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HomeMy WebLinkAboutCC RES 02-074RESOLUTION NO. 02-74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING AN AMENDMENT TO GENERAL PLAN AMENDMENT 02-001, REVISING THE ADOPTED TUSTIN HOUSING ELEMENT. The City Council does hereby resolve as follows: I. The City Council finds and determines as follows: A. That California Government Code Section 65588 requires each City review as frequently as appropriate and revise its Housing Element as appropriate. B. That the City prepared a Housing Element Update pursuant to Government Code Section 65588 and incorporated comments received on the draft from the State Department of Housing and Community Development ("HCD"). C. That the City utilized the most recent available data in completing the Housing Element Update and that the City has worked diligently with HCD to produce an effective Housing Element. D. That in anticipating completion of the Housing Element Update, the City progressed as follows: August 5, 1999 Sent Request for Proposals (RFP) to fifteen (15) consulting firms to prepare an update for the City of Tustin. .October 4, 1999 The City Council authorized the Planning Center to prepare the City's Housing Element Update. Between October 1999 and September 2000 SCAG completed Regional Housing Needs Assessment (RHNA) process and assigned RHNA numbers to cities within its jurisdiction. SCAG adopted Final RHNA on November 2, 2000. September 29, 2000 The City completed its first draft Housing Element Update for the State Department of Housing and Community Development (HCD) review. November 16, 2000 HCD provided a comment letter and requested revisions be made to the Housing Element Update. January through December 2001 The City worked with the Planning Center to address HCD comments and corrections. The Planning Center Resolution No. 02-74 Page 2 January 3, 2002 experienced staff changes which delayed the completion of the Draft Housing Element. City staff took over the project and completed the revised Housing Element in-house. The City sent the revised Housing Element incorporating HCD's requested revisions to HCD. January 14, 2002 The Planning Commission conducted a workshop to familiarize the public with the purpose and intent of the Housing Element Update. January 28, 2002 The Planning Commission held a public hearing on the Housing Element Update and the environmental document and recommended that the City Council certify the environmental document and adopt the Housing Element Update as proposed. February 4, 2002 The City Council adopted the environmental documents and the Housing Element Update. February 11, 2002 The City sent HCD a copy of the adopted Housing Element. March 7, 2002 HCD provided the City with review comments and corrections. Between March 7, 2002 and June 2002 The City worked diligently with HCD through informal phone conversations and submissions via fax to address HCD comments and corrections. June 14, 2002 The City sent the revised Housing Element for HCD review. July 3, 2002 HCD approved the revised draft Housing Element pending Council adoption of the amended Housing Element. July 22, 2002 The Planning Commission held a public hearing on the revisions to the Housing Element Update and the environmental document and recommended that the City Council find that the environmental document adopted on February 4, 2002 is adequate and adopt the Housing Element Update as amended. Resolution No. 02-74 Page 3 August 5, 2002 The City Council scheduled the adoption of the revisions to the Housing Element Update. However, the City Council continued this item to November 4, 2002, to ensure that the adoption of the Housing Element Update is consistent with the Settlement Agreement with the Santa Ana School District. E. That a public workshop was held on January 14, 2002, to familiarize the general public with the purpose and intent of the Housing Element Update. F. That a public hearing was duly called, noticed, and held on January 28, 2002, by the Planning Commission to consider and provide further opportunity for the general public to comment on the proposed Housing Element Update. G. That a public hearing was duly called, noticed, and held on February 4, 2002, by the City Council to consider and provide further opportunity for the general public to comment on the proposed Housing Element Update. H. That the City Council considered environmental documentation and adopted the Housing Element Update on February 4, 2002. I. That HCD reviewed the adopted Housing Element Update and recommended revisions; the City prepared revisions, and the revisions were approved by HCD. J. That a public hearing was duly called, noticed, and held on July 22, 20029 by the Planning Commission to consider and provide further opportunity for the general public to comment on the proposed revisions to the Housing Element Update. K. That a public hearing was duly called, noticed, and held on November 4, 2002, by the City Council to consider and provide further opportunity for the general public to comment on the proposed revisions to the Housing Element Update. L. That pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15152, the City of Tustin has completed environmental review and determined that all effects associated with the revisions to the Housing Element Update were adequately evaluated in the Program EIS/EIR for MCAS Tustin as determined by the City Council on February 47 2002, that no new effects would occur, that no substantial increase in the severity of previously identified significant effects would occur, that no new mitigation measures would be required, that no applicable mitigation measures previously not found to be feasible would in fact be feasible, and that there are no new mitigation measures or alternatives applicable to the project that would substantially reduce effects of the project that Resolution No. 02-74 Page 4 have not been considered and adopted. The revision to the Update makes clarifying and technical changes that do not affect the prior environmental determination. II. The City Council hereby approves an amendment to the General Plan Amendment 02-001, revising the Tustin Housing Element Update as identified in "Exhibit A" attached hereto. PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting on the 4 day of November, 2002. THOMAS Mayor ( j I AMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 02-74 PAMELA STOKER, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 02-74 was duly and regularly introduced, passed, and adopted at a regular meeting of the Tustin City Council, held on the 4 day of November, 2002. COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ri MEUiE� LA STOKER y Clerk Thomas, Worley, Bone, Doyle, Kawashima None None None Exhibit A of City Council Resolution No. 02-74 Housing Element TUSTIN GENERAL PLAN NOVEMBER 2002 This page intentionally left blank. TABLE OF CONTENTS Section Page INTRODUCTION TO THE HOUSING ELEMENT 1 Purpose Of The Housing Element 1 Scope And Content Of Element 2 Consistency With State Planning Law 2 General Plan Consistency 4 Citizen Participation 5 SUMMARY OF ISSUES, NEEDS, CONSTRAINTS AND OPPORTUNITIES 7 Summary Of Housing Needs 7 Preservation Of Units At Risk Of Conversion 20 Summary Of Housing Issues 25 Housing Constraints 29 Housing Opportunities 37 HOUSING ELEMENT GOALS AND POLICIES 48 Housing Supply/ Housing Opportunities 48 Maintenance And Conservation 52 ENVIRONMENTAL SENSITIVITY 53 RELATED GOALS AND POLICIES 53 HOUSING ELEMENT IMPLEMENTATION PROGRAM 55 FIVE YEAR QUANTIFIED OBJECTIVES 2000-2005 55 IDENTIFICATION OF AFFORDABLE HOUSING RESOURCES 60 HOUSING PROGRAMS 78 APPENDICES A - REVIEW OF PAST PERFORMANCE B - AFFORDABILITY GAP ANALYSIS C - PUBLIC PARTICIPATION MAILING LIST D - REFERENCES CITY OF TUSTIN HOUSING ELEMENT November 2002 i LIST OF TABLES PAGE TABLE H- 1: STATE HOUSING ELEMENT REQUIREMENTS 3 TABLE H- 2: POPULATION PROJECTIONS 8 TABLE H- 3: EMPLOYMENT PROJECTIONS 9 TABLE H- 4: MAJOR TUSTIN EMPLOYERS 10 TABLE H- 5: CITY OT TUSTIN JOBS/HOUSING BALANCE 11 TABLE H- 6: AFFORDABLE HOUSING PROJECT SUMMARY 14 TABLE H- 7: RENTAL MARKET SUMMARY 15 TABLE H- 8: EMERGENCY SHELTER/TRANSISTIONAL HOUSING FACILITIES 19 TABLE H- 9: ASSISTED HOUSING INVENTORY 22 TABLE H- 10: SUMMARY OF EXISTING HOUSING NEEDS 25 TABLE H- 11: ANTICIPATED DEVELOPMENT AT MCAS-TUSTIN 34 TABLE H- 12: LAND INVENTORY AND RESIDENTIAL DEVELOPMENT POTENTIAL 38 TABLE H- 13: PROGRESS TOWARD RHNA CONSTRUCTION NEEDS 39 TABLE H- 14: VACANT AND UNDERUTILIZED WITH RESIDENTIAL DEVELOPMENT POTENTIAL 42 TABLE H- 15: VACANT AND UNDERUTILZED LAND 46 TABLE H- 16: HOUSING RELATED GOALS AND POLICIES BY ELEMENT 54 TABLE H- 17: NEW CONSTRUCTION QUANTIFIED OBJECTIVES SUMMARY 1998-2005 57 TABLE H- 18: REHABILITATION, PRESERVATION, AND OTHER AFFORDABLE HOUSING QUANTIFIED OBJECTIVES SUMMARY 1998-2005 59 TABLE H- 19: SUMMARY OF QUANTIFIED OBJECTIVES 2000-2005 60 TABLE H- 20: HOUSING. PROGRAM ILLUSTRATIVE FUNDING RESOURCES 2000-2005 61 TABLE H- 21: AFFORDABLE HOUSING RESOURCES 62 TABLE H- 22: HOUSING ELEMENT PROGRAMS 2000-2005 79 CITY OF TUSTIN HOUSING ELEMENT ii November 2002 INTRODUCTION TO THE HOUSING ELEMENT The availability of decent housing and a suitable living environment for every family has been of increasing concern to all levels of government. In California, this concern is addressed by the California Government Code requirement that each City adopt a Housing Element as a mandatory part of its General Plan. State Planning Law mandates that jurisdictions within the Southern California Association of Governments (SCAG) region adopt revisions to their Housing Elements by December 31, 2000. As a consequence of this due date, a series of time frames for various aspects of the Housing Element preparation are established. There are three relevant time periods: 1989-2000: The previous planning period began on July 1, 1989, and is currently scheduled to end on December 31, 2000. 19984une 30, 2005: a planning period for assessing short-term housing construction needs. ° 2000-2005: an implementation period for housing programs. The planning period for the Regional Housing Needs Assessment (RHNA) prepared by SCAG is from January 1998 to June 2005, a seven and one-half year period. The implementation period covered by this element is July 2000 through June 2005. By 2003, the City, along with other jurisdictions in the SCAG region, again will begin preparation for a revision of the housing element to cover the period from 2005-2010. 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 November 2002 1 SCOPE AND CONTENT OF ELEMENT The State Legislature recognizes the role of the local general plan, and particularly the Housing Element, in implementing Statewide housing goals. Furthermore, the Legislature stresses continuing efforts toward providing affordable housing for all income groups. The Legislature's major concerns with regard to the preparation of Housing Elements are: ° Recognition by local governments of their responsibility in contributing to the attainment of State housing goals; ° Preparation and implementation of housing elements which coordinate with State and Federal efforts in achieving State housing goals; ° Participation by local jurisdictions in determining efforts required to attain State housing goals; and ° Cooperation between local governments to address regional housing needs. The State Department of Housing and Community Development (HCD) sets forth specific requirements regarding the scope and content of housing elements. CONSISTENCY WITH STATE PLANNING LAW The preparation of the City's Housing Element is guided by and must conform to Section 65580 et al of the California Government Code. In the introduction of these Government Code sections, the Legislature establishes a policy that the availability of housing in a suitable environment is of vital statewide importance, and a priority of the highest order. It further states that local governments are to address the housing needs of all economic segments, while considering the economic, environmental and fiscal factors and community goals set forth in the General Plan. The following table cites the required components for the Housing Element and cites the document and page references for the required components. CITY OF TUSTIN HOUSING ELEMENT 2 November 2002 Table H-1 STATE HOUSING ELEMENT REQUIREMENTS CITY OF TUSTIN HOUSING ELEMENT November 2002 Required Housing Element Component Page A. Housing Needs Assessment 1. Analysis of population trends in Tustin in relation to regional trends HTM 9 & HE 8 2. Analysis of employment trends in Tustin in relation to regional HTM 13 & trends HE 8 3. Projection and quantification of Tustin's existing and projected HE 25 housing needs for all income groups 4. Analysis and documentation of Tustin's housing characteristics including the following: a level of housing cost compared to ability to pay; HTM 22 b overcrowding; HTM 17 c housing stock condition. HTM 30 5. An inventory of land suitable for residential development including HE 42 vacant sites and having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites 6. Analysis of existing and potential governmental constraints upon the HTM 53 & maintenance, improvement, or development of housing for all HE 31 income levels 7. Analysis of existing and potential non-governmental and market HTM 65 & constraints upon maintenance, improvement, or development of HE 29 housing for all income levels 8. Analysis of special housing need: disabled, elderly, large families, HE 16 female -headed households, farmworkers 9. Analysis concerning the needs of homeless individuals and families HE 17 in Tustin 10. Analysis of opportunities for energy conservation with respect to HTM 70 residential development B. Goals and Policies 1. Identification of Tustin's goals, quantified objectives and policies HE 51 relative to maintenance, improvement, and development of housing CITY OF TUSTIN HOUSING ELEMENT November 2002 Table H-1 STATE HOUSING ELEMENT REQUIREMENTS Source: California Government Code, §65583, et al. GENERAL PLAN CONSISTENCY While a city must consider housing needs for all economic segments, it must also maintain internal consistency among other elements of the General Plan as required by state law. Neither the Housing Element nor any other element may supersede any other required Tustin General Plan elements. The Housing Element relates to other elements in a variety of ways. The Land Use Element directly relates to the Housing Element by designating areas of the City in which a variety of residential types and densities exist. The Housing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs in the areas of the City with the highest density. Also, housing needs for low cost land must be balanced by the need to conserve natural resources. CITY OF TUSTIN HOUSING ELEMENT 4 November 2002 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 HE 58-98 appropriate 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 HE 58-98 low -and moderate -income households 3. Identify and, when appropriate and possible, remove governmental HE 58-98 constraints to the maintenance, improvement, and development of housing 4. Conserve and improve the condition of the existing and affordable HE 58-98 housing stock 5. Promote housing opportunities for all persons HE 58-98 6. Identify programs to address the potential conversion of assisted HE 58-98 housing developments to market rate units Source: California Government Code, §65583, et al. GENERAL PLAN CONSISTENCY While a city must consider housing needs for all economic segments, it must also maintain internal consistency among other elements of the General Plan as required by state law. Neither the Housing Element nor any other element may supersede any other required Tustin General Plan elements. The Housing Element relates to other elements in a variety of ways. The Land Use Element directly relates to the Housing Element by designating areas of the City in which a variety of residential types and densities exist. The Housing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs in the areas of the City with the highest density. Also, housing needs for low cost land must be balanced by the need to conserve natural resources. CITY OF TUSTIN HOUSING ELEMENT 4 November 2002 The Circulation Element attempts to provide an efficient and well- balanced circulation system. This system must be designed to accommodate allowed land uses, including residential uses, and the intensity of allowable uses should not exceed the ultimate capacity to accommodate them. The Safety Element relates to the Housing Element by designating areas that are unsafe for development such as Alquist Priolo Zones, floodplain, etcetera. Similar to the Safety Element, the Noise Element relates to the Housing Element by addressing a health related issue area. Techniques for reducing noise often involve buffers between land uses. The Growth Management Element overlaps the issues raised in the Housing Element in its efforts to ensure that the planning, management, and implementation of traffic improvements and public facilities are adequate to meet the current and projected needs of Orange County. The Housing Element has been reviewed for consistency with the City's other General Plan elements and policy directions. As parts of the General Plan are amended in the future, this housing element will be reviewed to ensure that consistency is maintained. CITIZEN PARTICIPATION The California Government Code requires that local governments make diligent efforts to solicit public participation from all segments of the community in the development of the Housing Element. Public participation in the Housing Element Update process occurred through the following methods: ° A public workshop was conducted on January 14, 2002 to present the draft Housing Element and provide an opportunity for interested persons to ask question and offer suggestions. Notice of this workshop was published in the Tustin News and was also mailed to the City's list of local housing interest groups. A copy of the mailing list is included as Appendix C. CITY OF TUSTIN HOUSING ELEMENT November 2002 5 Specific implementation programs included in the Housing Element Update were also discussed at various public hearings over the last 18 months in anticipation of the Housing Element Update. These hearings include the Federal Community Development Block Grant Program public hearing held on May 1, 2000, adoption of the City's of Tustin's Comprehensive Housing Affordability Strategy for fiscal years 2000-2001 to 2009-2010 public hearing held on February 7, 2000, and adoption of the Second Five-year Implementation Plan for the Town Center and South Central Redevelopment Project areas for fiscal years 2000-01 to 2004- 2005 public hearing held on March 6, 2000. Public hearings were held on January 28, 2002, by the Planning Commission and on February 4, 2002, by the City Council to provide additional opportunities for public review and comment on the Housing Element Update and supporting documents. CITY OF TUSTIN HOUSING ELEMENT 6 November 2002 SUMMARY OF ISSUES, NEEDS, CONSTRAINTS AND OPPORTUNITIES This section of the Housing Element summarizes Tustin's current and projected housing needs to form the basis for establishing program priorities and quantified objectives in the Housing Element. This section also: • Estimates the number of households that meet Federal or State criteria for special consideration when discussing specialized needs; • Evaluates assisted units at risk of conversion; • Describes constraints that may discourage the construction of new housing; and • Examines housing opportunity sites. SUMMARY OF HOUSING NEEDS A number of factors will influence the degree of demand or "need" for housing in Tustin. The major "needs" categories considered in this Element include: ° Housing needs resulting from increased population and employment growth in the City and the surrounding region; ° Housing needs resulting from household overcrowding; ° Housing needs resulting from the deterioration or demolition of existing units; Housing needs that result when households are paying more than they can afford for housing; ° Housing needs resulting from the presence of "special needs groups" such as the elderly, large families, female -headed households, households with a disabled person, and the homeless; and ° Housing needs resulting from conversion of the assisted housing stock to market rate. CITY OF TUSTIN HOUSING ELEMENT November 2002 7 Population Growth Between 1990 and 1999, the City's population grew from 50,689 to 67,153, an increase of 32.5 percent. Tustin's growth rate (32.5 percent) between 1990 and 1999 was faster than the countywide growth rate of 15.5 percent. The California Department of Finance (DOF) estimates a total population of 67,153 persons in the City as of January 19991. The City's population is expected to reach 72,735 by the year 2005. A significant amount of Tustin's population growth can be attributed to annexations that have occurred since 1980. The remainder can be attributed to new residential construction in East Tustin, a changeover in population from smaller to larger families, rebuilding of existing developed areas, and infill development. Population projections are shown in Table H-2. According to Orange County Projections (OCP) 96 Modified data, the population in the City of Tustin is expected to increase by approximately 12 percent to 74,964 persons by the year 2020. Table H- 2 Population Projection Source: OCP -96 Modified, Prepared by Center for Demographic Research. Employment According to 1990 Census data, the City of Tustin had 31,394 residents in the labor force, of which 27,274 were in the labor market. Of these, 81 % were private wages and salary workers.2 The largest occupational category was administrative support occupations, in which a total of 5,533 were employed. The second 1 Housing Element Technical Memorandum Table HTM-1 2 Housing Element Technical Memorandum Table HTM-4. CITY OF TUSTIN HOUSING ELEMENT 8 November 2002 2000 2005 2010 2020 Percent Change 2000-2020 Tustin 66,740 72,735 73,791 74,964 12% Source: OCP -96 Modified, Prepared by Center for Demographic Research. Employment According to 1990 Census data, the City of Tustin had 31,394 residents in the labor force, of which 27,274 were in the labor market. Of these, 81 % were private wages and salary workers.2 The largest occupational category was administrative support occupations, in which a total of 5,533 were employed. The second 1 Housing Element Technical Memorandum Table HTM-1 2 Housing Element Technical Memorandum Table HTM-4. CITY OF TUSTIN HOUSING ELEMENT 8 November 2002 largest was the executive, administrative, and managerial occupations. The 1990 Census also showed that 2,714 persons were in the Armed Forces. Those involved with farming, forestry and fishing occupations accounted for only 0.9%. In terms of industry, the retail and manufacturing sectors employed the largest number of persons with 4,441 (16.3%) and 4,008 (14.7%) employees, respectively.3 Table H-3 provides employment projections between the years 2000 and 2020. According to OCP -96 Modified data, employment in the City of Tustin is expected to increase by approximately 31 percent by the year 2020. Table H- 3 Employment Projection Source: OCP -96 Modified, Prepared by Center for Demographic Research. Table H-4 provides a list of the largest private sector employers in Tustin in 1999. The list includes a variety of industries, including manufacturing, health care, retail, and technology sectors. 3 Housing Element Technical Memorandum Table HTM-5. CITY OF TUSTIN HOUSING ELEMENT November 2002 9 2000 2005 2010 2020 Percent Change 2000-2020 Tustin 42,097 45,988 49,545 55,183 31 Source: OCP -96 Modified, Prepared by Center for Demographic Research. Table H-4 provides a list of the largest private sector employers in Tustin in 1999. The list includes a variety of industries, including manufacturing, health care, retail, and technology sectors. 3 Housing Element Technical Memorandum Table HTM-5. CITY OF TUSTIN HOUSING ELEMENT November 2002 9 Table H- 4 MATOR TUSTIN EMPLOYERS Company/Address/Telephone No. Emp. Product/Service Steelcase Inc - (714) 259-8000 1,100 Office Furniture 1123 Warner Avenue - Tustin 92780 Ricoh Electronics, Inc. (714) 259-1220 1,038 Manufacturer 1100 Valencia Avenue - Tustin, 92780 Sun Health Care Group - (714) 5d� "n-4443 985 Healthcare 2742 Dow Avenue - Tustin 92780 Texas Instruments - (714) 573-60M 560 Semiconductors 14351 M ford Road - Tustin 92780 Silicon Systems - (714) 731-7110 550 Integrated Circuits 14351 M ford Road - Tustin 92780 MacPherson Enterprises - (714) 832-3300 540 Auto Dealerships 2 Auto Center Drive - Tustin 92782 Pargain Technology - (714) 832-9922 500 Telecommunications 14402 Franklin Avenue - Tustin 92780 Cherokee International - (714) 598-2000 330 Power Supplies 2841 Dow - Tustin 92780 Toshiba America Medical Systems - (714) 730-5000 300 Distributor, Medical 2441 Michelle - Tustin 92780 E ui ment Crazy Shirts - (714) 832-5883 245 Apparel 2911 Dow Avenue - Tustin 92780 Printrak International - (714) 238-2000 204 Fingerprinting Systems 1250 N. Tustin - Tustin 92780 Revere Transducers - (714) 731-1234 200 Manufacturer 14192 Franklin Avenue - Tustin 92780 Tustin Hospital - (714) 669-5883 200 Hospital 14662 Newport Boulevard - Tustin 92780 Pacific Bell Mobile Services - (714) 734-7300 200 Telecommunications 2521 Michelle Drive 2nd Floor - Tustin 92780 Fireman's Fund Insurance - (714) 669-0911 190 Insurance 1754217th Street - Tustin 92780 Safeguard Business Systems - (714) 730-8112 175 Accounting Services 14661 Franklin - Tustin 92780 Dynachem electronic Materials - (714) 730-4200 135 Chemicals 2631 Michelle Drive - Tustin 92780 Vitalcom Inc. - (714) 546-0147 130 Medical computer 15222 Del Amo Avenue - Tustin 92780 Networks Smartflex Systems Inc. - (714) 838-8737 127 Electronic Assemblies 14312 Franklin Avenue - Tustin 92780 Duncan electronics - (714) 258-7500 125 Sensors Manufacturing 15771 Red Hill - Tustin 92780 Quality Systems - (714) 731-7171 113 Medical/Dental 17822 E. 17th Street, Suite 210 - Tustin 92780 Computer Systems Source: Tustin Chamber of Commerce, 1999 CITY OF TUSTIN HOUSING ELEMENT 10 November 2002 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. The jobs -housing balance for the City of Tustin is shown in Table H-5. According to the California Department of Finance and SLAG, there were 43,873 employment opportunities and 24,861 households in Tustin resulting in a jobs/housing ratio of 1.76. In comparison, jobs/housing ratio for Orange County was 1.59. The jobs/housing ratio for the entire six - county SLAG region was 1.35 in 2000. This analysis demonstrates that Tustin is a job -rich community when compared to the county and regional averages. Table H- 5 CITY OF TUSTIN JOBS/HOUSING BALANCE 2000 Tustin Orange County SCAG Re on Employment 43,873 1,536,603 7,708,504 Housing Units 24,861 966,086 5,726,547 Jobs/Housing Ratio 1.76 1.59 1.35 Sources: California Department of Finance; SCAG. Overcrowding Along with the City's population growth, there has been an increase in unit overcrowding, as households "double up" to save on housing costs. Overcrowding is often reflective of one of three conditions: 1) a family or household is living in too small a dwelling; 2) a family chooses to house extended family members (i.e., grandparents or grown children and their families living with parents, termed doubling); or 3) a family is renting living space to non family members. State and Federal Housing Law defines overcrowded housing units as those in which the ratio of persons -to -rooms exceeds 1.0. The rooms considered in this equation exclude bathrooms, kitchens, and CITY OF TUSTIN HOUSING ELEMENT November 2002 I1 hallways, but includes other rooms such as living and dining rooms. The 1999 Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SCAG) figures showed 2,390 (9 percent) households living in overcrowded conditions of which 51 percent were Low-income households. Low- income households are those earning' 80 percent or less than the county median family income (MFI). Income levels are discussed further in the "affordability" section. Substandard Units Approximately 64 percent of the City's housing stock is over 30 years old. By 2010, 78 percent of the City's housing Stock will be over 30 years. This indicates a potential need for rehabilitation and continued maintenance of nearly 19,300 dwelling units4. Affordability State and Federal standards for rental housing overpayment are based on an income -to -housing cost ratio of 30 percent and above5. Households paying greater than this percentage will have less income left over for other necessities, such as food, clothing and health care. Upper income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups. The 1999 RHNA estimates show 38 percent (8,569) of Tustin's 22,755 total households were paying more than 30 percent of their income on housing needs. Of these over -payers, 64 percent were Low-income households (<80% of WI) of which 3,446 were classified as Very Low-income households (<50% of MFI). The distinction between renter and owner housing overpayment is important because, while homeowners may over -extend themselves financially to afford the option of home purchase, the owner always 4 Housing Element Technical Memorandum Table HTM-21. 5 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. Source: Strategies for Planning and Development: California Affordable Housing Handbook, California Redevelopment Association, 2000. CITY OF TUSTIN HOUSING ELEMENT 12 November 2002 maintains the option of selling the home, thereby generally lowering housing costs. In addition, home ownership affords tax benefits to reduce monthly costs. Renters are limited to the rental market, and are generally required to pay the rent established in that market. According to the RHNA, of the total 5,494 lower income households identified as overpayers, 4,444 were renter households and 1,050 were owner households. This discrepancy is largely reflective of the disproportionate number of rental housing units in the City and the tendency of renter households to have lower incomes than owner households (see Table HTM-12 in Technical Memorandum). In order to understand the development parameters under which new affordable units can be produced, a review of affordable housing projects assisted by the Orange County Housing and Community Development Department through the 1999 and 2000 NOFA/RFP was conducted (see Table H-6). Nine projects were built during this cycle with a total of 841 units, with one of the projects located in the City of Tustin. The table shows that these projects ranged in size from 5 units to 220 units with densities from 14 to over 70 units per acre. Three of the nine projects had densities under 20 units per acre. The weighted average density is 34 units per acre. The level of subsidy required ranged from under $4,000 per unit up to $58,000 per unit with a weighted average of about $14,000 per unit. This analysis serves to demonstrate the feasibility of developing affordable apartment projects at densities in the 20 units/acre range. Table H-7 contains the results of a recent survey of market -rate apartment projects in Tustin. These projects are all located in the Tustin Ranch area and most are less than 10 years old. Average rents for studio and 1 -bedroom units were found to be within the Low- income category while 2- and 3 -bedroom units had average rents in the Moderate category. The densities of these projects ranged from 13 to 24 units per acre with a weighted average of 19 units per acre. This data supports the assumption that affordable market rate apartments can be provided with densities in the range of 24 units per acre. CITY OF TUSTIN HOUSING ELEMENT November 2002 13 Table H- 6 AFFORDABLE HOUSING PROJECT SUMMARY 1999 & 2000 REQUEST FOR PROPOSALS AND NOTICE OF FUNDING AVAILABILITY 1 Reflects County subsidy only. Other sources of financial subsidy may also have been provided. Non -Restricted Manager's Unit Source: Orange County Housing & Community Development Department, February 2001 CITY OF TUSTIN HOUSING ELEMENT November 2002 14 Density Income Subsidy Project Name Area Project Size units units/ac Category (per unit)i Villa Modena Apartments Orange 5 Units Total 16.67 5 -VL $58,620 Large Families 2-2 Bdrms & 3-3 Bdrms Stanton Accessible Apartments Stanton 10 Units Total 14.50 9 -VL $35,000 Special Needs Housing 10-1Bdrm 1-NRMU * Jackson Aisle Apartments Midway City 30 Units Total 71.43 30 -VL $24,808 Special Needs Housing 29 Efficiencies & 1-1 Bdrm Solara Court Apartments Anaheim 132 Units Total 35.68 131 -VL $6,079 Senior Housing 107-1Bdrm & 24-2 Bdrms 1-NRMU * Lincoln Avenue Apartments Anaheim 82 Units Total 47.93 81 -VL $9,765 Senior Apartment 82-1 Bdrm 1-NRMU * Heritage Place at Tustin Tustin 54 Units Total 29.67 49 -VL $10,035 Senior Housing 43-1Bdrm & 11-2 Bdrms 4-1,;1-NRMU* Talega Jamboree San Clemente 186 Units Total 18.60 51-1,; 74 -VL $17,672 Large Families 93-2 Bdrms & 93-3 Bdrms 60 -XL Vintage Shores San Clemente 122 Units Total 27.12 24 -VL $3,874 Senior Housing 80-1Bdrm & 42-2 Bdrms 98-L Ladera Ranch II Mission Viejo 220 Units Total 42.89 44 -VL $20,000 Large Families Totals 841 units Weighted 60 Ex. Low Weighted avg: 34.3 448 VL; 153 L avg: $13,900 180 NR 1 Reflects County subsidy only. Other sources of financial subsidy may also have been provided. Non -Restricted Manager's Unit Source: Orange County Housing & Community Development Department, February 2001 CITY OF TUSTIN HOUSING ELEMENT November 2002 14 Table H- 7 RENTAL MARKET SUMMARY 2001 CITY OF TUSTIN HOUSING ELEMENT November 2002 15 Project Allowed Rent Name of Year Total Density/ Zoning Density/ Project Address Built Units acre District acre Studio 1-Bd 2-Bd 3-Bd Rancho 13408 Heritage Way Maderas Tustin Ranch 1988 266 18.26 PCR 25 $1,070 $1,180 $1,390 - Rancho Santa 2480 Irvine Boulevard $1,585- Fe Tustin Ranch 1997 316 17.02 PCR 18 _ _ $1,980 _ Rancho Alisal 13800 Parkcenter Ln $1,170- $1,360- Tustin Ranch 1988 356 13.08 PCR 25 - $1,190 $1,380 $1,690 2955 Champion Way Sierra Vista Tustin Ranch 1991 306 23.89 PCR 25 $1,050 $1,350 $1,550 - Rancho 13211 Myford Road Mariposa Tustin Ranch 1991 238 23.80 PCR 25 $975 $1,130 $1,320 Rancho 100 Robinson Drive $1,280- $1,460- MontereyTustin Ranch 1996 436 24.18 PCR 25 - $1,320 $1,565 _ 13202 Myford Road Rancho Tierra Tustin Ranch n.a. 252 16.21 PCR 25 - - $1,325 $1,750 Averages $1,032 $1,231 $1,492 $1,720 Income Category Low Low Mod Mod CITY OF TUSTIN HOUSING ELEMENT November 2002 15 Affordability Gap Analysis: In addition to information related to Housing Constraints provided in the City's Housing Element Technical Memorandum, a Comprehensive Housing Affordability Strategy has been prepared. The report contains a detailed affordability gap analysis to illustrate the "gap" between the cost of developing housing for rent and ownership and what households at a variety of income levels can afford to pay toward their housing expenses. A Summary of Renter and Owner Affordability Gaps for certain prototypical unit types and incomes are provided as Appendix "13.6" Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances and may require specific accommodation or assistance to meet their housing needs. Included as special needs groups are the elderly, disabled, female -headed households, large families, and homeless. With the closure of MCAS -Tustin, military personnel are no longer covered as a special needs group. Additionally, there are no known "farmworkers" residing in Tustin and, therefore, this group is not discussed. Elderly: The special needs of many elderly households result from lower fixed incomes, physical disabilities, and dependence needs. In 1990, 3,843 persons or 7.6 percent of the total population in Tustin were 65 years of age or older. In 1990, there were 2,265 elderly households in Tustin and owner households represented the majority at 70 percent (1,596 households). According to California State University at Fullerton s Center for Demographic Research Center (CDR), there was a slight increase in the elderly population in 1997 at 5,214 or 7.9 percent of the total population (See Technical Memorandum Table HTM-2). As noted in the Table HTM-11 of the Technical Memorandum, nearly one-quarter of the elderly earn an annual income of less than $15,000 and 40 percent earn less than $25,000 annually. Thus, this population needs housing that is affordable and located in close proximity to public services and transportation. 6 Summary based on data contained in Comprehensive Housing Affordability Strategy, 2000-2010. CITY OF TUSTIN HOUSING ELEMENT November 2002 16 Disabled: Physical disabilities can hinder access to housing units of traditional design and potentially limit the ability to earn adequate income. According to the 1990 Census, there were 2,162 disabled people in the City. The disabled community, as defined by the California Department of Rehabilitation California Disability Survey, includes four classifications of disabilities. The discussion, analysis, classifications, and percentages of the total disabled population can be found in the Technical Memorandum page 17 and Table HTM-13. Special housing needs of disabled individuals include wheelchair accessibility, railings, and special construction for interior living spaces. The Housing Element sets forth policies to encourage the development of disabled -accessible housing (see policies 1.10, 1.13, 1.15 and programs 1.9 and 1.21). Large Families: A family household containing five or more persons, as defined by the Census, is considered a large family. 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 1990 Census, 2,033 family households, or 11 percent of all households, had five or more persons. 1999 data from National Decision Systems shows 3,095 large households, representing 13.6 percent of total City households (see Housing Element Technical Memorandum Table HTM-14) . 