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HomeMy WebLinkAboutPC RES 4228W The Planning Commission of the City of Tustin does hereby resolve as follows: The Planning Commission finds and determines as follows: A. That California State Law Section 65588 requires each City to review as frequently as appropriate and to revise its Housing Element as appropriate. B. That the City of Tustin adopted an amendment of its Housing Element on June 16, 2009. C. That the Housing Element is required to be updated to reflect new statutory requirements. D. That a public workshop was held on April 23, 2013, to familiarize the general public and the Planning Commission with the purpose and intent of the Housing Element Update. E. That the California Department of Housing and Community Development has reviewed the Draft Housing Element and provided minor verbal comments to the City on August 7, 2013 F. That a public hearing was duly called, noticed, and held on General Plan Amendment 2013-002 on August 13, 2013, by the Planning Commission to consider and provide further opportunity for the general public to comment on and respond to the proposed Housing Element Update. G. That pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15063, the City of Tustin has completed an Initial Study to evaluate the potential environmental impacts associated with General Plan Amendment 2013-002, and a Negative Declaration was prepared for the project. II. The Planning Commission hereby recommends that the City Council approve General Plan Amendment 2013-002, updating the Housing Element as identified in "Exhibit 1" attached hereto. Resolution No. 4228 Page 2 ELIZABETH A. BINSACK Planning Commission Secretary STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN 1, ELIZABETH A. BINSACK, the undersigned, hereby certify that I am the Planning MEMO Mal Commission Secretary of the City of Tustin, California; that Resolution No. 4228 was duly k71 passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 1110 13th day of August, 2013. r ELIZABETH A. BINSACK Planning Commission Secretary M w Iw DRAFT REVISED GENERAL PLAN HOUSING ELEMENT AND TECHNICAL MEMORANDUM Housing Element I M ib91 2013 Adopted by Resolution No. 12- ww This page intentionally left blank. IM MINES PUMP w,�w TABLE OF CONTENTS Section Page INTRODUCTION TO THE HOUSING ELEMENT 7 Purpose Of The Housing Element 7 Scope And Content Of Element 8 Consistency With State Planning Law 8 General Plan Consistency 10 Citizen Participation 11 SUMMARY OF ISSUES, NEEDS, CONSTRAINTS AND OPPORTUNITIES 13 Summary Of Housing Needs 13 Preservation Of Units At Risk Of Conversion 27 Summary Of Housing Issues 33 Housing Constraints 36 Housing Opportunities 50 HOUSING ELEMENT GOALS AND POLICIES 59 Housing Supply/Housing Opportunities 59 Maintenance And Conservation 62 Environmental Sensitivity 63 Related Goals And Policies 64 HOUSING ELEMENT IMPLEMENTATION PROGRAM 65 Five Year Quantified Objectives 65 Identification Of Affordable Housing Resources 70 housing Programs 90 APPENDICES A - Review of Past Performance B - Affordability Gap Analysis C - Public Participation Mailing List D - References CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 4 MGM 11011 LIST OF TABLES Tables Page TABLE H -1: State Housing Element Requirements 8 TABLE H- 2: Population Growth 14 TABLE H-2A: Population Projections 15 TABLE H- 3:Employment Projections 15 TABLE H- 4: List Of Major Employers 16 TABLE H- 5: Jobs/ Housing Balance 17 TABLE H- 6: Apartment Inventory Characteristics 20 TABLE H- 7: Tenure Of Households With Head Of Household Aged 65 Years Or Older 21 TALBE H-7A: Estimated Household Income Distribution - Households With Head Of Household Aged 65 Years Or Older 24 TABLE H- 8: Emergency Shelter/ Transitional Housing Facilities 26 TABLE IT- 9: Assisted Housing Inventory 29 TABLE H -10: Summary Of Existing Housing Needs 33 TABLE H -11: Anticipated Development At Mcas-Tustin 40 TABLE H-HA: Summary Of Homeless Accommodation Zoning Regulations 47 TABLE H -12: Land Inventory And Residential Development Potential 51 TABLE H- 13A: Summary of Quantified RHNA Objectives 2014-2021 53 3 TABLE H -1313: Vacant And Underutilized Land With Residential Development Potential 54 TABLE H -14: Vacant Land Suitable For Residential Developments 57 TABLE H-15: Underutilized Land Suitable For Residential Developments 58 TABLE H -16: Housing Related Goals And Policies By Element 64 TABLE H -17: New Construction Quantified Objectives Summary 68 TABLE H -18: Summary Of Quantified Objectives 70 TALBE H-19: Affordable Housing Resources 73 TABLE H- 20: Housing Element Programs 91 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 5 MEN- I This page intentionally left blank. CITY OF TUSTIN GENERAL PLAN HOUSING ELEMENT INTRODUCTION TO THE HOUSING ELEMENT tn The availability of decent housing and a suitable living environment for every family has been an ongoing concern to all levels of government. In California, this concern is addressed by the California Government Code requirement that each City adopt a Housing Element as a mandatory part of its General Plan. State Planning Law mandates that jurisdictions within the Southern California Association of Governments (SCAG) region adopt revisions to their Housing Elements by October 15, 2013. As a consequence of this due date, a series of time frames for various aspects of the Housing Element preparation are established. There are two relevant time periods: 0 2006-2014: The previous planning period began in 2006, and ends on June 30, 2014. 0 October 2013 - October 2021: the current Housing Element planning period for assessing short-term housing construction needs and implementing housing programs. The planning period for the Regional Housing Needs Assessment (RHNA) as prepared by SCAG, is from January 1, 2014 to October 1, 2021, a seven and three- quarter year period. ON- The source of most of the demographic data in this Housing Element and the related Housing Element Technical Memorandum is the U.S. Census Bureau, American Community Survey, 2007-2011 Five-Year Estimates. This was the most comprehensive and recent source of data available at time this Housing Element was prepared. PURPOSE OF THE HOUSING ELEMENT The Land Use Element is concerned with housing in a spatial context while the Housing Element identifies housing programs aimed at meeting the identified housing needs of the City's population. The Tustin Housing Element includes the identification of strategies and programs that focus on: 1) housing affordability, 2) rehabilitating substandard housing, 3) meeting the existing demand for new housing, and 4) conserving the existing affordable housing stock. The Tustin Housing Technical Memorandum provides background information and supporting documentation. -------------- CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 7 The State Legislature recognizes the role of the local general plan, and particularly the Housing Element, in implementing statewide housing goals. Furthermore, the Legislature stresses continuing efforts toward providing affordable housing for all income groups. The Legislature's major concerns with regard to the preparation of Housing Elements are: ° Recognition by local governments of their responsibility in contributing to the attainment of State housing goals; • Preparation and implementation of housing elements which coordinate with State and Federal efforts in achieving State housing goals; • Participation by local jurisdictions in determining efforts required to attain State housing goals; and ° Cooperation between local governments to address regional housing needs. The State Department of Housing and Community Development (HCD) set forth specific requirements regarding the scope and content of housing elements. CONSISTENCY WITH STATE PLANNING LAW The preparation of the City's Housing Element is guided by and must conform to N16' `"O Section 65580 et seq. of the California Government Code. In the introduction of these Government Code sections, the Legislature establishes a policy that the availability of housing in a suitable environment is of vital statewide importance, and a priority of the highest order. It further states that local governments are to address the housing needs of all economic segments, while considering the economic, environmental and fiscal factors and community goals set forth in the General Plan. The following table cites the required components for the Housing Element and cites the document and page references for the required components. TABLE H -1 STATE HOUSING ELEMENT REQUIREMENTS Required Housing Element Component Page A. Housing Needs Assessment 1. Analysis of population trends in Tustin in relation to regional trends HTM 9 & HE 10 2. Analysis of employment trends in Tustin in relation to regional trends HTM 12 & HE 11 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 8 TABLE H -1 STATE HOUSING ELEMENT REQUIREMENTS CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 9 r Required Housing Element Component Page 1 Projection and quantification of Tustin's existing and projected housing needs HE 30 & HTM 40 for all income groups 4. Analysis and documentation of Tustin's housing characteristics including the following: a) level of housin T cost compared to ability to pay, HTM 22 b overcrow din HTM 17 c) Housing stock condition. HTM 31 5, An inventory of land suitable for residential development including vacant HE 69 sites and sites having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites 6. Identification of a zone or zones where emergency shelters are allowed as a HE 58-60 permitted use 7. Analysis of existing and potential governmental constraints upon the HTM 49 & HE 36 maintenance, improvement, or development of housing for all income levels 8. Analysis of existing and potential non - governmental and market constraints HTM 71 & HE 33 upon maintenance, improvement, or development of housing for all income levels 9. Analysis of special housing need: persons with disabilities (including HE 18 & HTM 23 developmental disabilities), the elderly, large families, female- headed family households, farmworkers, and families and persons in need of emergency shelter 14. Analysis concerning the needs of homeless individuals and families in Tustin HE 21 & HTM 26 11. Analysis of opportunities for energy conservation with respect to residential HTM 76 development 12. Analysis of existing; assisted housing developments that are eligible to change HE 32 -34 &HTM from low- income housing uses during the next 10 years B. Goals and Policies 1. Identification of Tustin's goals, quantified objectives and policies relative to HE 71 maintenance, preservation, improvement, and development of housing CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 9 r L` STATE HOUSING ELEMENT REQUIREMENTS Source: California Government Code, §65583, et al. GENERAL PLAN CONSISTENCY While a city must consider housing needs for all economic segments, it must also maintain internal consistency among other elements of the General Plan as required by state law. Neither the Housing Element nor any other element may supersede any other required Tustin General Plan elements. The Housing Element relates to other elements in a variety of ways. The Land Use Element directly relates to the Housing Element by designating areas of the City in which a variety of residential types and densities exist. The Housing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs in the areas of the City with the highest density. Also, housing needs for low cost land must be balanced by the need to conserve natural resources. CITE' OF TUSTIN HOUSING ELEMENT GENERAL PLAN 10 Required Housing Element Component Page C. Implementation Program An implementation program should do the following: 1. Identify adequate sites which will be made available through appropriate HE 121 -147 action with required public services and facilities for a variety of housing types for all income levels 2. Assist in the development of adequate housing to meet the needs of extremely HE 121 -147 low, very -low, low -and moderate - income households 3. Identify and, when appropriate and possible, remove governmental HE 121 -147 constraints to the maintenance, improvement, and development of housing 4. Conserve and improve the condition of the existing and affordable housing HE 121 -147 stock 5. Promote housing opportunities for all persons HE 121 -147 6. Identify programs to address the potential conversion of assisted housing HE 121 -147 developments to market rate units 7. Identify agencies and officials responsible for implementation HE 135 8. Include a description of the public participation effort HE 6 -8 Source: California Government Code, §65583, et al. GENERAL PLAN CONSISTENCY While a city must consider housing needs for all economic segments, it must also maintain internal consistency among other elements of the General Plan as required by state law. Neither the Housing Element nor any other element may supersede any other required Tustin General Plan elements. The Housing Element relates to other elements in a variety of ways. The Land Use Element directly relates to the Housing Element by designating areas of the City in which a variety of residential types and densities exist. The Housing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs in the areas of the City with the highest density. Also, housing needs for low cost land must be balanced by the need to conserve natural resources. CITE' OF TUSTIN HOUSING ELEMENT GENERAL PLAN 10 The Circulation Element attempts to provide an efficient and c Isin irculation system. This system must bedesigned to accomnyodate allowed land m� uses, including residential uses, and the intensity of a|/nvvmbka uses should not exceed the ultimate capacity to accommodate them. The Safety Element relates tothe Housing Element by designating areas that are unsafe for development such as&lqnst-Pdo)o Zones, DnnJnobns,etcetero. Similar to the Safetv Element, the Noise Element relates to the Housing Element by addressing health related issue area. Techniques for reducing noise often involve buffers between land uses. The Growth Management Element overlaps the issues raised in the Housing Element inits efforts toensure that the planning, management, and implementation of traffic improvements and noh|bc facilities are adequate to meet the current and projected needs nf Orange County. The Housing Element has been reviewed for consistency with the City's other General T`luo elements and policy directions. As parts of the General Plan are amended in the future, this housing element will be reviewed to ensure that consistency ismaintained. CITIZEN PARTICIPATION The California Government Code requires that local make diligent efforts to solicit public participation from all segments of the community in the development of the Housing Element. Public participation iothe Housing Element Update process occurred through the following methods: * /\ public workshop was conducted on April 28, 2013 to provide an opportunity for interested persons to ask questions and offer suggestions on the proposed Housing Element. Approximately 24 members of the public attended the workshop, and nine (9) individuals provided verbal comments. Notice of this workshop was published in the Tustin News, on the City's vvebsite, and was also mailed to the City's list of local housing interest groups. /\ copy o[ the mailing list is included as Appendix [. b�ud�bz�� Element � Specific on�enze�a�oopro�anz ouumr/� uyvu"c were also discussed at various public hearings in anticipation of the Housing Element Update. These bearings include the Federal Community Development Block Grant Program public hearings held on March 5, 2013, and May 7,2OI3. ° Public hearings were held on 2013, by the Planning Commission and o 2019, by the City Council to provide additional opportunities for public review and comment on the Housing CITY OFTUGTIN HOUSING ELEMENT {;E0ER&LPLAN ll Element Update and supporting documents. All public meetings were advertised in the Tustin News and the City'swebsite. Special notifications were also sent tw those oo the City's list o/ interested parties. ~ Draft Housing Element, Technical Memorandum, and relevant documents were made available at the City lIo|i Library, on City's vvebobe for easy access and download, and mailed to requesting parties. Public comments received were evaluated and incorporated into the staff report to the Planning Commission and the City Council. As appropriate, the Housing Element has been revised to address these comments. CITY OFTU3T[0 M0V8ONG ELEMENT GENERALPLAN 12 � On June ZL2DI� �eCi�sent �edr�t £�mentto�e Department ofHousing and . On 2013, the City Council adopted the Housing Element Update as required by the State Law. Following adoption, on, 2019, the (i|n sent the adopted Housing Element toD[Dfor review, On, 2013, the City received comments from HCD. Upon receiving comments from BCD and other non-profits organizations, the City amended its Housing Element further to address the comments. The City advertised the availability mfthe Housing Element in English and Spanish in two local newspapers and also made the Housing Element available at City Hall, the City's vvebmike, and the Tustin Library. The City also sent m direct mailing to over 100 organizations 0 IN consisting of youth, seniors, veterans, disabled, homeless shelters, cultural organizations, housing advocates, religious nzganizubona,hooeingbui|dera, fair housing council, and individuals interested in the process. Revised Housing Element and its relevant documents are posted on the City website to allow the public and interested organization easy access and download. CITY OFTU3T[0 M0V8ONG ELEMENT GENERALPLAN 12 SUMMARY OF ISSUES, NEEDS, CONSTRAINTS AND OPPORTUNITIES This section of the Housing Element summarizes Tustin's current and projected housing needs to form the basis for establishing program priorities and quantified objectives in the Housing Element. This section also: • Estimates the number of households that meet Federal or State criteria for special consideration when discussing specialized needs; • Evaluates assisted units at risk of conversion; • Describes constraints that may discourage the construction of new housing; and 0 Examines housing opportunity sites. SUMMARY OF HOUSING NEEDS A number of factors will influence the degree of demand or "need" for housing in Tustin. The major "needs" categories considered in this Element include: • Housing needs resulting from increased population and employment growth in the City and the surrounding region; M 11 100 • Housing needs resulting from household overcrowding; • Housing needs resulting from the deterioration or demolition of existing units; • Housing needs that result when households are paying more than they can afford for housing; • Housing needs resulting from the presence of "special needs groups" such as the elderly, large families, female-headed households, households with a disabled person, and the homeless; and • Housing needs resulting from conversion of the assisted housing stock to market rate. Population Growth As shown in Table H-2, between 2000 and 2010 the City's population grew from 67,504 to 75,540, an increase of 11.9 percent. Between 2010 and 2012 population growth slowed significantly, falling 41.2 percent from the yearly average of 1.2 percent between 2000 and 2010 to .7 percent over the past 2 years. The City of Tustin's growth rate between 2010 and 2012 was slightly slower than the 1111— ma CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 13 countywide growth rate but faster than the nearby cities o[Garden Grove, Orange, and Santa Ana. Recent projections released by the Center for Demographic Research, CSL7F (Orange County Projections 2010 Modified, January 26, 2012) indicate dzatTuetio'e population will increase by an annual rate ofapproximately 0.7 percent during this implementation period, bringing the total population to 83,5346n the Near 2025. Table F}-2compares the City's growth rate between 2000 and 2Ol2 with other Orange Couoty cities and the County aoawhole. /\ large percentage ofIusho's population growth can he attributed to annexations that have occurred since I980. The remainder can be attributed to a variety of other factors, including shifts in family structures from smaller to larger families, redevelopment of existing developed areas, irdUl development, and residential construction in East Tustin and Tustin Legacy (former Marine Corps Air Station [MCAS] Tustin). Substantial population and housing growth will continue during this planning period with the continued development at Tustin Legacy. TABLE 8-2 Population Growth 2OOO-2O12 Jurisdiction 20001 20102 2012-1 Percent Growth 2000-2010 2010-2012 Tustin 67,504 75,540 76,567 11.9% 1.4% Anaheim 328,014 336,265 343,793 2.5% 2.2% Garden Grove 165,196 170,883 172,648 3.4% 1.0% Irvine '143,072 212,375 2231,729 48.4% 5.3% Orange 128,821 136,416 1381,010 5.9% 1.2% Santa Ana 337,977 324,528 327,731 -4.0% 1.0% Orange County 2,846,289 I 3,010,232 3,055,792 5.8% 1.5% =UU1 e.��.�="=`"su" 2 2010, U.S. Census 3 Department of Finance estimates 2012 Population projections are ahom/o in Table B-2/\. According to Orange County Projections (OCP) 2010 Modified data, the population in the City of Tustin is expected to increase hvapproximately 6.3 percent from 77,965 persons in 2015 to 82,878 persons by the year 2035, after a peak population o[83,944in 2030. The decrease in the last five years of the projections ie attributed to general countywide CITY 0FTnSTIN HOUSING ELEMENT GENERALPLAN 14 demographic characteristics, such as the age structure of the population, declining fertibtv rates, low housing growth, and declining oo. TABLE B-2g Population Projection soure Center tor Demographic uesemchmum1�mmPuumwu vt-l' /vm*m^mea,/anomr Employment According to 2007-2011 American Community Survey data, the City oi Tustin had 41,761 residents iuthe labor force, of which 38,308 (41.7 percent) were in the labor market. [K these, 8S.7 percent were private wages and salary workers. Table }{IK4-4 in the Technical Memorandum shows the breakdown of employees by occupation. In 2011, the largest occupational category was management, business, science and arts occupations, in which o total of 15,698 were employed. The second largest INNER category was the sales and office occupations, employing 10,214. Table }{-3 provides employment projections between the years 2015 and 2035. According to ()CP-2012 Modified data, employment in the City of Tustin is expected tn increase hv approximately 47 percent between 20l5 and 2035. TABLE H- 3 Employment Projection 2015 2020 2025 2030 2035 Percent Change (2015- 2035) Tustin 77,965 81,310 83,534 83,944 82,878 6.30% soure Center tor Demographic uesemchmum1�mmPuumwu vt-l' /vm*m^mea,/anomr Employment According to 2007-2011 American Community Survey data, the City oi Tustin had 41,761 residents iuthe labor force, of which 38,308 (41.7 percent) were in the labor market. [K these, 8S.7 percent were private wages and salary workers. Table }{IK4-4 in the Technical Memorandum shows the breakdown of employees by occupation. In 2011, the largest occupational category was management, business, science and arts occupations, in which o total of 15,698 were employed. The second largest INNER category was the sales and office occupations, employing 10,214. Table }{-3 provides employment projections between the years 2015 and 2035. According to ()CP-2012 Modified data, employment in the City of Tustin is expected tn increase hv approximately 47 percent between 20l5 and 2035. TABLE H- 3 Employment Projection Source: OCP 2010 Modified, Prepared by Center for Demographic Research at od State Fullerton. In terms of industry, the Educational services and health care and social assistance and Professional, scientific, and management, and administrative and waste management services sectors employed the largest number of persons with 6,947 /I8.I%\ and 5,606 (14.6%) employees, respectively. Table H-4is a summary of the number of employees byindustry. CITY 0F7US?l0 HOUSING ELEMENT GENERALPLAN 15 Percent Change 2015 2020 2025 2030 2035 (12015- 20351) Tustin 45,428 51,890 60,370 65,425 66,771 46.98% Source: OCP 2010 Modified, Prepared by Center for Demographic Research at od State Fullerton. In terms of industry, the Educational services and health care and social assistance and Professional, scientific, and management, and administrative and waste management services sectors employed the largest number of persons with 6,947 /I8.I%\ and 5,606 (14.6%) employees, respectively. Table H-4is a summary of the number of employees byindustry. CITY 0F7US?l0 HOUSING ELEMENT GENERALPLAN 15 Due to its favorable location, demographics, and business environment, Tustin is home to several large employers. . The City's top ten employers include: Young's Market Co, LLC, Tustin Unified School District, Lamppost Pizza Corp., Ricoh Electronics Inc., Toshiba America Medical Systems, Rockwell Collins Inc., Costco, Cherokee International Inc., City of Tustin, and Raj Manufacturing Inc. Table H -4 provides a list of the largest employers in Tustin in 2011. The list includes a variety of industries, including manufacturing, health care, retail, and technology sectors. TABLE H- 4 LIST OF MAJOR EMPLOYERS IN TUSTIN, CA 2011 Company /Address No. Emp. Product/Service Young's Market Co LLC 2,100 Distributor 14402 Franklin Ave Tustin, CA 92780 Tustin Unified School District 1,728 Education 300 South C St. - Tustin 92780 Lamppost Pizza Corp 1,4001 Corporation 3002 Dow Ave, Tustin, CA Ricoh Electronics, Inc. 1,384 Manufacturer 1100 Valencia Ave. - Tustin, 92780 Toshiba America Medical Systems 900 Distributor, Medical 2441 Michelle Dr. - Tustin, 92780 Rockwell Collins - (714) 317- 8102 600 _Equipment Manufacturer 14192 Franklin Ave.- Tustin, 92780 Costco Wholesale 450 Wholesale Trade 2700 Park Ave. - Tustin 92780; 2655 El Camino Real, Tustin, CA Cherokee International 350 Power Supplies 2841 Dow Ave. - Tustin, 92780 City of Tustin 300 Government 300 Centennial Way - Tustin 92780 Raj Manufacturing Inc. 260 Manufacturing 2692 Dow Ave, Tustin, CA Cash Plus Inc. 250 Financial Services 3002 Dow Ave, Tustin, CA Kleen Impressions 250 Cleaning Services 1730017th St # J Pmb 388, Tustin, CA Ricoh Business Solutions 250 Business Services 1123 Warner Ave Tustin, CA 92780 Southern California Pipeline 235 Construction 15991 Red Hill Ave, Tustin, CA Home Depot 203 Retail 2782 El Camino Real - Tustin, 92780 Health South Tustin Rehab Hospital 200 Medical 14851 Yorba St, Tustin, CA CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 16 G MOR Logomark, Inc 200 wholesale Trade 1201 Bell Ave. - Tustin 92780 Total jobs 36,869 Red Robin Gourmet Burgersz 2001 Retail 301- El Camino Real, Tustin, CA 1,046,323 6,311,587 SMC Corporation of America 200 Manufacturer 14191 M ford Rd. - Tustin 92780 Straub Distributing Company3 200 wholesale Trade 2701 Dow Ave. -- Tustin, 92780 Tustin Toyota 200 Automotive Dealer 36 Auto Center Dr., Tustin, CA mr rorU. r,; , ,.t T.,— , t',.,, prehensi e Annual Fin —rill Re�rt For tho Year Ended Tune 30, 2011 The employee count appears to include those emploved at locations outside of Tustin. 2 Red Robin Gourmet Burgers was located at 3015 El Camino Real in 2011 and has relocated to 2667 Park Avenue. 3 Straub Distributing Company was located in Tustin in 2011, but is no longer doing business in Tustin. Jobs - Housing Balance The "jobs- housing balance" test is a general measure of a community's employment opportunities with respect to its residents' needs. A balanced community would reach equilibrium between employment and housing opportunities so the majority of the residents could also work within the community. WOMEN C Table H -5 shows the 2011 jobs- housing balance for the City of Tustin as well as Orange County and the Southern California region. Tustin had a jobs/ housing ratio 0 of 1.45 in 2011, while Orange County and the region had jobs /housing ratios of 1.38 and 1.23, respectively. This demonstrates that Tustin is a job -rich community when compared to county and regional averages. TABLE H- 5 JOBSIHOUSING BALANCE CITY /COUNTY/REGION 2011 Sources: U.S. Census Bureau: 2007 -2011 American Community Survey; Center for Economic Studies, 2011. Overcrowding From 2007 to 2011 . there has been a decrease in unit overcrowding, as fewer households "double up" to save on housing costs. Overcrowding is often reflective CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 17 Tustin Oran e County SCAG Region Total jobs 36,869 1,447,768 7,174,832 Housing Units 26,418 1,046,323 6,311,587 jobs/Housing, Ratio 1.40 1.38 i 1.14 Sources: U.S. Census Bureau: 2007 -2011 American Community Survey; Center for Economic Studies, 2011. Overcrowding From 2007 to 2011 . there has been a decrease in unit overcrowding, as fewer households "double up" to save on housing costs. Overcrowding is often reflective CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 17 of one of three conditions: I\ a foonUy or household is living in a dwelling that is too small; 2\ a fani1ycbooaes to house extended family members (i.e~ grandparents or grown children and their families living with parents, termed doubling), or 3) a family is renting living space to non-family members. State and Federal FInueiug Law defines overcrowded housing units as those in which the ratio of persons- to-rooms exceeds ID. The rooms considered in this equation exclude bathrooms, kitchens, and hallways, but includes other rooms such as living and dining rooms. The 2007-20II American Community Survey showed 2,508 O0 percent) of households living in overcrowded conditions in Tustin. Of the households living in such conditions, 78 percent were renters. Renter households had a significantly higher incidence of overcrowding than owner households: 7.8 percent o{renter and 2.2 percent o1owner households were overcrowded. Table DI&1-8 of the Housing Element Technical Memorandum illustrates the numbers of all Tustin households living in overcrowded conditions, Substandard Units By 2020, approximately 62 percent o/ the City's housing stock will be over 3Oyears old, the age at which housing tends to require significant repairs. This indicates a potential need for rehabilitation and continued maintenance of over 17,324 dwelling IMEN, Affordability III State and Federal standards for rental housing overpavraent are based on an income- to-housing cost ratio o(30 percent and above. Households paying greater than this percentage will have less income |e0 over for other necessities, such as food, clothing and health care. Upper income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus oo lower income groups. As identified in the 2012 RHNA, 2,458 Tustin households are atmbelow 30% of the County Median Household Income UNHD and considered "Extremely Low Income." The 2012 R8N8 also shows 11,266 of Tustin households were paying more than 30 percent (overpaying) of their incorne on housing needs. Table HTM-11 of the Housing Element Technical Memoranducn reflects American Community Survey estimates for households overpaying for shelter. While most extremely low income households are currently housed, they are in a precarious position, particularly those overpaying for housing in light of the current housing market, and could face the threat ofhomelessness. �zou7-zm1 American commouuy Survey; City ^/Tustin. CITY OFTDSTIN HOUSING ELEMENT GENERALPLAN 18 '- These weighted average rents weight the average rent by bedroom count by the number of units in that bedroom count category. MINOR e CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 19 The distinction between renter and owner housing overpayment is important because, while homeowners may over - extend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home, thereby generally lowering housing costs. In addition, home ownership affords tax benefits to reduce monthly costs. Renters are limited to the rental market, and are generally required to pay the rent established in that market. According to the American Community Survey data, of the total 4,585 lower income households identified as over - payers, 3,368 were renter households and 1,217 were owner households. This discrepancy is largely reflective of the disproportionate number of rental housing units in the City and the tendency of renter households to have lower incomes than owner households (see Table HTM -11 in the Technical Memorandum). Table H -6 summarizes the characteristics of the current apartment inventory in the City of Tustin as of the first quarter 2013 based on data from REALFACTS. The data include a total of 28 apartment properties and 5,810 units, with an average of 208 units per property. All properties in the inventory have at Least 100 units and were built between 1957 . and 1997. Therefore, the data do not include small multifamily properties. The overall rental vacancy rate for Tustin in 2011 was 5.6 percent, up considerably from 4.3 percent in the first quarter of 2007. Generally, a vacancy rate of 5 percent is considered to reflect a "tight" housing market. Department of Finance data for �s Tustin as of January 2013 show a vacancy rate of 4.8 percent for all housing types in NO Tustin (single- and multi- family, owner and rental). The data show that approximately 40 percent of apartment units in the City have one bedroom, 52 percent have two bedrooms, and 5 percent have three bedrooms. Average monthly rents are $1,340 for a one - bedroom, one -bath unit. For two - bedroom units, average monthly rents are $1,448 for units with one bath, $1,412 for units with one and a half baths, $1,828 for units with two baths, and $1,695 for two - bedroom townhouse units. The average monthly rent for a three - bedroom unit with one and a half baths is $1,777 and for a three- bedroom unit with two baths the average rent is $2,391. The average rent for a three - bedroom townhouse unit is $1,845. The weighted average rental rate for the inventory increased 1.9percent over the past year' -. Rents for studios increased the most at 5.1 percent, followed by two - bedroom one -bath units at 3.5 percent, and one - bedroom one -bath units at 3.1 percent. '- These weighted average rents weight the average rent by bedroom count by the number of units in that bedroom count category. MINOR e CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 19 TABLE II- 6 Apartment Inventory Characteristics March 2013 Unit Size Units Percent Average SF Average Rent Average RenVSF j Studio 200 3.4 °,v 521 $1,267 $143 Jr 1 BR 32 0.6 °10 470 $1,070 $2.28 1 BR /1 BA 2,303 39.6°% 732 $1,340 $1.83 2 BR/ 1 BA 625 10.8% 976 $1,448 $1.48 2 BR /1.5 BA 266 4.6% 945 $1,412 $1.49 2 BR/ 2 BA 1,924 33.1% 1,021 $1,828 $1.79 2 BR TH 194 13% 1,079 $1,695 $1.57 3 BR /1.5 BA 36 76% 1,371 $1,777 $1.30 3 BR /2 BA 210 3.6% 11172 $2,391 $104 3 BR TH 20 1,516 1 $1,845 1 $1.22 "TH" signifies a Townhouse Unit. Note: Averages for the Total roue are weighted averages. Source: Reatfacts Affordability Gap Analysis In addition to information related to Housing Constraints provided in the City's Housing Element Technical Memorandum, a Comprehensive Housing Affordability Strategy was prepared in 2008. The report contains a detailed affordability gap analysis to illustrate the "gap" between the cost of developing housing for rent and ownership and what households at a variety of income levels can afford to pay toward their housing expenses. A Summary of Renter and Owner Affordability Gaps for certain prototypical unit types and incomes are provided as Appendix "13.3" Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances and may require specific accommodation or assistance to meet their housing needs. Included as special needs groups are the elderly, disabled, including persons with developmental disabilities, female- headed households, large families, and homeless persons. As there are no known "farmworkers" residing in Tustin this group is not discussed in the Housing Element. Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and need for assistance. As shown in Table HTM -2, 3 Summary based on data contained in Comprehensive Housing Affordability Strategy, 2008. f 7t CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 20 persons aged 65 years or older bzTustin comprised 8.8 percent of the population in Table H-7 shows the tenure of households with the head of household aged 65 years nr older inthe City of Tustin in20lI. The City had 1,071 renter households and 2,839 owner households with a head of household aged 65 years or older. Households with a senior householder represented 15.7 percent olall households in the City. � TABLE H- 7 Tenure of Households with Head v[ Household Aged 65 Years ozOlder 2011 Head of Household 65 Years or Older Tenure #Hvuoc6nlds 96IIouseh-okds___ Renters 1,071 9J%1 Owners 2,839 21.7%2 Total Households 3,910 15.7V As a percentage of 11,833 renter households. As a percentage of 13,112 owner households. 3 As a percentage of 24,945 total households, Source: U.S. Census, 2007-2011 American Community Survey Table H-7A sbovva the eadnmtmj household income distribution for householders aged 65 years or older in20lI. Approximately 14 percent of elderly households in Tustin earned less than $25,000 annually or about 37 percent of AMI for a household nf two persons in2011.* TABLE H-7A Estimated Household Income Distribution Households with Head of Household Aged 65 Years orOlder 2011 Income Range Number Percent Cumulative % $10,000-$24,999 394 101% 14.0% $25,000-$34,999 300 7.7% 20.7% $95,000-$49,999 479 122Y6 33.9% $50,000-$74,999 676 17.3% 502% S75,800-$99,999 566 14.5Y& 647% $lOO,80OorMore 1,842 34.9% 100D% Total Households 3,910 100.0% Source: U.S. Census Bureau: 2007-2011 American Communities Survey. Table m903r ^ HUD median household income for afamily of two in Orange County in 20D was $67,350 CITY OF TUS7IN HOUSING ELEMENT GENERALPLAN 21 Disabled: Physical and developmental disabilities can hinder access to housing units of traditional design and potentially limit the ability bo earn adequate income. According to the 2009-2011 ACS, m total oflI92persons in Tustin between l8 and 65 years ofage reported a disability. In addition, 1,745 persons over age 65reported a disability iu2OlI. Special housing needs of disabled individuals include wheelchair accessibility, railings, and special construction for interior living spaces. The Housing Element sets forth policies to encourage the development nf disabled-accessible housing (see Persons with Developmental Disabilities: As defined by federal law, "developmental disability" means a severe chronic disability Ofamindividual * Is attributable to aozenta| or physical impairment or combination of mental and physical impairments; • Is manifested before the individual attains age 22; • |s likely tn continue indefinitely; • Results in substantial functional limitations in three or more of the following areas V[ major life activity: a) self-care; b) receptive and expressive language; c\ learning; d\ mobility; e) self-direction; f) capacity for independent living; orp) economic se|f-soU0ciency; • Reflects the individual's need for combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. The U.S. Census Bureau does not record developmental disabilities. According to the Q.