes. The assumed interest rates are higher than current rates due to the five-year planning period for the Affordable Housing Strategy. Development cost and financing assumptions for the owner and renter prototypes are summarized in Table 17 and Table 18, respectively. 6.0 Per Unit Affordability Gaps For the rental housing prototype, the gap analysis calculates the difference between total development costs and the conventional mortgage supportable by net operating income from restricted rents, based on the above assumptions. For owners, the gap is the difference between development costs and the supportable mortgage plus the buyer's down payment. City of Tustin Affordability Gap and Leveraged Financing Analysis Page 29 Table 17 Development and financing Cwt Asuenptioro Ownv Hordng holohPw CHy of Tirtin 2004 Owner 1 Attached Townhome Owner 2 Stacked Flat Condominium Owns 3 H(gh Density Condominium Owner 4 Mixed Use, Ground Flow Retail land Acquis(Iton Cost Land Cat Per Gras SF Site Arm 545.00 f43.00 560.00 f60.00 Lard Cost Per Unit 5109,000 575,000 552,000 590,000 Developnent Cwl Aswnpdoro Site Improvement Cosh per Net SF 525.00 (20.00 f30.00 f20.00 Site Improvement Costs per Unk 561,000 535,000 526,000 520,000 Unk Hard Cansinution per SF 595.00 585.00 5195.00 ;155.00 Hard Cat Contingeruy (1) 5% 5% 5% S% ArchkecturaVEnglneerfnglt) 3% 3°/. 396 3% PropertyTaxoDurir~Constructbnll) D.60% 0.60% 0.60% 0.60% Insurance During Canstructfon 11) 3.00% 3.00% 3.00% 3.00% Selling/+Gaing Cab (%TDC) 5.00% 5.00% 5.0096 5.00% Sales Commissiora (%711(1 I.OtP16 1.00% 1.00% 1.00% Developer Overhead/General CondiUans (%TDC) 4.00% 4.00% 4.00% 4.00% Developer Profit {%TDC) 8.0076 8.00% 8.00% 8.00% Comtnctioe Loan ConsWctionLoan%ofTDC 85.00% 85.OQ% 85.00% 85.0096 ConatrucUonLoanAmt. (91,964,681 592,875,351 5185,955,786 570,648,310 Irrten:st Rate 8.5076 8.50% 8.50% 8.50% Loan Fees 1.00% 1.00% 7.00% 1.D096 Average Loan Balance-ConstnttUon 60.00% 60.00% 60.00% 60.00% Conatructlon Perod 12 Months 12 Month 12 MonOn 12 Months Sale Period 3 Monde 3 Month 3 Months 3 Months Total Construction Loan Term 75 Mond» 15 Month 7S Montlq 1S Montle CoratrrxYlon Loan Interest--Conctnsction (4,690,199 (4,736,643 59,483,745 5543,064 Cor>struction Loan Inearect Sale Period (1,954,249 51,973,601 51,473,601 5],973 601 Total Corastructlon Loan kttereat (6,644,448 Sb,710,2M 511,457,346 , (2,516 665 ConsirucUon Loan Pbinb 5919,647 5928,754 51,859,558 , 5106,183 Note TDC .Total Deveopment Cab (1) As a percentage of direct cosh (site Improvements and and building shell hard costs). Source: David Paul Rosen & Assodates. Cily o! Tlnl(n nNoedablliry Gap and Levmged flnanci~ Arulysia latpe JO Table 18 Development and Financitts Cat Assumption Rental Protelype: Stacked Flat Aparfrnenb City oflintin 21108 Renter Rototype Stacked Flat Apartrrletrb Land/BuIldinB Aequis}Uoe Cat Land Cast Per Grass SF Site Area 543.00 Land/Bullding Cost Per Unft 570,000 Devekpmeet Cost Anumptloro Site improvement Costs per SF Slte Area 520.00 Site Improvement Costs per Unit 535,000 Hard Construction Costs per Net Bidg. SF 5155.00 Hard Cost Contingency (1) 5.00% ArchitecturaUEngineering (1) 7.0096 Property Taxes During Corsstnretlon (1) 0.60% Inwrance During Constructbn (1) 1.00% Marketing/LeasinR/Start-Up PCr Unit 57,000 Devekrper Overhead (%TDC) 4.00% Devebper Proles (% TDC) 8.00% Corutruction Loan CorWntction Loan Asa %ofTDC 75.00% Consttucton Loan Amount S89,B46,955 Interest Rate 8.50% Loan Fees (2) 5898,970 Average loan Balance (CorssV/Lease-Up) 60.0096 Construction Period 12 Months Lease-Up Perlod 3 Months Total Coratruction Loan Tenn 15 Months Construction Loan Interest 55,730,931 Permanent Loan Dent coverage Raao 1.2s Morgtage Term 30 yeah Interest Rate 8.00% n) N a peronbge d direct coea Wn Improwmens, parking xructure and bullding dell hard cab). R) A11.0%dmatnWlon bin amount Source: David Paul Rosen & Associates City of TutUn Aftardalullty ('ap and taveragad HnancingMalysis I;,ge 3l 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-local financing assistance. We examined the following leverage scenarios: 1. 9% Low Income Housing Tax Credits (Federal only)t; 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 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. Table 19 Income Targeting Assumptions for Leveraged- Fi nancing Scenarios City of Tustin Income Targeting Assumptions Average Affordability Leveraged Financing (% of Units at °Io Area Based on Income Targeting Source/Scenario Median Income % Area Median fncome 9% Low fncome Housing Tax 10% of units ~ 30% AMl 47% AMI Credits 15% of units ®45%AMI 75% of units ®50% AMI 4% Low Income Housing Tax 30% of units ®50%AMI 57% AMI Credits, Tax-Exempt Bonds 70% of units ®60% AMI 4% Low fncome 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 City of Tustin Affordability Cap and Leveraged Financing Analysis Page 33 analysis therefore calculates household size using the [esser 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 local 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. ury or i ustin Affordability Gap and Leveraged Financing Analysis Page 34 Table 20 Construction and Permanent Sources and Uses Leveraged Financing Analysis Rental Housing Prototype: Stacked Ftat Apar6nenb City of Tustin 2008 FUNDING SCENARIO 996 lax Credib 496 Tax Crcdib 496 Tax Credib, Tax Exempt Bonds Bonds, MHP Number of Units 325 325 325 Acres 13.00 13.00 13.00 UniWAcr+e 25.00 25.00 25.00 SOURCES OF FUNDS CONSTRUCTION Tax Credit Equity $1,601,192 $8]3,772 $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 $0 $0 $p MHP (1) $0 $0 $22,609, ] 47 Affordable Housing Program (AHP) (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 70TAL SOURCES $114,401,293 $110,095,822 $123,551,461 Permanent Gap Financing/Unit $56,452 $140,174 $109,578 USES OF FUNDS CONSTRUCTION AND SOFT COSTS $114,401,293 $110,095,822 $123,551 461 TOTAL COST/UNIT $352,004 $338,756 , $380,188 (1) Estimated at 55,000 per unit. (Z) Equals temporary gap financing required after assuming 2 percent of total tax credit equity is used to fund construction and soh costs during construction. Source: David Paul Rosen & Associates City of Tustin Affordability Gap and Leveraged F1nanNng Malysis Page 35 Table A-1 PER UNR PROTOTYPE DEVELOPMENT COSTS BY BEDROOM COUNT OWNER PROTOTYPE ltl CITY OFTL)STIN Prototype Description Attached Townhonx TYPE MID SIZE OF UNR Tohl Number of Units 234 Unlb 2 Bedroom 3 eeohoom 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.Fi (U 1,714 Total S.F. f Hard Caatructioo Cab ! Sfle Improvements 560,500 /DU 560,500 560,500 560,500 Unit/Parking Constr. Costs ;102.06 /Gr. S.F. ;108,051 5133,778 5174,940 Total Hard Coco 5168,551 57 94,278 ;235,440 Development impact and Procdsitg Feel 531,643 /Unit 531,643 531,643 ;31,643 Indirect/Sott Cocb 572,457 /DU ;72,457 572.457 572,457 Total Cods (Ezupt Wsd and Overhead/Profitf ;272,652 S298,378 f339,541 Land Cwt ;108,900 /DU §108,900 5708,900 5108,900 Dev. Fee/Profit & OrrrMad 129E 552,030 555,538 561,151 Total Project Cosh Per Ovrelgng Unk 6433,582 5462,816 $509,592 (1) Assumes efficiency ratio (net/gross 5F) ol: 101% Source: David l~ul Rosen b Associates, Cky d Tuufn Affordsbntty Gap and Irveragird f inanting MaMb Page ~-t Tsbk A.2 PER UNIT PROTOTYPE DEVELpPMENT COSTS BY BEDROOM COUNT OWNER PRO1bTYPE •2 CITY OF TUSTIN Stadad Fiat TYPE AND SIZE Prototvoe Descrinliote Condoaninkaes Of UNIT Total Number d Unite 325 Unlb 1 B 2 Bedroom 3 Bedroom 4 eedroorn 950 Net S.F. 1,050 Net SF. 1,200 Net S.F. 1,500 Net S.F. 955 Total S.F. (1) 1 OS6Tdal S.F (1 1 206 Total S.F. (1 1 508Toul S.f. (1 Hard Constrsictlan Cab Site Improvement 534,848 /D~l.l 534,848 534,848 534,848 (34,&18 UniflParking Cvmtr. Cost 590.77/Gr. S.F 586,693 j95,819 5109,507 5136,884 fiblHardCab (121,54/ 5130,667 5144,355 5171,732 Devdopnerk Impact and hocesdn6 Feee 529,277 Junk 529,277 529,277 529,277 fZ9,277 Im9reet/So1t Caat 552,566 JDU 552,566 552,566 552,566 S52,566 Total Cab (Esctpl Land and Ovasfiead/Pro$D 5203,384 5212,509 (226,198 (253,575 Land Cost 574,923 /DU ;74,923 574,923 574,923 (74,923 Der feelPro@t lc Overhead 12% 537,951 139,195 ¢11,062 544,795 Total ho~ect Cab M DwelBras Unit 5316,258 5326,628 5342,183 5373,293 (1) Assumes efficientr ratio InebQross SF) of 101 % SounoG David Paul Raen 6 Associate. Citr dTUWn /JbdablUq Gap and ttan~d Faw~cin8 Ana lyais Va®a A-2 Tibic A3 PER UNIT PROTOTYPE DEVELOPMEM COSTS BY BEDROOM COUNT OWNER PROTOTYPE 8S CITY OF TUSTiN H1~1 Dentky Tine . un e~~c nc ~ ~rJnr a.or~wwnrnuo~ Tote! Numtfer of Unlfs: 400 Unit( 1 Bedroom 2 Bedroom 3 Bedroom 4 eedroom 1,000 Nat S.F. 1,150 Net S.F. 1,b50 Net S.F. 1,800 Net S.F. 10007otaIS.F. ]1 1,150Tota15.F. 1 1650TotaIS.F.(] 1800TotaIS.Ft11 Hard Condruction Cab SiEelmprovetnergs 526,136/DU 526,136 526,13b 526,136 (26,136 UnitlPOrtting Constr. Costs 5205.72 /Cr. S.F. 3205,718 5236,576 5339,435 5370,292 Tool Hard Crib 5231,854 5262,712 3365,571 5396,428 peveloptnatt Impact and Proceait~Fass 539,844/Unlt 539,844 f39,844 (39,844 539,844 Indkeet/Sott Crib 585,326 /DU (85,326 385,326 X5,326 585,326 TOgi Casts (Except Land and Overhrad/Protit) f357,021 5387,882 1490,741 (521,598 land Cosb 552,272 /DU 552,272 552,272 f52,272 152,272 ~y Fee/Propt ~ O~~ 12X, 555,813 S60,OZ1 374,047 ~ 578,255 Total Project Cosh Per DwetBt~ Unit 1465,1119 5500,175 1617,060 3652,125 111 Assumes efflcfenry ntlo (nedgroa SF? ah. 100% Source: David Paul Rose+r & Associates. CNy d Turin q~ Mj ~Rardabdtry Gap and Lewrapd FMancln~ AnalysFs rabk M4 PER UNtT PROTOTYPE DEVELOPMENT 10575 BY BEDROOM COUNT OWNER PROTOTYPE t<4 CITY OF TUST)N M&ed Use, Ground Prototvoe Descr(otiar floor Retail TYPE AND 512E CiF UNIT Total Number of Unhs: 20 Units 1 Bedroom 2 Bedroom 3 Bedroom 1,100 Net S.F. 1,400 Net S.f. 1,750 Net S.F. 1 100 Total S.F. 1 1,400 Total S.f. (1 1 750Tottl S.F. 1 Hard CombucUon Cosh Site lmprovemenb 519,800 /DU 519,800 519,800 519,800 UniUParking Constr Costs 5163.40/Gr. S.f. Sl 79,744 3228,765 (285,956 ToW HardCosb 5199,544 $248,565 1305,756 Dever Impact and Procesah-fFaes 537,530/Unit 537,530 537,530 537,530 Mdlrect/SoRCosts 5186,920/DU 5186,920 5786,920 5186,920 Total Cosh (Except Land and OverLead/Profiq $423,994 5473,015 5530,206 Land Cab 559,400 /DU 559,400 (59,400 559,400 DeK Fee/hofit d~ Overhead 1296 - 565,917 572,602 580,401 ToW Project Cab Per Dweilind Unit 5549,}12 5605,017 5670,007 (1) Assumes efftcfency ratio (riedgross SF7 of 10096 Source: David Paul Rosen & Assocfatn. C:h dTusun Mlordablltty Gap and Rnancing N~alysu Pap A.1 Table A-5 Homeowner Subsidy Requirements Owner 1 Attached Townhome Two Bedroom City of Tustin 509'0 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 5110 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance S50 $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 5129,760 $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% of gross income for low income and 35°'0 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: 5433,582 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and leveraged Financing Analysis Page A-t 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, Interest, Taxes Less: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale SO% 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 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) $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: 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) 50% of 70% of Median Median $42,498 $59,497 $1,062 $1,487 $164 $164 $175 $175 $50 $673 $97 $50 $1,098 $158 $91, 780 $96, 611 $577 $78,614 $82,751 $4,138 $426,840 $149,698 $157,577 $941 $128,223 $134,971 $6,749 $374,620 1109'° of Median $93,496 $2,727 $164 $17S $50 $2,338 $335 $318,625 $335,394 S2,003 $272,916 $287,280 $14,364 $222,312 (1) Income limit for a family of 5. (2) At 309'° 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'o average tax rate. (5) Based on 30-year mortgage at: 8.00°'° (6) Assumed to include downpayment at 5.0% of purchase price; (7) Total development cosh of: $509,592 less buyer downpayment, less supportable mortgage. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and leveraged Fnancing Analysis Page A-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 (S) Affordable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7) SO°~ of 70% of Median Median $31,480 $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 $SO $784 $112 $106,819 $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 (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 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 (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 of Tustin Affordability Gap and Leveraged Financing Analysis Page A-1 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) 509° 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 $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 $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 loge 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 Downpayment Required Capital Subsidy (7) 5096 of 70% of Median Median $39,350 $55,090 $984 $1,377 $148 $175 $50 $611 $88 $83,235 $87,616 $523 $71,295 $75,047 $3, 752 $267,136 $148 $175 $50 $1,004 $144 $136,863 $144,066 $860 $117,229 $123,399 $6,170 $218,784 110°~ of Median $86,570 $2,525 $148 $175 $50 $2,152 $309 $293,276 $308, 712 $1,843 $251,204 $264,425 S 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 Qrange 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 ofTustin Affordability Gap and Leveraged Financing Analysis Page A-3 tI Y Income Level (1) Affordable Monthly Housing Cost (2) Less: Monthly Utility Allowance (3) Less: Homeowner Association Dues Table A-11 Homeowner Subsidy Requirements Owner 2 Stacked Flat Condominium Four Bedroom City of Tustin 50% of 70% of Median Median $42,498 $59,497 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) $1,062 $164 $175 $50 $673 $97 $91, 780 $96,611 $577 $78,614 $82,751 $4,138 $290,S4Z $1,487 $164 $175 $50 $1,098 $158 $149,698 $157,577 $941 $128,223 $134,971 $6,749 $238,322 1109'0 of Median $93,496 $2, 72 7 $164 $175 $50 $2,338 $335 $318,625 $335,394 $2,003 $272,916 $287,280 $14,364 $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 Homeowner Subsidy Requirements Ch~vner 3 High Density Condominium _ CMe Bedroom City of Tustin 50% of 709'0 of 110% of • Median Median Median Income Level (1) $31,480 $44,072 $69,256 Affordable Monthly Housing Cost (2) $787 $1,102 $2,020 Less: Monthly Utility Allowance (3) $93 $93 $93 Less: Homeowner Association Dues $175 $175 $175 Less: 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 $1,458 Supportable Mortgage (5) $54,748 $91,445 $198,675 Affordable Purchase Price (6) $57,629 $96,311 $209,132 Buyer Downpayment $2,881 $4,816 $10,457 Required Capital Subsidy (7) $407,480 x368,798 $255,977 (1) Income limit for a family of 2. (2) At 30% of grass 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: $465,109 less buyer downpayment, less affordable mortgage. Source: David Paul Rosen & Associates. Ciry of Tustin Affordability Gap and leveraged Financing Analysis Page A-1 Table A-i 3 Homeowner Subsidy Requirements Owner 3 High Density Condominium Two Bedrooom City of Tustin Income Level (1) Affordable Monthly Housing Cost (2) Less: Monthly Utility Allowance (3) Less: Homeownef 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 7096 of 110°k 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 $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 of Tustin 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% 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: 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 $87,616 $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 Page A-3 r Table A-1 S Homeowner Subsidy Requirements Owner 3 High Density Condominium Four Bedroom City of Tustin 5096 of 70% 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) $i 64 $164 $164 Less: Homeowner Association Dues $175 $175 $175 Less: Property Insurance $50 $50 $50 Available for Principal, Interest, Taxes $b73 $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 p) $569,374 $517,154 $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, 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: 5652,125 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•i 6 Homeowner Subsidy Requirements Owner 4 Mixed Use, Ground Floor Retail One Bedroom City of Tustin Income Level (1) AffordabFe 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 Median Median $31,480 $44,072 $787 $1,102 $93 $175 $50 $469 $67 $63,917 $67,281 $402 $54, 748 $57,629 $2,881 $491,683 $93 $175 $50 $784 $112 $106,819 $112,441 $671 $91,495 $9b,311 $4,816 $453,001 110°~6 of Median $69,256 $2,020 $93 $175 $50 $1,702 $244 $23],950 $244,158 $1,458 $198,675 $209,132 $10,457 $340,180 (1) Income limit for a family of 2. (2) At 30% of gross income for low income and 35% of gross income for moderate income households. Assumes homeowner pays for basic electric, electric heating, cooking, and water heating, water, trash and sewer. (3) Includes homeowner association dues andlor 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: Property Taxes (4) Supportable Mortgage Before Prop. Taxes (5) Assumed Assessed Value at Sale Available for Mortg. Principal and Interest SO% of 70% of Median Median $35,415 $49,581 $885 $1,240 $110 $175 $50 $550 $79 $75,007 $78,955 $471 110% of Median $77,913 $2,272 $110 $17s $50 $1,937 $278 $264,044 $277,941 $1,660 Supportable Mortgage (5) Affordable Purchase Price (6) Buyer Downpayment Required Capital Subsidy (7) $64,247 $67,628 $3,381 $537,389 $110 $175 $50 $905 $130 $123,272 $129,760 $775 $105,588 $111,145 $5,557 $493,872 $226,165 $238,069 $11,903 $366,948 (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. (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°'0 of 70°r6 of 11096 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 $293,27b 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 $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) $594,960 $546,608 $405,582 (1) Income limit fora 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°l0 (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 Tustin Affordability Gap and Leveraged Financing Analysis Page A-3 Table i-/ Pt;r Unn DevelopRtenl Ceeb sy Unil Bedroom Couat Rental Hwsins Prototypes Staclted Fist Apu6nenb City of Telin 2008 PrototVOe Dpviotbm Sta~ad FlatAoarfrnerde TYPE M1D S17F [1f I INti Total Numbs of Uaktt 323 Units 1 750 Net S.T. 2 950 Net S.F. 3 Betkoom t OSO Nel S.F. 4 Bedroom 1 250 Net S.F. Hard Caatroctlon.Cosb Slte ImproverrwNS 534,848/OU UniUPlrkina Constr. Cos4s 5155.00 Per SF ToW Herd Cosh 534,848 3116,250 5151,098 334,848 5147,250 5182,098 S34,848 3162,750 5197,598 334,848 3193,750 3228598 Devebpnrrtt Proceseirs< Bed Impact Tap City Pnxesstng Fep (26.05/ Nei S.F. 319,541 f24,752 527,357 532,568 Indirect/SoA Cwb 336,984 f36,984 536,984 536,984 E36,984 Total Coeb (Except Land, Oserlsearl, Proflq 5207,623 3243,834 52b1,940 (298,150 Land Cab 574,923 /DU 374,923 374,923 574,923 574,923 Deg. Tee/hoRl i Owrlwwd 12'K 538.529 543,467 545,936 550,874 Total Project Cabe Ltnn 3321,075 3361,224 53ffi,799 5423,947 Source: David Paul Rosen 8r Associates CR- a(lbrlh Morttabilky Gap Md Lewwpd flwaci~/ euWYa P,He B-1 Tabk B-2 Tenant Subsidy Requirements Renter Prototype Stacked Flat Apartments One Bedroom City of Tustin 2008 50°6 of 6096 of 11096 of Median Median Median Income Level (1) $31,480 $37,776 $69,256 Affordable Monthly Housing Cost (2) $787 $944 $1,731 Less: Monthly Utilities (3) $54 $54 $54 Affordable Monthly Rent $733 $890 $1,677 Less: Monthly Operating Cost (4) $300 $300 $300 Less: Monthly Property Taxes (5) $321 $321 $321 Less: Vacancy Allowance (6) $22 $27 $50 Tenant Monthly Net Operating Income $90 $243 $1,006 Tenant Supported Debt (7) $9,805 $26,451 $109,681 Total Development Cost Per Unit 5321,075 $321,075 $321,075 Required Capital Subsidy (8) $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% 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 Cap and Leveraged financing Analysis Page B-7 Table B-3 Tenant Subsidy Requirernenb Renter Prototype Stacked Flat Apartments Two Bedroom City of Tustin 2008 income Level (1) Affordable Monthly Housing Cast (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) Tota! Development Cost Per Unit Required Capital Subsidy {8) 50% of 60% of 110% 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 $319,255 x235,621 (i) For a household size of 3 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 total development cost less tenant supported debt. Source: David Paul Rosen & Associates. City of Tustin Affordability Gap and Leveraged Financing Analysis Page &2 Table B-4 Tenant Subsidy Requirements Renter Prototype Stacked Flat Apartments Three Bedroom City of Tustin 2008 50% of 60% of 110% of Median Median Median Income Level (1) $39,350 $47,220 $86,570 Affordable Monthly Housing Cost (2) $984 $1,181 $2,164 Less: Monthly Utilities (3) $98 $98 $98 Affordable Monthly Rent $886 $1,083 52,066 less: Monthly Operating Cost (4) $300 $300 $300 Less: Monthly Property Taxes (5) $383 $383 $383 Less: Vacancy Allowance (6) $27 $32 $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 $382,799 $382,799 $382,799 Required Capital Subsidy (8) $321,834 $301,026 $196,989 (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% 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. Ciry of Tustin Affordability Gap and leveraged Financing Analysis Page B-3 Table B-5 Tenant Subsidy Requirement Renter Prototype Stacked Flat Apartment Four Bedroom City of Tustin 2008 5096 of 609b of 110° of Median Median Median Income Level (1) $42,498 $50,998 $93,496 Affordable Monthly Housing Cost (2) $1,062 $1,275 $2,337 Less: Monthly Utilities (3) $109 $109 $109 Affordable Monthly Rent $953 $1,166 $2,228 Less: Monthly Operating Cost (4) $300 $300 $300 Less: Monthly Property Taxes (5) $424 $424 $424 Less: Vacancy Allowance (6) $29 $35 $67 Tenant Monthly Net Operating Income $201 $407 $2,285 Tenant Supported Debt (7) $21,903 $44,376 $249,179 Total Development Cost per Unit $423,947 $423,947 $423,947 Required Capital Subsidy (8) $402,044 $379,571 $174,7b8 (1) For a household size of 5 persons, pro-rated from 2007 HUD income limits for Orange County. (2) Assumes 30°'0 of gross income spent on housing. (3) Based on current utility allowances from County of Orange Housing and Community Services Department. Assumes tenant pays for electric heating, cooking, water heating and basic electricity. (4) Based on estimated monthly operating costs per unit of $300 (5) Based on annual property tax rate of 1.2% applied to Iota! 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 Finarxing Analysis Page B•4 Table C-1 LEVERAGED FINANCING ANALYSIS RENTAL PROTOTYPE: SUCKED FLAT APARTMENTS DEVELOPMENT PROGRAM CITY OF TUSTIN 2008 Unib Type it Unib % Units Sq. Ft/Unit 7041 SF Prer Acre Acres 1 Bedroom 73 23°r6 750 54,750 1 Bedroom 100 31 % 950 95,000 3 Bedroom 100 3196 1,050 105,000 4 Bedroom 50 1596 1,250 62,500 Tota) Affordable Units 323 10096 317,250 25.00 13.00 2 BR Manager's Unit 2 1,900 Total Housing Units 325 319,150 Community Room p Total NetSf BulldingArea 319,150 ~arking/Circulatlon Open Spaces Parking Structure TatalSpaces Spaces 81 650 731 Qty of Tustin AXadabliity Gap and Leveraged Flnancing Analysis paw G.t TaYkC2 RENTAL tROTCJTITE: STAiCT(ED PUT APARTa4EMS lNCOIME ANO OPERATING COiTS WITH !9/ TAX CREDITS, FEDELLL AND STATE ASfUM-TIOiVf 2007 Median Housahoid Income, Fimily d four Alfordabk HousirtR Cwt As a %o! itlcana too. of Badooms Toni Houwhold Si>a 11) MouMhald Si>:a Inodna Ad~vaL Factor Utility Allospnn al No. d Unatt 323 Tool Dad:oonlr 773 Anoeo~ Rsirurs s1t INCOM! lEVE1 AMttal GrON Insane AHordaWaMonhly HoualnR Cor tetra MandllytllilkyAilorrnw ARadabla Mpllhly Rust Annwl Gnsr Mleonr A!ladaWa Motghly Mourintl Cwt Le»: MonlhlyUdUtyAlb~artca Afiadable Monhly ReM Annual Gros Uloana Af(iardabla Monthly Hourirgl Coal Lela: Mond~ly UdIRy AUo~ana Af/ordabla jt4omhly (fait NEr oPERAnNG tNC!>AIE Asfiordability LavelMO. d 8adrooma 10T % d Units 45% of Madlan 15.2% d UMn 709E of Mdaa 74,6%d UnNa I erdroan I Badman 3 Badroan 4 Brdroom 1 8a6oom 2 Badman 3 Badrooltl 4 Badropd 1 Bedroom 2 Bedroom 3 6adroan 4 Bedroom (78,700 30% I Ba/roartt ] Bedroata 3 6edraollt 1.5 Parrons 3.0 Prsorlt 4.0 Pt:ngr 75% 901E 100% fS4 568 598 T3 700 100 n Ioo 300 ;17,708 521,249 (23,610 (443 fS31 5390 tss4) (fbis) (s9a) 6399 f403 5192 526,361 (31,874 f664 (797 tf54) (5681 (610 S7I9 529,513 (35,415 3738 fB85 (354) (3681 s6e4 se17 4 Bta-oaels 5.0 PtrsolM 10811 f109 SO Ioo (25,499 (637 (5109) ss2e (35,415 538,I4B f88S 3956 1(98) 11109) Seel (847 f39,350 5984 (s981 seat Units Rant Momhy Grow Insane a s389 (3,112 10 f463 54,630 to fa9z s4,s2o 5 (528 (2,640 11 5610 (6,710 IS (729 510.935 1s s7e7 s1l,eos a fe47 56,776 54 3684 536,936 75 3817 561,275 75 fe86 f66,450 37 (953 (35,261 Toner 323 f2S1,4S0 ManaRar'r Unkt 2 CROSS RENTAL OVCOs4E Lass: VuanciM 13) O 3.016 Miscal.lnconta (100 Par Unil GROSSANNL'AL INCOME LESS: OPERATING E%PB45ES 5300~unlVmo. f3,600 Flr UnR/ykr Lasr: OPrratinR Raauw 3% ofOper. 8udprt Less: Rtpbw:rnrnt Re1NVN 5400 Fkn Unitlyw NETOPERATNG INCOME It) AssumaS IM lasfar d TGC otztrpancy rtandatd (i.S penom par bedroom) and GNkmla Health and Sahty oca4>'ancy gandsrd lorr parson prr badioom plot orW. tI) Souse County ut OranRS HelusinR and Commundy Servketi atTietivs! Otsobw 1, 2006. Aftuorr terser!( pays all elacdic lfulMR, cookinti and wanr hating and br4c e(ac8lciry; landlord pays wear and dash. t3) 71:~1C roqukw a S% rdnimum vaplKy tale ut1aA waned based an vacarxy dale in IM marker area. cry d irae ~aodarp Cro see taNnpd fiW+dq Mu1rrY 342,498 57,062 1!1091 395] 53,017,400 lit so,alo) 532,300 (2,898,830 rsi,170,t>DO) cs3s, t oa) 15130,000) s1,s63,no hp C•a Table C-3 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS DEVELOPMENT COSTS 9% TAX CREDITS, FEDERAL AND STATE Acres 13.00 No. of Units 325 Total Nd Living Area ISF) 319,150 Community Room 0 Total Net Square Feet, Residential Units 319,150 Other BuildingArea 0 Total Net Square Feet ' 319,150 Total Gross Square Feet 566,280 % Residential Baas Eilgibk 100.009E Tax Credit Elig. Baas Total (100% Rasida LAND ACQUISfTION 543 Pt:r Sloe SF ;24,350,040 50 SITE 1MORK 520 Per Site SF 511,325,600 511,325,600 UNIT CONSTRUCTION HARD COSTS 5155 Pt:r SF 549,468,250 ;49,468,250 CONTINGENCY S.OQ% of Hard Costs 53,039,693 53,039,693 ARCHJENG.ICONSTR. SUPERVISION 7.00% a( Hard Costs 55,960,072 55,460,072 LOUL IMPACTANO PROCE551NG FEES 526.05 Per SF 58,315,308 58,315,308 ALTA SURVEY 53,000 f3,000 ENVIRONMENTAL PHASE I 57,500 57,500 SOILS TESTING. 510,000 510,000 CONSTRUCTON LOAN FEES 1.0096 ;938,572 5938,572 CONSTRUCTIONJLEASE-UPLNTEREST 8.5096 15 Months 56,781,185 56,781,185 REAL ESTATETAXES AND INSURANCE 1.6096 of Hard Cosh 51,362,302 51,362,302 TITLE ANO CLOSING 515,000 515,000 APPRAISAL FEES 510,000 Si0,000 REAL ESTATE LEGAL 530,000 512,000 ORGANIUTIONAL LEGAL 530,000 f0 MARKET STUDY f25,000 525,000 POST-CONSTRUCTION AUDIT 515,1700 SO MARKEtINCJLEASE-UP/5'TART UP 5100,000 SO OPERATING RESERVE 3 Months Oyer 5292,500 SO TOTAL DEVELOPMENT COST 5112,079,022 587,273,482 DEVELOPER FEE (1) 15.1'X)96 o(TDC 51,940,000 51,200,000 7AX CREDIT CONSULTANT 530,000 SO TAX CREDIT APPUUTION FEE 52,000 SO TCAC ALLOUTION FEE 4.0096 of Ann. Credit .5320,270 f0 SYNDIUTION LEGAL 530,000 SO TOTAL PROTECT COST 5114,401,295 S88g73,482 PER UNR 5352,004 SZ72,226 PER SF S3~•'~ (11 As of 2006, the maximum developer lee permitted by TCAC is the lesser of 159E of dev+etopmersi costs or f2 ml Ilion. The maximum amount that can be included in eligible boas is S 1.4 million. Development and tax credit conwldng and syndication costs are included in the developer fee caP. Ciry ofTust)n nffordabliiry Cap and l.e~eraged Financing AealysR Page C•l Table C-4 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS FINANCING ASSUMPTIONS 996 TAX CREDITS, FEDERAL AND STATE TAX CREDIT EQUITY Requested Eligible Basis $71,616,838 Less: Non-Qualified Non-Recourse Financing 50 Unadjusted Eligible Basis 571,616,838 Adjusted Eligible Basis (High Cost Area Adjust) 1.30 593,101,889 Qualified Basis (% Cow Income Units) 100% 593,101,889 Tax Credit Rate 8.60°~ Annual Allow. Federal Credits 58,006,762 Tax Credit Pricing (Equity Raised Per Tax Credit Dollar) Federal 51.000 Federa{Tax Credit Equity (99.99%) $80,059,618 FAIR MARKET VALUE GLCULATION Net Operating Income; Restr. Rents 51,563,730 Capitalization Rate 8.50% Capitalized Value at Restricted Rents S18,396,824 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 593,857,236 CONSTRUCTION LOAN Constr. Loan Amt. S93,857,236 Interest Rate 8.50% Loan Pbints 1.00% Average Loan Balance--Construction 60.00% Construction Loan Term 12 Months Lease-Up Period 3 Months 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 Points 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 8.00% Max. Mortgage Amount (DCR) 514,207,327 Loan Fees 1.009'o S142,073 City o(Tustin Affortiability Gap anti leveraged FinandngAnalysfs page G1 Table C-5 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS 99'o TAX CREDITS FEDERAL AND STATE Orange Co. 9%7hreshold Basis Limits, 2008 Unit Size 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 2 Bedroom Mgr's Unit 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 Boosi Subtotal Boost (1) Plus: Energy Efficiency Basis Boost Plus: Distributive Energy Boost Plus: Seismic Upgrade Boost Plus: Development Impact Fees Total Adjusted Threshold Basis Total Unadjusted Eligible Basis Requested Eligible Basis $88,473,482 $71,616,838 (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 ~ffoniability Gap and Leveraged Financing Analysis Max allowed $60,866,856 20°k 0% $0 7% 0% $0 2% 0% $0 2% 0% $0 10% 0% $0 39% 4% 4% $2,434,674 5% 0% $0 15% 0% $0 $8,315,308 $71,616,838 TCAC Basis Total # of Units Limit Per Unit Basis 73 $139,272 $10,166,856 100 $168,800 $16,880,000 100 $215,040 $21,504,000 50 $239,568 $11,978,400 2 $168,800 $337,600 Page C-t ~~ E ~ ~p€~ ~~ ~ ~~~ ~~s~ ~z ~~~i~j~~~ ~ ~ ~ ~~ ip ~ ~ ~~ a ~~ ~ ~~ ~f a ~ a A pp~~ ~ ~ ~ A n ~3~~~~~ ~ kl3~~a {~ }~ W y tt ~a~~~GD~ ~ ~I~SiC ~ ~ 'Z A M L" ~ c~~~~~~~~ ~ ~~~ao ~aF_~~~.i~ A y °~L ~~6ls~e„~= ~ gl~a~ ~~ o~a~a ~ r ~ W. y~ a~~c+= ° n t~W1~ ~ ~ ~ ~ ~ v~ C '~ ~~G~~~9~~ ~ ~ ~Q~ ~~ ~~a»~ ~9~~~~~~ , ~I~~a 4~ ~ ~ ~ ~~~ ~~~~~Q~'A~~ {~ ~ ~,. ~ ryyN ~Oi«a}~.~ LI ~j~, A P ~r l` ~PrTa~ ~ i3 ~.viw~ ~ ~~~~~:~~s 4 ~I~~~ xa~ u~ ~~ ~ ~ ~ ~ _~~~~n~ ~ ~~~~~ ~ ~~€~~~~ ~~~; st ~T~&~g~~~ ~ ~ ~~q( r ~ ~~ a ~~ ~~ ~ ~ ~~ a~ ~g~~~~~~~ ~a ~~ ~ N ~ ~$.~ ~~ ~s 1~ ~I~~~ a" ~~~: xg~~ ~ ~ ~s~ r ~ ~~gx~~~~~ ~ ~I~~~ ~ w x r '~a~~~~a~ ~I~~ ~ ~~ ~~~~~. ~ 1~~= w ~ ~ g ~~~=~~s~~ ~ ~~~Q~ A~ v a gy~y~~~~s ~ ~I~~~ YF~ ~~r~; 3 $~sW~ ~ ~~~~~c"$$~ ~ g ~a~ ?zr ~~BM~ ti x ~ag~~~~~~ ~ g~y~~ ~ ~~~~ ~~ ~ ~ ~~ ~~ ~~~ ~~ r~ n p ~~~~ ~~ ~ ~~ ~ ~~~ ~a~ ~ ~ ~~ ~ .~ ~ ~. ~~ ~ ~ ~ ~~~ ~~ ~~ ~~ ~~ ~ ~~ ~ ~ ~~~ ~~ ~~~,~n~~~ ~ 5~ 9 ~.~Y~~~~~~ ~ ~I~~- ag x r ~ a~~~~~~b~ ~ rl~~~ ~ ~~~~~$~~ ~ ~I~€~ a ~3 ~ ~ a a'_=s~ s ~' p ' ~ A lC ~. 9 ~ ~e3~1~ e~~ ~ Xl~i~ ~i n~~ ~ ~ ~~~ '~~ t ~ " ~~ ~ ~ ,~~ ~~~ ~~ . ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~~ ~ ~~ ~~~ J ~ W M yM~ fy~~ 8 7a~ {~ N W W 7.i N~ jL J~ r 7~O~C ~ ~~S8ihOi NN~ W N ~ ~ ~ ~I JoW p 1N v~vyM~ ~O W _ v v W ~ N 1 p ~ V ~ M vW ppVPp~ yM jjM~ ~v~Y1 M M p ~ v~ ~ i ~ ~ a ~ i ~ ~ F j p y~ a ` ~ OHO WP V y ~ ~O 3 ~O~ V N pM NM ~ M J~ ~- y v a p ~i+P V tl ~ ~~~{ya1V w . ~ ~ P r~ ~NN~ p R b O~ a sy~ ~ N O~ M N Z ` ~ ~p ~'~ o x~ ~ , ya pq N W pG70~0 ; V ` N ~ NO V W ri1 ~g~ ~ IV~ ~ D ~g~iaw r r y W Ig~~la ~ r r M V ~ ~M w~~i sCi 77gg~' W ~~~~Z s '~ v ,p rr 1}~~ OR~~Oi v '~ 9~ON 3 N ~ y y N Y N i ~ yyy~~ ~ :O ~ ~ s Lv b ~oa~r L a ~ppL g v1S~+vrio n i ~~ A O ~~ ~~ ~ ~ ~ ~~ ~ ~ ~ ~~ ~ ~~ ~ ~ ~~ W . ~ ~~ , ~ N ~ ~ ~~ N V Mjj ±~~ ~ p~ BM vN ~ NN 1I ~i V ~ bO p M ~ X70 BOO M My ~1 V N M ~ ~ W V J Og~~ ~ ~~~$~ y M ~ r j p{~ uv~ ,'u4 b ~ ~ p pmm~~ W ~ ~ 6Cao ~, Li~S~Su i~ ~ W yVy N MM 3 M N § N. // 1~ ~ L~1 pN y ON Y ~ M ~ ~ U Y ~ J N d ~ ~ N ~~ ~~ N ]]jjd~ . ~ ~ 0 ~ I ~ N p v~ yy W M W ~ Y ray ;IC ~/ N M ~ i ~ q :~88~ ~ Jq • {p ~ ~lSfS~Y N ~ g ~ bbJ ~ ~"y+ 1~1 ~~3 Vy~ e~ p NN mZ9:~ai +" L2lI~S1LS~r1. axrs v a ~ ~~ ~ P~1 ~ P ~~ ~ p 01 ~v + . ja y vOWG NiM MM y ~ NO7O~ r ~ T a N .~ r ~ N ~ LL r 5L5~~ y p T~ P S V ( ~ v ~ V v~ M ~~ E ~. ~ ~~ • ~ ~ T ~~ ~ ~ ~~ w. ~~~ ~ ~ ~~ ~~ ~ . ~ r N J L, vNv M~p+ I VV ~ ~ N ~Ni ~ ~ NN+ ~ j ~ V y ~ y ~ 0 V ~w ~ 1 ~ 1 j O ~O~G r r ~~6~p y~ r ~ j ~ ~MMNN~~ ~ PON V a O Ov 0 N/~/~~MMy~~ y Y ~t N~ ~Mw i ~ MM W N ~ ` /~{y` y I ~i W ~~ ~O 8 ~ {I~~~ J ey~~ri OY f~ 9~ r r ~ M p.IJ Y1 NN NN O ~ V ~ tltl ~ b O r M Zi N W V~~ ~ ~~j r ~1 Y ~ F W y NN 0 0 ~ ~ ~ M ~ ~ O ~ ~ N M y~ r MNL ,~ sw y ~ r j N +y ~ ; ~~SY ~E~ F ~i4l4r~ ~ M N MM ~yy Mis lCr - y M LJ ~ N ~~• ~~ ~ O VV M 0 ~~ ~ ~ ~ iVn N ~, ~.