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 1990 Census, the City of Tustin had 1,178 female -headed households with children less than 18 years of age. The Homeless: Measuring the extent of the homeless population specifically in Tustin remains a challenge for community leaders. To complicate the challenge of meeting homeless persons' needs, the issue of homelessness is considered regional in nature. Nomadic tendencies of homeless persons make it difficult to assess the population accurately on a citywide basis. Nonetheless, CITY OF TUSTIN HOUSING ELEMENT November 2002 17 homelessness must be addressed on a countywide basis in conjunction with cities and local non-profit organizations. According to 1999 studies prepared by the Orange County Department of Housing and Community Development (OCH/ CD), it is estimated that there are 14,000 homeless persons in the County on any given night. Two-thirds of the County's homeless population includes families with children. OCH/ CD also reported that within the homeless population there are sub -populations (See Technical Memorandum Table HTM-15). City of Tustin Police Department reports and windshield surveys have shown that there are no established areas where homeless persons congregate in the City, and that most persons migrate through Tustin rather than stay for extended periods of time. The City's Police Department7 estimates that there are currently 10-12 homeless persons residing in the City at any given time. Within the City, there are a variety of non-profit services that provide direct housing and other services to homeless persons. These include a transitional housing facility (Sheepfold), temporary housing for teenagers in crisis (Laurel House) and a feeding program affiliated with the United Way (Feedback Foundation). Sheepfold and Laurel House are typically located in R-1 districts and are permitted by right under State Law related to Community Care Facilities. The City's current code related to homeless, transitional housing, boarding houses are as follows: • A group housing arrangement (where less than six (6) residents) in a single family home is not subject to City permits (consistent with State Law). A group housing arrangement of over six (6) residents is classified as a boarding house. • The R-3 and R4 districts would allow for boarding houses with a Conditional Use Permit (CUP). A group home serving clients in a multi -family dwelling unit would fall under this definition. • The anticipated facilities at the MCAS Tustin Specific Plan will permit transitional and emergency shelters by right. A number of local churches in Tustin also provide services to the homeless including St. Cecilia's, Redhill Lutheran, Tustin 7 Officer G. Vallevienie, Tustin Police Department, 2000. CITY OF TUSTIN HOUSING ELEMENT November 2002 18 Presbyterian Church and Aldersgate. A list of services provided by these organizations is provided in Table H-8. Table H- 8 EMERGENCY SHELTER,/TRANSITIONAL HOUSING FACILITIES 1999 CITY OF TUSTIN Facility Services Provided Provides shelter, food, clothing, job -training, and job - Sheepfold referral services to women with children. Temporary housing for teenagers in crisis. The facility also provides food, informal counseling, and access to medical Laurel House care and clothing. St. Cecilia's Distributes food supply to needy populations. Operates emergency food program where a person can Redhill Lutheran receive food supply 3 times a year. Collects food supplies and distributes the food to various Tustin Presbyterian organizations involved in providing homeless services. Aldersgate Refers interested persons to Ecumenical Services Alliance in Santa Ana. Source: City of Tustin Consolidated flan 2000-2UU5 A significant portion of the Marine Corps Air Station (MCAS) 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 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 Local Redevelopment Authority 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. CITY OF TUSTIN HOUSING ELEMENT November 2002 19 A Homeless Assistance Plan has been established for MCAS, Tustin that is consistent with the continuum of care model embodied in the Consolidated Plans for the Cities of Tustin and neighboring Irvine. The fundamental components of the continuum of care system to be implemented with the MCAS, Tustin Reuse Plan would: Provide emergency shelter beds and intake assessment Offer transitional housing and services Provide opportunities for permanent affordable housing by the private sector. In the MCAS Reuse Plan, four homeless service providers, including the Salvation Army, Orange Coast Interfaith Shelter, Families Forward, and DOVE Housing have been approved to operate 50 family units at the former base. The Orange County Rescue Mission will also operate a 192 -unit transitional/ emergency shelter. Numerous other agencies provide shelter and other services to the homeless in the nearby cities of Santa Ana, Irvine, and Orange. The Orange County Homeless Issues Task Force, a non-profit homeless advocacy organization, maintains a list of these and other homeless services in Orange County. Additional discussion regarding land use regulations that apply to facilities serving the homeless is found in the Housing Constraints section of this document and in the Technical Memorandum. PRESERVATION OF UNITS AT RISK OF CONVERSION Tustin has one project that contains units at risk of converting to unrestricted market rate during the 2000-2005 planning period. Tustin Gardens is a 101 -unit Section 221(D)(4) project with a Section 8 contract for 100 units that was due to expire on July 13, 2000. Projects financed under the Section 221(D)(4) market rate program alone have no binding income use restrictions. Current provisions under the law allow for the existing project to opt out of contracts or for HUD to terminate such contracts. The project owners of Tustin Gardens have indicated that they intend to continue or to accept the conversion of the project to individual Section 8 certificates (household by household income qualifying criteria). CITY OF TUSTIN HOUSING ELEMENT November 2002 20 Table H-9 is an inventory of all multi -family rental units assisted under federal, state, and/or local programs, including HUD programs, .state and local bond programs, redevelopment programs, and local in -lieu fee, inclusionary, density bonus, or direct assistance programs. The inventory includes all units that are eligible to convert to non -lower income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. Various restrictions and incentives affect the likelihood that at risk units will convert to other uses. Congress passed the Low Income Housing and Residential Homeownership Act (LIHPRHA) in 1991. This measure assured residents that their homes would be preserved for their remaining useful lives while owners were assured of fair - market compensation. However, modifications to the Act in 1996 restored the owners' right to prepayment, under the previsions that the owner would be encouraged to sell the property to resident endorsed or other non-profit organizations. Three different alternatives have been evaluated in addressing "at risk" units during the 2000-2005 planning period, including replacement of existing units by means of newly constructed units, acquiring and rehabilitating units, and local rental subsidy assistance. Replacement: Replacement of any lost "assisted" units at Tustin Gardens would cost $125,883 per unit. Applying this figure to the Tustin Gardens project, replacing all assisted units would cost approximately $12,588,300. Acquisition: Alternatively, should these "at risk" units be acquired, the per-unit cost would be less at $100,777 per unit provided rehabilitation was required. Accordingly, the acquisition of all units at Tustin Gardens would cost approximately $10,077,700. CITY OF TUSTIN HOUSING ELEMENT November 2002 21 Table H- 9 ASSISTED HOUSING INVENTORY CITY OF TUSTIN HOUSING ELEMENT November 2002 22 Type/Length of Earliest Tenant Owner: Affordability Potential Type Date Project Name, Name, Controls Conver- (i.e., Built Address Address, Type(s) of Gov't (including sion # of Elderly, Bedroom (if Condition incl. zip) Tel. # Assistance Sec. 8) Dates Units Family) Mix known if known .. ... .. ..<,. ....... , ..,EE .... . ' � . .: _ ,a ............. .... E -+RAL - . M. ,. ...,.. .-:<... ,: ..,..<. ..:::, x _k, a:,.. ... •..e 3...,<.�..,. s • tw � r. < a<.• , x...... , a,... . a:w,,, ,.;s .. .: x .s�, , »,.......i,a ,,.... „ -: ,. ...,.`. .,..r.:. ,..>wzvm t.a. >, ... '%',. ,.7:... ,i , _ ♦ a 2.. y. `€ � X. � � Tustin Gardens Goldrich & Kest HUD 221(D)(4) -- — 101 Elderly 1011-br 1979 Good E. 6th 5150 Overland Section 8 7/13/00 100 Tustin, CA 92680 Ave. 213-204-2050 Culver City, CA 90230 Mom Rancho Alisal The Irvine Co. California Statewide Income May 15, 69 Family 81-br 1987 Very good 13800 Parkcenter 550 Irvine Ctr. Dr. Community restricted. No 2025 49 2-br Tustin, CA 92680 P.O. Box 1 Development rent restrictions 12 3-br Newport Beach, Authority 1998-A Bond CA Financing 92660-9959 Rancho Maderas The Irvine Co. California Statewide Income May 15, 54 Family 101-br 1988 Very good 13408 Heritage Way 550 Irvine Ctr. Dr. Community restricted. No 2025 44 2-br Tustin, CA 92680 P.O. Box 1 Development rent restrictions 730-3700 Newport Beach, Authority 1998-A Bond CA Financing 92660-9959 Rancho Tierra The Irvine Co. California Statewide Income May 15, 51 Family 7 3-br 1988 Very good 13202 Myford Rd. 550 Irvine Ctr. Dr. Community restricted. No 2025 44 2-br Tustin, CA 92680 P.O. Box 1 Development rent restrictions 730-5868 Newport Beach, Authority 1998-A Bond CA Financing 92660-9959 a.. ...r ..� ._..:-._. . ' .ti':xra>;. ... .:....p, , K55.. ..y` ..M •-. N"na .\-S . ...' w, - ri•^.i>. .,Y .. a., c ,i .,.... ,.. . »Fn.. . t>ti o..�. ..... .t# : > ,. ...,..;..,:. r...,. - .p,. .. %`>-___.x�'xy-. .110 Mill. ,. k .'...343 �- �-- •::;<,>.;<ttl r - y 21 Family 21-3br 1995 Very Good Tustin Grove Tract 14934 Redevelopment DDA1 N/A Agency Ambrose Lane Tract 15707 Redevelopment DDA1 N/A 8 Family 8-3br 2000 Excellent Agency CITY OF TUSTIN HOUSING ELEMENT November 2002 22 Table H- 9 ASSISTED HOUSING INVENTORY N/A - Not available 1DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT November 2002 23 Type/Length of Earliest Tenant Owner: Affordability Potential Type Date Project Name, Name, Controls Conver- (i.e., Built Address Address, Type(s) of Gov't (including sion # of Elderly, Bedroom (if Condition incl. zip) Tel. # Assistance Sec. 8) Dates Units Famil Mix known if known Orange Gardens Westchester Park, Redevelopment Income 5/2028 150 Family 17-1br N/A Good 1602 Nisson Rd. L.P. Agency restricted. No 93-2br Tustin, CA 92780 rent restrictions 40-3br Hampton Square Fairfield Redevelopment Income 10/2011 210 Family 124-1br 1969 Good 16331 McFadden Ave. Residential Corp. Agency restricted. No 86-2br Tustin, CA 92780 rent restrictions Flanders Pointe Tustin Affordable Redevelopment Income 10/2029 49 Family 41-2br 1966 Good 15520 Tustin Village Housing Corp. Agency restricted. No 7-2-br Way rent restrictions Tustin, CA 92780 713 TOTAL N/A - Not available 1DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT November 2002 23 Rental Subsidy: An option for preservation of at-risk units assisted by either project based Section 8 funds and/or bond financing would be a conversion of the project to a tenant based Section 8 assistance program or alternatively a local .rental subsidy to the owner to benefit maintaining affordable rent levels for residents. Rent subsidies can also be sh'uctured to mirror the tenant-based Section 8 voucher or certificate programs. These options could be used to retain the affordable status of the units, by providing assistance for residents when their affordable units convert to market rate. Rent subsidies using state, local (Redevelopment Agency or City, the use- of HOME funds, or other funding sources) can be used to maintain the affordability of these at-risk units. The cost of providing subsidies for all 100 at-risk units at Tustin Gardens to maintain subsidized rents assumes that none of the at- risk units are preserved. The cost of providing a rental subsidy for the at-risk units is $10,700 per month, or $128,400 per year, as shown in Table HTM-30 of the Technical memorandum document. Contract Extension: Tusfin Gardens is the only project based Section 8 subsidized project at-risk of losing affordabflity restrictions during the Housing Element planning period. However, it appears unlikely that the affordability of these units will be threatened based on the determination that project based Section 8 contracts can be renewed on an annual basis. In fact, the owner has indicated in writing their agreement to convert the project to a tenant-based Section 8 assistance program. Programs for Preservation of At-Risk Units: The cost of acquiring and preserving the at-risk units is less than replacing the units with new construction. As discussed earlier the total cost of replacing the project is estimated to be $12,588,300, whereas acquiring the Tustin Gardens project would cost a total of $10,077,700 (see Table HTM-28 and accompanying text). If the "Affordable Gap" were subsidized, the required commitment of resources for preserving the Tustin Gardens units "at risk" by providing rental subsidies is much lower, at $10,700 monthly or $128,400 annually. The City monitors at risk housing units to ensure that those units will not be lost as Low-income housing. The City will subsidize units and/or work with nonprofits in the community to explore possible new construction of replacement housing by nonprofits or acquisition of existing buildings with at risk units by nonprofit CITY OF TUSTIN HOUSING ELEMENT 24 November 2002 organizations. The City will make efforts to preserve units "at risk" at Tustin Gardens. Specific actions that the City will take to protect (or replace) at risk units are identified in the Housing Element Implementation Program. SUMMARY OF HOUSING ISSUES Housing is a fundamental component of land use. within a community necessary to support the resident population. Obtaining affordable housing has become a problem for persons of all income groups in California. The following Table H-10 presents an overview of households in the City with special housing needs or problems with their existing housing, such as overpayment or overcrowded conditions. The following text highlights the issues relevant to the City of Tustin, which are addressed by the goals, policies and implementation plans. Table H- 10 SUMMARY OF EXISTING HOUSING NEEDS CITY OF TUSTIN 1998-2005 Growth Needs Very Low (Units) t~ow (units) Moderate (Units) Above-Moderate (Units) I694 489 778 1,337 13,298' TOTAL Overcrowding Renter Owner 2,060 330 2,390 TOTAL Special Needs Group 2 Elderly Persons ] 3,843 Disabled Persons ] 2,162 Large Households2 3,095 Female-Headed Households 1,178 with Children under 18 years Overpaying Households ~ Renter - Total 5,518 Renter - <80% MFI 4,444 Owner - Total 3051 Owner - <80% MFI 1,050 Total 8,569 ~ Regional Housing Needs Assessment, City of Tustin, 1999. 2 Households containing 5 or more people. 3 See discussion on Tustin concerns regarding need methodology employed by SCAG. Sources: 1990 Census. * The OCCOG recommended: 505 units for the Very Low Income households, 355 units for the Low Income households, 566 units for the Moderate Income households, and 973 for the Above Moderate Income households for a total of 2~399 new construction needs. CITY OF TUSTIN HOUSING ELEMENT 25 November 2002 Overpayment. 70 percent of the City's lower income house- holds (households which earn less than 80 percent of the County median) are currently overpaying for housing (see Table HTM-12). Overcrowding. Household overcrowding has increased over the past decade as individuals and families "double up" to save on housing costs. Over 15 percent of lower income households currently experience overcrowded conditions (see Table HTM-8). Housing Growth Needs. For the 1998-2005 planning period, SCAG identifies a housing growth need of 3,298 dwelling units in Tustin. These units are allocated among the following income categories: 1,337 above-moderate income units; 778 moderate-income units; 489 low-income units; and 694 very- low income units (see Table H-10). On July 26, 1999, the City of Tustin appealed the draft Construction Need/Vacancy Need methodology to the Orange County Council of Governments (Delegate Sub- Region) through the Alternative Dispute Resolution Process. The Alternative Dispute Resolution Board recommended approval of the City's appeal to the Orange County Council of Governments (OCCOG)'Board. On August 19, 1999, the OCCOG adopted Resolution No. 9%03 approving the RHNA for the Orange County sub-region. Included in that action was the recommendation that the Regional Council (SCAG) adjust the Vacancy rates for MCAS, Tustin because the Regional Transportation Plan (RTP) and the 1990 Census data vacancy rates did not accurately reflect the base closure. The OCCOG recommended as follows: 505 units for the Very Low Income households,. 355 units for the Low Income households, 566 units for the Moderate Income households, and 973 for the Above Moderate Income households for a total of 2,399 units new construction needs. On December 9, 1999 and June 22, 2000, the City of Tustin appealed the RHNA Vacancy Need numbers that were used to calculate total construction needs for the City of Tustin. The appeal was based on a unique situation in that 985 housing units located at the based were not Properly counted as vacant housing units by the Department of Finance and are not reflected in the 1990 census credited vacancy CITY OF TUSTIN HOUSING ELEMENT 26 November 2002 methodology. The SCAG Community, Economic, and Human Development (CEHD) Committee rejected both appeals despite the recommendation by the Orange County Council of Governments. Accordingly, while the City has prepared this Housing Element using the figures determined by SCAG, the City respectfully maintains its concern over the RHNA Vacancy Need methodology. Large Families. 13.6 percent of City's households contain 5 more persons in the households. The average household size in the City increased from 2.7 in 1990 to 2.92, largely due to changes in the ethnic composition. This indicates a potential need for larger housing units to accommodate these families (see Table HTM-14). Affordability Gap. Based upon available information on rental rates in the City, it is difficult to find rental housing that is large enough and affordable for large, low-income families (see Table HTM-24 and Table HTM-25). Elderly. As the City's population ages, the number of elderly persons will increase. This underscores an increasing need to address the special housing needs of the elderly (see Table HTM-2). Disabled. Disabled individuals have particular housing needs relating to access and adaptability. Female-Headed Parent Households. Female-headed households make up an increasing percentage of the City's population. Many of these households have incomes below the poverty level and have special housing needs such as access to childcare services. Homeless. Growing numbers of homeless persons in Southern California have created particular housing and social service needs. The closure of MCAS Tustin provides an opportunity for additional housing supply in the City including accommodation of the needs of the homeless and the need for affordable housing (see Table HTM-15). In addition, a group housing arrangement (with less than six (6) residents) in a single family home is not subject to a CITY OF TUSTIN HOUSING ELEMENT 27 November 2002 Conditional Use Permit (consistent with State Law). A group housing arrangement of over six (6) residents is classified as a boarding house. The R-3 and R-4 districts wottld allow for boarding houses with a Conditional Use Permit (CUP). First Time Homebuyers. High housing costs have put home ownership beyond the reach of many potential first-time homebuyers. Governmental Constraints. Governmental regulations, such as land use controls, fees, and processing procedures, can act as constraints to the maintenance and production of housing. Units at Risk of Conversion to Market Rate. By State law, the City must identify and develop programs and policies to address affordable housing units that are at risk of converting to market rate housing. During the 2000-2005 planning period, the City of Tustin faces the potential conversion of 100 low-income units (see Table HTM-27). Tenure. The City has a high proportion of renter-occupied housing as compared to other jurisdictions in Orange County. In 1999, 59.3 percent of the City's units were renter-occupied, compared to 40.7 percent renter occupied units countywide. Promotion of home ownership opportunities in the City may be necessary to maintain a balanced community (see Table HTM-20). Housing Stock Condition. Over 64 percent of the City's housing stock is 30 years old or older - the age at which housing typically begins to require major repairs. In addition, the lack of adequately sized affordable housing can lead to overcrowding and in turn, deteriorated housing conditions. Maintenance and improvement of existing housing conditions over the long term will require ongoing maintenance of existing units, rehabilitation or replacement of substandard housing and programs to maintain neighborhood quality (see Table HTM-21). Historic Resources. Older neighborhoods in Tustin contain several historic residences that should be preserved as part of the community's heritage. These historic homes were identified through an inventory of historic buildings in 1990. CITY OF TUSTIN HOUSING ELEMENT 28 November 2002 Target Neighborhoods. A large portion of the City's lower income housing is concentrated in the southwest neighborhoods. Targeted programs such as graffiti removal, proactive code-enforcement, loan and grant housing rehabilitation program, removal of abandoned vehicles, increased police presence, removal/trimming overgrown trees in public right-of-way, various physical improvements for street widening, and street lighting and alley improvements have been implemented. Energy Conservation. Due to its climate, the City can take advantage of solar energy to reduce reliance on non- renewable energy supplies. HOUSING CONSTRAINTS Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Market, governmental, infrastructure, and environmental constraints to housing development in Tusiin are summarized below and discussed in greater detail in the Housing Element Technical Memorandum. Market Constraints The high cost of renting or buying adequate housing is a primary ongoing constraint. High construction costs, land costs and market financing constraints are contributing to increases in the cost of affordable housing. Construction Costs: The 2000-2005 Tustin Consolidated Plan reports that the single largest cost associated with building a new house is the cost of building materials, usually comprising between 40 to 50 percent of the sales price of a home. These costs are influenced by many factors such as the cost of labor, building materials, and site preparation. The International Conference of Building Officials (ICBO) estimates that the cost of residential wood frame construction averages $61.10 per square foot and reaches as high as $83.90 per square foot. Therefore, the costs attributed to construction alone for a typical 2,200 square foot, wood frame home would average $134,420. CfrY OF TUSTIN HOUSING ELEMENT 29 November 2002 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. Land: The scarcity of land within the developed areas of the City and the price of land on the fringes are constraints adding to the cost of housing and pricing housing out of the reach of low- to moderate- income families. Financing: Interest rates can have an impact on housing costs. Some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing.. The ability of lending institutions to raise rates to adjust for inflation will cause eXisting households to overextend themselves financially, and create situations where high financing costs constrain the housing market. An additional obstacle for the first-time homebuyer is the minimum down-payment required by lending institutions. Even if Tustin homebuyers are able to provide a 3 percent down- payment and obtain an 8.5 percent 30-year loan (loan rate for FHA or VA guaranteed loans for June 2000), monthly mortgage payments on median priced single-family detached homes in the City place such homes out of the reach of moderate and lower-income households in the City. At a 8.5 percent interest rate, monthly mortgage payments on median priced condominiums and townhouses can place such units out of reach of Tustin's low and very low income households (see Tables HTM-23 and HTM-25). The greatest impediment to homeownership, however, is credit worthiness. According to the Federal Housing Authority, lenders consider a person's debt-to-income ratio, cash available for downpayment, and credit history, when determining a maximum loan amount. Many financial institutions are willing to significantly decrease downpayment requirements and increase loan amounts to persons with good credit rating. CITY OF TUSTIN HOUSING ELEMENT 30 November 2002 Persons with poor credit ratings may be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. Poor credit rating can be especially damaging to lower-income residents, who have fewer financial resources with which to qualify for a loan. The FHA is generally more flexible than conventional lenders in its qualifying guidelines and allows many residents to re-establish a good credit history. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to report lending activity by census tract. Analysis of available HMDA reports does not indicate documented cases of underserved lower income census tracts in the City. Profit, Marketing and Overhead: Developer profits generally comprise 8 to 12 percent of the selling price of single-family homes and slightly lower for condomim'ums. However, in communities like Tustin where the market demand for housing is high in comparison to the available housing supply, developers are able. to command higher prices and may realize greater margins of profit. Marketing and overhead costs also add to the price of homes. Governmental Constraints Housing affordability is affected by factors in the private and public sectors. Actions by the City can have an impact on the price and availability of housing. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Land Use Controls: In efforts to protect the public's health, safety, and welfare, government agencies may place administrative constraints on growth through the adoption and implementation of land use plans and ordinances. The General Plan may restrict growth if only limited areas are set aside for residential land uses, and if higher residential densities are not accommodated. The zoning ordinance may impose further restrictions if development standards are too rigid, or if zoning designations do not conform to existing land uses. Tustin's existing zoning ordinance allows for a range of residential densities from a maximum effective density of approximately 4.35 CITY OF TUSTIN HOUSING ELEMENT 31 November 2002 units per net acre in the E-4 Residential Estate District to 24.9 units per net acre in the R-3 Multiple Family Residential District and 10 units per net acre in the MHP Mobilehome Park District (see Table HTM-31). The Planned Community District has authorized residential subdivisions with single-family lots of 3,500-5,000 square feet, which significantly increases density potential. Within the Multi-Family Residential District (R-3), a 35 foot height limitation and 65 percent coverage precludes the development of high-rise housing projects. In the interest of protecting adjoining single-family lot owners, multifamily structures above 20 feet in height require a conditional use permit when the structures are within 150 feet of single-family residentially zoned lots. While these height limits may place some restrictions on housing development, these limits are designed to maintain compatibility of land use intensity and to ensure proper and effective transportation within the community and are commonly used by local governments as a development tool to further this ideal. The Land Use Element indicates that residential development that supports commercial uses may also be permitted in the City's Old Town Commercial area. A market analysis of the Old Town area prepared in conjunction with comprehensive 1994 General Plan Amendments, indicated that new multi-family residential development would be an important supporting use for the area's mixed-used commercial/retail development. As a result, the General Plan was amended to permit up to 291 additional residential units in the Old Town commercial area. To ensure compatibility of residential uses with the commercial area, the location, density, and building intensity standards for these residential units will be governed by planned community regulations or adoption of a specific plan. The East Tustin Specific Plan provides for single-family detached products to be developed at a variety of densities. The Low Density designation requires a minimum lot area of 5,000 square feet while the Medium-Low designation requires a minimum lot area of 3,000 square feet and densities not to exceed 5 and 10 units per acre respectively. The MCAS Tustin Specific Plan designation provides opportunities for development of a variety of residential products at varied density ranging up to 25 dwelling units per acre. The Final Joint EIS/EIR for the Disposal and Reuse of the MCAS-Tustin (hereafter referred to as CITY OF TUSTIN HOUSING ELEMENT 32 November 2002 Program EIS/EIR for MCAS-Tustin) for the reuse of the base identifies specifiC improvements needed to support residential development. The bufldout of the Reuse 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 project is as follows: CITY OF TUSTIN HOUSING ELEMENT 33 November 2002 Table H-11 Anticipated Development at MCAS -Tustin Land Uses Acreage By 2005 2006-2010 2011-2015 (gross) Low Density (1-7 DU/ acre) Planning Area 4 and 21 159.7 1,015 Medium Density (8-15 DU/ acre) Planning Area 5 51.7 621 Medium to High Density (16-25 DU/ acre) Planning Area 20 29.4 588 Golf Village Planning Area 15A and 15B • Low Density (1-7 DU/ acre) 48.5 272 • Medium Density (8-15DU/acre) 55.2 103 559 Community Core (16-25 DU/acre) Planing Area 8 35.6 891 Transitional/Emergency/Social Services' 9.1 Total 389.2 2,599 559 891 licescue mission iyl unit project, 5u urut transitional housing to be operated by various non -profits and 60 unit transitional housing to be operated by the County of Orange. Notes: All figures are estimates. Figures in text are rounded for discussion purposes. Source: Final Joint EIS/EIR for the Disposal and Reuse of MCAS -Tustin, WAS Tustin Specific Plan/Reuse Plan (City of Tustin 1996b) and Errata (City of Tustin 1998). CITY OF TUSTIN HOUSING ELEMENT November 2002 34 Future market demand and the complexity and liming of environmental cleanup efforts are additional factors influencing the schedule of development. Current litigation surrounding the development of the base may also delay the construction of housing 'Other than the MCAS Tustin area, a large proportion of the small amount of vacant and underutilized land is located within Redevelopment Project areas within the City or Old Town residential areas where infrastructure is available and no major improvements would be anticipated. Limited residential uses are also permitted in areas designated Public/Institutional provided the intended occupants are associated with the primary institutional uses. Additionally, homeless 'facilities are permitted by right in the MCAS Tustin Specific Plan and are allowed throughout the remainder of the City either as an outright use or with a conditional use permit depending on the number of residents in the project. Parking requirements in Tustin are generally two spaces per unit, with an additional requirement of one guest space per every four units in multi-family development. In response to State mandated requirements and local needs, the City has adopted ordinances allowing for the development of accessory rental units and density bonuses. Beyond local requirements, state law allows developers to increase the density of a residential development by at least 25 percent if 20 percent of the units are allocated for lower and moderate-income housing. One additional incentive or financial equivalent (such as modified development standards or waiver/reduction application or development fees) is granted to all residential development meeting the 20 percent density bonus requirement for Lower income housing. In response to state-mandated requirements and local needs, the City allows for second dwelling units. Second units serve to augment resources for senior housing and the needs of other segments of the population. Second dwelling units are permitted with a Conditional Use permit (CUP) in residentially zoned properties that are at least 12,000 square feet in size. A two-car garage is required. CITY OF TUSTIN HOUSING ELEMENT 35 November 2002 The City's land use regulatory mechanisms accommodate the development of housing at a range of densities and products and do not constrain the potential for new construction at densities suitable to meet the needs of all income ranges, although assistance may be required for units offered at prices affordable to lower income households. Fees and Improvements: Various fees and assessments are charged by the City and other outside agencies (e.g., school districts) to cover costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. These fees are assessed based on the concept of cost recovery for services provided. Tustin is urbanized with most of the necessary infrastructure, such as streets, sewer and water facilities in place. Nonetheless, site improvements can significantly add to the cost of producing housing. Cost-effective site planning or use of housing set-aside funds for those projects within redevelopment project areas can minimize site improvement costs. The Housing Element Technical Memorandum describes in detail required site improvements and provides a list of fees associated with development (Table HTM-33) Development fees are not considered a constraint to housing. However, fees do contribute to the total cost of development and impact the final purchase or rental price. Building Codes and Enforcement: The City of Tustin adopts the Uniform Construction Codes, as required by State law, which establish minimum construction standards as applied to residential buildings. The City's building codes are the minimum standards necessary to protect the public health, safety and welfare and ensure safe housing. Only local modifications to the codes are made which respond to local climatic or geographic conditions and clarify administrative procedures. Although not mandated to do so, the City has adopted the State Historical Code that relaxes building code requirements citywide for historic sh'uctures/buildings. Adoption of codes reduces rehabilitation costs. Local Processing and Permit Procedures: The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ulffmately manifested in the unit's selling price. CITY OF TUSTIN HOUSING ELEMENT 36 November 2002 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 Fire, Police, Public Works/Engineering, and Community Services. All projects are processed through plan review in the order of submission. The City has eliminated the potential increase in financing costs caused by a delay in permit processing by assigning priority to the plan review and permit issuance for low-income housing projects. If a complete application is submitted, all Design Review Committee members and plan checking departments simultaneously review the plans. This process provides for a "one-stop" processing system. For projects of significant benefit to the low-income community, costs can be waived by the City Council or the use of redevelopment set-aside funds can reduce or eliminate these costs to the developer. Workload: Another governmental constraint is the number of staff and amount of staff time available for processing development projects. Since the workload is determined by outside and uncontrolled forces (economy and market for housing and availability of general fund revenue), a shortage of staff time may occur which could lead to increased processing time for development projects. HOUSING OPPORTUNITIES Table H-i2 shows the existing and potential dwelling units permitted under each General Plan land use category, as well as the potential net increase within each category. Based on the City's Land Use Plan, Tustin has a residential holding capacity of approximately 29,793 dwelling units, providing for a potential increase of 4,907 units over the current total of 24,886 units. The Land Use Plan provides for a mix of unit types and densities, including low-density single-family homes, medium density homes, higher density homes, and mixed- use projects that allow for a combination of commercial and residential uses. ClTY OF TUSTIN HOUSING ELEMENT 37 November 2002 A large portion of future residential development in the City of Tustin will take place in the MCAS Tustin Reuse Specific Plan area. The other large Specific Plan community in Tustin, Tustin Ranch (the East Tustin Specific Plan) has been almost built out with little development potential remaining. Between 1998 and 2000, 1,378 units were constructed in the City of Tustin. A total of 874 Moderate- Income and 464 Above Moderate-Income units were built in Tustin Ranch; 8 Moderate-Income and 30 Above Moderate-Income units were built in the Warmington project (Town Center Redevelopment Project Area); and 2 Moderate-income units were constructed in Mountain View. With the exception of the Warmington project (8 restricted units), none of the units are deed restricted. Since 1,378 units were built between 1998 and 2000, they are located under the "Existing DU's' column in Table H-12. These units, however, are reflected in the Quantified Objectives for 1998-2005 (see Table H-17). TABLE H- 12 LAND INVENTORY AND RESIDENTIAL DEVELOPMENT POTENTIAL 2000-2005 Gross (1) Acres Effective Land Use Existing Under- General Plan Cate~or~ DUS Utilized Build-out Low Density Residential 2,844 0 2848 (1-7 du/ac) · Medium Density Residential 371 0 412 (8-15 du/ac) High Density Residential (15- 10,049 14.66 10,629 25 du/ac) Mobile Home Park 702 0 702 0-10 au/ac) MCAS Tustin Specific Plan 389.2 0 4,049 PC Low Density Residential 2,874 378.95 0 3,107 PC Medium Density 3,690 0 0 3,690 Residential PC Hi Residential 4,356 0 0 4,356 TOTAL 24,886 778.94 14.66 29,793 (1) Number of existing housing units in the City of Tustin based on Tustin General Plan Land Use Element, 2001 - Table LU-3 "Future Land Use Density/Intensity and Population Capacity of The Land Use Plan." DUs = dwelling units (2) All of these potential dwelling units are in East Tustin. Densities used are from Table LU-2 for East Tustin (Low = 4.485, Medium = 11.834, High =17.39). Potential dwelling units represent built out capacity for Tustin Ranch. (3) Existing units at MCAS Tustin have been vacated as of July 1999 and units may be uninhabitable. (4) Includes 192 units of emergency housing and 60 units of transitional family housing. Source: Tustin General Plan Land Use Element, 2001. CiTY OF TUSTIN HOUSING ELEMENT 38 November 2002 Table H-13 illustrates Tustin's progress in achieving RHNA construction needs for the 1998-2005 planning period. As of 2000, the City has satisfied approximately 42 percent of its total RHNA Construction Need. Table H- 13 PROGRESS TOWARD RHNA CONSTRUCTION NEEDS 1998-2000 CITY OF TUSTIN RHNA Net RHNA Construction Construction Need Units Added Need Income Cate[~ory 1998-2005 1998-2000 2000-2005 Very-Low 694 0 (0%) 694 Low 489 0 (0%) 489 Moderate 778 884 (114%) (106) Above Moderate 1,337 494 (37%) 843 Total 3,298 1,378 (42%) 1,920 Source: Ci~ of Tustin. Table H-14 illustrates the residential development potential of the vacant and underutilized land inventory in the City of Tusfin. The MCAS Tustin site presents the City with 389.2 acres suited for residential development that could accommodate an additional 4,049 units. Approximately eighty-three (83) percent of the 4,907 potential new units in Tustin will be provided at the MCAS Tustin site. The MCAS Tustin site is proposed to be implemented through both the adoption of a Specific Plan by the City and the adoption of a Redevelopment Project Area by Fiscal Year 2002-03. Based on State Redevelopment Law and the proposed Specific Plan requirements, at least 15 percent of the units (607 units) constructed at the MCAS Tustin site will be affordable to Very-Low, Low, and Moderate- income households, of which at least 6 percent or 243 units must be affordable to Very Low-income households. The remaining 364 units would be distributed among the Low and Moderate income households by utilizing RHNA Low and Moderate income percentages (140 units for Low Income households and 224 Moderate income households). In addition to these inclusionary obligations, the acreage and densities permitted by the MCAS-TusI~ Reuse Plan would create 252 additional for Very Low-income households (192 transitional housing units and 60 social services housing units). CITY OF TUSTIN HOUSING ELEMENT 39 November 2002 Aside from MCAS Tustin, additional sites'are located either within existing Redevelopment project areas or in Old Town Tustin area. Sites that are located within the Redevelopment Project area subject to Redevelopment Law as well. As a means to ensure affordability and the use of housing set-aside funds, the City and its Redevelopment Agency will require developers to provide at least 15 percent of all units constructed or rehabilitated at prices affordable to Very Low, Low, and Moderate Income households consistent with State Redevelopment Law affordable housing requirements. The City's Redevelopment Agency aggressively negotiates affordable housing units with individual potential project. An example of recently approved infill site is the development of a fifty-four (54) unit affordable senior housing project on a 1.76 acre site. The project applied a twenty-five (25) percent density bonus above the City's maximum allowable density. In addition, the City entered into a Disposition and Developer Agreement with the developer to issue loans not to exceed $600,000. The loans are secured by loan agreements, promissory notes and 'deeds of trust, along with Regulatory Agreement and Declaration of Restrictive Covenants to be recorded against the property for a period of not less than 55 years. The project is 100 percent affordable to very low and low income seniors. The remaining capacity in Old Town Tustin will be achieved through recycling of underutilized and vacant infill sites (see Figure 1). According to the City's Land Use Element, the sites in Old Town Tustin area are able to accommodate an overall population range for residential use of 2-54 persons per acres. The Land Use Element further identifies the potential development of dwelling units in the Old Town Commercial area, which will be facilitated by the proposed adoption of zoning regulations and development standards which will allow mixed-use development (see Program 1.21 of Table H-22 Housing Element Programs). This development potential is supported by the market analysis of the Old Town area. 8 See Table LU-3 - "Future Land Use Density/Intensity and Population Capacity of the Land Use Plan" in the City of Tustin General Plan Land Use Element, January 16, 2001. CITY OF TUSTIN HOUSING ELEMENT 40 November 2002 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 lots to allow for higher density. HCD guidelines indicate that housing units constructed at densities of 25 dwelling unit per acre are considered affordable to Very Low- income households. As demonstrates in Table H-14, there are a total of 60.72 acres of land (38.5 acres from MCAS Tustin [see Table H-11], 7.56 acres vacant land, and 14.66 underutilized land) with High Density residential development potential. These sites could potential be developed with approximately 1,518 units. This demonstrates that the City has sufficient amount of land available to accommodate the Very Low and Low income residential developments to meet the remaining needs through the 2005 period. CITY OF TUSTI~V HOUSING ELEMENT 41 November 2002 TABLE H-14 VACANT AND UNDERUTILIZED LAND WITH RESIDENTIAL DEVELOPMENT POTENTIAL Vacant Land Underutilized Land Above- Above - Y -Low Low Moderate Moderate Total Very- ow Low Moderate Moderate Total Land Use Category' AC I DU AC I DU AC I DU AC I DU AC I DU I AC I DU AC I DU AC I DU AC I DU AC I DU Low Density Res. 1 1 2 0 1.56 4 (1-7 du/ac) Medium Density Res. (8-15 du/ac) 15 10 16 0 2.67 41 High Density Res. 41 101 46 0 7.56 188 60 185 147 0 14.66 392 15-25 du/ac Mobile Home Park 1-10 du/ac Subtotal 157 1 112 1 164 1 10 110.79 1233 1 160 1 1185 1 1147 1 0 1 14.66 1392 Low Density Res. 208.2 1,287 1-7 du/ac Medium Density Res.77 106.9 1,283 8-15 du/ac Medium -High Density Res. 74.13 1,479 16-25 du/ac Subtotal 389.2 4,049 PC Low Density Res. 379 233 379 233 PC Med. Density Res. PC High Density Res. Subtotal 379 233 379 233 'FOTAL4 5 7 112 64 233 778.94 1 Correlation of land use densities and income levels based upon HCD guidelines stated in this section. 