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 1.5 percent. Many developmentally disabled persons can live and work independently within acoovenbonal housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person's living situation as o child toan appropriate level of independence asanadult. The State Department of Developmental Services /[)DS\ currently provides community-based services to approximately 243,000 persons with developmental CITY OF TUSTl0 HOUSING ELEMENT GENERALPLAN 22 disabilities and their families through astatenide system of 21 regional centers, four developmental centers, and two community-based [acdides.TheReginnal Center of � Orange County (RC[}C) is one of 21 regional centers in California that Provides point of entry tn services for people with developmental disabilities. TheRC[)C is u private, non-profit community agency that contracts with local businesses to offer wide range of services to individuals with developmental disabilities and their families. Any resident of Orange County who has a developmental disability that originated before age 18 is eligible for services. Services are offered to people with developmental disabilities based on Individual Program Plans and may iocude: /\dodt day programs; advocacy; assessment/ consultation; behavior management programs; diagnosis and evaluation; independent living services; infant development programs; information and referrals; mobility training; prenatal diagnosis; residential care; respite care; physical and occupational therapy; transportation; consumer, family vendor training; and vocational training. D[OC also coordinates the state-mandated Early Start program, which provides services for children under age three who have or are at substantial risk of having n developmental disability. According to the RCOC February 2010 Facts and Statistics data, the BC()C currently serves approximately l6,728individuals. According to the RCOC, there are at least 428 children and adults with developmental disabilities living within the [ltV of Tustin. There may be others who have chosen not toreceive services from the Regional Center orwho are not aware ofor understand the services provided hv the Regional Ceoter. Large Families: /\ family household containing five or more persons is considered a large family, as defined by the Census Bureau. Large families are identified as groups with special housing needs because of the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the overcrowding of smaller dwelling units and accelerating unit deterioration. According to the 2007-20l ACS, 3852 family households, orl54 percent of all households, had five or more persons (see Housing Element Technical Memorandum Table IfTM-14). Of those, approximately 47.6 percent were owner- households and 52.4 percent were renter households. Female-Headed Parent Households: The housing needs of female-headed households with children are generally related to affordability since such households typically have lower than average incomes. According to the 2007-2011 ACS, the City of Tustin had 1,652 female-headed households with children less than 18 years nfage. CITY VF7US.O0 HOUSING ELEMENT GENERALPLAN 23 Single Room Occupancy (SRO): A single room occupancy unit typically is a 250 to 500 square feet residential unit, with a sink and closet, which may require the occupant to share a communal bathroom, shower, and/or kitchen. SRO units are allowed within the City's Multiple Family Residential districts and Planning Area 3 of the MCAS Tustin Specific Plan. Single room occupancy units such as rest homes also are allowed within Commercial Districts in the city through approval of a Conditional Use Permit. Although no specific ordinance is in place to address SRO units, the City may consider the adoption of single-room occupancy (SRO) ordinance during the planning period. The Homeless: Measuring the extent of the homeless population specifically in Tustin remains a challenge for community leaders. To complicate the challenge of meeting homeless persons' needs, the issue of homelessness is considered regional in nature. Nomadic tendencies of homeless persons make it difficult to assess the population accurately on a citywide basis; therefore, homelessness should be addressed on a countywide basis, in conjunction with cities and local non-profit organizations. The Orange County Housing and Community Development Department defines homelessness as not having a permanent address, sleeping in places not meant for habitation, not having ample food and medical attention or a place to change clothes or bathe. Per this definition, the County of Orange estimates in 2011 there were 18,325 homeless in the County. For those 18,325 homeless, there are only about 3,357 available beds, including 1,156 emergency shelter beds and 2,201 beds in transitional housing facilities, according to the Orange County Ten-Year Plan to End Homelessness 2012. The homeless population is comprised of subgroups, which include: a) The economic homeless who lack financial resources to pay rent; b) The situational homeless who have suffered economic or personal trauma and find themselves in personal disorganization; and, c) The chronic homeless who are unable to care for themselves due to chronic illness, disability or debilitating substance abuse. The City of Tustin's 2010-2015 Consolidated Plan states that, according to police reports and windshield surveys performed within the City of Tustin, most homeless persons migrate through Tustin to other parts of the County rather than stay for extended periods of time within the City. The City's Police Department estimates that there are 10-12 homeless persons residing in the City at any given time. There are numerous factors that contribute to homelessness in Tustin and Orange County. The known causes of homelessness include unemployment, limited skills, CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 24 KIM and a breakdown bz the family mso social and economic unit. Additionally, cutbacks in social service programs and the de-institutionalization ofthe mentally ill during the l98Os have contributed to the homeless population, A new trend, however, is emerging as a significant contributing element to homelessness: ahas nglack of affordable housing, which could exacerbate any of the above conditions, but may increasingly become a standalone cause nIhomelessness. Although there are no established areas where unsheltered homeless persons congregate in the City, there are several homeless services facilities bn the City. One of the shelters in Tustin, the 45-bed Sheepfold shelter provides shelter, fond, clothio job training, and job-roberral services primarily clothing, to vvonueo and children. Guests are admitted on a first-come, first-served basis, Usually all beds are fully occupied. The shelter services a large area including many portions ofOrange and San Bernardino Counties. Whbbz the City of Tustin, there are n of Non-Profit {}r izutona �atprovide d�ecthousing and related services tohomeless persons. These include Village of Hope, an emergency/ transitional home; Sheepfold, a feeding program affiliated with the United Way; Families Forward, a homeless provider; Olive Crest, transitional homes and services for abused and neglected children, and Laurel House, an emergency shelter and transitional housing provider for homeless youth in the City. Additional prng7uooa have been provided at the Tustin Legacy site. /\ Homeless Assistance Plan has been established for MC&S, Tustin that is consistent with the continuum of care model embodied in the Consolidated Plans for the Cities of Tustin and neighboring Irvine. The fundamental components of the continuum, of care system implemented with the MCAS Tustin Specific Plan: Provide emergency shelter beds and intake assessment Offer transitional housing and services Provide opportunities for permanent affordable housing by the private sector. In Tustin Legacy, four homeless service providers including the Salvation Army, Orange Coast Interfaith Shelter, Parnihea Forward, and Human Options currently are operating 48 family units. The Orange County Rescue Mission operates a192- unit transitional/ emergency shelter (Village of Hope) and the Orange County Social Services Agency operates m 90bedfadlih/ for abused and neglected children and their families. Numerous other agencies provide shelter and other services to the homeless inthe nearby cities of Santa Ana, Irvine, and Orange. Table H-8 is a list of organizations in Tustin that provide homeless services. CITY OF?UGTlN HOUSING ELB88E07 GENERALPLAN 25 TABLE H- S EMERGENCY SHELTERfTRANSITIONAL Although these units are located in the City of Irvine, these units were negotiated as part of the base realignment /conveyance process which Tustin is the Local Redevelopment Authority designated by the Department of Navy. Source: City of Tustin, 2013 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 26 HOUSING FACILITIES Facility Services Provided Sheepfold Provides shelter, food, clothing, job training, and job - referral services to women with children. Temporary housing for teenagers in crisis. The facility also Laurel House provides food, informal counseling, and access to medical care and clothing. St. Cecilia's Distributes food supplies to needy populations. Redhill Lutheran Operates emergency food program where a person can receive food supplies. Tustin Presbyterian Collects food supplies and distributes the food to various organizations involved in providing homeless services. Aldergate Refers interested persons to Ecumenical Services Alliance in. Santa Ana. Operates a food service program and 192 units transitional Village of Hope home at the Village of Hope operated by the Orange County Rescue Mission 90 -bed intermediate care shelter for abused children and their Tustin Family Campus parents operated by the Orange County Social Services Agency. Salvation Army Six (6) transitional units at Tustin Field I operated by Salvation Army. Acquisition of 16 transitional units in Buena Park operated by Salvation Army Salvation Army. The City assisted in acquisition and contributed grant funds to acquire the units Fourteen (14) transitional units at Columbus Grove operated Families Forward' by Families Forward, formerly Irvine Temporary Housing in Irvine.. Hunan Options Six (6) transitional units at Columbus Grove operated by Human Options Orange Coast Interfaith Shelter Six (6) transitional units at Columbus Grove operated by Orange Coast Interfaith Shelter. Tustin Family and Youth Center Distributes food supplies to needy populations. Although these units are located in the City of Irvine, these units were negotiated as part of the base realignment /conveyance process which Tustin is the Local Redevelopment Authority designated by the Department of Navy. Source: City of Tustin, 2013 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 26 Additional discussion regarding land use regulations that apply tofacilities serving the homeless ia found b7 the Housing Constraints section nf this document and bz the Technical Memorandum. PRESERVATION OF UNITS AT RISK OF CONVERSION According to the 2012 lI}|NA, Tustin has one project that contains units et risk nf converting to unrestricted market rate during the 203-2021 planning period. Tustin Gardens isa1U1-mdt Section 223(a)(7)/221(0(4) project with a Section 8 contract for l0O units Tustin Gardens is extended onan annual basis. Their current contract ia due tn expire on July I9,2OI4. Although Tustin Gardens isat risk, there has been no indication from HUD of terminating the contract or from the project owners of opting out. Table Il'V is an inventory of all units assisted under federal, state, and/or local programs, including HUD programs, state and local bond programs, City programs, and local in-lieu fee, inclueionary, density bonus, or direct assistance programs. The inventory includes all units that are eligible to convert tonon-lower income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. Various restrictions and incentives affect the likelihood that atrisk units will convert to other uses. Congress passed the Low Income Housing Preservation and Resident Homeownership Act(LN io199l. This measure assured residents that their bomea would be preserved for their remaining useful lives while owners were assured of fair-market compensation. However, modifications to the Act in 1906 restored the owners' right to prepayment, under the provisions that the owner would be encouraged to sell the property to resident endorsed or other non-profit organizations. Tustin Gardens is the only project based Section 8 subsidized project at-risk of losing affordability restrictions during the Housing Element planning period. However, it appears unlikely that the affordability of these units will bethreatened based oo the determination that project based Section 8 contracts can he renewed on on annual basis. Given the relative weakness of economic conditions and the current housing market, the city will proceed to negotiate the extension of affordability restrictions on these units. The amount of assistance provided will be negotiated based on the specific economics of each development and the potential availability of leverage financing, such os tax-exempt bonds and 4% tax credits. Funds were previously allocated to this program in prior planning periods. Hon/ever, as a result of the dissolution of Redevelopment, the Low and Moderate Income Housing Funds, allocated to this program were recaptured by the State and transferred to the CITY 0F7VGTlN HOUSING ELEMENT GENERALPLAN 27 Orange County Audi tox-Cootn)Der for distribution to the appropriate taxing Programs for Preservation of At-Risk Units: The City will make efforts bopreserve units "et risk" at Tustin Gardens. The coat o{acquiring and preserving the at-risk units is less than replacing the units with new construction. The actual amount required tn preserve these units iscuzreoUyunknown. The City will also he looking at possible work with nonprofits in the community to explore acquisition of existing buildings with at risk units by nonprofit organizations. The specific actions that the Citywill take to protect (or replace) at- risk units are identified in the Housing Element Implementation Program. CITY DF7DS7%N HOUSING ELEMENT GENERALPLAN 28 Ln V) cr cli MINES I ISO �Mll 0 r4 Cc < clq C; \(Y) u CA cr cli MINES I ISO �Mll 0 r4 Cc < C; u u / / \ƒ \\ /y LO cr cli MINES I ISO �Mll 0 r4 Cc 9 rA Z 7� 0 g C) U X O a n Lo LO rW 0 bp O W ON co rl > U) u cn M CD 7 cn 11-4 .0 C� 00 < U 00 rt 9 rA a n Lo Lr) In co > U) u cn QS C'A > u U U � a) cl, 9 rA O w 2 I 44 0 U cq Cq cq CIA 2:1 41 o 00 Qd z > o = 0) u 51 >,'Z �. >1 ri 1� -711 7� .0 u U. u u m to b:1 00 Cli 00 cli CIA U N Q) ON (31 ON C�5 I 44 0 U • • 0 0 50 P, 0 :1 U Lr) w ti O us m 14 E- 0 M EN M SUMMARY OF HOUSING ISSUES Housing is a fundamental component of land use within a community necessary to support the resident population. Obtaining affordable housing has been an ongoing issue for persons of all income groups in California. The following Table H -10 presents an overview of households in the City with special housing needs or issues with their existing housing, such as overpayment or overcrowded conditions. The following text highlights the issues relevant to the City of Tustin, which are addressed by the goals, policies and implementation plans. TABLE H -10 SUMMARY OF EXISTING HOUSING NEEDS CITY OF TUSTIN 2014 -2021 Growth Needs Special Needs Grou Von, Low (Units) 283 Elderly Persons 6,492 Low (Units) 195 Disabled Persons 4,440 Moderate (Units) 224 Large Households-3 3,852 Above - Moderate (Units) 525 Female- Headed Households with Children under 18 =ears 1,652 TOTAL 1,227 Overcrowding Overpaying Households Renter Percent renter Owner Percent owner 1,955 16.5% 553 4.2`;0 Renter - Total Owner - Total 6,617 5,845 TOTAL 2,508 1 Total 12,462 1 Regional Housing Needs Assessment, SC;AU, 2U1Z. 2 Persons age 65 and over. 3 Households containing 5 or more people. Sources: U.S. Census 5 Year and 3 Year ACS, Comprehensive Affordable Housing Strategy 2008 -2018. • Overpayment. 49 percent of the City's lower income households (households which earn less than $75,000 annually) are currently overpaying for housing (see Table HTM -12). • Overcrowding. Household overcrowding has decreased over the past decade as fewer individuals and families "double up" to save on housing costs. Housing Growth Needs. For the 2014 -2021 planning period, SCAG identifies a housing growth need of 1,227 dwelling units in Tustin. These units are allocated among the following income categories: 525 above - moderate income units; 224 moderate- income units; 195 low- income units; and 283 very -low income units (see Table H -10). CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 33 ry� �r ~ 7ar*ePanzUkes.15.4perceuto[(`ib/abousebo|dscnntobn5morepersonsbo ,the households. The average household size bo the City was 2.97in2O11,op slightly from 282in2(00 largely due to changes inthe ethnic composition and the economic downturn vvbicb had not yet recovered by 20II. This indicates o potential need for larger housing units to accommodate these families (see Table HTM-I4). ° Income households. In 2804, 2/458 households are at or below 30% of the Area Median Income L4M| and considered "Extremely Low Income." While the extremely low income households are currently housed, they are ina precarious position, particularly those overpaying for housing in light o1 the current housing market, and could face the threat of homelessness. ° Affordability Gap. Based upon available information on rental rates io the City, it is difficult to find rental housing that is large enough and affordable for large, lovv-incocme families (see Table HTyN-24, and Table HTM 25). ° Elderly. As the City's population ages, the number of elderly persons will continue to increase. This underscores no increasing need to address the special housing needs of the elderly (see Tnb1e8TK4-2). ° Disabled, including Developmentally Disabled. Some disabled individuals have particular housing needs relating to access and adaptability. ° Female-Headed Parent Households. Female-headed parent households made up 9.4 percent ofall fanh|ies with children under 18 in Tustin in 201I. Many of these households have incomes below the poverty level and have special housing needs such ao access to childcare services. ° Homeless. Growing numbers of homeless persons in Southern California have created particular housing and social service needs. The redevelopment of MCAS Tustin for civilian uses has provided an opportunity for additional housing supply in the City including accommodation of the needs o/ the homeless and the need for affordable housing (see Table H?M-15). In addition, a group housing arrangement (with less than six (6) residents) in a aiom1e family home is not subject to a Conditional Use Permit (consistent with State Law). A^ group housing arrangement ofover six (6) residents is classified as o boarding house. The R-3 and R-4 zoning districts would allow for boarding houses with a Conditional Use Permit (CLTTq. ° First Time ffnmehuyers. f|iNz housing costs have put home ownership beyond the reach of many potential first-time homobuyers. CITY OFTDS?lN HOUSING ELEMENT GENERAL PLAN 34 ° Governmental Constraints. Governmental regulations, such as land use controls, fees, and processing procedures, can act as constraints to the maintenance and production ofhousing. ° Units at Risk of Conversion to Market Rate By State law, the City uznnt identify and develop programs and policies to address affordable housing units that are at risk nf converting to market rate housing. During the 2Ol3- 202l planning period, the City o[ Tustin faces the potential conversion ofI0O low-income units (see Table HTN-27). ° Tenure. The []tn has a binb proportion of renter-occupied as compared to other jurisdictions in Orange County. In 201l,47.4 percent of the City's units were renter-occupied, compared to 39.7 percent renter occupied units countywide. Promotion nl home ownership opportunities in the City may he necessary to maintain m balanced community (see Table }lTk8-2O). • Housing Stock Condition. According h2O|l ACS data, over 56percent of the City's housing stock is 30 years old or older - the age at which housing tvpicalk/be iostocequirenuoorrepaie.lnadditinn,thelackofadeooahely sized affordable housing can lead to overcrowding and in burn, deteriorated housing conditions. Maintenance and improvement of existing housing conditions over the long term will require ongoing maintenance of existing units, rehabilitation or replacement of substandard housing and programs to maintain neighborhood quality (see Table |lTK4-2l\. IN • Historic Resources. Older neighborhoods in Tustin contain historic residences that should be preserved as port of the community's heritage. These historic b000ea were identified through inventories of historic buildings inI990 and 20D2. • Target Neighborhoods. A large portion of the City's lower income housing is concentrated in the southwest neighborhoods. Targeted programs such as graffiti removal, proactive code-enforcement, loan and grant housing rehabilitation program, removal of abandoned vehicles, increased police presence, removal/ trimming overgrown trees in public right-of-way, various physical improvements for street widening, and street lighting and alley improvements have been and will continue tobeimplemented. • Energy Conservation. Due to its mild climate, the City can take advantage of solar energy to reduce reliance on non-renewable energy supplies. CITY 0P7U87IN HOUSING ELEMENT GENERALPLAN 35 Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance o[ existing units for all income levels. Market, governzoentai infrastructure, and environmental constraints to housing development io Tustin are aonunodzedbelovv and discussed in greater detail in the Housing Element Technical Memorandum. Market Constraints The biob cost of renting or buying adequate housing is a primary ongoing constraint. High construction costs, land costs and market financing constraints are contributing tm increases in the cost of affordable housing. Construction Costs: The 2OO5-2Ol0 Tustin Consolidated Plan reports that the single lazRest cost associated with building a new house is the cost o[ building materials, usually comprising between 30 to 5O percent ofthe sales price ofa borne. These costs are influenced bynzany factors such as the cost oflabor, building materials, and site preparation. K1azebaJ/ & Swift is widely considered the authority on estimating these costs and has been providing the real estate industry with cost data for more than 75 years. According to Marshall 8r Svvi8L estimates, the cost of residential wood frame construction averages $96.30per square foot5. This estimate includes labor and materials, excluding the cost ofland, off-site improvements, and indirect costs such as financing costs, escrow fees, property tax, etc. The costs attributed tn construction alone for a typical 2,2O0 square foot, wood frame home would beat minimum $2lI,860. /\ reduction in amenities and quality of building materials (above a odnioouon 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 oneconomies of scale. This reduction in costs is of particular benefit when deuaityhonoses are utilized for the provision of affordable housing. Although itshould 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 2010-15 reported that the single largest cost was related to construction costs, other factors such as the cost of land, depending upon the type of residential product and market condition is often a more significant cost than that of labor and materials. With the exception of the former MCAS Tustin site that is now referred to as Tustin Legacy, the City ofTustin is » Wood frame average quality for Orange County area in 2013 CITY OFTn8TI0 HOUSING ELEMENT GENERALPLAN 36 WON- 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 coats. Some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability oflending institutions hm 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 bnmebuyer is the minimum down-payment required bv lending institutions. Even if Tustin boozebuyers are able to provide a 3 percent down-payment and obtain a 3.6 percent 30-year loan (average loan rate for FHA or VA guaranteed loans for May 2013), monthly mortgage payments on median priced single-family detached homes in the City (?lace such homes out of the reach of moderate and lower-income households in the City. At a 3.6|7encent interest rate, monthly mortgage payments on median priced condominiums and townhouses can place such units onto{ reach ofTnstin`slow and very low income households (see Tables i{TM-23 and l|TK4-25). 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 vvU|iog to significantly decrease down payment requirements and increase loan amounts to persons with good credit rating. Persons with poor credit ratings may beforced 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 vvbicb to qualify for a loan. The FHA is generally more flexible than conventional lenders in he qualifying guidelines and o||ovva many residents to re-establish a good credit history. Pro t Marketing and Overhead: According to the Comprehensive Affordable Housing Strategy6, minimum developer profit is estimated at 12 percent of development costs, based on input from developers and the Building Industry Association. This have{ is considered abooebne profit or "hurdle zah," representing the minimum necessary for the deal to proceed. |n the past, due to high market demand in 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 nfland. Marketing and overhead costs also add tothe price of a City u( Tustin Comprehensive Affordable Housing Strategy, z000-zom. CITY OF TU8TlN HOUSING ELEMENT GENERALPLAN 37 homes. The Comprehensive Affordable Strategy 2008 - 2018 estimated developer overhead ieot4 percent of total development costs. Governmental Constraints Housing affordability is affected by factors in the private and public sectors. Actions by the (_ity can have on impact on the price and availability of housing. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Land Use Controls: In efforts to protect the public's health, safety, and welfare, government agencies may place administrative constraints oo 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 out accommodated. The zoning ordinance may impose further restrictions if development standards are ton rigid, or if zoning designations do not conform to existing land uses. On the contrary, the zoning ordinance may also be utilized as a too} 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. BONN- Tustin/sexisting zoning ordinance allows for mrange of residential densities from an effedivedensi��435o�s p�n�ac��the E4��d�����eDiehictb ~ � 24.9 unity per net acre in the fl-3 Multiple Family Residential District. Tusho'm General Plan allows a maximum ofseven (7) units per acre with effective density of 5.61 dwelling units per acre within the Low Density Residential land use to * maximum of 25 units per acre with effective density of 21.53 dwelling units per acre vviNdo High Density Residential land use. ],en (lU) units per net acre are also permitted in the K814P Mobile home Park District (see Table f|TM-32). The Planned Community District has authorized residential subdivisions with sinude'benni|v 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),a35 foot height limitation and 85 percent coverage precludes the development of housing projects with building height above the 35 foot limitation. hzthe interest oi protecting adjoining single- family lot owners, nooltifand|y structures above 20 feet in height require o conditional use permit when the structures are within 150 feet of single-family residentially zoned lots. There are approximately 2U properties with onD-3 zoning designation that abut Single Family Residential (k-1) zoning comprised of a variety of CITY 0F7U9TlN HOUSING ELEMENT GENERALPLAN 38 older apartment units and several within Old Town Tustin that are adjacent to the First Street coonnerciad zoning azeas. While these height limits may place some restrictions oohousing development, these limits are designed to maintain compat- ibility o[ land use intensity and to ensure proper and effective transportation within the community and are commonly used by local governments as a development ton) to further this ideal. \44leo designed properly with features such as limited windows and door openings along the walls facing simlefandly zoned properties or using stepped building heights and design to minimize intrusion to the privacy of existing residents, Conditional Use Permits to oDnw/ such development projects have been granted. within Neighborhood Dof the MCAS Tustin Specific Plan, o150 foot height limitation up to I80 foot if approved by the Community Development Director vvnnld be allowed which provides for layering products (i.e. stacked flats, podium style, eb.) with mixed use developments, thereby providing opportunities for the development nf 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 o[ the Old Town area prepared im conjunction vvitbcoozVmbensive 1994 General Plan Amendments indicated that new multi-family residential development vvoo|d be on important supporting use for the area's mixed-used commercial/ retail development. /\sa result, the General Plan was an-tended inl997 to permit upto29l additional residential units io the Old Town commercial area. To ensure compatibility n[residential uses with the uonnnzencia| area, the location, density, and building intensity standards for these residential units will be governed by planned community regulations, the adoption of a specific plan, or the approval ofo Conditional Use Permit. �e Ea�Tu�o�o��F�an provides for single-fanuly detached products tobe developed at a variety of densities. The Low Density designation requires o roioioluoz lot area of 5,000 net square feet while the MecUnnz-Lo,v designation requires a minimum lot area of 3,000 net square feet and densities not to exceed 5 and l0 units per net acre respectively. The &1CAS Tustin Specific Plan designation provides opportunities for development ofa variety of residential products at varied density ranging up to 25 dwelling units per acre. In addition, the Specific Plan allows for density bonuses and density averaging. For example, io Neighborhood [>, the maximum deoaityon an individual parcel may exceed 25 units per acre as long as the total dwelling units allocated tn Neighborhood [)ia not exceeded. Consistent with the City's policy to increase homeownership to maintain a balanced cozon\uzdt>\ the majority of residential units authorized within the Specific F1ao are owner-occupied units. However, io response to market demand, the City processed an amendment tn the CITY 0PIUS7IN HOUSING ELEMENT GENERAL PLAN 39 WAS Tustin Specific Plan that allowed 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 WAS Tustin Specific Plan is expected to occur incrementally over a 20+ year timeframe. The actual level of development within any given phase will be tied to the availability of infrastructure necessary to support such development. Implementation triggers of specific infrastructure improvements are included in the EIS /EIR for the project. The anticipated timing of residential development of the MCAS - Tustin Specific Plan is as follows: TABLE H -11 Anticipated Development at MCAS - Tustin Land Uses Through 2016 -2025 2015 Low Density (1 -7 DU /acre) Planning Area 15 533 Medium Density (8 -15 DU /acre) Planning Area 15 375 114 Medium to High Density (16 -25 DU /acre) Planning Area 15 225 Community Core (16 -25 DU /acre2) Planning Area 8, 13, and 14 533 515 Total 1,133 1,162 Includes combined total of 190 density bonus units. '- Pursuant to the WAS Tustin specific Plan, the maximum density on an individual parcel in Planning Areas 8,13, and 14 may exceed 25 dwelling units per acre as Iong as the total dwelling units allocated to Neighborhood D is not exceeded. Notes: All figures are estimates as schedule will be impacted by market conditions. Figures in text are rounded for discussion purposes. Figures are based on estimated anticipated development indicated in the environmental document for WAS Tustin Specific Plan. Actual construction figures may be different. Source: Final Joint EIS /EIR for the Disposal and Reuse of MCAS- Tustin, WAS Tustin Specific Plan /Reuse Plan and its Supplement and Addendum, City of Tustin. Future market demand and the complexity and timing of environmental cleanup efforts are additional factors influencing the schedule of development. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 40 allffift The remaining opportunity sites consist nfa large proportion ofsmallvacanand underutilized /ood that is located within the City oz Old Town residential areas where infrastructure is available and no major improvements would be anticipated. Limited residential uses are also permitted in areas Institutional provided the intended occupants are associated with the primary institutional uses. Additionally, homeless facilities are permitted by right in the WAS Tustin Specific Plan and are allowed throughout the remainder of the City either as an outright permitted or conditionally perindtted use depending on the number of residents in the project. The City's Zoning Ordinance calculates parking requirements by unit type /See HTM-32 for summary of parking requireomotd. Parking requirements in Tustin are generally two spaces per not, with an additional requirement of one guest space per every four units inmulti-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 1.avv vvnu1d be eligible to use the reduced parking standards under the State Law. bn response h 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 R�| percent up to 35 percent provided that certain numbers of units are allocated for lower and moderate-income housing, In addition, in response to 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 bn residentially zoned properties that are utleast 12,000 square feet in lot size. A two-car garage isrequired. The City's land use regulatory mechanisms accommodate the development of housing ata range of densities and products and do not constrain the potential fon 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 |nvvex income households. Housing for Persons with Accommodation The City of Tustin recognizes the importance of addressing the housing needs for persons with disabilities. The City's Zoning Code defines "family" as "an CITY OF TDS.D0 HOUSING ELEMENT GENERALPLAN 41 individual or two C8 or more persons living together as a single housekeeping unit in a dwelling unit° This definition accommodates unrelated persona living together in a dwelling unit; thus, the City's definition for a family would not constrain the development and rehabilitation for persons with disabilities. The City requires each development to comply with Title 24nf the California Code. AJ|roo|b complexes are required bo provide accessible parking spaces based upon the prescribed State code requirements. For development ofspecial needs housing such as housing for the disabled, senior housing, etc., parking requirements would be determined based upon parking demand analysis which by nature would allow for lower parking ratio in comparison to those required for multiple family residential units. In addition, on off-street parking ordinance adopted by the City allows for the reduction in parking due to an American with Disabilities Act (ADA) upgrade. The Community Development Director is authorized to nDnvv the reduction in the number ofrequired parking spaces when the site is brought up to AD}\standards. This provision provides incentives to property owners to provide reasonable accommodation to the disabled, The City also requires new units and apartment conversions to condmu/bzome to oornnk/ with State specifications pursuant to S8 520 for accommodation of the disabled. A Residential Care facility serving six k8 oz fewer persons is a permitted use in all residential districts. The City's Zoning Ordinance does not contain rnaxbnuru concentration requirements for a residential cane facility serving six (6) or fewer persons. The City recognizes the need o1 disabled persons to retrofit their residences tnallow for mobility such aswheelchair ramps, widened doorways, grab bars, and access ramps. "'hen these improvements meet development standards, only abuilding permit isrequired, ,To201I, the City amended the Zoning Code to remove governmental constraints to reasonable accommodation for the disabled. The amendment provides o process in which deviations from the development standards associated with physical improvements to accommodate the disabled would be accommodated with administrative approval and without the need of a public hearing. Homeless Accommodation Homelessness is a statewide concern that affects many cities and counties. Throughout the country, homelessness has become an ongoing problem. Factors contributing to homelessness include the general lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall CITY OF TUSTlN HOUSING ELEMENT GENERAL PLAN 42 At the time o(the preparation of the Reuse Plan, it was estimated that there was a total net homeless need of 411 persons in the City of Tustin and City of Irvine (A portion nfthe MCAS Tustin is located within the City of Irvine jurisdiction). & large portion of this homeless need was identified as necessary to support CITY 0FTU3?IN HOUSING ELEMENT GENERALPLAN 43 below the poverty level, reductions in public to the poor, and the deinstitutionalization of the mentally DD. The issue of homelessness is considered regional in nature. Nomadic tendencies of homeless persons make b difficult toassess the population accurately. VVitdo the (]h7 of Tustin, Police reports and windshield surveys indicate limited numbers nf persons oo 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 ofhomelessness by racial and ethnic groups is not available at this time. The Orange County Partnership, anon- profit organization whose purpose is to strengthen public and private agencies serving the homeless and those at risk of homelessness, reported that in 2009 there were 10 homeless persons who identified Tustin ms the city of last known permanent address. The McKinney'Vento Homeless Education Assistance /\ut reported 55 homeless children and youth enrolled in the Tustin Unified School District during 2006-07. lo addition to identifying homeless needs inTustin, pursuant to Senate Bill (SD) 2, statute of 2007, the City is required to engage in x more detailed analysis of emergency shelters, transitional, and supportive housing (See Technical Memorandum for further details) by identifying the needs for homeless shelters in its Housing Element and designating adequate zoning districts to accommodate the needs. In those districts, emergency shelters must be allowed without a conditional 111101 use permit or other discretionary permit. With the closure of the Marine Corps Air Station (K4C&S) Tustin, the [ltv was provided with opportunity to address homeless accommodation. As part of the conveyance process and under the Base Closure Community Redevelopment and Homeless Assistance Act of 1994 (The "Redevelopment Act"), the City of Tustin us, the Local Redevelopment Authority (LR/\) was required to consider the interest of the homeless in buildings and property on the base in preparing the Reuse Plan /K8[.AS Tustin Specific Plan/Reuse Ploo\. lu developing the Reuse Plan, one criteria the Secretary of Housing and Urban Development (HUD) utilized to determine the adequacy of the Reuse Plan was whether the Plan considered the size and nature of the homeless population io the communities, in the vicinity of the installation, and availability of existing services in such communities to meet the needs of the homeless in such communities. At the time o(the preparation of the Reuse Plan, it was estimated that there was a total net homeless need of 411 persons in the City of Tustin and City of Irvine (A portion nfthe MCAS Tustin is located within the City of Irvine jurisdiction). & large portion of this homeless need was identified as necessary to support CITY 0FTU3?IN HOUSING ELEMENT GENERALPLAN 43 emergency transitional housing for youth and individuals. The local homeless need as described in both Tustin and Irvine's Consolidated Plans also indicated e gap in the cooUnoonn of cmnz in the areas of vocational and job training/educational npportunities, some emergency and transitional housing units for individuals and families, support services, and affordable nvvoezahip wnits. Accordingly, the Homeless Assistance Plan for MCAS Tustin was adapted to addresses the problem of homelessness by utilizing the continuum of care model promulgated by HUD for accorm-nodating the needs of the homeless in a manner which is consistent with the Consolidated F1aoe approved for the cities of Tustin and Irvine. The fundamental components of the continuum of care system implemented with the K4CAJS Tustin Reuse Plan: 0 Provides emergency shelter beds; is Offers transitional housing and services which enable homeless persons to Provides opportunities for permanent affordable housing by the private As a reoo|i the adopted K4(_/\STustbn Specific Plan provided sites and designated land uses to accommodate the identified homeless needs. The following sites were set aside in implementing the homeless accommodation at Tustin Legacy (formerly MCAS Tustin): � An approximate five (5) acre transitional/ emergency shelter site was set aside for accommodation of the homeless at M[AS Tustin. The City acQniredasihefrnnutbe[)epartozentofNovy;inibaJ|vg7oondleaseddbesite, and ultimately conveyed the site to the Orange County Rescue Mission atoo cost and facilitated the construction of Village of Rope, o 192 ooii transitional housing facility, without the need for Conditional Use Permit. The project has been completed. � &fou (4) acre site was recommended hv the City of Tustin and deeded directly by the Department of Navy atno cost tothe Orange County Social Services Agency for the development nfan abused and neglected child and emancipated youth facility with 90 beds capacity. The project is complete. w A total o[5U transitional units were originally inckzdedintbeDaae Reuse Plan. Based on further negotiations with non-profit homeless providers, a total oi32new transitional housing units were constructed and conveyed at no cost to non-profit homeless providers at Tustin Legacy. CITY OF7D87l0 HOUSING ELEMENT GENERALPLAN 44 r. I `F N, ME These units are dispersed throughout the Tustin Legacy community to allow integration into the community. The sites are designated as residential sites and the units were constructed in conjunction with market rate units subject to only those restrictions that apply to other residential uses. The units are transparent since the units are developed identical to those of market rate units in terms of size, materials, locations, etc. No special or other entitlement applications were required for the creation of these units other than those typically required for development of residential units at Tustin Legacy. In addition to the homeless accommodation on-site at Tustin Legacy, the City also facilitated the purchase of a 16 unit transitional housing facility off-site for one of the homeless providers. The City subsidized the creation of these units through the use of housing set aside funds and Federal HUD Homeless Assistance funds. In addition to the homeless accommodation, the City also encourages support services to support the community of continuum of care model to end the cycle of homelessness and to provide participants with tools to once again become contributing members of the community as follows. • Private sector opportunities are provided to create a balanced mix of housing types on the base. Through inclusionary Zoning standards in the SIMN WAS Tustin Specific Plan, a total of 8797 affordable units or 20.8 percent of total authorized units at Tustin Legacy are required to allow participants with opportunity to achieve self-sufficiency. Specific affordable housing requirements would be established at the time of development project approval to ensure conformity with the Housing Element of the City's General Plan. • The Navy will be transferring a child care facility at the former WAS Tustin to the City of Tustin, which will provide opportunities for access for all to mainstream child care facilities, including early child care and education programs, Head Start, etc. • Adult education and training opportunities will be provided by the South Orange County Community College District within the educational village. Emergency Shelters, Transitional Housing, and Supportive Housing: SB 2 defines "Emergency Shelters" as housing for homeless purposes intended for occupancy of less than six (6) months, where no person is denied occupancy because of inability to pay. In the City of Tustin, emergency shelters are designated as permitted uses 7 Includes 32 transitional housing units set aside for non-profit homeless providers. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 45 vvitbbz PlanninR Area of the MC/\STustin Specific Fqmn. Planning Area is a five �) acre site tbat had been a no cost conveyance to the Orange County Rescue Mission for the development otanemergency/ transitional shelter that ie known oe Village ofHope. The (_iLvfoci|itated the development of the Orange County Rescue Mission Village of Hope and waived permits fees as this was a public/private partnership. The project consists of 192 units available for emergency and transitional needs. As of April 30,, 2073, the Orange County Rescue Mission Village of Hope was ot 90% capacity, with a total of 173 homeless individuals consisting ofhomeless single men, single women, single women with children, single men with children, and two parent families. The largest homeless sub-population on the Village of Hope campus is single won-ten with children. The Orange County Rescue Mission Village of Hope priority isto serve Tustin homeless population prior to taking any other referrals from other cities or the County. The Tustin Police Department actively refers individuals to the Village of Hope upon encounter. The Orange County Rescue Mission Village of Hope also provides a food service program of approximately 55O meals daily to the Armory. Based upon the available data obtained from the Orange County Partnership and McKinney Vento Homeless Education Assistance Act approximately 34-55 sm individuals reported either Tustin as their last known permanent address or enrolled within the Tustin LJrdbed School District. This means that the (]iy of Tustin is accommodating 137-I58 homeless persons beyond its jurisdictional boundaries thereby accommodating a regional need. The City interviewed the Orange County Rescue K4ioSino Village of Hope representative and the City was told that there are generally 5 vacant units and a ohniozuno of five (5) percent vacancy is available at any given bozm. The Orange County Rescue Mission Village of dope also indicated that the shelter has met above and beyond the City's conservative eebonabe of 55 homeless persons and that the shelter could accommodate the year-round needs and seasonal fluctuation in the amount of available beds. Transitional housing is defined as rental housing for stays ofat least six (6)months where the units are re-circulated toanother person after u set period. This housing can take several forms, including group housing oz multi-family units, and often includes supportive services component tn allow individuals to gain necessary life skills in support of independent living. Tuedn's Zoning {.ode accommodates transitional housing within several zoning districts depending on the project's physical structure: l\ transitional housing operated as a residential care facility is permitted/ conditionally permitted depending on the number of occupants in residential districts; and 2) transitional housing operated as rental apartments, it is CITY 0F7D87IN HOUSING ELEMENT GENERAL PLAN 46 permitted by right as u residential use where multifamily housing is Supportive housing is defined as permanent (no 1bzdt on the hnx'Hh of stay), provides supportive services and is occupied by ]ow-income persons with disabilities and certain other disabled persons. Services may include assistance designed to meet the needs of the target population in retaining housing, career counseling, mental health treatment, and life skills. Tuotio'a Zoning Code perodts supportive housing as a residential use, provided supportive services are ancillary \n the primary use. Emergency shelters are permitted within Planning Area l of the WAS Tustin Specific Plan. Transitional homes and supportive housing are also designated as permitted uses within Planning Areas 1 and 3 of the WAS Tustin Specific Plan. Community care facilities such as group homes, foster homes, elderly care facilities, etc. with six (6) or fewer people are outright permitted within any residentially zoned property. Table l{]l-Asummarizes zoning regulations for homeless TABLE H-11A SUMMARY ()FHOMELESS ACCOMMODATION ZONING REGULATIONS Housing Type Conditionally Zoning Permitted Planning Area 3 of WAS Emergency Shelters Permitted Tustin Specific Plan Planning Area 3 of NICAS Transitional Home Permitted Tustin Specific Plan Planning Areas 1 and 3 of Supportive housing Permitted NICAS Tustin Specific Plan All residentially zoned Community Care Facility for six (6) or fewer Permitted properties Family care home, foster home, or group home for Permitted All residentially zoned six (6) or fewer' properties 7 Includes congregate care facility, single room occupancy hotel, and children's intermediate care shelter Source: City of Tustin The following are transitional homes that have been provided at Tustin * Al92-unit8 emergency/ transitional home atthe Village of Hope operated by » As defined pursuant m the U�. Census Bureau definition. CITY 0F7UGTU« HOUSING ELEMENT GENERAL PLAN 47 the Orange County Rescue Mission, • /\ 90-bed intermediate care shelter for abused children and their parents operated by the Orange County Social Services Agency. • Six (6) units at Tustin Field l operated lw Salvation Army. • Acquisition of 16 units in Buena Park operated by the Salvation Army. 7he City assisted in acquisition and contributed grant funds to acquire the units. • Fourteen (I4) units at Columbus Grove operated by Pend|iea Forward, formerly Irvine Temporary 11oosing.» • Six (6) units at Columbus Grove operated 6n Human Options. • Six (6) units at Columbus Grove operated hvOrange Coast Interfaith With the exception uf the emergency shelter, these units are transparent and dispersed throughout the community consistent with the City's goals and policies to provide adequate supply mf housing to meet the need for a variety of housing types and the diverse aodo-econoudc and to promote the dispersion and integration of housing for all socio-economic throughout the community, FIR The City's policies for homeless accommodation do not create constraints inthe location of adequate emergency shelters, transitional homes, shelters, and supportive housing. In addition, current provision of homeless accommodation supports not only the need of the city but the county aswell. Fees and / Various fees and assessments are charged hv the City and other outside agencies (e.g., school districts) to cover costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. These fees are assessed based on the concept of cost recovery for services provided. Tustin is urbanized with most of the necessary infrastructure, such as streets, sewer and water facilities i»place. Nonetheless, site improvements can significantly add to the cost of producing housing. Cost-effective site planning can oduiodze site improvement costs. The Housing Element Technical Memorandum describes in detail required site improvements and provides n list of fees associated with development (Table E[TM-34\ Development fees are not considered o constraint to housing. However, fees do contribute to the total cost of development and impact the final purchase or rental price. The City, in co junction with the preparation o[the 2009 Housing Element also prepared the Affordable Gap and Leveraged Financing Analysis (Appendix A ^Although these units are located in the City of Irvine, these units were negotiated as part "f the base realignment/ conveyance process with Tustin ao the Local Authority, CITY OF7DGTDN HOUSING ELEMENT GENERALPLAN 48 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 49 OWN of the Housing Element Technical Memorandum). The analysis evaluated 55 MEN 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 (See Appendix A for specific development processing fees and analysis). In response to the recent economic downturn, the City Council also adopted an economic stimulus program which allowed the payment of specific development fees for construction of new residential units to be deferred until either prior to final inspection or issuance of certificate of occupancy. This program provided 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: The City of Tustin adopts the Uniform. Construction Codes, as required by State law, which establish minimum construction standards as applied to residential buildings. The City's building codes are the minimum standards necessary to protect the public health, safety and welfare and ensure safe housing. Only local modifications to the codes are made which respond to local climatic or geographic conditions and clarify administrative procedures. Although not mandated to do so, the City has adopted the State Historical Code that relaxes building code requirements citywide for historic structures/buildings. �Y Adoption of codes reduces rehabilitation costs. Local Processing and Permit Procedures: The evaluation and review process required by City procedures contributes to the cost of housing. State law establishes maximum time limits for project approvals and City policies provide for the minimum processing time necessary to comply with legal requirements and review procedures. The Community Development Department serves as the coordinating agency to process development applications for the approval of other in -house departments such as Police, Public Works/ Engineering, and Parks and Recreation. All projects are processed through plan review in the order of submission. The City has eliminated the potential increase in financing costs caused by a delay in permit processing by assigning priority to the plan review and permit issuance for low - income housing projects. If a complete application is submitted, all Design Review Committee members and plan checking departments simultaneously review the plans. 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. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 49 In making such findings, the Zoning Code provides items tobe considered such as hnUk 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 prc4mztg 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 former Master footprint (approximately 800 acres) are subject to the Legacy Park Design Guidelines to ensure compatibility of products proposed by vertical builders. The design guidelines present odnirounn 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 Cod*, Design Review provisions, the Legacy Park Design Guidelines, and the '/ooe-atnp// processing system provide certainty to developers seeking approval for the development of residential projects. For projects of significant benefit to the low-income community, costs can be waived bv the City Council. Workload: Arxzdzer governmental constraint is the number of staff and amount of staff time available for processing development projects. Since the workload is determined by outside and uncontrolled forces (economy and market for housing and availability of general fund revenue), a shortage of staff time may occur which could lead to increased processing time for development projects. Table H-l2shows the existing and potential dwelling units permitted under each General Plan land use category, as well as the potential net increase within each category. Based on the City's Land Use Plan, Tustin has a residential holding capacity ofapproximately 29,821 dwelling units. The Land Use Plan provides for mix of unit types and densities, including low-density single-family homes, medium density homes, higher density homes, and mixed-use projects that allow for a combination ofcnonn*nzia| and residential uses. A large portion of future residential development h\ the City o{ Tustin will take place inthe MCAS Tustin Reuse Specific Plan area. The other large Specific Plan community inTustin, Tustin Ranch (the East Tustin Specific Plan) has been. built CITY 0P7US7l0 HOUSING ELEMENT GENERALPLAN 50 ew HQ MW R Lr) cli l F tf) od o t It Cc Z 0 Q) as C-- m m C m CD 0 0 w N C11 �c Ln eq RS tv Od Li > CD c 0 0 It) 00 0 C) CIA oj CA 0 > O 00 CD m U) N C4 r, 0 tr) bo Ln In g6 bc Z5 U cz C) t4 u u u 14 4� -Ij rl �1-4 tC L ell O a5 N C4 C4 .D z �D 0 ROME F Housing Units and Under Construction /\ total of 88 Very Low Income units 73 Low Income units, lUI Moderate income units, and 871 Above Moderate Income units were approved/ enti tied at the time of the preparation of this housing element oofollows: St. Anton Partners: This residential affordable multiple-family project has been approved and will consist of 225 affordable units, of which 88 units are set aside as Very Low Income units, 73 units for Low Income, and 64 units for Moderate Income households. The Irvine [bo/pomVLcgocy ki//oa: This residential multiple family project has been approved and will consist of 533 residences, including 37 units for Moderate Income households. Table H-14 illustrates the residential development potential nf the vacant and underutilized land inventory in the City mfTustin. The Tustin Legacy site (formerly MCA51[ustin) presents the City with 180.87 acres suited for residential development that could accommodate an additional 2,I05uoits. During the planning period, the majority of the anticipated units will be accommodated at Tustin Legacy and is being implemented through both the adoption of a Specific Plan by the City and the adoption of a Redevelopment Project Area (dissolved in 2011). Based on State Redevelopment Law at that time and Specific Plan requirements, at|eastl5 percent of the units (6O7 units) constructed at the WAS Tustin site will be affordable toVcry-Lovv, Low, and Moderate- income households, o{ which at least 6 percent or243 units must be affordable to Very Low-income households. The remaining 384 units vvnold be distributed among the Lnvv and Moderate income households by utilizing R8N}\ Low and Moderate income percentages. In addition to these imdusionory obligations, the acreage and densities permitted by the MCAS-Tustin Reuse Plan created 282 additional units for Very Low-income households (192 transitional housing units and 90 social services housing uoits). Aside komMCAS Tustin, additional sites are located within the City. As a means to ensure affordability, the City may require developers to provide ot least I5 percent ofall units constructed or rehabilitated at prices affordable to Very Low, Low, and Moderate Income households. The City aggressively negotiates affordable housing units within individual potential projects. An example of an approved irfill site is the development of fifty-four (54) unit affordable senior housing project ona 1.76 acne site. The project vvasgramted a twenty-five (25) percent density bonus above the City's maximum allowable density. ln addition, the City entered into a Disposition and Developer Agreement with the developer to issue loans not to exceed $600,000. The loans are secured by loan agreements, promissory notes and deeds of trust, along with Regulatory Agreement and Declaration of Restrictive Covenants to be recorded against the property for o period of not less than 55years. The project is 100 percent affordable to very low and low income seniors. The remaining capacity in Old Town Tustin will be achieved through recycling of underutilized and vacant infill sites (see Figure l). According to the City's Land Use Element, the sites in Old Town IBM- Tustin area are able to accommodate an overall population range for residential use of 2-54 persons CITY 0F7UST}N GENERAL PLAN 52 per acre10. The Land Use Element further identifies the potential development of dwelling units in the Old Town Commercial area, which will be facilitated by the proposed adoption of zoning regulations and development standards which will allow mixed -use development (see Program 1.21 of Table H -22 Housing Element Program). This development potential is supported by the market analysis of the Old Town area. To further create housing opportunities, the City provides the issuance of tax - exempt bonds for the development of affordable housing through a Joint Powers Authority with the California Statewide Communities Development Authority. Other means would include the City's participation in the State and Federal programs such as the Low- Income Housing Revenue Bond Financing program, Low Income Tax Credits, CHFA financing programs, and others. Additionally, a Density Bonus Ordinance is available and can be applied to infill sites to increase allowable density and the Tustin City Code also provides for a Planned Community District which allows flexibility in site development standards such as the creation of smaller Iots to allow for higher density. As demonstrated in Table H -13B, there are a total of 205.3 acres of land (177.1 acres from WAS Tustin, 15.35 acres vacant Land, and 12.85 acres underutilized Land) with residential development potential. These sites could potentially be developed with approximately 2,882 units. This demonstrates that the City has sufficient amount of land available to accommodate the residential developments to meet the remaining RHNA construction needs through the 2021 period. TABLE 14- 13A SUMMARY OF QUANTIFIED RHNA OBJECTIVES CITY OF TUSTIN 2014 -2021 Income Group RHNA Units AEproved Net RHNA Construction Need Very Low 141 88 53 Extremely -Low 1421 142 Low 195 73 122 Moderate 224 101 123 Above Moderate 525 496 29 Total 1,227 758 469 i Pursuant to Government Code Section 65583(x)(1), City's share of extremely -low income units is 142 ( 50 percent of the total Very Low Income new construction objective). Source: 2012 RHNA, SCAG, 2005 -2009 ACS 10 MI - I io See Table LU -3 - "Future Land Use Density /Intensity and Population Capacity of the Land Use PlarC in the City of r Tustin General Plan Land Use Element January 16, 2001. CITY OF TUSTIN GENERAL PLAN S3 --------------- O F aH WW N o Rig 12UtM in ad Od fl 00 11 C', IZ 00 Lr) . lo u C-4 4d 'C"41 00 --4 U < lu S3 c U oi 00 06 ad W tf) ° In AM m Id UJ M -VIP I It Lo O C) CW7 RAISE- ME Figure I and Tables B,14 and 15 detail the zoning designations of vacant and underutilized land buTustin. The vacant and underutilized land inventory includes land that is currently zoned medium- and high-density residential and land that could potentially hedesignated as high-density residential. Realistic capacity of sites that are identified in Tables H-l4and 15 are derived from past development proposals, historical character of the area, inquiries received by the Community Development Department, Disposition and Development Agreements between the City and developers, exclusive negotiations with potential developer(s) authorized by the City Council, maximum zoning and general plan densities, and eligible incentives to developers for provisions of affordable housing. Realistic capacity for sites identified to meet the City's shorn mf regional bousbngneeds either are determined based upon current zoning and general plan, executed Disposition and Development Agreement, and the []tv Council authorized exclusive negotiations with potential developers. The closure ofMCASTustin provides the City with opportunity sites to meet the City's share of regional housing needs. The majority of the City's share o{ housing needs will be provided at the former MCAS Tustin (Tustin Legacy) project site which was part of the base closure realignment process. The Federal government provided the land to the City at no cost. The City has been conveying the land to developers for the development ofthe Tustin Legacy. Although the availability of vacant and underutilized land for the provision of housing is IN not considered o constraint for the 2OI3-202lplanning period, future planning periods may 10� be marked by a lack of available land. While the City's Land Use Plan provides an adequate land capacity to fulfill housing needs, current development costs io Tustin may preclude the private housing market from providing affordability for ]op/ and very low-income households without subsidies. Necessary infrastructure improvements and litigation constraints may cause some delays in the build-out development of the MC&S Tustin Satisfaction o{ the City's quantified nbkstbnen through new construction will be heavily dependent upon real estate market trends, cooperation of private funding sources, and available funding and programs at the local, county, state and federal levels. CITY OF TUG7DN GENERAL PLAN 55 HOUSING ELEMENT Figure 1 - Vacant & Underutilized Land in the City of Tustin* Underutilized Land Vacant Land CITY OF TUSTIN GENERAL PLAN 56 EL A AT f�v , w p e .3 HOUSING ELEMENT as, s #u a °Y cg y x F d` jt'P ✓ esT p a aV T � Underutilized Land Vacant Land CITY OF TUSTIN GENERAL PLAN 56 EL A AT f�v , w p e .3 HOUSING ELEMENT O ILI r O -�4 Y, M O ;E U 0 O U 0 0 E �o Fyy 0 iJ "I P4 O M r" to O I., rd O r C, z Fw O 0 C. UJ O .0 a v O O 0 oo U) R ol 75 E E O P. 0 O G. m Z v G w r tz tz r � z co OWNER POW 1111-1 MORE" BOOM NUNN, MIN co OWNER POW 1111-1 hWh m 1 iH ARM NO v. I ON Ir, O Cry CD �I O C, 7-- .0 -It eu u u u u 0 0 u u u u U) 0 o o o n is Lz ear O. c E E E E 0 0 V u C r 0 0 0 T, to cD cl c o P Pl M S 0 U O V G v u m G 0 .O r P. r C z 0 x 00 LO OW MEN HOUSING ELEMENT ^=~.A=S AND P..~~IC~E— W This section ofthe Housing Element contains the goals and policies the City intends to implement to address a number of issues. To implement the Housing G|euzeut the following six major issue areas are identified with related goals and policies: l\ ensure that abroad range oI housing types are provided to meet the needs of existing and future residents; 2) provide equal housing opportunities for all City residents; S) ensure a reasonable balance between rental and owner occupied housing; 4) preserve existing affordable housing; 5\ promote conservation and rehabilitation of housing and neighborhood identity; and @ ensure housing ia sensitive to the existing natural and built environment. HOUSING G OPPORTUNITIES Tustin is home to persons requiring o variety of housing options. A1 different stages bn their lives, ire different housing arrangements. Additionally, the City must respond to the housing needs of all economic segments of the community and ensure that housing discrimination does not serve as abarrier. It is also important that the City maintain abalance of housing types and that the []tv/s housing stock is not overly skewed towards the provision of one type of housing. Finally, the continuing need for affordable housing in the region reqoires the City to ode000t to preserve Low-income housing units that are at risk nf converting tn other uses. The (_itvestaLdishee the following goals and policies to achieve the above objectives. GOAL 1: Provide an adequate supply of housing to meet the need for a variety of housing types and the diverse oociu-ecanorndc needs nf all community residents. Policy 1.1: Promote the construction of additional dwelling units to accommodate Tnstin'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: Pursue smart growth principles by supporting the construction of higher density housing, affordable housing, and nhxcd use development (the vertical and horizontal integration of commercial and residential uses) in proximity to transit, services, shopping, schools, senior centers and recreational facilities, where possible. Policy 1.3: Consider site scoring, income targeting, and other selection criteria for competitive funding sources for affordable housing, such aaLow Income Housing Tax Credits, when allocating Agency resources for affordable housing tomaximize leverage of local funds. Policy 1.1 Continue to implement best practices for developer selection, project underwriting and due diligence for affordable housing developments that receive IN CITY 0PTUSTl0 B0DGlNG ELEMENT GENERALPLAN 59 financial and other assistance toensure long-term viability afaffordable and bo ensure the nzaxbnizedleverage of local resources, housing Policy 1.4: Preserve affordable housing units, where possible, through actions such as the maintenance of mobile home park zone, restrictions on D-3 zone uses to preserve the multiple family residential characters, facilitate resident access to funding sources for preservation v[ low income and assisted housing. Policy 1.5: Promote the dispersion and integration nl housing for low- and verv-iovv income families throughout the community as opposed to within any particular geographic area, neighborhood, orproject. Policy 1.6: Encourage the County of Orange to exercise its responsibilities for housing accommodations for low- and very-low income families within Tustin's sphere ofinfluence. Policy 1.7: Utilize various resources, where feasible to assist in creating opportunities which will expand opportunities for development of affordable housing bn the community. Policy 1.8: Allow second (attached/ detached) units in single- and multi-family districts consistent with the Tustin City Code. Policy 1.9: Utilize Planned Community Districts and Specific Plans to authorize and promote a variety of lot sizes and housing types. Policy 1.10: Promote cluster housing consistent with General Plan land use density standards to reduce the cost o[ housing construction. Policy 1.11: 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 with children, households with a disabled person, and the homeless (see discussion under Summary o{ Housing Needs for Special Needs Groope). Policy 1.I2: Encourage incentives to assist in the preservation and development of affordable housing such as l} reducing permit processing time and waiving or reducing applicable pmzodt fees; Z) on-site density bonuses when appropriate; 3) tax-exempt financing including continuing to make use n[ the City's membership in the California Statewide Communities Development Authority to provide opportunities for developer assistance in pre-development and development financing of affordable housing programs; 4) flexibility in zoning or development standards; and 5\ other financial incentives using a variety of special State and Federal grant and housing programs. CITY 0F7DS7]N HOUSING ELEMENT GENERALPLAN 60 OWNER Policy 1]C3: Encourage the design and occupancy of housing for senior citizens and the disabled. Promote the construction ur rehabilitation and adoption of dwelling units accessible to seniors and/or the disabled. Policy 1.14: Provide continued support for the Countv Homeless Assistance Program and other homeless assistance programs within Tustin and in adjacent cities, including the continued use o{ the City's membership in California Statewide ConunurJtipa Development Authority to issue private activity mortgage bonds in support oI these programs Policy 1.15: 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, |ovv-incorne and elderly persons. Policy 1.16: Participate in federal and state housing assistance and rehabilitation programs aimed at assisting households boneed. Policy 1.17: L}dbze design criteria in evaluating projects to ensure compatibility with surrounding developments, while taking into consideration ways to minimize housing costs. Policy 1.18: Promote and encourage and O± private sector interests to use available federal and slate programs for new or rehabilitated affordable housing. Policy 1.15: Support state-enabling legislation for employers t0 contribute to the cost of housing for their employees. GOAL 2: Ensure equal housing opportunities for all existing and future City residents regardless of race, religion, ethnicity, sex, age, marital status or household composition. Policy 2.1: Promote equal opportunity housing programs within the community. Policy 2.2: Provide active support to provide fair housing opportunities. Policy 2,3/ Support programs to match elderly and }ovv and moderate-income individuals who want to share housing costs iu a joint living arrangement. Policy 2'4: Support public and private efforts to eliminate all forms of discrimination iohousing. 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 eomnze aneasooable balance ofrental and owner-occupied housing within the City. CITY 0FTUSON }IOVSO«G ELEMENT GENERALPLAN 61 Policy 3.1: Encourage new housing construction for home-ownership bzamixture of price Policy 3.2: Examine any existing City home assistance programs for low- and moderate-income households, eymentassietance, - end mortgage revenue bond financing, and recommend program modifications to make them more effective iu the current housing market. Policy 3.3: Encourage rental unit conversion and alternative forms of homeownership, such as shared equity ownership and United 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 nfaffordable housing bu the City. Policy 4.1: Continue to use Federal and State housing initiatives available for low- income households. Policy 4.2: Monitor all federal, state and local funds available to preserve and/or replace lower income units at risk o/ converting to market rate housing, including tax credit bond financing. Policy 4.3: Assist non-profit organizations in securing the resources necessary to preserve/ replace lnvvcr 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 n[ converting to non-lower income housing. Policy 4.5: Take advantage of favorable market conditions, as appropriate, topursue early negotiation and preservation of at-risk affordable housing dnoumbextension of existing affordability restrictions. - MAINTENANCE AND CONSERVATION Maintenance and preservation of a City's housing stock prevents unhealthy living conditions; eliminates the need for future, more costly housing rehabilitation; prevents neighborhood deterioration; and encourages community pride. The City enforces codes and provides incentives to promote maintenance and conservation. GOAL 5/ Conserve, maintain, rehabilitate, and/hr replace existing housing in neighborhoods vvhiob are safe, healthful and attractive, in accordance with adopted Land Use Policy. Improve the residential character ofthe with an emphasis oo revitalizing neighborhoods showing signs m} deterioration. - Promote conservation of the City's sound housing stock, rehabilitation of deteriorated CITY OFTD8]]N HOUSING ELEMENT GENERAL PLAN 62 ENVIRONMENTAL SENSITIVITY Housing and land use patterns can have substantial impacts on the natural as well as the built environment. City policies and programs seek to oinbz-tize negative environmental impacts. GOAL h: Ensure that new bwmstu# is sensitive to the existing natural and built environment. Policy 6.1: Attempt to locate new housing facilities in proximity to services and employment centers thereby enabling walking or bicycling to places of employment. Policy 6.2: Promote energy conservation measures in the design of new housing units and the redevelopment of older housing units. Policy 6.3: Require design review of lot placement in subdivisions to maximize passive solar energy and solar access. Policy 6.4: Promote water efficient landscapes, efficient irrigation, and use of permeable paving materials. CITY 0F?DST0 HOUSING ELEMENT GENERALPLAN 63 units where they may exist Citywide, and elimination of dilapidated units that endanger the health, safety and wellbeing of occupants. Policy 5.1: Through available financial incentives, encourage owners of rental housing units that are determined to be substandard, in need of repair and a hazard to the health and safety of the occupants tn 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 iu deteriorated housing conditions. Policy 5,4: Continue to enforce bouhh, safety, and zoning codes to eliminate conditions which are detrimental to the health, safety and welfare of residents. Policy 5.5} Promote preservation of historic and architecturally significant residential properties. Policy 5.6: Study and revise existing zoning codes, if warranted, to provide flexibility to facilitate additions and improvements to existing historic and architecturally significant residenta|properbps. Policy 5.7: Review existing guidelines for single- and multi-family rehabilitation programs, including income targeting and neighborhood location, to achieve maximum nei*hhorboodrevitaU�mtion� �_ ENVIRONMENTAL SENSITIVITY Housing and land use patterns can have substantial impacts on the natural as well as the built environment. City policies and programs seek to oinbz-tize negative environmental impacts. GOAL h: Ensure that new bwmstu# is sensitive to the existing natural and built environment. Policy 6.1: Attempt to locate new housing facilities in proximity to services and employment centers thereby enabling walking or bicycling to places of employment. Policy 6.2: Promote energy conservation measures in the design of new housing units and the redevelopment of older housing units. Policy 6.3: Require design review of lot placement in subdivisions to maximize passive solar energy and solar access. Policy 6.4: Promote water efficient landscapes, efficient irrigation, and use of permeable paving materials. CITY 0F?DST0 HOUSING ELEMENT GENERALPLAN 63 Policy 6.5: Streamline processing for approved green Policy 6.6: ~~^~^~`v~~�r°^^ m '=""=" withutility_ co uY�' companies promote energy rebate programs. The goals and policies described io the Housing Element are related ho and support the goals and policies included within other General Plan elements. Many goals and policies from the other elements directly or indirectly support the goals and policies nf the Boosio� Element. These eoppor�ng goals and pn|ideaare iden�OedioTable H-16. TABLE H- 16 HOUSING RELATED GOALS AND POLICIES BY ELEMENT CITY 0F?nS1ON DOn0DXQ~ELEME0T GENERAL PLAN 64 RELATED GOALS AND POLICIES BY ELEMENT Housing Land Conservation/ Public Growth Issue Area Use Housing Circulation Open Space Safety Noise Management Housing 13A, _,2pportunities 13.10 1,1,1.10 2.5,3,1,4.1 Maintenance 1.1,4.6, Preservation 6.6 5.4 1.7,2.2 Affordable Housing Support Sensitivity 13.1 3.5 1212,31,4A _I 4.12 11.12 1 CITY 0F?nS1ON DOn0DXQ~ELEME0T GENERAL PLAN 64 HOUSING ELEMENT IMPLEMENTATION PROGRAM The Housing Element Implementation Program provides specific actions the City intends to undertake to achieve the goals and policies of the Element. This section identifies quantified objectives, available financial resources and affordable housing resources, and provides a list of specific programs the City intends to pursue. Housing programs include those currently in operation andoewpcograzosaddedtn address housing needs. /\ description of each program is provided, along with the program funding source, responsible agency, and time frame for implementation. A review of City's past performance nn housing element implementation programs is contained io Appendix Aof the Housing Element. 0=0 -1-JECTIVES 2014-2021 State |nw requires the City to accommodate its fair share of the State's housing need. In doing so, the City must quantify the number of homes that are projected to be built and conserved. The following quantified objectives are adopted as guidelines toward meeting Tustio/s housing needs through 2O21. It is important to note that while the quantified objectives of the I{HN/\ are required to be part of the Housing Element and the City will strive to attain these objectives, Tustin cannot guarantee that these needs will bemet given its own limited financial resources and the present affordability gap. Satisfaction of the City's regional housing needs will partially depend upon cooperation of private funding sources and the funding levels of County, State, and Federal programs that are used to support the needs o{ the very-|nvw, low and omderate-incomepersons. Additionally, outside economic forces heavily influence the housing market. New Construction Objectives The City nfTustin promotes and encourages the development of variety of housing opportunities to accommodate current and projected housing needs which include 283 very lnw-,I95|ow-,224znoderote- and 525 above moderate-income households per the 2012 Regional f{ooaiug Needs Assessment /RHN4J allocation. While the Land Use Plan provides adequate sites to {o]fiD needs established by IOHN}\, construction of new units will depend upon the timing of the landowner and developer in the submission of building plans to meet market demands. Housing subsidies will depend upon the avai|abditvofgovernnnendfonds - local, County, State, and Federal. Development projects are subject to the interests of private developers. The construction of secondary units depends upon the desires of the property owners as related to family needs for housing and economic resources. The achievements of the housing objectives are thus dependent upon the private sector and other governmental agencies. The responsibility of the City is to encourage the construction of affordable housing by providing programs and assistance to CITY 0PTUSO0 HOUSING ELEMENT GENERAL PLAN 65 developers and to assist in its creation by facilitating the review and approval of development permits. Table H-17 provides new construction housing objectives for the period 2014-2021. With the exception of Tustin Legacy, all sites identified in Table H-17 are privately owned. Units identified are broken down into various income limits in light of RHNA percentages. Table H-13A discusses the City's progress toward achieving the RHNA quantified objective. Based on units approved or under construction, the City of Tustin has the following remaining units to achieve RHNA's construction objective: 195 Very Low Income, 122 Low Income, 123 Moderate Income and 29 Above Moderate Income units. The City will make its best efforts to accommodate this objective by carrying out the following projects and/or programs: Preservation Pursuant to Government Code Section 65583.1(c), up to 25 percent of the lower income RHNA may be fulfilled with existing units when affordability is achieved through: • Affordability covenants placed on previously non-affordable units; • Extension of affordability covenants on affordable housing projects identified as at risk of converting to market-rate housing; and • Acquisition/ rehabilitation and deed restriction of housing units, With RHNA allocated 478 lower income units, the City may fulfill 120 lower income units (71 Very Low and 49 Low) through preservation of existing housing units. As identified in the Preservation of Units At-risk for Conversion section of the Housing Element, there are a total of 100 units at risk for conversion during the planning D period at Tustin Gardens. . I The City, in anticipation of this opportunity, had programmed $2,181,672 of RDA housing set aside funds in the Agency's Comprehensive Affordable Housing Strategy's Six- Year Capital Plan to negotiate the preservation of these units. The City Council in their capacity as the Redevelopment Agency (eliminated 2011) adopted the Comprehensive Affordable Housing Strategy (CARS} in June 2008 committing up to $2,181,672 of Agency Housing Set-Aside funds for the preservation efforts of these at-risk units. However, the dissolution of Redevelopment in 2011 effectively eliminated the primary source of funding that could be used to preserve these units at risk of conversion. As presented in Table HTM-34 of the Housing Element Technical Memorandum, the City has fulfilled a portion of its regional share for very low and low income households (362 and 127 units respectively) during the prior planning period, rendering the City eligible to utilize the alternative site program, if desired. The City is in contact with Tustin Gardens regularly and has expressed interest in ensuring the continuation of these affordable units. The City is also in contact with residents CITY OF TUSTIN GENERAL PLAN 66 HOUSING ELEMENT t0 allow for active public participation with current residents toensure continued affordability. ilms. Tustin Gardens maintains a Section 8 contract for rental assistance. They are currently approved through Tn|n lS, 2014 with a that they provide a one-year notice to terminate their current Section 8 contract. The earliest date affordability restrictions can expire isJuly 2015. The city will make every effort to assist the owner obtain an extension of the i|iJ[) Section R contract. Considering the earliest possible scenario of affordability restrictions expiring July 2015, the total cost of subsidizing Ioedo Gardens for the term of the Housing Element, July 2O14tn October 2O21, would he about $4,205,400. The City believes Tustin Gardens is a viable project bo receive 4'/'0 Tax Credit, Tax- Exempt Bond funding. Tustin Gardens is a l00% aKno]aWe\ very-low income Senior Project. The (]tv would work with the current ovvuez to establish a non- profit affordable housing entity to apply for 4% Tax Credit, Tax-Exempt Bond funding for the acquisition and rehabilitation of Tustin Gardens. New Construction: Tustin Legacy Forincr Master Developer Footprint (Ncigliborlioods D and G) As mentioned throughout the Housing Element, the closure of the MC&STustio provides the City with opportunity to create affordable units to accommodate the needs ofthe residents. The City in200ladopted the MCA5 Tustin Specific Plan and — in 2003 designated the MCAS Tustin as a Redevelopment Project area and adopted the MCASTustin Redevelopment Plan (eliminated 2011). As part of the adopted Specific Plan, m total of 4,210 housing units were authorized and to date 2,105 units have been constructed. The 2^105units yet to be built are under the Former Master Developer footprint. 