~V F ~(1 U{wM~ ~ ~M~~N ASSUMPTIONS Table G8 RENTAL PROTOTYPE: STACKED FUT APARTMENTS RENTAL INCOME AND OPERATING COSTS 4% UX CRE01T5, TAX-EXEMPT BONDS 2007 Median Household Income, Family of Four Affordable Housing Cat Asa % d Income No. of Bedrooms Totak Household Slu (1) Household Siu )noome Adjust Factor Utility Allawnce (2) No. of Unit 323 Total Bedrooms 773 AfFORDAbLE RENTS by INCOME LEVEL Mrwal Groa Income Affordable Monthly Housing Cott Leas: Monthly Utility Allowance Affordable Monthly Rent Annual Grote Income Affordable Monthly Flousing Cost Lein Monthly Utility ~111owmce Affordable N4onthly Rent Affordability CeveVNo. of Bedrooms 5D9G of Median 30.0% of Units 60% olMedtan 70.0X of Units 578,700 3014 1 Bedroom 1.5 Persons 7516 f54 73 T3 2 bedroom 3.0 Persons 90'X. Sea 100 200 529,513 535,415 5738 5885 (554) (568) 5684 f817 135,475 542,498 5885 51,062 c654) (seB) 5831 E994 3 Bedraorr 4.0 Pprsarts 100% s9a 100 300 4 Bedroom 5.0 Prisons 1081E slog 50 200 539,350 542,498 S9B4 51,062 (598) (f 109) 5886 5953 547,220 550,998 f1,181 51,275 (698} (slog) s1,oB3 61,,66 MontMy Unit Rent Gross Inearrhe 1 Bedroom 22 5684 515,048 2 Bedroom 30 5817 524,510 3 Bedroom 30 5886 526,380 4 Bedroom 15 5953 514,295 18edroorsh 51 5831 542,381 2 Bedroom 70 5994 569,580 3 Badroorn 70 51,083 675,810 4 Bedroom 35 51,166 540,810 Totak 323 5309,014 Menage's UnR 2 GRO55 RENTAL INCOME Less: Vacancies O) O 5.0% MISG tnoDrne 6100 Per Unk GROSS ANNUAL INCOME LESS: OPERATING FXPENSES 5300huhiVmo. 53,600 f'+er UniWear Less: Operating Reserver 3.0X of Opsr. Budget Las: Replacerrherht Reserves 5400 Per UniWear NET OPERATING INCOME (1) Assume the lesser of TCAC occupancy standard (1.5 persorn per bedroom) and California Hwlth and Safety occ~panry standard (one person per bedroom plus one). - (2) Source: County of Orange Housing and Community Services, effective October (, 2006. Assumes tenant pays all elccOric heating, cooking, and water heating and basic electricity, landlord pays wear and vssh. (3) TCAC requires a 5% minimum vaursty rate unless waived based on vacancy data in the marirot arcs. coy atTwtln MlardsbiRy ~+P srd Le~enLed Flnancir~ Arolpi~ 53,708,168 if 185,408) 132,300 53,555,060 (51,170,000) (f35,100) (6130,000) 52,219,960 P+~e C•12 Table C•9 RENTAL PROTOTYPE STACKED FLAT APARTMENTS DEVELOPMEM COSTS 496 TAX CREDITS, TAX-EXEMPT BONDS Acres (Units Plus Parking). 13.00 No. of Units 325 Total living Area 314,150 Community Room 0 Total Net Sgwrc Feet, Residential UMts 319,150 Other Building Arta 0 Total Net Square Feet 319,150 Total Cron Square Fed 319,150 % Rgidential 100.00% Tax Credit Elig, Basit Total (10096 Restd.) LAND ACQUISITION 543 Rer Site SF 524,350,040 SO SITE WORK 520 Pier SIOe SF St 1,325,600 St 1,325,600 UNIT CONSTRUCTION HARD COSTS 5153 Per SF 549,468,250 549,468,250 CONTINGENCY 5.00% of Hard Cosec 53,039,693 53,039,693 ARCHJENG.KONSTR. SUPERVISION .7.0096 of Hard Costs 55,960,072 55,960,072 LOUL IMPACT AND PROCiS.SING FEES 526.05 Pbr SF 58,315,308 58,315,308 ALTA SURVEY f3,000 53,000 ENVIRONMENTAL PHASE I ;7,500 57,500 SOILSTESTING ~ 510,000 St0,000 CONSTRUCTION BOND FEES/COSTS 1.0096 Plus 5100,000 5693,933 SO CONSTRUCTION/I.EASE-UP INTEREST 5.5096 15 Months 52,77b,637 52,776,637 REAL ESUTETAXE5 AND INSURANCE 1.60% of Hard Costs 51,362,302 51,362,302 TITLE AND CLOSING 515,000 575,000 APPRAISAL FEES 510,000 510,000 REAL ESTATE LEGAL 330,000 S 12,000 ORCANiZATiONAL LEGAL 530,000 SO MARKET ~~ 535,000 525,000 POST-CONSIRUC710N AUDIT 515,000 SO MARKETING/LEASE-UP/STARI:UP 5100,000 SO OPERATING RESERVE 3 Months Oyer 5292,500 ;0 SOFT COST CONTINGENCY 2.0096 5107,417 51071417 TOTAL DEVELOPMENT COST 5107,937,252 582 437 779 DEVELOPER FEE {t) 15.0096 of Dav. Coat $1,940,000 51,200,000 BOND/TAX CRf.DITADV190R 530,000 SO TAX CREDIT APPLICATION FEE 52,000 50 TUC ALLOUTION FEE 4.0096 of Ann. Credk f156,570 SO SYNDIUTION IEGAL 530,000 50 TOTAL PROTECT COST 5110,095,822 583,637,779 PER UNR 5338,756 5257,347 PER SF 5344.97 {t) As of 2006, the maximum developer fee permitted by TCAC is the lesser of 15% of dtHelopment costs or S2 million. The maximum amount that can 6e included in eltgibk bests is 57.4 million. Developmerrt and tax credit consulting and syndication costs are included to the developer fee cap. City dTi~in Afrwd~bilRy Gap and leraa®ed Finaneing Artalytf{ Psge [. t 3 Table C-10 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS FINANCING ASSUMPTIONS 4'16 TAX CREDITS, TAX-EXEMPT BONDS TAX CREDIT EQUITY Total Eligibk Basis Less: Non-Qualified Non-Recourse Financing Less: E)igibleAmountVolurrtarilyExcluded Unadjuded Eligible Basis Adjusted Eligible Basis (High Cost Area Adjt,W Qualifed Basis Tax Credit Rate Mnwl Albvv. Credits Tax Credit Pricing (Equity Raised Per Tax Credit Dollar} Federal Federal Tax Credit Equity (99%) CONSTRUCTION BOND AMOUNT Constr. Loan AmL Interest Rate Constr. Bond Issuance Costs/Fees Average Loan Balance--Constnrcdon Construction Period ' lease Up Period Constnrction Loan Interest-Construction Construction Loan Interest--lease-Up Net Interest Cod Bond Issuance Costs PERMANENT BOND AMOUNT Net Operating income Debt Coverage Rath Debt Service Mortgage Tenn lntered Rate Ck1. of Tustin Affordability Cap and Leveraged FlnancingAnalysit 09'e 1.30 10096 55% of Agg. Basis $100,000 Plus 583,637,779 50 50 583,637,779 f108,729,113 5108,729,113 3.60'K 53,914,248 51.05 S40,ti88,609 559,393,300 5.50% 1.00% 60.0096 12 Months 3 Morphs S 1,959,979 5816,658 52,776,637 Sti93,933 52,219,960 1.25 51,775,970 30 years 7.00% Page C-14 Table C-11 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BAS1S LIMITS 4% TAX CREDITS, TAX-EXEMPT BONDS Orange Co. 4% Threshold Basis Limits, 2008 Unit Size TCAC Bash # of Units Limib 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 Max allowed Plus: Prevailing Wage Boost 20% Plus: Subterranean Parking Boost 7% Plus: Day Care Center Boost 2% Plus: Special Needs Boost 2% Plus: Elevator Boost 10% 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 Adjusted Threshold Basis Total Unadjusted Eligible Basis Requested Eligible Basis $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 of Tustin Affordability Gap and Leveraged Financing Analysis 0% 0% 0% 0% 0% $13,120,071 $21,680,000 $2 7, 750,400 $15,457,850 $433,600 $78,441,921 $0 $0 $0 $0 $0 49'0 $3,137,677 0% $0 0°/O $0 $8,315,308 $89,894,906 Page C-1 Q ~~ ~ ~ ~~~~ ~ ~~~ ~~ s .~ ~ ~~ ~~ ~ ~~ ~~ ~ ~ ~ ~~ ~ ~ ~~~ ~~ ~$ ~ ~ ~ ~~~_~~~~ ~ ~I~~~ g~~-~~~~~~~~ A ~ A w ~ ~~~~~~g~ ~ ~~~Q~ A ~ A ~ ~f ~~~~~~~ ~ ~fQ~ A ~ ~ f ~~w w g ~ x ~~ ~ ~~~~~~~~~ ~ Ilya n ~ a ~ ~53~~y~ I~~ ~ ~Q ~ a~ ~ ~~tt~~ ~ ~~~~~~~ b &I~~~ ~~~ ~~ a~ $ ~ ~W~ a~ a~ $ Y ~O~N ~P O~V ~ ~ yBiG ~~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~; ~~~ ~f ~~ ~~ ~ ~ o ~~ ~ ~ ~ ~~ g ~ ~~~ ~~ ~ Qn A~ 3 r x a« » a Y ~ pp V ~~•Y~ SOV ~ ~, S~ M~ M R M fj M ~ ~ !^ y N p4r yA~ ~~ ~~ ~ ~~~ T. i L~os,~jE[ ~ : yQ d ~Z~O~~S~ ~ ~IEi r Cya$~~14~8 ~I~Q~ Ys A~ M A M M ~ ~~~ ~~ 3~ ~I~~~ y ~ ~$~x14so ~ a~~ r ~ g ~~~~~~~~ ~ ~I~a~ N! ~gnr~ ~ g;y~ ~ ~ $ L' ,L' ~ to ~ ~Ws ~ ~~ ~ ~ ~~~ ~ ~n~s"~~~~ ~ ~I~a~ ~ ~~~ ~~ ~~ ~ ~ Wg~ ~$~ ~~ ~i f o ~~~ n z M r~ ~ ~ ~~ ~. ~ ~ ~ ~ ~ ~ ~~ ~ ~.. ~ ~~ ~~ ~ ~~ ~ ~ ~~ ~ ~ ~ M ~ ~~ ~ ~ ~~~ ~B~ ~~ ~~~ ~ 6~~~~~g ~ ~f ~~~ ~ ~~~ ~~ ~~ ~I~~~ ~ ~~~~~~g~ n ~ y~ M ~ ~ ~ V 3 ~a~~~~~~ ~ ~I~~~ u a ~~° ~. ~ ~~~~~~s8c S ~I~~~ r ~~~ ~~ ~F~ ~~~® ~~da~~~~~ ~ ~I~~S :~~~~ ~~~ ~ es"I~a~ f i ~ ~~~~~' ~ a~~ ~ ~~ ~~ ~~~~ ~ ~~ ~ ~~~ ~~~~w n ~ ~ 7 '~ n ~ ~ ~ • ~ M ~ ~ ~ ~ C C ~~b~ ~ FMi O ~ ~ ~~ ~, 3 ~ ~ ~~ N M W W N W N ~lS~~S2S ~ ~~S8~~ M ~ ~ y~ :~Q~ ~ ~ ~rw 25~~~'2S N p~Sa~~ QN V r ~ ~ ~ N yy~~ ~1WO ~~Wpp F a :~ OVvA ~NNpp1 ~Np V 01D0~ ~ O~~v i. Yii N ~ N o t~~~J ~ ~ ~xr 4~~W ~v ~ ~ZS~=a N ~ 'r pyN~~ ypN~ N y~yff O ~0 ~+ p ~ `jt~.T~ 1~0 ~ P~ V O W ~ 4 C p OO ~~ O ~ a P TV • N a M N ~ AA ~ N N N ~ V Li~ .~pp P ya~ V ~O SD + OONp i wl ~ N b ~ S i M r ~ ~ d ~ } ~ S ~ O Ny~ r ~. W O W ~~O p v ~ P~~F ~O N ~ M N ~ ~ ~ y yO~~~yy~~~Wpp e ~ '+,CPI.W ~, ~ pp 0 i ~ W p~ N N N ~ ~ ~ J ~ N Ny ~ p rN~ /~ y1/~~ py(p~1 C~ O N O M N i ~J ~D ppN ~ N O O~ N F M IV N N M ,+ ~ w ~ V~ N N V V ~ N N ~ V~ r O Sv ~ W O ~ CO ~ v~ N ~O j tn O. N M NM ~ p N N N V ~ ~ v O ut n $~oa~ ~ s ~ i~~&~ Is ~ j9 i • q ~ Q ~~~ ij ~ S~~Z ~ ~~~ ~~ ~ ~" ~ ~~~ ~o~ ., ~ ~ ~ - ~ T RsY~ Z G y 3 N M N N y~ N yv y ?V N V OO V .r~ N L ~N~ ~ ~~SlS~i M M M N N ~r~ V u MO NN ~e yy/~ yy1~ ttvv~~~ w ~O O ~O V W $ ~O 000 N r pM vM N ~ ,VNp N tJ a V ~ N y a W p. r o~+v~ ~ ~~~~u N ~F =:~N~ppi N ~ V yy~~~p B8N ~ N ~O ~ P, V O O N O N N N ~ ~ M O ~ ~ Xr J V V V ~ ~ W v O~ ~tS~=~ ~ ~2S2Sov~ N N M `y N N j V N bbO ~ ~ y1 yy~- W ~ V ~00 W N ~ 00 ON YNI N ~~~ ~ ~2S2S3~ ~ M d NMr N 1~y y N yy r V VV1 jJ yC~1 W ~i ~O P O a b a ~ T~~~ w N_ M N r N ~ N V ~~ J N W `~ M N O v~ 0 a N • WON O O N N ~ W IIJJ ` 4/1 N C~ O 4I~ ~ ~ ~ O~ bM y~ y~ y~ N N P P ,P a ~ V Y~ '. N to Y1~ VP VO Oi N a ~ "rte W ~J OCW 1n W ~ J 1 VI ~ Y1 V1 4n I I M 00 ± ± j P A N N I V N V1 ~ O N 8 N ~~~ ~~ ~ T~~;~~ ~~ ~~ 4 ~ ~ N ~ ~ "11 ~ ~~ N O w ^ ~ A /t nl .~ ' x ~ ~ ~~ r r N ~ ~ ~y vM + . ~O V A N S W ~ N T N ~ N W yy1~ oo yyyO~~~ yy11 r a 0 v~+P ~ dOO1 W ~ N ~ M ~ M ~~pp ~O}O N ~ N~ pp~pp~ !~ eMM N~V ~ j N t • V V ~ O O O r r M r r y ~ ~ p pP W N P N ~ ~ ~ / y~ ~ N p ~ ipp ~~11 .~pp yy~~ O W W j O~ ~ t0 ~ O V N ~ ~ N Ge O~~ ~ W P ~ P ~ p ~O O N V O v W p O O ip r ~ ~ ~ N~p pp1~ MQ W V W V t p r O~ P P~ N . NN j~~1 «« p v N N~ ~ ? O p N a a w ~ MM ~oO ~O pbW~ ~ i N ~Vp O~ ~ ~p w 040 ~ ~ O~~O~ N M N N M O W N pQ!~ JV y~{r~ N wA ~ a "~ v Or V a ~ oo ! NNMM ~o y~ 1 V M~ V~ ~ ~ O O~ P ~ N N ~ N M .NN yM1~ pN ywI N N N N N ~ O G O v ;p v~ SS gQ aT~N V S VN1~~V V n 13tt+le Gu RENTAL PRO177TYFE: STACKED FIAT APARTMENTS MHP LOAN UMiTS 2007 Unit ~ Units • MFO- Loin ik~it Trr Unit A4sbnuw MHP Loe~ Unit Size X at Unite 30% AMI 60% AMt 30y. AMt 607E AMI 38% AMI 601i. AMI Tote 1 Bedroom 73 ZI 51 5110,686 545,000 52,135,092 52,295,000 54,730,092 2 Bedroom 100 30 70 S1Z3,938 545,000 f3,718,1<0 53,150,000 56,868,1<0 3 Bedroom 100 30 70 5136,782 f4S,000 54,085,460 f3,150,000 f7,235,460 4 BetLuom SO 15 35 5146,697• f<5,000 f2,200,455 51,575,000 53,775,<SS Taal 323 97 236 512,439,747 (10,170,000 522,609,717 ( chy dream .uro~d~auti co ,~e ~a.a anw~~` n~,~ya q}e c•n r Tabk C-1 S RENTAL PROTOTYPE: STACKED FLAT APARTMENTS RENTAL INCOME AND OPERATING COSTS MHP PROGRAM, TAX-EXEMPT BONDS, 4% TAX CREDITS ASSUMPTIONS 2007 Median Household income, Family of Four 578,700 Affordable Housing Cost Asa % of Income 30x, No. of Bedrooms Totak 1 Redrawn 2 Bedrown 3 Bedroom 4 Bedroom Household Size (1) Household Slre incomeAdjust Factor 1.5 Pt'rsons 3.0 Persons 7 4.0 Fiersons 5.0 Persons . Utility Allowance (2) 5% 90% 554 568 100% 598 108% 6109 No. of Units 323 73 100 100 50 Total Bedrooms 773 73 200 300 200 AFFORDABLE RENTS BY INCOME LEVEL ' MHP B (30961 Affordable Monthly Housing Cost 5455 5547 f532 5705 ,Less: Monthly Utility Allowance fS54) (558) (598) (1109) Affordable Monthly RerK 5402 5479 5534 55% b0% of Median Annual Gross Income 535,415 542,498 547,220 550 998 ANordableMonthlyHousingCost 5885 51,052 51;181 , 51 275 Less: Monthly Utility Allowance (554) (f68) (598) , (5109) Affordable Monthly Rem 5831 5994 51,083 51,165 NET OPERATING INCOML• Affordabillt Level/IVO. of Bedrooms y Units Rent Monthly Gross Income MHP 8 (30%) 1 Bedroom 30.096 0l Units 2 Bedroom 22 5402 30 5479 58,844 514,370 3 Bedroom 30 5534 515,020 4 Bedroom 15 5595 58,940 6096 of Median ]Bedroom 70.0% of Units 2 Bedroom 51 5831 70 5994 542,381 559,580 3 Bedroom 70 51,083 575,810 . 4 Bedroom 35 51,155 540,810 Average Affordability 50.9996 Totals Manager's Unh 323 5275,755 2 GROSS RENTAL INCOME Less: Vacancies l3) 0 5.096 53,321,060 Miscel. Income 5100 Pe- Unit (5156,053) 532,300 GROSS ANNUAL INCOME 53,187,307 LESS: OPERATING EXPENSES S30tYuniUmo. f3,600 Per Unit (51 170 000) less: Operating Reserves 3A% of Oper. Budget , , (535 100) Less: Replacement Reserves (4) 0.6% of Construction Costs , 1f371,012) NET OPERATING INCOME S 1,611,195 (1) Assumes the lesser of TUC occupancy standard (1.5 persons per bedroom) and California Heahh and Safety uccupanry standard (one person per bedroom plus one). (Z) Source: County of Orange Housing and Community Services, effective October 1, 2005. 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 vacanry data In the market area. (4) MHP requires replacement reserves equal to 0.696 construction costs unless otherwise approved. City olTustin ARordabiliry Gap and Levera®ed Flnancir~ Analyfb Pagrr C-i Table C-16 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 319,1 SO Community Room 0 Total Net Square Feet, Residential Units 319,150 Other Building Area p Total Net Square Feet 319,150 Total Gross Square Feet 319,150 96 Residential 1 ~•~ Tax Credit Elig. Basis Total (10096 Resid.) LAND ACQUISITION SITE WORK UNIT CONSTRUCTION HARD COSTS (1) CONTINGENCY ARCH./ENGJCONSTR. SUPERVISION LOCAL IMPACT AND PROCESSING FEES ALTA SURVEY ENVIRONMENTAL PHASE 1 SOILS TESTING CONSTRUCTION BONA FEES/COSTS CONSTRUCTION/LEASE-UP INTEREST REAL ESTATE TAXE5 AND INSURANCE TITLE AND CLOSING APPRAISAL FEES REAL ESTATE LEGAL ORGANIZATIONAL LEGAL MARKET STUDY POST-CONSTRUCTION AUDIT MARKETINC/LEASE-UPSTART UP OPERATING RESERVE S43 Per Site SF• S20 Fer Site SF S 194 Per SF 59'° of Hard Costs 796 of Hard Costs (26.05 Per SF 1.00°,6 Plus 5100,000 5.5090 15 Months 1.6096 of Hard Costs 3 Months Oper 524,350,040 S11,325,600 561,835,313 53,658,046 55,960,072 58,315,308 S3,000 s7,sao 510,000 $771,610 f3,139,778 51,362,302 515,000 510,000 530,000 530,000 s2s,ooo S15,000 S 100,000 5292,500 SO 511,325,600 561,835,313 53,658,046 55,960,072 58,315,308 53,000 s7,soo St0,000 5771,610 53,139, 778 51,362,302 515,000 510,000 512,000 SO 525,000 so SO SO BOND/TAX CREOITADVISOR ........,.. wvc~.wau J1,7NV,VUV 530,000 il,llxl,OpO 50 TAX CREDIT APPLICATION FEE 52,000 SO TCAC ALLOGTION FEE 4.00% of Ann. Credit 5183,008 50 SYNDICATION LEGAL 530,000 50 TOTAL USES 313,551,461 $97,760 91? PER UNR 5380,158 , 5300 803 PER SF 5387.13 , (1) Estimated hard costs, assuming prevailing wages, at a 2596 increase in hard costs over non-prevailing wage costs. (2) For MHP projects with tax credits, the difference between the maximum developer fee under TCAC: 51,940,000 and the maximum under MHP: 53,137,500 be deferred and paid only out of cash flow. City dTustln A(fordabilhy Cap and Leveraged financing Analysis Page C-i Table C-17 RENTAL PROTOTYPE STACKED FLAT APARTMENTS FINANCING ASSUMPTIONS MHP PROGRAM, TAX-EXEMPT BONDS, 4% TAX CREDITS TAX CREDIT EQUITY Total Eligible Basis Less: Non-Qual~ed Non-Recourse Financing Less: Eligible Amount Volurrtarily Excluded Unadjusted Eligible Basis Adjusted Eligible Basis (High Cost Area Adjust) Qualified Basis Tax Credit Rate Mnuaf Allovr. Credits Tax Credit Pricing (Equity Raised Per Tax Credit Dollad Federal Federal Tax Credit Equity (9996) CONSTRUCTION BOND AMOUNT Constr. Loan Arnt. Interest Rate Constr. Bond issuance Costs/Fees Average Loan Balance-Construction Constnutlon Period. Lease Up Period Constnrction Loan Interest--Constuction Construction Loan Interest Lease-Up " Total Interest Cost Bond issuance Cosa PERMANEM BOND AMOUNT Net C~p~atJng Income Debt Coverage Ratio Debt Service Mortgage Tenn Interest Rate Max. Mortgage hmount (DCR) Cry ofTustin ~(tordabiliry Gap and Lervaged Rnanring Maiysk 09'0 1.30 100°16 55% of Agg. Basis $100,000 Pius $97, 760,912 f0 f0 (97,760,912 S 127,089,186 f 127,089,186 3.6096 f4s7s,211 fl.os (47,559,315 (67,161,024 5.50% 1.00% 60.00% 7 Z Month 3 Months (2,216,314 (923,464 43,139,778 5771,610 $1,611,195 1.25 (1,288,960 30 years 7.00% $16,145,037 Page C-25 Table C-18 RENTAL PROTOTYPE: STACKED FLAT APARTMENTS THRESHOLD BASIS LIMITS MHP PROGRAM, TAX-EXEMPT BONDS, 4% TAX CREDITS Orange Co. 4%Threshold Basis Limits, 2008 Unit Site TCAC Basis ~ of Unib Limib 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 Tota) Threshold Basis Threshold Basis Boosts Plus: Prevailing Wage Boost Plus: Subterranean Parking Boost Plus: Day Care Center Boost Plus: Special Needs Soost Plus: Elevator Boost Subtotal Boost {1) Plus: Energy Efficienry Basis Boost Plus: Distributive Energy Boost Plus: Seismic Upgrade Boost Plus: Development lmpad Fees Total Adjusted Threshold Basis Max allowed 20°~ 7% 2% 2% 10% 39% 4% 5% 15% 20% 0% 0% 0% 0% Totai Unadjusted Eligible Basis Requested Eligible Basis $13,120,071 $21,680,000 $27,750,400 $15,457,850 $433,600 $78,441,921 $15,688,384 $0 $0 $0 $0 4% $3,137,677 09'0 $Q 0% $0 $8,315,308 $105,583,290 $97, 760,912 $97,760,912 (1) Under 2008 TCAC regulations, the total combined boost for prevailing wage, parking, day care center, special needs and elevator may not exceed 39 percent. City of Tustin Affordability Gap and Leveraged Financing Analysis Page C-i 1 ~ ~` ~^ ! 