2 Income level estimated based upon specific plan densities as recommended by HCD. Based upon State Redevelopment Law and the proposed Specific Plan requirement, at least 15 percent of the total units (607 units) would be affordable to Very -Low, Low and Moderate income households, of which at least 6 percent or 243 units would be affordable to Very Low income households. 3 Only 38.5 acres (29.4 of Planning Area 20 and 9.1 acres for transitional/ social services) are anticipated to be developed during the planning period of 2000-05 4 Total does not include WAS Tustin housing units. Income levels for WAS Tustin are based upon specific plan densities. Source: City of Tustin; WAS Tustin Specific Plan/Reuse Plan, 1996 and 1998 amendment. CITY OF TUSTIN HOUSING ELEMENT November 2002 42 Figure I and Table H-15 detail the zoning designations of vacant and underutilized land in Tustin. The vacant and underutilized land inventory includes land that is currently zoned medium- and high- density residential and land that could potentially be designated as high-density residential. However, the tables do not include vacant and underutilized land to be developed under Planned Development regulations or under a Specific Plan designation (i.e. MCAS-Tustin Specific Plan). Although the availability of vacant and underutilized land for the provision of housing is not considered a constraint for the 1998-2005 planning period, future planning periods may be marked by a lack of available land. While the City's Land Use Plan provides an adequate land capacity to fulfill housing needs, current development costs in Tustin may preclude the private housing market from providing affordability for low and very low-income households without subsidies. Necessary infrastructure improvements and litigation constraints may cause some delays in the build-out development of the MCAS Tustin prOject. The City cannot guarantee that RHNA needs will be met given limited resources, limited vacant land, the gap between housing costs and incomes, and fluctuations in the local economy. Satisfaction of the City's quantified objectives through new construction will be heavily dependent upon real estate market trends, cooperation of private funding sources, and available funding and programs at the local, county, state and federal levels. CITY OF TUSTIN HOUSING ELEMENT 43 November 2002 Figure 1 - Conventionally Zoned Vacant & Underutilized Land in the City of Tustin* *Figure 1 depicts the general locations of the development sites and excludes land in Planned Communities and MCAS Tustin. CiTY MAP ~ Vacam CITY OF TUSTIN HOUSING ELEMENT November 2002 44 This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT 45 November 2002 · Table H- 15 VACANT AND UNDERUTILIZED LAND6 CITY OF TUSTIN ID~ I Parcel Number [Location I Acres I Zoning Vacant Land 1 401-521-21 158 Mountain View 0.14 R-12 401-521-22 160 Mountain View 0.14 g-12 401-521-23 168 Mountain View 0.14 R-I2 401-521-24 Mountain View 0.14 R-12 2 500-201-02 Browning 2.67 ETSP3 3 401-543-03 170 Pasadena Avenue 0.30 R-34 401-543-10 170 Pasadena Avenue 0.18 g-34 401-543-11 170 Pasadena Avenue 0.29 R-34 4 402-333-05 15651 B Street 0.26 R-34 5 432-401-04 1776 Nisson Road 0.71 R-34 6 402-031-04 16471 McFadden Avenue 0.52 C-14 7 402-301-05, 06 16801 McFadden Avenue 0.60 C-14 8 401-623-05, 06 270 East Main Street 0.74 C-2/C-2P4 9 401-253-04 14082 Endeflee Center Drive 0.85 PC Corn4 l0s 432-141-09 1101 Sycamore Avenue 1.76 R-34 · 115 401-532-28 101-139 W. First Street 1.17 FSSP4 Total Vacant Land 10.79 Underutilized Land 12 401-584-04 250 Prospect Avenue 0.34 C-2/C-2P4 401-584-05 155 Third Street 0.17 C-2/C-2Pa 401-584-06 255 E1 Camino Real 0.17 C-2/C-2Pa 401-584-07 245 El Camino Real 0.17 C-2/C-2p4 401-584-08 235 E1 Camino Real 0.17 C-2/C-2P4 13 401-623-08 275 Sixth Street 2.99 C-2/C-2p4 401-623-09 n/a 0.45 C-2/C-2P4 401-623-10 515 E1 Camino Real 0.55 C-2/C-2Pa 401-623-11 447 E1 Camino Real 0.10 C-2/C-2P4 14 432-131-17 Tustin Block 1.40 CG4 432-131-18 Tustin Block 3.23 CGa 15 401-522-08 433-435 W. First Street 1.03 FSSP4 16 401-581-09 185-225 Prospect Avenue 2.86 MHp4 17 401-572-03 140-150 Second Street 401-572-04 245 "C' Street 1.03 C-2p4 401-572-05 155 Third Street Total Underutilized Land 14.66 TOTAL VACANT & UNDERUTILIZED LAND 25.45 ~ See Figure 1 2 Low Density 3 Medmm Density 4 High Density. Housing units in Old Town Commerdal areas would be fadlitated through the creation of mixed-use zoning. See Program 1.21 for additional information on mixed use zoning. s Senior housing 6 Excludes vacant and underutilized land in Planned Communities and at MCAS-Tustin site n/a - not available Source: Cit~ of Tustin. CITY OF TUSTIN HOUSING BLEMENT 46 November 2002 This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT 47 November 2002 HOUSING ELEMENT GOALS AND POLICIES This section of the Housing Element contains the goals and policies the City intends to implement to address a number of housing-related issues. To implement the Housing Element, the following five major issue areas are identified with related goals and policies: '1) ensure that a broad range of housing types are provided to meet the needs of existing and future residents; 2) provide equal housing opportunities for all City residents; 3) ensure a reasonable balance between rental and owner occupied housing; 4) preserve existing affordable housing; 5) promote conservation and rehabilitation of housing and neighborhood identity; and 6) ensure housing is sensitive to the existing natural and built environment. HOUSING SUPPLYfl-IOUSING OPPORTUNITIES Tustin is home to persons requiring a variety of housing options. At different stages in their lives, people require different housing arrangements. Additionally, the City must respond to the housing needs of all economic segments of the community and ensure that housing discrimination does not serve as a barrier. It is also important that the City maintain a balance of housing types and that the City's housing stock is not Overly skewed towards the provision of one type of housing. Finally, the continuing need for affordable housing in the region requires the City to attempt to preserve Low- income housing units that are at risk of converting to other uses. The City used the following goals and policies to achieve the above objectives. GOAL 1: Provide an adequate supply of housing to meet the need for a variety of housing types and the diverse socio-economic needs of all community residents. Policy 1.1: Promote the consh'uction of additional dwelling units to accommodate Tustin's share of regional housing needs identified by the Southern California Association of Governments (SCAG), in accordance with adopted land use policies. Policy 1.2: Provide for expanded affordable housing opportunities through acquisition and rehabilitation, and new residential development in Old Town Tustin, on other infill sites, and in the MCAS Tustin Specific/Reuse Plan Area. CITY OF TUSTIN HOUSING ELEMENT 48 November 2002 Policy 1.3: Preserve affordable housing units, where possible, through actions such as the maintenance of a mobile home 'park zone, restrictions on R-3 zone uses to preserve the multiple family residential character, facilitate resident access to funding sources for preservation of low income and assisted housing. Policy 1.4: Promote the dispersion and integration of housing for low- and very-low income families throughout the community as opposed to within any particular geographic area, neighborhood, or project. Policy 1.5: Encourage the County of Orange to exercise its responsibilities for housing accommodations for low- and very-low income families within Tustin's sphere of influence. Policy 1.6: Utilize the Redevelopment Agency's authority, where feasible, to assist in creating opportunities which will expand opportunities for development of affordable housing in the community. Policy 1.7: Allow second (attached/detached) units in single- and multi-family districts subject to land use policy and zoning ordinance restrictions. Policy 1.8: Utilize Planned Community Districts and Specific Plans to authorize and promote a variety of lot sizes and housing types. Policy 1.9: Promote cluster housing consistent with General Plan land use density standards to reduce the cost of housing construction. Policy 1.10: Encourage the availability of affordable housing for special needs households, including large, low-income families. Special needs households include the elderly, large families, female-headed households, households with a disabled person, and the homeless (see discussion under Summary of Housing Needs for Special Needs Groups). Policy 1.11: Encourage incentives to assist in the preservation and development of affordable housing such as 1) reducing permit processing time and waiving or reducing applicable permit fees; 2) on-site density bonuses when appropriate; 3) tax-exempt financing; CITY OF TUSTIN HOUSING ELEMENT 49 November 2002 4) flexibility in zoning or development standards; and 5) other financial incentives using Redevelopment Agency housing set-aside funds and special State and Federal grant and housing programs. Policy 1.12: Use tax increment housing set-aside funds of the South Central and Town Center Redevelopment Areas to assist in constructing, rehabilitating, and preserving low and moderate income housing within the jurisdiction of the City. Policy 1.13: Encourage the design and occupancy of housing for senior citizens and the disabled. Promote the construction or rehabilitation and adoption of dwelling units accessible to seniors and/or the disabled. Policy 1.14: Promote, assist, and facilitate the development of emergency and transitional housing at MCAS Tustin as was identified in the MCAS Tustin reuse planning process and provide continued support for the County Homeless Assistance Program and other homeless assistance programs within Tustin and in adjacent cities. Policy 1.15: Encourage the provision of grants and technical assistance to various organizations and agencies who provide assistance to persons with special needs such as the homeless, disabled, low-income, and elderly persons. Policy 1.16: ParticiPate in federal and state housing assistance and rehabilitation programs aimed at assisting households in need. Policy 1.17: Utilize 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 non-profit and for-profit private sector .interests to use available federal and state programs for new or rehabilitated affordable housing. Policy 1.19: Support state-enabling legislation for employers to contribute to the cost of housing for their employees. GOAL 2: Ensure equal housing opportunities for all existing and future City residents regardless of race, religion, ethnicity, sex, age, marital status or household composition. CITY OF TUSTIN HOUSING ELEMENT 50 November 2002 Policy 2.1: Promote equal opportunity housing programs within the community. Policy 2.2: Provide active support and participation with the Orange County Fair Housing Council to provide fair housing opportunities. Policy 2.3: Support programs to match elderly and low and moderate-income individuals who want to share housing costs in a joint living arrangement. Policy 2.4: Support public and private efforts to eliminate all forms of illegal discrimination in housing. Policy 2.5: Minimize displacement of lower income and special needs households, whenever possible, to ensure that displacement is carried out in an equitable manner. GOAL 3: Increase the percentage of ownership housing to ensure a reasonable balance of rental and owner-occupied housing within the City. Policy 3.1: Encourage new housing construction for home-ownership in a mixture of price ranges. Policy 3.2: Provide favorable home purchasing assistance options to low- and moderate-income households, such as down-payment assistance, mortgage credit certificates, and mortgage revenue bond financing. Policy 3.3: Encourage rental unit conversion and alternative forms of homeownership, such as shared equity ownership and limited equity cooperatives where feasible. GOAL 4: Preserve the existing supply of affordable housing in the City. Policy 4.1: Continue to use Federal and State housing initiatives available for low-income households. Policy 4.2: Monitor all federal, state and local funds available to preserve and/or replace lower income units at risk of converting to market rate housing, including tax credit bond financing and redevelopment tax increment funds. CITY OF TUSTIN HOUSING ELEMENT 51¸ November 2002 Policy 4.3: Assist non-profit organizations in securing the resources necessary to preserve/replace lower to moderate income units at risk of converting to market rate housing. Policy 4.4: Consider incentives to non-profit housing and for-profit private sector interests to purchase and/or maintain lower income units at risk of converting to non lower income housing. MAINTENANCE AND CONSERVATION Maintenance and preservation of a City's housing stock prevents unhealthy living conditions; eliminates the need for future, more costly housing rehabilitation; prevents neighborhood deterioration; and encourages community pride. The City enforces codes and provides incentives to promote maintenance and conservation. GOAL 5: Conserve, maintain, rehabilitate, and/or replace existing housing in neighborhoods which are safe, healthful and attractive, in accordance with adopted Land Use Policy. Improve the residential character of the City with an emphasis on revitalizing neighborhoods showing signs of deterioration. Promote conservation of the City's sound housing stock, rehabilitation of deteriorated units where they may exist Citywide, and elimination of dilapidated units that endanger the health, safety and well being of occupants. Policy 5.1: Thxough available financial incentives, encourage owners of rental housing units that are determined to be substandard, in need of repair and a hazard to the health and safety of the occupants to remove and replace or rehabilitate the structures. Policy 5.2: Promote the availability of funds for the rehabilitation of single-family dwellings and apartments. Policy 5.3: Periodically evaluate housing conditions and, when appropriate, address any increase in deteriorated housing conditions. Policy 5.4: Continue to enforce health, safety, and zoning codes to eliminate conditions which are detrimental to the health, safety and welfare of residents. Policy 5.5: Promote preservation of historic and architecturally significant residential properties. CITY OF TUSTIN HOUSING ELEMENT 52 November 2002 ENVIRONMENTAL SENSITIVITY Housing design and land use patterns can have substantial impacts on the natural as well as the built environment. City policies and programs seek to minimize negative environmental impacts. GOAL 6: Ensure that new housing is sensitive to the existing natural and built environment. Policy 6.1: Attempt to locate new 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. RELATED GOALS AND POLICIES The goals and policies described in the Housing Element are related to and support the goals and policies included within other General Plan elements. Many goals and policies from the other elements directly or indirectly support the goals and policies of the Housing Element. These supporting goals and policies are identified in Table H-16. CITY OF TUSTIN HOUSING F. LEMF. NT 53 November 2002 Table H- 16 HOUSING RELATED GOALS AND POLICIES BY ELEMENT RELATED GOALS AND POLICIES BY ELEMENT Housing Land Conservation/ Public Growth Issue Area Use Housing Circulation Open Space Safety Noise Management Housing 13.3,13.4, ~;~;~;~:~,:~:~::~:~ :~ ~i ::~ Opportunities 13.10 :?~ii~!:~i~i~..~.~; 1.1,1.10 2.5, 3.1, 4.1 Maintenance 1.1, 4.6, 5.8, ~:~;,~:~'~:~,:~,~:~ 3.4, 3.5, and Preservation 6.4, 6.6 i~i~i~t~?~:~:~:~:~ii~ii 5.4 1.7, 2.2 Affordable Housing ~~i ~! Support Service/ ~'..'~~;i~;~.~ Fair Housing ~~ii 5.3 4.1 Environmental 9.7, 9.8, ~i:i~g;!~i~i?: 1.14,1.17, 3.3, 4.8, 1.11, Sensitivity, 13.1 ~'~:.~:~;:i~:~;~i~ 3.5 2.12, 3.1, 4.1 4.12 1.12 ClTY OF TUSTIN HOUSING ELEMENT 54 November 2002 HOUSING ELEMENT IMPLEMENTATION PROGRAM The Housing Element Implementation Program provides specific actions the City intends to undertake to achieve the goals and policies of the Element. This section identifies quantified objectives, available financial resources and affordable housing resources, and provides a list of specific programs the City intends to pursue. Housing programs include those currently in operation and new programs added to address housing needs. A description of each program is provided, along with the program funding source, responsible agency, and time frame for implementation. A review of City's past performance on housing element implementation programs is contained in Appendix A of the Housing Element. FIVE YEAR QUANTIFIED OBJECTIVES 2000-2005 State law requires the City to accommodate its fair share of the State's housing need. In doing so, the City must quantify the number of homes that are projected to be built and conserved. The following quantified o~ectives are adopted as guidelines toward meeting Tustin's housing needs through 2005. It is important to note that while the quantified objectives of the RHNA are required to be part of the Housing Element and the City will strive to attain these objectives, Tustin cannot guarantee that these needs will be met given its own limited financial resources and the present affordability gap. Satisfaction of the City's regional housing needs will partially depend upon cooperation of private funding sources and the funding levels of County, State, and Federal programs that are used to support the needs of the very-Iow, low and moderate-income persons. Additionally, outside economic forces heavily influence the housing market. New Construction Objectives The City of Tustin promotes and encourages the development of a variety of housing opportunities to accommodate current and projected housing needs which include 694 very low-, 489 low-, 778 moderate-, and 1,337 above moderate-income households per the Regional Housing Needs Assessment (RHNA) allocation. While the Land Use Plan provides adequate sites to fulfill needs established by CITY OF TUSTIN HOUSING ELEMENT 55 November 2002 RHNA, construction of new units will depend upon the timing of the landowner and developer in the submission of building plans to meet market demands. Housing subsidies will depend upon the availability of government funds - local, County, State, and Federal. Redevelopment projects are subject to the interests of private developers. The construction of secondary units depends upon the desires of the property owners as related to family needs for housing and economic resources. The achievements of the housing objectives are thus dependent upon the private sector and other governmental agencies. The responsibility of the City is to encourage the construction of affordable housing by providing programs and assistance to developers and to assist in its creation by facilitating the review and approval of development permits. Table H-17 provides new construction housing objectives for the period 2000-2005. With the exception of the MCAS-Tustin, all sites identified in Table H-17 are privately owned. Units identified are broken down into various income limits in light of RI-INA percentages and production requirements under the Redevelopment Law. Based upon past development trends (Tustin Grove and Ambrose Lane) that utilized Planned Community Districts to allow for higher densities, the actual number of units created could be higher than identified. The City will strive to ensure that newly constructed units are developed at sufficient densities to assist in fulfillment of low and very low income needs by employing inclusionary zoning for those sites located within redevelopment project areas, mixed use zoning in Old Town Tustin, density bonuses particularly in infill sites to allow for increase densities to accommodate affordable housing developments, and Planned Community Districts to allow for flexibility in development standards. CITY OF TUSTIN HOUSING ELEMENT 56 November 2002 Table H- 17 NEW CONSTRUCTION QUANTIFIED OBJECTIVES SUMMARY 1998 - 2005 CITY OF TUSTIN Very Total # Low Low Moderate Upper ~~~~~of Units t<50% ) 80-120°/ot New Construction 1998-2000 1,378 884 494 MCAS Tustin Housing Units~ 2,599 138 2154 3334 1,913 MCAS Tustin Emergency Housing 2 192 192 MCAS Tustin Transitional Family 50 50 Housing MCAS Tustin Social Services 2 60 60 Granny Flats 10 7 3 New Owner Housing 3 432 75 175 182 New Senior Housing 97 72 25 Density Bonus 160 95 61 4 Recycling of SFD to MFD 25 5 10 10 Total Quantified Objectives 5003 694 489 1,413 2,407 RHNA 3,298 694 489 778 1,337 Difference 1,705 0 0 635 1,070 a Of the total 4,049 potential units proposed at MCAS Tustin, 2,599 units are expected during the planning period. Based upon State Redevelopment Law and the proposed Specific Plan requirement, at least 15 percent of the total units (607 units) would be affordable to Very-Low, Low, and Moderate income households, of which at least 6 percent or 24~3 units would be affordable to Very Low income households. See footnote 4 for additional indusionary units information. 2 These housing units shown as separate line items will serve as transitional/emergency housing facilities. The City counts these units as new construction as they are new additions to the housing inventory. 3 Projects at the end of planning period. 4 Includes MCAS Tustin additional inclusionary units (296 units) Source: Effectiveness of Housing Programs 1989 - 2000, City of Tustin; Five Year Implementation Plan for the Town Center and South Central Redevelopment Proiect Areas for Fiscal Years 2000 - 2001 to 2004 - 2005. ,,, CITY OF TUiS~IN HOUSING ELEMENT 57 November 2002 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 Tusffn Comprehensive Housing Affordability Strategy for Fiscal Years 2000-2001 to 2009- 2010. In addition, Table H-22 - Summary of Programs 2000-2005, outlines the City's specific housing programs during the planning period. Table H-18 provides t. he City's rehabilitation, preservation, and other affordable housing objectives during the planning period. CITY OF TUSTIN HOUSING ELEMENT 58 November 2002 Table H- 18 REHABILITATION, PRESERVATION, AND OTHER AFFORDABLE HOUSING QUANTIFIED OBJECTIVES SUMMARY 1998 - 2005 CITY OF TUSTIN Total # I Very Low Low Moderate Upper of Units I s0o/o I I 80a20O/o) I Owner Occupied Housing 40 0 10 30 Rental Rehabilitation Loans/Gran~s 120 24 48 48 Multi-Family 100 6 9 30 55 Acquisition/Rehab/Conversion/Resale Multi-Family Acquisition/Rehab/Rental 200 28 90 82 Total Rehabilitation 460 30 95 198 137 Tustin Gardens 100 100 Rancho Alisal 69 8 61 Rancho Maderas 54 6 48 Rancho Tierra 51 38 13 Affordable Senior Housing - Mitchell 20 12 8 Avenue Senior Board & Care - Bryan Avenue 18 18 Old Town Residential 29 14 15 Total Preservation 341 164 148 14 15 1,t Time Homebuyer Downpayment 40 10 30 Assistance Loans County Mortgage Credit Certificates Deed Restrictions 620 213 159 248 Section 8 Rental Voucher Assistance 1,500 1,500 Shared Housing Referrals 75 50 25 Homeless Housing Partnership Program 242 242 Emergency Shelter 252 252 Total Other Pro,rams 2,729 2,257 194 278 ~ These units are not recipients of affordability restrictions or fxmding assistance. Source: Effectiveness of Housing Programs 1989 - 2000, City of Tustin; Five Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas for Fiscal Years 2000 - 2001 to 2004 - 2005; Comprehensive Housin~ Affordabilit~ Strate~.~t for Fiscal Years 200-2001 to 2009-2010. CITY OF TUSTIN HOUSING ELEMENT 59 November 2002 Summary of Quantified Objectives Table H-19 summarizes the City's Quantified Objectives for the 2000- 2005 period. Table H- 19 SUMMARY OF QUANTIFIED OBJECTIVES: 2000-2005 CiTY OF TUSTIN New Rehabilitation/ Other Income Group RHNA Construction Preservation Programs Very-Low 694 694 194 2,257 Low 489 489 243 194 Moderate 778 1413 212 278 Above Moderate 1,337 2,407 152 - Total 3,298 5,003 801 2,729 Source: Ci~ of Tustin IDENTIFICATION OF AFFORDABLE HOUSING RESOURCES The City has prepared a Consohdated Plan and Comprehensive Housing Affordability Strategy identifying and describing all funding programs available to the City and Tustin Redevelopment Agency to assist in meeting the City's housing needs. Included in the plan are descriptions of a wide variety of major housing assistance programs available from federal and state agencies and private lending institutions. More specific information including detail regarding eligible projects and activities and funding availability can be found in the document. The following is a summary of this information along with updates to reflect new state and federal programs. Table H-20 provides an illustrative example of the estimated amount of locally identified resources that could be available to finance housing program objectives on an annual basis over the five-year planning period. The amounts shown are estimates, actual revenue amounts, and the timing of their availability could be more or less and would adjust over time. Specific decisions are made on an annual basis as part of the City and Redevelopment Agency budget process. CITY OF TUSTIN HOUSING ELEMENT 60 November 2002 Table H- 20 HOUSING PROGRAM ILLUSTRATIVE FUNDING RESOURCES 2000-2005 Anticipated Resources FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 TOTALS Combined Fund Balance' $5,106,664 $4,499,935 $2,003,086 $558,811 $180,989 $1,340,000 HUD Supportive Housing Pro amt $0 $1,100,000 $800,625 $0 $0 $1,900,625 CDBG Funds $0 $100,000 $100,000 $70,000 $70,000 $340,000 State HELP Funds3 $0 $1,150,000 $0 $0 $0 $1,150,000 South Central Housing Fund Deposits $530,000 $540,600 $551,412 $562,440 $573,689 $2,758,141 Town Center Housing Fund Deposits .$540,000 $550,800 $561,816 $573,052 $584,513 $2,810,181 Investment Interest $127,667 $224,997 $55,174 $27,941 $9,050 $444,829 Bond Finance Proceeds4 $0 $7,424,590 $0 $0 $0 $7,424,590 Total Resources $6,304,330 $15,590,921 $4,072,112 $1,792,243 $1,418,240 Anticipated Expenditures Debt Service on Bonds4 $0 $465,120 $465,120 $465,120 $465,120 $1,860,480 Other Affordability Pro ams5 $240,000 $1,340,000 $1,040,625 $240,000 $240,000 $3,100,625 Preservation $500,000 $0 $0 $0 $0 $500,000 Rehabilitation $220,200 $4,397,220 $1,487,7575 $375,531 $137,700 $20,008,226 New Construction $344,196 $6,875,096 $0 $0 $0 $7,219,292 Administrative Expenses 1 $500,000 1 $510,000 $520,200 $530,604 $402,884 $2,463,688 Total Expenditures $1,804,396 $13,587,436 $16,903,520 $1,611,255 $1,245,704 $35,152,311 Balance Available $4,499,935 $2,003,486 $558,811 $180,989 $172,537 1 Redevelopment Agency Housing set-aside as of June 30,1999; note some of these funds are already encumbered to meet housing quantified objectives 2 Awarded grant funds from HUD 3 Awarded grant funds from State 4 Estimated for tax exempt bond at 1.25 DCR; 25 -year amortization; 6.25% interest bonds could be issued in 2002 or Fiscal Year 2002-03. 5 Includes First Time Home Buyers Program; annual allocation of $240,000, and Homeless Assistance Program. 6 $900,000 of this amount under State program guidelines could also be used for rehabilitation programs. NOTE: Does not include any potential housing set-aside deposits from MCAS -Tustin project since Redevelopment Project not yet adopted. CITY OF TUSTIN HOUSING ELEMENT November 2002 61 The City's anticipated revenue stream indicates that the bulk of housing revenues will start accruing in fiscal year 2001-2002 with a substantial infusion from an anticipated tax increment bond issue and HUD Supportive Housing Program funds. Therefore, most housing programs will begin to assist greater numbers of households in the early years of the planning period but will begin falling off toward the end of the five-year time frame due to a shortage of available local funds. As needed and as shown on Table H-20, the City and its Redevelopment Agency will also use State HELP program funds and Federal CDBG funds. The City will also utilize other State and Federal resources to leverage local resources as these funding sources match the City's programmatic objectives. Table H 22 is a summary of affordable housing resources. Table H- 21 AFFORDABLE HOUSING RESOURCESa CI.TY OF TUSTIN Residential Rehab- Loan/Grant Program First Time Homebuyer Program Single-Family Residential Rehab- Loan/Grant Program New Construction Rental Housing Program Density Bonus Description Assistance to owners of multi-family projects occupied by low- to moderate-income persons. Low Interest Rates and Downpayment assistance Assistance to owners of single-family projects occupied by low-income persons. Financial assistance for new affordable housing projects. Financial assistance for affordable multi-family rental projects. The City allows an increase in density to developers who set-aside at least 20% of their project to low- income persons. Eligible Activities~ Rehabilitation · First Time Homebuyer · Rehabilitation · New Construction Acquisition · Rehabilitation · New Construction · Density Bonus CITY OF TUSTIN HOUSING ELEMENT 62 November 2002 Tax-Exempt Bonds Table H- 21 AFFORDABLE HOUSING RESOURCES1 City/Agency Owned Land CalHome California Self-Help Housing Program (CSHHP) CITY OF TUSTIN The Redevelopment Agency and the City have the authority to issue tax- exempt bonds. The City is also a member of California Statewide Communities Development Authority. Bond proceeds are used to develop affordable housing. If available and appropriate, City or Redevelopment Agency owned land may be made available Grants to local public agencies and nonprofit developers to assist individual households through deferred-payment loans. Direct, forgivable loans to assist development projects involving multiple ownership units, including single-family subdivisions. Grants are made to sponsor organizations that provide technical assistance to participating owner- builder families. · New Housing Development · Rental Acquisition/ Rehabilitation · Housing · Community Facihties · Predevelopment · Site development · New construction · Rehabilitation · Acquisition and rehabihtation · Downpayment assistance · Mortgage financing · Homebuyer counseling · Technical assistance for self-help projects or shared housing. A share of funds is allocated for the rehabilitation, replacement and repair of manufactured homes. Training and supervision of low and moderate income self- help home-builders or repairers CITY OF TUSTIN HOUSING ELEMENT 63 November 2002 Table H- 21 AFFORDABLE HOUSING RESOURCES~ Downtown Rebound Planning Grants Program CITY" OF TUSTIN Illl Il Ill I Ilr il Fund local planning for infill housing, adaptive reuse (conversion) of commercial and industrial space into residential units, and the development of other forms of high density housing within existing urbanized areas. Grants for emergency shelters, transitional housing, and supportive services for homeless individuals and families. Emergency Housing Assistance Program (EHAP) · Infill site inventories, development feasibility studies, strategic action plans to remove barriers and promote infill housing, mixed- use developments and transit corridor development · Updates of general plans and zoning ordinances to encourage adaptive reuse, higher density residential development, mixed- use development, residential development within walking distance of transit nodes, employment centers and other urban amenities · Seismic and structural feasibility studies on candidate buildings for adaptive reuse. · Rehabilitation, construction, renovation, expansion of existing facilities · Site acquisition (including lease or purchase of an existing site or facility) · Equipment purchase, vouchers, operational costs, direct and indirect client services · Administration of the award (limited to 5 percent). CITY OF TUSTIN HOUSING ELEMENT 64 November 2002 Jobs-Housing Balance Incentives Mobilehome Park Resident Ownership Program (MPROP) Table H- 21 AFFORDABLE HOUSING RESOURCES1 CITY OF TUSTIN Financial incentives to cities and counties that demonstrate an increase in the number of new residential units. Grant amounts are based on an increase in the number of new housing units for which residential building permits were issued during calendar 2001, compared to the average number of permits during the most recent measurable 36- month period prior to 2001. Loans to finance the preservation of affordable mobilehome parks by conversion from private ownership to ownership or control by resident organizations, nonprofit housing sponsors, or local public agencies. Funds awarded can be used for any project, service, or other local need determined by the city to be in the community's best interest, including traffic improvements, neighborhood parks, bike paths, libraries, school facilities, play areas, community centers, police and fire stations, etc. · Purchase (conversion) of a mobilehome park by a resident organization, nonprofit entity or local public agency; rehabilitation or relocation of a purchased park · Purchase by a low income resident of a share or space in a converted park. CfrY OF TUSTIN HOUSING ELEMENT 65 November 2002 Multi£amily Housing Program (MHP) Urban Predevelopment Loan Program (PDLP) Table H- 21 AFFORDABLE HOUSING RESOURCES~ CIT~, ~ OF TUSTIN Deferred payment loans to assist new construction, rehabilitation and preservation of permanent and transitional rental housing for lower income households. Short-term loans to provide predevelopment capital to finance the start of low- income housing projects in urban areas. New construction, rehabilitation, or acquisition and rehabilitation of permanent or transitional rental housing, and the conversion of nonresidential structures to rental housing. Eligible costs include the cost of child care, after-school care and social service facilities integrally linked to the assisted housing units; real property acquisition; refinancing to retain affordable rents; necessary onsite and offsite improvements; reasonable fees and consulting costs; and capitalized reserves. Predevelopment costs include, but are not limited to, site control, site acquisition for future low-income housing developments, engineering studies, architectural plans, application fees, legal services, permits, bonding and site preparation. CITY OF TUSTIN HOUSING ELEMENT 66 November 2002 Urban Predevelopment Loan/Prese~afion Program (PDLP-P) Urban Predevelopment Loan/Jobs-Housing Balance Program (PDLP-J) Table H- 21 AFFORDABLE HOUSING RESOURCES~ CITY OF TUSTIN Short-term loans to finance the initial costs of preserving existing affordable housing developments for existing tenants. Short-term loans to finance the initial costs of constructing, converting, preserving or rehabilitating assisted housing developments near transit stations. · Capital assessments to establish a project's condition and potential rehabilitation costs · Purchase option agreements · Professional services such as consultant, architect, engineering and legal · Permit and application fees · Bonding fees; etc. Land purchase, options to buy land, options or deposits to buy or preserve existing publicly assisted rental housing to preserve the affordability of the units, professional services, permit and application fees, bonding, site preparation, related water or sewer development, etc., for affordable housing projects within one-half mile of an existing or planned transit station. CITY OF TUSTIN HOUSING ELEMENT 67 November 2002 Proposition lA Emergency Shelter Program California Housing Finance Agency (CHFA) Multiple Rental Housing Programs California Housing Rehabilitation Program Table H- 21 AFFORDABLE HOUSING RESOURCES~ CITY OF TUSTIN Proposition lA includes · provisions to establish a Downpayment Assistance · Program and a Rent Assistance Program using school fees collected from affordable housing projects. Potential buyers or tenants of affordable housing projects are eligible to receive assistance in the form of downpayment assistance or rent subsidies from the State at amounts equivalent to the school fees paid by the affordable housing developers for that project in question. This programs structure and implementation strategy has not yet been determined by the State of California Grants awarded to non- profit organizations for shelter support services Below market rate financing offered to builders and developers of multiple family and elderly housing. Tax-exempt bonds provide below-market mortgage money Low interest loans for the rehabilitation of substandard homes owned and occupied by lower- income households. City and non-profits sponsor housing rehabilitation projects. Downpayment Assistance Rental Assistance · Support Services · New Construction · Rehabilitation/ Acquisition · Rehabilitation · Repair of Code Violations · Property Improvements CITY OF TUSTIN HOUSING ELEMENT 68 November 2002 California Housing Finance Agency Home Mortgage Purchase Program Table H- 21 AFFORDABLE HOUSING RESOURCESZ CITY OF TUSTIN CHFA sells tax-exempt bonds to provide below- market loans to first time homebuyers. Program is operated through participating lenders that originate loans purchased by CHFA Unsecured loan from CHFA to provide affordable housing opportunities through program partnership with local government entities. California Housing Finance Agency HELP Program Low Income Housing Tax Credit (LIHTC) County Statewide Communities Program Tax credits available to individuals and corporations that invest in low-income rental housing. Tax credits are sold to corporations and people with high tax liability, of which the proceeds are utilized for housing development The City of Tustin is now a direct member of the program through a Joint Powers Authority and can participate directly. · Homebuyer Assistance Acquisition Rehabilitation Infill Predevelopment New construction Code Enforcement · Rehabilitation/ Acquisition · New Construction · Multi-family Housing · Private Mortgage Revenue Bonds · Acquisition · Rehabilitation CITY OF TUSTIN HOUSING ELEMENT 69 November 2002 California Debt Limit Allocation Committee (CDLAC) Table H- 21 AFFORDABLE HOUSING RESOURCES1 CITY OF TUSTIN Allocation of private · activity bond (tax-exempt mortgage revenue bond) to · single-family housing. Low interest loan for multi- family housing rehabilitation or acquisition, or both. Provides limited term housing assistance combined with case management, employment services, childcare and other supportive services to welfare recipients. Grants, loans, and mortgage assistance to low and moderate-income families improving property with their own labor. Loans for pre-development or "seed" money to nonprofit corporations and local governments. Construction, maintenance, use, and occupancy of .privately owned and operated employee- housing facilities. Provides unsecured loan for affordable housing projects. Mortgage Credit Certificate Multi-family private mortgage revenue bond · Land lease Payment · New Construction · Pre-development costs · Employee Housing of five or more employees · Inffll · Code Enforcement · First Time Homebuyers · Acquisition · Rehabilitation CITY OF TUSTIN HOUSING ELEMENT 70 November 2002 CDLAC continued Community Development Block Grant (CDBG) Mortgage Credit Certificate (MCC) Table H- 21 AFFORDABLE HOUSING RESOURCES~ CITY OF TUSTIb Low interest loans for housing construction for individuals and families with special needs. Low interest and downpayment program for low and moderate-income first time homebuyers. Permanent financing for new construction, acquisition/rehabilitation, and acquisition of multi- family projects Entitlement program that is awarded to the City on a formula basis. The objectives are to fund housing activities and expand economic opportunities. Projects must meet one of three national objectives: benefit Iow- and moderate-income persons; aid in the prevention or elimination of slums or blight; or meet other urgent needs. Federal tax credit for low- and moderate-income homebuyers who have not owned a home in the past three years. Allocation for MCC is provided by the State through the County of Orange. · Section 108 Loan Repayments · Historic Preservation · Admin. & Planning · Code Enforcement · Public Facilities Improvements · Housing Activities · Economic Development · Rehabilitation · First Time Home Buyer Assistance CITY OF TUSTIN HOUSING ELEMENT 71 November 2002 HOME Investment Partnership (HOME) Program Table H- 21 AFFORDABLE HOUSING RESOURCES cITY 'OF TUSTIN Grant program for housing. The intent of this program is to expand the supply of decent, safe, and sanitary affordable housing. HOME is designed as a partnership program between the federal state, and local governments, non-profit and for-profit housing entities to finance, build/rehabilitate and manage housing for lower- income owners and renters Emergency Shelter Grants (ESG) Housing Opportunities for Persons with AIDS (HOPWA) Shelter Plus Care Program (S+C) Supportive Housing Grant Annual grant funds are allocated on a formula basis. Funds are intended to assist with the provision of shelter and social services for homeless Funds are made available countywide for supportive social services, affordable housing development, and rental assistance. Supportive housing and services for persons with disabilities-grants for rental assistance offered with supportive services to homeless with disabilities and disabled households. Grants to improve quality of existing shelters and transitional housing. Increase shelters and transitional housing facilities for the homeless Multi-Family Acquisition/Rehab Single-Family Homebuyer Assistance CHDO Assistance Administration Rental Assistance · Homelessness Prevention (acquisition, new