758 units within Neighborhoods D and G have been approved. 190 of these 758 units are approved density bonus units. Therefore the remaining development potential iSI,537 units (2,l05+l9O-758), plus any future density bonus units. lo Neighborhood D, the maximum density on any individual parcel may exceed 25 dwelling units per acre as |uog as the total dwelling units allocated to Neighborhood I}is not exceeded. Thus, a default density of30 units per acre could he achieved in Neighborhood D. The remaining development potential in Neighborhood Dia5l5 dwelling units plus potential deosityhoonaunits. The development of Tustin Legacy is anticipated to occur the Housing Element planning period Neu) Ozvnership and Rental outside «f Tustin Legacy Abntal development potential of587 dwelling units outside ofTustin Legacy has been identified during the Housing Element Nanning period on vacant and underutilized sites. However, these sites are not required to satisfy the City's 8HNA. CITY 0F?DS7l0 {E08RALPLAN 67 HOUSING ELEMENT Other New Construction Units It is likely that other will mzuz through Second Units and the recycling of single family uses on zoned lob. Based upon recent development proposals, the City has observed increased interest in the development of, second units and the addition of units within multiple [aznUy dwelling properties occupied by single land|y dwellings. The cost to construct these units would be borne by the property owner. However, the City would facilitate the development process. bo addition, based upon past development trends Grove and Ambrose Lane) that utilized Planned Community Districts to allow for higher densities, the actual number of units created could be higher than identified. The City will strive to ensure that newly constructed units are developed at sufficient densities to assist in fulfillment of low and very low income needs hw employing inclosionaryzoningfoc those sites located within former Redevelopment project areas, mixed use zoning in Old Town Tustin, density bonuses particularly in ioUll sites to allow for increase densities to accommodate affordable housing developments, and Planned Community Districts to allow for flexibility in development standards. Tustin Legacy Housing UniLs' TABLE B- Extremely NEW CONSTRUCTION QUANTIFIED OBJECTIVES SUMMARY CITY OFTUS0N Program 2014-201 Tustin Legacy Housing UniLs' Extremely Program Total # Low and Low Moderate Upper Neighborhood G 1,247 88 73 64 1,022 Tustin Legacy Housing UniLs' Neighborhood D 1,048 195 122 160 571 Neighborhood G 1,247 88 73 64 1,022 Preservation3 100 100 New Ownership and Renta 1 Housing 587 131 90 124 242 Second Unit 10 10 Recycling of SF uses to MFD in R-3 district 8 8 Total Quantified Objectives 3,000 514 303 3 8 1835 RHNA 1,227 283 195 224 525 Difference 1,773 231 108 124 11310 CITY 0FTUSTD« GENERAL PLAN 68 HOUSING ELEMENT TABLE H -17 NEW CONSTRUCTION QUANTIFIER OBJECTIVES SUMMARY CITY OF TUSTIN 2014 -2021 1 MCAS Tustin Specific Plan authorizes a total 4,210 potential units (plus density bonus units) at Tustin Legacy. Based upon the Specific Plan requirement, at Least 15 percent of the total units (632 units) would be affordable to Very -Low, Low, and Moderate income households, of which at Least 6 percent or 253 units would be affordable to Very Low income households. A total of 296 affordable inclusionary units were included in the authorized total number of units to be developed at Tustin Legacy. Of the 4,210 units, 2,105 units have been completed. A total of 2,105 units (plus density bonus units) are planned within Neighborhoods D and G. Within Neighborhoods D and G, 758 units have been approved and /or are under construction, including 88 Very Low, 73 Low, 101 Moderate, and 496 Above Moderate units, including 190 density bonus units. 2 See Table H -13 and associated discussion for project details. Pursuant to State Law, up to 25 percent of the lower income RHNA may be fulfilled with existing housing units. 70 Very Low and 48 Low Income units are eligible for credit toward RHNA. 4 Pursuant to Government Code Section 65583(x) (1), City's share of extremely -low income units is 142 (50 percent of the RHNA Very Low income households' new construction objective). Total number of units for extremely - low income and low income units equals to City's share of very -low income units of 283 units Source: 2012 RHNA; Citv of Tustin; MCAS Tustin Specific Plan. Preservation, Rehabilitation, and Other Affordable Housing Program Objectives The primary beneficiaries of Preservation and Rehabilitation and Assistance programs are renters and low- income homeowners. It is assumed that above - moderate- income households will rehabilitate units as needed through private efforts. Tustin's affordable housing strategy is based on the City's housing needs, affordability gap analysis, and available financial resources. Several broad policies establish the framework for the City's Housing strategy as applied to preservation, rehabilitation, and other housing program objectives. These include: 1. Conserve, maintain, and rehabilitate existing housing and revitalize existing neighborhoods; 2. Maximize the supply of affordable housing; 3. Increase homeownership; 4. Preserve the existing supply of affordable housing; and, Consistent with the above policies the City has devised a number of programs of housing assistance to address the preservation, rehabilitation, and other housing program objectives. Specific details on these programs can be found in the City of Tustin Comprehensive Housing Affordability Strategy for Fiscal Years 2008/09 to 2017/18. In addition, Table H -22 - Housing Element Programs 2013 -2021 outlines the City's specific housing programs during the planning period. Summary of Quantified Objectives CITY OF TUSTIN GENERAL PLAN 69 HOUSING ELEMENT d N Mp Extremely Total # Low and Low Moderate Upper Program of Units Very Low `t ( <80 %) (80- 120 %) (120 % +) ( <50% 1 MCAS Tustin Specific Plan authorizes a total 4,210 potential units (plus density bonus units) at Tustin Legacy. Based upon the Specific Plan requirement, at Least 15 percent of the total units (632 units) would be affordable to Very -Low, Low, and Moderate income households, of which at Least 6 percent or 253 units would be affordable to Very Low income households. A total of 296 affordable inclusionary units were included in the authorized total number of units to be developed at Tustin Legacy. Of the 4,210 units, 2,105 units have been completed. A total of 2,105 units (plus density bonus units) are planned within Neighborhoods D and G. Within Neighborhoods D and G, 758 units have been approved and /or are under construction, including 88 Very Low, 73 Low, 101 Moderate, and 496 Above Moderate units, including 190 density bonus units. 2 See Table H -13 and associated discussion for project details. Pursuant to State Law, up to 25 percent of the lower income RHNA may be fulfilled with existing housing units. 70 Very Low and 48 Low Income units are eligible for credit toward RHNA. 4 Pursuant to Government Code Section 65583(x) (1), City's share of extremely -low income units is 142 (50 percent of the RHNA Very Low income households' new construction objective). Total number of units for extremely - low income and low income units equals to City's share of very -low income units of 283 units Source: 2012 RHNA; Citv of Tustin; MCAS Tustin Specific Plan. Preservation, Rehabilitation, and Other Affordable Housing Program Objectives The primary beneficiaries of Preservation and Rehabilitation and Assistance programs are renters and low- income homeowners. It is assumed that above - moderate- income households will rehabilitate units as needed through private efforts. Tustin's affordable housing strategy is based on the City's housing needs, affordability gap analysis, and available financial resources. Several broad policies establish the framework for the City's Housing strategy as applied to preservation, rehabilitation, and other housing program objectives. These include: 1. Conserve, maintain, and rehabilitate existing housing and revitalize existing neighborhoods; 2. Maximize the supply of affordable housing; 3. Increase homeownership; 4. Preserve the existing supply of affordable housing; and, Consistent with the above policies the City has devised a number of programs of housing assistance to address the preservation, rehabilitation, and other housing program objectives. Specific details on these programs can be found in the City of Tustin Comprehensive Housing Affordability Strategy for Fiscal Years 2008/09 to 2017/18. In addition, Table H -22 - Housing Element Programs 2013 -2021 outlines the City's specific housing programs during the planning period. Summary of Quantified Objectives CITY OF TUSTIN GENERAL PLAN 69 HOUSING ELEMENT d N Mp Table H-18 summarizes the City's Quantified Objectives for the 2Ul3-2O21 period. Based on the requirements of AB 2634, statute of 2006 Code Section 65583(a)(1)), each jurisdiction must address the projected need of Extremely Low- Income households, defined as households earning less than 3O percent of the Area Median Income (AM0. The projected Extremely-Low Income need isassumed to be 50 percent of the Low Income need or 142 units based upon the percentage of extremely-low income households contained in the regional housing needs assessment determined by SCAG using American Community Survey data as the TABLE H- 18 SUMMARY O8 QUANTIFIED OBJECTIVES CITY CFT0STIN Income Group RHNA New Construction Very Low 141 514 Extremelv-Low 1421 142 Low 195 303 Moderate 224 348 Above Moderate 525 1,835 Total 1,227 3,000 `Pursuant mGovernment Code Section 65583W(1), City's share aextrernely-low income units/y142 (50 percent of the total Von, Low Income new construction ubjeu°e). Source: 2012 RHNA, SCAG, 2005-2009 ACS The City has prepared a Consolidated Plan and Comprehensive Housing Affordability Strategy identifying and describing all funding programs available to the City and Tustin Redevelopment Agency (eliminated 2UIl\bu assist in meeting the City's housing needs. Included in the plan are descriptions of a wide variety of l housing assistance programs available from federal and state agencies and private lending institutions. More specific information including details regarding eligible projects and activities and. funding availabilitv can be found in the document. The following is a summary of this information along with updates to reflect new state and federal programs. CITY 0FTUS7l0 HOUSING ELEMENT GENERAL PLAN 70 The key 8VorCe of local funding for affordable and preservation in Tustin was the Tustin Community Redevelopment Agency's (eliminated 2011) Low and Moderate Income Housing Fund, �� bmwnaa�� � Percent Set-Aside Fund. The estimated fund balance in the Agency's Low and Moderate Income Housing Fund as of June 30, 2007 was $17.86 million. With the dissolution of redevelopment in 2011, these funds are no longer available. w Preservation of At-Risk Affordable Housing Rental Units The CitV of Iuebo has identified the preservation of existing affordable housing � most maintaining the stock of affordable housing therefore a high-priority prog7unnfortheCby, The City has identified 10] units ofat-risk housing with expiring use restrictions within the eight-year planning period. The amount of assistance provided will be negotiated based on the specific economics of each development and the potential availability of leverage financing, such as tax- exempt bonds and 4% tax credits. . * Single- and Multi-Family Home Rehabilitation Program The City �basidentified and multifamily home rehabilitation loans loans aod grants as another cost-effective method of extending the 0e of affordable housing in the community. Based oo available funding, the City will target single-family neighborhoods in the vicinity of the Town [enter opportunity area as part oI the Town Center revitalization effort, as well as multifamily units citywide. 0 First-Time Foreclosure Negotiated Por«homo The City's First-Time Program provided down payment and second mortgage assistance to |ovv and moderate income buyers to assist them to purchase au existing home in the City. The recent mortgage credit crises have resulted in increasing foreclosure rates throughout many parts of California and the nation. The City will seek funding to assist new first-time hooebuyersin purchasing a home. This may include negotiated purchase of homes in foreclosure, which may represent a lower cost buying opportunity for first-time bomebnyers. ° Homeless Assistance and Supportive Services The City has allocated $88.090 in 2013/I4 C]DG � funds to continue its financi /suppo rto/homolessassistanceand �vy}u,.r servicesinthe City. CITY OFTDSIl0 HOUSING ELEMENT GENERAL PLAN 71 The City's goal for this program is to assist 200 homeless individuals per year over the projection period. 0 Tustin Legacy New Construction The City's mclusionary housing requirements for Tustin Legacy require a minimum of 453 new affordable units in Planning Areas D and G combined, including 126 units affordable to very low income households, 95 units affordable to low income households, and 232 units affordable to moderate income households. • Administrative Support The City and the Tustin Housing Authority will provide administrative support to implement its affordable housing activities. The City has initiated the development of additional very low, low and moderate income housing in the MCAS Tustin Project Area through density bonus incentives. The City is not an entitlement jurisdiction for HOME funds, but may apply MEMO to the State for HOME funds as described in a separate report prepared by DRA entitled Affordable Housing Assistance Programs, presented as Appendix C of the Comprehensive Affordable Housing Strategy. The City is an entitlement jurisdiction for Community Development Block Grant (CDBG) funds. For FY 2012/13, the City of Tustin was allocated $587,277 in CDBG funds. These funds may be used for a number of community development purposes besides housing. Given the many competing needs for these funds and the restrictions on these funds for housing purposes, the City does not typically allocate CDBG funds for affordable housing development. As needed and as shown on Table H-21, the City will utilize State and Federal resources to leverage local resources as these funding sources match the City's programmatic objectives. Table H- 21 is a summary of affordable housing resources. 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Faj �z U C7 Appendix to Hawing Element O APPENDIX A REVIEW OF PAST PERFORMANCE CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 111 Appendix to Housing Element This page intentionally left blank, CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN 112 Appendix to Housing Element State \av/ establishes an uvde regulating housing element updates. In compliance with the SCAG cycle, the Tustin Housing Element was updated bo|989 at vvbiob time it was found to be in compliance with State law, and was updated again in 1994. In 1497, the City of Tustin initiated a comprehensive General Plan update, and the Housing Giermsot was again updated to accommodate the K4CAS Reuse Plan and to ensure consistency with other General Plan Elements, as well as to address recent changes in State law. These amendments were adopted on January }6,2OOl. In2O02 and 2O09, the City updated its Housing Element and was certified by The State's Housing and Community Development Department in compliance with State's Law. Review of Past Housing Element Objectives The 20O7SC/\G Regional Housing Needs Assessment indicated aoew'constrnctb7o need in Tustin by 2014 of 2,381 units, of which 512 units were for very low income households, 410 for |ovv income, 468 for moderate income and 991 for above moderate income. The following discussion highlights tbc progress, effectiveness and appropriateness of 2006-2014 Housing Element Objectives and the progress achieved during the 2006-2014 time period. Table |fTM-35 in the Technical Memorandum provides a more detailed summary of the City's overall accomplishments for the years 2006- 2014. As indicated bz Table KTM-35,the City was successful bn accomplishing the majority of tm objectives established for the past planning period. According to City Staff, the following objectives were completely oz partially met, orexceeded: New construction 2,102 units were constructed during the the City's objective of 4,368units for the planning period. Available Sites The program objective was to primarily utilize Planned Community Districts and Specific Plans to authorize and encourage mixed-use developments to assist in the development of new affordable owner and rental housing. The program has seen development of2,Ol2 units over the 8 year period. Mobile homes The objective to maintain existing units was CITY OFTD9TIN HOUSING ELEMENT GENERALPLAN 113 1_2 a.ixo Appendix to Housing Element Deed restricted affordable oubs The objective of requiring deed restrictions to ensure continued affordability for low- or moderate-income housing constructed or rehabilitated with the assistance of any public funds as may be legally required was successfully met Between the years 2OO6-2UI4`243 restricted units were established. Pre-application conferences The objective to continue to utilize pre-application conferences and processing procedures to expedite processing was carried out during the review period. Transitional Housing Housing opportunities for all economic segments The program to monitor the implementation of the affordable housing program adopted aso part ofthe East Tustin Specific Plan has successfully met the objective of monitoring 174 units in East Tustin over the 10 year period. CITY 0PTUS7lN HOUSING ELEMENT GENERALPLAN 114 The program objectives were to promote, assist, and facilitate the development of emergency and transient shelters through continued support of the County Homeless Assistance Program, and to support local agencies that provide homeless services with financial assistance. Also, the adoption mfaSingle Room Occupancy Ordinance was to be considered. The program has been effective in maintaining homes with total ofi6beds through the period, ae well as 90 beds at the Orange County Social Services Tustin Funzh/ Campus facility as a shelter for abused and neglected children and their parents and for emancipated youth. Temporary housing for the homeless NINE The program to support countywide efforts to assist approved homeless providers as part of the MC/\S Tustin reuse effort was outlined in a series of specific objectives, all of vvhb:h were achieved. /\ large variety of temporary and transitional facilities to be operated by various homeless providers have been developed at Tustin Legacy, as follows: Construction of the I92-bed \/U|mge of Hope facility to be operated by the (]range County Rescue Mission is complete. Twenty-three units of transitional housing operated by the Salvation /\rnTy have been completed at Tustin Field |, as well as acquired in the city of Buena Pork with the City ofTuyNz's assistance. Six new transitional units for women and children have been completed in the Columbus Grove development at Tustin Legacy, operated by Human Options. An additional 6 units have been completed at Columbus Grove for families with children, operated by (}range [oast Interfaith Shelter. Finally, 14 units at Columbus Grove provide transitional housing for families with children byFamilies Forward (formerly Irvine Temporary Housing). Housing opportunities for all economic segments The program to monitor the implementation of the affordable housing program adopted aso part ofthe East Tustin Specific Plan has successfully met the objective of monitoring 174 units in East Tustin over the 10 year period. CITY 0PTUS7lN HOUSING ELEMENT GENERALPLAN 114 Appendix to Housing Element Bonding Programs Prior to its dissolution, the Redevelopment a bond financing program that processed atotal of 252 restricted units for w and low income households to accomplish Five-Year Quantified Objectives and help meet the City's affordable housing needs. Senior Citizen Housing The objective hz protecting and providing senior citizen housing was identified aa the preservation of 00 at-risk units. The I00 at-risk units were preserved throughout the review period. Senior Services Program The City's objective to develop n senior services program consisting of a comprehensive tnxuapndadon program, case management, information and referral, and a shard housing program to assist 85Oelderly annually was exceeded with approximately 400 elderly receiving served meals annually between 2006 and 2014 and ntbara receiving other services. Ongoing Review of Housing Element Programs The objective to conduct on review of Housing Element programs by preparing an annual report to the Planning Commission assessing the previous Bill years' accomplishments toward meeting Housing Element objectives and tbpo submitting the annual report to the State L{C[} was achieved. Zoning Studies The City was to undertake studies toconsider new programs toencourage and promote affordable housing and recommend appropriate amendments for action by the Planning Commission and City Council. The program was effective in that the City completed the Market Analysis and conducted community meetings to gather input for the Town Center ANew Beginning Study, and the City adopted a Reasonable Accommodation Ordinance io2DIl. Private Streets ko order to reduce construction costs, the []tv adopted standards for private streets and continued to permit developers to install private rather than public streets when feasible. In the 2006-2014 period, private streets were created at Tustin Legacy. Site Improvements New developments ire the construction of site improvements vvbicb one often costs that are passed on from the developer to the housing consumer, creating an CITY OPIV3TI0 HOUSING ELEMENT GENERALPLAN 115 Appendix to Housing Element even greater barrier to qualifying for the purchase of home. kn order to reduce these added housing costs, the objective was to evaluate the use of special assessment district funding at K1CA5 Tustin (Tustin Legacy) as well as in other developing areas. During the 2006-2014 period, one of the community facilities district (CF[)) bonds was refunded to take advantage of lower interest rates, thus reducing costs to property owners. /\dciibnnoUy, a now (_FD was created at Tustin Legacy, and several special assessment district bonds from the mid-90s were defeased. Environmental Constraints The goal was to require program Environmental Impact Reports (EN) on all major development projects to decrease the delays in processing and incorporating mitigation requirements into the development plans. During the Housing Element Planning Period, the Final Program GlS/BlR for WAS Tustin served as the program FIR for the implementation of Tustin Legacy. Density Bonus Program The objective was to process all requests for density bonuses in order to facilitate the construction o[ affordable housing. During thcRousing Element Planning Period, the Density Bonus Ordinance was updated. Between 200I-2008,Lennar/Lmowere granted 182 density bonus units for the creation of affordable units at Columbus Square and Grove. WAS Tustin Redevelopment Project Area The goal to create a new redevelopment project area for the MC/\S-Tustin site by adopting the MCAS-Tustin Specific F1en and Redevelopment Project area was attained. However, all redevelopment agencies in California were eliminated in 2011. Fair Housing The City's objective to provide housing counseling services hn assure equal housing ties hr assisting approximately 400 residents annually and 3,OOOresidents hv2O]4 was partially met. Between 2OOb and 20I4, over l,DO0 Tustin residents were provided with housing counseling services. Shared Housing The City continued to provide coordination and support to an Orange County housing sharing program. CITY 0FTUS17N HOUSING ELEMENT GENERALPLAN 116 Appendix to Housing Element Housing Referral The Cdv continued to provide housing referral services to families in need of housing assistance and information through the Police, Parks and Recreation Services, and Community Development Departments. The objective was tomake 7,500 referrals to social agencies and 50 referrals for shared housing by 2014. Between 1998-2000, 4,375 social service referrals and 25 shared housing referrals were made. Replacement Housing The program objective was to ensure rehabilitation or construction of an *onu number nf replacement units when low and moderate income residential units are destroyed or removed from the market. The []tv has exceeded its replacement housing obligations. Housing Rehabilitation The goal to rehabilitate 162 units by allocating CDBG and Redevelopment Agency (eliminated 2011) funds to finance public improvements and rehabilitation of residential units in target areas was partially achieved. /\ total of 20 units were assisted with RDA funds over the review period. Housing Authority The program to contract with the Orange County Housing Authority /[)CHA\ for the development and operation of federally assisted ]ow and moderate income housing programs was continued Rental Assistance The program to provide rental assistance through Section 8 certificates and voucher certificate program assistance funds through the ()C[1/\ was successful over the review period. The objective toissue 20O certificates/ vouchers annually and l,20O by 2014 was exceeded. Between 2008 and 2012, 1,704oertificates/voocbero were issued. Affordable Senior Housing Project and Senior Board and Care Facility The program objective to maintain 74 units of affordable senior housing (20 units at l7432,l7442 Mitchell Avenue and 54 units atI311Sycamore was achieved. Over the review period, 74boosiug units were maintained. Preservation n{ Assisted Housing Tustin has a total of I00 |nvv income units that have been at risk of conversion during the review period. The objective to monitor and preserve all of these units at risk was completed successfully. CITY 0FIDSTIN HOUSING ELEMENT GENERAL PLAN 117 Appendix to Housing Element Enforcement of Building and Housing Codes The City's Code enforcement conducted over 224O property maintenance and housing code related inspections between 2008 and 2012. The City has been successful in getting property owners to abate code violations. Cultural Resources District The purpose of the City's Cultural Resources Overlay District is to safeguard the heritage of the City by preserving neighborhoods and structures that reflect the City's heritage and post. The objective in the planning period was to rate historic structures where applicable and process certificates of appropriateness as received. Between 2000 and 2012, the Community Development Department issued 89 Certificates of Appropriateness certifying building changes were consistent with design guidelines and appropriate within the District context. Energy Conservation All new construction is required to be subject to state energy conservation (Title 24) requirements as a condition for the issuance of m building permit. Between 2008 and 2012,1,231 new units were required by the City to meet these standards. CITY OF Tn87O« HOUSING ELEMENT GENERALPLAN 118 APPENDIX B AFFORDABILITY GAP ANALYSIS I Bill CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN rA III City of Tustin Affordability Cap and leveraged Financing Analysis 1.0 Executive Summary The City of Tustin retained David Paul Rosen & Associates (DRA) to prepare an affordability gap analysis and evaluation of leveraged financing options for new residential development in Tustin. The "affordability gap" methodology determines the difference between the supportable mortgage on the unit at affordable rents and sales prices and the actual development cost of the unit. The gap analysis provides planning-level estimates of the typical per unit subsidized required to make different types of housing affordable to households at alternative income levels. The per unit affordability gaps calculated in this report are based on housing prototypes that are 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 ancVor competitive standards of the leveraged financing programs). However, the results can be used in estimating subsidy requirements for mixed income IMF housing INE IN developments as well. Under the assumption that the market rate units are IMMIMM financially feasible without subsidy, the subsidy requirement for a mixed income development can be estimated by multiplying the number of affordable units by the appropriate per unit affordability gap. The results of the gap analysis provide a useful tool to the City of Tustin and Tustin Redevelopment Agenve 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 the amount a tenant or homebuyer can afford to contribute to the cost of renZing 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 tevva8ed Financing Anahiis Page I N3 xv 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 n obligation of the landlord or owner. Supportable financing is deducted from the totardevelopment cost less any owner equity or downpayrnent 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'lle difference between development costs and the supportable mortgage plus the buyer's down payment. Affordable housing costs for renters and owners are calculated based on California Redevelopment Law definitions and occupancy standards. Household income is adjusted based on an occupancy standard of one person per bedroom plus one. The aps for the owner prototypes 'are summarized in Table 1. The gaps have been MEN MUMMA calculated for the following three income levels:. AN, - PON Affordable Income Limit Housing Cost 1. Very Low Income 50% of Area Median Income (AMI), adjusted 30% of 50% AMI for household size 2. Low Income 809/6 of AMI, adjusted for household size 30% of 70% AMI 3. Moderate Income 120616 of AMI, adjusted f6r household size 35% of 110% AM! Depending u n the source of subsidy for ownership housing, the gaps may vary. For ' exam le I'Mral HOME funds do not require deduction of a utility allowance in the calculation n 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 I 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 Cap and Leveraged Financing Analysis Page 2 0" N Income Limit 1. Very Low Income 50% of Area Median income (Aml), adjusted for household size 2. Low Income 80% of AMI, adjusted for household size 3. Moderate Income 120-1, of AMI, adjusted for household site Affordable Housing Cost 30% of 509/6 AMI 30% of 60% AMI 30% of 1100/6 AMI E)RA produced, under separate cover, a comprehensive review of Federal, State, and private sources of funding that might be used to subsidize affordable rental and ownership housing in Tustin. For ownership housing, per unit mortgage assistance, as available, Tgenerally reduces the gap on a dollar for dollar basis. For rental developments, the use of e 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 rL%quired.' Therefore, for the rental prototype,. we have examined the following leverage scenarios: I . 9% Low Income Housing Tax Credits (Federal only)'; 2. 4% tax credits with tax-exempt bonds, and 3. 4% tax credits, tax-exempt bonds, and the Multifamily Housing Program (MHP) of the California Department of Housing and Community Development (HCD). The assumptions and findings are described in the followin section. The sources and I" 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 2007, projects in 01111 OWN the County are eligible for a 130% basis boost for the calculation of Federal tax credits but are not eligible for State tax credits. City of Tustin Affordability Cap and Leveraged Financing Analysis Page 3 Source: David Nu! Rosen & Associates City of Tustin page 4 /affordability Gap and Leveraged Financing Analysis yy Table 1 Homeowner F`er Unit Subsidy Requirements' City of Tustin 2008 Very Low Low Moderate ..Prot& gLV nit Bedroom Count ... p income= Incomes Incomed- Owner Prototype #1' Attached Townhome Two Bedroom $366,000 $322,400 $195,500 Three Bedroom $387,800 $339,400 $198,400 Four Bedroom $426,800 $374,600 $222,300 Average $393,500 $345,500 $205,400 owner Prato" $126 Stacked Fiat Condominium One Bedroom $258,600 $219,900 $107,100 TWO Bedroom $259,000 $215,500 $88,600 Three Bedroom $267,100 $218,800 $77,8()0 Four Bedroom $290,500 $238,300 $86,000 Average $268,800 $223,100 $89,900 Owner prototype #37 High Density Condominium One Bedroom $407,500 $368,800 $256,000 Two Bedr000rn $432,500 $389,000 $262,100 Three Bedroom $542,000 $493,700 $352,600 Four Bedroom $569,400 $517,200 $364,800 Average $487,900 $442,200 $308,900 Owner prototype #40 Mixed Use, Ground Floor Retail One Bedroom $491,700 $453,000 $340,200 ' Two Sedr000m $537,400 $493,900 $366,900 Three Bedroom $595,000 $546,600 $405,600 Average $541,300 $497,800 5370,900 Source: David Nu! Rosen & Associates City of Tustin page 4 /affordability Gap and Leveraged Financing Analysis yy Notes to Table 1: I 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 So percent o(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 MIAMI, ® NOW adjusted for household size. Average low income affordable home purchase price is $116,457. R-' Moderate income owner affordable housing cost is calculated as 35 percent of 110 percent of Aml, adjusted for household size. Average moderate income affordable home purchase price is $249,723. s owner Prototype -11 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 4 Owner Prototype 92 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. 7 Owner Prototype 13 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 I Owner Prototype $4 average unit size is 1,515 square feet. Average per unit development cost is $608,112. Per unit development costs are adjusted by unit size/bedroom count. City of Tustin Affordability Cap and Leveraged Financing Analysis Page S Table 2 Tenant Per Unit Subsidy Requirements' Rental Housing Prototype: Stacked Flat Apartments City of Tustin 2008 Unit Bedroom Count r • slim Two Bedrooms Three BedrooM7 Four Bedroom's Average Renter Prototype Stacked Flat Apartments Very Low Low Moderate Income Income' income' $311,300 $294,6bO $211,400 $348,000 $329,300 $235,600 $3,21,800 $301,000 $197,000 $402,000 $379,600 $174,800 $345,775 $326,125 $204,700 Source: David Paul Rosen & Associates. City of Tustin Affordability Cap and Lever-aged Financing Analysis Page 6 v IS 01 WE= rf 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 4300, 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 Califomia Redevelopment Law. 2 Very low income renter affordable housing cost is calculated as 30 percent of 50 percent of AM, adjusted for household size. Average very low income affordable monthly rent is $847. 3 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 AM, adjusted for household size. Average moderate income affordable monthly rent is $1,963. 5'One bedroom unit is 750 square feet. Per unit total development cost is $321,075. 6 Two bedroom unit is 950 square feet. Per unit total development cost Is $362,224. 7 Three bedroom unit is 7,050 square feet. Per unit total development cost is $382,799. 9 tour 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 WIPE Average Per Unit Subsidy Requirements Rental Housing Prototypen. Stacked Flat Apartrnents Leveraged Financing Scenarios City of Tustin 2008 Levera I—lumi-m—s—ce—n—a—rim gejL 4% Tax Credits, Tax-Exempt Bonds 4% Tax Credits, Tax-Exempt Bonds, Multi- Family Housing Program (MHP) Source: David Paul -Rosen & Associate& Renter Prototype Stacked Flat Apartments $140,100 O 01— N NEW= IM M City of Tustin Affordability Cap and Lewraged Financing Analysis Page 8 CIO This page intentionally left Wank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN Appendix to 1117- Housing Element , E IN �10 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN Appendix to Housing Element This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN APPENDIX C PUBLIC PARTICIPATION MAILING LIST wNr U �rywu CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN I This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN Veterans Service Dept. Dayle McIntosh Center Orange Coast Interfaith Shelter 4220 Lemon Street 13272 Garden Grove 1963 Wallace Street Riverside, CA 92501 Garden Grove, CA 92843 Costa Mesa, CA 92627 YMCA of Orange County 13821 Newport Ave., Suite #200 Tustin, CA 92780 Tustin Area Historical Society & Museum 395 El Camino Real Tustin, CA 92780 Probation Community Action Assoc. 18627 brookhurst Street #425 Fountain Valley, CA 92708-6748 Helen Anderson Hunger Coalitions 14452 Wildeve Lane Tustin, CA 92780 Diane Aust Tustin Area Council for Fine Arts P.O. Box 145 Tustin, CA 92781 Vanessa Bruner Learning for Life - Orange County 1211 East Dyer Santa Ana, CA 92705 Holly Hagler ommunity Services Programs Inc. 1200 N. Knollwood Circle Anaheim, CA 92801 Keith Rhodes Big Brothers & Sisters of OC 14131 Yorba Street, Suite 200 Tustin, CA 92780 John Von Glahn Family Service Association 18001 Cowan, Units C-D Irvine, CA 92714-6801 Assistance League of Tustin P.O. Box 86 Tustin, CA 92781 Legal Aid Society of Orange County 2101 N. Tustin Avenue Santa Ana, CA 92705 Mardan Foundation of Educational Therapy I Osborn Irvine, CA 92604 Allen Baldwin OC Community Housing Corp. 2024 N. Broadway, 3rd Fir. Santa Ana, CA 92706-2623 001 Families First 12012 Magnolia Street Garden Grove, CA 92641-3346 Community Services Programs Inc. 1221 East Dyer Rd., Suite 120 Santa Ana, CA 92705 Ronald M. Griffith Century Housing 1000 Corporate Pointe, Suite 200 Culver City, CA 90230 Mary's Shelter P.O. Box 10433 Santa Ana, CA 92711 Doug Bistry Civic Center Barrio O.C. Affordable Housing Ell 980 W. 17th Street, Unit E 11-0 23861 El Toro Road, Suite 207 t Lake Forest, CA 92640-4733 Santa Ana, CA 92706 Jerry Caminti Disability Awareness Coalition 3773 University Drive, #118 Irvine, CA 92612 Patrick Carroll Life Share 11421 Garden Grove Blvd. Garden Grove, CA 92643 Donna Core Community Action Partnership of Meals on Wheels Orange County 1001 N. Tustin Ave. 11870 Monarch Street Santa Ana, CA 92707 Garden Grove, CA 92841 John Drew Family Solutions 203 N. Golden Circle Dr., #101 Santa Ana, CA 92705 Jason Suppes Four H Clubs of Orange County 1045 Arlington Dr. Costa Mesa, CA 92626 Janie Wolicki Women Helping Women 1800 East McFadden Ave., Suite IA Santa Ana, CA 92705 Mary Hadley Info Line Orange County 2081 Business Center Dr., Suite 130 Irvine, CA 92715 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN JUNE 16, 2009 Mercy House Transitional Living Ctr. P.O. Box 1905 Santa Ana, CA 92702 Warren Johnson Salvation Army 10200 Pioneer Road Tustin, CA 92780 Habitat for Humanity of Orange County 2200 S. Ritchey Street Santa Ana, CA 92705 Orange Children & Parents Together 1063 N. Glassell Street Orange, CA 92867 OCSPCA-Paws P.O. Box 6507 Huntington Beach, CA 92615 Charlene M. Ashendorf Laurel House P.O. Box 3182 Tustin, CA 92781 OC Council on Aging 1971 E. 4th Street, #200 Santa Ana, CA 92705 Donald VerLeur Olive Crest 2130 E. Fourth Street, Suite 200 Santa Ana, CA 92705 Barbara Resnick Western Dev, For Affordable Housing 112 E. Champan Avenue Orange, CA 92867 C1ge County Homeless Issues Task Force 1770 N. Broadway Santa Ana, CA 92706 Dawn Price Friendship Shelter, Inc. P.O. Box 4252 Laguna Beach, CA 92652 Judy Johnson ESA / Corporate Office 23861 El Toro Road, Suite 207 Lake Forest, CA 92640-4733 Elmer Hothus Christian Temporary Housing Facility 704 N. Glassell Street Orange, CA 92867 Becky Johnson Alliance for the Mentally III 621 S. "B" Street Tustin, CA 92780 Tustin Public School Foundation Children's Bureau of Southern 150 El Camino Real, #140 California Tustin, CA 92780 50 S. Anaheim Boulevard, Suite. 