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O~$~•~V O~ yy ~ ~~~00 N E ~N~ ~ r : O ~ ~ M WW y3 O O 3 N~ ' ~ pp y~y~ S V W C O N• Y yyJ r u~f ~~~ ~ ~ M L ~ ~~~ ~ °„J r w r u ~' ~g94r ~ ~J~~~ N ~ ~~pp 1 pp M w r ~j j M N a iy"_~' y, v T$G d ~ 1a147Fv ~w~ ~ ~ ~~ w s ~" ~ ~~~ M ~ w ~ ~ ~~ ~ p i~N ~~ y~~ yp ,$ N~~~e y W W W ~ v ~ ~ M ~ yyyIy~~ r {y ~ M 1I~ O ~y V 1 ~~~J• ~ ~~~MN ~~~~~ ~~ ~~ ~~ ~ ~ ~~ n 4 D. Summary of Prepayment Eligible and Expiring Section 8 Contracts Tustin 2010-2015 Consolidated Plan Appendix E..~ U Q H U z 0 H~ uo W N C7 c z N zz ~~ xzz Qo~ dwH w az0 ~O~ (~ U wOu E.., w zx w~ ~ ~4 ~Q W w Q 0 v ~ v v ~ v v v g X W X W X W rn r rn ~ rn ~ rn N p, ~. ~ w ~ ~ N s. ~ N o ~~ p ~O ~ m n ,-. ~D ~ rn r+ i. v w w w w g N N N N O O O ~ ~ ~ ~ ~ z .p z ~~ z .p S ~ v~~ vy~ vv~ ~ ~~ ~v~ ~v~ ~v~ 8 z z z b ~ ~ " i " ~ cn~~r. ~ ~ n~~r. ~ ~ ~ v i,~~r. ~ ~ c~ G ~ o ~ ~ 0 •~ ~ o ~ ~ ~UQ ° ~UO¢ ° .UVf~d ° x dm m m ~ !~~ ~ ~1~ ~ O~ ~~°U UU ~ U V ~ V U ~ °~ ~~ U ~ ~~ `n ~ ~~ ~ ~ ~~ ~ ~' i. . ~ ~ P, ~ ~ ~ p, d ~ ~ p, p' MM ~ ~ N ~p ~ ~ Q `~ d Q ~ ~ ~ N ¢ p C7 nUrn ~ E-+~n2Urn ,L ~ E-~~2Urn ,,,~ N F~nZUrn ~ F ~ ~ ~ ~ v ~ rn ~ ~ ~ ~ ~rn ~ a~ bA N m ~ ~ yam, 'G N v o ~ o `°'~U`~ _ ¢ `~U ~ ¢ : ~ U ~ _~¢ ~U~ C7 ~o d' .~ W .~ N ~ o ~ O .~ 'O ~ ~ S v O > •~ M o „~ N ~ o0 U O •.G ~ N N l ~ , ~ ~ Om Y m 3 ~ M ~ ~ N H H C . [-~ f .. e H l~ -~ ., ~--+ H C~ E. Agencies Contacted Tustin 2010-2015 Consolidated Plan Appendix Veteran's 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 Community Counseling Assistance League of Tustin Families First Services P.O. Box 86 12012 Magnolia Street 1633 E. 4th Street, Suite 184 Tustin, CA 92780 Garden Grove, CA 92641-3346 Santa Ana, CA 92705 Tustin Area Historical Society & Danielle Haramio Community Services Program Museum Legal Aid Society of Orange County 395 El Camino Real 2101 N. Tustin Avenue 1821 E. Dyer Road, Suite 200 Tustin, CA 92780 Santa Ana, CA 92705 Santa Ana, CA 92705 Probation Community Action Assoc. Mardan Center of Educational Susan Alexander 1111 N. Main Street, # 176 Therapy New Horizons Santa Ana, CA 92701 1 Osborn 13821 Newport Avenue Irvine, CA 92604 Tustin, CA 92780 Helen Anderson Allen Baldwin Joan Basile Hunger Coalitions OC Community Housing Corp. Mary's Shelter 14452 Wildeve Lane 1833 E. 17th Street, Suite 207 P.O. Box 10433 Tustin, CA 92780 Santa Ana, CA 92701 Santa Ana, CA 92711 Barbara Benson Doug Bistry Helen Brown Tustin Area Council for Fine Arts O.C. Affordable Housing Civic Center Barrio P.O. Box 145 23861 EI Toro Road, Suite 207 980 W. 17th Street, Suite E Tustin, CA 92781 Lake Forest, CA 92640-4733 Santa Ana, CA 92706 Debbie Clinton Jerry Caminiti Patrick Carroll Learning for Life Disability Awareness Coalition Life Share 1211 East Dyer Road 3773 University Drive, #118 11421 Garden Grove Boulevard Santa Ana, CA 92705 Irvine, CA 92612 Garden Grove, CA 92643 Shirley Cohen Donna Core Julie Damon Feedback Foundation, Inc. Meals on Wheels The Seed Institute 1200 N. Knollwood Circle 1001 N. Tustin 27 Lemon Grove Anaheim, CA 92801 Santa Ana, CA 92707 Irvine, CA 92618 Megan Hartman John Drew Jennifer Feldstein Big Brothers & Big 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 Melinda Guinaldo John Von Glahn Suzanne Guthrie Family Service Association Assessment & Treatment Services Four H Clubs of Orange County 18001 Cowan, # c-d Center 1045 Arlington drive Irvine, CA 92714-6801 1981 Orchard Road Costa Mesa, CA 92626 Newport Beach, CA 92660 Mary Hadley Larry Haynes Colin Henderson Info Line Orange County Mercy House Transitional Living Friendship Shelter, Inc. 2081 Business Center Drive, suite Ctr. P.O. Box 4252 130 P.O. Box 1905 Laguna Beach, CA 92652 Irvine, CA 92715 Santa Ana, CA 92702 Elmer Hothus Warren Johnson Judy Johnson Christian Temporary Housing Salvation Army ESA/Corporate Office Facility 10200 Pioneer Road 23861 El Toro Road, Suite 207 2560 North Santiago Blvd. Tustin, CA 92780 Lake Forest, CA 92640-4733 Orange, CA 92867 Becky Johnson Elizabeth Jones Carol Burby Garrett Alliance for the Mentally Ill C.O.P.E.S. Tustin Public School Foundation 621 S. "B" Street, Suite B 2025 N. Broadway 150 El Camino Real, Suite 140 Tustin, CA 92780 Santa Ana, CA 92706 Tustin, CA 92780 Susan Knopick Robyn Class Doris La Magna Children's Bureau of So. Calif. Orange Children & Parents Together The Villa Center, Inc. 50 S. Anaheim Boulevard 3550 E. Chapman Avenue 910 North French Ananheim, CA 92805 Orange, CA 92869 Santa Ana, CA 92701 Lila Lieberthal Elaine Lintner Jim Lynch Jamboree Housing Corp. Orange County SPCA Tustin Chamber of Commerce 2081 Business Center Drive 9582 Hamilton Ave. #164 399 El Camino Real Irvine, CA 92714 Huntington Beach, CA 92646 Tustin, CA 92780 Theresa Marji Wendy Marohnic Brenda Martin Legal Aid of Orange County Human Options Second Step Laurel House 2101 N. Tustin Avenue P.O. Box 9445 13722 Fairmont Way Santa Ana, CA 92705 South Laguna, CA 92677 Tustin, CA 92780 Rowana McCoy Sherry McCulley Pamela McGovern Easter Seal Society, Inc. Legal Aid Society of Orange County Council on Aging Orange County 1801 E. Edinger Avenue, Suite 190 2101 N. Tustin Avenue 1971 E. 4th Street, Suite 200 Santa Ana, CA 92705 Santa Ana, CA 92705 Santa Ana, CA 92705-3917 Pat Digre Beverl Nestande Jim Miller Lutheran Social Services of Southern y Shelter for the Homeless Calif. Olive Crest Homes 15161Jackson Street 2560 North Santiago Blvd. 2130 E. Fourth Street, Suite 200 Midway City, CA 92655-1432 Orange, CA 92867 Santa Ana, CA 92705 Gary Oustad David Levy Barbara Resnick Boys & Girls Club of Tustin Fair Housing Council of Orange Western Dev. for Affordable 580 W. Sixth Street County Housing Tustin, CA 92780 201 S. Broadway 112 E. Chapman Avenue Santa Ana, CA 92701 Orange, CA 92867 Joyce Riley Jon Schlemmer Orange County Homeless Issues Learning Disabilities of Souther St. Vincent de Paul Center for Task Force Calif. Reconciliation P.O. Box 25772 2525 N. Grand Avenue, #N 1833 E. 17th Street Santa Ana, CA 92799 Santa Ana, CA 92703 Santa Ana, CA 92705-8629 Mary Atkinson Smith Susan Stokes Donald Taylor The Blind Children's Learning Turning Point Center for Families Veteran Charities of Orange County Center 2101 E. 4th Street, # 150-B 201 S. Sullivan Street 18542-B Vanderlip Avenue Santa Ana, CA 92705-3814 Santa Ana, CA 92704 Santa Ana, CA 92705 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 Jean Wegener Serving People in Need 151 Kalmus Drive, Suite H-2 Costa Mesa, CA 92626 Clyde Weinman Irvine Temporary Housing 6427 Oak Canyon Irvine, CA 92620 Justin Rice Orange County Council 1211 East Dyer Road Santa Ana, CA 92705 Carol Anne Williams Interval House P.O. Box 3356 Seal Beach, CA 90740 Annie Buchholz Special Olympics 2080 Suite B North Tustin Avenue Santa Ana, CA 92705 Paul Irby Tustin Community Foundation P.O. Box 362 Tustin, CA 92781-0362 Marc Marger AIDS Services Foundation 17982 Sky Park Circle, Suite J Irvine, CA 92614 Karen Weisenberger Consumer Credit Counseling Service P.O. Box 11330 Santa Ana, CA 92711 Thomas Whaling Shelter for the Homeless 24621 Ridgewood Circle Lake Forest, CA 92630 Bob Winandy Pilgrimage Family Therapy 23201 Mill Creak Road, Suite 220 Laguna Hills, CA 92653 Irene Rausch Human Options P.O. Box 53745 Irvine, CA 92612 Teresa Fowler Camp Fire USA 1505 E. 17th Street #225 Santa Ana, CA 92705 Tim Wells Episcopal Service Alliance 1872 Drew Way Orange, CA 92869 Kimberlee White The Eli Home, Inc. 3128 E. Chapman Avenue Orange, CA 92869 WATTS Up America Attn: Jim Oberst 1870 Ximeno Avenue, Suite 156 Long Beach, CA 90815 Anna Rubin Families Forward 9221 Irvine Blvd. Irvine, CA 92618 Cassandra Novak Goodwill of Orange County 12822 Garden Grove Blvd., Suite A Garden Grove, CA 92843 AGENCIES SUPPLYING STATISTICAL DATA Department of Housing and Urban Development (HUD) Department of Health and Human Services Substance Abuse & Mental Health Services Administration (SAMHSA) Southern California Association of Governments (SCAG) California Association of Realtors (CAR) Orange County Health Care Agency Behavioral Health Services Adult Mental Health Services 405 West 5th Street, Suite 550 Santa Ana, CA 92701 Applied Survey Research www.appliedsurveyresearch.org CalOptima 1120 West La Veta Avenue Orange, CA 92868 California Department of Finance California Department of Alcohol and Drug Programs Licensing and Certification Branch California Department of Social Services Community Care Licensing Division Office on Aging County of Orange 1300 S. Grand Avenue, Building B Santa Ana, CA 92705 Orange County Housing Authority (OCHA) 1770 North Broadway Santa Ana, CA 92706-2642 Orange County Health Care Agency Childhood Lead Poisoning Prevention Program P.O. Box 6009, Room 116-G Santa Ana, CA 92706 Orange County Health Care Agency HIV Planning and Coordination Unit 1725-B W. 17th Street Santa Ana, CA 92706 F. Legal Notices and Resolutions Tustin 2010-2015 Consolidated Plan Appendix OFFICIAL NOTICE CITY OF TUSTIN REQUEST FOR PROPOSALS FOR FAIR HOUSING SERVICES The City of Tustin Community Development Department is soliciting proposals to provide fair housing services for the City of Tustin for the CDBG Program Year 2010- 2011. The intent of this request for proposals is to seek a fair housing service provider to: • Provide fair housing information and services to Tustin residents; • Conduct community outreach and/or workshops regarding fair housing laws; and • Provide legal assistance regarding fair housing enforcement. Request for Proposals are due by 5:00 p.m. on January 8, 2010. Application package and scope of services can be obtained by contacting Edmelynne Huffer, Associate Planner, Community Development Department located at the Tustin City Hall, 300 Centennial Way, Tustin, California. City Hall business hours are as follows: Monday- Thursday from 7:30 a.m. to 5:30 p.m., and Friday from 8:00 a.m. to 5:00 p.m. No applications will be accepted after January 8, 2010. If you have any questions regarding this request for proposals, please call Edmelynne Hutter at (714) 573-3174. Pamela Stoker, City Clerk Publish: Tustin News -December 10, 2009 \\Cot-second\cdd-rda\Cdd\CDBGUegal notice for Fair Hsg RFP.doc OFFICIAL NOTICE OF PUBLIC HEARING CITY OF TUSTIN Notice is hereby given that the City Council of the City of Tustin, California, will hold a public hearing on February 16, 2010, at 7:00 p.m. in the Council Chambers located at 300 Centennial Way, Tustin, California. The City of Tustin is in the process of preparing/finalizing its five-year Consolidated Plan (2010-2015) which includes the one-year Action Plan for participation in the Community Development Block Grant (CDBG) program. To receive CDBG program funds, the U.S. Department of Housing and Urban Development (HUD) requires jurisdictions to prepare a "Consolidated Plan," afive-year planning document intended to identify a community's overall need for affordable and supportive housing, community development programs, social services, and economic opportunities for low- and moderate-income persons. The Consolidated Plan also outlines afive-year strategy to meet those needs and identifies resources and programs that would address them. In addition, in 2008, the City Council approved a three (3) multi-year funding cycle (2008-2011) for public service activities under the City's CDBG program. Approved public service programs/activities may continue to receive Year 3 funding (2010-11) ifthey meet criteria established by the City Council. The purpose of this public hearing is to discuss the Consolidated Plan Priority Needs, receive public input, and evaluate the performance of the approved public service activities for continuation of funding in Year 3. The City of Tustin's CDBG grant award for the 2010-2011 program year is anticipated to be approximately $809,354 based on the previous year (2009-10) funding allocation by the Federal Department of Housing and Urban Development (HUD). According to CDBG program regulations, a maximum of fifteen (15) percent of the total award may be used for public service programs/activities. Funding allocation for Year 3 public service activities will be adjusted proportionately to the actual HUD grant award received. If you challenge the subject items in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Tustin at, or prior to, the public hearing. If you require special accommodations, please contact the City Clerk at (714) 573-3025. Information relative to this item, including a list of approved public services activities, is on file in the Community Development Department and is available for public review at City Hall. Anyone interested in the information above may call the Community Development Department at (714) 573-3174. Pamela Stoker City Clerk Published: Tustin News February 4, 2010 \\Cot-second\cdd-rda\Cdd\CDBG\ConPlan 2010-2015\Notice 2010-11 ccm 1st meeting.doc OFFICIAL NOTICE CITY OF TUSTIN Notice is hereby given that Request for Funding applications are available for the City of Tustin, California, Fiscal Year 2010-2011 Community Development Block Grant (CDBG) non-public service activities only. On May 6, 2008, the City Council of the City of Tustin approved a multi- year funding request (2008-2011) for public service activities. No public service activities funding request will be accepted at this time. Funding requests for non-public service activities are due by 5:00 p.m. on March 22, 2010. Application packages for non-public service activities can be obtained from the Community Development Department located at the City Hall, 300 Centennial Way, Tustin, California. City Hall business hours are as follows: Monday-Thursday from 7:30 a.m. to 5:30 p.m., and Friday from 8:00 a.m. to 5:00 p.m. No applications will be accepted after March 22, 2010. The Housing and Community Act of 1974, as amended, created the Community Development Block Grant program to return federal funds to local communities for the purpose of developing viable urban communities by providing adequate housing and a suitable living environment and by expanding economic opportunities, specifically for low and moderate income persons. Grants are awarded to communities to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and the provision of improved community facilities and services. Communities are required to obtain citizen suggestions as to potential uses for these funds prior to submitting a formal application to the U.S. Department of Housing and Urban Development (HUD). Examples of eligible projects include: removal of architectural barriers, housing rehabilitation, commercial or industrial rehabilitation, and the acquisition, construction, or rehabilitation of shelters, senior center or health centers. Anyone interested in participating in the application process for Community Development Block Grant funds may call the Community Development Department at (714) 573-3174 for additional information. Publish: Tustin News, February 18, 2010. \\Cot-second\cdd-rda\Cdd\CDBGWOFA legal notice 2010-1 l.doc OFFICIAL NOTICE CITY OF TUSTIN The City of Tustin is in the process of preparing/finalizing its five-year Consolidated Plan (2010-2015) which includes the one-year Action Plan and Analysis of Impediments to Fair Housing Choice (AI) for participation in the Community Development Block Grant (CDBG) program. The City of Tustin is also preparing an amendment to the 2007-08 and 2008-09 Action Plans. 