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
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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:
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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).
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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.
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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.
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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.
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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."
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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.
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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.
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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
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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:
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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
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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
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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.
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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:
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~ 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.
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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
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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:
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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
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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:
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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.
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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).
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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.
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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.
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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
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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).
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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.
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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.
Tustin 2010-2015 Consolidated Plan
Section II -Housing Market Analysis
II-19
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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
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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
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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.
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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.
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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
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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.
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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.
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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
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~ 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.
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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.
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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
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Section II -Housing Market Analysis
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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)
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~ 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
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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
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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
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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.
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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
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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.
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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,
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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.
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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
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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.
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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)
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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)
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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
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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.
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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.
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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.
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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).
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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.
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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.
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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.
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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
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Section III -Strategic Plan
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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.
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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.
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Section III -Strategic Plan
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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.
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Section III -Strategic Plan
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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.
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Section III -Strategic Plan
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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
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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
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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.
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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.
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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'
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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.
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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
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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.
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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
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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~ 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.
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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.
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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:
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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
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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
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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
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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
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ATTACHMENT C
TABLE OF REQUESTS FOR
NONPUBLIC SERVICE FUNDING APPLICATION
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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
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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
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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
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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
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4
D. Summary of Prepayment Eligible
and
Expiring Section 8 Contracts
Tustin 2010-2015 Consolidated Plan Appendix
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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