241 Anaheim, CA 92805 The Villa Center, Inc. 910 North French Santa Ana, CA 92701 Jonathan Stone Tustin Chamber of Commerce 700 W. First Street, Suite 7 Tustin, CA 92780 Easter Seal Society, Inc. 1570 E. 17th Street Santa Ana, CA 92705 Jim Miller American Family Housing 1,5161 Jackson Street Midway City, CA 92655-1432 Boys & Girls Club of Tustin 580 W. Sixth Street Tustin, CA 92780 Joyce Riley Learning Disabilities of Southern California P.O, Box 25772 Santa Ana, CA 92799 Kathleen Buehler The Blind Children's Learning Center 18542-B Vanderlip Ave. Santa Ana, CA 92705 Laura Archuleta Jamboree Housing Corp. 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Theresa Ma rji Legal Aid Society of Orange County 2101 N. Tustin Avenue Santa Ana, CA 92705 Sherry McCulley Legal Aid Society of Orange County 2010 N. Tustin Avenue Santa Ana, CA 92705 Ellen Waild Lutheran Social Service of Southern California 2560 North Santiago Blvd. Orange, CA 92867 Denise Y. Cato Fair Housing Council of OC 201 S. Broadway Santa Ana, CA 92701 Rich Gorham St. Vincent de Paul Center for Reconciliation 1505 E. 17th Street, Suite 109 Santa Ana, CA 92705 Susan Stokes Turning Point Center for Families 2101 E. 4th Street, #150-B Santa Ana, CA 92705-3814 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN JUNE 16, 2009 Donald Taylor 'eteran Charities of Orange County 201 S. Sullivan Street Santa Ana, CA 92704 Service People in Need 151 Kalmus #H-2 Costa Mesa, CA 92626 Tim Wells Episcopal Service Alliance 525 Main Street Huntington Beach, CA 92648 Lorri Galloway The Eli Home, Inc. 1175 N. East Street Anaheim, CA 92805 Vickie Talley OC Housing Providers 25241 Paseo de Alicia #120 Laguna Hills, CA 92653 Steve PonTell National Community Renaissance 9065 Haven Ave., Suite 100 Rancho Cucamonga, CA 91730 Debbie Phares Orange County Congregation Community Organization P.O. Box 2 Anaheim, CA 92805 Maury Ruano Mercy Housing 2240 W. Lincoln Avenue Anaheim, CA 92801 Mike Balsamo BIA Orange County Chapter 17744 Sky Park Circle, #170 Irvine, CA 92614 Kenneth W. Babcock Public Law Center 601 Civic Center Drive West Santa Ana, CA 92701-4002 CITY OF TUSTIN GENERAL PLAN Ed Gerber Lynne Tsuda Lestonnac Free Clinic Central Orange County YWCA 1215 E. Chapman Ave. P.O. Box 689 Orange, CA 92866 Orange, CA 92865 Patrick McCabe Karen Weisenberger Clyde Weinman Consumer Credit Counseling Irvine Temporary Housing Service 6427 Oak Canyon P.O. Box 11330 Irvine, CA 92620 Santa Ana, CA 92711 Randy Wenz Thomas Whaling Orange County Council BSA Shelter for the Homeless 1211 E. Dyer Street 24621 Ridgewood Circle Santa Ana, CA 92705 Lake Forest, CA 92630 Carol Anne Williams Pilgrimage Family Therapy Interval House 23201 Mill Creek Road, #220 P.O. Box 3356 Laguna Hills, CA 92653 Seal Beach, CA 90740 Hunter L. Johnson William O'Connell LILAC Housing Colette's Children's Home 110 Pine Street, Suite 500 17301 Beach Blvd., Suite 23 Long Beach, CA 90802 Huntington Beach, CA 92647 Patrick McCabe Steven Johsz Orange County Social Services, William Lyon Homes, Inc. Tustin Fan-Lily Campus 4490 Von Karman Ave. 1152 E. Fruit Street, Suite 550 Newport Beach, CA 92660 Santa Ana, CA 92701 Glenn Hayes Maria 1. Marquez Neighborhood Housing Services of Adult Mental Health Services Orange County 405 West Fifth Street, Suite 550 198 W. Lincoln Ave., 2nd Floor Santa Ana, CA 92701 Anaheim, CA 92805 Randy Gibeaut Community Housing Resources 1411 North Broadway Santa Ana, CA 92706 Bart G. Hess Affordable Home Owners Alliance 2 Park Plaza, Suite 100 Irvine, CA 92614-5904 Kelly Lupro OC Housing & Community Development 1.770 N. Broadway Santa Ana, CA 92706 Brenda Rodriguez Affordable Housing Clearninghouse 23861 El Toro Road, Suite 401 Lake Forest, CA 92630 Jim Palmer Orange County Rescue Mission I Hope Drive Tustin, CA 92782 Karen Roper OC Housing & Community Development 1770 N. Broadway Santa Ana, CA 92706 HOUSING ELEMENT JUNE 16, 2009 Captain Lee Lescano The Salvation Armv 10200 Pioneer Road Tustin, CA 92782 M, a Cynthia Campbell uman Options, Inc. (DOVE Housing) P.O. Box 9376 Newport Beach, CA 92658 Sheri Barrios Orange Coast Interfaith Shelter 1963 Wallace Avenue Costa Mesa, CA 92627 Cesar Covarrubias The Kennedy Commission 1,7701 Cowan Ave., Suite 200 Irvine, CA 92614 Lucy Dunn Orange County Business Council 2 Park Plaza, Suite 100 Irvine, CA 92614 CITY OF TUSTIN GENERAL PLAN Maya Dunne SHJHS Foundation & Community Outreach 500 S. Main St., Suite 1000 Orange, CA 92868 Margie Wakeham Families Forward 9261 Irvine Blvd. Irvine, CA 92618 Linda Tang Kennedy Commission 17701 Cowan Ave., Suite 200 Irvine, CA 92614 David Levy 14331 Browning #24 Tustin, CA 92780 Jacqui Kerze Regional Center of Orange County P.O. Box 22010 Santa Ana, CA 92702-2010 Scott Larson HomeAid Orange County 17744 Sky Park Circle, #170 Irvine, CA 92614 Joan B. Bargol Orange Coast Interfaith. Shelter 1963 Wallace Avenue Costa Mesa, CA 92627 Affirmed Housing Group 1,3520 Evening Creek Dr. North, #160 San Diego, CA 92128 John H. Cochrane, III be.group - Senior Living 516 Burchett Street Glendale, CA 91203 HOUSING ELEMENT JUNE 16, 2009 APPENDIX D REFERENCES CITY OF TUSTIN GENERAL PLAN Appendix to Housing Element mesa-, "M NIMBI HOUSING ELEMENT 101 SEE 11 '40 Appendix to Housing Element This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN Appendix to Housing Element REFERENCES - A. Documents I. 2000 Census Report. iJS. Department o6 Commerce, Bureau of the Census. 2. 2010 Census Report. U.S. Department of Commerce, Bureau of the Census. 3. 2007-20II American Community Survey. U.S. Department ofCommerce, Bureau of the Census. 4. Comprehensive Housing Affordability Strategy for Fiscal Years 20U7-2008to 2017-2018, David Paul Rosen & Associates (DRA). 5. Marine Corps Air Station Tustin Specific Plan/ Reuse Plan, Adopted February 2003, Amendments through June 2007 6. California State Department nf Finance, 203, E-5 Population and Housing RISE 7. Orange County Projections 20l0 Modified, Center for Demographic Research mt California State University, Fullerton. W. Orange County Ten - Year Plan tn End Homelessness, 2Ol2, County of KENN- Orange. 9. Southern California Association of Governments, Regional UoosingNeeds Assessment, 2012. 10. City ufTustin, Zoning Ordinance. ll. City oJ Tustin, General Plan, osamended through November 2012. 12. City n[ Tustin 201O-2Ul5 Consolidated Plan. lJ. City of Tustin Comprehensive Annual Financial Report For the Year Ended June 3O,2O1I. l4. City of Tustin Consolidated Annual Performance and Evaluation Report, September 26 2012. 15. Market Overview Report for City ofTustin, Realfacts. l6. Third Five-Year Implementation Plan for The Town Center and South Central Redevelopment Project Areas (FY 20O5-D6to2OU9-20I0),Tustin Community Redevelopment Agency, December 2004. CITY 0FTUSTlN HOUSING ELEMENT GENERALPLAN Appendix to Housing Element IT Final (EpJ£UD for the Disposal and Reuse ofMC&S-Tosdu (Program GIS'ElDfor &4CAS-Tosho), January l6,2OOl. 18. Response to Comments, Final Volume 2 and 3of Final Environmental Impact Statement/ Environmental Impact Report (EIS/EIR) for the Disposal and Reuse ofMCAS-Tnedn. 19. City Council Staff Reports for St. Anton and Irvine Company projects, November 6, 2012, 20. State of California, Department of Housing and Community Development, 31. Orange County Client Management lnfornzobnu System Year End Progress Report, Orange County Housing Partnership, December 2007 22. Orange County Department o[ Education, Division or School and Community Services, McKinney-Vento Homeless Education Assistance Act, 2O06-O7. 23, 2O13 State Income Limits, State Department of Housing and Community 24.Morsball& Swift 25. State of California Government Code Sections h558Uetseq. B. Persons and Organizations Elizabeth A. Binsack, Community Development Director Community Development Department, Tustin (714) 573-3031 2. Jerry Craig, Tustin Successor (714) 573-3121 S. Justina Willkom, Assistant Director - Planning Community Development Department, Tustin (714) 573-3115 4. Scott Reekstin, Principal Planner Community Development Department, Tustin (714) 573-3016 CITY 0F7D8?On HOUSING ELEMENT GENERALPLAN Appendix to Housing Element 5. Edmelynne Hutter, Associate Planner Community Development Department, Tustin (714)) 573-3174 6. Lieutenant Steve Lewis Tustin Police Department (714) 573--3271 I - 6. Ben Savill Community Housing Advisory Council Regional Center of Orange County 7. John Luker Orange County Rescue Mission Village of Hope (714) 247-4300 CITY OF TUSTIN HOUSING ELEMENT GENERAL PLAN TUSTIN ll�iL�i MEMORANDUM Adopted by Resolution N4 This page intentionally left blank. INNER BONN- Section Page INTRODUCTION ........................ 1 STATE LAW AND GENERAL PLAN GUIDELINES 1 SOURCES OF INFORMATION 5 SUMMARY OF HOUSING ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS........ 6 HOUSING NEEDS ASSESSMENT .. ....... .................. ........ ...... 8 POPULATION/ EMPLOYMENT TRENDS 8 HOUSEHOLD CHARACTERISTICS 13 HOUSING STOCK CHARACTERISTICS 27 ASSISTED HOUSING PRESERVATION ANALYSIS 35 CONSTRAINTS TO THE DEVELOPMENT, IMPROVEMENT AND MAINTENANCE OF HOUSING... ................. ...... --- ............ ......... ............ ...... ....... ... 45 GOVERNMENTAL CONSTRAINTS 45 MARKET CONSTRAINTS 63 ENERGYCONSERVATION ..................................... ........................................... ............... ..... 67 SUMMARY OF PREVIOUS HOUSING ELEMENT PROGRAMS ...... - ... .............. .............. ... 69 PROGRESS IN IMPLEMENTING THE 1989 GOALS AND OBJECTIVES 69 REVIEW OF PAST PERFORMANCE 70 APPENDICES: A. AFFORDABILITY GAP ANALYSIS B. REFERENCES C. MAJOR EMPLOYERS IN TUSTIN CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM Page TABLE HTM -1: Population Growth 2000 - 2012 City of Tustin, Nearby Jurisdictions and Orange County 9 TABLE HTM -1A: Population Projections 2015 - 2035 10 TABLE HTM- 2: Age Trends 1990, 2000, 2010 City of Tustin 10 TABLE HTM- 3: Race and Ethnicity: 1990, 2000, 2010 City of Tustin 11 TABLE HTM- 4: Employment by Occupation 2011 12 TABLE HTM- 5: Employment by Industry 2011 12 TABLE HTM- 6: Household Type.: 1990 - 2011 13 TABLE HTM- 7: Household Size 1990 Through 2011 14 TABLE HTM- 8: Households in Overcrowded Conditions 2011 15 TABLE HTM- 9: Median Household Income: Tustin and Surrounding Areas 2011 15 TABLE HTM -10: Household Income Distribution City of Tustin 2011 156 TABLE HTM -11: Household Income Distribution by Household Tenure 2011 17 TABLE HTM -12: Households Overpaying for Shelter 2011 City of Tustin 1s TABLE HTM -13: Household Size Distribution City of Tustin 21 TABLE HTM -14: Households with Five or More Persons 2011 22 TABLE HTM -15: Summary of Homeless Accomodation Zoning Regulations 25 TABLE HTM -16: Emergency Shelter/ Transitional Housing Facilities 2013 26 TABLE HTM -17: Housing Growth Trends 1990 - 2010 Tustin and Surrounding Areas 27 TABLE HTM -18: Tustin Residential Unit Mix 1990 - 2013 28 TABLE HTM -19: Vacancy Rates 2000 -2013 28 TABLE HTM- 20: Tenure 1990 and 2011 29 TABLE HTM- 21: Age of Housing Stock 30 TABLE HTM- 22: Resale Price of Homes and Condominiums Tustin and Neighboring Jurisdictions 2012 31 TABLE HTM- 23: Average Rental Rates, 2013 -1st Quarter 32 TABLE HTM- 24: Affordable Net Rents 2013 33 CITY OF T USTN HOUSING ELEMENT TECHNICAL MEMORANDUM ii 1 I 1 IN r TABLE HTM- 25: 2006 -2014 Housing; Needs 34 TABLE HTM- 26: At Risk For Conversion in 2006 - 2014 36 TABLE HTM- 27: Assisted Housing Inventory 37 TABLE HTM- 28: 2013 Fair Market Rents, Orange County 43 TABLE HTM- 29: Affordable Rents, City of Tustin 2013 43 TABLE HTM- 30: Cost of Providing Rental Subsidy for Very Low Income Households 44 TABLE HTM- 31: General Plan Residential Land Use Categories 46 TABLE HTM- 32: Summary of Residential Zoning Regulations 49 TABLE HTM- 33: Summary of Homeless Accomodation Zoning Regulation 56 TABLE HTM- 34: Summary Table Effectiveness of Housing Element Programs, 2006 -2014 9 TABLE HTM- 35: Effectiveness of Housing Element Programs 71 TABLE HTM- 36: Progress Towards Objectives 113 CITY OF TUSTIN TECHNICAL MEMORANDUM iii HOUSING ELEMENT tram This page intentionally left blank, 01-111-1 11. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM iv INTRODUCTION This memorandum isa reference document intended to provide background data that will serve as a partial basis for policies and programs in the Housing Element, In accordance with State |a*, a significant amount of data is required in this memorandum. Where possible, the data has been summarized in graphic form for easy reference. The reader is urged to use the table of contents at the front of this document aaa guide. Once the Housing Element has been completed, the Technical Memorandum will be incorporated therein. State law largely determines the content of this Technical Memorandum. Five aecbno: foDnvv the introduction. The Summary of Housing Issues, Conditions, Opportunities and Constraints provides muoverview of the key facing the City, which are addressed by the goals, policies and programs ' of the Housing Element. The Housing Needs Assessment section addresses housing needs. More specifically, it discusses how the population has g7nvvn and changed, how households are changing (i.e., size, composition), and bow the housing /ia changing. This section also analyzes the potential loss of assisted lower income housing bouoingunits io the City. The third section addresses governmental and constraints, such as market condition, and natura|environment, to housing development. The fourth section addresses energy conservation. E5na|ly, the fifth section summarizes the housing issues, opportunities, and constraints that have emerged through background research and public meetings and which must be addressed in the Housing Element. The State of California provides very specific requirements and guidelines for preparing Housing Elements. This section describes those requirements and explains the relationship between this element and the rest of the General F1en. The State ofCalifornia requires that each jurisdiction prepare and adopt Housing Element. The State Requirements for Housing Elements are far stricter and more detailed than for any other General Plan B|euzenL State Planning law requires local governments toreview their housing elements as frequently as appropriate and to revise the elements as appropriate, not less than every eight years. The fifth revision date for jurisdictions within the Southern California Association of Governments (SCAG) is October 15, 2013. The planning period for the Regional Housing Needs Assessment (RHN/\) as prepared LmS(,/\G, is from January l, 2014 to October 1, 2021, a seven and three CITY OFTQSTIN HOUSING ELEMENT /ELHNILALMEMO6A8D[IM J quarter year period. The implementation period covered b« this element i8October 20I8to October 202I. ism- Organization of the Housing Element Under the provisions of Section 6558 of the Government Code, the Housing Element shall generally consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement, and development of housing. The Housing Element shall identify adequate sites for housing, including rental housing, factory-built housing, and mobile homes, and shall make adequate provision for the existing and projected needs of all eoounodo segments of the community. More specifically, the }lousing Element must meet the requirements outlined below. A. An assessment of housing needs and an inventory of resources and constraints relevant to meeting these needs. The assessment and inventory shall include the • Analysis of population und employment trends and documentation of the locality's existing and projected housing needs for all income levels. These existing and projected needs shall include the locality's share nf the regional housing needs io accordance with Section 65584. • Analysis and documentation of household characteristics, including level of RONNIE payment compared to ability to pay, housing characteristics, including Overcrowding, and housing stock condition. • An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and ao analysis nfthe relationship of zoning and public facilities and services to these sites. • Identification ofa zone nz zones where emergency shelters are allowed asa permitted use • Analysis of potential and actual governmental constraints npno the maintenance, improvement, or development uf housing for all income levels, including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. • Analysis of potential and actual non-governmental constraints u}?uo the maintenance, improvement, development of housing for all income levels, including the availability of financing, the price of land, and the coat of construction. * Analysis of any special housing needs such as those n[ persons with disabilities (including dev l disabilities), the elderly, large families, CITY OF TQSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 2 farm workers, [aozUbea with female heads o{ households, and fan-lilies and persons tn need n{ emergency shelter, � Analysis of opportunities for energy conservation with respect to residential development. ~ Analysis of existing assisted housing developments that are - to change from low-income housing uses during the next lUyears. B. A statement of the community's goals, quantified objectives, and policies relative to the maintenance, e, pceeerv� on, improvement, and development of housing. D is recognized that the total housing needs identified pursuant to Section 6558(a) may exceed available resources and the community's ability to satisfy this need within the content of the general plan requirements. Under these circumstances, the quantified objectives need not beidentical to the identified existing housing needs, but should establish the znaxirnuo\ number of housing units that can be constructed, rehabilitated, and conserved over a five-year time frame. C. A program which sets forth u schedule of actions over the nl that at�o local government io or intends to undertake in order to implement the policies and achieve the goals and objectives of the housing element through the administration of land use development controls, provision of regulatory concessions and incentives ' and the utilization of appropriate federal and state financing and subsidy programs when available. In order to make adequate provision for the housing needs of all economic segments ofthe community, the program will incorporate the following: = Identify adequate sites which will he made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development ofavacietvof types of housing, factory-built housing, mobile homes, emergency -helters and transitional housing in order to meet the community's housing goals. • Assist in the development of adequate housing to meet the needs of extremely low, very low, low- and moderate-income households. • Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development ofhousing. • Conserve and improve the condition of the existing affordable housing stock. Promote housing for all persons regardless of race, religion, sex marital status ancestry, national origin, or color. The program obo|i 'include an identification of the agencies and officials responsible for the implementation of the CITY OFTQSTIN HOUSING ELEMENT various actions and the means by vvbiCh consistency will be achieved with other � plan elements �omh Ibe|oc�| shall znokea �ener� = �ouuuv/v�y �_'-'� �~,`^^.~^^^^ —_ diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program sboU describe this effort. |n addition, mn amendment to housing element law (Chapter l45l, Statutes ofl4A9) i�s�!h�sbnge�ne�s� include addi�onalo�d �dInog�ms� requires potential conversion ofall Federal, State and locally assisted housing developments that are eligible toconverttoroazkrtraJeosodnringtbenextten-yeaz period. Such units are considered to be "at risk,' of being lost as part of the affordable housing stock. Relationship to Other General Plan Flernentm The preparation nf the City's Housing Element must conform to Section 65580 of the California Government Code. The Legislature has established a policy that the availability of housing iu a suitable environment is of vital statewide importance, and m priority of the highest order. State policy requires local governments to address the housing needs of all wznonndc segments, while considering the economic, environmental and hsoo| factors and community goals set forth in the General Plan. OWNER VVbi|e a city must consider housing needs for all economic segments, it rnoal also maintain internal consistency among the various elements of the General Plan. Neither the Housing Element nor any other element may supersede any other required element of the Tustin General Plan. The Housing Element relates to other elements in variety of ways. The Land Use Element directly relates to the Housing Element hv designating areas of the City in which a variety of residential types and densities may exist. The Mousing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs, especially io the areas of the City with the highest density. The Circulation Element attempts to provide an efficient and circulation system. This system must be designed to accommodate allowed land uses, including residential uses, and the intensity of aUnvvoN8 uses must not exceed the ultimate capacity of the circulation system. The Safety relates to the Housing Element by designating areas that are deemed - unsafe for development, such asthe A)quiot-Pzim|o Zones and Dnndplains. Similar to the Safety Element, the Noise Element relates to the Housing Element by addressing beo|t) related issue area. Techniques for reducing noise often involve buffers between land uses to reduce noise. O �� HOUSING ELEMENT �YO��� TECHNICAL MEMORANDUM 4 rm PON The Growth Management Element overlaps the issues raised in the ` Housing Element its efforts to ensure that the - and implementation oftraf�ioproveoxntaand public facilities adequate to meet current projected needs of Orange County. SOURCES OF INFORMATION A variety of sources were used toprepare this Technical The most recent source of population and housing counts iothe State Department nfFinance (DOF) population and housing estimates for January 201. The population, household and employment statistics are taken from the 20I0 Census and the American Community Survey. Other estimates of population characteristics are provided by the Center for Demographic Research at California State University, . The 20I2 Southern California Association of Governments Rp*ioom| }Iooei Needs Assessment /B|�NL�\ provided information regarding � existing needs and projections regarding future housing needs. Data regarding housing costs have been obtained {roonlocal newspapers, local developers, anDnancim1 institutions. Other data sources are listed in the Reference section of this document, CITY 0FTQSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 5 SUMMARY OF HOUSING ISSUES NEEDS, OPPORTUNITIES, AND CONSTRAINTS The following issues needs, and constraints have been identified iu 0 Tenure. The City contains disproportionately large amounts ofmnld housing units when compared to nearby jurisdictions and the ° Historic Resources. Tustin features numerous historic homes that odd character and charm to the City but may be in need of ongoing maiotenanoo and rehabilitation. 0 Hone (7wnur:6fn Affordability Gun. Ownership housing costs are increasingly the reach ofthe City's lower- and moderate-income • �oxdidox.&�onvov«ner-and un�abn the CUvneed Housing rehabilitation, including minor and major nepa bs. Landlords and owners of these units may need financial assistance in order to make necessary repairs. • Units at Risk of Conversion to Market J0xtc. DY State law, the City must document and develop programs to address affordable housing units in the City that are at risk of converting to market rate housing between 2013-2021. For the 2014-2021 R]1N/\ planning period, the Regional Housing Needs Assessment indicates that there are 100 assisted units at risk of conversion to market rate housing. • Large Households. Large households comprised approximately 15.4 percent of all Tustin bnuepbo|ds (owner and renter) in 2011. Large families and households are a population of concern due to both the difficulty of finding adequately sized housing units and the biDb costs associated with these larger units. • (}norcrnxom8/g. According to the California Department of Finance, the average number of persons per household io the City was 3.O2io20l3. The American Community Survey 2007-2011 data indicates that a total nf2, 508, orIO%,o{ all households were suffering from overcrowding. • Rcnbz/ Aff`mdubi/itx Gap. Based upon areview of rental units, it is difficult to find apartments in the City with more than two bedrooms, and those that are available are beyond the price range of low-income households. Therefore, large {anl1iee with low incomes (less than S83,250 for a family of five) would have difficulty finding affordable housing inTustin. CITY OF TUSTIN HOUSING ELEMENT TEC}GNTCAQ. MEMORANDUM 6 ffil Housing Problems. 2011 5-year American Community Survey data estimates that there were 12,462 overpaying households, of which 36.8 percent had an annual household income of less than $35,000, which was about 48 percent of Tustin area median income. 0 Elderly. As the City's population ages, the number of elderly persons will increase. This underscores an increasing need to address the special housing needs of the elderly. Age of Housing Stock- Even though the City's housing stock is relatively young and in good condition, by year 2020, approximately 62 percent of the City's housing stock will be over 30 years old-the age at which housing typically begins to require major repairs, CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 7 am HOUSING NEEDS ASSESSMENT Since the 196Os the City's population has soared from about 21XX} persons bn77/983 in 2013. Thus, the vast majority of the City's housing stock has been constructed v/itbbz the last 5Oyears. Unlike most of Orange County, where about half of the housing stock consists of single detached homes, nearly two-thirds ofTuatin's housing stock is multi- family or single-family attached (i.e.,condominiums/ townhouses). Tustin also has a proportionately higher percentage of renters compared to Orange County as a whole. Over the last two decades, the City's population has been impacted b9nanyofthe same trends observed regionally: o substantial increase in minority populations, especially Latinos; an increase in the average size of households; and, a surge in housing costs. As the City continues to grow and change, its housing policies must be re-examined io light of these changes. This chapter examines the important demographic changes that have occurred in the City since 2000 that affect housing needs. The chapter includes 6nuz main sections: population/ employment trends, bouedzok| characteristics, housing characteristics, and assisted housing preservation. The Population/Employment I IN ][rends section analyzes bovv the population has grown and explores resident enzpinyooeot patterns. The Household Characteristics section looks at changes in household size and composition, examines income and overcrowding, and evaluates housing affordability and special housing needs groups. The Housing Stock Characteristics section examines changes in the housing stock, particularly the number of units, condition, and type. The fourth section concerning assisted housing preservation responds to State legislation that requires local jurisdictions to prepare an inventory and implement programs to promote the preservation mud/or replacement of government- assisted lmvver- iocormehmusiog. POPULATION/EMPLOYMENT TRENDS This section examines population growth, age characteristics, racial/ethnic composition, and employment characteristics of Tustin's population. Population Growth f\s shown io Table }{TM-1, between 200O and 2OlU the City's population grew from b7,50to75,540,an increase of approximately D.9percent. Between 2010 and 2012, population growth slowed significantly, loUiog4l.2peremtfrorntbeyeadymveraAe of 1.2 percent between 20O0 and 20IOto.7 percent over the past 2 years. The City uf Tuobo/s growth rate between 20lO and 2UI2was slightly slower than the County CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 8 growth rate but faster than the nearby cities of Garden Grove, and Santa — A�. Recent projections released by the Center for Demographic - arch C5UF (Orange County Projections 2OI0 Modified, [January 2b,20l2)� indicate that | tbn's population will increase by an amnoo| rate of approximately 0.7 percent during this implementation period, bringing the total population to 89,534 b� the year 2025. Table |lTK1-% compares the City's growth rate between 2000 and 2012 with other Orange County cities and the County amawhole, Alarge percentage ofDustin/spopulation growth can beattributed to annexations that have occurred since Ig8O. The remainder can be attributed hnavadetvofother factors, including shifts in family structures from, smaller to larger families, bsodlies, redevelopment of existing developed areas, irfill development, and residential construction in East Tustin. Substantial population and housing growth will continue during this planning period with the continued development at Tustin Legacy (former Marine Corps Air Station |K4(-AS7Tostio). TABLEHTM-1 Population Growth 2000-282 Jurisdiction 2000 2010 2012 Percent Growth 2000-2010 2010-2012 Tustin 11.9% 1.4% 67,504 75,540 76,567 Anaheim 2.5% 2.2% 328,014 336,265 343,793 Grove 165,196 170,883 172,648 143,072 212,375 223,729 Orange 128,821 136,416 138,010 5.9% 1.2% Ana 337,977 324,528 327,731 County 2,846,289 3,010,232 3,055,792 2 2010 U.S. Census 3 Department of Finance estimates 2012 Population projections are shown bn Table H[[K4-la. According to Orange County Projections (OCP) 2012 data, the population in the City of Tustin is expected to CITY OFIUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 9 t 4 increase by approximately 6.3 percent from 77,965 persons in 2015 to 82,878 persons by the year 2035, after a peak population of 83,944 in 2030. The decrease in the last five years of the projections is attributed to general countywide demographic characteristics, such as the age structure of the population, declining fertility rates, low housing growth, and declining immigration. TABLE HTM -1A Population Projections 2015 -2035 Source: OCP 2010 Modified, January 26, 2012 Age Characteristics Table HTM -2 shows the proportions of the City's population represented by age groups in 2000 and 2011. The table shows that the proportions of the population in each age group have begun to transition over time. Like the rest of Orange County, Tustin has begun to experience an aging of the population. The 25 -34 age group has fallen almost 5 percentage points, while the 55+ age group have increased by a total of 3.8 p g p significant ercenta points. With the si nificant loss of residents in the 25 -34 age group 1 Tustin has seen a 1.4 percentage point fall in the 0 -4 age group. 01 TABLE HTM- 2 AGE TRENDS 2000 - 2011 CITY OF TUSTIN 2015 2020 2025 2030 2035 Percent Change (2015 -2035) Tustin 77,965 81,31.0 83,534 83,944 82,878 6.30% Source: OCP 2010 Modified, January 26, 2012 Age Characteristics Table HTM -2 shows the proportions of the City's population represented by age groups in 2000 and 2011. The table shows that the proportions of the population in each age group have begun to transition over time. Like the rest of Orange County, Tustin has begun to experience an aging of the population. The 25 -34 age group has fallen almost 5 percentage points, while the 55+ age group have increased by a total of 3.8 p g p significant ercenta points. With the si nificant loss of residents in the 25 -34 age group 1 Tustin has seen a 1.4 percentage point fall in the 0 -4 age group. 01 TABLE HTM- 2 AGE TRENDS 2000 - 2011 CITY OF TUSTIN Age Group 2000 % Total 2011 % Total 0 -4 5,815 8.6% 5,401 7.2% 5 -14 9,916 147% 10,940 14.6% 15 -24 8,685 12.8% 10,792 14.4% 25 -34 13,798 20.4% 1.1,785 15.8% 35 -54 19,710 29.2% 22,343 29.9% 55 -64 4,776 7.1% 6,873 9.3% 65 -74 2,745 4.1% 3,806 5.1% 75+ 2,059 3.1% 2,715 3.7% Total 67,504 100.0% 74,625 100.0% Sources: U.S Bureau of Census, 2000,2007-2011 American Community Survey. Race and Ethnicity The City's racial and ethnic composition has changed significantly since 1980. The trends experienced in the 1990's have continued through the early 2000's, though at a less rapid rate. As shown in Table HTM -3, minority populations in the City have CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 10 i grown significantly. The Hispanic population increased about 30 percent between 2000 and 2010, becoming the dominant population in the City accounting for almost 40 percent of the total population. Asian /Pacific Islanders and Blacks comprised about 20.4 percent and 2.0 percent of the population in 2010, respectively. These shifts in racial and ethnic composition may have important implications in terms of household characteristics and income. For example, Hispanic households are typically larger than other households; therefore, an increase in the number of Hispanic households may indicate a need for larger housing units. Also, to the extent that minority populations tend to have lower incomes than their Caucasian counterparts, there may be a greater need for affordable housing for these groups. TABLE HTM- 3 RACE AND ETHNICITY: 1990, 2000, 2010 CITY OF TUSTIN Race and Ethnicity 1990 2000 2010 Population % Total Population I -f0 I Total Population % Total White, 37,127 73.2% 30,264 44.8% 26,317 34.8% Black 2,895 5.7% 1,785 2.6% 1,535 2% American Indian and Alaska Native 274 0.5% 199 3% 142 2% Asian/Pacific Islander 5,260 10.4 °% 10,194 15.1% 15,391 20.4% Other 5,133 10.1% 1,952 2.9% 2,131 2.8% His -)ante (10,508) (20.7 %) 23,110 34.2% 30,024 397° Total 50,689 100% 67,504 100% 75,540 100% 1970 Census 2000 Census 2010 . Census 4 The Census contains a separate question related to whether the householder was of Spanish/ Hispanic "origin ". Origin is defined as the ancestry, nationality group, lineage, or country in which the person's ancestors were born prior to their arrival to the United States. Persons of Spanish origin could be of any of the five racial categories. Employment According to 2007 -2011 American Community Survey data, the City of Tustin had 41,761 residents in the labor force, of which 38,308 (91.7 percent) were in the labor market. Of these, 83.7 percent were private wages and salary workers. Table HTM -4 shows the number of employees by occupation. In 2011, the largest occupational category was management, business, science and arts occupations, in which a total of 15,698 were employed. The second largest category was the sales and office occupations, employing 10,214. CITY OF TUSTIN MOUSING ELEMENT TECHNICAL MEMORANDUM I 1 t TABLE HTM- 4 wr EMPLOYMENT BY OCCUPATION 2011 n` CITY C1F TT NTIN Occupational Category Number % Management, business, science, and arts occupations 15,698 41.0 % Service occupations 6,429 16.8% Sales and office occupations 10,214 26.7% Natural resources, construction, and maintenance occupations 2,189 57% Production, transportation, and material moving occu ations 3,778 9.9% Total 34,906 100.0% Source: U.S. Census: 2007 -2011 American Community Survey In terms of industry, the Educational services, and health care and social assistance, and Professional, scientific, and management, and administrative and waste management services sectors employed the largest number of persons with 6,947 (18.1 percent) and 5,606 (14.6 percent) employees, respectively. Table HTM -5 is a summary of the number of employees by industry. Due to its favorable location, demographics, and business environment, Tustin is home to several large employers. Appendix C lists major employers in the City of Tustin. The City's top ten employers include: Young's Market Co. LLC, Tustin Unified School District, Lamppost Pizza Corp., Ricoh Electronics Inc., Toshiba America Medical Systems, Rockwell Collins Inc., Costco, Cherokee International Inc., City of Tustin, and Raj Manufacturing Inc. FEW TABLE HTM- 5 EMPLOYMENT BY INDUSTRY 2011 C TTY C)F TI IsTTN Industri Number % Agriculture, forestry, fishing and huntin , and mining 224 0.60% Construction 1,999 5.20% Manufacturing 4,907 12.80% Wholesale trade 1,116 2.90 °l0 Retail trade 4,842 12.60`to Transportation and warehousing, and utilities 1,174 3.10 %Q Information 777 2.00% Finance and insurance, and real estate and rental and leasin 3,985 10.40% Professional, scientific, and management, and administrative and waste management services 5,606 14.60% Educational services, and health care and social assistance 6,947 18.10% Arts, entertainment, and recreation, and accommodation and food services 3,842 10.00% Other services, except public administration 1,777 4.60% Public administration 1,112 2.9% TOTAL 38,308 100.0% Source: U.S. Census: 2007 -2011 American Community Survey CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 12 This section addresses household composition, size, overcrowding, income, affordability, and special needs groups. Definitions The Census Bureau uses several terms with respect to housing which are important to understand. A housing unit is defined as a house, apartment, mobile home or trailer, group of rooms, or single room occupied or intended for occupancy as separate living quarters. A household is an occupied housing unit. Households are further broken down into family households and non- family households. A family household is a household shared by two or more persons related by birth, marriage or adoption. A non-family household is one consisting of a single individual or unrelated persons living together. Household Composition According to the U.S. Census, the City of Tustin contained 25,203 households in 2010. From 2000 to 2011, census data shows that the number of households increased by 2,114, representing an increase of approximately 8.8'/a. TABLE HTM- 6 HOUSEHOLD TYPE: 1990 - 2011 CITY OF TT NTINJ Household Type 1990 1 1 2000 Z 2011 3 of Households % of Total No. of Households % of Total No. of Households % of Total Facuily 12,317 67.2% 16,055 67.4% 17,529 67.6% Non - Family 6,015 318% 7,776 32.6% 8,416 32.4% Total 18,332 100% 23,831 100% 25,945 100% U.-,. Uept. of (- ornmerce, Bureau of the Census, 1990 Census, 2 3 U,S. Dept. of Commerce, Bureau of the Census, 2000 Census U.S. Census, 2007-2011 American Community Survey Table HTM-6 shows that 12,317, or about 67%, of the City's households were classified as family households in 1990. The percentage of fan-lily households remained relatively the same in 2000 and 2011.. Moreover, as shown in Table HTM-7, the average household size in Tustin has increased from 2.66 persons per household in 1990 to an estimated 2.82 persons per household in 2000 and 2.97 persons per household in 2011. This increase may be attributed CITY OF TUSTIN HOUSING ELEMENT TECHAWAL MEMORANDUM 13 b}a variety 0f more Or sharing, Cf units bl order to defray increased hu8in0Bs; ad n nea8e n he 0( � larger units, especially new units in East Tustin and Tustin Legacy. HOUSEHOLD SIZE I99U THROUGH 2011 CITY OF TIJI;TTN jurisdiction 1990 20004 2011 Orange County 2.87 3.00 2.99 ,usDept. of Commerce, Bureau of the Census, 19m Census Report. z us.n^ L of Commerce, Bureau vf the Census, 20o Census Report. u U.S. Census, 2007-2011 Americari Community Survey Overcrowding HUD defines overcrowding as more than one person per room, bathrooms and kitchens. For example, a one-bedroom apartment with living room, kitchen, and bathroom would be considered overcrowded if more than two persons occupied it. The 2007-2011 American Community Survey data showed 2,508 O0 MEMO INS households living in overcrowded conditions. Of the households living iosuch conditions, 78 percent were renters. Overall renter households had asignificantly 0� higher incidence of overcrowding than owner households: 16.5 percent of renter and 4.2 percent o{ owner households were overcrowded. 7`aWe8TM'8 illustrates the numbers of all Tustin households living io overcrowded conditions. D should benoted that there are no federal m California State legal standards for overcrowding. Ino reasonable effort to allocate scarce financial resources for affordable housing, housing programs typically use occupancy standards, which allow for up to "two persons per bedroom plus one" (e.g., five persons ina two- bedroom uoiA. The California Health and Safety Code standard isone person per bedroom plus one /e.g, three persons ina two-bedroom oniH. Overcrowding is often reflective of one of three conditions: I\ either a family or household is living in a dwelling that is too small; Z\ a family chooses to house extended family members (i.e, grandparents oz grown children and their families living with parents, termed doubling); or 3) a family is renting living space tn non- family members. TABLE BTM-0 HOUSEHOLDS IN OVERCROWDED CONDITIONS Z01l CITY OFIUSTI24 CITY OF TQSIIN HOUSING ELEMENT TECHNICAL MEMORANDUM 14 OWNS Tenure Total Overcrowded Total All Households Owner 553 13,112 Renter 1,955 11,833 Total 2,508 24,945 Source: U.S. Census: 2007 -2011 American Community Survey Income Household income is an important determinant of housing affordability. While upper income households have more discretionary income to spend on housing, low and moderate income households are more limited in the range of housing they can afford. The presence of a large number of low and moderate income households in a region where housing costs are high is likely to result in many households paying more than they can afford for housing. According to 2011 American Community Survey data, the median household income for the City of Tustin was $73,231. Table HTM -9 compares median household and family incomes between the City of Tustin and nearby jurisdictions, counties, and the State of California. In 2011, the City's median household income was about 3% lower than the median household income for the County as a whole rg ($75,762). Table HTM -9 demonstrates that at $80,963, Tustin's 2011 median family income was also below the Grange County median ($85,009). This trend was consistent as well for median family income in the above - mentioned jurisdictions. TABLE HTM- 9 MEDIAN HOUSEHOLD INCOME: TUSTIN AND SIIRRCITTNT)IVC- ATZFAC until Jurisdiction Median Household Income Percent Above/Below CountV Median Median Family Income Percent Above/Below County Median Tustin $73,231 -3.3% $80,963 4.8% Anaheim $59,330 - 21.71a $63,180 - 25.71a Garden Grove $60,036 - 20.8% $62,820 - 26.1% Irvine $92,599 22.2% $109,762 29.1% Santa Ana $54,399 - 28.2% $53,111 - 37.5% Oran e County $75,762 - $85,009 _ State of California $61,632 - 18.7Ia $70,231 -17.4% 11 11. u cau « Luus -curl rrmencan l ommumty 5urvev As shown in Table HTM 10, an estimated 6.8 percent of Tustin's households had incomes of less than $15,000 in the year 2011. Another 7.2 percent had incomes of between $1.5,000 and $34,999. In addition, 29.6 percent had incomes between $35,000 and $74,999, and 48.9 percent had incomes of $75,000 or more. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 15 i Derived by applying the percentage of households by income level from 51901 to total number of households shown as 24,945. Due to rounding in census data percentages, the total of percent households equals 100.2 percent. SOURCE: U.S. Census: 2007 -2011 American Community Survey 1 f Owner households had higher incomes than did renter households in 2011, as shown in HTM -11. Approximately 31.4 percent of the renter households earned less than $35,000 annually, compared to only 12.9 percent of owner households. Furthermore, 48.6 percent of renters earned less than $50,000 in 2011, compared to only 20.7 percent of owners. While a higher proportion of renter households (19.4 percent) than owner households (15.4 percent) earned between $50,000 and $74,999, only 32 percent of renter households had incomes of more than $75,000 annually, compared to 64.0 percent of owner households. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 16 TABLE HTM -10 HOUSEHOLD INCOME DISTRIBUTION CITY OF TUSTIN 2011 Income Range # Households' % Households2 % Cumulative Less than $14,999 1,696 6.8% 6.8% $15,000 to $24,999 1,796 7.2% 1.44.0% 525,000 to $34,999 1,921 7.7% 21.7% $35,000 to $49,999 3,068 12.3% 34.0% $50,000 to $74,999 4,315 17.3% 513% $75,000 to $99,999 3,617 14.5% 78.7°0 More than $100,000 8,581 34.4 % 100.2% TOTAL 24,945 100.0% Median Household Income, $73,231 City of Tustin Median Household Income, $75,762 Oranee County i Derived by applying the percentage of households by income level from 51901 to total number of households shown as 24,945. Due to rounding in census data percentages, the total of percent households equals 100.2 percent. SOURCE: U.S. Census: 2007 -2011 American Community Survey 1 f Owner households had higher incomes than did renter households in 2011, as shown in HTM -11. Approximately 31.4 percent of the renter households earned less than $35,000 annually, compared to only 12.9 percent of owner households. Furthermore, 48.6 percent of renters earned less than $50,000 in 2011, compared to only 20.7 percent of owners. While a higher proportion of renter households (19.4 percent) than owner households (15.4 percent) earned between $50,000 and $74,999, only 32 percent of renter households had incomes of more than $75,000 annually, compared to 64.0 percent of owner households. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 16 Mme° TABLE HTM- 11 CITY OF TUSTIN 1 Tenure/Income Range Number' Percent Cumulative % RENTER HOUSEHOLDS 326 2.5% 15% Less Than $10,000 651 5.5% 5.5% $10,000 to $19,999 1,027 8.7% 0 14.20,10 $20,000 to $34,999 2,036 17.2"10 31.40oJ $35,000 to $49,999 2,040 17.2% 48.60% $50,000 to $74,999 2,294 19.4% 68.00°1 $75,000 to $99,999 1,554 13.1% 81.10 0/0 $100,000 or More 2,234 18.9% 100.0% Total Renters 11,833 100.00/0 OWNER HOUSEHOLDS Less Than $10,000 326 2.5% 15% $10,000 to $19,999 485 3.7% 6.20% $20,000 to $34,999 876 6.7% 12.90% $35,000 to $49,999 1,017 7.8% 20.70 °l0 $50,000 to $74,999 2,017 15.4% 36.10 ° /0 $75,000 to $99,999 2,059 15.7% 51.80% $100,000 to $149,999 2,554 195% 71.30% $150,000 or More 3,778 28.8% 100.0% Total Owners 13,112 100.00/0 1 Derived by applying the percentage of household tenure by household income from to 2031 ACS 5 year file B25118 total number of renter households shown as 11,883 and owner households as 13,112. Sources: U.S. Census: 2007 -2011 American Community Survey Housing Affordability The U. S. Department of Housing and Urban Development (HUD) defines the threshold of overpayment for housing as 30% or more of household income. That is, when households pay more than 30% of their income for housing, they have insufficient remaining funds for other necessities such as food, clothing, utilities and health care. HUD recognizes, however, that upper income households are generally CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 17 capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups'. Table HTM -12 reflects 2011 5 -year American Community Survey data, which estimates that there were 12,462 overpaying households, of which 36.8 percent had an annual household income of less than $35,000, about 48 percent of Tustin area median income. While these extremely low income households are currently housed, they are in a precarious position, particularly those overpaying for housing in light of the current housing market, and could face the threat of homelessness. Table HTM -12 also distinguishes between owner and renter households overpaying for housing. This distinction is important because while homeowners may over- extend themselves financially to afford the option of home purchase, the owner maintains the option to sell at market rate; on the other hand, renters are limited to the rental market and are generally required to pay the rent established in that market. The table shows that among households making less than $50,000, or 68.3 percent of median household income in the City overpaying for housing, 5,170 or 73.4 percent were renters. TABLE HTM -12 HOUSEHOLDS OVERPAYING FOR SHELTER 2011 CITY OF TUSTIN Source: U.S. Census: 2007 -2011 American Community Survey. Special Needs State Housing Law requires that the special needs of certain disadvantaged groups be addressed. The needs of the elderly, persons with disabilities (including developmental disabilities), large families, female heads of household with children, 1 Some agencies and organizations consider Moderate Income households to be overpaying when housing costs exceed 35 percent of gross income, with the maximum income representing 110% of the median county income. Under these assumptions, overpayment occurs in fewer households in the City of Tustin when compared to figures presented in this document that are based upon State and Federal standards. Source: Strategies for Planning and Developinent: California Affordable Housing Handbook, California Redevelopment Association, 2000. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 18 Less than $35,00 to $50,000 to $35,000 $49,999 $74,999 $75,000 or more Total Total All Overp Househol Overpa Tot Overp Tot Overp Tot Tenure y al ay al ay al Over pal Total ay ds Owner 1,217 1,61 648 1,01 1,230 2,01 2,750 8,391 5,845 13,112 2 7 7 Renter 3,368 3,44 1,802 2,02 986 2,27 461 3,743 6,617 11,833 5 8 2 Total 4,585 5,05 2,450 3,04 2,216 4,28 3,211 12,13 12,462 24,945 7 5 9 4 Source: U.S. Census: 2007 -2011 American Community Survey. Special Needs State Housing Law requires that the special needs of certain disadvantaged groups be addressed. The needs of the elderly, persons with disabilities (including developmental disabilities), large families, female heads of household with children, 1 Some agencies and organizations consider Moderate Income households to be overpaying when housing costs exceed 35 percent of gross income, with the maximum income representing 110% of the median county income. Under these assumptions, overpayment occurs in fewer households in the City of Tustin when compared to figures presented in this document that are based upon State and Federal standards. Source: Strategies for Planning and Developinent: California Affordable Housing Handbook, California Redevelopment Association, 2000. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 18 homeless persons, and farm workers are important in relation to overall C0rno}uoitv health. These groups may maintain special needs related to housing cnno�uc� ' and location, The As noted previously (Table in 2011, 6,521 persons oc8.80/10of the total population in Tustin were 65 years of age or older, In addition, senior households represented 15.7percent (3,910) of total households in Tustin, . According to the American Community Survey, approximately 14 percent ofelderly households in Tustin earned less than $25,000 annually or about 37 percent of/\M1 for m household of two persons in2011. Although the senior population may often be living in a single-family home too large for their needs, with little or no mortgage payment, selling the home and buying smaller unit may be too expensive. Thus, this population needs housing that is both affordable and located iu close prnxiodtv to public services and transportation. - The Disabled: Physical and developmental disabilities can hinder access to housing units of traditional design es well ms limit on individual's ability to earn ana8euoate income. /\ccozdingto the 2009-20ll/�[S.a total of2,192 persons ioIuebnbe 'een 18 and 65 years of age reported e disability. In addition, 1,745 persons over age 65 reported a disability io2OI1. Disabled persons often require ioUy designed dwelling units to permit access not only wbbo the dwelling unit, but also to and from the . unit. Special WE modifications to permit free access are very important in - independence 101 and dignity. California Administrative d e Title 24 Requirements set forth access and adaptability requirements for the physically disabled. These regulations apply to public buildings such as motels, and require that ramp ways, door widths', restroom modifications, etc., be designed to enable free access to the handicapped. While such standards do not apply to new single-family residential construction, they do apply io new multi-family residential construction. Most existing housing units bn Tustin have not been designed with consideration for these requirements ofadaptability and access. The majority of housing units are either single-family or two-story apartments with no elevator occeny. The adaptability of units to meet the needs o[ disabled persons remains acba|lenge for Tustin and other communities. However, as additional housing units are provided in the Tustin Legacy area, accessibility isconsidered as part ofaprc4ect's design as required by law. Additionally, as units in multiple-family area' are rehabilitated, units may heretrofitted to accommodate the handicapped, New construction may offer some relief because the mandatory requirements are evenly applied to all projects. The use of mixed development v and hiohez density limits atIoabn Legacy area vvUlfurther require development nfeveu ` more handicapped-accessible units. CITY OF7DSIIN HOUSING ELEMENT TECHNICAL MEMORANDUM 19 Persons With Developmental Disabilities: As defined by federal law, "developmental disability" means severe, chronic disability of an individual thot w bs attributable tonmental or physical impairment nz combination ofmental and physical impairments; * is manifested before the individual attains age 22; w |s likely tocontinue * Results bnsubstantial functional limitations bz three m more ofthe following areas of major life activity: a) self-care; b) receptive and expressive language; h learning; cU mobility; e) self-direction; f) capacity for independent living; org)economic � Reflects the individual's need for a combination and sequence of interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. The U.S. Census Bureau does not record developmental disabilities. According to the U.5. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as develo |)ndisabedisI.5 NUNN percent. Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require 0 g7ool` living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person's living situation as a child hoan appropriate level of independence aoanadult. The State Department of Developmental Services (DDS) currently provides community-based services to approximately 243'OOO persons with developmental disabilities and their families through a statewide system nf21 regional centers, four developmental centers, and two community-based facilities. The Regional Center of Orange County /RCOC> is one of 21 regional centers in California that provides point ofentry to services for people with developmental disabilities. TbeKC0(_ is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. Any resident of Orange County who has adevelopmental disability that originated before age 18 is eligible for services. Services are offered to people with CITY OF TDSTIV BDLS0G ELEMENT TECHNICAL MEMORANDUM 20 developmental disabilities based on Individual Program Plans and may include: Adult day programs; advocacy; assessment/ consultation; behavior management programs; diagnosis and evaluation; independent living services; infant development programs; information and referrals; mobility training; prenatal diagnosis; residential care; respite care; physical and occupational therapy; transportation; consumer, family vendor training; and vocational training. RCOC also coordinates the state - mandated Early Start program, which provides services for children under age three who have or are at substantial risk of having a developmental disability. According to the RCOC February 2010 Facts and Statistics data, the RCOC currently serves approximately 16,728 individuals. Large Families: Under Census Bureau guidelines, a family household containing five or more persons is considered a large family. Large family households generally require larger dwelling units with more bedrooms to meet their housing needs. But family households with five or more persons often face limitations in being below national poverty levels, and often experience difficulty securing adequate housing suitable for their expanded needs. Thus, large families typically suffer disproportionately from both overcrowding and inability to pay. Moreover, because multifamily rental units are typically smaller than single - family units, larger families who are also renters face more difficulties in securing housing large enough to accommodate all members of the household. Table HTM -13 is a summary of Tustin's household size. The 2011 data shows 15.414 of Tustin households had five or more persons residing in a unit. TABLE HTM -13 HOUSEHOLD SIZE DISTRIBUTION CITY OF TUSTIN 2011 Household Size Number of Households % of Total Households 1 Person 5,792 23.2% 2 Persons 6,787 27.2% 3 Persons 4,461 17.9.. °.0 4 Persons 4,053 1.6.2% 5 Persons 2,019 8.1% 6 Persons 1,128 4.5% 7 or more Persons 705 2.8% Total Households 24,945 1MO% source: u."% Census bureau, ZUU7 -Arl l ACS. Table HTM -14 shows the number of households with five or more persons in Tustin according to the 2007 -2011 ACS. There were 1,835 owner households with five or more persons, representing 14 percent of all owner households. Tustin also had 2,017 renter households with five or more persons, representing 17 percent of all CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 21 ROME, renter households. Overall, large households comprised approximately 15.4 111, 1— percent of all Tustin households in 2011. 111 1 TABLE HTM- 14 Households with Five or More Persons City of Tustin 2011 Number of % of Total Renter or Owner Households Households Owners 1,835 14'. of Owner Households Renters 2,017 17% of Renter Households Total Households 3,852 15.4% of Total Households Source: U.S. Census Bureau, 2007-2011 ACS. The primary need of large families is to provide enough rooms for each member of the family to avoid overcrowding. According to the American Community Survey, in 2011, 21% of the City's housing units contained four or more bedrooms. Of owner-occupied housing units, 37% contained four or more bedrooms. Renter- ME occupied units accounted for 8% of units with four or more bedrooms. Taking into account that much of Tustin's housing stock consists of apartments, and that the majority of Tustin's large families are renters, this there is a need for more spacious apartment units to accommodate such families. Female-Headed Parent Households: Single-parent farrdlies tend to have low incomes, limiting their ability to find affordable housing. These families also have a large need for affordable child care. For these households, ideal housing is severely restricted. Due to financial constraints, the family is often not able to find housing that is close to needed services, schools, and public transportation. As of the 2010 U.S. Census there were 2,120 female-headed households with children under 18 living at home. These households represented 20.5 percent of all families with children under 18 in Tustin in 2010. The Homeless: Measuring the extent of the homeless population specifically in Tustin remains a challenge for community leaders. To complicate the challenge of meeting homeless persons' needs, the issue of homelessness is considered regional in nature. Nomadic tendencies of homeless persons make it difficult to assess the population accurately on a citywide basis; therefore, homelessness should be addressed on a countywide basis, in conjunction with cities and local non-profit organizations. 90" BE 101 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 22 The Orange County Housing and Community Services Department (HCS)defines homelessness as not having a permanent address, sleeping in places not meant for habitation, not having ample food and medical attention or o place to change clothes or bathe. Per this definition, f{CS 2011 (){, Homeless Census & Survey estimates there are nearly 18,325 homeless iu the County onanannual basis. The County's homeless population is comprised of about 75 percent individuals and 25 percent families', including ooestimated 2,932 homeless children. For those 18,325 homeless, there are only about 3,357 available beds, including I,156 emergency shelter beds and 2,20I beds in transitional housing facilities, according to the Orange County Ten-Year Plan to End Homelessness 20I2. The homeless population is comprised of subgroups, which include: l. The economic homeless who lack financial resources to pay rent; 2. The situational homeless who have suffered economic or personal bmuo\a and find themselves iu personal disorganization; and, 3. The chronic homeless who are unable to care for themselves due to chronic illness, disability or debilitating substance abuse. The City u[Toatin's 2010-2015 Consolidated Plan state/ that, according to police reports and windshield surveys performed within the City of Tustin, most homeless persons migrate through Tustin to other parts of the (-000tv rather than stay for PRIOR extended periods of time within the City. The City's Police Department estimates that there are 10-12 homeless persons residing in the City at any given time. /\itb000b there are no established areas where unsheltered homeless persons congregate in the City, there are several homeless services facilities in the City. The Village of Hope was completed on five acres at the Tustin Legacy site. The Village of Hope provides housing for o total ofl92 homeless men, women and children. It includes dorm rooms, o child development center, playground, parent education center, vocational training classrooms, health care facility, donation warehouse, and support o8joes. There also is a cafeteria with arzoutdoor dining area, and vegetable gardens. There are numerous factors that contribute to homelessness io Tustin and Orange County. The known causes o[ homelessness include unemployment, limited skills, and a breakdown io the family asa social and economic unit. Additionally, cutbacks in social service programs and the de-institutionalization of the mentally ill during the 198Os have contributed to the homeless population. Anew trend, however, is emerging as a significant contributing element to homelessness: m fast-growing lack of affordable housing, which could exacerbate any of the above conditions, but may increasingly become a standalone cause ofhomelessness. One of the shelters in Tustin, the 45'bedSheepfold shelter provides shelter, food, clothing, job training, and job-referral services pdzoad|y to battered women and CITY OF TUSTIN HOUSING ELEMENT lEC/f80CALMEM(lRA/VlJ[IM 23 r children. Guests are admitted on a first -come, first- served basis. Usually all beds are fully occupied. The shelter services a large area including many portions of Orange, Riverside, and San Bernardino Counties. Within the City of Tustin, there are a variety of Non- Profit Organizations (NPOs) that provide direct housing and related services to homeless persons. These include Village of Hope, an emergency/ transitional home, Sheepfold, a feeding program affiliated with the United Way; Families Forward, a homeless provider; Olive Crest, transitional homes and services for abused and neglected children, a and Laurel House, an emergency shelter and transitional housing provider for homeless youth in the City. A significant portion of the MCAS- Tustin is located within the City. The MCAS Tustin facility was identified by the U.S. Department of Defense for closure in July 1999. In accordance with the Base Closure Redevelopment and Homeless Assistance Act of 1994 (Redevelopment Act), the City of Tustin was formally recognized as the Local Redevelopment Authority (LRA) for the MCAS Tustin. The Redevelopment Act provides a process that aims to balance the needs of the homeless with other development interests in the communities directly affected by closure of the installation. The Act requires the LRA to prepare a reuse plan and Homeless Assistance Plan (HAP), which is submitted to the federal Department of Housing and Urban Development (HUD). HUD reviews and determines whether the documents balance the needs of the homeless in communities in the vicinity of the installation with the need for economic development. A Homeless Assistance Plan has been established for MCAS, Tustin that is consistent with the continuum of care model embodied in the Consolidated Plans for the Cities of Tustin and neighboring Irvine. The fundamental components of the continuum of care system implemented with the MCAS, Tustin Reuse Plan: • Provide emergency shelter beds and intake assessment • Offer transitional housing and services • Provide opportunities for permanent affordable housing by the private sector. In Tustin Legacy, four homeless service providers including the Salvation Army, Orange Coast Interfaith Shelter, Families Forward, and Human Options currently are operating 48 family units. The Orange County Rescue Mission operates a 192 - unit transitional/ emergency shelter (Village of Hope) and the Orange County Social Services Agency operates a 90 bed - facility for abused and neglected children and their families. Numerous other agencies provide shelter and other services to the homeless in the nearby cities of Santa Ana, Irvine, and Orange. �wtiM 'rr CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 24 Table HTM -15 provides a summary of zoning regulations pertaining to emergency shelters, transitional, and supportive housing, which are designated as permitted uses within the City of Tustin. TABLE HTM -15 SUMMARY OF HOMELESS ACCOMMODATION ZONING REGULATIONS Housing Type Permitted] g YP Conditionally Permitted Zoning Transitional Home Permitted Planning Area 3 of WAS Tustin Specific Plan Emergency Shelters Planning Area 3 of WAS g Y Permitted Tustin Specific Plan Supportive housing Permitted Planning Areas 1 and 3 of MCAS Tustin Specific Plan Community Care Facility for six (6) or fewer Permitted All residentially zoned properties Family care home, foster home, or group All residentially zoned home for six (6) or fewer' Permitted properties I Includes congregate care facility, single room occupancy hotel, and children's intermediate care shelter F Source: City of Tustin, MCAS Tustin Specific Plan RISENM CITY OF T USTN HOUSING ELEMENT TECHNICAL MEMORANDUM 25 rn Table HTMA 6 is a fist of organizations in Tustin that provide homeless services. R TABLE HTM -16 EMERGENCY SHELTER/TRANSITIONAL HOUSING FACILITIES 2013 CITY OF TUSTIN Facility Services Provided Provides shelter, food, clothing, job training, and job - referral services to Sheepfold women with children. Temporary housing for teenagers in crisis. The facility also provides Laurel House food, informal counseling, and access to medical care and clothin -,. St. Cecilia's Distributes food supply to needy populations. Operates emergency food program where a person can receive food Red Hill Lutheran supply. Collects food supplies and distributes the food to various organizations Tustin Presbyterian involved in providing homeless services. Aldersgate Refers interested persons to Ecumenical Services Alliance in Santa Ana. Operates a food service program and 192 units transitional home at the Village of Hope Village of Hope operated by the Orange County Rescue Mission 90 beds intermediate care shelter for abused children and their parents Tustin Family Campus operated by the Orange County Social Services Agency. Salvation Army Six (6) transitional units at Tustin Field I operated by Salvation Army Acquisition of 16 transitional units in Buena Park operated by Salvation Salvation Army Army. The City assisted in acquisition and contributed grant funds to acquire the units Fourteen (14) transitional units at Columbus Grove operated by Families Forwards Families Forward, formerly Irvine Temporary Housing, in Irvine. Six (6) transitional units at Columbus Grove operated by Human Human Options Options Orange Coast Interfaith Six (6) transitional units at Columbus Grove operated by Orange Coast Shelter Interfaith Shelter. Tustin Family and Youth Distributes food supplies to needy populations. Center Although these units are located in the City of Irvine, these units were negotiated as part of the base realignment/ conveyance process which Tustin is the Local Redevelopment Agency. Source: City of Tustin, 2013 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 26 }tip A housing unit ise dwelling intended for occupancy os separate living 4uortera, houses, apartments, condominiums, mobile homes, and s�x'eroouz occupancy (SRO) hotels are all types of housing units. This section examines housing unit growth, age, type, tenure (owner v. renter), and costs in Tustin. Housing Growth While Tustin has experienced significant growth in population and housing units since I940, the growth rate between 2000 and 2010 was significantly less than during the previous decade. This change is attributed to the closure of MC&5 Tustin and the demolition of military housing units. The loss of these units was offset by new construction in the early 2000s and the beginning of the redevelopment of &Y[AS Tustin for civilian uses, which includes the eventual construction of over 4,000 new housing units. Table }fIM-17coulpazes the growth io housing units io Tustin to nearby cities and the County aea whole. lf should be noted that much of the City's previous housing unit growth is attributable to annexations that occurred during the 1980s and 399Os. TABLE HTM- 17 HOUSING GROWTH TRENDS 199U-2O1O TD8TIN AND 8URQnDNr>nsC, AmFAC, Jurisdiction Number of Housing Units Percent Chan e 1�90 2000 20102 1990-00 2000-10 Tustin 19,300 25,501 26,476 32% 3.8% Anaheim 93,177 99,719 104,237 7% 4.5% Garden Grove 45,957 46,703 47,755 1.6% 2.3% Irvine 42,221 53,711 _�3,899 27% 562% Orange County :05,072 969,484 1,048,907 1 % 8.2% "UpdrLIIIMI Or.mmmermuurmomw,*nsus, 19m Census Report. 2 2000 Census Report, 2010 Census Report. Housing Unit Type TableHTYN-18 demonstrates the mix nfhousing types in Tustin. The distribution of housing units by type has changed over this iod, with homes steadily increasing and multifamily housing steadily decreasing as a proportion of Tustin's housing units. In 2013, Tustin'm housing stock is comprised of equal proportions of single-family homes and multifamily housing, each making up48.3 percent. Mobile homes make up the remaining 3.4 percent. The 20I8 composition of housing units in the City includes approximately 95 percent single-family detached, CITY OFTUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 27 13 percent single - family attached, 15 percent multi - family (2 -4 units), 33percent y multi - family (5+ units), and 3 percent mobile homes. Compared to Orange County as a whole, Tustin has a significantly higher proportion of multi - family housing. According to 2013 Department of Finance Estimates, the County contained approximately 62.9 percent single - family detached/ attached units and 33.9 percent multi - family units, whereas Tustin contained 48.3percent multi - family units. TABLE HTM -18 TUSTIN RESIDENTIAL UNIT MIX 1990 — 2013 CITY OF TUSTIN Totals do not equal 100% due to rounding error. Source: California De partment of Finance; Comprehensive Affordable Housing Strategy 2008 -2018. I17 The overall rental vacancy rate for Tustin in 2011 was 5.6 percent, up considerably from 4.3 percent in the first quarter of 2007. Generally, a vacancy rate of 5 percent is considered to reflect a "tight" housing market. As shown in Table HTM -19, Department of Finance data for Tustin as of January 2013 show a vacancy rate of 4.8 percent for all housing types in Tustin (single- and multi- family, owner and rental). TABLE HTM -19 VACANCY RATES 2000 -2013 CITY OF TUSTIN 2000 2013 Total Occupied Units 23,831 25,662 Vacancy Rate 6.6% 4.8% Source: California Department of Finance Comprehensive Affordable Housing Strategy 2008 -2018. Housing Tenure The tenure (owner versus renter) distribution of a community's housing stock influences several aspects of the local housing market. Residential mobility is influenced by tenure, with ownership housing typically sustaining a much lower turnover rate than rental housing. Housing overpayment, while experienced by many households regardless of tenure, is far more prevalent among renters. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 28 Number of H using Units Percent Change Housing Type 1990 % 2000 % 2013 % 2000 -2013 Single-Family Detached 5,351 27.7% 8,075 30.6`h 9.454 35.1% 17.1% Single-Family Attached 2,530 13.1% 3,459 10.8% 3,564 13.2% 3.0% Multi-Family (2-4 units) 3,089 16.0% 3,836 12.8% 4,048 15.0% 5.5% Multi - Family (5+ units) 7,678 39.5% 9,223 410% 8,983 33.3% -2.6% Mobile I tomes 707 3.6% 908 2.9 °% 909 14% 0 00 Total 19,300 99.9 %* 25,501 100.1%* 1000% N/A Totals do not equal 100% due to rounding error. Source: California De partment of Finance; Comprehensive Affordable Housing Strategy 2008 -2018. I17 The overall rental vacancy rate for Tustin in 2011 was 5.6 percent, up considerably from 4.3 percent in the first quarter of 2007. Generally, a vacancy rate of 5 percent is considered to reflect a "tight" housing market. As shown in Table HTM -19, Department of Finance data for Tustin as of January 2013 show a vacancy rate of 4.8 percent for all housing types in Tustin (single- and multi- family, owner and rental). TABLE HTM -19 VACANCY RATES 2000 -2013 CITY OF TUSTIN 2000 2013 Total Occupied Units 23,831 25,662 Vacancy Rate 6.6% 4.8% Source: California Department of Finance Comprehensive Affordable Housing Strategy 2008 -2018. Housing Tenure The tenure (owner versus renter) distribution of a community's housing stock influences several aspects of the local housing market. Residential mobility is influenced by tenure, with ownership housing typically sustaining a much lower turnover rate than rental housing. Housing overpayment, while experienced by many households regardless of tenure, is far more prevalent among renters. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 28 Ownership and rental preferences are primarily related to household income, composition, and age of the householder. In 20I1, 52.5% of the (]tv/e 24.945 occupied housing units were owner-occupied, with the remainder renter-occupied. {_nnoponod to the County as a whole, which had 60.3% owner-occupied units and 39.7% renter-occupied units, the City of Tustin had a relatively high proportion of renter-occupied units. This is significant bezanse renters tend to have lower incomes than owners, and are more susceptible to housing cost increases. The tenure figures show a shift io the City of approximately � 9% tonzoreowvner-occuyied units froon1990bo 2000. Table FTTK4-2Oisa sno�nzary o{ tenure io the City and the County. TABLE HTM- 20 TENURE 199O AND 2N1 CITY OFTDBTIN 1 2000 2011 Housing Tenure I Number I Percent I Number I Percent tv of Tustin Owner-Occupied 11,829 49.6% 13,112 52.5% Renter-Occupied 12,002 50,4% 11,833 47.5% lotal Occupied Units 23,831 100.0% 24,945 100,0% Owner-Occupied 574,456 61.4% 60.3% Renter-Occupied 360,831 38.6% _�:595,444 391,720 Total Occupied Units 935,287 100.0% 987,164 100.0% ~~~�^`""u� Du="/-u"-/"/.,-.menmn Age and Condition ofHousing Stock Housing age isa factor for determining the need for rehabilitation. Without proper housing units deteriorate over time. Also, older houses may not be built to current housing standards for fire and earthquake safety. Table HTM-21 ebopvo the distribution of housing units by year built in Tustin through 2011. Reflecting the conversion of land from agricultural to residential use and the construction of housing onthe MC/\S Tustin base during the 1960s and I970s, 274 percent ofTusdn'n units were built during the 1960s and 22.6 percent were built during the I970s. As a result, potential rehabilitation and continued maintenance may be required for these units that are over 30 years in age. The City's rapid population growth in the 1990n is reflected in tbonumber of housing unite built during that period, o total of 5,855units representing 22.2 percent of Tuedn's total housing stock. CITY 0FT0STIN HOUSING ELEMENT TECHNICAL MEMORANDUM 29 MIA TABLE HTM- 21 AGE 0F HOUSING STOCK CITY OF TUSTIN Time Period Units Built Number of Units % of Housing Stock 2005 or later 1,348 25.1% 2000 to 2004 1,236 4.7% 1990 to 1999 5,855 22.2% 1980 to 1989 3,122 11.8% 1970 to 1979 5,974 22.6% 1960 to 1969 7,236 27.4% 1950 to 1959 923 3.5% 1940 to 1949 268 1.0% 1939 or earlier 456 1.7% Total 26,418 1000/0 Source: 2007-2all American Community Survey The overall City ofTustin housing stock is generally in good condition. According to the City's Code Enforcement staff and the Neighborhood Improvement Task Force (N[TF) which is comprised of staff from various city departments, less than ten O0percent of the City housing stock isin need uf minor repairs. Only two (2) percent nf the total housing units, particularly existing fonr-p|exes within the City's southwest neighborhood, may be considered in need of substantial rehabilitation. To date the City has not identified any housing unit io need ofreplacement. IME The City of Tustin takes a proactive approach toward housing conditions through EERIE the City's Housing Rehabilitation program (discontinued with the dissolution of redevelopment), Code Enforcement program and the Neighborhood Improvement Task Force (N1FI) program. Together, these programs allow the City to identify housing units bz need of repair and provide needed assistance to maintain the City's housing stock in good conditions. Housing Costs Ownership Housing: Southern California, in line with the nation, is experiencing a recent significant increaseinthevn|umeofsingle-familyandcmWominiumsales, placing upward pressure on home prices. According to Da k, an on-line research firm, 34,380 boozes sold countywide in 20I2, an increase of I69% compared tn201l. In addition, the median price for all 2012countywide sales was $439,000, up 3.9Y6 over 2011, and the highest annual median price since 2008. During 2012, the annual median home price, increased io57 Orange County ZIP codes, was unchanged in six ZIP codes, and dropped in20 ZIP codes. The median price change iu Tustin was mixed, with n5.VY6 increase reported iu the 927DO 3|f` code and u4.6% decrease in the 92782 ZIP code. The decrease in the 92782 ZIP code may reflect a smaller percentage of new homes sold in 2012 compared with 2011. In 2012, the median new and resale home prices for zip codes in the City ofTustin ranged from $360,0OU to $476,000. ln comparison, the median resale home prices CITY OF TQS2IN HOUSING ELEMENT TECHNICAL MEMORANDUM 30 AN for cities presented in Table HTM -22 ranged from $200,000 to $925,000. Overall, median new and resale home prices in Tustin were similar to those occurring throughout Orange County. TABLE HTM- 22 NEW AND RESALE PRICE OF HOMES AND CONDOMINIUMS TUSTIN AND NEIGHBORING 1UR1(;D1C'T1nNr, )n11) ....., - u,..­'­ ­111 1- aiiu reaaie, duct conoomimums. Includes Lemon /Cowan Heights Source: Orange Cabo} Register, January 23, 2072 Rental Housing: according to Realfacts, the average rent for Tustin in the first quarter of 2013 was $1,567. Studio and one - bedroom rental units had monthly rents between $1,237 and $1,340. Two - bedroom rentals had monthly rents of $1,448 and WI � CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 31 Zip Median Home % Change City Code Price-20121 from 2011 Tustin 92780 $360,000 +5.9% Tustin 92782 $476,000 -4.6% 92801 $305,000 +3,4% 92802 $330,500 +0.2% 92804 $330,000 +4.8% Anaheim 92805 $314,000 +474 92806 $370,000 +1.9% 92807 $430,000 +0.2% 92808 $479,000 +04.81% 92840 $325,000 -1.5% 92841 $355,000 -1.3% Garden Grove 92843 $320,000 +1.6% 92844 $290,000 -3.3% 92845 $420,000 -1.4% 92602 $555,000 -5J% 92603 $925,000 +14.5% 92604 $477,500 -2.3% Irvine 92606 $550,000 +5.8% 92612 $485,000 +f2.5% 92614 $451,500 +3.1% 92618 $613,750 +12.7% 92620 $575,000 -5.6% 92865 $400,000 -2.2 °Q 92866 $458,000 +1.8% Orange 92867 $470,000 +47% 92868 $300,000 +6.2% 92869 $440,000 +4.0% 92701 $200,000 +22.5% 92703 $275,000 +7.8% Santa Ana 92704 $,290,000 0.0% 92705 $589,5002 +12.3% 92706 $365,000 0.0% 92707 1 $252,000 +7.2% ....., - u,..