2010-2015 Consolidated Plan and 2010-2011 Action Plan To receive CDBG program funds, the U.S. Department of Housing and Urban Development (HUD) requires jurisdictions to prepare a "Consolidated Plan," afive-year planning document intended to identify a community's overall need for affordable and supportive housing, community development programs, social services, and economic opportunities for low- and moderate-income persons. The Consolidated Plan also outlines afive-year strategy to meet those needs and identifies resources and programs that would address them. The One-year Action Plan, a section of the Consolidated Plan, serves as the City of Tustin's application to HUD for CDBG funding. The City must submit an Action Plan annually for each of the five years covered by the Consolidated Plan. The purpose of the Action Plan is to detail exactly how the City will spend its annual allocation of funds to meet community needs identified in the Consolidated Plan. Analysis of Impediments to Fair HousingLChoice (AI) The Analysis of Impediments to Fair Housing Choice provides a review of policies, procedures, and practices within the community that affect the location, availability and accessibility of housing and current residential patterns and conditions related to fair housing choice. Amendment to the 2007-08 and 2008-09 Action Plans The City is proposing to revise the Program Year (PY) 2007-08 and 2008-09 Action Plans by reallocating unused CDBG funds as follows: PrOEram Year From To Amount PY 2007-08 Sycamore Ave. Storm Drain Red Hill Avenue Parking Bay $5,000.00 (at Pine Tree Park) PY 2007-08 Sycamore Ave. Storm Drain San Juan Sidewalk $31,975.38 PY 2008-09 Prospect Ave. Traffic Signal San Juan Sidewalk $17,866.71 The Draft 2010-2015 Consolidated Plan, 2010-11 One-year Action Plan, and AI, and Amendments to the 2007-08 and 2008-09 Action Plans will be available for public review and comment for thirty (30) days beginning March 1, 2010, and ending March 30, 2010. Copies are available at the Community Development Department, City of Tustin, 300 Centennial Way, Tustin, California 92780. The Final 2010- 2015 Consolidated Plan and 2010-11 Action Plan will be submitted to HUD by May 17, 2010. The 2010-11 Program Year for the CDBG program will begin July 1, 2010. Written comments pertaining to the Draft 2010-2015 Consolidated Plan, 2010-2011Action Plan, Analysis of Impediments to Fair Housing Choices, and Action Plan amendments must be submitted by March 30, 2010, at 5:00 p.m. and directed to: Edmelynne Hutter, City of Tustin, 300 Centennial Way, Tustin, California 92780. Information concerning the Draft Consolidated Plan and the One-year Action Plan should be directed to Edmelynne Hutter with the Community Development Department at (714) 573-3174. Pamela Stoker, City Clerk Publish: Tustin News -February 25, 2010 \\Cot-second\cdd-rda\Cdd\CDBG\ConPlan 2010-2015Vegal notice for ConPlan-Action Plan pub review.doc OFFICIAL NOTICE OF PUBLIC HEARING CITY OF TUSTIN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2010-2015 CONSOLIDATED PLAN PROGRAM YEAR 2010-11 FUNDING ALLOCATION AND ACTION PLAN AND PREVIOUS PROGRAM YEARS' ACTION PLAN AMENDMENT Notice is hereby given that the City Council of the City of Tustin, California, will hold a public hearing on April 20, 2010, at 7:00 p.m. in the Council Chambers located at 300 Centennial Way, Tustin, California. The purpose of the meeting is to review the 2010-2015 Consolidated Plan, Program Year 2010-11 Action Plan and funding allocation, and amendments to previous program year Action Plans for submission to the U.S. Department of Housing and Urban Development (HUD). The Housing and Community Act of 1974, as amended, established the Community Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing adequate housing, suitable living environment, and by expanding economic opportunities, specifically for low- and moderate-income persons. HUD has not announced the funding allocation for the City, however, the anticipated amount for CDBG allocation for fiscal year 2010-11 is approximately $808,354. Actual funding amounts will be adjusted based on HUD actual allocation. 2010-2015 Consolidated Plan and 2010-2011 Action Plan To receive CDBG program funds, the U.S. Department of Housing and Urban Development (HUD) requires jurisdictions to prepare a "Consolidated Plan," afive- yearplanning document intended to identify a community's overall need for affordable and supportive housing, community development programs, social services, and economic opportunities for low- and moderate-income persons. The Consolidated Plan also outlines afive-year strategy to meet those needs and identifies resources and programs that would address them. The Action Plan is a mandated annual submission requirement of HUD for participation in the CDBG process. The Action Plan describes the activities the City will undertake during the program year to address the priority needs of housing and community development. The Action Plan will include a program budget for disbursement of CDBG funds to activities that will be undertaken during the 2010-11 fiscal year. Proposed Funding Allocation of CDBG Funds for Fiscal Year 2010-11 The City Council will consider a program budget for fiscal year 2010-11 to fund Public Services (Year 3), public facilities and improvement, rehabilitation and preservation, and program administration activities that will be undertaken during the program year. Amendment to the 2007-08 and 2008-09 Action Plans The City is proposing to revise the Program Year (PY) 2007-08 and 2008-09 Action Plans by reallocating unused CDBG funds as follows: Program Year From To Amount PY 2007-08 TYFC Parking Lot Pine Tree Park Concrete $33,004.14 Fence Replacement PY 2007-08 Sycamore Ave. Red Hill Avenue Parking Bay $5,000.00 Storm Drain (at Pine Tree Park) PY 2007-08 Sycamore Ave. San Juan Sidewalk $31,975.38 Storm Drain PY 2008-09 Prospect Ave. San Juan Sidewalk $17,866.71 Traffic Signal If you challenge the subject items in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Tustin at, or prior to, the public hearing. If you require special accommodations, please contact the City Clerk at (714) 573- 3025. Information relative to this item, including a list of proposed projects, is on file in the Community Development Department and is available for public review at City Hall. Anyone interested in the information above may call the Community Development Department at (714) 573-3174. Pamela Stoker City Clerk Published: Tustin News, April 8, 2010 \\Cot-second\cdd-rda\Cdd\CDBG\ConPlan 2010-2015\Notice 2010-11 ccm 2nd meeting.doc G. Summary of Citizen Comments Tustin 2010-2015 Consolidated Plan Appendix Summary of Citizen Comments The formal public comment period on the complete draft Consolidated Plan commenced on March 1, 2010 and closed on March 30, 2010. Publication of the availability of the Draft Consolidated Plan was published on February 25, 2010 in the Tustin Weekly. No comments were received in response to the draft 2010-2015 Consolidated Plan for the City of Tustin. H. Monitoring Program Tustin 2010-2015 Consolidated Plan Appendix CITY OF TUSTIN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUBRECIPIENT ON-SITE MONITORING PROCESS MONITORING CHECKLIST Goal: To standardize the review process for on-site monitoring visits to CDBG Subrecipients during program year. Objectives: To ensure that all Subrecipients are monitored in important areas of program administration and regulatory compliance. 1.0 SUBRECIPIENT INFORMATION: 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 O Area Benefit D Limited Clientele O Job Retention O SlumBlight Area Basis Name of Subrecipients Program/Activity description: Project Location: Eligibility (Enter CDBG Citation): National Objective: ~ Slum/Blight Urban Renewal Local Objective: Date of On-Site Monitoring Visit: Location of On-Site Visit: Name/Title of Person Interviewed: 2.0 PERFORMANCE EVALUATION REVIEW: 2.1 2.2 Contract Objectives: Contract Statement of Work: D Housing O Job Creation O Slum/Blight Spot Basis D Urgent Needs Monitoring Checklist City of Tustin Page 1 of 12 2.3 Contract/Project Schedule: 2.4 Contract Budget: 2.6 a. What activities are outlined within the Agreement? b. Describe the actual program and how the actual CDBG funds are used: Summary: The activities actually funded with CDBG funds are consistent with activities outlined within agreement with City? O Yes ONo If No, Explain: 2.7 a. What is the current status of the project? b. Will the CDBG funds be expended by the termination of the Agreement? O Yes O No Summary: The actual progress on completing CDBG funded activities/tasks is consistent with schedule outlined with the agreement with City? O Yes ONo If No, explain: 2.8 a. CDBG funds are used for what expenditures? (i.e. staff salaries, construction costs, operating expenses, etc) b. Are the expenditures consistent with the program/project outlined in the Agreement? (i.e. public services, public improvement and facilities, handicapped accessibility improvement, etc) O Yes O No If No, Explain: From: To: Monitoring Checklist City of Tustin Page 2 of 12 Summary: The actual expenditures of CDBG funds are consistent with funds allocated by the Ciry as outlined within the agreement with Ciry. O Yes ONo If No, Explain: 2.9 Accomplishments. a. Number of participants: b. Number of Tustin residents: c. Other significant accomplishments: 2.10 a. Has the organization violated any Federal regulations related to the CDBG program? O Yes O No If Yes, Explain: b. Is the organization working towards positive progress in the completion of the CDBG funded activity in meeting the National and Local objectives of the CDBG program? O Yes D No If No, Explain c. Summarize of any other deficiencies noted in performance of the Subrecipient: 2.11 Summary of Corrective Actions/Deadlines: Monitoring Checklist City of Tustin Page 3 of 12 2.12 Technical Assistance Needed: ~ Yes O No 3.0 RECORD-KEEPING SYSTEMS: 3.1 a. Are the following records maintained by the Subrecipient to provide: 1. A full description of the activities assisted with CDBG funds; D Yes O No 2. The activity meets one of the national objectives; ~ Yes O No 3. Determinations have been made for all eligibility requirements; D Yes ~ No 4. Evidence of compliance with federal regulations for acquisition, displacement, relocation and replacement housing if applicable; O Yes O No O N/A 5. Evidence of compliance with federal requirements specified in Subpart K of 24 CFR Part 570 if applicable; D Yes D No O N/A 6. Characteristics and location of beneficiaries; O Yes O No 7. Allowability of costs; O Yes O No 8. The status of the case/project O Yes O No b. How is cumulative data on its activities compiled for inclusion in periodic reports? _ Summary: The Subrecipient's filing system is orderly, comprehensive and up-to-date. O Yes ONo If No, Explain: 3.2 a. b. c. Where are the files/records stores: Who has access to the records? How are files/records secured? (i.e. cabinets locked, limited access) Summary: The Subrecipient has appropriate procedures in place to ensure the confidentiality/safety of records? O Yes ONo If No, Explain: Monitoring Checklist City of Tustin Page 4 of 12 3.3 a. b, c. Where are individual client files kept? Where are program files kept? Where are financial records kept? Summary: The Subrecipient records stored in a location which provides for easy access/availability in terms of review by appropriate agencies. O Yes D No If No, Explain: 3.4 a. Is the subrecipient aware of the regulations for the retention of records for a minimum of three years? O Yes D No b. How long does the subrecipient retain records? c. How are they store/retained? Summary: The Subrecipient has procedures in place to retain records related to the CDBG funding for a minimum of three (3) years? O Yes ONo If No, Explain: 3.5 a. How does the Subrecipient separate its CDBG expenditures from other expenditures? Summary: The Subrecipient has procedures in place to identify CDBG related expenses from its other expenditures? O Yes ONo If No, Explain: Monitoring Checklist City of Tustin Page 5 of 12 3.6 The Subrecipient is maintaining adequate records of all required information, such as information on income characteristics of beneficiaries, racial/ethnic groups being served, and number and type of households being served? D Yes O No If No, Explain: 3.7 Is the Subrecipient maintaining documentation such as time sheet for charges to award salaries and wages? O Yes D No If No, Explain: 4.0 FINANCIAL MANAGEMENT SYSTEM: 4.1 a. Does the system of internal controls include specified job responsibilities, aformal system of authorization and supervision, separation of duties, qualified staff, control over access to assets, bank forms, and other confidential documents, and periodic reconciliation? O Yes ~ No b. Do the accounting records adequately identify the sources and application of CDBG funds? O Yes O No c. Are the costs being reimbursed by CDBG funds allowed under the CDBG program rules and regulation? (i.e. reasonable, necessary, and directly related to the grant). O Yes O No d. Does the subrecipient maintain control over the budget for the CDBG funded activity? (i.e. comparison of budget with actual expenditures) O Yes O No e. Is there a system which projects the cash needs of the subrecipient and minimizes the time between the receipt of funds to the actual disbursements of funds? D Yes O No Monitoring Checklist City of Tustin Page 6 of 12 £ Does the subrecipient provide a financial report which shows the amount budgeted for each CDBG activity, reimbursements received to date, actual expenditures for the current period and to date, and current encumbrances/obligations in addition to expenditures? O Yes O No g. What were the results of the independent audit, if required? Summary: Are the Subrecipient's accounting policies and procedures consistent with federal regulations? O Yes ONo If No, Explain: 4.2 a. Is a cash receipts journal kept? Does the cash receipts journal show when funds are received, in what amounts and from what sources? O Yes O No b. Is a cash disbursements journal kept? Does the cash disbursements journal document when the expenses were incurred, how much was spent, to whom it was paid, and for what purpose? O Yes O No c. Is a payroll journal kept? Does the payroll journal document expenses on salaries and benefits, and distinguishes different categories? O Yes O No Summary: Does the Subrecipient's financial management system provide for an accurate accounting of revenues and expenditures? O Yes ONo If No, Explain: 4.3 a. Is the Information transferred into a general ledger? (The general ledger summarizes in chronological order the activity and financial status of all the accounts of an organization) O Yes ~ No Monitoring Checklist City of Tustin Page 7 of 12 b. Do the accounting records contain reliable and up-to-date information about the sources and uses of funds, including: 1. Grant received? D Yes O No 2. Current Authorizations and obligations of CDBG funds? D Yes O No 3. Unobligated balances? ~ Yes O No 4. Assets and liabilities? O Yes D No 5. Program Income? O Yes ~ No 6. Actual outlays and expenditures? O Yes O No c. Posting and trial balances are performed on a regular basis? O Yes O No Summary: Do the Subrecipient's accounting records provide for accurate, current and complete disclosure of financial results? O Yes ONo If No, Explain: 4.4 a. Does the subrecipient maintain files of original sources documentation (receipts, invoices, canceled checks, etc) for all financial transactions? O Yes O No Summary: Are all costs supported by appropriate documentation (i.e., expense receipts, time-sheets, cost allocation plans, etc)? O Yes ~No If No, Explain: 4.5 a. Does the subrecipient receive program income? O Yes O No b. Does the subrecipient ensure that all the program income is used for permitted activities and that such program income is expended before requesting further reimbursement from the CDBG funds for the same activity? O Yes ~ No Summary: Are appropriate procedures in place to account for program income related to Monitoring Checklist City of Tustin Page 8 of 12 the use of CDBG funds? O Yes ONo Explain: 4.6 a. Has the independent audit been submitted? O Yes O No b. Is the City on the mailing list for receipt of the independent audit? O Yes O No Summary: Is the Subrecipient required to submit an independent financial audit to the City? O Yes ONo If so, have proper arrangements been made to conduct the audit? O Yes ONo Explain 4.7 a. Is the subrecipient aware of the regulations for the use of real or personal property to meet the national objectives of the CDBG program? O Yes O No b. Is the subrecipient aware of the regulations for the disposition of real or personal property when such property is no longer necessary for the CDBG funded activity? O Yes O No c. What procedures are in place for the disposition of any real or personal property acquired in part or in whole with CDBG funds? Summary: Does the Subrecipient have appropriate procedures in place to allow for reversion of assets as related to the use of CDBG funds? O Yes ONo Explain: Monitoring Checklist City of Tustin Page 9 of 12 5.0 ANTI-DISCRIMINATION: 5.1 a. Does the subrecipient have employment guidelines or policies to assure equal employment opportunities to all persons regardless of race, color, national origin, sex or handicap? D Yes O No b. Does the subrecipient maintain data indicating the racial/ethnic character of employees of a program funded