construction, rehabilitation, conversion) · Supportive Services · Operating Expenses · Rental Assistance · Supportive Social Services · Administration · Rental Assistance · Acquisition · Rehabilitation · New Construction CITY OF TUSTIN HOUSING ELEMENT November 2002 Section 8 Rental Assistance Section 202 Section 811 HOPE McKinney Act Supportive Housing Program (SHP) Section 8 Moderate Rehabilitation Single Room Occupancy Program (SRO-Section 8) Table H- 21 AFFORDABLE HOUSING RESOURCESa CITY OF TUSTIN Rental assistance program which provides a subsidy to very low-income families, individuals, seniors and the disabled. Participants pay 30 percent of their adjusted income toward rent. The Orange County Housing Authority pays the balance of rent to property owners, and administers the program. Grants to non-profit developers of supportive housing for the elderly Grants to non-profit developers of supportive housing for person with disabilities, including group homes, independent hying facihties and intermediate care facilities Homeownership assistance awarded on a competitive basis requires non-federal matching funds. Grants to develop supportive housing and services and services that will enable homeless people to Hve as independently as possible. Funds to rehabilitate single-room units within a building of up to 100 units. The provision of supportive services is optional. · Rental Assistance · Acquisition · Rehabilitation · New Construction · Rental Assistance · Support Services · Acquisition · Rehabilitation · New Construction · Rental Assistance · Homeownership of Multi-family units ( OPE 2) · Homeownership of Single-family homes ovE 3) · Transitional Housing · Permanent Housing For Homeless With Disabilities Supportive Services, such as child care, employment assistance and outpatient services for the homeless · Rehabihtation · New Construction CITY OF TUSTIN HOUSING 'ELEMENT November 2002 Table H- 21 AFFORDABLE HOUSING RESOURCES~ Small Projects Processing (SPP)- (22~ (d)(4) and 22s (f) Section 108 Loan HUD Mortgage Insurance for Purchase/Refinance HUD Rehabilitation Loans for Multifamily Projects Disposition of HUD Mulitfamily Housing HUD Single-Family Property Disposition Program CI, TY, ~OF TUSTIN Mortgage Insurance program for small multi- family new construction or substantial rehabilitation (221)(d)(4) and small multi- family rehabilitation Provides loan guarantee to CDBG entitlement jurisdictions for pursuing large capital improvement or other projects. The jurisdiction must pledge its future CDBG allocations for loan repayment. Maximum loan amount can be up to five times the entitlement jurisdiction's most recent approved annual allocation. Maximum loan term is 20 twenty years. Mortgage Insurance for purchase or refinance of existing multifamily projects. Provides mortgage insurance for improvements, repairs, or additions to multi-family projects. To dispose of multi-family homing owned or financed by HUD that is delinquent, under workout or foreclosed with mechanisms designed to preserve the low- and moderate-income housing stock. Sells HUD-acquired single- family properties to expand homeownership opportunities and strengthen neighborhoods. Up to 10% of HUD-help single-family properties are made available for lease for use in homeless programs. Rent is $1 per year. Acquisition · Rehabilitation · New Construction · Acquisition · Rehabilitation · Home Buyer Assistance · Homeless Assistance · Public Improvement · Economic Development · Relocation, clearance, site improvements · Acquisition · New Construction · Operation Administration · Energy Conservation · Rehabilitation · Acquisition · New Construction · Operation Administration · Preservation · Acquisition · Rehabilitation CITY OF TUSTIN HOUSING ELEMENT November 2002 Table H- 21 AFFORDABLE HOUSING RESOURCES1 Homeless Providers Grant and Per Diem Program Federal National Mortgage Association (Fannie Mae) Federal Home Loan Mortgage Corporation (Freddie Mac) CITY OF TUSTIN Provides grants to develop programs that help veterans recover from homelessness, including establishing transitional housing and supportive services for homeless veterans. Acquisition Operation Administration Single Room Occupancy Hotels · Social Services · Transitional Housing · Community Home Buyer Program - Fixed rate Mortgages · Community Home Improvement Mortgage Program - Mortgages for both purchase and rehabilitation of a home · Fannie Neighbor - Under served low- income minorities are eligible for low down- payment mortgages for the purchase of single family homes Purchases/secures high loan to value ratio single- family home purchase loan to assist Iow income families Rehabilitation Mortgages Program insured mortgages for property acquisition and rehabilitation · Homebuyer Assistance · Homebuyer Assistance/Rehab Expand Home Ownership for Minorities · Homebuyer Assistance · Acquisition · Rehabilitation CITY OF TUSTIN HOUSING ELEMENT November 2002 California Community Reinvestment Act (CRA) Federal Home Loan Bank A~fordable Housing Program California Organized Investment Network (COIN) McAuley Institute Table H- 21 AFFORDABLE HOUSING RESOURCES CITY OF TUSTIN Assistance to low income minority neighborhoods, including the construction, rehabilitation, bridge and acquisition finance needs of developers of affordable rental and for-sale housing, as well as first time, Iow and moderate income homebuyers. Provides funds to qualified affordable housing projects that would not meet customary criteria or existing secondary mortgage market requirements or for which there is no secondary market Provides interest rate at 20 basis point below 11~h District costs of funds. Direct subsidies to non- profit and for-profit developers, and public agencies for affordable low-income ownership and rental projects Provides financing for affordable rental or ownership housing. Revolving Loan fund and technical assistance to build or rehabilitate housing. New Construction Rehabilitation Acquisition New Construction Expand Home Ownership for Lower Income Persons · Affordable housing financing · Acquisition * Homeless Shelters · New Construction · Rehabilitation · Self-Help Housing · Single Room Occupancy Hotels · Transitional Housing CITY OF TUSTIN HOUSING ELEMENT 76 November 2002 Table H- 21 AFFORDABLE HOUSING RESOURCES~ Mercy Loan Fund Neighborhood Housing Services World/BRIDGE Initiative CITY OF TUSTIN Makes loans to projects in which conventional financing is not available or not affordable and promotes innovative and effective financing arrangements. NItS is a three-way partnership among neighborhood residents, local governments and local businesses. The Neighborhood Reinvestment Corporation provides direct technical assistance, expendable grants, and capital grants to NHS, which makes loans for rehabilitation. Provides lower-interest construction financing for affordable or mixed- income rental housing or affordable home ownership through a consortium of World Savings/Calpers/Wells Fargo/Bank of America · Acquisition · Group Homes/ Congregate Care · Infrastructure Development · Mobilehome Park Purchase Assistance · New Construction · Preservation · Rehabilitation · Self-Help Housing · Single Room Occupancy Hotels · Transitional Housing · Energy Conservation · Operation Administration · Rehabilitation · New Construction · Rehabilitation · Acquisition CITY OF TUSTIN HOUSING ELEMENT 77 November 2002 Non Profit Organizations Table H- 21 AFFORDABLE HOUSING RESOLrRCES1 , C, !~,OF TUSTIN According to the State · Department of Housing and Community · Development, three nonprofit agencies in Orange County have expressed interest in purchasing and or managing at risk or replacement units in the Tustin area. Orange County Affordable Housing Clearinghouse Non-profit lender consortium Acquisition and rehabilitation Management of multi- family units · Construction Financing · Permanent Financing ~ The Replacement Housing, Housing Rehabilitation, Housing Production and Land Cost Write-Down programs all use the Redevelopment Agency's low- to moderate-income housing set-aside funds to leverage other regional, state, and federal funding sources. These sources include, but are not limited to: Orange County Housing funds, California Housing Finance HELP funds, Department of Housing and Urban Development HOME funds, along With housing revenue bond financing and low income housing tax credits. Such sources help to ensure an adequate level of funding to satisfy the City's affordable housing production requirements. Source: City of Tustin Redevelopment Agency Comprehensive Housing Affordability Strate~/~ 2000-2010 In addition to these resources, there are also potential public and private resources that may be available to the City. HOUSING PROGRAMS The following matrix identifies existing and new housing programs to be implemented during the 2000-2005 period and the 1998-2000 transitional period. Table H-22 is a comprehensive summary of the City's quantified objectives set forth for each program for the planning period 1998-2005. The programs are organized according to the goals described previously. CITY OF TUSTIN HOUSING ELEMF_,NT November 2002 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency I Funding Source I Quantified Objective Timeframe Goal 1: Adequate Housing Supply 1.1 Available Sites Community City General Fund; Assist in the development On-going; units should be Continue to utilize Planned Community Districts and Development Redevelopment of new affordable owner built by 2005 Specific Plans to authorize and encourage mixed-use Department, Agency Funds; City and rental housing developments (see Zoning Studies Program). Redevelopment and Agency staff through development in Agency, City Council time involved MCAS - Tustin and infill Housing Element Policies: 1.1, 1.8, 1.11 of 3,151 units. 1.2 Mobile Homes Community City General Fund; As received Process applications as Continue to maintain the City's mobile home park zone Development processing fees received and process conditional use permit applications as Department, City (recoverable) received for manufactured homes. Council Housing Element Policies: 1.1, 1.3 1.3 Secondary Residential Units Community City processing fees 2 units By 2005 Continue to provide opportunities for affordable sec- Development (recoverable) ondary residential dwelling units in the Single-family Department, City Residential District lots where feasible through existing Council Zoning Ordinance provisions. Housing Element Policies: 1.1, 1.7,1.13 1.4 Deed Restrictions Community 1) Tax -Exempt Impose such restrictions By 2005 Require appropriate deed restrictions to ensure continued Development Mortgage on 691 units. affordability for low- or moderate -income housing Department, Revenue Bonds constructed or rehabilitated with the assistance of any Redevelopment public or Redevelopment Agency funds as may be legally Agency, City Council 2) Redevelopment required. Agency Housing Set - etHousin Housing Element Policies: 1.1 Aside Funds 1.5 Pre -application Conferences Community City General Fund; Continue On-going Continue to utilize procedures for pre -application Development City processing fees conferences and processing procedures to expedite Department (recoverable) permit processing. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT November 2002 79 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.6 Permit Processing for Low- and Moderate Community City General Fund; Continue On-going Income Housing Development City processing fees Ensure that processing of permits for low- and moderate- (recoverable) income housing are fast -tracked with low- and moderate - income housing permits being given priority over other permit applications. Housing Element Policies: 1.11 1.7 Permit Coordination Community City General Fund; Processing of By 2005 Continue the services of the City's Community Development City processing fees approximately 10 new Development Department as a central clearinghouse with (recoverable) residential projects individuals assigned the responsibility of expediting annually, 50 projects by development permits required from various departments 2005 and agencies. Housing Element Policies:.1.11 1.8 Tax Increment Financing Redevelopment Redevelopment Assist 620 units by 2005 By 2005 Provide housing set-aside tax increment funds generated Agency Agency Housing from the Redevelopment Projects, where available, to Set -Aside Funds assist in providing housing accommodations for low- and moderate -income households in rehabilitation or new construction projects. Housing Element Policies: 1.6,1.12, 3.2, 4.2 1.9 Housing for the Disabled Community State and Federal Refer individuals to On-going; adopt Require new multi -family housing units and apartment Development programs; City's agencies providing Ordinance by 2003. conversions to condominiums to comply with State Department General Fund. supportive housing that specifications pursuant to SB 520 for accommodation of accommodates the disabled. The City will conduct analysis, add independent living. Add procedures, and/or undertake appropriate amendments procedures and/or to existing standards by removing constraints through undertake appropriate the adoption of a Reasonable Accommodation Ordinance amendments to existing to create a process in accommodating the disabled (to be standards to ensure adopted in conjunction with Zoning Studies/Program accommodation to the 1.21) and complying with Chapter 11 of the California disabled by 2003. Building Code (requires portion of multi -unit dwellings to be accessible dwelling units) to ensure accommodation CITY OF TUSTIN HOUSING ELEMENT November 2002 80 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe for the disabled. Housing Element Policies: 1.13,1.15 1.10 Transitional Housing Various Non -Profit Variety of private . Promote, assist, and on-going assistance to Encourage the continuation of the Sheepfold homes and Organizations, funds; CDBG funds facilitate the local non -profits. Laurel House in Tustin, which provide housing facilities Redevelopment ' development of for battered homeless women and children. These homes Agency, Community emergency and are located in single-family neighborhoods and provide a Development transients' shelters much-needed service for homeless women and children. Department through continued In addition, explore additional program options to assist support of the County in the provision and funding for other programs such as Homeless Assistance transitional housing and single room occupancy housing. Program • Support local agencies Housing Element Policies: 1.15,1.16 who provide homeless services by providing financial assistance of approximately $5,000- $10,000 annually. 1.11 Temporary Housing for Homeless County of Orange, CDBG funds, HUD • Provide 192 emergency 192 emergency housing The City will also support countywide efforts to assist Redevelopment SHP funds housing units to single by 2003 approved homeless providers as part of the MCAS Tustin Agency men and women by Reuse effort. 2003 at Tustin Legacy (Orange County Rescue Housing Element Policies: 1.14,1.15 Mission). • The City plans to assist By 2005• 200 individuals by means of integrating counseling, education, job -training and other techniques to stop the cycle of homelessness. • Provide 24 units of CITY OF TUSTIN HOUSING ELEMENT November 2002 81 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program I Responsible Agency I Funding Source I Ouantified Obiective Timeframe transitional housing for families (to be operated by Salvation Army) • Provide 6 units of transitional housing for women and children (to be operated by Human Option -Dove Housing) • Provide 6 units- in long-term 12-24 months -transitional housing for families with children (to be operated by Orange Coast Interfaith Shelter) • Provide 14 units of transitional housing to families with children who are homeless due to a short or temporary financial hardship (to be operated by Families Who Care, formerly Irvine Temporary Housing) • Provide for a 60 -unit expansion of Orangewood Transitional Housing for children (to be overated by the Cour CITY OF TUSTIN HOUSING ELEMENT November 2002 82 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe of Orange) 1.12 Implementation Program Redevelopment Redevelopment Review within legal time • Mid -review of The Redevelopment Agency will review Implementation Agency Fund frames Implementation Plan Plan for each project area and Comprehensive Housing (Fiscal Year 2002-2003) Affordability Strategy as required by Redevelopment Law and adjust as necessary. • Five-year review of Implementation Plan Housing Element Policies: 1.12, 3.2 (Fiscal Year 2004-2005) 1.13 Housing Opportunities for all Economic Private Developers in City General Fund; Monitor 174 affordable On-going Segments East Tustin, Staff time units in East Tustin Monitor the implementation of the affordable housing Community Develop - program adopted as a part of the East Tustin Specific ment Department Plan. Housing Element Policies: 1.1,1.8,1.9,1.10 1.14 Bonding Programs Redevelopment State and Municipal Complete analysis of On-going; bond issue Issue Redevelopment tax-exempt bonds, as necessary, to Agency Bonds; Private available programs on as anticipated accomplish Five -Year Quantified Objectives with such Activity Mortgage needed basis. approximately between issuance conditioned on having projects ready to move Bonds Revenue Fiscal Years 2001-02 and forward. Also utilize other housing revenue bond issued by California 2002-03 financing resources and Low Income Housing Tax Statewide Credits on new construction and Communities acquisition/ rehabilitation projects that help meet the Development City's affordable housing needs. Authority and others; California Housing Element Policies: 1.12, 3.3 Low -Income Housing Tax Credits; variety of other sources CITY OF TUSTIN HOUSING ELEMENT November 2002 83 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.15 Economic Integration within Sphere of County of Orange City General Fund; On going request to both On-going Influence Staff time agencies. Request that the Orange County Planning Commission and the Environmental Management Agency (EMA) notice the City of Tustin of any proposed development activities within Tustin's sphere of influence. Housing Element Policies: 1.1,1.4,1.5 1.16 Senior Citizen Housing Redevelopment Redevelopment Preservation of 100 at -risk By 2005 Continue to identify sites that are suitable for senior Agency; Community Agency Housing and 60 new units by 2005. citizens housing projects. These sites will be promoted for Development Set -Aside Funds; private development and applications will be made for Department HELP; Low -Income any available subsidy funds. Housing Tax Credits; Private Housing Element Policies: 1.1, 1.13,1.15 Activity Bonds issued by California Statewide and others 1.17 Senior Services Program Parks and Recreation City General Funds Assist 850 elderly On-going Develop a comprehensive transportation program, case Department annually management, information and referral, and shared housing program. Housing Element Policies: 1.15, 2.3 1.18 Recycling Single -Family Uses in R-3 Zones Into Multiple -Family Units Community Development City General Fund and Redevelopment Respond to all requests for density bonus per City On-going Continue to encourage developers to consolidate Department Agency Funds; Staff codes. individual lots into larger cohesive developments. time Density bonuses may be considered as an incentive to consolidate lots. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT November 2002 84 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.19 Ongoing Review of Housing Element Community City General Fund; On-going On-going Programs Development Staff time From the date of adoption of the Housing element, Department prepare an annual report to the Planning Commission assessing previous years accomplishments toward meeting Housing Element objectives. Submit the Annual Report to the State HCD. Housing Element Policies: all policies 1.20 Consolidated Plan Community Variety of local, Prepare Consolidated Prepare Consolidated The City of Tustin shall prepare an update of the Development State, and Federal Plan in 2005. Plan in 2005 Consolidated Plan that provides a comprehensive Department funding; City Prepare Action .Plan assessment of housing needs, a housing development General Fund and annually Prepare Action Plan plan incorporating Federal, State and local public and Redevelopment annually private resources, and a one-year implementation plan. Agency Funds Staff time Housing Element Policies: 1.15,1.16,1.18, 2.1, 4.1, 4.2, 4.3, 4.4,5.1,5.2,5.3,5.4,5.5 CITY OF TUSTIN HOUSING ELEMENT November 2002 85 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.21 Zoning Studies Community City General Fund, Initiate Zoning Studies by By 2003 To facilitate the new construction goals of the 1998-2005 Development Redevelopment January 2002 and complete Regional Housing Needs Assessment, the City intents to Department Agency funds any proposed amendment undertake zoning studies to consider new programs to in 2003• encourage and promote affordable housing and recommend appropriate amendments for actions by the Planning Commission and the City Council. These studies include: (1) Creation of zoning provisions which will accommodate mixed uses in portions of the City, particularly in the Old Town Commercial Area; (2) Provide relaxation of certain development standards and incentives for projects which include affordable housing units upon City Council's approval; (3) Provide a process for individuals with disabilities to make requests for reasonable accommodation to relief from various land use, zoning, or other building rules, policies, and/or procedures of the City. Housing Element Policies: 1.1, 1.11 1.22 Private Streets City of Tustin None necessary Continue On-going The City of Tustin has adopted standards for private streets in new residential developments. To reduce construction costs, developers may be permitted to install private rather than public streets, wherever feasible. Housing Element Policies: 1.17 CITY OF TUSTIN HOUSING ELEMENT November 2002 86 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.23 Building Codes City of Tustin, City General Fund; On-going On-going The State of California has determined that the over- Community Staff time riding value is the protection of the health and safety of Development residential occupants. Continue to adopt the Uniform Department Building Code pursuant to the state directives and where local amendments are proposed to reflect local climatic, geologic or topographic conditions, and minimize, wherever possible, impacts on provision of housing. Housing Element Policies: 5.4 1.24 Site Improvements Community Developer funded Evaluate the use of special On-going The requirement for the developer to construct site Development assessment district improvements often result in passing these costs on the Department, funding at the MCAS - housing consumer. These costs are reflected in the cost of Redevelopment Tustin by 2005 and its use housing that eliminates an even greater proportion of the Agency in other developing areas. population from financially qualifying for the purchase of housing. The financing of public improvements by a special assessment district or community facility district on a per parcel benefit basis may enable a greater proportion of the market to qualify for housing. Assessment district financing has been implemented in the East Tustin area and is being used to pay for public improvements. The City will assess opportunities to utilize these public improvement financing techniques in newly developing areas such as WAS Tustin and determine whether they are financially feasible. In creating any new assessment districts, an evaluation should be completed of the developer's activity to advance pay off bonds at the close of escrow. Housing Element Policies: 1.11 CITY OF TUSTIN HOUSING ELEMENT November 2002 87 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 1.25 Fees, Exactions, and Permit Procedures Community City General Fund; On-going On-going Consider waiving or modifying various fees or exactions Development Redevelopment normally required where such waiver will reduce the Department, Agency Set -Aside affordability gap associated with providing housing of Redevelopment Housing the elderly and for very -low and low-income households. Agency Housing Element Policies: 1.11 1.26 Environmental Constraints Community General Fund; On-going On-going Continue to alleviate the necessity of delays in Development Private developer processing, and mitigating requirements incorporated Department, cost recoverable into the development plans by requiring program Redevelopment environmental impact reports (EIR) on all major Agency development projects whenever possible. Housing Element Policies: 1.11 1.27 Density Bonus Program Community General Fund, Process all requests for On-going Promote Density Bonuses to facilitate the construction of Development Redevelopment density bonuses. affordable housing. Under State law, applicants may file Department Agency Housing for density bonuses when projects incorporate 20 percent Set -Aside Funds of units for low-income persons; 10 percent of units for very low-income units; or 50 percent of units for senior citizens. Housing Element Policies: 1.11 1.28. MCAS -Tustin Redevelopment Project Area. Tustin Community Redevelopment Adopt MCAS -Tustin By Fiscal Year 2002-03 Redeveloment Agency Agency funds Specific Plan and The City anticipates the creation of a new redevelopment Redevelopment Project project area for MCAS -Tustin site through the adoption Area of a Specific Plan by the City and a Redevelopment Project Area by Fiscal Year 2002-03. Housing Element Policies: 1.2; 1.6; 1.8 CITY OF TUSTIN HOUSING ELEMENT November 2002 88 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe Goal 2: Equal Housing Owortunity 2.1 Fair Housing Community Develop- CDBG funds Assist approximately 400 On-going; complete The City shall continue to contract for the provision of ment Department, Fair Tustin residents annually, educational resources by services by the Fair Housing Council of Orange County Housing Council of 2,000 residents by 2005. 2003. (FHCOC) to assure equal housing opportunities within Orange County the City. The City allocates approximately $15,000 annually to the FHCOC for handling tenant/ landlord disputes, housing discrimination cases, counseling, tenant rights, fair housing education, and education within the City. The City will promote the fair housing educational resources offered by adding Fair Housing information in the City's webpage, Code Enforcement brochure, and the Community Development directory. Housing Element Policies: 2.1, 2.2, 2.4 2.2 Shared -Housing TLC, Parks and CDBG funds Continue On-going Continue to provide coordination and support to a home Recreation Services sharing program funded in part by the Feedback Department, and Foundation, Inc. as part of TLC (Transportation Lunch Community and Counseling) and the Orange County Housing Development Authority. Department Housing Element Policies: 2.3 CITY OF TUSTIN HOUSING ELEMENT November 2002 89 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Pro am Responsible Agency Funding Source Quantified Objective Timeframe 2.3 Housing Referral Program Police Department; City General Fund, • 8,750 referrals to social On-going Continue to provide housing referral services to families Parks and Recreation CDBG Funds agencies by 2005 in need of housing assistance and information. This Department; program consists of three City departments Community • 50 referrals for shared disseminating information to the public at all times. Development; housing by 2005 • The Police Department refers homeless people to Redevelopment different agencies that provide shelters and food for Agency various segments of the population. • The Parks and Recreation Services Department provides housing information and social service information to the senior citizen population. • The Community Development Department and Redevelopment Agency provide housing and social service information to all segments of the population during regular city hall business hours. The Community Development Department also serves as a clearinghouse for the Community Development Block Grant Program and represents the City at Housing Authority and OCHA Advisory Committee Meetings. City departments utilize the following documents and also make these documents available to the public: • Directory of Senior Citizen's Services prepared by the Area Agency on Aging Senior Citizen's Office • Social Service Assistance Booklet prepared by Connection Plus • Orange County Housing Directory prepared by OCHA and the OCHA Advisory Committee. Housing Element Policies: 2.2, 2.3, 2.4, 2.5 Ongoing Review of Housing Element Programs See Progam1.19 Consolidated Plan See Program 1.20 CITY OF TUSTIN HOUSING ELEMENT November 2002 90 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe Goal 3: Ownership Housing 3.1 Condominium Conversions Community City General Fund, Impose requirements On-going Continue to require developers converting apartments to Development Redevelopment where applicable. condominiums to process a conditional use -permit, Department, City Agency Housing provide relocation assistance, and/or to provide Council, Set -Aside Funds incentives and assistance for purchase of the units by Redevelopment low- and moderate -income households. Agency Housing Element Policies: 3.1, 3.2, 3.3 3.2 State Home -Ownership Assistance Redevelopment Redevelopment Assist 30 First time On-going The City's Redevelopment Agency provides a First Time Agency Agency Housing homebuyers by 2005 2005 Homebuyers program utilizing housing set-aside funds. Department, Federal Set -Aside Funds; 2005. The City also plans The Redevelopment Agency also applies for and will State and Federal explore the use of other funding opportunities such as sources HELP, HOME funds, and other State and Federal programs. Housing Element Policies: 3.1, 3.3 Bonding Programs See Program1.14 Ongoing Review of Housing Element Programs See Program1.19 Consolidated Plan See Program1.20 Goal 4: Affordable Housing Preservation 4.1 Replacement Housing Redevelopment Redevelopment As necessary As necessary Ensure rehabilitation or construction of an equal number Agency Agency Housing of replacement units when low and moderate income Set -Aside Funds; residential units are destroyed or removed from the Private developers market as part of a specific redevelopment project pursuant to California Community Redevelopment law. Housing Element Policies: 2.5 4.2 Housing Rehabilitation' Community CDBG and The City plans to Rehabilitate 100 units by Allocate available CDBG and Redevelopment Agency Development Redevelopment Rehabilitate 100 units by 2005 funds to finance public improvements and rehabilitation Department, Federal Agency Housing 2005. The City also plans CITY OF TUSTIN HOUSING ELEMENT November 2002 91 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe of residential units in target areas. Department of Housing Set -Aside Funds to increase and Urban homeownership Housing Element Policies: 1.2,5.1, 5.2 Development opportunities, conserve, Redevelopment maintain, and rehabilitate Agency and promote conservation of City's housing stock. 4.3 Housing Authority Orange County HUD, CDBG, Continue On-going Contract with the Orange County Housing Authority, Housing Authority, Redevelopment where necessary, for the development and operation of Redevelopment Agency Housing federally assisted low- and moderate -income housing Agency Set -Aside Funds programs. Housing Element Policies: 1.5,1.16,1.17 4.4 Rental Assistance County of Orange HUD Issue 200 certificates/ On-going Encourage the availability of Section 8 rental assistance Housing Authority vouchers annually -1,000 certificates and voucher certificate program assistance by 2005. funds through the Orange County Housing Authority. To encourage the maintenance of existing and establishment of new certificates, support the County's efforts to obtain continued Federal funding. Housing Element Policies: 4.1, 4.2 4.5 Affordable Senior Housing Project and Senior Community None necessary Maintain 38 units of On-going Board and Care Facility Development affordable Senior To maintain 38 units of affordable housing for Seniors Department Housing. located at 17432-17442 Mitchell Avenue (20 units) and a senior citizen board and care facility in operation at 1262 Bryan Avenue (18 units). Housing Element Policies: 5.1, 5.2, 5.3, 5.4 4.6 Preservation of Assisted Housing Community • CDBG Preserve 100 units On-going Tustin has four low-income housing projects with a total Development currently at greatest risk of 100 units at risk of conversion to market rate in 2001. Department, • Redevelopment If project owners choose to convert the projects to market Redevelopment Housing Set- etrate ratehousing, coordinate the provision of financial and Agency Aside Funds, administrative resources to preserve these units as State and Federal affordable housing. Funds CITY OF TUSTIN HOUSING ELEMENT November 2002 92 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe a) Monitor Units at Risk: Maintain contact with owners of at risk units as potential conversion dates approach to • Low Income Tax determine whether Section 8 contracts or affordability Credits, Private covenants have been renewed or are planned to be Activity renewed. Discuss with the owner of the "at risk" projects Mortgage the City's desire to preserve the units as affordable. Revenue Bonds b) Tenant Education. Work with tenants of at risk units in danger of converting. Provide tenants with information Variety of other regarding potential tenant purchase of buildings in- sources cluding written information and any related workshops. Act as a liaison between tenants and nonprofits potentially involved in constructing or acquiring replacement housing. If existing staff is not able to provide adequate staffing for this program, provide outside consultants to support the program. c) Work with Nonprofits. Work with nonprofit housing providers to explore and if appropriate, facilitate acquisition or replacement of at risk units. d) Reserve Fund. Earmark development housing set- aside funds to assist priority purchasers with the down - payment and closing costs associated with purchasing projects at risk. Continue to monitor other potential funding sources, such as State grants and HUD funds. Housing Element Policies: 4.1, 4.2, 4.3, 4.4 Mobile Homes See Program 1.2 Deed Restrictions: See Program 1.4 Tax Increment Financing See Program 1.8 Transitional Housing See Program 1.10 Ongoing Review of Housing Element Programs See Program 1.19 Consolidated Plan See Program 1.20 CITY OF TUSTIN HOUSING ELEMENT November 2002 93 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program ` Responsible Agency Funding Source Quantified Objective Timeframe Goal 5: Neighborhood Conservation 5.1 Enforcement of Building and Housing Codes Community City General Fund Investigate 150 On-going Continue to enforce building and housing codes to Development substandard housing ensure health and safety, rectify Code violations and Department cases annually and 750 thereby improve the overall character of the community. cases by 2005. Enforcement will include identifying substandard housing units and those that are otherwise identified as a threat to the health and safety of occupants. Actions will be taken pursuant to the law to demolish, rebuild, or correct the code violations. This program includes notification of taxing agencies upon failure to gain code compliance from the property owner to allow City to recover enforcement cost. Housing Element Policies: 5.3, 5.4 5.2 CDBG Funds for Commercial Rehabilitation Community CDBG Receipt of $20,000 $100,000 by 2005 Continue to make applications for CDBG funds. Promote Development annually, approximately the availability of these funds for rehabilitation by news- Department $100,000 by 2005. paper articles, announcements in Tustin Today (a City publication that is mailed to all households) Housing Element Policies: 1.2, 5.1, 5.2, 5.3, 5.4 CITY OF TUSTIN HOUSING ELEMENT November 2002 94 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 5.3 Cultural Resources District Community CDBG, City General Rate historic structures On-going There are a large number of structures in the City that Development Fund, State grants where applicable and were constructed before and after the turn of the century. Department process 20 certificates of Continue to utilize the City's Cultural Resources Overlay appropriateness. District to safeguard the heritage of the City by preserving neighborhoods and structures that reflect the City's heritage and past. Through the District, promote the public and private enjoyment, use and preservation of culturally significant neighborhoods and structures. Continue to require that any alteration of a designated resource or construction improvements in the District conform to the requirements of the Cultural Resources Overlay District. Owners of historic landmarks or properties within the District are required to obtain a certificate of appropriateness before beginning any type of exterior construction, alteration, or demolition. A certificate of appropriateness certifies that the proposed changes are consistent with the design guidelines and are appropriate within the district context. Housing Element Policies: 5.5 Ongoing Review of Housing Element Programs See Program 1.19 Consolidated Plan See Program 1.20 Building Codes See Program 1.23 Goal 6: Environmental Sensitivity 6.1 Energy Conservation Community Require all new construction to be subject to State energy Development conservation requirements (Title 24) as a condition for the Department issuance of a building permit Element Policies: 6.2 None necessary Require all new unitsI On-going within planning period. CITY OF TUSTIN HOUSING ELEMENT November 2002 95 Table H- 22 HOUSING ELEMENT PROGRAMS 2000-2005 Program Responsible Agency Funding Source Quantified Objective Timeframe 6.2 Solar Energy and Conservation Community None necessary On-going On-going Require that Environmental Impact Reports and Development subdivision plans address energy conservation measures Department and solar access. Include, as necessary, project conditions to ensure that developers implement the requirements of Title 24. Housing Element Policies: 6.2, 6.3 Ongoing Review of Housing Element Programs See Program 1.19 Consolidated Plan See Program 1.20 CITY OF TUSTIN HOUSING ELEMENT November 2002 96 Appendix to Housing Element APPENDIX A REVIEW OF PAST PERFORMANCE CITY OF TUSTIN HOUSING ELEMENT 97 November 2002 Appendix to Housing Element This page intentionally left blank. CITY OF 7~STIN HOUSING ELEMENT 98 November 2002 Appendix to Housing Element REVIEW OF PAST PERFORMANCE State law establishes a five-year cycle regulating housing element updates. In compliance with the SCAG cycle, the Tustin Housing Element was updated in 1989 and 1994, and found to be in compliance with State law. The City of Tustin processed in 2000 a Housing Element amendment to address the Reuse/Specific Plan for the development of the MCAS and to ensure consistency with the General Plan. In March 2000, the State HCD reviewed and found this update to be in compliance with State law. Review of Past Element 1989-1997 Objectives The SCAG Regional Housing Allocation Model indicated a new construction need in Tustin by 1994 of 2,085 units, of which 390 units were for very low-income households, 488 for low income, 484 for moderate income and 724 upper income. The following discussion highlights the progress, effectiveness and appropriateness of 1989-1997 Housing Element Objectives and the progress achieved during the 1998 to 2000 time period. Table HTM- 35 in the Technical Memorandum provides a s~ of the City's overall accomplishments for the years 1989-2000, broken into three time periods. As indicated in Table HTM-35, the City was successful in accomplishing the majority of the objectives established for the past planning period. According to City Staff, the following objectives were met or exceeded: New construction 3,920 units were conslaxtcted during the 1989-1994 RHNA period, with an additional 1,771 constructed between 1994-1997, and 3 granny units, for a total of 5,694 units, exceeding the City's objective of 5,000 units for the planning period. Although the overall objective was exceeded, the quantified objective for conshnaction of units affordable to Very Low-income households was not achieved. During 1998-2000, the City has achieved the construction of 1,378 units towards the new planning period. CITY OF TUSTIN HOUSING ELEMENT 99 November 2002 Appendix to Housing Element Mobile homes The objective to maintain existing units was accomplished. Tenant protection An objective of 20 residents was significantly exceeded with 1,700 residents receiving assistance during 1989-1994 and 1,457 residents receiving assistance during 1995-97, for a total of 3,157 residents. An additional 634 tenants received assistance between 1998-2000. Deed restricted affordable units The objective of requiring 100 deed restrictions by 1994 was met. Deed restrictions associated with the assistance of any public or Redevelopment Agency funds were imposed on an additional 231 units during 1995-1997. An additional 207 deed restrictions were established between 1998-2000 towards the new planning period. Enforcement of building codes Code Enforcement activities were vigorous and approached the objective of 1,500 actions over the planning period. Housing rehabilitation Utilizing CDBG and Redevelopment Agency Set-Aside funds, the 80 unit objective was exceeded by 104 units in the 1989-1994 RHNA period, with an additional 201 units rehabilitated under the Owner Occupied, Rental Rehabilitation Loans and Grants, and Multi-family Acquisition/Rehabilitation/Conversion programs between 1995 to 1997. 