­'­ ­111 1- aiiu reaaie, duct conoomimums. Includes Lemon /Cowan Heights Source: Orange Cabo} Register, January 23, 2072 Rental Housing: according to Realfacts, the average rent for Tustin in the first quarter of 2013 was $1,567. Studio and one - bedroom rental units had monthly rents between $1,237 and $1,340. Two - bedroom rentals had monthly rents of $1,448 and WI � CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 31 �T above while three -or -snore bedrooms had monthly rents in excess of $2,391. Table HTM -23 presents a summary of the rental rates. TABLE HTM- 23 AVERAGE RENTAL RATES 2013 -1sT QUARTER CITY OF TUSTIN Number of Bedrooms Number of Units Average Square Footage Average Rent Studio 200 521 $1,267 1 bd/ lba 2,303 732 $1,340 2bd TH 194 1,079 $1,695 2bd /lba 625 976 $1,448 2bd / 2ba 1,924 1,021 $1,828 3bd TH 20 1,516 $1,845 3bd / 2ba 210 1,172 $2,391 Total 5,810 889 $1,567 TH = Town house unit *Rental survey represents data only for large, investment grade rental properties. Smaller rental properties represent a large segment of the rental market and offer larger, more affordable units. Source: RealFacts. When a household (adjusted for family size) pays more than 30% of its gross income for housing, it is considered an overpayment. Based on HUD's figures on affordability, households in the Very Low - income category have affordable rent of $763 for one bedroom units to $1,090 for a four - bedroom unit. In Tustin, the average rent for a one- bedroom unit is $1,340 to $2,391 for three - bedroom units. It is also important to note that many of the households in the Very -Low income category are large families, thus a one - bedroom unit at $1,340 would not only be in excess of what they could afford, but would also be inadequate in size. For households in the Low - Income category (51 % -80% of County median) affordable rental rates are $916 to $1,308 per month for housing. The rental survey shows that only studio apartments are affordable to this group (see Table HTM -23). It is important to note, however, that the rental survey considered only large, investment -grade rental properties and did not report prices of smaller rental properties. According to City staff, smaller rental properties represent a Large segment of the rental market and offer three - bedroom units that are affordable to low- income households. In summary, the preceding information suggests that, while rental housing is available in the City at rents that are affordable to all income groups, certain types of rental housing, such as single- family homes and condominium/ townhouses, are generally not affordable to the City's lower- income households. Perhaps most importantly, rental rates for units with two or more bedrooms are beyond the reach of the City's Very -Low and Low income households. This means that a Very -Low CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 32 and [ovv brcoonz household consisting of three or more persons vvoub] have a difficult time finding affordable housing of adequate size. Table }1TM-24 is an illustration of affordable net rents for 2Ol3. TABLE HTM- 14 AFFORDABLE NET RENTS 20131 CITY 8BT007TN 'It, I " I Jt, .Irdllge '%-OUnLymromeLIMAS, Z"u, sm��T"�mu�in Amoa Share of m Housing Needs Section 65584of the Government Code requires each locality's share ofthe and future housing needs to be determined by the appropriate council existing governments. Each jurisdiction's allocation represents its fair share o[ the regional housing needs. The (]tv of Tustin/a current and projected housing needs are derived from the Regional Housing Needs Assessment (RHN/\) prepared by California (SCAG). ' The components of the Q)lN/\ are divided between "existing needs'/ and future "construction needs." Existing needs were discussed earlier in the housing affordability section of this report Construction needs are defined as the number of units that would have to be added to accommodate the forecasted growth in the number mf households bY October 2O2l, as well as the number of units that would have to be added to compensate for anticipated demolitions and to achieve an "ideal" vacancy rate. Construction need includes all income groups (from very |ovv to upper) and not just those households that require assistance. The total need figure is then distributed among the four income groups. The allocations ofhousing needs by income group are adjusted to avoid Lower-Income "impaction" - the over- concentration of Lower-Income households in a jurisdiction. SC/\G'm RHNA fair-share allocation for the 2014-2021 period is 1,227 units. The closure of the WAS has presented the [ltY of Tustin with a total of 947.7 acres available for residential re-use and development. Amongst other types ofuses, the {]tv plans to add a total of 4,210 housing units of nixed density and housing type throughout the area. The []tv of Tustin also created a Redevelopment Project Area for the MCAS-Tustin project. Rased on former State Redevelopment Law requirements, at least fifteen /15\ percent of the units constructed within a Redevelopment Project /\roovverereguiredto be affordable tn Very Low, Low, and CITY OF TQSTIN HOUSING ELEMENT lELHN1(AL/0E&YL}6A8[D{lM 33 <Very Low Moderate 1 Bedroom $763 $916 $1,679 4 Bedroom 0 $1,308 'It, I " I Jt, .Irdllge '%-OUnLymromeLIMAS, Z"u, sm��T"�mu�in Amoa Share of m Housing Needs Section 65584of the Government Code requires each locality's share ofthe and future housing needs to be determined by the appropriate council existing governments. Each jurisdiction's allocation represents its fair share o[ the regional housing needs. The (]tv of Tustin/a current and projected housing needs are derived from the Regional Housing Needs Assessment (RHN/\) prepared by California (SCAG). ' The components of the Q)lN/\ are divided between "existing needs'/ and future "construction needs." Existing needs were discussed earlier in the housing affordability section of this report Construction needs are defined as the number of units that would have to be added to accommodate the forecasted growth in the number mf households bY October 2O2l, as well as the number of units that would have to be added to compensate for anticipated demolitions and to achieve an "ideal" vacancy rate. Construction need includes all income groups (from very |ovv to upper) and not just those households that require assistance. The total need figure is then distributed among the four income groups. The allocations ofhousing needs by income group are adjusted to avoid Lower-Income "impaction" - the over- concentration of Lower-Income households in a jurisdiction. SC/\G'm RHNA fair-share allocation for the 2014-2021 period is 1,227 units. The closure of the WAS has presented the [ltY of Tustin with a total of 947.7 acres available for residential re-use and development. Amongst other types ofuses, the {]tv plans to add a total of 4,210 housing units of nixed density and housing type throughout the area. The []tv of Tustin also created a Redevelopment Project Area for the MCAS-Tustin project. Rased on former State Redevelopment Law requirements, at least fifteen /15\ percent of the units constructed within a Redevelopment Project /\roovverereguiredto be affordable tn Very Low, Low, and CITY OF TQSTIN HOUSING ELEMENT lELHN1(AL/0E&YL}6A8[D{lM 33 FORMER Moderate - income households. Accordingly, from the potential new units to be built on the MCAS site, the creation of a redevelopment project area would result in up to 445 units (253units plus 192 transitional housing units) being allocated for Very Low - income housing and an additional 379 units be created for Low- and Moderate Income households. To meet its fair share of the region's housing needs during the 2014 -2021 RHNA planning period, the City's allocation for new construction housing units is 1,227 (refer to Table HTM -25). Of these, 23.1% must be affordable to Very Low income households (earning less than 50% of the County median), 15.9% must be affordable to Low- Income households (earning between 50% and 80% of the County median), 18.3% must be affordable to the Moderate - Income households (earning between 80% and 120% of County median income) and 42.8% must be affordable to Above - Moderate Income groups (earning over 120% of County median income). Table HTM -25 is a summary of housing need distribution for the 2014 -2021 RHNA planning period. TABLE HTM- 25 2014 -2021 HOUSING NEEDS CITY OF TUSTIN Income CateEory # of Units % of Total Ver , Low ( <50% County Median) 283 231 % Low (50% - 80% County Median) 195 15.9% Moderate (80% -120% County Median) 224 18.3% Above Moderate (120% County Median) 525 42.8% Total 1,227 100% Source: SLAG RHNA, 2012 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 34 INNER- FIRM ASSISTED HOUSING PRESERVATION ANALYSIS State law 1451 Statutes of 1989) requires all housing ' elements to include needs analyses and programs to address the potential conversion ofFedera,5tahe, and locally assisted housing developments ("units at risk") to market rate For example, de�d�a �su6sidizmi|om�pm�ded �o many low�noomeboosi housing. projects during the l97Oa contained provisions that aDovvthe ovvnerto"prepeyo the - loans after 2Oyears, thereby removing the low-income subsidy from the project. As part of the "units at risk" analysis, the State requires that local nrisdic�ons perbzrrnthe foDovviugtasks: ' « Needs : to include an inventory of units et risk of converting to market rate housing for period covered by the Housing an ' s of the potential for loss of affordability controls; a cost analysis of preserving or replacing the at-risk units; identification of agencies willing to acquire and manage these projects; and, identification of funding sources available to preserve nz replace tbenu. o Quantified Objectives: A quantification oi the units tohe conserved, and explanation of any difference between the number of units at risk and the number tobeconserved. « :}\ description o[ programs bo preserve the units atrisk Iuaho has one project that contain units "at risk" of - to unrestricted market rate rents. Tustin Gardens iaa1UI-unit Section 223hA(7)/221, (D) (4) project with a Section 8 contract for 100 units, In 2003 the owners of Tustin Gardens signed a five-year agreement with the U.S. Department of Housing and Urban Development UHIJ|]\. This agreement serves asa one-year Section 8 contract that automatically renews for four additional one-year terms, provided that funds are available. The current contract expires on July 13, 2014. The project owners have indicated that they intend to renew the contract, Projects financed under the Section 22I(D) kU market rate program alone have oo binding income use restrictions. The conversion of this project would have an adverse impact for the elderly who may face substantial rent increase ocpossible displacement. Table f{IM 26/istsall of the Federal, State, and locally assisted low- income housing projects located in the City of Tustin due toexpire by'2021. Table HTk8-27is an inventory of all units assisted under federal, state, and/or local programs, including HUD programs, state and local bond programs, and local in- lieu fee, inc|uei000ry, density bonus, or direct assistance programs. The inventory includes all units that are eligible to convert to market rate housing due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. CITY 0FI0STIN HOUSING ELEMENT TECHNICAL MEMORANDUM 35 /// \E\ .2 - S \/ ( ƒ72 | � � ( )k }� ƒ\ \ ƒ\ 10 0 0 tA U U I \��� Z IBM ON j co cn cnN IM UCJ <U u > tz c LO C) U 0, ZC7, < I-J < No 7 o q LT, I I m 00 CO cli 00 cq LO ft U3 :It Ln 1r) CD > rz IFII bo 00 7� to > Er) u b'D f,- tz LCI'll Q� o bp M U) r i -0 m vi I 1r) PQ � CR ti cl) ON, 1:3 114 0 b-, 00 0) > 0 00 73 C) Lr) 7-' > 00 CO CIA ON N hl Ic Cq It 0-.4 u --- - u Lr) z 4 :R b = 4 r. — + 00 0 U cis to U') u r4 I `� Ts Fy � �' � ( � o c � CA JT �z u < F- F- F-- Uh C) llzZ4 MOM,, I NINE,- o x M3 C\j (V to Lr) C-4 LA r m V) m CD v S1 0 '40. U 0 El 0 E I'll 14. 0 > t4 tz G Z L, C14 00 N cl a) N CA 0 U 71- — u C) llzZ4 MOM,, I NINE,- IF Ci -11 0 0 U I Replacement/Acquisition and Rehabilitation Analysis: The City of Tustin has of af��nd�h|� nods nI the nzost identified the knnsnn� as cost-effective methods of maintaining the stock of affordable housing, therefore high-priority program for the City. The City has identified lDD units of at-risk - housing at Tustin Gardens with expiring use restrictions within the planning period, including lOO units of very low income housing. Given the relative weakness of economic conditions and the housing market currently, the City will proceed to attempt to negotiate the extension of affordability restrictions oo these units in advance nf the specific expiration dates[ortbesenoits. The amount of assistance provided will be negotiated based on the specific economics nf each development and the potential availability of leverage financing, such as tax-exempt bonds and 4% tux credits. Funds were previously allocated to this program in prior planning periods. However, as o result nfthe dissolution of Redevelopment, the Low and Moderate Income Housing Funds, allocated to this program were recaptured by the State and transferred to the Orange County Auditor-Controller for distribution tn the appropriate taxing entities. Local Rental Subsidy. An option for preservation of at-risk units assisted hveither project based Section 8 funds and/or bond financing would hea local rental subsidy to residents. This option could be used to retain the affordable status of the units, bv IBM providing assistance to residents when their affordable units convert to market rate. Rent subsidies using state, local (the use of HOME funds or other funding sources) can be used to maintain the affordability of these at-risk units. Rent subsidies can be HIM structured to mirror the Section 8 program. There are several funding sources that could be used to provide subsidies toresidents. Under the project based Section 8 program, |IL)l} pays owners the difference between what tenants can pay (defined as 30% of household income) and what HUD and the local Housing Authority estimate to be Fair Market Kent /PM0 on the unit. Section assistance is only available to very low-income households earning less than 50% of the County median income. The 20I3 HUD median income in Orange County isS87,2O0. The analysis ulsoassumesthaavpTagevery|nvv'inoozne household has an actual income o{ 5O% of the County median income, adjusted for household size. The cost of providing subsidies for all 100 at-risk units with potential to expire during the planning period to maintain subsidized rents assumes that none of the at-risk units are preserved. The cost of providing subsidies is based on a comparison between fair market rents (FMR) and rents that are affordable for low and very low- income families. Affordability is defined as rents that do not exceed 30% of a household's monthly income. The 2013 FMRa for Orange County, which encompasses the City of Tustin, are shown in Table HTM-28. CITY OF TOSIIN HOUSING ELEMENT TECHNICAL MEMORANDUM 42 OWES TABLE HTM- 28 2013 FAIR MARKET RENTS ORANGECOUNTY Etficiency* I Bedroom 1 2 Bedroom 3 Bedroom 4 Bedroom 'Efficiency ~ Studio Apartment FMRsmclude utility costs Source: U.S, Department of Housing and Urbar, Development Table HTM-29 indicates that affordable rents for very kzvv income households would be approximately $763 for mone bedroom unit, $872 for a two bedroom unit and $987 for a three bedroom unit. Tn simplify the analysis, deonebedmomsadoc units at-risk in Tustin Gardens (100 one-bedroom ooita) are assumed to be comprised of one-person households. The costs of providing e rental subsidy for all I00 athskuoits affordable to very low income households is shown in Table HTM-30 to be approximately $53,100 per month and $637,200 annually. Actual subsidies required would vary from this estimate, as some households earn below the assumed 5096 of the County median and therefore require higher subsidies, while other households may becomprised of a different number of persons and therefore, the assumed baseline affordable rent may be higher or lower, depending on household size. CITY OF TQSIIN TECHNICAL MEMORANDUM HOUSING ELEMENT TABLE HTM- 29 Affordable Rents City ufTustin 2013 PON Unit Size Very Low Moderate (No. of Bedrooms) Low 80% AMI 1200/6 AMI 50% AMI lBed,vom $763 $916 $1'679 2Bed,00zno $872 $I'046 5I'9I8 3Bed,oume $981 $1,170 $2,159 4Dedroouo° $I'090 $1'808 S2,398 U.S. Department of Housing and Urban Development published 2013 very low income limits, adjusted proportionally for 60". of percentage of AMI category. Gross rents are calculated assuming an occupancy standard of I person per bedroom plus one. Rents are calculated assuming 30"'. of gross income spent on rent, including utilities. *^ Tustin Housing Authority The costs of providing e rental subsidy for all I00 athskuoits affordable to very low income households is shown in Table HTM-30 to be approximately $53,100 per month and $637,200 annually. Actual subsidies required would vary from this estimate, as some households earn below the assumed 5096 of the County median and therefore require higher subsidies, while other households may becomprised of a different number of persons and therefore, the assumed baseline affordable rent may be higher or lower, depending on household size. CITY OF TQSIIN TECHNICAL MEMORANDUM HOUSING ELEMENT OWNER.- I'VE 0 RUN TABLE FITM- 30 100 COST OF PROVIDING RENTAL SUBSIDY FOR VERY LOW INCOME HOUSEHOLDS I Affordable No. Differen Total Unit FMR Rent 1 Units Ce Monthly Annual 1 Bedroom $1,294 $763 $100 $531 $53,100 $637,200 2 $1,621 $872 $0 $749 $0 $o Bedroom I TOTAL $53,100 1 $637,200 I Affordable rent includes all utilities Sources: Con= of Or=e Section 8 Program; Tustin Housing Auffiority. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 44 CONSTRAINTS TO THE DEVELOPMENT, ���������N� MAINTENANCE OF IMPROVEMENT ���`�^ �`��������~�~�������~��� K���D7�X���� �°����������� This chapter examines the various constraints to housing development inTustin. These include governmental constraints and non-governmental constraints GOVERNMENTAL CONSTRAINTS Sections 65583(m) (4) of the Government Code require the Housing Element to include an analysis of potential and actual governmental constraints upon the maintenance, improvement or development o[ housing for all income levels. The following analysis fulfills this requirement. Land Use Controls The State Planning and Zoning Law /Scc.65060\ requires consistency nf the zoning ordinances with the General Plan. The existing Land Use Element of the General Plan establishes single-family, multi-family and planned residential districts. The zoning ordinance is consistent with the Land Use Element in that areas of the (]tv are designated for Single-Family, Multi-Family, Specific Plan and Planned Community Districts. An analysis of residential development potential will be provided in the Housing Element. As shown in Table [|T&4-3I, the City's existing General Plan allows a range of residential densities, from a range of 1 - 7 dwelling units per acre in the Lnry Density Residential designation up to 25 dwelling units per acre in the High Density Residential designation, which corresponds to the fl-8 K4n|bp|e Pand|y Residential District in the Zoning Code. Up to 10 units per net acre are permitted in the K4B[, (Mobile Home Park) District. The Zoning Code standards io the residential zones establish a front yard setback requirement of range between 15 and 20 feet the side yard setback requirement is 5 feet for interior side yards and lO feet for corner lots ,and the rear yard setback requirement ranges between 5 and 25feet. CITY OFIQSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 45 TABLE HTM- 31 GENERAL PLAN RESIDENTIAL LAND USE CATEGORIES CITY OF TUSTIN 1 Maximum density in dwelling units per acre is prescribed by individual Flanned Uommumty i)ocuments. Effective dwelling units per acre for low, medium, and high density residential are 4.485,11.834, and 17.39, respectively. 2 Low Density (1 -7 du /ac), Medium Density (8 -15 du/ac), Medium High Density (16-25 du /ac) In Neighborhood D, the maximum density on an individual parcel may exceed 25 units per acre as long as the total dwelling units allocated to Neighborhood D is not exceeded. Source: City of Tustin General Plan, Land Use Element, 2001. According to the General Plan build -out table (Table LU -3) in the Land Use Element, a total of 29,821 dwelling units are anticipated within the City limits. The Department of Finance (DOF) reports there are 26,958 dwelling units (as of January 2013) within the City. As developed through the adoption of AB 2348, Statutes of 2004, a metropolitan city of Tustin's size is allowed to use "default" density standards of at least 30 dwelling units per acre as determined in the Government Code Section 65583.2 to accommodate the City's share of regional housing need for lower income households. The General Plan Land Use Element's policy plan provides goals for future land development within the City. These goals and policies are reflections of the direction and images the City seeks for the future. The goals and policies include: 1. Achieve balanced development; 2. Ensure that compatible and complementary development occurs; 3. Revitalize older commercial, industrial, and residential development; 4. Promote economic expansion and diversification; CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 46 :r 1_2F s Effective Dwelling Unit per Density Designation Description Acreage Range Low Density Residential Detached single-family dwellings 5.61 1 -7 Medium Density Residential Multi - family dwellings including 15.0 8 -15 duplex, condominiums, townhomes, and a artm nts. High Density Residential Multi- family dwellings including 21.53 15 -25 duplex, condominiums, townhomes, and a artments. Mobile Home Park Mobile homes 6.31 1 -10 Planning Community (PD) Low, medium, and high - density residential developments. MCAS Tustin Specific Plan Low, medium, and medium high - density residential develo meats. 1 Maximum density in dwelling units per acre is prescribed by individual Flanned Uommumty i)ocuments. Effective dwelling units per acre for low, medium, and high density residential are 4.485,11.834, and 17.39, respectively. 2 Low Density (1 -7 du /ac), Medium Density (8 -15 du/ac), Medium High Density (16-25 du /ac) In Neighborhood D, the maximum density on an individual parcel may exceed 25 units per acre as long as the total dwelling units allocated to Neighborhood D is not exceeded. Source: City of Tustin General Plan, Land Use Element, 2001. According to the General Plan build -out table (Table LU -3) in the Land Use Element, a total of 29,821 dwelling units are anticipated within the City limits. The Department of Finance (DOF) reports there are 26,958 dwelling units (as of January 2013) within the City. As developed through the adoption of AB 2348, Statutes of 2004, a metropolitan city of Tustin's size is allowed to use "default" density standards of at least 30 dwelling units per acre as determined in the Government Code Section 65583.2 to accommodate the City's share of regional housing need for lower income households. The General Plan Land Use Element's policy plan provides goals for future land development within the City. These goals and policies are reflections of the direction and images the City seeks for the future. The goals and policies include: 1. Achieve balanced development; 2. Ensure that compatible and complementary development occurs; 3. Revitalize older commercial, industrial, and residential development; 4. Promote economic expansion and diversification; CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 46 :r 1_2F s 5. Coordinate development with the provision of adequate public facilities and 6. Strengthen the development character and mixture of uses in the Old Town/ First Street area; and 7. Promote an integrated business park character for the Pacific Center East Some suggest that low-income housing could be developed in the absence of land use controls related to density. 8ietrue that the reduction oz absence ofland area requirements per housing units would result in lower land costs per unit, if all factors were constant. However, an analysis of development costs shows that the value of the land is related to its potential yield. For example, an acre ofland that was authorized for four (4) dwelling units will be priced at a lower value than an acre of land authorized for six /6\ dwelling units. The same analogy holds for multi- family sites vvberehv the land costs are related directly to the potential ljeld in terms of unit density. Tustin has o high percentage of multi-family units where only 35.1% o{ the housing stock ie devoted to single-family detached units and 61.5% to attached and oou/d-Cand|v units. (The remaining percentage consists of mobile homes). Current land use controls restrict development in single-family residential zones to ONE one dwelling unit on parcels less than 10,00 square feet in the G4 zone and parcels less than 7,200 square feet in the R-1 zone. However, the Planned Community mdty District has authorized residential subdivisions with single-family lots n[ less than 5,000 square feet, which has significantly increased density potential to approximately 8-I3 units per acre. In addition, the provisions for Second Residential []nit adopted in 2003 allow a second unit to be constructed without discretionary permit approval provided that the site complies with criteria contained in the Zoning Ordinance. Within the multi-farnily district (R-3), a 35-foot height limitation and maximum 65% lot coverage precludes the development of housing projects. In the interest of protecting adjoining single-family lot owners, multi-family structures above 20 feet in height require acnnditioua| use permit when the structures are within 150 feet nfsingle-family residentially zoned lots. There are approximately 2Oproperties with an K-3 zoning designation that abut Single 9arniy Residential (D-l) zoning comprised ofavariety 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 are commonly used by local governments as a development tool to further this ideal. When designed properly with features such as lixbted windows and door openings along the walls facing single faodh/ zoned properties or using stepped building heights and design CITY OF TVSIIN HOUSING ELEMENT ]E{H88CAL MEMORANDUM 47 CITY OFIDS2IN HOUSING ELEMENT TECHNICAL MEMORANDUM 48 to minimize intrusion tOthe privacy of existing residents, Conditional UsePeon-dts to allow such development projects have been granted. Although, it should he noted that this restriction would not impact areas where future reeidentol development are targeted within this planning periodi since the City's KB[Nf\ 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 Planning Area I} of the &8C/\5 Tustin Specific Plan, o 150 foot height limitation up to I80 foot if approved by the (_oznznordtv I)eve}o{7nxeot Director, would be allowed. This provides for layering products (i.e. stacked flats, podium style, etc.) with mixed use developments, thereby providing opportunities for the development of higher density residential products, Projects are also able to take advantage of the Planned Community District application process where special considerations are needed. Parking requirements for residential uses are typically two /3\ spaces per dwelling unit. In multiple fanilyresideoda| districts, additional one U\ space for each four 4U units is required for guest spaces. Carports for multi-family units are permitted vvhjoh vvoodd reduce development costs in contracts 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 l.a*v. Table }1TM-S2isn summary of the City's residential zoning regulations. CITY OFIDS2IN HOUSING ELEMENT TECHNICAL MEMORANDUM 48 ti Nv bt to t cN r14 cry rry m, m cry Lf-, Lf) L,, CZ� qo Lr� CD Gp bt lu Ij 9- O bA N Z CA HOMES O I BIMINI! USE LO O UH a. O O 47- o >4 Z v� J - tt ull, F4 O ti HOMES O I BIMINI! USE LO O UH Housing for Persons wdthDisabilides/Reanpnable Accommodation The City of Tustin recognizes the importance of addressing the housing needs for persons with disabilities. The City's Zoning Code defines °{aoUr" as "an individual or two (2) or more persons living together as a single housekeeping unit in a dpve}Uog onit" This definition accommodates unrelated persons living together in a dwelling unit; thus, the City's definition for a family would not constrain the development and rehabilitation for persons with disabilities. The City requires each development ho comply with Title 24of the California Code. All multi-family complexes are required to provide accessible parking spaces based nVoo the e prescribed State code requirements. For development of special needs housing such as housing for the disabled, senior housing, etc., parking requirements vvou|dbedeterozinedboaeduponparkjngdemandaoa|ysiavvbicbhyoatorevvon|d allow for lower parking ratio in comparison to those required for multiple family residential units. lo addition, on off-street parking ordinance adopted hv�e(�itv allows for the reducdonin parking due toan/\mericao with I)iaabilibes -Act k\D '\ upgrade. The Community Development Director is authorized to aUow the reduction in the number of required parking spaces when the site is brought up to /\O/\standards. This provision provides incentives to property owners to provide reasonable accommodation bnthe disabled. The City also requires new units and apartment conversions to condominiums to comply with State specifications pursuant to SG 520 for accommodation of the disabled. /\ Residential Core facility serving six k8 or fewer persons is a permitted use ioall residential districts. The City's Zoning Ordinance does not contain maximum concentration requirements for a residential care facility serving six (6) or fewer persons. The City recognizes the need of disabled persons to retrofit their residences toallow for mobility such as wheelchair ramps, widened doorways, grab bars, and access ramps. When these improvements meet development standards only a building permit is required. In 2011, the City amended the Zoning Code to remove governmental constraints to reasonable accommodation for the disabled. The amendment provides a process in vvbioh deviations from the development standards associated with physical izoprovenuszts to accounnndate the disabled would beaccommodated with administrative approval and without the need of public hearing. Homeless Accommodation Homelessness is a statewide concern that affects many cities and counties. Throughout the country, homelessness has become an ongoing problem. Factors CITY OfTUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 51 NOR contributing to homelessness 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 deiostdnbomdizatinnof the mentally ill. The issue of homelessness iaconsidered 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 vvbicb an estimated 5,724 are unsheltered, 962 are in emergency shelters and I,647 are iotransitional shelters. The, Census and Survey estimated that 21,479 people in Orange County experience homelessness annually. Of these individuals, 3'578 are identified as chronically homeless, I,904 as aevenz|v mentally ill, 68 are suffering from HIV/ AIDS, 475are victims of domestic violence and 2,683 suffer from chronic substance abuse. Within the City of Tustin, Police reports and windshield surveys indicate limited numbers of persons nnthe street and have shown that there are nn established areas where homeless persons congregate io the City and that most persons migrate through Tustin to other areas within Orange County, rather than stay for extended periods of hoe. The Orange County Partnership, a non-profit organization whose purpose is to strengthen public and private agencies serving the homeless and those at risk of ME homelessness, reported that in 2009 there were 10 homeless persons who identified Tustin as the city nf last known pennaneot address. The McKi VentnHomelers Education Assistance Act reported 55 homeless children and youth enrolled in the -- Tustin Unified School District during 2O06-O7. SR 2 defines the : "Emergency Shelters" ayhousing for homeless purposes intended for occupancy of less than six (6) months, where no person is denied occupancy because of inability to pay. "Transitional housing" is rental housing for stays ofatleast six (b) months where the units are re-circulated to another person after a set period. "Supportive Housing" has no limit on the length of stay, provides supportive services and is occupied by low-income persons with disabilities and certain other disabled persons. SD 2 requires the city to identify the needs for emergency shelters in its Housing Element and to designate zoning districts adequate to accommodate the need. In those districts, emergency shelters must be allowed without a conditional use permit or other discretionary approvals. The city may apply certain written, objective development and management standards, such as number of beds and length of stay, if no zoning district exists that meets this standard. Alternatively, n community may require moondihnnal use permit for emergency shelters if they already have enough shelters to satisfy the need; or have entered into partnership agreement with pp to two other communities to develop an emergency shelter that CITY OF TQSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 52 will meet their collective oeeds. Supportive and transitional must be treated as a residential use of property, subject to ooh/ to same restrictions that apply toother housing of the same [vnebz that zone With the closure ofthe Marine Corps Air Station the City was provided with opportunity to address homeless accommodation. As part 'fthe conveyance process and under the Base Closure Community Redevelopment and Homeless Assistance Act of 1994 (The "Redevelopment Act"), the City as, the Local Redevelopment Agency (LB/\\ was reguiredtoconeidectbe -ioterentnftbe homeless in buildings and property on the base inpreparing the Reuse Plan (MCA5 Tustin Specific Plan/Reuse Plan). ln developing the Reuse Plan, one criteria the Secretary of Housing and Urban Development (HUD) utilized to determine the adequacy of the Reuse Plan was whether the Plan considered the size and nature of the homeless population in the communities, in the vicinity ofthe installation, and availability of existing services in such communities to meet the needs of the homeless in such conzn\uoities. &t the time ofthe preparation nf the Reuse Plan it was estimated that there was a total net homeless need of4l1 persons inthe City of Tustin and City nfIrvine (A portion ofthe M[AS Tustin is located within the City nfIrvine jurisdiction), � A large portion of this homeless need was identified as necessary to support emergency transitional housing for youth and individuals. The local homeless need ae described in both Tustin and Irvine's Consolidated Plans also indicated a gap bz the continuum of care in the areas of vocational and job training/ educational opportunities, some emergency and transitional housing units for individuals and families, support services, and affordable ownership units. Accordingly, the Homeless Assistance Plan for K-A5Tustin was adopted to addresses the problem of homelessness by utilizing the continuum oi care model promulgated by OD for accon-unodating the needs of the homeless in a manner which is consistent with the Consolidated Plans approved for the cities nf Tustin and Irvine, The fundamental components of the continuum of care system bnn|euxsnted with the MCA/S Tustin Reuse Plan: • Provides emergency shelter beds; ~ Offers transitional housing and services which enable homeless persons to progress tose|/-eutficiency;and • Provides opportunities for permanent affordable housing by the private sector. Aaaresult, the adopted M[AS Tustin Specific Plan provided sites and designated land uses to accommodate the identified homeless needs. The following sites were set aside in implementing the homeless accommodation at Tustin Legacy (formerly MCAS Tustin): CITY UFTOSIIN HOUSING ELEMENT TECHNICAL MEMORANDUM 53 � An approximate five (5) acre transitional/ emergency shelter Site was set- aside for accommodation of the homeless at MCAS Tustin. The City acquired a site from the Department of Navy; initially ground leased the site, and ultimately conveyed the site to the Orange County Rescue Mission atno Cost and facilitated the construction of Village of Hope, a 192 unit transitional housing facility, without the need for m Conditional Use Permit. The project has been completed. � A four NA acre site was recommended bwthe City of Tustin and deeded directly hr the Department of Navy ntno cost tothe Orange County Social Services Agency for the development ofan abused and neglected child and emancipated youth facility with 9O beds capacity. The project isromnetp. * A total of 50 transitional housing units were originally includedinthe Base Reuse Plan. Dosed on further negotiations with non-profit homeless providers, a total of 32 new transitional housing units were constructed and conveyed at no cost to non-profit homeless providers at Tustin Legacy. These units are dispersed throughout the Tustin Legacy community to allow integration into the community. The sites are designated as residential sites and the units were constructed inconjunction with market rate units subject to only those restrictions that apply to other residential uses. The units are transparent since the units are developed identical to those of market rate units in terms of size, materials, locations, etc. No special or other entitlement applications were required for the creation o{ these units other than those typically required for development ofresidential units at Tustin Legacy. In addition to the homeless accommodation on-mite at Tustin Legacy, the City also facilitated the purchase of a 16 unit transitional housing facility off-site for one of the homeless providers. The City subsidized the creation ofthese units through the use o{ housing set aside funds and Federal HUD Homeless Assistance funds. bn addition to the homeless accommodation, the City also encourages support services to support the community of continuum of care model to end the cycle of homelessness and to provide participants with tools to once again become contributing members of the community asfollows: m Private sector opportunities are provided to create a balanced olbx of housing types on the base. Dnnughinclusionary Zoning standards in the MCAS Tustin Specific Plan, a total of 8792 affordable units or 20.8 percent of ' Includes J2 transitional housing units set aside for non-profit homeless providers. CITY OFTGSIIN HOUSING ELEMENT TECHNICAL MEMORANDUM 54 total authorized units atTustin Legacy are required bn allow participants with opportunity to achieve self-sufficiency. Specific affordable housing requirements ^/on1d be established at the time of development ynqcot approval to ensure conformity with the Housing Element of the City's General Plan and any provisions of California Community Redevelopment Law. w The Navy will be transferring a child care facility at the former yWCASTustin to the City of Tustin, which will provide opportunities for access for all to mainstream child care bnoihbee, including early child cane and education programs, Head Start, etc. � Adult education and training will be provided by the South Orange County Community College District within the cducadon village. Emergency Shelters, Transitional Housing, and Supportive Housing S8 2de0nes "Emergency Shelters" aohousing for homeless purposes intended for occupancy of less than six (6) months, where onperson is denied occupancy because ofinability to pay. lo the City of Tustin, emergency shelters are designated as permitted uses vvitNo Planning Area 3 of the &1CAB Tustin Specific I`|ao. Planning Area 3 is a five /5\ acre site that had been no cost conveyance to the Orange County Rescue Mission for the development nf an emergency/ transitional shelter that is known as Village of Hope. The City facilitated the development of the Orange County Rescue Mission Village of Hope and waived permits fees as this was a public/private partnership. The project consists of 192 units available for emergency and transitional needs. Asof April 30, 2013, the Orange County Rescue Mission Village ofHope was at 90% capacity, with a tote/ of 173 homeless individuals consisting of homeless single men, single women, single women with children, single men with children, and two parent families. The largest homeless sub-population on the Village of Hope campus is single women with children. The Orange County Rescue Mission Village of Hope priority is to serve Tustin bnme}enm population prior to taking any other referrals from other cities or the County. The Tustin Police Department actively � refers individuals to the Village of Hope upon encounter. The Orange County Reecue Mission Village of Hope also provides a food service program of approximately 550 meals daily ho the Armory, Based upon the available data obtained from the Orange County Partnership and Mc Vent Homeless Education Assistance Act, approximately -34-55 individuals reported either Tustin as their last known permanent ad -dress or CITY OF TUSTIN HOUSING ELEMENT /EC2/80LAL ME/0{J6A8[D[{M 55 enrolled within the Tustin Unified School District. This nzeaoS that the City of Tustin is accommodating 137-158 homeless persons beyond its jurisdictional � boundaries thereby accommodating o regional need. The []tv interviewed the ()range County Rescue Mission Village of Hope representative and the City was told that there are generally 5 vacant units and o ndrdouunu of five (5) percent vacancy is available atany given tinze. The Orange County Rescue Mission Village of Hope also indicated that the shelter has met above and beyond the City's conservative estimate of 55 homeless persons and that the shelter could accommodate the year-round needs and seasonal fluctuation in the amount of available beds. Transitional housing is defined as rental housing for stays ofat least six (6)months where the units are re-circulated to another person after a set period. This housing can take several forms, including group housing m multi-family units, and often includes supportive services component tnallow individuals to gain necessary life skills in support of independent living, The Tnsdn's Zoning Code accommodates transitional housing within several zoning districts depending on the project's physical structure: I) transitional housing operated as a residential care facility is permitted/ conditionally permitted depending on the number of occupants in residential districts; and 2) transitional housing operated as rental apartments, it is permitted by right as a multi-family residential uses where multifamily housing is COMMON permitted. Supportive housing is defined as permanent (no limit on the )eoetb of stay), -- provides supportive services and is occupied by low-income persons with disabilities and certain other disabled persons. Services may include assistance designed to meet the needs of the target population in retaining housing, career counseling, mental health treatment, and life skills. The Tostb/e Zoning Code permits supportive housing as a residential use, provided supportive services are ancillary tn the primary use. Within the City of Tustin, the following emergency shelters, transitional, and supportive housing are designated as permitted uses as follows: TABLE HTM 33 SUMMARY [)FHOMELESS ACCOMMODATION ZONING REGULATIONS Housing Type Cvudit1nuuDy Zoning Permitted �a��8�m3 � M[ASI�u Transitional Home �ondud Specific Plan Emergency Shelters Permitted Planning Area 3 of WAS Tustin Specific Plan CITY OF TVSIIN HOUSING ELEMENT TECHNICAL MEMORANDUM 56 Supportive housing Permitted Planning Areas 1 and 3 of MCAS - Tustin Specific Plan Community Care Facility for six (6) or fewer Permitted All residentially zoned properties FamiJV care home, foster group bmu � boo` 6� ' Pezmiurd AUnsidenuu)ly zoned yropecuea I Includes congregate care facility, single room occupancy hotel, and children's intermediate care shelter Source: City of Tustin, MCAS Tustin Specific Plan The following are transitional homes that have been in the City otTustin Legacy. I I. A192 beds transitional home atthe Village ofHope operated by the County Rescue Mission, Orange 2 /\ 9O beds intermediate care shelter for abused children and their operated bwthe Orange County SociaServices Agency. 