in whole or part with CDBG funds? O Yes O No c. If applicable, does the subrecipient maintain documentation of the actions the subrecipient has carried out with its resources to remedy or ameliorate any conditions limiting fair housing choice in the community or other actions which demonstrates its support of fair housing? O Yes O No d. Does the subrecipient allow participation in the program regardless of race, color, national origin, sex or handicap? O Yes D No e. Does the subrecipient reasonably accommodate persons who may be physically limited by a handicap? O Yes O No £ If applicable, does the subrecipient take affirmative steps to assure that minority businesses and women's business enterprises have an equal opportunities to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction, or services? O Yes D No Summary: Does the subrecipient have appropriate procedures in place for Civil Rights? Non-discrimination? Equal Employment Opportunities? Fair Housing Compliance? Access to disabled? Opportunities for Women and Minority Business Enterprises? D Yes ONo Explain: Monitoring Checklist City of Tustin Page 10 of 12 5.2 a. Is the subrecipient aware that they are prohibited from using CDBG funds to finance the use of facilities or equipment for religious purpose or to engage in other religious activities? O Yes O No b. What procedures are in place to prohibit such activity? Summary: Does the subrecipient have appropriate procedures in place to prohibit religious activities as related to the use of CDBG funds? O Yes ONo Explain: 5.3 a. Is the subrecipient aware that they are prohibited from using CDBG funds to finance the use of facilities or equipment for political purposes or to engage in other partisan political activities, such as voter registration, sponsoring candidate forums, etc. D Yes D No b. What procedures are in place to prohibit such activities? Summary: Does the subrecipient have appropriate procedures in place to prohibit use of CDBG funds for lobbying or other political activities? O Yes ONo If No, Explain: 6.0 MISCELLANEOUS COMMENTS/CONCLUSIONS: Are there other issues that have not yet been addressed? Monitoring Checklist City of Tustin Page 11 of 12 ON-SITE MONITORING VISIT CONDUCTED BY: Signature Name Date Title SUBRECIPIENT OFFICIALS CONTACTED (Name & Title): Signature Signature Name Name Title Title Date Date \\Cot-second\cdd-rda\Cdd\CDBG\monitoring checklist.doc Rev: 5/28/98 Monitoring Checklist City of Tustin Page 12 of 12 CITY OF TUSTIN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUBRECIPIENT ON-SITE MONITORING PROCESS MONITORING CHECKLIST (Instructions) Goal: To standardize the review process for on-site monitoring visits to CDBG subrecipients during program year. Objectives: To ensure that all subrecipients are monitored in important areas of program administration and regulatory compliance. LO SUBRECIPIENT INFORMATION: 1.1 Name of subrecipient 1.2 Program/Activity Funded: 1.3 National Objective: 1.4 Local Objective: 1.5 Date of On-Site Monitoring Visit: 1.6 Location of On-Site Visit: 2.0 PERFORMANCE EVALUATION REVIEW: 2.1 Are activities actually funded with CDBG funds consistent with activities outlined within agreement with City? a. What activities are outlined within the Agreement? b. Describe program and how CDBG funds are used. 2.2 Is the actual progress on completing CDBG funded activities/tasks consistent with schedule outlined with the agreement with City? a. What is the current status of the project? b. Will the CDBG funds be expended by the termination of the Agreement? 2.3 Are the actual expenditures of CDBG funds consistent with funds allocated by the City as outlined within the agreement with City? a. CDBG funds are used for what expenditures? (i.e. staff salaries, construction costs). b. Are the expenditures consistent with public service, public facilities & improvement projects or other projects? Monitoring Checklist (Instructions) Page 2 2.4 Summarize major accomplishments of the subrecipient a. How many participants are there in the project? b. How many are Tustin residents? c. Other significant accomplishments? 2.5 Summarize any deficiencies noted in performance of the subrecipient a. Has the organization violated any federal regulations regarding the CDBG program? b. Is the organization working towards positive progress in the completion of the CDBG funded activity or in meeting the national or local objectives of the CDBG program? 3.0 RECORD-KEEPING SYSTEMS: 3.1 Is the subrecipient's filing system orderly, comprehensive and up-to-date? a. Records should be maintained to provide: 1. A full description of the activities assisted with CDBG funds; 2. The activity meets one of the national objectives; 3. Determinations have been made for all eligibility requirements; 4. Evidence of compliance with federal regulations for acquisition, displacement, relocation and replacement housing if applicable; 5. Evidence of compliance with federal requirements specified in Subpart K of 24 CFR Part 570 if applicable; 6. Characteristics and location of beneficiaries; 7. Allowability of costs; and 8. The status of the case/project. b. How is cumulative data on its activities compiled for inclusion in periodic reports? 3.2 Does the subrecipient have appropriate procedures in place to ensure the confidentiality/safety of records? a. Where are the files/records kept? b. Who has access to records? c. How are files/records secured? (i.e. cabinets locked, limited access) Monitoring Checklist (Instructions) Page 3 3.3 Are the subrecipient records stored in a location which provides for easy access/availability in terms of review by appropriate agencies? a. Where are individual client files kept? b. Where are program files kept? c. Where are financial records kept? 3.4 Does the subrecipient have procedures in place to retain records related to the CDBG funding for a minimum of three (3) years? a. Is the subrecipient aware of the regulations for the retention of records for a minimum of three years? b. How long does the subrecipient retain records? c. How are they store/retained? 4.0 FINANCIAL MANAGEMENT SYSTEM: 4.1 Are the subrecipient's accounting policies and procedures consistent with federal regulations? a. Does the system of internal controls include specified job responsibilities, aformal system of authorization and supervision, separation of duties, qualified staff, control over access to assets, blank forms, and other confidential documents, and periodic reconciliation. b. Do the accounting records adequately identify the source and application of CDBG funds? (see Question 4.2) c. Are the costs being reimbursed by CDBG funds allowed under the CDBG program? (i.e. reasonable, necessary, and directly related to the Grant). d. Does the subrecipient maintain files of original source documentation (receipts, invoices, canceled checks, etc.) for all financial transactions? (see Question 4.4). e. Does the subrecipient maintain control over the budget for the CDBG funded activity? (i.e. comparison of budget with actual expenditures). f. Is there a system which projects the cash needs of the subrecipient and minimizes the time between the receipt of funds to the actual disbursement of funds? g. Does the subrecipient provide a financial report which shows the amount budgeted for each CDBG activity, reimbursements received to date, actual expenditures for the current period and to date, and current encumbrances/obligations in addition to expenditures? (see Question 4.3). h. What were the results of the independent audit, if required? (see Question 4.6). Monitoring Checklist (Instructions) Page 4 4.2 Does the subrecipient's financial management system provide for an accurate accounting of revenues and expenditures? a. Is a cash receipts journal kept? 1. Does the cash receipts journal show when funds are received, in what amounts and from what sources? b. Is a cash disbursements journal kept? 1. Does the cash disbursements journal document when the expenses were incurred, how much was spent, to whom it was paid, and for what purpose? c. Is a payroll journal kept? 1. Does the payroll journal document the expenses on salaries and benefits, and distinguishes different categories? 4.3 Do the subrecipient's accounting records provide for accurate, current and complete disclosure of financial results? a. Is the information transferred into a general ledger? (The general ledger summarizes in chronological order the activity and financial status of all the accounts of an organization.) b. Do the accounting records contain reliable and up-to-date information about the sources and uses of funds, including: 1. Grants received; 2. Current authorizations and obligations of CDBG funds; 3. Unobligated balances; 4. Assets and liabilities; 5. Program income; and 6. Actual outlays and expenditures. c. Posting and trial balances are performed on a regular basis. 4.4 Are all costs supported by appropriate documentation (i.e., expense receipts, time-sheets, cost allocation plans, etc.)? a. Does the subrecipient maintain files of original source documentation (receipts, invoices, canceled checks, etc.) for all financial transactions? 4.5 Are appropriate procedures in place to account for program income related to the use of CDBG funds? a. Does the subrecipient receive program income? b. Does the subrecipient ensure that all program income is used for permitted activities and that such program income is expended before requesting further reimbursement from the CDBG funds for the same activity? 4.6 Is the subrecipient required to submit a third party financial audit to the City? If so, have Monitoring Checklist (Instructions) Page 5 proper arrangements been made to conduct the audit? a. Has the independent audit been submitted? b. Is the City on the mailing list for receipt of the independent audit? 4.7 Does the subrecipient have appropriate procedures in place to allow for reversion of assets as related to the use of CDBG funds? a. Is the subrecipient aware of the regulations for the use of real or personal property to meet the national objectives of the CDBG program? b. Is the subrecipient aware of the regulations for the disposition of real or personal property when such property is no longer necessary for the CDBG funded activity? c. What procedures are in place for the disposition of any real or personal property acquired in part or whole with CDBG funds? 5.0 ANTI-DISCRIMINATION: 5.1 Does the subrecipient have appropriate procedures in place for Civil Rights? Nondiscrimination? Equal Employment Opportunities? Fair Housing Compliance? Access to disabled? Opportunities for Women and Minority Business Enterprises? a. Are required notices posted in plain view? b. Does the subrecipient have employment guidelines or policies to assure equal employment opportunities to all person regardless of race, color, national origin, sex or handicap? c. Does the subrecipient maintain data indicating the racial/ethnic character of employees of a program funded in whole or part with CDBG funds? d. If applicable, does the subrecipient maintain documentation of the actions the subrecipient has carried out with its resources to remedy or improve any conditions limiting fair housing choice in the community or other actions which demonstrates its support of fair housing? e. Does the subrecipient allow participation in the program regardless of race, color, national origin, sex, or handicap? f. Does the subrecipient reasonably accommodate persons who may be physically limited by a handicap? g. If applicable, does the subrecipient take affirmative steps to assure that minority businesses and women's business enterprises have an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies, equipments, construction, or services. Monitoring Checklist (Instructions) Page 6 5.2 Does the subrecipient have appropriate procedures in place to prohibit religious activities as related to the use of CDBG funds? a. Is the subrecipient aware that they are prohibited from using CDBG funds to finance the use of facilities or equipment for religious purposes or to engage in other religious activities? b. What procedures are in place to prohibit such activities? 5.3 Does the subrecipient have appropriate procedures in place to prohibit use of CDBG funds for lobbying or other political activities? a. Is the subrecipient aware that they are prohibited from using CDBG funds to finance the use of facilities or equipment for political purposes or to engage in other partisan political activities, such as voter registration, sponsoring candidate forums, etc? b. What procedures are in place to prohibit such activities? 6.0 MISCELLANEOUS COMMENTS/CONCLUSIONS: a. Are there other issues that have not yet been addressed? S:\Cdd\CDBG\monitoring instruction.doc I. Affordable Housing Ordinances Tustin 2010-2015 Consolidated Plan Appendix ORDINANCE NO. 1372 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING SECTION 9111 THROUGH 9142 (CODE AMENDMENT 09-006) OF THE TUSTIN CITY CODE TO UPDATE DENSITY BONUS LAW IN ACCORDANCE WITH STATE LAW The City Council of the City of Tustin does hereby ordain as follows: Section 1. Section 9112 of the Tustin City Code is hereby revised as follows: "Development Standards" naea-ns includes a site or construction conditions, including but not limited to, a height limitation, a setback requirement, or a parking ratio that apply to a residential development pursuant to any ordinance, general plan element, specific plan, or other local condition, law, policy, resolution, or regulation. "Density Bonus" means a density increase over the otherwise maximum allowable residential density, . as of the date of application by the applicant to the city. The applicant may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in Section 9121. "Maximum Allowable Residential Density" means the ' ensity allowed under the zoning ordinance and land use element of the general plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail with the exception of the MCAS Tustin Specific Plan; which excludi~es the density bonus allowed by this Chapter. Section 2. Section 9121(a)(3) of the Tustin City Code is hereby revised as follows: (3) Senior citizen housing development or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. For housing developments meeting such criteria, the density bonus shall be 20 percent of the number of senior housing units; or Section 3. Section 9121(a)(6) of the Tustin City Code is hereby added as follows: (6) For the purposes of this section, "total units" or "total dwelling units" does not include units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. Section 4. Section 9121(b) of the Tustin City Code is hereby revised as follows: (b) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City as provided for in this subsection, the City shall grant a density bonus, the amount of which shall be as specified in Section 9122. This increase shall be in addition to any increase in density mandated by subsection (a), into a maximum combined mandated density increase of thirty- five (35) percent if an applicant seeks both the increase required pursuant to this subsection and subsection (a). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subsection shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subsection if all of the following conditions are met: (1) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application. (2) The deve4ep~eet developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than ten (10) percent of the number of residential units of the proposed development. (3) The transferred land is at least one (1) acre in size or of sufficient size to permit development of at least forty (40) units, has the appropriate general plan designation, is appropriately zoned at the density described in paragraph (3) of subdivision (c) of Government Code Section 65583.2 for development of affordable housing on land suitable for residential development, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and development standards to make the development of affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that the e~ Camay t subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Government Code Section 65583.2 if the design is not reviewed by the City prior to the time of transfer. (4) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with subsections 9131(d) and (e) which shall be recorded on the property at the time of dedication. (5) The land is transferred to the City or to a housing developer approved by the City. The City may require the applicant to identify and transfer the land to the developer. (6) The transferred land shall be within the boundary of the proposed development or, if the City agrees, within one-quarter (1/4) mile of the boundary of the proposed development. (7) A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map parcel map, or residential development application. Section 5. Section 9123(a)(3) of the Tustin City Code is hereby added as follows: (3) The concession or incentive would be contrary to state of federal law. Section 6. Section 9123(c) of the Tustin City Code is hereby revised as follows: (c) Incentives or concessions may include the following: 1. A reduction of site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the State California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, which result in identifiable, financially sufficient, and actual costs reductions, including but not limited to: a) Reduced minimum lot size. b) Reduced minimum setbacks. c) Reduced minimum street standards such as reduced minimum street width. d) Increased maximum lot coverage. ~ e) Increased building height. ~ Reduced ratio of vehicular parking spaces that would otherwise be required. 2. Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area, including the City's General Plan, where the proposed housing project will be located; or 3. Other regulatory incentives or concessions proposed by the applicant or the City that result in identifiable, financially sufficient, and actual cost reductions. 4 The granting of a concession or incentive shall not be interpreted in and of itself to require a general plan amendment zoning change or other discretionary approval. This provision is declatory of existing law. Section 7. Section 9124(a) of the Tustin City Code is hereby revised as follows: (a) An Applicant may submit to the City a proposal for the waiver or reduction of development standards and may request a meeting with the City. #easit~le- A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 9123. Section 8. Section 9131(d) of the Tustin City Code is hereby revised as follows: (d) An applicant shall agree to, and the City shall ensure, continued affordability of all low- and very low income units that qualified the applicant for the award of the density bonus for at least thirty (30) years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program, 33898-et-seq-}. Rents for the lower income density bonus met units shall be set at an affordable rent as defined in Section 50053 of the Health and Safety Code. Owner-occupied units shall be available at an affordable housing cost as defined in Section 50052.5 of the Health and Safety Code. Section 9. Section 9131(e) of the Tustin City Code is hereby revised as follows: (e) An applicant shall agree to, and the City shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the density bonus in the common interest development, as defined in Section 1351 of the Civil Code, are persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. The City shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity-sharing agreement: (1) Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The local government shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within tree-{~j five 5 years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (2) For purposes of this subsection, the I'esal-~ever~eat's Ci 's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (3) For purposes of this subdivision, the City's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale. PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting on the 19th day of January, 2010. ATTEST: Pamela'~Stoker, Ci rk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR ORDINANCE NO. 1372 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 (5); that the above and foregoing Ordinance No. 1373 was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 19th day of January, 2010 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: (~ None ~~~ None ~~~ NnnP ~o> P ELA STOKER, City Clerk Published: ORDINANCE NO. 1320 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING ARTICLE 9, CHAPTER I, GOVERNING INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING The City Council of the City of Tustin hereby ordains as follows: SECTION 1. PURPOSE. The Purpose of this ordinance is to Development Incentive provisions: (1) to 2005 Amendment of Government Code lower income housing units; and (2) to applicable to affordable housing. SECTION 2. amend the City's Affordable Housing comply with the California Legislature's Section 65915 governing incentives for ;omply with other changes in state law Chapter 1 of Article 9 of the Tustin Municipal Code. Title 9, Chapter 1, of the Tustin Municipal Code entitled, Incentives for the Development of Affordable Housing, is hereby amended in its entirety as set forth below: CHAPTER I INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING CHAPTER INDEX PART I GENERAL 9111 PURPOSE AND INTENT 9112 DEFINITIONS PART 2 IMPLEMENTATION AND INCENTIVES 9121 IMPLEMENTATION 9122 DENSITY BONUS 9123 INCENTIVES OR CONCESSIONS 9124 WAIVER 9125 OPTIONAL ADDITIONAL ASSISTANCE PART 3 DEVELOPMENT REQUIREMENTS 9131 STANDARD REQUIREMENTS PART 4 APPLICATION AND REVIEW 9141 APPLICATION REQUIREMENTS AND REVIEW 9142 HOUSING INCENTIVE AGREEMENT Page 1 CHAPTER I INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING PARTI GENERAL 9111 PURPOSE AND INTENT The purpose of this Chapter is to provide incentives for the production of housing for very low-, low-, moderate-income, or senior citizens in accordance with California Law pertaining to density bonuses. The intent of this Chapter is to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the City's Housing Element. The regulations and procedures set forth in this Chapter shall apply throughout the City with the exception of area identified as the "MCAS Tustin Specific Plan." Sections of the California Government Code referenced in this Chapter and application forms for complying with this Chapter, shall be made available to the public. 9112 DEFINITIONS Whenever the following terms are used in this Chapter, they shall have the meaning established by this section: "Affordable Housing Cost", means as defined in Health and Safety Code Section 50052.5. The term applies to for-sale units. In the Housing Incentive Agreement, in its sole discretion, the City or Agency, as applicable, shall exercise the options specified in Section 50052.5(b)(3) and/or (4), and if the Department of Housing and Community Development adopts regulations pursuant to Section 50052.5(c), the City or Agency, as applicable, shall consider the regulations for purposes of determining Affordable Housing Cost. `Affordable Rent" means as defined in Health and Safety Code Section 50053. The term applies to rental units. `Agency" means the Tustin Community Redevelopment Agency. "Applicant" means a developer or owner who desires to construct five or more dwelling units. "Child Care Facility' means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers. 2 "Common Interesf Development" means a community apartment project, a condominium project, a planned development, or a stock cooperative as defined in Section 1351 of the Civil Code. "Concession or Incentive" means the concession(s) and incentive(s) as specified in California Government Code Section 65915(1) and Section 9123. "Density Bonus" means a density increase over the otherwise Maximum Allowable Residential Density, (unless the Applicant elects to develop a lower percentage) for a Housing Development meeting the criteria of Section 9121. "Density Bonus Units" means those residential units granted pursuant to the provisions of this Chapter which exceed the otherwise Maximum Allowable Residential Density for the development site. When calculating the number of permitted Density Bonus units, any fractions of units shall be rounded to the next whole number. "Development Standards" means site or construction conditions that apply to a residential development pursuant to any ordinance, general plan element, specific plan, or other local condition, law, policy, resolution, or regulation. "Directo-" means the City's Director of Community Development or designee. "Housing Development' means construction projects consisting of five (5) or more residential units, including single family and multi- family units for sale or for rent. ~, Housing Development also includes a subdivision or Common Interest Development, approved by the City and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4 of the Government Code, where the result of the rehabilitation would be a net increase of at least five (5) or more residential units. "Housing Incentive Agreement" means a legally binding agreement between an Applicant and the City and/or the Agency to ensure that the requirements of this Chapter are satisfied. The agreement among other things shall establish the number of Target Units, size, location, terms and conditions of affordability, production schedule, and may be part of a larger Disposition and Development or Regulatory Agreement. "Low Income Household" means households whose income does not exceed the lower income limits applicable to Orange County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the State California Health and Safety Code. "Maximum Allowable Residential Density" means the maximum number of residential units permitted by the Land Use Element of the City's General Plan and Zoning Ordinance, with the exception of the MCAS Tustin Specific Plan, excluding the Density Bonus allowed by this Chapter. 3 "Non-Restricted Unit' means all units within a Housing Development excluding the Target Units. "Persons and Families of Moderate Income" means persons and families of low or moderate income whose income exceeds the income limit for lower income households and as defined in Health and Safety Code section 50093. "Persons and families of Low or Moderate Income" means persons and families whose income does not exceed 120 percent of area median income adjusted for family size by the State Department of Housing and Community Development in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. "Senior Citizen" means, a person 62 years of age or older, or 55 years of age living in a Senior Citizen Housing Development. "Senior Citizen Housing Development" means, as more fully defined in Civil Code Section 51.3 and 51.12, a residential development developed, substantially rehabilitated, or substantially renovated for Senior Citizens that has at least 35 dwelling units. `Target Unit(s)" means a dwelling unit(s) within a Housing Development which will be reserved for sale or rent to, and is made available at an Affordable Rent or Affordable Housing Cost to very low, low, or moderate households, or is(are) units in a senior Housing Development. "Very Low Income Households" means households whose income does not exceed the very low income limits applicable to Orange County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. PART 2 IMPLEMENTATION AND INCENTIVES 9121 IMPLEMENTATION A Housing Development meeting the requirements of this section is eligible for a Density Bonus. The granting of a Density Bonus shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval. (a) The City shall grant one Density Bonus, the amount of which shall be as specified in Section 9122, and a Concession(s) or Incentive(s), as described in Section 9123, when an Applicant seeks and agrees to construct a Housing Development, excluding any units permitted by the 4 Density Bonus awarded pursuant to this Chapter, that will contain at least any one of the following: (1) Ten (10) percent of the total units of the Housing Development as Target Units affordable to Low Income Households; or (2) Five (5) percent of the total units of the Housing Development as Target Units affordable to Very Low Income Households; or (3) Senior Citizen Housing Development or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code; or (4) Ten (10) percent of the total units in a Common Interest Development for Persons and Families of Moderate Income, provided that all units in the development are offered to the public for purchase. (5) For purposes of calculating the amount of the Density Bonus pursuant to Section 9121, the Applicant who requests the Density Bonus pursuant to this subsection shall elect whether the bonus shall be awarded on the basis of subparagraph (1 ), (2), (3), or (4) of this subsection. (b) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City as provided for in this subsection, the City shall grant a Density Bonus, the amount of which shall be as specified in Section 9122. This increase shall be in addition to any increase in density mandated by subsection (a), to a maximum combined density of 35 percent if an applicant seeks both the increase required pursuant to this subsection and subsection (a). Nothing in this subsection shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased Density Bonus described in this subsection if all of the following conditions are met: (1) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application. (2) The development acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to Very Low Income Households in an amount not less than ten (10) percent of the number of residential units of the proposed development. 5 (3) The transferred land is at least one (1) acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned for development of affordable housing, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and Development Standards to make the development of affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Government Code Section 65583.2 if the design is not reviewed by the City prior to the time of transfer. (4) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with Section 9131(d) and (e) which shall be recorded on the property at the time of dedication. (5) The land is transferred to the City or to a housing developer approved by the City. The City may require the applicant to identify and transfer the land to the developer. (6) The transferred land shall be within the boundary of the proposed development or, if the City agrees, within one-quarter mile of the boundary of the proposed development. (c) When an Applicant agrees to construct a Housing Development that conforms to the requirements of Section 9121(a) and includes a Child Care Facility that will be located on the premises of, as part of, or adjacent to, the project, the following shall apply: (1) The City shall grant either of the following, unless it finds, based upon substantial evidence, that the community has adequate child care facilities: (i) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the Child Care Facility. (ii) An additional Concession or Incentive that contributes significantly to the economic feasibility of the construction of the Child Care Facility. 6 (2) The City shall require, as a condition of approving the Housing Development, that the following occur: (i) The Child Care Facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the Target Units are required to remain affordable pursuant to Section 9131(d) and (e). (ii) Of the children who attend the Child Care Facility, the children of Very Low Income Households, Low Income Households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for Very Low Income Households, Low Income Households, or families of moderate income pursuant to Section 9121(a). 