3 units have been rehabilitated during 1998-2000. Shared housing The Shared Housing program exceeded the objective of 25 cases by 1994 by 35 units, and meeting the objective of 10 cases per year between 1995 through the end of 1997. There have been 25 cases during 1998-2000. CITY OF TUSTIN HOUSING ELEMENT lOO November 2002 Appendix to Housing Element Use of RDA Set-Aside funds, provision of land cost write downs and other .financial assistance Between 1989-1997, 182 households were assisted with affordable housing utilizing tax increment financing in a number of projects within the Redevelopment Project areas. One project, Tustin Grove, was assisted by a land cost write-down, although the actual 2.5 M targeted amount for allocation during the planning period was not met. However, an additional 2.1 M was allocated during 1998-2000 for the Warmington Ambrose Lane project. An additional 40 households have been assisted between 1998-2000 towards the achievement of the objective for the new planning period. · Retrofits for disabled households The objective for 25 new and retrofitted units to accommodate the disabled was exceeded by 10 units during the 1989 to 1997 time period. An additional 6 units have been created between 1998-2000. Preservation of units at-risk of conversion to market rate 150 of the Orange Gardens units were preserved between 1989-1997. Although the objective was to preserve 160 units of assisted housing, the 10 unit shortfall was due to loss of units resulting from Caltrans widening of the Santa Ana (I-5) freeway. Preservation efforts continued with the preservation of 100 units at Tustin Gardens. Homeless and transitional shelter facilities Studies for assisting homeless providers have been completed. Funding has been allocated to implement the plans with two separate programs at the MCAS-Tustin. Rehabilitation of housing in Cultural Resources District The number of rehabilitated units exceeded the 25 unit objective by 1994. An additional 20 units were rehabilitated between 1995-98, bringing the total achieved to 49 units. Nine units were rehabilitated towards the objective of 20 units in the new planning period. CITY OF TUSTIN HOUSING ELEMENT 101 November 2002 Appendix to Housing Element Zoning studies A density bonus ordinance .was adopted in 1999, and mixed use zoning adopted in the Old Town district. Waiver of fees for projects with affordable rates Fees were waived for 25 projects between 1989-1997. One project has been processed with reduced fees between 1998-2000. Section 8 vouchers Although the number of Section 8 vouchers utilized in the City was not available for the 1989-1994 period, 778 vouchers were implemented by the end of the 1989-1997 period. This number assumes that the number of vouchers applied in the City increased by at least 10 units over the total planning period. An additional 632 vouchers were initiated between 1998-2000 towards the objective of 1,500 vouchers by 2005. The following objectives were not met: Use of CDBG funds The amount of CDBG funds received during the 1989-1994 planning period failed to meet the targeted amount by $464,000. Annual allocations between 1994-2000 have also failed to meet the objective for the new pl.anning period. However, this shortfall was bridged with the allocation of redevelopment funds. Second units 10 units were targeted for the 1989-1994 RI-INA period. The targeted number fell short by 8 units, as 2 units were constructed. A third unit was constructed in the 1995-97 time period. Despite incentives provided by the City, this type of housing unit has proven not to be a popular method of supplying housing. In addition, it is difficult for the City to monitor the affordabflity of such units as the units are on private property and there is no way to guarantee whether these units are for relatives or are used as rentals. The costs of construction and the economic downturn of the early 1990's may have also deterred property owners from participating. Although a CUP is CITY OF TUSTIN HOUSING ELEMENT 102 November 2002 Appendix to Housing Element required to implement, the zoning regulations are flexible. The City will continue to encourage such projects and attempt to ensure maintenance of affordable units through CC&Rs that guarantee affordability of the unit in perpetuity. One unit has been processed between 1998-2000. Monitor the implementation of the affordable housing program adopted as a part of the East Tustin Specific Plan The objectives for 100 very low and 500 Iow income units has not been achieved. Three income-restricted projects with a total of 174 units, of which 52 are for very low-income households and 122 are for low-income households were developed through 1994. In addition, a number of market-rate apartment units were built that the City has not tracked as to income category. Based on current market statistics, many of those are also assumed to be within the lower- income categories. First time homebuyers The objeCtive for providing homebuyers assistance has been met, but not at levels anticipated. While no households were assisted during the 1989-1997 time period, the City has made first time homebuyers assistance a priority in their Consolidated Plan and Redevelopment Area Five Year Plan through the movement of funds supporting the Mortgage Credit Certificate Program. Through the implementation of the Downpayment Assistance Program, assistance was made to 8 households between 1998-2000. In addition, 48 Mortgage Credit Certificates were issued through the County of Orange between 1997 and 2000. Bond financed projects The studies for analysis of available programs were completed within the planning period. Three projects were financed using this method. Due in part to the downturn in the housing market in the early 1990s, the Hampton Square Apartments were the only project financed during the planning period by Mortgage Revenue Bonds in October 1996. The project contains a total of 150 low-income restricted units. In addition, the Orange Gardens and Flanders Pointe projects were financed between 1998 and 2000. The City will seek ClTY OF TUSTIN HOUSING ELEMENT 103 No vember 2 002 Appendix to Housing Element opportunities to implement this form of financing for the construction of new housing with affordability components. The City has also been utilizing other funding resources for assisting developers and non-profits in the generation of housing with affordable units. Recycling of underutilized single-family units to multi-family units Only one unit was developed through the recycling of single-family units in R-3 zones to multi-family units. There appeared to be a lack of interest in the community to recycle land to higher densities, as vacant land was still available, and the economic status in California was depressed during a large portion of the planning period. As available vacant land diminishes, this will become a more attractive option to property owners. The City should continue to promote lot consolidation and recycling potential. It is clear that the City was successful in implementing a number of programs. However, the greatest shortfall in reaching objectives' occurred in the provision of opportunities for recycling of underutilized land to higher residential densities. CITY OF TUSTIN HOUSING ELEMENT 104 November 2002 Appendix to Housing Element APPENDIX B AFFORDABILITY GAP ANALYSIS cITY OF TUSTIN HOUSING ELEMENT 105 November 2002 Appendix to' Housing Element This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT 106 November 2002 Appendix to Housing Element SUMMARY OF PER UNIT OWNERSHIP AFFORDABILITY GAPS CITY OF TUSTIN 1999 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. The gap assumes that homeowners obtain permanent mortgages from private lenders at market rates. Prototype projects are as follows: New construction attached ownership project of 100 units; new construction single family detached ownership "small lot" project of 45 units; acquisition/ rehabilitation four-plex conversion to ownership of 100 units. Source: Comprehensive Housing Affordability Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT December 2001 107 Level II Level III Level IV Income Level Level I 50% to 80% of Median 80% to 100% of Median 120% of Median Definition: 50% of Median Income Income Income Income Affordable Housing 30% of 50% of Median 30% of 70% of Median 35% of 100% of Median 35% of 110% of Cost Definition: Income, Adjusted for Family Income, Adjusted for Family Income, Adjusted for Family Median Income, size Size Size Adjusted for Family Size Affordability Ga 1 Per Unit Per Unit Per Unit Per Unit New Construction attached $202,196 $157,294 $57,864 $57,864 New Construction small lot/detached $324,536 $275,376 $168,652 $168,652 Acquisition/ Rehabilitation $152,351 $110,296 $75,675 $75,675 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. The gap assumes that homeowners obtain permanent mortgages from private lenders at market rates. Prototype projects are as follows: New construction attached ownership project of 100 units; new construction single family detached ownership "small lot" project of 45 units; acquisition/ rehabilitation four-plex conversion to ownership of 100 units. Source: Comprehensive Housing Affordability Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT December 2001 107 Appendix to Housing Element SUMMARY OF PER UNIT RENTAL AFFORDABILITY GAPS CITY OF TUSTIN 1999 1 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. To identify the gap amounts for levels I, and H an assumption is made that developers obtain permanent mortgages from private lenders at market rates and investors equity from the syndication of both federal and state low income housing tax credits. To identify the gap amounts for Level III, an assumption is made that developers obtain permanent mortgages from private lenders at market rates. Prototypes are as follows: new construction of a 60 unit senior housing project; large project acquisition and rehabilitation of 80 units; and, acquisition/rehabilitation fourplex of 100 units. Source: Comprehensive Housing Affordability Strategy 2000-10. CITY OF TUSTIN HOUSING ELEMENT November 2002 108 Level II Income Level Level I Between 50% to 80% of Level III Definition: Below 50% of Median Income Median Income Above 80% of Median Income 30% of 48% of Median Income, 30% of 60% of Median 35% of 110% of Median Affordable Housing Adjusted for Family size Income, Adjusted for Family Income, Adjusted for Family Cost Definition: Size Size Affordability Ga 1 Per Unit Gap Per Unit Gap Per Unit Ga New Construction $23,583 $45,993 $10,217 senior Acquisition/ rehabilitati on Large project $30,388 $21,621 $0 moderate rehabilitation Acquisition/ $69,980 $89,783 $47,143 Rehabilitation Four lex 1 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. To identify the gap amounts for levels I, and H an assumption is made that developers obtain permanent mortgages from private lenders at market rates and investors equity from the syndication of both federal and state low income housing tax credits. To identify the gap amounts for Level III, an assumption is made that developers obtain permanent mortgages from private lenders at market rates. Prototypes are as follows: new construction of a 60 unit senior housing project; large project acquisition and rehabilitation of 80 units; and, acquisition/rehabilitation fourplex of 100 units. Source: Comprehensive Housing Affordability Strategy 2000-10. CITY OF TUSTIN HOUSING ELEMENT November 2002 108 Appendix to Housing Element APPENDIX C PUBLIC PARTICIPATION MAILING LIST CITY OF TUSTIN HOUSING ELEMENT 109 November 2002 Appendix to Housing Element This page intentionally left blank, CITY OF TUSTIN HOUSING ELEMENT 110 November 2002 APPENDIX C PUBLIC PARTICIPATION MAILING LIST Appendix to Housing Element Kathleen Maloney Mercy Charities Housing 500 S. Main Street, #110 Orange, CA 92868 Maria I. Marquez Interim Division Manager Adult Mental Health Services 405 West Fifth Street, Suite 550 Santa Ana, CA 92701 Maury Ruano Mercy Housing 500 S. Main Street #110 Orange, CA 92868 Randy Gibeaut Community Housing Resources 1411 North Broadway Santa Ana, CA 92706 Nia Tang City of Garden Grove 11222 Acacia Parkway Garden Grove, CA 92842 Lisa Hill CDFI Clearing House 23861 E1 Toro Road #401 Lake Forest, CA 92630 949-859-3600 (W) 714-259-1236 (H) Lisa Ramirez 14901 Newport Avenue #143 Tustin, CA 92780 714-957-4647 Lynne Fishel, CEO BIA Orange County Chapter 9 Executive Circle, Suite 100 Irvine, CA 92614 Bart G. Hess Affordable Home Owners Alliance 2 Park. Plaza, Suite 100 Irvine, CA 92614-5904 (949) 476-2242 ext. 219 David Levy OC Fair Housing Council 201 S. Broadway Santa Ama, CA 92701 Jim Palmer, President Orange County Rescue Mission 1421 Edinger Avenue, Suite B Tustin, CA 92780 714-258-4460 Public Law Center 600 Civic Center Drive West Santa Ama, CA 92701-4002 Karen Roper Homeless Issues Coordinator County of Orange 10 Civic Center Plaza, 3ra Floor Santa Ama, CA 92701 Paula Burrier-Lund, Director Orange County Housing/Community Development Dept. 1770 N. Broadway Santa Ama, CA 92706 Appendix to Housing Element Captain Lee Lescano The Salvation Army 10200 Pioneer Road Tustin, CA 92780 714-832-7100 Maya Dunne, Asst. Vice President SJHS Foundation & Community Outreach 500 S. Main St., Suite 1000 Orange, CA 92868 Dara Kovel, Associate Director Mercy Charities Housing California 500 S. Main St., Suite 110 Orange, CA 92868 Cynthia Campbell Human Options, Inc. (DOVE Housing) P.O. Box 9376 Newport Beach, CA 92658 714-435-9992 Margie Wakeham Families Forward P.O. 53093 . Irvine, CA 92619 949-552-2727 Joan B. Margol Orange Coast Interfaith Shelter 635 Vista Bonita Newport Beach, CA 92660 949-759-7551 Sheri Barrios, Executive Director Orange Coast Interfaith Shelter 1963 Wallace Avenue Costa Mesa, CA 92627 949-631-7213 November 2002 CITY OF TUSTIN HOUSING ELF. MF, NT ' 112 Veteran's Service Dept. 4220 Lemon Street Riverside, CA 92501 Dayle McIntosh Center 150 W. Cerritos, Bldg. 4 Anaheim, CA 92805 Orange Coast Interfaith Shelter 1963 Wallace Street, Apt. A Costa Mesa, CA 92627 YMCA Community Counseling Services 2 Executive Circle, Suite 280 Irvine, CA 92714 Assistance League of Tustin P.O. Box 86 Tustin, CA 92780 Families First 12012 Magnolia Street Garden Grove, CA 92641-3346 Tustin Area Historical Society & Museum 395 E1 Camino Real Tustin, CA 92780 Legal Aid Society of Orange County 902 N. Main Street Santa Ana, CA 92701 Community Services Program 16842 Von Karman, Suite 425 Irvine, CA 92714 Probation Community Action Assoc. 1111 N. Main Street, #176 Santa Aha, CA 92701 Mardan Center of Educational Therapy 10sbom Irvine, CA 92604 Susan Alexander New Horizons 13821 Newport Avenue Tustin, CA 92780 Helen Anderson Hunger Coalitions 14452 Wildeve Lane Tustin, CA 92780 Allen Baldwin OC Community Housing Corp. 1833 E. 17th Street, Suite 207 Santa Ana, CA 92701 Joan Basile Mary's Shelter 17671 Anglin Lane Tustin, CA 92780 Barbara Benson Tustin Area Council for Fine Arts P.O. Box 145 Tustin, CA 92781 Doug Bistry O.C. Affordable Housing 23861 E1 Toro Road, Suite 207 Lake Forest, CA 92640-4733 Helen Brown Civic Center Barrio 1665 E. 4th Street, #210 Santa Ana, CA 92701 Vanessa Bruner Learning for Life 3590 Harbor Gateway North Costa Mesa, CA 92626 Jerry Caminiti Disability Awareness Coalition 3773 University Drive, #118 Irvine, CA 92612 Patrick Carroll Life Share 11421 Garden Grove Boulevard Garden Grove, CA 92643 Shirley Cohen Feedback Foundation, Inc. 1200 N. Knollwood Circle Anaheim, CA 92801 Donna Core Meals on Wheels 1001 N. Tustin Santa Ana, CA 92707 Julie Damon The Seed Institute 6271 Tarssa Lane Mission Viejo, CA 92691 Pat Davis Big Brothers & Sisters of OC 14131 Yorba Street Tustin, CA 92780 John Drew Family Solutions 203 N. Golden Circle Drive, #101 Santa Ana, CA 92705 Jennifer Feldstein Women Helping Women 425 E. 18th Street #14 Costa Mesa, CA 92627-3161 John Von Glahn Family Service Association 18001 Cowan, # c-d Irvine, CA 92714-6801 Melinda Guinaldo Assessment & Treatment Services Center 1981 Orchard Road Newport Beach, CA 92660 Suzanne Guthrie Four H Clubs of Orange County 1045 Arlington drive Costa Mesa, CA 92626 Mary Hadley Info Line Orange County 2081 Business Center Drive, suite 130 Irvine, CA 92715 Larry Haynes Mercy House Transitional Living Ctr. P.O. Box 1905 Santa Ana, CA 92702 Colin Henderson Friendship Shelter, Inc. P.O. Box 4252 Laguna Beach, CA 92652 Elmer Hothus Christian Temporary Housing Facility 704 N. Glassell Street Orange, CA 92867 Warren Johnson Salvation Army 10200 Pioneer Road Tustin, CA 92780 Judy Johnson ESA/Corporate Office 23861 E1 Toro Road, Suite 207 Lake Forest, CA 92640-4733 Becky Johnson Alliance for the Mentally Ill 621 S. "B" Street, Suite B Tustin, CA 92780 Elizabeth Jones C.O.P.E.S. 2025 N. Broadway Santa Ana, CA 92706 JoAnn Ruden Tustin Public School Foundation 17411 Irvine Boulevard, #I Tustin, CA 92780 Susan Knopick Children's Bureau of So. Calif. 50 S. Anaheim Boulevard Ananheim, CA 92805 Robyn Class Orange Children & Parents Together 3550 E. Chapman Avenue Orange, CA 92869 Doris La Magna The Villa Center, Inc. 910 North French Santa Ama, CA 92701 Lila Lieberthal Jamboree Housing Corp. 2081 Business Center Drive Irvine, CA 92714 Elaine Lintner OCSPCA-Paws 5660 Avenida Antigua Yorba Linda, CA 92687 Jim Lynch Tustin Chamber of Commerce 399 E1 Camino Real Tustin, CA 92780 Theresa Marji Legal Aid of Orange County 902 N. Main Street Santa Ana, CA 92701 Wendy Marohnic Human Options Second Step P.O. Box 9445 South Laguna, CA 92677 Brenda Martin Laurel House 13722 Fairmont Way Tustin, CA 92780 Rowana McCoy Easter Seal Society, Inc. 1661 N. Raymond Ave., Suite 100 Anaheim, CA 92801 Sherry McCulley Legal Aid Society of Orange County 902 N. Main Street Santa Ama, CA 92701 Pamela McGovern OC Council of Aging 18552 McArthur Boulevard, #425 Irvine, CA 92715 Jim Miller Shelter for the Homeless 15161Jackson Street Midway City, CA 92655-1432 Roger Moore Lutheran Social Srvc. of Southern Calif. 704 N. Glassell Street Orange, CA 92867 Beverly Nestande Olive Crest Homes 2130 E. Fourth Street, Suite 200 Santa Ama, CA 92705 Cliff Polston Boys & Girls Club of Tustin 580 W. Sixth Street Tustin, CA 92780 David Quezada Fair Housing Council of O.C. 1666 N. Main Street, Suite 500 Santa Ana, CA 92701 Barbara Resnick Western Dev. for Affordable Housing 112 E. Chapman Avenue Orange, CA 92867 Joyce Riley Learning Disabilities of Souther Calif. P.O. Box 25772 Santa Ana, CA 92799 Jon Schlemmer St. Vincent de Paul Center for Reconciliation 2525 N. Grand Avenue, #N Santa Ana, CA 92703 Orange County Homeless Issues Task Force 1833 E. 17th Street Santa Ama, CA 92705-8629 Mary Atkinson Smith The Blind Children's Learning Center 18542-B Vanderlip Avenue Santa Ana, CA 92705 Susan Stokes Turning Point Center for Families 2101 E. 4th Street, #150-B Santa Ana, CA 92705-3814 Donald Taylor Veteran Charities of Orange County 201 S. Sullivan Street Santa Ana, CA 92704 Sister Marie Therese Lestormac Free Clinic 1215 E. Chapman Avenue Orange, CA 92869 Lynne Tsuda Central Orange County YWCA 146 North Grand Street Orange, CA 92866 Jean Wegener Serving People in Need 2900 Bristol St., Suite H-106 Costa Mesa, CA 92626 Clyde Weinman Irvine Temporary Housing 6427 Oak Canyon Irvine, CA 92620 Karen Weisenberger Consumer Credit Counseling Service P.O. Box 11330 Santa Ana, CA 92711 Tim Wells Episcopal Service Alliance 1872 Drew Way Orange, CA 92869 Randy Wenz Orange County Council 3590 Harbor Gateway North Costa Mesa, CA 92626 Thomas Whaling Shelter for the Homeless 24621 Ridgewood Circle Lake Forest, CA 92630 Kimberlee White The Eli Home, Inc. 3128 E. Chapman Avenue Orange, CA 92869 Carol Anne Williams Interval House P.O. Box 3356 Seal Beach, CA 90740 Bob Winandy Pilgrimage Family Therapy 27405 Puerta Real Suite 180 Mission Viejo, CA 92691-6314 This page intentionally left blank. Appendix to Housing Element APPENDIX D REFERENCES Appendix to Housing Element This page intentionally left blank. Appendix to Housing Element REFERENCES A. Documents 1. 1990 Census Report. U.S. Department of Commerce, Bureau of the Census. 2. California State Department of Finance, 1990, 1999. o e Demographic Profile and Survey of Homeless Persons Seeking Services in Orange County. The Research Committee of the Orange County Homeless Issues Task Force, 1999. Southern California Association of Governments, Regional Housing Needs Assessment, 1999. 5. City of Tustin, Zoning Ordinance. 6. City of Tustin, General Plan, as amended January 16, 2001. 7. Williams-Kuebelbeck & Associates, Old Town Market Analysis, October 16, 1991. ge . Second Five-Year Implementation Plan for The Town Center and South Central Redevelopment Project Areas (FY 2000-01 to 2004-2005), Tustin Community Redevelopment Agency, January 2000. Comprehensive Housing Affordability Strategy for Fiscal Years 2000-2001 to 2009-2010, Tustin Community Redevelopment Agency, February, 2000. 10. Final Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for the Disposal and Reuse of MCAS-Tustin (Program EIS/EIR for MCAS-Tustin), January 16, 2001. 11. City Council Staff Report, January 16, 2001. 12. Response to Comments, Final Volume 2 and 3 of Final Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for the Disposal and Reuse of MCAS-Tustin. 13. Marine Corps Air Station (MCAS) Tustin Specific Plan/Reuse Plan, October 1996 and September 1998 Amendments. 14. Masterplan Marine Corps Air Station Tustin, DON 1989. 15. State of California, Department of HCD, Web-site. B. Persons and Organizations . Mary Ann Barajas, Manager Christian Temporary Shelter, Tustin (714) 771-2969 , , Barbara Bishop, Receptionist Aldergates (714) 544-3653 Kathy Novak The Sheepfold Shelter, Tustin (714) 669-9569 4. Susan Oakson, Executive Director Orange County Homeless Issues Task Force . Christine A. Shingleton, Assistant City Manager~ Tustin Community Redevelopment Agency (714) 573-3107 , Elizabeth A. Binsack, Community Development Director Community Development Department, Tusfin (714) 573-3031 o Lois Jeffrey, City Attorney 701 S. Parker Street, Suite 8000 Orange, CA 92868-4760 . Jim Draughon, Redevelopment Program Manager Tustin Community Redevelopment Agency (714) 573-3121 Appendix to Housing Element , Justina Willk°m, Associate Planner Community Development Department, Tustin (714) 573-3174 10. Grace Schuth, Receptionist Tustin Presbyterian Church (714) 544-7070 11. Officer G. Vallevienie Tustin Police Department (714) 573-3200 12. Jean Williams, Receptionist St. Cecilia's Church (714) 544-3131 Appendix to Housing. Element Housing Element TUSTIN TECHNICAL MEMORANDUM November 2002 This page intentionally left blank. Section TABLE OF CONTENTS INTRODUCTION STATE LAW AND GENERAL PLAN GUIDELINES SOURCES OF INFORMATION SUMMARY OF HOUSING ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS Page HOUSING NEEDS ASSESSMENT POPULATION/EMPLOYMENT TRENDS HOUSEHOLD CHARACTERISTICS HOUSING STOCK CHARACTERISTICS ASSISTED HOUSING PRESERVATION ANALYSIS CONSTRAINTS TO THE DEVELOPMENT, IMPROVEMENT AND MAINTENANCE OF HOUSING GOVERNMENTAL CONSTRAINTS MARKET CONSTRAINTS ENERGY CONSERVATION 9 15 30 40 53 53 65 70 SUMMARY OF PREVIOUS HOUSING ELEMENT PROGRAMS PROGRESS IN IMPLEMENTING THE 1989 GOALS AND OBJECTIVES REVIEW OF PAST PERFORMANCE REFERENCES 102 CITY OF TUSTIN- TECHNICAL MEMORANDUM HOUS1NG ELEMENT NOVEMBER 2002 LIST OF TABLES Table HTM-1 Population Growth 1980-1999 City of Tustin, Surrounding Jurisdictions and Orange County Table HTM-la Population Projections Table HTM-2 Age Trends 1990 - 1997 Table HTM-3 Race and Ethnicity: 1980,1990,1997 Table HTM-4 Employment by Occupation 1990 Table HTM-5 Employment by Industry 1990 Table HTM-6 Household Type: 1980 - 1999 Table HTM-7 Household Size 1980 Through 1999 Table HTM-8 Households in Overcrowded Conditions 1999 Table HTM-9 Median Household Income: Tustin and Surrounding Areas 1990 Table HTM-10 Estimated Household Income Distribution: 1990 and 1999 Table HTM-11 Estimated Household Income Distribution by Age of Head of Household 1999 Table HTM-12 Households Overpaying for Shelter 1999 City of Tustin Table HTM-13 Disability Classification Table HTM-14 Household Size Distribution 1999 City of Tustin Table HTM-15 Homeless Sub-Population Groups 1999 Orange County Table HTM-16 Emergency Shelter/Transitional Housing Facilities 1999 Table HTM-17 Housing Growth Trends 1980 - 1999 Tustin and Surrounding Areas Table HTM-18 Tustin Residential Unit Mix 1990 - 1999 Table HTM-19 Vacancy rates 1999 Table HTM-20 Tenure 1990 and 1999 Table HTM-21 Age of Housing Stock Table HTM-22 Distribution of Owner-Occupied Housing Units by Value 1999 Table HTM-23 Resale Price of Homes and Condominiums Tustin and Neighboring Jurisdictions December, 1999 Table HTM-24 Average Rental Rates 2000 Table HTM-25 Maximum Rent and Purchase Price by Income Category 1999 Page 10 11 11 13 14 15 16 16 18 20 20 21 23 24 25 26 29 30 31 31 32 33 33 35 37 37 CITY OF TUSTIN- TECHNICAL MEMONAND UM HOUSING ELEMF~NT NOVEMBER 2002 Table HTM-26 2000-2005 Housing Needs Table HTM-27 At Risk For Conversion in 2000-2005 Table HTM-28 Assisted Housing Inventory Table HTM-29 Cost of Replacing and Acquisition/Rehabilitation of Assisted Units Table HTM-30 Fair Market Value - Orange County Table HTM-31 Cost of Providing Rental Subsidy for Very Low Income Households Table HTM-32 General Plan Residential Land Use Categories Table HTM-33 Summary of Residential Zoning Regulations City of Tusffn Table HTM-34 Comparative Development Fee Summary ~ Table HTM-35 Summary Table Effectiveness of Housing Element Programs: 1989-2000 Table HTM-36 Effectiveness of Housing Element Programs 1989 - 2000 Table HTM 37 Progress Towards objectives 1989 - 2000 39 43 43 48 49 50 54 57 63 73. 74 94 CITY OF TUST1N - TECHNICAL MEMORANDUM HOUSING ELEMENT NOVEMBER 2002 This page intentionally left blank. CITY OF TUSTIN- TECHNICAL MEMORANDUM HOUSING ELEMENT NOVEMBER 2002 INTRODUCTION This memorandum is a reference document intended to provide background data that will serve as a partial basis for policies and programs in the Housing Element. In accordance with State law a significant amount of data is required in this memorandum. Where possible, the data has been summarized in graphic form (table, bar charts, and pie charts) for easy reference. The reader is urged to use the table of contents at the front of this document as a guide. Once the Housing Element has been completed, the Technical Memorandum will be appended to it. State law largely determines the content of this Technical Memorandum. Five sections follow the introduction. The Summary of Housing Issues, Conditions, Opportunities and Constraints provides an overview of the key issues facing the City, which are addressed by the Goals, policies and programs of the Housing Element. The Housing Needs Assessment section addresses housing needs. More specifically, it discusses how the population has grown and changed, how households are changing (i.e., size, composition), and how the housing supply itself is changing. This section also analyzes the potential loss of assisted lower income housing units in the City. The third section addresses governmental and non-governmental constraints, such as market condition, and natural environment, to housing development. The fourth section addresses energy conservation. Finally, the fifth section summarizes the housing issues, opportunities, and constraints that have emerged through background research and public meetings and which must be addressed in the Housing Element. STATE LAW AND GENERAL PLAN GUIDELINES The State of California provides very specific requirements and guidelines for preparing Housing Elements. This section describes those requirements and explains the relationship between this element and the rest of the General Plan. Legislative Requirements The State of California requires that each jurisdiction prepare and adopt a Housing Element. The State Requirements for Housing Elements are far stricter and more detailed than for any other General Plan Element. CITY OF TUSTIN - TECHNICAL MEMORANDUM HOUSING ELEMENT NOVEMBER 2002 State Planning law requires local governments to review their housing elements as frequently as appropriate and to revise the elements as appropriate, not less than every five years. The third revision date for jurisdictions within the Southern California Association of Governments (SCAG) is December 31, 2000. The planning period for the Regional Housing Needs Assessment (RHNA) as prepared by SCAG, is from January 1998 to June 2005, a seven and one-half year period. The implementation period covered by this element is July 2000 through June 2005. By 2003, the City, along with other jurisdictions in the SCAG region, again will begin preparation for a revision of the housing element to cover the period from 2005-2010. Organization of the Housing Element Under the provisions of Section 65583 of the Government Code, the Housing Element shall generally consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement, and development of housing. The Housing Element shall identify adequate sites for housing, including rental housing, factory-built housing, and mobile homes, and shall make adequate provision for the existing and projected needs of all economic segments of the community. More specifically, the Housing Element must meet the requirements outlined below. A. An assessment of housing needs and an inventory of resources and constraints relevant to meeting these needs. The assessment and inventory shall include the following: . Analysis of population and employment trends and documentation of the locality's existing and projected housing needs for all income levels. These existing and projected needs shall include the locality's share of the regional housing needs in accordance with Section 65584. , Analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. 3. An inventory of land suitable for residential development, including vacant sites and sites having potential for CITY OF TUSTIN- TECHNICAL MEMORANDUM HOUSING ELEMENT NOV'EMBER 2002 B, redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. . Analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. , Analysis of potential and actual non-governmental constraints upon the maintenance, improvement, development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. . Analysis of any special housing needs, such as those of the handicapped, elderly, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter. 7. Analysis of opportunities for energy conservation with respect to residential development. A statement of the community's goals, quantified objectives, and policies relative to the maintenance, improvement, and development of housing. It is recognized that the total housing needs identified pursuant to Section 65583(a) may exceed available resources and the community's ability to satisfy this need within the content of the general plan requirements. Under these circumstances, the quantified objectives need not be identical to the identified existing housing needs, but should establish the maximum number of housing units that can be constructed, rehabilitated, and conserved over a five-year time frame. C. A program which sets forth a five-year schedule of actions the local government is undertaking or intends to undertake in order to implement the policies and achieve the goals and objectives of the housing element through 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 CITY OF TUSTIN- TE, CHNICAL ME, MORAND UM HOUSING E, LE, ME, NT NO VE, MBF_,R ,2002 make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following: le Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing, factory-built housing, mobile homes, emergency shelters and transitional housing in order to meet the community's housing goals. 2. Assist in the development of adequate housing to meet the needs of low- and moderate-income households. o Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. 4. Conserve and improve the condition of the existing affordable housing stock. Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, or color. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals. The local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. In addition, an amendment to housing element law (Chapter 1451, Statutes of 1989) requires all housing elements to include additional need analyses and programs to address the potential conversion of ali Federal, State and locally assisted housing developments that are eligible to convert to market rate use during the next ten-year period. Such units are considered to be "at risk" of being lost as part of the affordable housing stock. CITY OF TUST1N- TECHNICAL MEMORANDUM HOUSING ELEMENT NOVEMBER 2002 Relationship to Other General Plan Elements The preparation of the City's Housing Element must conform t° Section 65580 of the California Government Code. The Legislature has established a policy that the availability of housing in a suitable environment is of vital statewide importance, and a priority of the highest order. State policy requires local governments to address the housing needs of all economic segments, while considering the economic, environmental and fiscal factors and community goals set forth in the General Plan. While a city must consider housing needs for all economic segments, it must also maintain internal consistency among the various elements of the General Plan. Neither the Housing Element nor any other element may supersede any other required element of the Tustin General Plan. The Housing Element relates to other elements in a variety of ways. The Land Use Element directly relates to the Housing Element by designating areas of the City in which a variety of residential types and densities may exist. The Housing Element's relationship to the Conservation, Open Space, and Recreation Element is conditioned by the need to serve a growing population's recreational needs, especially in the areas of the City with the highest density. The Circulation Element attempts to provide an efficient and well- balanced circulation system. This system must be designed to accommodate allowed land uses, including residential uses, and the intensity of allowable uses must not exceed the ultimate capacity of the circulation system. The Safety Element relates to the Housing Element by designating areas that are deemed unsafe for development, such as the Alquist- Priolo Zones and floodplains. Similar to the Safety Element, the Noise Element relates to the Housing Element by addressing a health related issue area. Techniques for reducing noise often involve buffers between land uses to reduce noise. The Growth Management Element overlaps the issues raised in the Housing Element in its efforts to ensure that the planning, CITY OF TUSTIN - TECHNICAL MEMORANDUM 5 HOUSING ELEMENT NOVEMBER 2002 management, and implementation of traffic improvements and public facilities are adequate to meet the current and projected needs of Orange County. SOURCES OF INFORMATION A variety of sources were used to prepare this Technical Memorandum. The most recent source of population and housing counts is the State Department of Finance (DOF) population and housing estimates for January 1999. The population, household and employment statistics are taken from the 1990 Census. More current estimates of population characteristics are provided by the Center for Demographic Research at California State University, Fullerton. In the absence of more recent data, extrapolations were made based upon 1990 Census data. The 1999 SCAG Regional Housing Needs Assessment provided information regarding existing needs and projections regarding future housing needs. Data regarding housing costs have been obtained from local newspapers, local developers, and financial institutions: Other data sources are listed in the Reference section of fids document. CITY OF TUSTllV - TBCHNICAL MEMORANDUM 6 HO USING ELEMENT NOVEMBER 2002 SUMMARY OF HOUSING ISSUES, NEEDS, OPPORTUNITIES, AND CONSTRAINTS The following issues, needs, opportunities, and constraints have been identified in Tustin. Tenure. The City contains disproportionately large amounts of multi-family housing units when compared to nearby jurisdictions and the County overall. Historic Resources. Historic homes that add character and charm to the City may be in need of ongoing maintenance and rehabilitation. Home Ownership Affordability Gap. Ownership housing costs are increasingly beyond the reach of the City's lower- and moderate-income households. Housing Condition. Many owner- and renter-occupied units in the City need rehabilitation, including minor and major repairs. Landlords and owners of these units may need financial assistance in order to make necessary repairs. Units at Risk of Conversion to Market Rate. By State law, the City must document and develop programs to address affordable housing units in the City that are at risk of converting to market rate housing between 2000-2010. For the 1998-2005 planning period, the Regional Housing Needs Assessment indicates that there is a need to provide 860 housing units affordable to lower income households in the City. Large Households. The Hispanic population in Tustin has increased from about 21 percent of the population in 1990 to about 24 percent in 1997. Since Hispanic families tend to be larger, a potential need exists for larger housing units to accommodate these families. Overcrowding. The average household size in the City increased from 2.67 in 1990 to 2.92 in 1999. Also, overcrowding has increased significantly since 1990 in both owner- and renter-occupied units. CITY OF TUSTiN- TECHNICAL MEMORANDUM HOUSING ELEMENT NOVEMBER 2002 Rental Affordability Gap. Based upon a review of rental units advertised in the Classified section of the local newspapers, it ~ diffiCult to find apartments in the City with more than two bedrooms, and those that are available are beyond the price range of low-income households. Therefore, large families with low incomes (less than $26,000) would have difficulty finding affordable housing in Tustin.' Housing Problems. According to the Regional Housing Needs Assessment, in 1999 the City had 5,494 lower income households overpaying (paying more than 30% of their income) for housing. This represented about.24 percent of the City's households. Elderly. As the City's population ages, the number of elderly persons will increase. This underscores an increasing need to address the special housing needs of f. he elderly. Age of Housing Stock. Even though the City's housing stock is relatively young and in good condition, in year 2000, over 64 percent of the City's housing stock was over 30 years old-the age at which housing typically begins to require major repairs. CITY OF TUSTZN- TECHNICAL MEMORANDUM HOUSI~G ELEMENT NOVEMBER 2002 HOUSING NEEDS ASSESSMENT Since the 1960s, the City's population has soared from about Z000 persons to 67,153. Thus, the vast majority of the City's housing stock is less than 40 years old. Unlike most of Orange County, where half of the housing stock consists of single- family detached homes, nearly two-thirds of Tustin's housing stock is multi-family or single-family attached (i.e., condominiums/townhouses). Tustin also has a proportionately higher percentage of renters compared to Orange County as a whole. During the last decade, the City's population has been impacted by many of the same trends observed regionally: a substantial increase in minority populations, especially Latinos; an increase in the average size of households; and, a surge in housing costs. As the City continues to grow and change, its housing policies must be re-examined in light of these changes. This chapter examines the important demographic changes that have occurred in the City since 1990 that affect housing needs. The chapter includes four main sections: population/employment trends, household characteristics, housing characteristics, and assisted housing preservation. The Population/Employment Trends section analyzes how the population has grown and explores resident employment patterns. The Household Characteristics section looks at changes in household size and composition, examines income and overcrowding, and evaluates housing affordability and special housing needs groups. The Housing Stock Characteristics section examines changes in the housing stock, particularly the number of units, condition, and type. The fourth section concerning assisted housing preservation responds to State legislation that requires local jurisdictions to prepare an inventory and implement programs to promote the preservation and/or replacement of government-assisted lower- income housing. POPULATION/EMPLOYMENT TRENDS This section examines population growth, age characteristics, racial/ethnic composition, and employment characteristics of Tustin's population. CITY OF TUSTiN - TECHNICAL MEMORANDUM HOUSING ELEMENT NOVEMBER 2002 Population Growth As shown in Table HTM-1, between 1990 and 1999 the City's population grew from 50,689 to 67,153, an increase of 32.5%. The City of Tustin's growth rate between 1990 and 1999 was faster than the countywide growth rate and surrounding cities. Recent projections cited in the Comprehensive Affordable Housing Strategy 2000-2010, indicate that Tusfin's population will increase by an annual rate of 1.5% during the next five years, bringing the total population to 72,735. Table HTM-1 compares the City's growth rate between 1980 and 1999 with other Orange County cities and the County as a whole. A large percentage of Tustin's population growth can be attributed to annexations that have occurred since 1980. The remainder can be attributed to a variety of other factors, including shifts in family structures from smaller to larger families, redevelopment of existing developed areas, irtfill development, and new residential construction in East Tustin. Substantial population and housing growth will continue during this planning period with the conversion of the Marine Corps Air Station (MCAS) Tustin to civilian uses. TABLE HTM-1 POPULATION GROWTH 1980-1999 CITY OF TUSTIN, SURROUNDING JURISDICTIONS AND ORANGE COUNTY % Growth Jurisdiction 1980 1 1990 2 1999 a 1980-90 1990-99 Tustin 36,119 3 50,689 67,153 40.3% 32.5% Anaheim 219,311 266,406 307,749 21.5 % 15.5 % Garden Grove ,123,307 143,050 157,276 16.0% 9.9% Irvine 62,134 110,330 137,211 77.6% 24.3% Santa Ana 203,713 296,742 316,467 45.7% 6.6% Orange Count~ 1,932,709 2,410,556 2,788,767 24.7% 15.7% 1980 U.S. Census 1990 U.S. Census, Department of Finance Estimates, Janua~ 1999 Population projections are shown in Table HTM-la. According to OCP-96 Modified data, the population in the City of Tustin is CITY OF TUSTIN- TECHNICAL MEMORANDUM 10 HOUS1NG ELEMENT NOVEMBER 2002 expected to increase by approximately 12 percent to 74,964 persons by the year 2020. Table HTM- la Population Projection 2000 . 