3. Six (6)units at Tustin Field l operated bv Salvation Army. 4. Acquisition of 16 units in Buena Park operated by Salvation Army. The City assisted in acquisition and contributed grant funds bo acquire the units. MEN S. Fourteen (I4) units at Columbus Grove operated by Families Forward, IN formerly Irvine Temporary HoVSiog.n 6. Six (6) units at Columbus Grove operated bv Human Options, 7. Six kH units at Columbus Grove operated by Orange Coast Interfaith With the exception of the transitional homes, these units are transparent and dispersed throughout the Tustin Legacy community consistent with the City's goals o variety of housing types and the diverse socio-ec000nhc and to promote the dispersion and integration of housing for all socio-economic throughout the community. Building Codes As required bv State knm, the City of Tustin has adopted the 2010 Construction Codes vvbicb includes "2010 California Building Code" and the '/2010 California Mechanical Code" published by the International Conference of Building Officials, the "2O|OCalifornia Residential Code," the "2008 California Energy Code," and the sAldough these units are located in the City of Irvine, these units were negotiated as part of the base realignment/ conveyance process {u which Tustin is the Local Redevelopment 8 CITY 0FTQSIIN HOUSING ELEMENT TECHNICAL MEM{PA80DM 57 "2010 California Green Building Code.". Other codes adopted by the City include the "20OCalifornia Plumbing Cod� the "2DO California Electrical Code," the � "2010 California Historical Building Code," and the °2010 California Existing Building Code." While the codes are intended to protect the public from unsafe conditions they result inan increase in the cost of housing in various vvoya. The codes establish specifications for building materials and incorporate seismic safety standards that add to construction costs. The technical details ofconstruction, requirenients for state licensed contractors to perform the work, plan check, and field inspections all contribute to the increased cost ofhousing. In general, in states and counties where building codes have not been adopted, the cost of housing is less than comparable housing costa 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 o ox/cb greater proportion of low-income housing available than in those areas vvbjch 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 ol the residents. Unquestionably, building codes are a governmental constraint bo 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, the City of Tustin adopted the State Historical Building Code as required by State law. The State Historical Building (_ode 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 io the Old Town Area. Site Improvements The restricted and limited ability tntax property ioan amount equal to the cost of services and public improvements has shifted site improvement costs to the developer who passes them on to the housing consumer. The philosophy is expressed that no new development should impose a financial liability upon the existing coronzurdtv residents. The voters have expressed this conviction through the adoption nf growth control measures and Proposition l3. An increased awareness of environmental amenities creates a public demand for improvements of not only the building site but of the surrounding environment which consists of drainage channels, landscaped parkways, arterial roads to serve the area, recreation facilities, preservation of open space, school facilities, and recreation amenities, all of which add to the cost o{housing. Site development standards and requirements hz the City o[ Tustin include clearing and grading the land; dedication and improvement of public ay to CITY OF T0STIN HOUSING ELEMENT TECHNICAL MEMORANDUM 58 include pavin& curbs and gutters, sidewalks, drainage street trees, streetlights and fire hydrants. On-site improvements include the under grounding u[cable 7V, water, sewer, gas' telephone and electric utilities. Subdivisions and multifamily � developments are required to provide landscaping, drainage, perimeter walls, , covered parking, landscaping, irrigatioo systems, and to submit materials and project design for review to assure architectural v Applicable nunl�- EanilyabocboesarereqoiredtnprovidebonsingaodparWngccomznodotionsbor the disabled pursuant ho State law. The review process is used to facilitate the land use and development compatibility objectives of the City and provide developers the opportunity to explore project alternatives, which could decrease development costs io the long run byavoiding costly mistakes. In the development of subdivisions, the developer is required to dedicate and improve roadways to serve the area; to provide or improve area drainage channels; to extend water, sewer and other utilities to the site; to dedicate land or pay in-lieu bees for packs and open space for private use in zncdbp|e-tarnil- � projects; and to dedicate land or pay iu-beufees for public fecUi�essuch asschoo/ and 'fire stations. Developers are allowed to construct private streets ortnmodify street standards to reduce construction costs, and this encourages and will eo�oncageaffordability of housing units in former WAS Tustin. An additional cost of site development results from the installation of noise attenuation devices and materials as required by State law. Perimeter walls and/or berms are required for subdivisions to reduce the noise levels from external surface sources such as railroads, freeways and arterial highways for sites that are located within 65 dB (CNG[] Noise Levels. Some of these costs can be reduced by the use of special State and Federal grant funds to pnoducelovv- mzdn\odermbe-incooxehoueingooits. Significant public facilities will be needed to accommodate the new and proposed housing development at the former WAS Tustin. According to the WAS Tustin Reuse Plan/Specific Plan, water, sewer, storm drainage, electrical, natural gas, and telephone and cable backbone systems that serve future housing sites will need to be constructed. All housing sites will also have to pay their proportionate share for new backbone utilities, roads, and traffic improvements required inconjunction with development of the k4CAB Tustin site and as mitigation for the adopted Final Joint Environmental hnnad Statement/ Environmental Impact Report for the Disposal and Reuse ofMCAS-Tusbo and its Addendum. Fees and Exactions By law, the City's building and development fees are restricted to the costs of performing the services, The building and planning fee schedules of the City of Tustin vverelast revised in2008. These fees stU| �oconsiderably be/ovvthose ot surrounding communities in the County. These fees may be and have been waived CITY OF TOSIIN HOUSING ELEMENT TECHN[CAL MEMORANDUM 59 by the City Council for projects where extraordinary benefits are derived such as NEW low-income housing projects, but are typicaUn required to offset City expenses. 111 1� The fee schedule adopted by the City of Tustin has aznininual impact upon the cost of within (]hc The can benzode that the cost of - and serving new developmen ts exceeds the fees a nd rev enuesthat are exacted for these developments. This ie justified msa public service tn protect the public health, safety and welfare of the future inhabitants and is partially hone 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 unrmnnoity 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 ozhousing which addresses special housing needs. In oddbhno 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 nr portion of the school fees for affordable housing projects. The City, in conjunction with the preparation of the 2009Housing Element also prepared the Affordable Gap and Leveraged Financing /\of the Housing Element Technical Memorandum attached hereto). The analysis evaluated development costs to arrive to per unit affordability gap in producing affordable units. Table l2 and Table 13nf the analysis summarize average per unit deve|nI`nuerd processing and impact fee of$2g,277to $37,530 per unit for owner buooiog prototype and $25,586 per unit for rental housing prototype (See Appendix /\ for specific development processing fees and aom1ysis). In response to the recent economic downturn, the City Council also adopted an economic stimulus program which allowed the payment of specific development fees for construction of new residential units to be deferred until either prior to final inspection or issuance of certificate of occupancy. This program provided direct and indirect assistance to developer of residential units in that reduced on-band cash flow were required at time of permit issuance. CITY OF TUSIIN HOUSING ELEMENT TECHNICAL MEMORANDUM 60 Processing and Permit Procedures The City recognizes that the myriad of agencies and for deve|opn�entresults ioadoze-oons and expensive process. The value ofland 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. - The (_onuonuoih/ Development Department serves as the coordinating agency to process development applications for the approval of other in-house departments such as Police, Public Works/ Engineering, and Parks and Recreation. These departments vvnzk together to simultaneously review projects to ensure o timely response to developers and act os the City's Design Review [oznnzitbee. Pre-application conferences with the Cozonnmitv Development Department provide the developer with information related to standards and requirements applicable to the project. For the more complicated development projects in the Special Management Areas, Specific Plans provide a standard Design Review Process. Application packages are provided to developers and include the processing chart and copies of pertinent information such as street improvement construction standards, subdivision and landscape requirements that aid developers io 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 ina timely fashion. lfacomplete application is submitted, plans are simultaneously reviewed by all Design Review Committee members and plan checking departments rather than one agency reviewing plans at o time. The Design Review application does not require a public hearing or Planning Commission approval. The Tustin City Code authorizes the Coozmooitv 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 tubeconsidered 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 iowhich the project is located would not be required to go through any other discretionary approval. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 61 For Tustin Legacy, developments under the former Master Developer footprint (approximately 800 acres) are 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 provisions, the Legacy Park Design Guidelines, and the "one-stop" processing system provide certainty to developers seeking approval for the development of residential projects. Additionally, for projects of significant benefit to the low-income community, such costs can be waived by the City Council. Workload Another governmental constraint is the number of staff and amount of staff time available for processing development projects. Since the workload is determined by outside forces (economy and market for housing), a shortage of staff time may occur during strong economic conditions which could lead to increased processing time for development projects. 11100 I MIMI 10 ME CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 62 MARKET CONSTRAINTS The availabilitv of housing is affected by the " ' within the market ok--- of price, income of hunpz, and inte rest rates. The non-governmental constraints upon the maintenance, improvement or development of housing io the City relate primarily to low- and moderate-income families. |licd-incon�e families have the option ofselecng housing accomn�udabono that nee—dbeirpzefereoces. Since environmental amenities such aa hillsides with views and beach access attract high-value developments, high-income families gravitate to the foothills and beach communities. The provision for housing opportunity to all income segments is further emphasized io the East Tustin development whereby sinede-fandlyattached and detached homes are proposed for moderate- and higher-income households. Additionally, , multi-family projects such as apartments and condominiums in Bast Tustin are provided for the low- and moderate-income groups. The same is true at the former M{_/\S Tustin area, where provisions for affordable units are required at an average of 20.9 percent. Market rote hones are proposed to accommodate diverse populations from all income levels. Financing Interest rates can have an impact on housing costs. Some mortgage variable rate, which offers an initial lower interest rate than — ."x u ` ab^0�n o� -.°^s insUtotoo� to raise rates will cause existing household s s to overextend themselves financially, and create situations where high financing costs constrain the housing market. /\n additional obstacle for the first-time hnomebuyerim the noioinnuzudown-payo�entrequired by lending insdb institutions. Even ifTustin homebuyers are able to provide a 3 percent and obtain o3.6percent koan(average|oanzateforFf���Vr\//\gu^ down-payment for Mby 20I3)' monthly mortgage payments on nzmJiao priced single-family detached homes in the City place such homes out ofthe reach o/moderate and lower-income households in the City. At a 3.6 percent interest rate, ouootb|y 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 }l7M-22 and }]TM-25). The greatest impediment to homeownership, however, is credit worthiness. According to the Federal Housing Authority, lenders consider e person's debt-to- income ratio, cash available for down payment and credit history, when determining a maximum loan amount. Many financial inabtubnoo are willing to significantly decrease down payment requirements and increase loan amounts to persons with good credit rating. Persons with poor credit ratings maybe forced to accept higher z imterestrabe or a loan amount insufficient to purchase a house. Poor credit rating can b eespecially CITY OF TQSTIV HOUSING ELEMENT /ECH8UC8L&EMLUA8000 83 1 n with damaging to k)mer-bzCona residents, who have fewer financial resources which toqu ahfn for a loan. The PHA is generally more flexible than conventionalm�m lenders io its qualifying guidelines and allows many residents to re-establish u good credit history. PmGL Marketing and Overhead According to the Comprehensive Affordable Housing Strategy4, " minimum d ev el oper [« mbt is estimated at 12 percent of deve] "/^=^, costs, based on input from developers and the Dnik1hnn Industry Association. This level is considered a baseline profit or "hurdle rate" representing the minimum necessary for the dao| to proceed. In the past due to high market demand in 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 tn the price ofhomes. The Comprehensive Affordable Strategy 2008 estimated developer overhead isat4 percent nftotal development costs. The factor having the greatest impact on the price of land is location. To a lesser degree, the iceof\�dis�ve�d����'d�a�,��av�]�|�c�� MEN the infrastructure, and the readiness for development as related to governmental permits. 101| Within the developed inGU areas o[ the City, there is a scarcity o{ land available for residential development. The supply of land is largely limited to the former M(_/\S Tustin area since the East Tustin Specific Plan area has been built out. Land zoned for commercial or industrial development may not be appropriate for residential development. The development of additional housing accommodations within the urbanized area will require the demolition and/or redevelopment of existing structures, since there are very few vacant lots remaining. The unavailability of land within the developed areas ofthe City and the price of land on the hi nges are constraints adding to the cost of ''""^^s and p^^~^^^g housing out of the reach of low- and moderate-income families. Cost of Construction One ' factor in the actual cost for new housing is construcoocosts.Thesecnsts are influenced by many factors such as the cost of labor, building materials, and site preparation. According to Marshall & Swift estimates, the cost of residential wood frame construction averages $96.30per square ^ City of Tustin Comprehensive Affordable Housing, Strategy, David Rosen and Associates, 2008 HOUSING ELEMENT CITY OF TDS2�� TECHNICAL MEMORANDUM 64 01MIS IN 10 111111 foot, Therefore, the costs attributed to construction alone for a typical 2,200 square foot, wood frame home would be at minimum $211,860. A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing may provide for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced, based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Although it should be noted that the reduced costs are most attributed to a reduction in land costs; when that cost is spread on a per unit basis. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 65 m 2m This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 66 ENERGY CONSERVATION As the price oy power continues to rise, households have through necessity been devoting more of the household income to energy cost. This condition has further eroded the affordability of housing. No relief isiosight, ag one representative from Southern California Edison reinforced ioanevvsortide: "higher rates are necessary to assure reliable supplies o{ electricity in the years abcud./' The City call explore possible partnership with utility companies to promote energy rebate programs. There are energy conservation measures the City of Tustin can promote and others that are mandated by State laws. The State of California has adopted energy conservation standards for residential building in Tide 25 of the California Administrative Code. Title 25 applies to new residential construction or an addition toen existing housing unit. Active solar for water heating can be encouraged but they are still rather expensive and can only be used asu toan electric nrgas system. They are cost efficient in the long run but pose a short-term impact to affordable housing. Permits for solar systems can be approved ministerially by the Community Development Department, and peroita are issued same-day whenever Possible. The City can also explore and streamline permits processing for approved green building. Other energy conservation method could be contributed t0 site and building design. For on example through proper inta placement at subdivision and buildings' orientation, maximum day lighting can beachieved. Light- colored "cool roofs" can. also be applied to new homes or roof replacement projects to promote energy savings. Water-efficient landscapes, efficient irrigation, and use of permeable paving materials also would contribute to energy saving. This can be achieved through updates to the City's landscape and irrigation guidelines. CITY OFTUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 67 NOR This page intentionally left blank. IVIEN CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 68 SUMMARY OF PREVIOUS HOUSING ELEMENT PROGRAMS To develop appropriate programs toaddress the housing issues identified inthis Housing Element Update, the City n{ Tustin has reviewed the housing programs adopted as part o[its 2009 Housing Element, and evaluated the effectiveness of these programs in delivering housing services. By reviewing the progress in implementation of the adopted programs, the effectiveness of the last element, and the continued appropriateness of these identified programs, m comprehensive housing program strategy has been developed. The following section reviews the progress in implementation of the programs, the effectiveness of the 20O9 Element hr date, and the continued appropriateness o[the identified programs. The results of the analysis provided the basis for developing the comprehensive housing program strategy for the future planning period, aswell as goals for the planning period inprogress. PROGRESS IN IMPLEMENTING THE 2009 GOALS AND OBJECTIVES TobkalfTM-35 r------ a ----'~-^ s000f the quantified objectives ofthe previous e|pozeut and actual achievements since 2006. Table }{TM-34 contains a list of projects by program area during the 2006 - 201-4 period. The 2007 SC/\G Regional Housing Need Assessment indicated a new construction need in Tustin by 2014 of 2,381units, of which 512 units were for very low income households, 4IO for low income, 468 for moderate income and 991 above moderate income. TABLE HTM- 34 SUMMARY TABLE EFFECTIVENESS 0FHOUSING FLBMFNTPRoGoa MR- mnoa'M/4 - mu""ugneoais were noranocateawspecitic income group, tfteuty attempted m utilize RHN* percentages u fulfill uewAobjectives. Source: The City of Tustin, Housing Element, 2009; Effectiveness of Housing Elemcnt Programs, 2008. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 69 New Constructi on Rehab/Preservation Housing Assistance Income Group Goal Actual Goal] Actual Goal' Actual Very-Low 512 362 198 166 2,079 2,329 Low 410 127 200 135 35 0 Moderate 468 189 72 4 15 0 Total 1 2,381 2,102 470 305 2,129 2,329 - mu""ugneoais were noranocateawspecitic income group, tfteuty attempted m utilize RHN* percentages u fulfill uewAobjectives. Source: The City of Tustin, Housing Element, 2009; Effectiveness of Housing Elemcnt Programs, 2008. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 69 EVEN REVIEW OF PAST State law establishes an cycle regulating housing element updates. In compliance with the SCAG cycle, the Tustin Housing Element was updated in 1989 al which time itwas found tolebn compliance with State law, and was updated again in 1994. In 1997| the City of Tustin initiated a comprehensive General Plan update, and the Housing Element was again updated to accommodate meMC4S Reuse Plan and to ensure consistency with other General Plan Elements, as well as to address recent changes in State law. These amendments were adopted on January I6,20Ol. bu20O2 and 2OO9, the (_ityu�dated its }�nusiog E}eo�entand vwae cerd6ed by The State's Housing and (�Vmznnnity Development Department in compliance with State's Law. Review of Past Housing Element Objectives Tables I|TM-33 and |{T&4'34 summarize the performance of the 2009 Element's goals and objectives. Table HTM-35 provides program by program review of the previous Housing Element, containing a discussion on the effectiveness and continued appropriateness of each program. The time period covered in this analysis is2O06-2UI4. The following discussion is a brief highlight of the progress, effectiveness and appropriateness of the past Housi Element Objectives, CITY OFTDSDN HOUSING ELEMENT TECHNICAL MEMORANDUM 70 It CJ to to u Iwo cr 4 u Lo It 7_7 C) 0 ::j > 1-1 > > x cn C7� N C\l 00 00 U L!7 �a '�? 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IN 10- pQ C'4 I 5P C� cl, 14 :5 w rq Lr) L —F) Ca b-0 u t4 i W ' �t Q I.� I bo W 0 0) u u u tz tc O:z Lr) m on LLI t4 -,5 ;� -Z:5 U u to 0 bO '05 Er- to pQ C'4 I BONN bo tz 0 1�21 7� u -P E 75 4 '75 Z cr) w o4 u U Cc) c; t-0 > 0. to o G r b.: lfir, 2 7) CL .. . . . ......... 0 0 C: In 4 LS s Ln u c;l E 0 C) eq tX 75 0 cc Ln cz C) I. rD 1>11 1 14 U� z u > >1 tOQ� 0 US u C, , , �R -p b.0 o u by r. :J Cc) U 7�-4 -C: o u 4, Ln BONN O 0-4 a cs 01- In II cn > ' i u I w U t, I all 0 0 > US 7 -7, o U) '. 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L. tn O E. �l aura u C) 2 C) P tj� 14 Ir m C; C) gl� 7 —8 1 U m u Cd CU) 05 t'O u U —u I C\4 I Lr) O z z 1.0 O O cn qt O O INE ON C) 2 COQ C"4 U c-i 75 5 .2 U t6 8) C4 z 77; > U o CL 0 Q) S w d > p > G > CL 75 bb �i�l CID i Q1 > > -Ij —t cq m 75 0 v '7U CLI 0; CL, 0) p r. Q) 6 P. C4 o Lf) -= O INE ON C) 2 COQ Ln MEN as 0 9 O SJS I O ----- ID 7z p K O n k �C t u 15 C', "c; b"D z5 tc to 4 u 0) u bt 0 Cd z 10 Lo c C J) co C) ol 12 7� 151-1, o to 22 A. -11 7� U O O I Mo 9 SIMON,, I b CIO CL on � to P. a) U� Ci Cd od 0 u Mo 9 SIMON,, I TABLE HTM- 36 PROGRESS TOWARDS OBJECTIVES 2006 -2014 CITY OF TUSTIN Quantified Extremely Very Unit Type/Description Objectives Accomplishments t Low Low I Low I Moderate I Upper NEW CONSTRUCTION MCAS Tustin Housing Units 100 100 100 Neighborhood D 891 12 8 2 2 Neighborhood G 1,214 16 6 8 2 Units Constructed 1,176 2,102 282 80 127 2.89 1424 Units Approved/ Under Construction 990 2$ 1 14 10 4 Preservation 230 Granny Flats 5 New Owner Housing 79 Second Unit 5 Recycling of SFD to MFD in R -3 district 8 Subtotal 4,598 2,1.02 282 80 127 189 1,424 RHNA 2,381 2,381 256 256 410 468 991 Difference 1,985 (279) 26 (176} (283) (279} 433 REHABILITATION Single and Multi- Family Rehab 100 100 100 Single Family 54 12 8 2 2 Mu ti- Family 108 16 6 8 2 Multi- Family Rental Acquisition/ Rehab/ Con v ersion /Resale 31 51 38 13 Total Rehabilitation 193 2$ 1 14 10 4 PRESERVATION Tustin Gardens 100 100 100 Rancho Alisal 72 72 8 64 Rancho Maderas 54 54 6 48 Rancho Tierra 51 51 38 13 Total Preservation 277 277 152 125 vaHER ArrORDABLE HOUSING 1s1 Time Homebuyer and /or Foreclosure 30 Negotiated Purchase Section 8 Rental Voucher Assistance 1,500 2,047 2,047 Shared Housing Referrals 75 Homeless Housing 242 CITY OF TUSTIN TECHNICAL MEMORANDUM 113 HOUSING ELEMENT TABLE HTM- 36 PROGRESS TOWARDS OBJECTIVES 2006 -2014 - CITY OF TUSTIN Unit Type/Description Quantified Objectives Accomplishments t Extremely Low Very Low Low Moderate Upper Partnership Program Emergency Shelter 282 282 282 Total Other Programs 2,128 2,6341 282 2,213 135 4 I .... Number of units. Sources: (1) Effectiveness of Housing Programs 2006 -2014, City of Tustin; (2) Five Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas for Fiscal Years 2005 -2006 to 2009 -2010 NO MEMO Irl CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 114 APPENDIX A AFFORDABILITY GAP ANALYSIS CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM rgw- City of Tustin Affordability Gap and leveraged Financing Analysis 1.0 Executive Summary The City of Tustin retained David Paul Rosen & Associates (DRA) to prepare an affordability gap analysis and evaluation of leveraged financing options for new residential development in Tustin. The 'affordability gap" methodology determines the difference between the supportable mortgage on the unit at affordable rents and sales prices and the actual development cost of the unit. The gap analysis provides planning-level estimates of the typical per unit subsidized required to make different types of housing affordable to households at alternative income levels. The per unit affordability gaps calculated in this report are based on housing prototypes that are jocio/6 affordable to households at each of the income levels modeled (or in the case of the leveraged financing analysis, at the mix of income levels necessary to meet. the requirements and/or competitive standards of the leveraged financing programs). However, the results can be used in estimating subsidy requirements for mixed income housing developments as well. Under the assumption that the market rate units are financially feasible without subsidy, the subsidy requirement for a mixed income development can be estimated by multiplying the number of affordable units by the appropriate per unit affordability gap. The results of the gap analysis provide a useful tool to the City of Tustin and Tustin Redevelopment Agenc y for capital planning purposes. DRA recommends-that the subsidy rovided to any individual housing development be determined based on analysis of ge specific economic conditions pertaining to that projecL 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 rat Tustin Affordability Gap and Leveraged Financing Analysis Page I wm 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 tots! 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 ap is the difference between development costs and the supportable mortgage plus the tuyer'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 USSR The gaps for the owner prototypes 'are summarized in Table 1. The gaps have bee n calcu la-ted for the following three income levels:, Affordable Income Limit Housing Cost 1. Very Low Income 509/6 of Area Median Income (AMI), adjusted 30% of 50% AMI for household size 2. Low Income W*1* 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 exam le, 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 cogs. This increases the ownership gaps. The affordability gaps shown in Table I include utility allowance deductions. The gaps for the rental prototype, without non-local leveraged financing, are summarized in Table 2. The gaps have been calculated for the following three income levels: City of Tustin Affordability Gap and Leveraged Financing Analysis Page 2 0 W (I I Affordable Housing Income Limit Cost 1. Very Low Income 500 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 1100/6 AMI DRA produced, under separate cover, a comprehensive review of Federal, State, and private sources of funding that mi?ht be used to subsidize affordable rental and ownership kousin 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 r t e 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.* Therelore, for the rental prototype, we have examined the following leverage scenarios: 1, 9% Low Income Housing Tax Credits (Federal only)'; 2. 4% tax credits with tax-exempt bonds; and 3. 4% tax credits, tax-exempt bonds, and the Multifamily Housing Program (MHP) of the California Department of Housing and Community Development (HCD). The assumptions and findings are described in the following section. The sources and uses for each leveraged rental scenario are summarized in Table 3. Since orange County was designated as a Difficult to Develop Area (DDA) by HUD in 2007, projects in the County are eligible for a 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 I 0111 III Table i Homeowner Per Unit Subsidy RequiremenW City of Tustin 2008 Source: David Paul Rosen & Associates City o(Tustin Agorciabuity cap and Levc-aged Finarxing Analysis Wage 4 MINE-- Very Low Low Moderate -0t 0-NIX an -1( Bedroom Count - income' Incomes Income, Owner Prototype #Is Attached Townhome Two Bedroom $366,000 $322,400 $195,500 Three Bedroom $387,800 $339,400 $198,400 Four Bedroom $426,800 $374,600 $222,300 Average $393,500 $345,500 $205,400 Owner Prot*" #2s Stacked Fiat Condominium One Bedroom $258,600 $219,900 $107,100 Two Bedroom $259,000 $215,500 $88,600 Three Bedroom $267,100 $218,800 577,800 Four Bedroom $290,500 $238,300 $86,000 Average $268,800 $223,100 $89,900 NINE Owner Prototype #37 High Density Condominium One Bedroom $407,500 $368,800 $256,000 Two Bedr000m, $432,500 $389,000 $262,100 Three Sed-OOM $542,000 $493,700 $352,600 Four Bedroom $569,400 $517,200 $364,800 Average $487,900 $442,200 $308,900 Owner Prototype #4* Mixed Use, Ground Floor Retail One Bedroom $491,700 $453,000 $340,200 Two Bedr000m $537,400 $493,900 $366,900 Three Bedroom $595,000 $546,600 $405,600 Average $547,300 $497,800 $370,900 Source: David Paul Rosen & Associates City o(Tustin Agorciabuity cap and Levc-aged Finarxing Analysis Wage 4 MINE-- Notes to Table 1: I 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. I 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 $11 - 6,457. 1011 11-1011114-b Moderate income owner affordable housing cost is calculated as 35 percent of 110 percent of AMI, adjusted for household size. Average moderate income affordable house purchase price Is $249,723. Owner prototype 11 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 • Owner Prototype 12 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. 7 Owner Prototype 13 average unit size Is 1,350 square feet. Average per unit development cost Is $558,617. Per unit development costa are adjusted by unit size/bedroom count 11 Owner Prototype 14 average unit size is 1,515 square feet Average per unit development cost is $608,112. per unit development costs are adjusted by unit size/bedroom count (Blz City of Tustin Affordability Cap and Leveraged Financing Analysis Past 5 6- 1 Notes to Table 1: I 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. I 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 $11 - 6,457. 1011 11-1011114-b Moderate income owner affordable housing cost is calculated as 35 percent of 110 percent of AMI, adjusted for household size. Average moderate income affordable house purchase price Is $249,723. Owner prototype 11 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 • Owner Prototype 12 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. 7 Owner Prototype 13 average unit size Is 1,350 square feet. Average per unit development cost Is $558,617. Per unit development costa are adjusted by unit size/bedroom count 11 Owner Prototype 14 average unit size is 1,515 square feet Average per unit development cost is $608,112. per unit development costs are adjusted by unit size/bedroom count (Blz City of Tustin Affordability Cap and Leveraged Financing Analysis Past 5 stiff Table 2 Tenant Per Unit Subsidy Requirements' Rental Housing Prototype: Stacked Flat Apartments City of Tustin 2008 One Bedroom$ Two Bedroom' Three BedrooM7 Four Bedroorna Average Renter Prototype Stacked Flat Apartments Very Low Low Moderate Income= Income' income" $311,300 $294,660 $211,400 $348,000 $329,300 $235,600 $3,21,800 $301,000 $197,000 $402,000 $379,600 $174,800 $345,775 $326,125 $204,700 Source. David Paul Rosen & Associates. City of Tustin Affordability Cap and Leveraged Financing Analysis am- M Notes to Table 2: 1 Tenant per unit subsidy requirements are calculated as per unit total development cost less per unit tenant supported debt. Tenant supported debt is calculated based on tenant monthly operating income which equals: affordable monthly rent, inclusive of utilities, less a monthly per unit operating cost of $300, property taxes assumed at an average annual rate of 1.20 percent; and a 3 percent vacancy rate. Tenant supported debt calculations are based on a 30 -year mortgage interest rate of 8 percent and a debt coverage ratio of 1.25. Affordable monthly rents are based on household income, adjusted for household size assuming an occupancy standard of one person per bedroom plus one, per California Redevelopment Law. 2 Very low income renter affordable housing cost Is calculated as 30 percent of 50 percent of AMI, adjusted for household size. Average very low income affordable monthly rent is $847. 3 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. 4 Moderate income renter affordable housing cost calculated as 30 percent of 110 percent of AMI, mp� adjusted for household size. Average moderate income affordable monthly rent is $1,963. 'One bedroom unit is 750 square feet. Per unit total development cost is $321,075. ME 111111111 �� FIRM I Or 1 17111 IFI! III 1111wi! 11111111!1:1111 prpil , 111 7 Three bedroom unit is 1,050 square feet. Per unit total development cost is $382,799. ® tout bedroom unit is 1,250 square feet. Per unit total development cost Is $423,947. City of Tustin Affordability Cap and Leveraged financing Analysis Page 7 Table 3 Average Per Unit Subsidy Requirements Rental Housing Prototype: Stacked Flat Apartments Leveraged Financing Scenarios C4 of mistin 2008 Leveraged financing Scenarios 31 F 9 1 =-. 4% Tax Credits, Tax-Exempt Bonds 4% Tax Credits, Tax-Exempt Bonds, Multi-Family Housing Program (MHP) Renter Prototype Stacked Flat Apartments m $140,100 Source: David Paul Rosen & Associates. City at Tustin Afforciablifty Cap and Leveraged Financing Analysis Page a A offigift This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM WKI-RIM 11, NONE 0 CITY OF TUSTIN TECHNICAL MEMORANDUM APPENDIX B REFERENCES HOUSING ELEMENT This page intentionally left blank CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM WON IBM IN I m MEN KIM 0 REFERENCES A. Documents l. 2000 Census Report. U.S. Department of Commerce, Bureau of the Census. 2. 2010 Census Report. [J.S. Department of Commerce, Bureau of the Census. 3. 2OO7-2UlI American Community Survey. LJ.S. Department nfCommerce, Bureau of the Census. 4. Comprehensive Housing Affordability Strategy for Fiscal Years 2007-2008bo 2017-2018, David PauRosen& Assodates(DRA). 5. Marine Corps Air Station Tustin Specific Plan/Reuse Plan, Adopted February 2003,/�coendnn�uts through June 20O7. ' 6. California State Department of Finance, 2013,E-5 Population and Housing Estimates. 7. Orange County Projections 20O Modified, Center for Research at(�a|�ornba State L}niverat�FuUertoo. Demographic 8. Orange County Ten - Year Plan to End Homelessness, 2O|2, County nf Orange. 4. Southern California Association of Governments Bn�ionu| Housing Needs Assessment, 2012, - - l0. City o[ Tustin, Zo ning Ordinance, ll. City ol Tustin, General Plan, os amended through November 2O12. 12. City of Tustin 2010-2015 Consolidated Plan. 13, City of Tustin Comprehensive Annual Financial Report For the Year Ended June 30, 2011. 14. City cd Tustin Consolidated Annual Performance and Evaluation September 26, 2012. 15. MarkeDvmviewRepndforCitvofIustin,KeaKacts. l8. Third Five-Year Implementation Plan for The Town Center and South Central Redevelopment Project Areas (FY 2005'Obto20U9-20I[),Tustin Community Redevelopment Agency, December 20O4. 17. Final Environmental Impact Statement/ Environmental Impact Report (ElS/E|R) for the Disposal and Reuse of&4CAS-TusUn (Program E}S/BlRfor MCAS-Tustin), laooaryI6,2A0l. CITY OFTQSTIN HOUSING ELEMENT lELH8ULAL&lEMLPl8D][IM 18. - to Comments, Final Volume 2 and S of Final Environmental Impact UE|S/ElB> for the Disposal 0� and Reuse of MCAS-Tustin. 19. City Council Staff Reports for St. Anton and Irvine Company projects, November 6,2OI2. 20. State of California, Department of Housing and Community Development, 21. Orange County Client Management Information System Year End Progress Report, Orange County Housing Partnership, December 2007 22. Orange County Department nfEdocatino,DivisionVr5cboo|ond Community Services, McKinney-Vento Homeless Education Assistance Act, 2O06-O7. 23. 2O13 State Income Limits, State Department of Housing and Community 24. Marshall & Swift 25. State of California Government Code Sections 65580etseq. B. Persons and Organizations I. Elizabeth A. Biosook,Connnunitv Development Director Community Development Tustin (714) 573-3031 2. Jerry Craig, Program Manager Tustin Successor Agency (714) 573-31,21 l |oetnaVVdlkozn, Assistant Director - Community Development Tustin (714) 573-3115 4. Scott Reeketin, Principal Planner Community Development Tustin (714) 573-3016 5. Edmelynne Hutter, Associate Planner Community Development Tustin (714) 573-3174 CI � BDQ�YG ELEMENT Iy���D�I TECHNICAL MEMORANDUM INS Fr Fly 6. Lieutenant Steve Lewis Tustin Police Department (714) 573-3271 6. Ben Savill Community Housing Advisory Council Regional Center of Orange County 7. John Luker Orange County Rescue Mission Village of Hope (714) 247-4300 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECAPACAL MEMORANDUM dffll� INS- N NINE INIEN APPENDIX C MAJOR EMPLOYERS IN TUSTIN CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM TABLE H -1 LIST OF MAJOR EMPLOYERS IN TUSTIN, CA 2011 Company /Address No. Emp. Product/Service Young's Market Co LLC 2,100 Distributor 14402 Franklin Ave Tustin, CA 92780 Tustin Unified School District 1,728 Education 300 South C St - Tustin 92780 Lamppost Pizza Corp 1,4001 Corporation 3002 Dow Ave, Tustin, CA Ricoh Electronics, Inc 1,384 Manufacturer 1100 Valencia Ave. - Tustin, 92780 Tosiba America Medical Systems 900 Distributor, 2441 Michelle Dr. - Tustin, 92780 Medical Equipment Rockwell Collins - (714) 317 -8102 600 Manufacturer 14192 Franklin Ave.- Tustin, 92780 Costco Wholesale 450 Wholesale Trade 2700 Park Ave. - Tustin 92780; 2655 El Camino Real, Tustin, CA Cherokee International 350 Power Suppties 2841 Dow Ave. - Tustin, 92780 City of Tustin 300 Government 300 Centennial Wap - Tustin 92780 Raj Manufacturing Inc 260 Manufacturing 2692 Dow Ave, Tustin, CA Cash Plus Inc 250 Financial Services 3002 Dow Ave, Tustin, CA Kleen Impressions 250 Cleaning Services 1730017th St # J Pmb 388, Tustin, CA Ricoh Business Solutions 250 Business Services 1123 Warner Ave Tustin, CA 92780 Southern California Pipeline 235 Construction 15991 Red Hill Ave, Tustin, CA Home Depot 203 Retail 2782 El Camino Real - Tustin, 92780 Health South Tustin Rehab Hospital 200 Medical 14851 Yarba St, Tustin, CA Logomark, Inc. 200 Wholesale Trade 1201 Bell Ave. - Tustin 92780 Red Robin Gourmet Burgers2 2001 Retail 3015 El Camino Real, Tustin, CA SMC Corporation of America 200 Manufacturer 14191 Myford Rd. - Tustin 92780 Straub Distributing Companys 200 Wholesale Trade 2701 Dow Ave, - Tustin, 92780 Tustin Toyota 200 Automotive Dealer 36 Auto Center Dr, Tustin, CA SOURCE: City of Tustin Comprehensive Annual Financial Report For the Year Ended June 30, 2011 1 The employee count appears to include those employed at locations outside of Tustin. 2 Red Robin Gourmet Burgers was located at 3015 El Camino Real in 2011 and has relocated to 2667 Park Avenue. I Straub Distributing Company was Iocated in Tustin in 2011, but is no longer doing business in Tustin. CITY OF T USTIN TECHNICAL MEMORANDUM HOUSING ELEMENT This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM mm