9122 DENSITY BONUS (1) The amount of Density Bonus to which the Applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in Section 9121(a) as follows: Percentage of Target Units Additional Additional Target Group (excluding Density Bonus Target Units Density Bonus Density Bonus units) Each 1 percent 1.5 percent, Low-Income 10 percent 20 percent maximum 35 increase ercent Very Low 2 5 percent 20 percent Each 1 percent 2.5 percent, maximum 35 Income increase ercent Moderate I 3 10 percent 5 percent Each 1 percent increase 1.0 percent, maximum 35 ncome ercent Senior Citi 4en 20 percent N/A N/A Housin Very Low Each 1 percent 1.0 percent, Income under 10 percent 15 percent maximum 35 Land Donations increase ercent ' For housing development meeting the criteria of Section 9121(a)(1) z For housing development meeting the criteria of Section 9121(a)(2) s For housing development meeting the criteria of Section 9121(a)(4) a For housing development meeting the criteria of Section 9121(a)(3) s For housing development meeting the criteria of Section 9121(b) 7 9123 INCENTIVES OR CONCESSIONS (a) An Applicant may submit to the City a proposal for the specific Concession(s) or Incentive(s) that the Applicant requests pursuant to this Section, and the Applicant may request a meeting with the City. The City must grant the Concession(s) or Incentive(s) requested by the Applicant unless the City makes a written finding, based upon substantial evidence, of either of the following: (1) The Concession(s) or Incentive(s) is not required in order to provide for Affordable Housing Costs or for Affordable Housing Rent for the Target Units. (2) The Concession(s) or Incentive(s) would have a specific adverse impact, as defined in Government Code section 65589.5, subdivision (d), paragraph (2), upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate- income households. (b) The Applicant shall be entitled to receive the following number of Concessions or Incentives: Target Group Target Units Maximum Incentives Very Low Income 5 percent 1 10 percent 2 15 percent 3 Low Income 10 percent 1 20 percent 2 30 percent 3 Moderate Income 10 percent 1 (Condominium only) 20 percent 2 30 percent 3 (c) Incentives or concessions may include the following: A reduction of site Development Standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the State Ordinance No. 1320 Page 8 of 17 Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, which result in identifiable, financially sufficient, and actual costs reductions, including but not limited to: a) Reduced minimum lot size. b) Reduced minimum setbacks. c) Reduced minimum street standards such as reduced minimum street width. d) Increased maximum lot coverage. e) Increased building height. 2. Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the Housing Development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area, including the City's General Plan, where the proposed housing project will be located; or 3. Other regulatory incentives or concessions proposed by the Applicant or the City that result in identifiable, financially sufficient, and actual cost reductions. 9124 WAIVERS OR REDUCTIONS (a) An Applicant may submit to the City a proposal for the waiver or reduction of Development Standards and may request a meeting with the City. The Applicant shall show that the waiver or modification is necessary to make the housing units economically feasible. (b) The waiver or reduction shall be granted unless the City Council adopts a written finding, based on substantial evidence, of either the following: 1. The waiver or reduction of Development Standards would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 2. The waiver or reduction of Development Standards would have an adverse impact on any real property that is listed in the California Register of Historical Resources. Ordinance No. 1320 Page 9 of 17 9125 OPTIONAL ADDITIONAL ASSISTANCE The City may approve additional assistance to facilitate the inclusion of more Target Units than are required by this Chapter. The City Council may approve any of the following in its sole discretion, including, but not limited to: (a) A density bonus greater than that required in Section 9121 of this Chapter. (b) A proportionately lower density bonus than what is required by this Chapter when the Housing Development does not meet the requirements of this Chapter. (c) Waived, reduced, or deferred planning, plan check, building permit and/or development impact fees. (d) Direct financial aid (e.g., redevelopment housing set-aside funds, Community Development Block Grant funds) in the form of a loan or a grant to subsidize or provide low interest financing for on or off site improvements, contribution to land, or construction costs. PART 3 DEVELOPMENT REQUIREMENTS 9131 STANDARD REQUIREMENTS (a) Target Units shall be built on-site, and be integrated within the Housing Development except those units built in conjunction with the donation and transfer of land pursuant to Section 9121(b). (b) Target Units shall be constructed concurrently with Non-Restricted Units unless both the City and the Applicant agree in the Housing Incentive Agreement described in Section 9142 to an alternative schedule for development. (c) Except for a Senior Citizen Housing Development, the number of bedrooms of the Target Units shall be generally equivalent to the bedroom mix of the Non-Restricted Units of the Housing Development, as determined by the Director and embodied in a Housing Incentive Agreement. Notwithstanding the foregoing, the Applicant may include a higher proportion of Target Units with more bedrooms than the Non- Restricted Units. (d) An Applicant shall agree to, and the City shall ensure, continued affordability of all low- and very low income units that qualified the Applicant for the award of the Density Bonus for at least 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy Ordinance No. 1320 Page 10 of 17 program, or in accordance with the Community Redevelopment Law (Health and Safety Code Section 33000 et. seq.). Rents for the Target Units shall be set at an Affordable Rent. Owner-occupied units shall be available at an Affordable Housing Cost. (e) An Applicant shall agree to, and the City shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the Density Bonus in the Common Interest Development are Persons and Families of Moderate Income and that the units are offered at an Affordable Housing Cost. The City shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity-sharing agreement: (1) Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The local government shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (2} For purposes of this subsection, the local government's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate- income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (3) For purposes of this subdivision, the City's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale. (f) The design and appearance of the Target Units shall be consistent with the design of the total Housing Development. Housing Developments shall comply with all Development Standards applicable to housing in the City, except those which may be modified as provided by this Chapter. (g) A Housing Incentive Agreement shall be entered into between the Applicant and City and/or the Agency to memorialize among other things, the Applicant's commitment to provide Target Units in accordance with this Chapter and other applicable provisions of State Law. The agreement shall be made a condition of the development permits (e.g., tract maps, parcel maps, site plans, planned development, conditional use permits, etc.) for all Housing Developments pursuant to this Chapter. Ordinance No. 1320 Page 11 of 17 (h) (1) Upon the request of the developer, the vehicular parking ~' ratio, inclusive of disable access and guest parking, of a development meeting the criteria of subdivision 9121(a), shall not exceed the following ratios: Number of Bedrooms Parking Ratio 0-1 1 space 2-3 2 spaces 4 or more 2.5 spaces (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this section, a development may provide "on-site parking" through tandem parking or uncovered parking, but not through on-street parking. PART 4 APPLICATION AND HOUSING INCENTIVES AGREEMENT 9141 APPLICATION REQUIREMENTS AND REVIEW (a) An Applicant proposing a Housing Development pursuant to this , Chapter, may submit a preliminary application prior to the submittal of any formal request for approval of a permit for a Housing Development. Applicants are encouraged to schedule apre-application conference with the Director to discuss and identify potential application issues. No charge will be required for the pre-application conference. A preliminary application shall include the following information: (1) A request for Density Bonus by specifying the code section of which the Density Bonus shall be awarded. (2) A description of the proposed Housing Development including the total number of units, Target Units by income category, and Density Bonus Units bedroom mix. (3) The zoning and general plan designations and assessors parcel number(s) of the project site. (4) The location of the Target Units within the Housing Development. (5) The number of additional housing units requested as the Density Bonus for the Housing Development. (6) A vicinity map and preliminary site, floor, and elevation plans, drawn to scale, including building footprints, driveway, and parking layout. Ordinance No. 1320 Page 12 of 17 (7} A description of any requested concession(s) or incentive(s), waiver, and/or modified parking standards. If a Density Bonus is requested for a land donation, the application shall show the location of the land to be dedicated and provide evidence that each of the conditions included in subsection 9121(b) can be met. If an additional Density Bonus or Concession or Incentive is requested for a Child Care Facility, the application shall show the location and square footage of the Child Care Facility and provide evidence that each of the conditions in subsection 9121(c) can be met. (8) A description of any Development Standards requested to be waived or reduced and an explanation of why they are needed. In requesting a waiver or reduction of Development Standards, the Applicant shall provide substantial facts in the form of a development pro-forma that the waiver or modification is necessary to make the Target Units and other units in the Housing Development economically feasible. At a minimum, the development pro-forma shall include information identifying capital costs, equity investment, debt service, discount rate, revenues, vacancy allowance, operating expenses, net income or net operating income, pre-tax cash flow, after-tax cash flow, and return on investment. (9) The Applicant shall acknowledge in writing that a Housing Incentive Agreement is required. (b) An application fora Density Bonus and/or Concession or Incentive pursuant to this Chapter shall be processed concurrently with any other permit application(s) required for the Housing Development. At a minimum, the application shall contain all the information described in Section 9141(a) plus all other required information. Final approval or disapproval of an application shall be made by the City Council and (i} in the case of Housing Developments within redevelopment project areas, also by the Agency; (ii) upon recommendation of the Planning Commission for those Housing Developments which require Planning Commission entitlements; except that no approval shall be effective until the City or Agency (as applicable) and Applicant have executed a Housing Incentive Agreement. (c) Within sixty (60) days of receipt of the preliminary application, the City shall provide the Applicant with a letter which identifies project issues of concern and the proposed Concession or Incentive that the Director would recommend to the Planning Commission and City Council and the procedures for compliance with this Chapter. Ordinance No. 1320 Page 13 of 17 (d) Where the Applicant proposes that the City provide optional additional assistance as described in Section 9125 herein, the proposal shall be considered by the Planning Commission for recommendation to the City Council, or Agency where Agency funds are requested, for their preliminary approval unless such Housing Development does not require Planning Commission entitlements in which case, the City Council or Agency, as applicable, can authorize such assistance. A preliminary approval shall indicate the City Council's approval of the proposal for processing, but no optional additional assistance shall be deemed approved until embodied in the Housing Incentive Agreement. 9142 HOUSING INCENTIVE AGREEMENT (a) Once an application for a Density Bonus and/or Concession or Incentive is approved pursuant to Section 9141(b), a Housing Incentive Agreement shall be prepared consistent with any conditions of approval related thereto subject to review and approval as to form by the City Attorney. The City (or Agency) approval and execution responsibilities for such agreement shall be as identified in the approval of the Housing Development application pursuant to Section 9141(b). Where such identification is not made by the City Council, such agreement shall be subject to approval by the City Council. (b) The final approval of any documents as required by the agreement shall take place prior to or concurrent with final map approval, or, where a map is not being processed, prior to issuance of building permits for any parcels in the Housing Incentive Agreement. The agreement shall be binding to all future owners and successors in interest. (c) The agreement shall include at least the following: (1) The total number of units approved for the Housing Development including the number of Target Units. (2) A description of the household income group to be accommodated by the Housing Development, and the standards for determining the corresponding Affordable Rent or Affordable Housing Cost. (3) The location, unit sizes (square feet), and number of bedrooms of Target Units. (4) Affordability restrictions for low and very low income Target Units for at least 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or in accordance with Ordinance No. 1320 Page 14 of 17 the Community Redevelopment Law (Health and Safety Code Section 33000 et. seq.). (5) A schedule for completion and occupancy of the Target Units. (6) A description of the Concessions or Incentive(s), or optional additional assistance being provided by the City or Agency. (7) A description of remedies for breach of the agreement by either party (the City may identity tenants or qualified purchasers as third party beneficiaries under the agreement). (8) Other provisions to ensure implementation and compliance with this Chapter and State Law. (d) In the case of for-sale Housing Developments, the agreement shall provide for the following regarding the initial sale and use of Target Units during the applicable use restriction period and for the respective affordability period: (1) Target Units shall, upon initial sale, be sold to eligible Very Low Income Households, Low Income Households or Persons and Families of Moderate Income consistent with this Chapter or as approved by the City Council at an Affordable Housing Cost or be made available to qualified residents in a Senior Citizen Housing Development. (2) Target Units shall be initially owner-occupied by eligible very low, low income, or moderate income households, or by Senior Citizens in the case of a Senior Citizen Housing Development or Mobile Home Park that limits residency based on age requirements for housing for older persons. (3) The agreement shall provide for the continued affordability of the low income and very low income Target Units for the applicable affordability period. (4) The agreement shall provide for the recapture by the City of its proportionate share of appreciation upon resale of moderate income Target Units in accordance with this Chapter. (e) In the case of rental Housing Developments, the agreement shall provide for the following conditions governing the use of Target Units during the affordability period: Ordinance No. 1320 Page 15 of 17 (1) The rules and procedures for qualifying tenants, establishing Affordable Rent, filling vacancies, and maintaining Target Units for '~~ qualified tenants; (2) Provisions requiring the owner to verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter and State Law. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this 20th day of November, 2006. l ll ~~' DOUG DAW RT ~ T-~~ Mayor ~~~ PAM STOKER City Clerk Ordinance No. 1320 Page 16 of 17 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the foregoing is a full, true and correct copy of the Ordinance introduced at a regular meeting of the City Council of the City of Tustin duly held on November 6, 2006, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and was finally passed and adopted not less than five days thereafter on November 20, 2006, by the following vote: COUNCILMEMBER AYES: I~,~,~,- Amante, Bone, Kawashima (4) COUNCILMEMBER NOES: None ~0~ COUNCILMEMBER ABSTAINED: None (01 COUNCILMEMBER ABSENT: baverr (1 L PAMELA STOKER, City Clerk Ordinance No. 1320 Page 17 of 17