2005 2010 2020 Percent Change (2000-2020) Tustin 66,740 72,735 73,791 74,964 12 % Source: OP-96 Modified Age Characteristics Table HTM-2 shows the proportions of the City's population represented by age groups in 1990 and 2000. The table shows that the proportions of the population in each age group have remained fairly constant over time. TABLE HTM-2 AGE TRENDS 1990 - 2000 CITY OF TUSTIN , Age Groul~ 1990 % Total 2000 % Total 0-4 4,464 8.8% 5,815 8.6% 5-14 5,916 11.7% 9,916 14.7% 15-24 9,127 18.0% 8,685 12.8% 25-34 12,254 24.2% 13,798 20.4% ,, 35-54 11,898 23.5% 19,710 29.2% 55-64 3,187 6.3 % 4,776 7.1% 65-74 2,292 4.5% 2,745 4.1% 75+ 1,551 3.1% 2,059 3.1% Total 50,689 100.0% 67,504 100.0% Sources: U.S Bureau of Census, 2000; Center for Demographic Research (CDR), 2001. Race and Ethnicity The City's racial and ethnic composition has changed significantly since 1980. As shown in Table HTM-3, the Hispanic population has CITY OF TUSTIN- TECHNICAL MEMORANDUM 11 HO USING ELEMENT NOVEMBER 2002 increased from about 9% of the total population in 1980 to about 34% in 2000. Asian/Pacific Islanders and Blacks now make up about 15.1% and 2.6% of the population, 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. CITY OF TUSTiN- TECHNICAL MEMORANDUM 12 HOUSiNG ELEMENT NOVEMBER 2002 TABLE HTM-3 RACE AND ETHNICITY: 1980, 1990, 2000 CITY OF TUSTIN 1980 1 1990 2 2000 3 % % % Race and Ethnicity Population Total Population Total Population Total s White 31,654 87.6 % 37,127 73.2 % 30,264 44.8 % Black 957 2.6% 2,895 5.7% 1,785 2.6% American Indian 237 0.7% 274 0.5% N/A N/A Asian/Pacific Islander 1,683 4.7% 5,260 10.4% 10,194 15.1% Other 1,588 4.4% 5,133 10.1% 2,151 3.2% Hispanic 4 (3,085) (8.5%) (10,508) (20.7%) 23,110 34.2% Total 36,119 100% 50,689 100% 67,504 100% · 1 1980 Census 2 1990 Census 3 2000 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. 5 Center for Demographic Research, 2000. CDR reported the Hispanic population for 1998 as a distinct ethnic group. It also reported Asian and Pacific Islander as one group, and included American Indian within "Other" cate~oV. Employment According to 1990 Census data, the City of Tustin had 31,394 residents in the labor force, of which 27,274 were in the labor market. Of these, 81% were private wages and salary workers. Table HTM-4 shows the number of employees by occupation. The largest occupational category was administrative support occupations, in which a total of 5,533 were employed. The second largest was the executive, administrative, and managerial occupations. The 1990 Census also showed that 2,714 persons were in the Armed Forces. Those involved with farming, forestry and fishing occupations accounted for only 0.9%. CITY OF TUSTiN- TECHNICAL MEMORANDUM 13 HOUSING ELEMENT NOVEMBER 2002 TABLE HTM-4 EMPLOYMENT BY OCCUPATION 1990 CITY OF TUSTIN Occupational Cate~;or~ Executive, administrative, and managerial occupations Professional Specialty occupations Technicians and related support occupations Sales occupations Administrative support occupations, including clerical Private household occupations Protective service occupations Service occupations, except protective and household Farming, forestry, and fishing occupations Precision production, craft, and repair occupations Machine operators, assemblers, and inspectors Transportation and material moving occupations Handlers, equipment cleaners, helpers, and laborers Total Number 4,679 % 17.2% 3,506 13.1% 3,583 996 3.7% 12.9% 5,533 133 371 2,514 239 20.3% 0.5% 1.4% 9.2% 0.9% 2,850 10.4% 1,473 5.4% 676 2.5% 721 2.6% 27,274 100.0% Source: 1990 Census In terms of industry, the retail and manufacturing sectors employed the largest number of persons with 4,441 (16.3%) and 4,008 (14.7%) 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 best known employers. Appendix C lists major employers in the City of Tustin. The City's top ten employers include: Steelcase Inc., Ricoh Electronics, Inc., Sun Health Care Group, Texas Instruments, Silicon Systems, MacPherson Enterprises, Pargain Technology, Cherokee International, Toshiba America Medical Systems, and Crazy Shirts. CITY OF TUSTiN- TECHNICAL MEMORANDUM 14 HOUSZNG ELEMENT NOVEMBER 2002 TABLE HTM-5 EMPLOYMENT BY INDUSTRY 1990 CITY OF TUSTIN Industry Agriculture, forestry, and fisheries Mining Construction Manufacturing, non-durable goods Manufacturing, durable goods Transportation Communications and other public utilities Number 267 26 1,631 1,446 4,008 1,023 % 1.0% .1% 6.0% 5.3% 14.7% 3.8% 455 1.7% Wholesale trade 1,531 5.6 % Retail trade 4,441 16.3 % Finance, insurance, and real estate 3,026 11.1% Business and repair services Personal services 1,694 6.2% 949 3.5% Entertainment and recreation services 385 1.4% Health services 1,764 6.5% Educational services 1,329 4.9% Other professional and related services Public administration 2,268 1,031 Total Source: 1990 Census 8.3% 3.8% 27,274 100.0% HOUSEHOLD CHARACTERISTICS This section addresses household composition, size, overcrowding, income, affordability, and special needs groups. Definitions The Census Bureau uses several terms with respect to housing which are important to understand. A housing unit is defined as a house, apartment, mobile home or trailer, group of rooms, or single room occupied or intended for occupancy as separate living quarters. A household is an occupied housing unit. Households are further broken down into family households and non-family households. A family household is a household shared by two or more persons related by birth, marriage or adoption. A non-family household is one consisting of a single individual or unrelated persons living together. CITY OF TUSTIN- TECHNICAL MEMORANDUM 15 HOUSING ELEMENT NOVEMBER 2002 Household Composition According to the U.S. Census, the City of Tustin contained 18,332 households in 1990. California Department of Finance estimates shows that the number of households increased to 22,755 in 1999, representing an increase of approximately 24 %. TABLE HTM-6 HOUSEHOLD TYPE: 1980 - 1999 CITY OF TUSTIN 1980 1 1990 2 1999a Household No. of % of No. of % of No. of % of Type Households Total Households Total Households Total Family 8,840 61.7% 12,317 67.2% 15,291 67.2% Non-Family 5,477 38.3 % 6,015 32.8 % 7,464 32.8 %.. Total 14,317 100% 18,332 100% 22,755 100% ! U.S. Dept. of Commerce, Bureau of the Census, 1980 Census. 2 U.S. Dept. of Commerce, Bureau of the Census, 1990 Census 3 Total populations based on Department of Finance estimates, November 1999; percentages for household t~l>e based on 1990 Census. , Table HTM-6 shows that 12,317, or about 67%, of the City's households were classified as family households in 1990. The percentage of households remained the same in 1999. Moreover, as shown in Table HTM-7, the average household size in Tustin has increased from 2.77 persons per household in 1990 to an estimated 2.92 persons per household in 1999. This increase may be attributed to a variety of factors, including: more doubling-up, or sharing, of units in order to defray increased housing costs and an increase in the supply of larger units, especially new units in East Tustin. TABLE HTM-7 HOUSEHOLD SIZE 1980 THROUGH 1999 CITY OF TUSTIN Jurisdiction 1980 1 1990 2 1999 3 Tustin 2.43 2.77 2.92 Orange County 2.78 2.87 3.04 CITY OF TUSTIN- TF_,CHNICAL ME, MORAND UM 16 HOUSING ELEMENT NOVEMBER 2002 U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report. U.S. Dept. of Commerce, Bureau of the Census, 1990 Census Report. California Department of Finance (DOF), 1999 Overcrowding Along with the City's population growth has been an increase in unit overcrowding, as households "double up" to save on housing costs. Since 1980, overcrowding has increased from 1.2 to 4.2 percent in owner-occupied units, and from 5.3 to 16.2 percent in renter- occupied units (1990 Census). Overcrowding is often reflective of one of three conditions: 1) either a family or household is living in too small a dwelling; 2) a family chooses to house extended family members (i.e., grandparents or grown children and their families living with parents, termed doubling); or 3) a family is renting living · space to non-family members. Both State and Federal Housing Law defines overcrowded housing units as those in which the ratio of persons-to-rooms exceeds 1.0] The rooms considered in this equation excludes bathrooms, kitchens, and hallways, but includes other rooms such as living and dining rooms. For example, a one-bedroom apartment with living room, kitchen, and bathroom would be considered overcrowded if more than two persons occupied it. The 1999 Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SCAG) figures showed 2,390 (9 percent) households living in overcrowded conditions. Of the households living in such conditions, 86% were renters, of which nearly 38% were Extremely- or Very-Low income households. Table HTM-8 illustrates the numbers of all Tustin households living in overcrowded conditions. Income Household income directly affects housing affordability. In general, upper income households have more discretionary income to spend on housing, while low and moderate-income households are more limited in the range of housing they can afford. CITY OF TUSTIN- TECHNICAL MEMORANDUM 17 HOUSING ELEMENT NOVEMBER 2002 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 18 DECEMBER 2001 TABLE HTM-8 HOUSEHOLDS IN OVERCROWDED CONDITIONS 1999 CITY OF TUSTIN Tenure Extremely Overcrowded Low Total Very Low Overcrowded Total Low Overcrowded Total Moderate & Above Overcrowded Total Total Overcrowded Total All Households Owner 0 517 29 1,862 46 2,511 255 7,261 330 9,245 Renter 308 1,505 471 653 366 814 915 7,450 2060 13,327 Total 308 1 2,022 500 2,514 411 3,325 1,170 12,354 2,390 22,572 Source: SLAG RHNA,1999 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 18 DECEMBER 2001 This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 19 DECEMBER 2001 According to the 1990 Census, the median household income for the City of Tustin was $38,433. Table HTM-9 compares median household and family incomes between the City of Tustin and nearby jurisdictions, counties, and the State of California. In 1990, the City's median household income was about 16% lower than the median household income for the County as a whole. Table HTM-9 demonstrates 'that at $38,433, Tustin's 1990 median household income was below the Orange County median ($45,922). This trend was consistent as well for median family income in the above- mentioned jurisdictions. TABLE HTM-9 MEDIAN 'HOUSEHOLD INCOME: TUSTIN AND SURROUNDING AREAS 1990 Median Percent Median Percent Household Above/Below Family Above/Below Jurisdiction Income County Median Income County Median Tustin $38,433 -16.3% $42,840 -16.3% Anaheim $39,620 -13.7% $43,133 -15.7% Garden Grove $39,822 13.3 % $41,930 -18.1% Irvine $56,307 22.6 % $64,717 26.5 % Santa Ana $35,162 23.4% $34,760 -32.1% Orange County $45,922 --- $51,167 - State of California $35,798 -22.0% $40,559 -20.7% Source: U.S. Department of Commerce, Bureau of Census, 1990 TABLE HTM-10 ESTIMATED HOUSEHOLD INCOME DISTRIBUTION: 1990 AND 1999 CITY OF TUSTIN Household 1990 1999 Income Range Number Percent Number Percent $0,000-$14,999 2,126 11.6% 1,905 8.4% $15,000-$24,999 .2,706 14.8% 2,319 10.2% $25,000-$34,999 3,321 18.1% 2,742 12.0 % $35,000-$49,999 3,636 19.8 % 4,633 -20.5 % $50,000-$74,999 3,706 20.2% 4,669 20.5% $75,000-$99,999 1,591 8.7% 2,806 12.3 % $100,00 or more 1,252 6.8% 3,682 16.2% Total 18,338 100% 22,756 100% Source: Com?rehensive Affordable Housing Strate~ 2000 - 2010. , CITY OF TUSTIN TECHNICAL MEMORANDUM 20 HOUSING ELEMENT NOVEMBER 2002 As illustrated in Table HTM-10, the 1999 income distribution remained somewhat similar to 1990 figures, with the exception of the number of households earning a yearly income of $100,000 or more. These households more than doubled, increasing from 7% to 16% of all households. Overall, the income distribution can be summed in two categories: 51% of the households falling in the income brackets of $49,999 or less; and 49% falling in the income brackets of $50,000 or more. Further, households headed by the very young and the elderly comprised the largest groups in the low-income category. In this sense, nearly one-quarter (24 %) of the households headed by persons aged 65 or older earn less than $15,000 annually, as compared to only 4.6% of the households head by persons aged 25 to 64. The majority of the 25 to 64 age group (60%) were in the $35,000 to $74,999 income bracket and 42% were earning $75,000 or more annually. Table HTM- 11 is a summary of income distribution by age. TABLE HTM-11 ESTIMATED HOUSEHOLD INCOME DISTRIBUTION BY AGE OF HEAD OF HOUSEHOLD 1999 CITY OF TUSTIN Household Total-All Income Under 25 Years 25 to 44 Years 45 to 64 Years 65+ Years Households Range No. % No. % No. % No. % No. % $0,000-$14,999 158 12.1% 568 4.9% 470 6.8% 708 24.0% 1,904 8.4% $15,000- $24,999 316 24.3% 1,006 8.7% 535 7.8% 463 15.7% 2,320 10.2% $25,000- $34,999 273 21.0% 1,446 12.5% 654 9.5% 369 12.5% 2,742 12.1% $35,000- $49,999 267 20.5% 2,757 23.7% 1,187 17.2% 423 14.3% 4,634 20.4% $50,000- $74,999 182 14.0% 2,683 23.1% 1,403 20.4% 398 13.5% 4,666 20.5% $75,000- $99,999 66 5.1% 1,445 12.4% 1,039 15.1% 256 8.7% 2,806 12.3% $100,00 or more 39 3.0% 1,704 14.7% 1,605 23.3% 335 11.3% 3,683 16.2% Total 1,301 100% 11,609 100% 6,893 100% 2,952 100% 22,755 100% Source: Cotn~rehensive Affordable Housing Strate~ 2000 - 2010. CITY OF TUSTIN TECHNICAL MEMORANDUM 21 HOUSING ELEMENT NOVEMBER 2002 Housing Affordability The U. S. Department of Housing and Urban Development (HUD) defines the threshold of overpayment for housing as 30% or more of household income. That is, when households pay more than 30% of their income for housing, they have insufficient remaining funds for other necessities such as food, clothing, utilities and health care. HUD recognizes, however, that upper income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groupsL The 1999 RHNA identifies housing overpayment for lower-income households based on income data from the 1990 Census. Lower- income households are those earning less than 80% of the County median income. Lower-income households include very-low-income (<50% of median) and low- income (51%-80% of median) groups. Table HTM-12 reflects SCAG's 1999 report, which estimates that 8,569 of Tustin households were overpaying for housing of which 5,494 or 64% were very low and low-income households. Among the overpaying lower income households, about 29% were extremely low income, 34% were very low income, and 37% were low-income households. Table HTM-12 also distinguishes between owner and renter households overpaying for housing. This distinction is important because while homeowners may over-extend themselves financially to afford the option of home purchase, the owner maintains the option to sell at market rate; on the other hand, renters are limited to the rental market and are generally required to pay the rent established in that market. The table shows that among the lower income households in the City overpaying for housing, 4,444 or 81% were renters. ~ Some agencies and organizations consider Moderate Income households to be overpaying when housing costs exceed 35 percent of gross income, with the maximum income representing 110% of the median county income. Under these assumptions, overpayment occurs in fewer households in the City of Tustin when compared to figures presented in this document that are based upon State and Federal standards. Source: Strategies.for Planning and Development: California Affordable Housing Handbook, California Redevelopment Association, 2000. CITY OF TUSTIN TECHNICAL MEMORANDUM 22 HOUSING ELEMENT NOVEMBER 2002 TABLE HTM-12 HOUSEHOLDS OVERPAYING FOR SHELTER 1999 CITY OF TUSTIi~ Moderate & Extremely Low Very Low Low Above Total Total All Tenure Overpay Total . Overpay Total Overpay Total Overpay Total Overpay Households Owner 307 517 392 1,862 351 2,511 2,001 7,261 3,051 9,245 Renter. 1,290 1,505 1,457 653 1,697 814 1,074 7,450 5,518 13,327 .... Total 1,597 2,022 1,849 2,514 2,048 3,325 3,075 12,354 8,569 ~-;572 Source: Southem California Association of Governments (SCAG) Regional Housing Needs Assessment, 1999. Special Needs State Housing Law requires that the special needs of certain disadvantaged groups be addressed. The needs of the elderly, disabled, large families, female heads of household, the homeless and farm workers are important in relation to overall community health. These groups may maintain special needs related to housing construction and location. The Elderly: As noted previously (Table HTM-2), in 1990, 3,843 persons or 7.6% of the total population in Tustin were 65 years of age or older. In addition, senior households represented 12.3 percent (2,256) of total households in Tustin. According to California State University at Fullerton's Center for Demographic Research Center (CDR), there was a slight decrease in percentage in the elderly population in 2000 at 4,804 (7.2%). As noted earlier in Table HTM-11, nearly one-quarter of this age group earns an annual income of less than $15,000 and 40% earn less than $25,000 annually. 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 a smaller unit may be too expensive. Thus, this population needs housing that is both affordable and located in close proximity to public services and transportation. The Disabled: According to the 1990 Census, there were 2,162 disabled people in the City. The disabled community, as defined by the California Department of Rehabilitation California Disability Survey, includes four classifications of disability. These classifications and their percentages of the total, handicapped population are as follows: CITY OF TUSTIN TECHNICAL MEMORANDUM 23 HO USI~G ELEMENT NOVEMBER 2002 TABLE HTM-13 DISABILITY CLASSIFICATION Musculoskeletal or Circulatory Chronic, Internal (Respiratory, Digestive, Neurological) Sensory (Visual, Hearing, Speech) Mental (Retardation, Emotional, Substance Abuse) Not-Classified Source: California Del>artment of Rehabilitation 59.4% 25.6% 9.1% 2% 3.9% According to these figures, the majority of people with disabilities (PWD) have musculoskeletal disabilities. Units for persons with musculoskeletal disabilities must provide access and be adaptable to their needs, such as wheelchair accessibility. Disabled persons often require specially designed dwelling units to permit access not only within the dwelling unit, but also to and from the unit. Special modifications to permit free access are very important in maintaining independence and dignity. California Administrative Code Title 24 Requirements set forth access and adaptability requirements for the physically disabled. These regulations apply to public buildings such as motels, and require that ramp ways, door widths, restroom modifications, etc., be designed to enable fre~ access to the handicapped. While such standards are not mandatory for new single-family residential construction, they do apply to new multi-family residential construction. Most existing housing units in Tustin have not been designed with consideration for these requirements of adaptability and access. The majority of housing units are either single-family or two-story apartments with no elevator access. The adaptability of units to meet the needs of disabled persons remains a challenge for Tustin and other communities. However, as additional housing units are provided in the East Tustin area, accessibility is considered as part of a project's design as required by law. Additionally, as units in multiple-family areas are rehabilitated, units may be retrofitted to accommodate the handicapped. New construction may offer some relief because the mandatory requirements are evenly applied to all projects. According to the Uniform Building Code, rental projects of 20 units or more in size require accessibility and adaptability in at least one unit. The use of mixed development types and higher density limits in the East CITY OF TUSTIN TECHNICAL MEMORANDUM 24 HOUSING ELEMENT NOVEMBER 2002 Tusffn area will further require development of even more handicapped-accessible units. ' Large Families: Under the Census guidelines, a family household containing five or more persons is considered a large family. Large family households generally require larger dwelling units with more bedrooms to meet their housing needs. But family households with five or more persons often face limitations in being below national poverty levels, and often experience difficulty securing adequate housing suitable for their expanded needs. Moreover, because multifamfly 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. In 1990, 11% of Tustin households had five or more persons residing in a unit. 1999 data shows a slight increase in the number of households with five or more persons at 13.6% of total households. Table HTM-14 is a summary of Tustin's household sizes. TABLE HTM-14 HOUSEHOLD SIZE DISTRIBUTION 1999 Household Size 1 Person 2 Persons 3 Persons CITY OF TUSTIN Number of Households 5,211 % of Total Households 22.9% 7,191 31.6% 4,141 18.2% 4 Persons 3,117 13.7% 5 or more Persons 3,095 13.6% Total Households 22,755 100.0% Source: Comprehensive Affordable Housing Strategy 2000 - 2010. The primary need of large families is to provide enough rooms for each member of the family to avoid overcrowding. In 1990, 15% of the City's housing units contained four or more bedrooms. Of owner- occupied housing units, 12.9% contained four or more bedrooms. Rental-occupied units accounted for 1.6% of units with four or more bedrooms. Taking into account that much of Tustin's housing stock consists of apartments, and that the majority of Tustin's large CITY OF TUSTIN TECHNICAL MEMORANDUM 25 HOUSllVG ELEMENT NOVEMBER 2002 families are renters, this rising trend in large families suggests a need for more specious apartment units to accommodate such families. Female-Headed Parent Households: The housing needs of female- headed parent households are generally related to affordabflity since such households typically have lower than average incomes. According to the 1990 Census, the City of Tustin had 1,178 female- headed households with children less than 18 years of age. 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. 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. According to 1999 studies prepared by the Orange County Department of Housing and Community Development (HCD), each night there are an estimated 14,086 homeless persons in the County. Sixty-six percent of the homeless population includes persons in families with children. Orange County also reported statistics on homeless populations, as shown in Table HTM-15. TABLE HTM-15 HOMELESS SUB-POPULATION GROUPS 1999 ORANGE COUNTY Estimated Number of Sub-Population Persons Chronic Substance Abusers 6,093 Severely Mentally Ill 1,539 Dually Diagnosed 2,482 Veterans 4,964 AIDS Afflicted Persons 5,149 Victims of Domestic Violence and their Children 5,860 Homeless Youth 2,168 Physically Disabled 5,341 Estimated Total Homeless Pol~ulation~ 14,086 1Some persons fall within more than one identified sub-population, therefore the sum of sub-populations exceeds the total homeless estimate. Source: Count~ of Orange, Continuum of Care Summr~, 1999. CITY OF TUSTIN TECHNICAL MEMORANDUM 26 HOUSING ELEMENT NOVEMBER 2002 There are numerous factors that contribute to homelessness in Tustin and Orange County. The known causes of homelessness include unemployment, limited skills, and a breakdown in the family as a social and economic unit. Additionally, cutbacks in social service programs and the de-institutionalization of the mentally ill during the 1980s have contributed to the homeless population. A new trend, however, is emerging as a significant contributing element to homelessness: a fast-growing lack of affordable housing, which could exacerbate any of the above conditions, but may increasingly become a stand alone cause of homelessness. In a 1999 national study by the Center on Budget and Policy Priorities, Orange County ranked last of 45 Metropolitan Statistical Areas in providing affordable housing opportunities. Compared to a national average of 1.7 low-income renters competing for every low- cost apartment, four Orange County low-income renters competed for each low-cost apartment. Lack of affordable housing, coupled with recent cutbacks in social service programs, have produced a sizable population at risk of homelessness. In 1999, the Orange County Department of Housing and Community Development applied to HUD for Continuum of Care (COC) Homeless Assistance funds on behalf of the County, cities and non- profit organizations. The Continuum of Care is the County's major umbrella funding source for homeless abatement, which disperses funding to cities and non-profit groups to provide shelter and emergency care to the homeless. COC is the County's primary defense against homelessness. City of Tustin police reports and windshield surveys have shown that there are no established areas where homeless persons congregate in the City, and that most persons migrate through Tustin, rather than stay for extended periods of time. The City's Police Department estimates that there are 10-12 homeless persons residing in the City at any given time. Of the shelters in Tustin, the 45-bed Sheepfold shelter provides shelter, food, clothing, job training, and job-referral services primarily to battered women and children. Guests are admitted on a first-come, first-served basis. Usually all beds are fully occupied. The shelter services a large area including many portions of Orange and San Bernardino Counties. CITY OF TUSTIN TECHNICAL MEMORANDUM 27 HOUSING ELEMENT NOVEMBER 2002 Within the City of Tusiin, there are a variety of Non-Profit 'Organizations (NPOs) that provide direct housing and related services to homeless persons. These include Sheepfold, a feeding program affiliated with the United Way, and Laurel House, an emergency shelter and transitional housing provider for homeless youth in the City. Additional programs will also be provided at the former Marine Corps Air Station (MCAS) Tustin site. A significant portion of the MCAS is located within the City. The MCAS Tustin facility was identified by the U.S. Department of Defense for closure in July 1999. In accordance with the Base Closure Redevelopment and Homeless Assistance Act of 1994 (Redevelopment Act), the City of Tustin was formally recognized as the Local Redevelopment Authority (LRA) for the MCAS Tustin. The Redevelopment Act provides a process that aims to balance the needs of the homeless with other development interests in the communities directly affected by closure of the installation. The Act requires the LRA to prepare a reuse plan and Homeless Assistance Plan (HAP), which is submitted to the federal Department of Housing and Urban Development (HUD). HUD reviews and determines whether the documents balance the needs of the homeless in communities in the vicinity of the installation with the need for economic development. A Homeless Assistance Plan has been established for MCAS, Tustin that is consistent with the continuum of care model embodied in the Consolidated Plans for the Cities of Tustin and neighboring Irvine. The fundamental components of the continuum of care system to be implemented with the MCAS, Tustin Reuse Plan would: o Provide emergency shelter beds and intake assessment o Offer transitional housing and services Provide opportunities for permanent affordable housing by the private sector. In the MCAS Reuse Plan, the LRA will own sites and four homeless service providers, including the Salvation Army, Orange Coast Interfaith Shelter, Families Forward, and DOVE Housing have been approved to operate 50 family units at the former base. The Orange County Rescue Mission will also operate a 192-unit transitional/emergency shelter. CITY OF TUSTiN TECHNICAL MEMORANDUM 28 HOUSING F_,LEMBNT NO VF. MBE, R 2002 Numerous other agencies provide shelter and other services to the homeless in the nearby cities of Santa Ana, Irvine, and Orange. The Orange County Homeless Issues Task Force, a non-profit homeless advocacy organization, maintains a list of these and other homeless services in Orange County. Table HTM-16 is a list of organizations in Tustin that provide homeless services. The Sheepfold and Laurel House are located in R-1 districts and are permitted by right under the State Law related to Community Care Facilities. The facilities at the MCAS Tustin will be permitted by special discretionary approvals such as conditional use permits. The City's current code related to homeless, transitional housing, and boarding homes are as follows: A group housing arrangement in a single family home is not subject to City permits (consistent with State Law). · The R-3 and R-4 districts would allow for boarding homes with a Conditional Use Permit (CUP). A group home serving clients in a multi-family dwelling would fall under this definition. TABLE HTM-16 EMERGENCY SHELTER/TRANSITIONAL HOUSING FACILITIES 1999 CITY OF TUSTIN Facility Sheepfold Laurel House St. Cecilia's Redhill Lutheran Tustin Presbyterian Aldergate Services Provided Provides shelter, food, clothing, job training, and job-referral services to women with children. Temporary housing for teenagers in crisis. The facility also provides food, informal counseling, and access to medical care and clothing. Distributes food supply to needy populations. Operates emergency food program where a person can receive food supply 3 times a year. Collects food supphes and distributes the food to various organizations involved in providing homeless services. Refers interested persons to Ecumenical Services Alliance in Santa Ana. Source: Ci~ of Tustin, 1999. CITY OF TUSTIN TECHNICAL MEMORANDUM 29 HOUSING ELEMENT NO I/EMBER 2002 HOUSING STOCK CHARACTERISTICS A housing unit is a dwelling intended for occupancy as separate living quarters. Single-family houses, apartments, condomim'ums, mobile homes, and single room occupancy (SRO) hotels are all types of housing units. This section examines housing unit growth, age, type, tenure (owner v. renter), and costs in Tustin. Housing Growth Like many other communities in Orange County, Tustin has seen a significant increase in housing units since 1990. The number of housing units increased from 19,300 to 24,531 during this period, representing a 27% increase in units (1990 Census, 1999~ DOF estimates). Table HTM-17 compares the growth in housing units in Tustin to nearby cities and the County as a whole. It should be noted that much of the City's housing unit growth is attributable to annexations that occurred during the 1980s and 1990s. TABLE HTM-17 HOUSING GROWTH TRENDS 1980 - 1999 TUSTIN AND SURROUNDING AREAS Number of Housing Units Percent Change Jurisdiction 1980 1 1990 2 1999 3 1980-90 1990-99 Tustin 14,892 19,300 24,531 30% 27% Anaheim 87,725 93,177 99,351 13% 7% Garden Grove 42,846 45,957 46,606 7% 1% Irvine 22,514 42,221 48,764 88% 16% Santa Ana 67,180 75,000 74,932 12% -.10% Orange County 721,514 875,105 954,882 21% 9 % U.S. Department of Commerce, Bureau of the Census, 1980 Census Report. 1990 Census Report. State of California. Del~artment of Finance, Population Estimates 1999. Housing Unit Type Table HTM-18 demonstrates the mix of housing types in Tustin. The 1999 composition of housing units in the City includes 30.6 percent single-family detached, 10.8 percent single-family attached, 12.8 percent multi-family (2-4 units), 43.0 percent multi-family (5+ units), and 2.9 percent mobile homes. COmPared to Orange County as a whole, Tustin has a significantly higher proportion of multi-family housing. According to 1999 CITY OF TUSTIN TECHNICAL MEMORANDUM 30 HOUSING ELEMENT NOVEMBER 2002 Department of Finance Estimates, the County contained 61.4 percent single-family detached/attached units and 35.2 percent multi-family units, where as Tustin contained 55.8 percent multi-family units. TABLE HTM-18 TUSTIN RESIDENTIAL UNIT MIX 1990 - 1999 CITY OF TUSTIN Number of Housing Units Percent Change Housing Type 1990 % 1999 % 1990-1999 Single-Family 5,351 27.7% 7,503 30.6% 40.2% Detached Single-Family 2,530 13.1% 2,646 10.8% 4.6% Attached Multi-Family 3,089 16.0% 3,132 12.8% 1.4% (24 units) Multi-Family 7,678 39.5 % 10,548 43.0 % 38.3 % Mobile Homes ' 707 3.6% 702 2.9% 0% Total 19,300 99.9%* 24,531 100.1%* N/A * Totals do not equal 100% due to rounding error. Source: California De?artment of Finance Tustin's current vacancy rate is 7.2% (1999 Department of Finance), comparatively higher than the County average of 5.7%. Table HTM- 19 shows the 1999 vacancy rate by tenure. The high vacancy rate, particularly among rental units, indicates that a significant resource of housing units already exists to meet the housing needs of the City. However, available vacant units may not always meet a household's ability to pay the asking rent and/or the size needed. TABLE HTM-19 VACANCY RATES 1999 CITY OF TUSTIN Housin[~ Tenure Vacant Rental Units Number 1,188 Percent 4.8% Vacant Sale Units 204 0.8 % 61 0.2% Seasonally Vacant Units Vacant-other 323 1.3% Subtotal-Vacant Units 1,776 7.2% Occupied Units 22,755 92.8 % 24,531 Total Housing Units .Source: Com~vrehensive Affordable Housing Strate~ 2000 - 2010. 100% CITY OF TUSTIN TECHNICAL MEMORANDUM 31 HO USll~G ELEMENT NOVEMBER 2002 Housing Tenure The tenure (owner versus renter) distribution of a community's housing stock influences several aspects of the local housing market. Residential mobility is influenced by tenure, with ownership housing typically sustaining a much lower turnover rate than rental housing. Housing overpayment, while experienced by many households regardless of tenure, is far more prevalent among renters. Ownership and rental preferences are primarily related to household income, composition, and age of the householder. In 1990, 40.9% of the City's 18,332 occupied housing units were owner-occupied, with the remainder renter-occupied. Compared to the County as a whole, which had 57.5% owner-occupied units and 37.6 % renter-occupied units; the City of Tustin had a relatively high proportion of renter occupied units. This is significant because renters tend to have lower incomes than owners, and are more susceptible to housing cost increases. The tenure figures have remained relatively the same in 1999, with very slight increases of 1,757 new homeowners and 2,666 renters. Table HTM-20 is a smmxtmT of tenure in the City. TABLE HTM-20 TENURE 1990 AND 1999 CITY OF TUSTIN 1990 1999 Housing Tenure Number Percent Number Percent Owner-Occupied 7,504 40.9 % 9,261 40.7% Renter-Occupied 10,828 59.1% 13,494 59.3% Total Occupied Units 18,332 100.0% 22,755 100.0% Source: 1999 SCAG RHNA Existing Needs. , Age and Condition of Housing Stock Housing age is a factor for determining the need for rehabilitation. Without proper maintenance, housing units deteriorate over time. Also, older houses may not be built to current housing standards for fire and earthquake safety. CITY OF TUSTIN TECHNICAL MEMORANDUM 32 HOUSING ELEMENT NOVEMBER 2002 Table HTM-21 indicates the period in which housing units were built in Tustin based upon 1999 Department of Finance estimates. In 2000, approximately 64 % of the City's housing stock was over 30 years old. However, in 10 years, 78% of the City's housing stock will be over 30 years old. This indicates a potential need for rehabilitation and continued maintenance of approximately 19,300 dwelling units by the year 2010. TABLE HTM-21 AGE OF HOUSING STOCK CITY OF TUSTIN Time Period Units Built Number of Units 1990 or Later 5,231 1980 to 1989 3,401 13.9% 1970 to 1979 6,170 25.2% 1960 to 1969 7,863 1950 to 1959 1,195 1940 to 1949 374 1939 or earlier Total 297 24,531 % of Housing; Stock 21.3 32.1% 4.9% 1.5% 1.2% 100% Source: Comprehensive Affordable Housing Strategy 2000 - 2010; Department of Finance, 1999. Housing Costs This section discusses ownership and rental housing costs in Tustin and evaluates the affordability of this housing to the City's various income groups. TABLE HTM-22 DISTRIBUTION OF OWNER-OCCUPIED HOUSING UNITS BY VALUE 1999 CITY OF TUSTIN city of Tustin Orange County Property Value 'Number Percent Number Percent Less than $100,000 185 2.0% 7,331 2.0% $100,000 to $124,999 287 3.1% 8,064 2.2% $125,000-$149,999 685 7.4% 15,028 4.1% $150,000-199,999 1,074 11.6% 57,179 15.6% $200,000-$299,999 3,445 37.2% 136,349 37.2% $300,000 ore More 3,585 38.7% 142,580 38.9% Total 9,261 100% 366,531 100% Median Pro~0ert~ Value $272,970 $266,771 Source: Comprehensive Affordable Housing Strate~ 2000 - 2010. CITY OF TUSTiN TECHNICAL MEMORANDUM 33 HOUSING ELEMENT NOVEMBER 2002 Based on data derived from the National Decision Systems, 76% of the owner-occupied units are valued at $200,000 or higher. The median value for the owner-occupied units is $272,970, which is higher than the County as a whole where the median value is $266,771. Table HTM-22 is a summary of home value in the City. Ownership Housing: According to Dataquick, an on-line research firm, the December 1999 median price for an existing home in Orange County was $258,000, while median price for condominiums was $159,000. The median resale home prices for zip codes in the City of Tustin ranged from $210,000 to $386,000. In comparison, the median resale home prices for cities presented in Table HTM-23 ranged from $95,000 to $395,000. Overall, median resale home prices in Tustin were similar to those occurring throughout Orange County. CITY OF TUSTIN TECHNICAL MEMORANDUM 34 HOUSING ELEMENT NOVEMBER 2002 TABLE HTM-23 RESALE PRICE OF HOMES AND CONDOMINIUMS TUSTIN AND NEIGHBORING JURISDICTIONS DECEMBER, 1999 Median Home Price- % Change City Zip Code December 1999 1 1998-1999 Tustin 92780 $210,000 -12.1% Tustin 92782 386,000 32.6% 92801 $181,000 14.6% 92802 $159,000 2.6% Anaheim 92804 $186,000 10.1% 92805 $176,500 7.0% 92806 $210,500 4.2% 92840 $200,000 17.5% 92841 $202,500 19.1% Garden Grove 92843 $182,750 10.8 % 92844 $170,000 21.9% 92845 $235,500 6.1% 92604 $231,500 -13.3 % 92606 $337,500 30.0% Irvine 92612 $311,250 23.6 % 92614 $257,000 4.9% 92620 $357,500 13.9% 92865 $218,750 -5.9% 92866 $235,000 19.1% Orange 92867 $275,000 1.3% 92868 $159,750 -0.8% 92869 $220,500 -18.2% 92701 $95,000 -25.8% 92703 $146,000 -2.7% 92704 $165,500 4.7% Santa Ana 92705 $395,000 2 29.7% 92706 $250,000 39.7% 92707 $148,750 4.0% ! Data include all home sales, new and resale, and condominiums. 2 Includes Lemon/Cowan Heights Source: Datacluick, 2000 Rental Housing According to the 1990 Census, the median rent for Tustin was $746. The majority (76%) of studio and one-bedroom rental units had monthly rents between $500 and $749. Over 60 percent of two- bedroom rentals had monthly rents of $750 and above while nearly three-quarters (74%) of units with three-or-more bedrooms had CITY OF TUSTiN TECHNICAL MEMORANDUM 35 HOUSING ELEMENT NOVEMBER 2002 monthly rents in excess of $750. According to RealFacts, the average rent for the City of Tustin was $1,067 in March 2000. Table HTM-24 presents a summary of the rental rates. The table shows that the average monthly rental rate for a studio was $875 and $869 for a one-bedroom.unit. Two-bedroom units ranged between $957 and $1,251 while three-bedroom units ranged between $1,418 and $1,641. The lowest rental rates were $856 for a one- bedroom unit, $949 for a two-bedroom unit, and $1,416 for a three- bedroom unit (RealFacts, March 2000). 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 annual incomes of $34,150 or less. Accordingly, the maximum rent affordable to such household is $853 per month. In Tustin, the average rent for a one-bedroom unit is $869. 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 $869 would not only be in excess of what they could afford, but would also be inadequate in size. Households in the Low-Income category (51%-80% of County median) can afford $1,366 per month for housing. The rental survey shows that all two-bedroom units but no three-bedroom units are affordable to this group (see Table HTM-25). 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 condomim'um/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-income households. This means that a Very-Low income household consisting of three or more persons would have a difficult time finding affordable housing of adequate size. Table HTM-25 is an illustration of rent affordability. · CITY OF TUSTiN TECHNICAL MEMORANDUM 36 HOUSING ELEMENT NO I/EMBER 2002 TABLE HTM-24 AVERAGE RENTAL RATES 2000 CITY OF TUSTIN Number of Number of Average Average Bedrooms Units Scluare Foota[~e Rent Studio 164 499 $875 lbd/lba 2,373 732 $869 2bd TH 254 1,054 $1,195 2bd/lba 736 975 $957 ...... 2bd/2ba 2,080 1,019 $1,251 3bd TH 56 1,441 $1,418 3bd/2ba 252 1,202 $1,641 Total 5,915 897 $1,067 Source: RealFacts, March 2000 *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. TABLE HTM-25 MAXIMUM RENT AND PURCHASE PRICE BY INCOME CATEGORY 1999 CITY OF TUSTIN Maximum Maximum Annual Affordable Affordable Income Category Income i Rent Payment 2 Purchase Price <Very Low (50%) $34,150 $853 $100,00 Low (51-80%) $34,141-54,640 $1,366 $160,000 Moderate (81-120%) $54,641-81,959 $2,049 $250,000 Above Moderate(>120%) >$81,960 >$2,049 >$250,000 Median $68,300. ~ Based on HUD income limits January 1999. 2 Calculated as 30% of income divided by 12 months. 3 Assumes 10% down payment, an 8.5% interest rate, 1.25% tax and homeowners insurance, and 28 % debt ratio. Source: The Planning Center, 1999 Share of Region's Housing Needs Section 65584 of the Government Code requires each locality's share of the existing and future housing needs to be determined by the appropriate council of governments. Each jurisdiction's allocation represents its fair share of the regional housing needs. The City of Tustin's current and projected housing needs are derived from the Regional Housing Needs Assessment (RHNA) prepared by the Southern Califomia Association of Governments. CITY OF TUSTiN TECHNICAL MF_,MORAND UM 37 HOUSING ELEMENT NOVEMBER 2002 The components of the RHNA are divided between "existing needs" and future "construction needs." Existing needs were discussed earlier in the housing affordability section of this report. Construction needs are defined as the number of units that would have to be added to accommodate the forecasted growth in the number of households by July, 2005, as well. as the number of units that would have to be added to compensate for anticipated demolitions and to achieve an "ideal" vacancy rate. Construction need includes all income groups (from very low to upper) and not just those households that require assistance. The total need figure is then distributed among the four income groups. The allocations of housing needs by income group are adjusted to avoid Lower-Income "impaction" - the over-concentration of Lower-Income households in a jurisdiction. SCAG's RHNA fair-share allocation for the 1998-2005 period is 3,298 units. This allocation is based on a household growth of 3,023 units; a vacancy adjustment of 163 units; and housing unit loss adjustment of 112 units. The closure of the MCAS presents the City of Tustin with a total of 947.7 acres available for residential re-use and development. Amongst other types of uses, the City plans to add a total of 4,049 housing units of mixed density and housing type throughout the area. The City of Tustin proposes to also create a Redevelopment Project Area for the MCAS-Tustin project. Based on State Redevelopment Law requirements, at least fifteen (15) percent of the units constructed within a Redevelopment Project Area must be affordable to Very Low, Low, and Moderate-income households. Accordingly, from the potential new units to be built on the MCAS site, the creation of a redevelopment project area would result in up to 495 units (243 units plus 192 transitional housing units) being allocated for Very Low-income housing and an additional 364 units be created for Low- and Moderate Income households. To meet its fair share of the region's housing needs during the 1998- 2005 planning period, the City estimates it must add 3,298 housing units (refer to Table HTM-26). Of these, 21% must be affordable to Very-Low-income households (earning less than 50,% of the County median), 15% must be affordable to Low-Income households (earning between 50% and 80% of the County median), and 65% to the moderate and above moderate income groups. (earning over 80% of County median income). Table HTM-26 is a summary of housing need distribution for the 2000-2005 planning period. CITY OF TUSTIN TECHNICAL MEMORANDUM 38 HOUSING ELEMENT NO I/EMBER 2002 TABLE HTM-26 2000-2005 HOUSING NEEDS CITY OF TUSTIN Income Category Very Low (<50% County Median) Low (50% - 80% County Median) Moderate (80% - 120% County Median) Above Moderate (120% County Median) Total # of Units 694 % of Total 21% 489 15% 778 24% 1,337 41% 3,298* Source: RHNA allocation, 2000. Note: Cumulative percentages do not equal to 100% due to rounding. * See below for discussion on City's a~]~eals of RHNA allocation. 100% On July 26, 1999, the City of Tustin appealed the draft Construction Need/Vacancy Need methodology to the Orange County Council of Governments (Delegate Sub-Region) through the Alternative Dispute Resolution Process. The Alternative Dispute Resolution Board recommended approval of the City's appeal to the Orange County Council of Governments (OCCOG) Board. On August 19, 1999, the OCCOG adopted Resolution No. 99-03 approving the RHNA for the Orange County sub-region. Included in that action was the recommendation that the Regional Council (SCAG) adjust the Vacancy rates for MCAS, Tustin because the Regional Transportation Plan (RTP) and the 1990 Census data vacancy rates did not accurately reflect the base closure. The OCCOG recommended as follows: 505 units for the Very Low Income households, 355 units for the Low Income households, 566 units for the Moderate Income households, and 973 for the Above Moderate Income households for a total of 2,399 units new construction needs. On December 9, 1999 and June 22, 2000, the City of Tustin appealed the RHNA Vacancy Need numbers that were used to calculate total construction needs for the City of Tustin. The appeal was based on a unique situation in that 985 housing units located at the based was not properly counted as vacant housing units by the Department of Finance and are not reflected in the 1990 census credited vacancy methodology. The SCAG Community, Economic, and Human Development (CEHD) Committee rejected both appeals despite the recommendation by the Orange County Council of Governments. Accordingly, while the City has prepared this Housing Element using the figures determined by SCAG, the City respectfully maintains its concern over the RHNA Vacancy Need methodology. CITY OF TUSTIN TECHNICAL MEMORANDUM 39 HO USffiG ELEMENT NOVEMBER 2002 ASSISTED HOUSING PRESERVATION ANALYSIS State law (Chapter. 1451, Statutes of 1989) requires all housing elements to include needs analyses and programs to address the potential conversion of Federal, State, and locally assisted housing developments ("units at risk") to market rate housing. For .example, the federally subsidized loans provided to many low-income housing projects during the 1970s contained provisions that allow the owner to "prepay" the loans after 20 years, thereby removing the low- income subsidy from the project. As part of the "units at risk" analysis, the State requires that local jurisdictions perform the following tasks: Needs Analysis: to include an inventory of units at risk of converting to market rate housing during 2000- 2010; an analysis of the potential for loss of affordability controls; a cost analysis of preserving or replacing the at-risk units; identification of agencies willing to acquire and manage these projects; and, identification of funding sources available to preserve or replace therr~ Quantified Objectives: A quantification of the units to be conserved, and explanation of any difference between the number of units at risk and the number to be conserved. Housing Programs: A description of programs to preserve the units at risk. Tustin has one project that contains units "at risk" of converting to market rate use during the 2000-2005 planning period. Tustin Gardens is a 101-unit Section 221(D)(4) project with a Section 8 contract for 100 units due to expire before July 2000. Projects financed under the Section 221(D)(4) market rate program alone have no binding income use restrictions. The conversion of this project will have an adverse impact for the elderly who may face substantial rent. increase or possible displacement. Table HTM-27 lists all of the Federal, State, and locally assisted low-income housing projects located in the City of Tustin due to expire by 2005. CITY OF TUSTiN TECHNICAL MEMORANDUM 40 HOUSING ELEMENT NOVEMBER 2002 Table HTM-28 is an inventory of all multi-family rental units assisted under federal, state, and/or local programs, including HUD programs, state and local bond programs, redevelopment programs, and local in-lieu fee, inclusionary, density bonus, or direct assistance programs. The inventory includes all units that are eligible to convert to non,lower income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. CITY OF TUSTIiV TECHNICAL MEMORANDUM 41 HOUSING ELEMENT NOVEMBER 2002 This page intentionally left blank. CITY OF TUSTIN TECHNICAL MEMORANDUM 42 HOUSING ELEMENT NOVEMBER 2002 TABLE HTM-27 AT RISK FOR CONVERSION IN 2000-2005 CTTY OF TT J.qTTN CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 43 NOVEMBER 2002 Type/Length of Owner: # of Affordability Earliest Tenant Date Project Name, Name, Section 8 Controls Potential Type Built Address Address, Type(s) of Gov't Contracts (including Conversion # of (i.e., Elderly, Bedroom (if Income (incl zip) Tel #e Assistanc (if a he Sec 8 Date(s) nits Family) Grou .. ... .. ,. ., ..>",'.. -.... :. ... T. .::... .. :.a:. .. <,.: Tustin Gardens Goldrich &Kest 40 yr Loan 101 ,Y.�.c. Elderly '. 1011 bd 1979 100 221(D)(4) 100 275 E. 6th 5150 Overland Ave. at 8% very low Tustin, CA 92680 Culver City, CA 213-204-2050 90230 Section 8 July 2000 loo CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 43 NOVEMBER 2002 Table HTM- 28 ASSISTED HOUSING INVENTORY Type&ength of Earliest Tenant Owner: Affordability Potential Type Date Project Name, Name, Controls Conver- (i.e., Built Address Address, Type(s) of Gov't (including sion # of Elderly, Bedroom (if Condition incl.zi Tel. # Assistance Sec. 8 Date(s)Units Family)Mix known (if known) .. . , A... `� .. :, .. ... .... ., .'. .. ..--- .:.cX[ , :.i+:. -_.... . .. FA.. ,.. .. ... ..�,.....,»... if ,.. :. h.. . Y .... ..., .: a....v. t:... ..: i. .... Y-. -. . 'a :Z..;• V' F ... �. -... .... is .w:.: r 3 F.. �.. \. Tustin Gardens Goldrich & Kest HUD 221(D)(4) --- --- 101 Elderly 101 1-br 1979 Good E. 6th 5150 Overland Section 8 7/13/00 100 Tustin, CA 92680 Ave. 213-204-2050 Culver City, CA 90230 ... ....., .,<. `Y.>.r, .. ........... .. ... - ... . <.... ,.5....� .. ... ,. m.... .... Grey .fl "'?u. 3.. ..... „ _ ... .i<rc. .� r i.:.- >C Rancho Alisal The Irvine Co. California Statewide Income May 15, 69 Family 81-br 1987 Excellent 13800 Parkcenter 550 Irvine Ctr. Dr. Community restricted. No 2025 49 2-br Tustin, CA 92680 P.O. Box 1 Development rent restrictions 12 3-br Newport Beach, Authority 1998-A Bond CA Financing 92660-9959 Rancho Maderas The Irvine Co. California Statewide Income May 15, 54 Family 101-br 1988 Excellent 13408 Heritage Way 550 Irvine Ctr. Dr. Community restricted. No 2025 44 2-br Tustin, CA 92680 P.O. Box 1 Development rent restrictions 730-3700 Newport Beach, Authority 1998-A Bond CA Financing 92660-9959 Rancho Tierra The Irvine Co. California Statewide Income May 15, 51 Family 7 3-br 1988 Excellent 13202 Myford Rd. 550 Irvine Ctr. Dr. Community restricted. No 2025 44 2-br Tustin, CA 92680 P.O. Box 1 Development rent restrictions 730-5868 Newport Beach, Authority 1998-A Bond CA Financing 92660-9959 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 44 NOVEMBER 2002 Table HTM- 28 ASSISTED HOUSING INVENTORY 1V/ h - 1VVL dva uctule 1DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 45 NOVEMBER 2002 Type/Length of Earliest Tenant Owner: Affordability Potential Type Date Project Name, Name, Controls Conver- (i.e., Built Address Address, Type(s) of Gov't (including cion # of Elderly, Bedroom (if Condition incl zip) Tel # Assistance Sec 8) Date(s) Units Family) Mix known) (if known) .:.� :. •.. .. ...,. , k`. ...ri . . vr.: ..r.. .. '� .....:...: .... _� �.. H ... r;...>.Y :.... > .. ,...... . .. �C�L ..................... x... -........E, ::....:m.M.cY...<Xb.....f<lCV ...•s*.±aiC ..is2a��F::.. > .... .;_ L.. .. ..-.s.. ss` .. .. sa>.e ,.s:.. a..Fa[•. �. ... .Y .a,i>e :�. .. .�.`>z..s.. � .,.. Sra.%.... \d..X'1>\'a'Y� >a:4aw�4`G\hw;{.Z..A .... .. �.. r a .. .r �... .. ...au'.L,....:,.x, - .roc.. ;,. .. .. ... .: F. ... .... �-r.,::��;e\. �ES..`+6T SH�� m.: Y...x�Farra....a.�.�.�:�'::%Yc•$ ..... �., E .fir. .c. '3 _.. .._. . �. .. .. v�es.�M S..roe:� -� . ��.. ... ..>R...k`N: �e S,. ...fa , s.. - .. >. .. .. ..F. ...... .?x. . - x , u .,._ E�;sv. 'te a S+` ....?... u� �;.. ec.. .... d.. 3�•"':> �Y�,.Ys. dF. _. di ^?a:. 1:: .Y:3.. .....a�az....,.. ...lz E @ - 'i4'^<�`'\'" i �;, K;»f:< k<. a(.< k �. .`f E ex _"yk:c :Hlt•k... ,Y�.`�-?.� Y3. x'ttamY � < .v.:�t��.t'Y �C�', .��s .. TJ Yi 8< -: .` ��•7 `t •....:? Tustin Grove Tract 14934 .�: -. .....4.' :... F, x i...... .. �`�,.,c��+Z'+:c.....-.. N/A 21 r.� . Y..; ?`.w�G����i Family Redevelopment DDA1 21-3br . N/A d- : Very Good A en Ambrose Lane Tract 15707 Redevelopment DDA1 N/A 8 Family 8-3br N/A New Agency Orange Gardens Westchester Park, Redevelopment Income 5/2028 150 Family 17-1br N/A Good 1602 Nisson Rd. L.P. Agency restricted. No 93-2br Tustin, CA 92780 rent restrictions 40-3br Hampton Square Fairfield Redevelopment Income 10/2011 210 Family 124-1br 1969 Good 16331 McFadden Ave. Residential Corp. Agency restricted. No 86-2br Tustin, CA 92780 rent restrictions Flanders Pointe Tustin Affordable Redevelopment Income 10/2029 49 Family 41-2br 1966 Good 15520 Tustin Village Housing Corp. Agency restricted. No 7-2-br Way rent restrictions Tustin, CA 92780 713 TOTAL 1V/ h - 1VVL dva uctule 1DDA - Disposition and Development Agreement Source: Comprehensive Housing Affordability Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 45 NOVEMBER 2002 This page intentionally left blank. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 46 NOVEMBER 2002 Cost of Replacement/Acquisition and Rehabilitation Analysis: This section analyzes and compares the costs of acquiring "at risk" projects versus the cost of building replacement units, should the projects convert and be lost as low-income housing. In the Comprehensive Affordable Housing Strategy 2000-2010, two different alternatives in addressing "at risk" units were evaluated, including replacement of existing units by means of newly constructed units, and acquiring and rehabilitating units. The replacement of lost "assisted" units would cost $125,883 per unit. Applying this figure to all four projects, replacing all 100 assisted units would cost approximately $12,588,300. Alternatively, should these "at risk" units be acquired and rehabilitated, the per unit cost would be less at $100,777 per unit. Accordingly, the acquisition and rehabilitation all 100 units would cost approximately $10,077,700. The costs associated the replacement/acquisition/rehabilitation are detailed in Table HTM-29. CITY OF TUST1N TECHNICAL MEMORANDUM 47 HOUSING ELEMENT NOVEMBER 2002 TABLE HTM-29 COST OF REPLACING AND ACQUISITION/REHABILITATION OF ASSISTED UNITS Cost Items Total Net Square Feet Ratio Net/Gross SF Total Gross Sq. Ft Building Area Land and Building Acquisition Relocation Costs Demolition Costs Off-Site Improvements~ Site Improvements Unit Construction Hard Costs2 Hard Cost Contingency Arch./Eng./Cons. Supervision Local Permits and Fees City Bldg Permits3 SeWer, Water, Utilities4 School Fees Alta Survey Environmental Phase I and I1s Soils Testing Construction Loan Fees Permanent Loan Fees Construction/Lease-Up Interest Property Insurance Property Taxes During Construction Construction Loan Title and Closing Appraisal Fees Real Estate Legal Organizational Construction Manager Development/Bond/Financial Adv. Market Study Post-Construction Audit Marketing/Lease-up / Start-Up Furniture/Equipment Soft Cost Contingency Operating Reserve Operating Deficit Guarantee Fee Development/Admin. Fee Total Project Cost Cost Per Unit ~Off-site improvements estimated at $1,50G N~ ConstructionJReplacement (60 Units for Seniors) 37,100 Acquisition/Rehab. ~Large Pro}ect (80 Units) 65,600 85% 85% 43,647 77,176 $967,742 $5,200,000 - . 720,000 2,527,882 771,765 259,831 61,741 202,231 30,871 150,000 200,000 663,232 3,000 30,000 40,000 10,000 10,000 58,707 79,182 91,068 129,044 357,061 500,051 12,639 3,859 10,000 5,000 15,000 15,000 10,0o0 10,00o 50,000 50,000 30,000 75,000 25,000 10,000 25,000 15,000 funit. 100,000 50,000 60,000 50,000 22,282 755,296 $Z552,961 $125,883 13,443 144,000 806,218 $8,062,184 $100,777 2 Includes community room costs, with a 1000 Sq. Ft room for the senior prototype. 3 Permit fees estimated at $2,500/unit. 4 No fee for rehabilitation projects. s Based on $500/unit cost. Source: Comprehensive Affordable Housing Strategy ~[~00 - 2010. CITY OF TUSTIN TBCHNICAL MEMORANDUM 48 HOUSING ELEMENT NOVEMBER 2002 Local Rental Subsidy. An option for preservation of at-risk units assisted by either project based Section 8 funds and/or bond financing would be a local rental subsidy to residents. This option could be used to retain the affordable status of the units, by providing assistance to residents when their affordable units convert to market rate. Rent subsidies using state, local (Redevelopment Agency, the use of HOME funds, or other funding sources) can be used to maintain the affordabflity of these at-risk units. Rent subsidies can be structured to mirrOr the Section 8 program. There are several funding sources that could be used to provide subsidies to residents. Under the project based Section 8 program, HUD pays owners the difference between what tenants can pay (defined as 30% of household income) and what HUD and the local Housing Authority estimate to be Fair Market Rent (FMR) on the unit. Section 8 assistance is only available to very low-income households earning less than 50% of the County median income. The 1999 HUD median income in Orange County is $68,300. The analysis also assumes the average very Iow-income household has an actual income of 50% of the County median income, adjusted for household size. The cost of providing subsidies for all 100 at-risk units with potential to expire during the planning period to maintain subsidized rents 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 1999 FMRs for Orange County, which encompasses the City of Tustin, are shown in Table HTM-30. TABLE HTM-30 1999 FAIR MARKET VALUE - ORANGE COUN2~ Efficiency* I 1 Bedroom 2 Bedroom 3 Bedroom ] 4 Bedroom $645 $704 $871 $1,212 $1.349 *Efficiency = Studio Aparhnent : FMRs include utility costs so,ce: Feae, Re,re,, Vol. $9, # 87, R es Re aao A comparison of Fair Market Rents With rents affordable to both low income and very low-income households indicates that a subsidy program would only apply to very low-income households. This is CITY OF TUST1N TECHNICAL MEMORANDUM 49 HOUSING ELEMENT NO VEMBER 2002 due to the high income levels occurring in Orange County, which create higher income !~rnits for low and very-low income households. As shown, Fair Market Rents are considered to be theoretically within the range of affordability for low-income households. Based on 1999 HCD income data for Orange County, affordable .rents for low income households would theoretically be approximately $956 for a two person household in a one bedroom unit, and $1,195 for a four person household in a two or three bedroom unit. These numbers assume that families occupy the units and would be adjusted slightly for smaller or larger households in the same unit size. Under that scenario, based on the 1999 income data, the maximum affordable rent a two-person low income household can theoretically afford still exceeds the FMR for a two bedroom unit. Table HTM-30 shows FMRs in the area for two bedroom and smaller units are well below these levels. All 100 of the units in Tustin Gardens are offered to very low-income households and therefore are included in the subsidy analysis. Very low-income households earn less than 50% of median income. Based on 1999 HUD income data for Orange County, affordable rents for very low income households would be approximately $597 for a senior one bedroom, $682 for a family one bedroom, $854 for a two bedroom, and $922 for a three bedroom. To simplify the analysis, the one bedroom units at-risk in Tustin Gardens (100 one-bedroom units) are assumed to be senior units and comprised of one-person households. TABLE HTM-31 COST OF PROVIDING RENTAL SUBSIDY FOR VERY LOW INCOME HOUSEHOLDS Affordable No. Total Unit FMR Rent 1 Units Difference Monthly Annual Senior 1 Bedroom $704 $597 100 $107 $10,700 $128,400 1 Bedroom $704 $682 0 $22 $0 $0 2 Bedroom $871 $854 0 $17 $0 $0 TOTAL $10,700 $128,400 a Affordable rent includes all utilities Source: 1999 HUD Income Limits for Orange County. The costs of providing a rental subsidy for all 100 at-risk units affordable to very low income households is shown in Table HTM-31 CITY OF TUSTIN TECHNICAL MF. MORAND UM 50 HOUSiNG ELEMENT NOVEMBER 2002 to be approximately $10,700 per month and $128,400 annually. Actual subsidies required would vary from this estimate, as some households earn below the assumed 50% of the County median and therefore require higher subsidies, while other households may be comprised of a different number of persons and therefore, the assumed baseline affordable rent may be higher or lower, depending on household size. CITY OF TUSTiN TECHNICAL ME, MORAND UM 51 HOUSiNG ELEMENT NOVEMBER 2002 This page intentionally left blank. CITY OF TUSTIN TECHNICAL MEMORANDUM 52 HO US]~NG ELEMENT NOVEMBER 2002 CONSTRAINTS TO THE DEVELOPMENT, IMPROVEMENT AND MAINTENANCE OF HOUSING This chapter examines the various constraints to housing development in Tustin. These include governmental constraints and non-governmental constraints GOVERNMENTAL CONSTRAINTS Sections 65583(a)(4) of the Government Code require the Housing Element to include an analysis of potential and actual governmental constraints upon the maintenance, improvement or development of housing for all income levels. The following analysis fulfills this requirement. Land Use Controls The State Planning and Zoning Law (Sec. 65860) requires consistency of the zoning ordinances with the General Plan. After completion of the General Plan update, the City will analyze and reconcile any land use/zoning inconsistencies. The existing Land Use Element of the General Plan establishes single-family, multi-family and planned residential districts. The zoning ordinance is consistent with the Land Use Element in that areas of the City are designated for Single- Family, Multi-Family, and Planned Community districts. An analysis of residential development potential will be provided in the Housing Element. As shown in Table HTM-32, the City's existing General Plan allows a range of residential densities, from a range of 1 - 7 dwelling units per acre in the Low Density Residential designation up to 25 dwelling units per acre in the High Density Residential designation, which corresponds to the R-3 Multiple Family Residential District in the Zoning Code. Up to 10 units per net acre are permitted in the MHP Mobile home Park District. The Zoning Code standards in the residential zones establish a front yard setback requirement of a range between 15 and 20 feet, the side yard setback requirement is 5 feet for interior side yards and 10 feet for corner lots, and the rear yard setback requirement ranges between 5 and 25 feet. CITY OF TUSTiN TECHNICAL- MEMORANDUM 53 HOUSi~VG ELEMENT NOVEMBER 2002 TABLE HTM-32 GENERAL PLAN RESIDENTIAL LAND USE CATEGORIES CITY' OF TUSTIN Effective Dwelling Unit per Density Designation Description Acrea~;e Range Low Density Detached single-family dwellings 5.61 1-7 Residential Medium Multi-family dwellings including 15.0 8-15 Density duplex, condomiru'ums, townhomes, Residential and apartments. High Density Multi-family dwellings including 21.53 15-25 Residential duplex, condominiums, 'townhomes, and apartments .... Mobile Home Mobilehomes 6.31 1-10 Park Planning Low, medium, and high-density 1 See Community residential developments, footnote. (eD) t Maximum densiV ~ in dwelling units per acre is prescribed by individual Planned Community Documents. Effective dwelling units per acre for low, medium, and high density residential are 4.49,11.8, and 17.39, respectively. Source: Cit~ of Tustin, Land Use Element, 1994. According to the General Plan build-out table (Table LU-3) in the Land Use Element, a total of 29,623 dwelling units are anticipated within the City limits. The Department of Finance (DOF) reports 24,531 dwelling units have been constructed (as of January 1999) within the City. ' Affordability can be determined by permitted density of development. According to the State Housing and Community Development Department, affordability standards are as follow: Very-Low income - minimum 25 units per acre Low-Income- minimum of 18 units per acre Moderate income- minimum 8 units per acre The General Plan Land Use Element's policy plan provides goals for future land development within the City. These goals and pohcies are reflections of the direction and images the City seeks for the future. The goals and policies include: CITY OF TUSTIN TECHNICAL MEMORANDUM 54 HOUSING ELEMENT NO I/EMBER 2002 ° Achieve balanced development; Ensure that compatible and complementary development occurs; Revitalize older commercial, industrial, and residential development; o Promote economic expansion and diversification; Coordinate development with the provision of adequate public facilities and services; Strengthen the development character and mixture of uses in the Old Town/First Street area; and Promote an integrated business park character for the Pacific Center East area. Some suggest that low-income housing could be developed in the absence of land use controls related to density. It is true that the reduction or absence of land area requirements per housing units would result in lower land costs per unit, if all factors were constant. However, an analysis of development costs shows that the value of the land is related to its potential yield. For example, an acre of land that was authorized for four (4) dwelling units will be priced at a lower value than an acre of land authorized for six (6) dwelling units. The same analogy holds for multi-family sites whereby the land costs are related directly to the potential yield in terms of unit density. In the absence of arbitrary density standards of one and four acre lots, land use de .nsity controls are not accredited with being a constraint upon the development of low- and moderate-income housing. Tustin has a high percentage of multi-family units where only 30.6 % of the housing stock is devoted to single-family detached units and 66.6% to attached and multi-family units. Current land use controls restrict development in single-family residential zones to one dwelling unit on parcels less than 10,000 square feet in the E-4 zone and parcels less than 7,200 square feet in the R-1 zone. However, the Planned Community District has authorized residential subdivisions with single-family lots of less than 5,000 square feet, which has significantly increased density potential to approximately 8-13 units per acre. CITY OF TUSTl~ TECHNICAL MEMORANDUM 55 HOUSING ELEMENT NO VEMBER 2002 Within the multi-family district (R-3), a 35 foot height limitation and maximum 65% lot coverage precludes the development of high-rise housing projects. In the interest of protecting adjoining single-family lot owners, multi-family structures above 20 feet in height require a conditional use permit when the structures are within 150 feet of single-family residentially zoned lots. While these height limits may place some restrictions on housing development, these limits are designed to maintain compatibility of land use intensity and are commonly used by local governments as a development tool to further this ideal. Projects are also able to take advantage of the Planned Community District application process where special considerations are needed. Table HTM-33 is a summary of the City's residential zoning regulations. CITY OF TUSTIN TECHNICAL MEMO_RAND UM 56 HOUSING ELEMENT NOVEMBER 2002 TABLE H'I'M -33 SUMMARY OF RESIDENTIAL ZONING REGULATIONS CITY OF TI ISTIN CITY OF TUSTIlV HOUSING ELEMENT TECHNICAL MEMORANDUM 57 NOVEMBER 2002 Lot Building Interior Corner Zoning Minimum Lot Area Coverage Height Front Yard Side Yard Side Yard Rear Yard R -A Residential Agricultural 7,200 square feet 40 percent 30 feet 20 feet 5 feet 10 feet 5 feet, but no less than 1,000 District feet clear and unobstructed on open space. E-4 Residential Estate District 10,000 square feet 40 percent 30 feet 20 feet 10% of lot 10% of lot 20 percent lot depth width width R-1 Single -Family Residential 7,200 square feet 40 percent 30 feet 20 feet 5 feet 10 feet 5 feet, but no less than 1,000 District feet clear and unobstructed on rear 1/3 of lot. R-2 Duplex Residential District 3,500 square feet 40 percent 30 feet 20 feet 5 feet 10 feet - R-2 Duplex Residential District 3,500 square feet 50 percent 35 feet 20 feet 5 feet 10 feet 10 feet (single structure) R-3 Multiple Family Residential 1,750 square feet 65 percent 35 feet 15 feet 5 feet 10 feet 10 feet District R-4 Suburban Residential 3,000 2 stories or 20 feet 5 feet 10 feet 25 feet District 35 feet MPH Mobilehome Park District Minimum 5 acre site 75 percent 30 feet Trailer park -none. for mobilehome park. Individual lot -5 feet Travel trailer shall not (measure from curb exceed 10% of total to actual structure, spaces in mobile home hitch excluded). park. P -D Planned Development District 10,000 To be To be To be determined To be To be To be determined with adoption determined determined with adoption of P- determined determined of P -D District with with D District with with adoption of adoption of adoption of adoption of P -D P -D P -D District P -D District C.. t—.a....L T. .. L:._ District District CITY OF TUSTIlV HOUSING ELEMENT TECHNICAL MEMORANDUM 57 NOVEMBER 2002 This page intentionally left blank. CITY OF TUSTIN . HOUSING ELEMENT TECHNICAL MEMORANDUM 58 NOVEMBER 2002 Building Codes As required by State law, the City of Tustin has adopted the "1997 Uniform Building Code" and the "1997 Uniform Mechanical Code" published by the International Conference of Building Officials. Other codes adopted by the City include the 1997 Uniform Plumbing Code and the 1996 Electrical Code. While the codes are intended to protect the public from unsafe conditions they result in an increase in the cost of housing in various ways. The codes establish specifications for building materials and incorporate seismic safety standards that add to construction costs. The technical details of construction, requirements for state licensed contractors to perform the work, plan check, permit processing and field inspections ali contribute to the increased cost of housing. In general, in states and counties where building codes have not been adopted, the cost of housing is less than comparable housing costs in California. Where individuals are permitted to construct shelter to their own specifications and within the limits of their individual construction skills, there will be a much greater proportion of low- income housing available than in those areas which adopt and enforce uniform building codes. It is noted, however, in those areas that have not adopted and enforced building codes, the low-cost housing has resulted in the creation of undesirable conditions that threaten the health and safety of the residents. Unquestionably, building codes are a governmental constraint to the construction of low-income housing. The question to be resolved is the conflicting values between health and safety and low-cost shelter. In 1988, the City of Tustin adopted the State Historic Code as required by State law. The State Historic Code requires relaxation of Uniform Building Code requirements for historic structures. This will reduce rehabilitation costs and may encourage rehabilitation of housing units which have historic value and preserve much needed housing units in the Old Town Area. Site Improvements The restricted and limited ability to tax property in an amount equal to the cost of services and public improvements has shifted site improvement costs to the developer who passes them on to the housing consumer. The philosophy is expressed that no new development should impose a financial liability upon the existing CITY OF TUSTiN TECHNICAL MEMORANDUM 59 HOUSING ELEMENT NO V'EMBER 2002 community residents. The voters have expressed this conviction through the adoption of growth control measures and Proposition 13. An increased awareness of environmental amenities creates a public demand for improvements of not only the building site but of the surrounding environment which consists of drainage channels, landscaped parkways, arterial roads to serve the area, recreation facilities, preservation of open space, school facilities, and recreation amenities, all of which add to the cost of housing. Site development standards and requirements in the City of Tustin include clearing and grading the land; dedication and improvement of public right-of-way 'to include paving, curbs and gutters, sidewalks, drainage, street trees, streetlights and fire hydrants. On- site improvements include the under grounding of cable TV, water, sewer, gas, telephone and electric utilities. Subdivisions and multi- family developments are required to provide landscaping, drainage, perimeter walls, covered parking, landscaping, irrigation systems, and to submit materials and project design for review to assure architectural compatibility. Multi-fami'ly structures of 20 units or more are required to provide housing and parking accommodations for the disabled pursuant to State law. The review process is used to facilitate the land use and development compatibility objectives of the City and provide developers the opportunity to explore project alternatives, which could decrease development Costs in the long run by avoiding cosily mistakes. In the development of subdivisions, the developer is required to dedicate and improve roadways to serve the area; to provide or improve .area drainage channels; to extend water, sewer and other utilities to the site; to dedicate land or pay in-lieu fees for parks and open space for private use in multiple-family projects; and to dedicate land or pay in-lieu fees for public facilities such as schools and fire stations. Developers are allowed to construct private streets or to modify street standards to reduce construction costs, and this encourages and will encourage affordability of housing units in East Tustin and MCAS Tustin. Installation of private streets or on-site improvements may be authorized in other areas to encourage affordable development. An additional cost of site development results from the installation of noise attenuation devices and materials as required by State law. Perimeter walls and/or berms are required for subdivisions to reduce the noise levels from external surface sources such as railroads, freeways and arterial highways for sites that are located within 65 dB (CNEL) Noise Levels. Some of CITY OF TUSTiN TECHNICAL MEMORANDUM 60 HOUSiNG ELEMENT NOVEMBER 2002 these costs can be reduced by the use of housing set-aside funds in City Redevelopment areas and special State and Federal grant funds to produce Iow- and moderate-income housing units. Significant public facilities will be needed to accommodate the proposed housing development at MCAS Tustin. According to the MCAS Tustin Reuse Plan/Specific Plan, water, sewer, storm drainage, electrical, natural gas, and telephone and cable backbone systems that serve future housing sites will need to be constructed. All housing sites will also have to pay their proportionate share for new backbone utilities, roads, and traffic improvements required in conjunction with development of the MCAS Tustin site and as mitigation for the adopted Final Joint Environmental Impact Statement/Environmental Impact Report for the Disposal and Reuse of MCAS-Tustin. The constraints upon the construction of low-income housing due to the cost of site improvements are a question of values. Is there a justification for infrastructure improvements and environmental control requirements that create community amenities beyond the bare minimum necessary to protect the basic health, safety and general welfare? Housing could be developed without the necessity of paved streets, but neither HUD nor private financial institutions would finance such developments. Additionally, Federal and regional air quality standards would preclude such developments. It is contended that equity requires new developments to pay the cost of site improvements in direct proportion to the benefits received; however, they should not be required to bear all of the cost of new community-wide facilities. If it is acknowledged that new developments should pay the costs of site improvements, the challenge is one of reducing these costs through more cost-effective site planning or use of housing set-aside funds for those projects within redevelopment areas, or special State and Federal grant funds. Fees and Exactions By law, the City's building and development fees are restricted to the costs of performing the services. The building and planning fee schedules of the City of Tustin were last revised in 1999. These fees still remain considerably below those of surrounding communities in the County. The City's fee schedule is provided in Table HTM-34, which illustrates the fees and exactions that may be assessed' to a CITY OF TUSTiN TECHNICAL MEMORANDUM 61 HOUSING ELEMENT NOVEMBER 2002 residential building development project in comparison to other nearby communities. These fees may be waived by the City Council for projects where extraordinary benefits are derived such as low- income housing projects, but are typically required to offset City expenses. As noted, fees are substantially lower than those charged by other cities and the County of Orange. The fee schedule adopted by the City of Tustin has a minimal impact upon the cost of housing within the City. The argument can be made that the cost of inspecting and serving new developments exceeds the fees and revenues that are exacted for these developments. This is justified as a public service to protect the public health, safety and welfare of the future inhabitants and is partially borne by the general revenues of the City. Additional revenue sources are increasingly important since the passing of Proposition 13. Recognizing that housing for the elderly and low-income families is a community objective, the park land dedication ordinance provides the option to the Council to waive these fees for qualifying projects. The City might also consider exploring fast-tracking (preferential scheduling) or fee waivers for critical projects such as those providing affordable housing or housing which addresses special housing needs. CITY OF TUSTIN TECHNICAL MEMORANDUM 62 HO USllVG ELF. MENT NOVEMBER 2002 TABLE HTM-34 COMPARATIVE DEVELOPMENT FEE SUMMARY ~ ,, Fee Char~es Plannin~ Fees [ Tustin I Anaheim ] Costa Mesa [ Orange Environmental Initial Determination $95 $430 N/A $230 Negative Declaration $125 · N/A $295 N/A IglBI Processing-minor $2,500 $75/hr time and Consultant cost $2,100 dep + EIR Processing-major $4,000 materials + 10% hourly rate Planning General Plan Amendment $985 $2,350 + $25/ac $45/unit $2,100 dep + after 1~t acre hourly rate Zone Change $950 $940 + $24/ac $20/unit $885 +$10/ac after 1st acre Tentative Tract Map $1,205 $785 + $27/lot $13/unit $1,100 + $25/ac Design Review $985 N/A N/A $280 Planned Development Review N/A N/A $48/unit N/A Conditional Use Permits and N/A $660 + $75/code N/A N/A Variances waiver + $27/acre (>5/acres) -- Engineering & Subdivision Final Tract Map $43/unit $380 + $96/hr Provided by $54-$112/hr County Sewer Plan Check $31/unit $350/ac + N/A $54-$112/hr $50/hr Water Plan Check $106/unit $64/hr N/A $54-$112/hr Stormdrain Plan Check $296.91/unit $96/hr $100-$215/ unit $54-$112/hr Street Plan Check $296.91/unit $64/hr $54-$112/hr Surface Drainage Plan Check N/A N/A N/A N/A Grading Plan Check $754/ac + N/A $50/hr N/A $54-$112/hr -- . Capital Facilities & Connections W~ter (fixture units) $400/unit $663/unit N/A $150/unit Sewer (fixture units) $600/tmit $2,360/urdt $3,000/unit $75/unit Sanitation District Annex N/A $582/unit N/A N/A Drainage (one time fee to $984/unit $1,000/acre $650-$4,637 property) Transportation Corridor $3,831- Zone A $2,725/unit $2,626/unit $2,310/ unit $2,725-Zone B Signal Assessment N/A $88/unit N/A N/A Park Facilities Fair Market Value $4,316.83/unit $5,481.72/unit $2,310 of land School Facilities $5,125/unit $7,012/unit $4,600/unit $5,125/unit Tustin, Santa Ana, and Irvine ($2.05/SF) Unified School District Orange Coun~ Sanitation District $2,165/unit N/A N/A N/A ~ Comparative fees based on hypothetical 10 acre subdivision of 50 detached units at permitted density of 5 dwelling units per acre. "Other fees" vary considerably by jurisdiction and are not included in this analysis Source: City of Tustin, 1999; Building Industry Association, 1999 Land Development Fee Survey for Orange ,, Coma,W, 1999. CITY OF TUSTiN TECHNICAL MEMORANDUM 63 HOUSING ELEMENT NO l/EMBER 2002 Processing and Permit Procedures The City recognizes that the myriad of agencies and permit approvals required for a development results in a time-consuming and expensive process. It is documented that the value of land will double when all necessary permits .have been obtained for a construction project. State law establishes maximum time limits for project approvals and City policies provide fOr the minimum processing time necessary to comply with legal requirements and review procedures. A standard chart is provided with every design review application that outlines the procedures and requirements for project approvals. The Community Development Department serves as the coordinating agency to process development applications for the approval of other in-house departments such as Fire, Police, Public Works/Engineering, and Parks and Recreation. These departments work together to simultaneously review projects to ensure a timely response to developers and act as the City's Design Review Committee. Pre-application conferences with the Community Development Department provide the developer with information related to standards and requirements applicable to the project. For the more complicated development projects in the Special Management Areas, Specific Plans provide a standard Design Review Process. Application packages are provided to developers and include the processing chart and copies of pertinent information such as street improvement construction standards, subdivision and landscape requirements that aid developers in the preparation of their plans. All projects are processed through plan review in the order of submission. Recognizing that profit margins are reduced and risks are increased by processing delays, the City has assigned priority to plan review and permit issuance for low-income housing projects. Additionally, contracts for plan check services provide additional staff to process projects in a timely fashion. If a complete application is submitted, plans are simultaneously reviewed by all Design Review Committee members and plan checking departments rather. than one agency reviewing plans at a time. This process also pro- vides for a "one-stop" processing system which is required by State law in an effort to aid the development process, reduce confusion and minimize development costs. Additionally, for projects of significant benefit to the low-income community, such costs can be CITY OF TUSTIN TECHNICAL MEMORANDUM 64 HOUSING ELEMENT NO V'EMBER 2002 waived by the City Council or the use of redevelopment set-aside funds can further reduce or eliminate these costs for low-income projects. Workload Another governmental constraint is the number of staff and amount of staff time available for processing development projects. Since the workload is determined by outside forces (economy and market for housing), a shortage of staff time may occur during strong economic conditions which could lead to increased processing time for development projects. MARKET CONSTRAINTS The availability-of housing is affected by the interrelationships within the market place of price, income of buyer, and interest rates. The non-governmental constraints upon the maintenance, improvement or development of housing in the City relate primarily to low- and moderate-income families. High-income families have the option of selecting housing accommodations that meet their preferences. Since environmental amenities such as hillsides with views and beach access attract high-value developments, high- income families gravitate to the foothills and beach communities. The provision for housing opportunity to all income segments is further emphasized in the East Tustin development whereby single-family attached and detached homes are proposed for moderate- and higher-income households. Additionally, multi-family projects such as apartments and condominitrrns in East Tustin are provided for the low- and moderate-income groups. A potentially significant constraint on housing prices is the difference between the cost to construct units versus the actual price charged to the buyer. In Orange County, where the market demand for housing is high, the price of units does not necessarily correlate to the cost to build the unit. Therefore, regardless of the decrease in land use and other governmental controls, the external market typically drives the cost of housing rather than the cost of construction driving the price. Financing Interest rates can have an impact on housing costs. Some mortgage financing is variable rate, which offers an initial lower interest rate CITY OF TUSTIN TECHNICAL MEMORANDUM 65 HOUSiNG ELEMENT NOVEMBER 2002 than fixed financing. The ability of lending institutions to raise rates to adjust for inflation will cause existing households to overextend themselves financially, and create situations where high financing costs constrain the housing market. An additional obstacle for the first-time homebuyer is the minimum down-payment required by lending institutions. Even if Tustin homebuyers are able to provide a 3 percent down- payment and obtain an 8.5 percent 30-year loan (loan rate for FHA or VA guaranteed loans for June 2000), monthly mortgage payments on median priced single-family detached homes in the City place such homes out of the reach of moderate and lower-income households in the City. At a 8.5 percent interest rate, monthly mortgage payments on median priced condominiums and townhouses can place such units out of reach of Tustin's low and very low income households (see Tables HTM-23 and HTM-25). The greatest impediment to homeownership, however, is credit worthiness. According to the Federal Housing Authority, lenders consider a person's debt-to-income ratio, cash available for downpayment, and credit history, when determining a maximum loan amount. Many financial institutions are willing to significantly decrease downpayment requirements and increase loan amounts to persons with good credit rating. Persons with poor credit ratings may be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. Poor credit rating can be especially damaging to lower-income residents, who have fewer financial resources with which to qualify for a loan. The FHA is generally more flexible than conventional lenders in its qualifying guidelines and allows many residents to re-establish a good credit history. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to report lending activity by census tract. Analysis of available HMDA reports does not indicate documented cases of underserved lower income census tracts in the City. Profit, Marketing and Overhead Developer profits generally comprise 8 to 12% of the selling price of single-family homes and slightly lower for condominiums. However, in certain areas such as East Tustin where market demand is high in CITY OF TUSTiN TECHNICAL MEMORANDUM 66 HOU$1NG ELEMENT NOVEMBER 2002 comparison to the available housing supply, developers are able to command higher prices and realize greater margins of profit. Rising marketing and overhead 'costs have contributed to the rising costs of housing. Inflation has spurred much of the increase in marketing and overhead. Intense competition among developers has necessitated more advertising, more glamorous model homes and more expensive marketing strategies to attract buyers. The factor having the greatest impact on the price of land is location. To a lesser degree, the price of land is governed by supply, demand, yield, availability, cost of the infrastructure, and the readiness for development as related to governmental permits. Within the developed infill areas of the City, there is a scarcity of land available for residential development. The supply of land is largely limited to the East Tustin Specific Plan area. Land zoned for commercial or industrial development is not appropriate for residential development. The development of additional housing accommodations within the urbanized area will require the demolition and/or redevelopment of existing structures, since there are very few vacant lots remaining. Based upon recent cost information about new development projects in East Tustin, land costs are approximately $18 per gross square foot for single-family zoned property and $28 per square foot for land zoned for high-density (i.e., R-3) development (Source: The Intine Company). The unavailability of land within the developed areas of the City and the price of land on the fringes are constraints adding to the cost of housing and pricing housing out of the reach of low- and moderate- income families. Cost of Construction One important market-related factor in the actual cost for new housing is construction costs. These costs are influenced by many factors such as the cost of labor, building materials, and site preparation. The 1998 International Conference of Building Officials (ICBO) estimates that the cost of residential wood frame construction averages $61.10 per square foot and reaches as high as $83.90 per square foot. Therefore, the costs attributed to construction alone for a CITY OF TUSTiN TECHNICAL MF. MORAND UM 67 HOUSiNG ELEMENT NOVEMBER 2002 typical 2,200 square foot, wood frame home would be at minimum $134,420. CITY OF TUSTIN TECHNICAL MEMORANDUM 68 HOUSfNG ELEMENT NOVEMBER 2002 This page intentionally left blank. CITY OF TUST1N TECHNICAL MEMORANDUM 69 HOUSING ELEMENT NOVEMBER 2002 ENERGY CONSERVATION As the price of power continues to rise, households have through necessity been devoting more of the household income to energy cost. This condition has further eroded the affordabflity of housing. No relief is in.sight, as one representative from Southern California Edison reinforced in a recent news article: "higher rates are necessary to assure reliable supplies of electricity in the years ahead." There are energy conservation measures the City of Tustin can promote and others that are mandated by State laws. The State of California has adopted energy conservation standards for residential building in Title 25 of the California Administrative Code. Title 25 applies to new residential construction or an addition to an existing housing unit. Active solar systems for water heating can be encouraged but they are still rather expensive and can only be used as a back-up to an electric or gas system. They are cost efficient in the long rrm but pose a short-term impact to affordable housing. CITY OF TUSTIN TECHNICAL MEMORANDUM 70 HOUSING ELEMENT NO l/EMBER 2002 This page intentionally left blank. CITY OF TUSTIN TECHNICAL MEMORANDUM 71 HOUSING ELEMENT NOVEMBER 2002 SUMMARY OF PREVIOUS HOUSING ELEMENT PROGRAMS To develop appropriate programs to address the housing issues identified in this Housing Element Update, the City of Tustin has reviewed the housing programs adopted as part of its 1989 and 1994 Housing Elements, and evaluated the effectiveness of these programs in delivering housing services. By reviewing the progress in implementation of the adopted programs, the effectiveness of the last element, and the continued appropriateness of these identified programs, a comprehensive housing program strategy has been developed. The following section reviews the progress in implementation of the programs, the effectiveness of the 1989 Element to date, and the continued appropriateness of the identified programs. The results of the analysis provided the basis for deVeloping the comprehensive housing program strategy for the future planning period, as well as goals for the planning period in progress. PROGRESS IN IMPLEMENTING THE 1989 OBJECTIVES GOALS AND Table HTM-35 presents a comparison of the quantified objectives of the previous element and actual achievements since 1989. Table HTM-35 contains a list of projects by program area during the 1989- 2000 period. Tables HTM-36 and HTM-37 summarize the performance of the 1989 Element's goals and objectives. The time period covered in this analysis is July 1989 to June 30, 1994, July 1994 to December 1997, and January 1998 to January 1, 2000. CITY OF TUSTIN TECHNICAL MEMORANDUM HOUSING ELEMENT NOVEMBER 2002 TABLE HTM-35 SUMMARY TABLE EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS: 1989-2000 New Construction Rehab/Preservation Housing Assistance Income Groul~ Goal~ Actual Goal~ Actual GoaP Actual Very-Low 10 713 1,548 Low 2,194 715 556 Moderate 2,081 1,049 31 Above Moderate 1,409 80 - Total 5,010 5,694 1040 4,287 201 2,135 ~ Although goals were not allocated to specific income group, the City attempted to utilize RHNA percentages to fulfil RI-INA objectives. Source: The Cit~ of Tustin, Housin~ Element, 1997; Effectiveness of Housin~ Element Pro~rams, 2000. REVIEW OF PAST PERFORMANCE State law establishes a five-year cycle regulating housing element updates. In compliance with the SCAG cycle, the Tustin Housing Element was updated in 1989 at which time it was found to be in compliance with State law, and was updated again in 1994. In 1997, the City of Tustin initiated a comprehensive General Plan update, and the Housing Element was again updated to accommodate the MCAS Reuse Plan and to ensure consistency with other General Plan Elements, as well as to address recent changes in State law. These amendments were adopted on January 16, 2001. Review of Past Housing Element Objectives The 1989 SCAG Regional Housing Allocation Model indicated a new construction need in Tustin by 1994 of 2,085 unit~, of which 390 units were for very low income households, 488 for low income, 484 for moderate income and 724 upper income. The following discussion is a brief highlight of the progress, effectiveness and appropriateness of the past Housing Element Objectives. CITY OF TUSTiN TECHNICAL MF. MORAND UM HOUSING ELEMENT NO VEMBER 2 002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989— 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 74 NOVEMBER 2002 Responsible Effectiveness 1989-1994 1995-1997 1998-2000 Program Agency Funding Source Objective Adequate Sites Community None Necessary A minimum of 5,000 units 3,920 units 1,771units 1, 474 units Continue to utilize Planned Development in East Tustin within the Community Districts and Specific Department, City 1989-94 planning period. Plans to authorize and encourage Council mixed-use developments. Mobile Homes Community None Necessary Maintain existing mobile No applications No applications No applications Continue to maintain the City's Development homes. received received received mobile home park zone and process Department, City conditional use permit applications Council as received for manufactured homes. Secondary Residential Units Community City General 10 units during the 1989- 1 1 1 Continue to provide opportunities Development Fund Jan. 1, 1998 planning (515 S. Pacific - (340 W. 2nd St. - (135 A Street - for affordable granny flats and sec- Department, City period. 2nd unit) guest home) 2nd unit) ondary residential dwelling units in Council the Single-family Residential District lots where feasible through existing zoning Ordinance provisions. Condominium Conversions Community City General 20 low-income units No applications 14 units No applications Continue to require developers Development Fund conserved. received (Laguna received converting apartments to condo- Department, City Gardens) miniums to process a use -permit, Council provide relocation assistance, and/or to provide incentives and assistance for purchase of the units by low- and moderate -income households. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 74 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 —2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 75 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 Replacement Housing Redevelopment Redevelopment No current plan for 0 units removed 0 units removed 56 units The Redevelopment Agency shall Agency Agency Funds demolition. removed replace housing units when the (replacement Agency undertakes a project completed) pursuant to the requirements of the California Community Redevelopment Law. Tenant Protection County, CDBG funds A minimum of 20 existing 1,700 1,457 634 The protection of tenant rights is Community or desired Tustin residents residents residents assisted residents incorporated within State law and Development assisted through 1994. assisted assisted rent control is believed to be best Department controlled by the supply and de- mand of the market place. Continue its contract for the provision of counseling and dispute resolution services by the Fair Housing Agency. Deed Restrictions Community Low Income Tax Restrictions imposed on 100 units 231 units 207 units Require appropriate deed restrictions Development Credit Mortgage 100 units by 1994. restricted restricted restricted to ensure continued affordability for Department, Bond low- or moderate -income housing Redevelopment constructed or rehabilitated with the Agency, City CRA 20% L/M assistance of any public or Council Set Aside Redevelopment Agency funds as may be legally required by the use of such funds. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 75 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 —2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 76 NOVEMBER 2002 Responsible Effectiveness 1989-1994 1995-1997 1998-2000 Program Agency Funding Source Objective Enforcement of Building and Community City General 300 cases per year; 1,500 117,553 84,423 75,505 Housing Codes Development Fund cases by 1994. inspections. inspections inspections Continue to enforce building and Department Includes total Placed judgment Includes total housing codes including notification building lien on building of taxing agencies upon failure to inspections McFadden inspections gain code compliance from the including Village including property owner. mechanical, Apartment mechanical, electrical, (referred to electrical, and building taxing agency) building construction. 1,443 code construction. violations identified between 1989- 1997 Pre -application Conferences Community City General All applicants to City 33 projects 10 projects 11 projects Continue to utilize procedures for Development Fund benefit from this service. pre -application conferences and Department processing procedures to expedite permit processing. Housing Rehabilitation Community CDBG and 80 units by 1994. 132 units 67 units assisted 63 units assisted Allocate available CDBG and Rede- Development Redevelopment assisted with with RDA funds with RDA funds velopment Agency funds to finance Department, Agency funds RDA funds both public improvements and Federal rehabilitation of residential units in Department of target areas within the City. Housing and Urban Development CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 76 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 -2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 77 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 Fair Housing Orange County Fair CDBG funds Processing of all complaints 911 complaints 2,391 complaints 2,289 In addition to the State Department Housing Council received processed processed complaints of Fair Employment and Housing, processed continue the provision of services by Fair Housing Council of Orange County to the City of Tustin to assure equal housing opportunities within the City. Complaints are referred to Fair Housing Council of Orange County. Shared -Housing TLC, and Parks & CDBG funds 5 cases per year or 25 cases 60 cases 30 cases 25 cases Continue to provide coordination Recreation and by 1994. and support to a home sharing Community program funded in part by the Development 10 cases per year, 75 cases Feedback Foundation, Inc. as part of Department by 2005 TLC (Transportation Lunch and Counseling) and the Orange County Housing Authority. Housing Authority Orange County HUD On an as -needed basis. No contract was No contract was 1 developer Contracts with the Orange County Housing Authority processed processed contract with Housing Authority (OCHA) where OCHA necessary for the development and (Tustin Gardens) operation of federally assisted low - and moderate -income housing programs. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 77 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989- 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 78 1 NOVEMBER 2002 Responsible Effectiveness 1989-1994 1995-1997 1998-2000 Program Agency Funding Source Objective Permit Processing and Coordination Community None necessary Prioritization of low- and 33 projects fast 10 projects fast- 11 projects fast - Ensure that processing of permits for Development moderate -income projects tracked tracked tracked low- and moderate -income housing depends on number of are fast -tracked with low- and projects processed. moderate -income housing permits being given priority over other permit applications. Central Clearinghouse Processing of 33 projects 10 projects 11 projects Continue the services of the City's approximately 100 new processed processed processed Community Development cases per year and 500 Department as a central cases by 1994 is anticipated. clearinghouse with individuals assigned the responsibility of expediting development permits required from various departments and agencies. Rental Assistance County of Orange HUD 10 new certificates by 1994; Encourage the availability of Section Housing Authority letters of support to 750 certificate/ 778 certificate/ 632 certificate/ 8 rental assistance certificates and County. vouchers issued vouchers issued vouchers issued voucher certificate program assis- tance funds through the Orange County Housing Authority. To en- courage the maintenance of existing and establishment of new certificates, support the County's efforts to obtain continued Federal funding. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 78 1 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 -2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 79 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 State Home -Ownership Assistance RDA RDA 50 cases by 1994. No assistance No assistance 8 first time Provide support for the provided provided homebuyers homeownership Assistance program assisted by RDA used for first-time homebuyers in program, not Tustin. State Tax Increment Financing Redevelopment Assistance to 5 projects. 33 units for Very 19 units for Very 18 units for Very Provide 20% housing set-aside tax RDA Set -Aside Fund Low Income Low Income Low Income increment funds from the South households households households Central and Town Center Redevel- 26 unit for Low 23 unit for Low 44 unit for Low opment Projects, where available, to Income Income households Income assist in providing housing ac - households 25 unit for households commodations for low- and moder- 73 unit for Moderate Moderate households 1 unit for Moderate ate -income households. households assisted through households assisted through housing assisted through housing rehabilitation housing rehabilitation program rehabilitation program program Energy Conservation Community None necessary All new units in City in 3,579 new units 1743 new units 1,556 new units Require all new construction to be Development 1989-1994 planning period. required to meet required to meet required to meet subject to State energy conservation Department State standards State standards state standards requirements (Title 24) as a condition for the issuance of a building permit. Housing for the Disabled Community None necessary 25 units by 1994. 18 units were 17 units were 6 units were Require new multi -family housing Development requested to requested to requested to units and apartment conversions to Department provide for provide for provide for condominiums to comply with State accommodation accommodation accommodation specifications for accommodation of for the disabled for the disabled for the disabled the handicapped. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 79 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 -2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 80 NOVEMBER 2002 Responsible Effectiveness 1989-1994 1995-1997 1998-2000 Program Agency Funding Source Objective Affordable Senior Housing Project Community None necessary Maintain 20 dwelling units 112 units 112 units 112 units To maintain 112 units of affordable Development between 1989-1994 and maintained maintained maintained housing for Seniors located at 17432- Department 20 affordable units at the (100 Tustin (100 Tustin (100 Tustin 17442 Mitchell Avenue (20 units of board and care facility in Gardens + 12 Gardens + 12 Gardens + 12 which 12 are Section 8 units) and same time period. Mitchell) Mitchell) Mitchell) Tustin Gardens (100 units). Senior Board and Care Facility 18 units 18 units 18 units Maintain a senior citizen board and maintained maintained maintained care facility in operation at 1262 (Bryan) (Bryan) (Bryan) Bryan Avenue. Non-profit Shelters for Homeless Various Non -Profit Variety of funds Retain current bed counts. 3 homes for a 3 homes for a 3 homes for a Women and Children Organizations total of 16 beds total of 16 beds total of 16 beds Encourage the continuation of the maintained maintained maintained Sheepfold homes in Tustin which provide housing facilities for battered homeless women and children. These homes are located in single-family neighborhoods and provide a much-needed service for homeless women and children. Housing Opportunities for all Private Developers None 100 low- and 500 moderate- 174 units in East 174 units in East 174 units in East Economic Segments in East Tustin; income units by 1994. Tustin Tustin monitored Tustin Monitor the implementation of the Community monitored monitored affordable housing program adopted Development as a part of the East Tustin Specific Department Plan. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 80 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989- 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 81 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 .1995-1997 1998-2000 Bonding Programs City of Tustin State and Complete analysis of 0 Process 210 Processed 150 Study recent bonding authority Municipal Bonds available programs and restricted units to restricted units legislation and encourage utilization applicability to Tustin by low income to low income of State or County issue of these 1994. through the (Orange bonds. In keeping with the com- County bonding Gardens - total munity goal of encouraging owner- program. 150 units) occupied housing units, place special (Hampton emphasis on those bonding Square - total 350 Processed 49 programs that promote home- units) restricted units ownership, such as SB 1862, AB 3507 to low income and Section 235 of the Housing and (Flanders Pointe Urban Recovery Act of 1983. - total 82 units) Consider those programs, where needed, to provide for rental - occupied construction. Land Cost Write -Downs Redevelopment Redevelopment Preparation of a The Agency The Agency The Agency Utilize 20% housing set-aside funds Agency Agency Housing comprehensive affordable committed committed committed as subsidies (i.e., land write downs, Set -Aside Fund housing strategy that $229,948 for $1,103,245 $2,123,131 acquisition and rehabilitation assis- identifies actual funds to be various housing to the Tustin to the tance grants and loans, etc.) from the allocated for subsidy. At rehabilitation Grove project Warmington South/ Central Redevelopment minimum, it is expected and subsidies (140 units) project (38 units) Project to reduce the affordability that 2.5 million will be projects. gap for developing new and reha- allocated for assistance bilitating existing owner and rental through 1994. units for low- and moderate -income It is expected that 4.2 households. million will be allocated for assistance through 2005. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 81 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989— 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 82 NOVEMBER 2002 Responsible Effectiveness 1989-1994 1995-1997 1998-2000 Program Agency Funding Source Objective CDBG Funds for Rehabilitation City of Tustin CDBG Receipt of up to $425,000 in No CDBG funds No CDBG funds No CDBG funds Continue to make applications for HUD Grant funds by 1994. were utilized. were utilized. were utilized. CDBG Funds for the rehabilitation of $126,710 of $ 616,233 of RDA $ 35,468 of RDA single-family and multi -family units: RDA funds funds were funds were Promote the availability of these were programmed for programmed for funds for rehabilitation by news- programmed for residential residential paper articles, announcements in residential rehabilitation rehabilitation Tustin Today (a City publication that rehabilitation is mailed to all households) Economic Integration within Sphere County of Orange None Continue to request notices. 24 notices 12 notices 10 notices of Influence requested requested requested Request that the Orange County Planning Commission and the En- vironmental Management Agency notice the City of Tustin of any pro- posed development activities within Tustin's sphere of influence Senior Citizen Housing City of Tustin, None necessary 25 units in the 1989-94 3 sites identified 3 sites identified A site on Continue to identify sites that are Redevelopment planning period. Sycamore suitable for senior citizens housing Agency Avenue was projects. These sites will be promoted identified for a for private development and 60 unit senior applications will be made for any housing project available subsidy funds. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 82 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989— 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 83 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 Substandard Housing City of Tustin, City General Correct all units identified 835 corrections 608 corrections 479 corrections Continue to identify substandard Redevelopment Fund, Re- completed completed completed housing units and those that are Agency, development otherwise identified as being a threat Community Agency Funds to the health and safety of the Development occupants. Take actions pursuant to the law to demolish, rebuild or correct the code violations. Solar Energy and Conservation City of Tustin None necessary All new units in City are 3,579 units 1,743 units 1,556 units Require that Environmental Impact subject to Title 25 required to required to required to Reports and subdivision plans implement Title implement Title implement Title address energy conservation meas- 24 requirements 24 requirements 24 requirements ures and solar access. Include, as necessary, mitigating measures to ensure that developers implement the requirements of Title 24. Recycling Single -Family Uses in R-3 City of Tustin None necessary 5 new units per year or 25 No additional No additional 1 additional unit Zones Into Multiple -Family Units units during 5 year period units were units were at 135 A Street Continue to encourage developers to constructed constructed constructed consolidate individual lots into larger cohesive developments. Density bonuses may be considered as an incentive to consolidate lots. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 83 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989- 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 84 NOVEMBER 2002 Responsible Effectiveness 1989-1994 1995-1997 1998-2000 Program Agency Funding Source Objective Basic Housing City of Tustin None necessary Support flexibility in City City encouraged; City encouraged; To reduce initial housing costs, housing design encouraged; no no data to no data to continue to encourage the con- data to measure measure measure struction of housing units that in- effectiveness effectiveness effectiveness corporate design features providing the opportunity to expand habitable area as family needs change. Ongoing Review of Housing City of Tustin, None necessary Annual Reports Reviews Reviews Reviews Element Programs - Community accomplished accomplished accomplished From the date of adoption of the Development Housing element, prepare an annual Department report to the Planning Commission assessing previous years accom- plishments toward meeting Housing Element objectives. Submit the Annual Report to the State HCD. Consolidated Plan (CHAS) County of Orange, Variety of State, Preparation of a CHAS by Prepared CHAS Prepared Prepared The City of Tustin shall prepare a Community Federal and local Federal Fiscal Year 1993-94 in 1994 Consolidated Consolidated Consolidated Plan of its own which Development funding Plan for Plan for provides a comprehensive Department FY 1995-00 FY 2000-05. assessment of housing needs, a housing development plan incor- porating Federal, State and local public and private resources, and a one year implementation plan. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 84 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989— 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 85 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 Temporary Housing for Homeless County of General Fund, Support where needed; CHAS Consolidated Prepared FY The City will also support county- Orange/ City of CDBG, HUD complete study of completed Plan completed 2000-05 wide efforts to assist approved Tustin, RDA additional program options (Continuum of (Continuum of Consolidated homeless providers as part of the by 1994 Care plan Care Plan Plan. MCAS Tustin Reuse process in included in included in Applied and implementing their approved CHAS) Consolidated received programs through technical support Plan $1,000,000 for in identifying funding resources that OC Rescue might be available. In addition, Mission and explore additional program options 0 for to assist in the provision and funding transitional for transitional housing and single housing to be room occupancy housing, Implement owned by the as a trial program, a homeless City at the prevention emergency loan program MCAS -Tustin. (i.e., for first and last month's rent of Loan program security deposit). abandoned for lack of interest. Cultural Resources District City of Tustin, CDBG, City 5 landmarks designated No landmark No landmark No landmark There are a large number of struc- Community General Fund, and 25 units rehabilitated designated designated designated tures in the City that were con- Development State grants, by 1994. structed before and after the turn of Department County Mills Act 29 units 20 units 9 units the century following the Columbus rehabilitated rehabilitated rehabilitated Tustin Subdivision in 1887. Continue to utilize the City's Cultural Resources Overlay District to safe- guard the heritage of the City by preserving neighborhoods and structures that reflect the City's heritage and past. Through the CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 85 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 —2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 86 NOVEMBER 2002 Responsible Effectiveness 1989-1994 1995-1997 1998-2000 Program Agency Funding Source Objective District, promote the public and private enjoyment, use and preser- vation of culturally significant neighborhoods and structures. Continue to require that any altera- tion of a designated resource or construction improvements in the District conform to the requirements of the Cultural Resources Overlay District. Housing Referral Program City of Tustin City General Continue Service 10,500 social 5,250 social 4,375 social Continue to provide housing referral Funds, CDBG services services referrals; services services to families in need of Funds referrals; 30 shared referrals; housing assistance and information. 60 shared housing referrals 25 shared This program consists of three City housing housing referrals departments disseminating infor- referrals mation to the public at all times. The Police Department refers homeless people to different agen- cies, which provide shelters and food for various segments of the population. The Parks and Recreation Depart- ment provides housing information and social service information to the senior citizen population. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 86 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989— 2000 Program Responsible Agency Funding Source Objective Effectiveness 1989-1994 1995-1997 1998-2000 The Community Development De- partment provides housing and See previous page for social service information to all effectiveness description. segments of the population. This Department also serves as a clearinghouse for the Community Development Block Grant Program and represents the City at Housing Authority and OCHA Advisory Committee Meetings. The three city departments make these documents available to the public: • Directory of Senior Citizen's Services prepared by the Area Agency on Aging Senior Citizen's Office • Social Service Assistance Booklet prepared by Connection Plus/County of Orange • Orange County Housing Direc- tory prepared by OCHA and the OCHA Advisory Committee. • Business License Pamphlet • Code Enforcement Pamphlet CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 87 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 —2000 Program Responsible Agency Funding Source Objective Effectiveness 1989-1994 1995-1997 1998-2000 Zoning Studies City of Tustin City General Complete studies by 1994 Designated Old Worked on Density Bonus In order to facilitate the new con- Fund, as staffing permits Town in updating Zoning Ordinance struction goals of the 1989-1994 Redevelopment General Plan for Code adopted in 1999 Regional Housing Needs Assess- Agency funds Revise Zoning Code to mixed zoning; ment, initiate studies to consider new encourage and promote density bonus programs to encourage and promote affordable housing by 2005 ordinance affordable housing. These studies drafted include: (1) Potential for creating mixed-use zones in the City; (2) Incorporate mandatory inclusionary policies in the zoning provisions (either on or off-site) for housing units developed or rehabilitated by the Redevelopment Agency or by other public or private entities (since 30% of units developed by an Agency must be affordable and 15% of units developed or rehabilitated by other public or private entities); and (3) Consider relaxation of certain development standards and incentives that could be provided for projects which include affordable housing units. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 88 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989— 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 89 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 Private Streets City of Tustin None necessary Creation of private streets, 176 private 55 private streets 69 private streets The City of Tustin has adopted stan- wherever feasible streets created created created dards for private streets in new residential developments. To reduce construction costs, developers may be permitted to install private rather than public streets, wherever feasible. Preservation of Assisted Housing City of Tustin, CDBG, Preserve 160 units by 1994 Preserved all at Preserved Monitored Tustin has one low-income housing Community Redevelopment and an additional 100 units risk units 150 at risk units Tustin Gardens project (Tustin Gardens) with a total Development Housing Set through 1999 at Orange and preserved of 100 units at risk of conversion to Department, Aside Funds, Gardens all at -risk units market rate prior to July 2001. If Redevelopment State and Preserve 100 units through (10 units lost due project owners choose to convert the Agency Federal Funds 2005 (Tustin Gardens) to freeway projects to market rate housing, Low Income Tax widening) coordinate the provision of financial Credit Mortgage and administrative resources to Financing Bond preserve these units as affordable housing. The following four specific actions will be taken to protect (or replace) at risk units: a) Monitor units at risk; b) Provide tenant education; c) Work with nonprofits; and d) Earmark funds. The following is a more thorough discussion of each action. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 89 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989- 2000 Program Responsible Agency Funding Source Objective Effectiveness 1989-1994 1995-1997 1998-2000 a) Monitor Units at Risk: Maintain See previous page for contact with owners of at risk units effectiveness description. as potential conversion dates ap- proach to determine whether Section 8 contracts have been renewed or are planned to be renewed. Discuss with the owner of the "at risk" projects the City's desire to preserve the units as affordable. b) Tenant Education. Work with tenants of at risk units in danger of converting. Provide tenants with information regarding potential tenant purchase of buildings in- cluding written information and any related workshops. Act as a liaison between tenants and nonprofits potentially involved in constructing or acquiring replacement housing. If existing staff is not able to provide adequate staffing for this program, provide outside consultants to sup- port the program. c) Work with Nonprofits. Work with nonprofit housing providers to ex- plore and if appropriate, facilitate acquisition or replacement of at risk units. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 90 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989 -2000 CITY OF TUSTIlV HOUSING ELEMENT TECHNICAL MEMORANDUM 91 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 d) Reserve Fund. Earmark devel- opment housing set-aside funds to assist priority purchasers with the down -payment and closing costs associated with purchasing projects at risk. Continue to monitor other potential funding sources, such as State grants and HUD LII-iPRHA funds. Building Codes City of Tustin, None necessary Amendments justified to '85, '88, '91 '91 &'94 '97 Plumbing, The State of California has deter- Community State Uniform Building Plumbing, Plumbing, Mechanical & mined that the overriding value is Development Code Mechanical, & Mechanical, and Building Code the protection of the health and Department Building Code Building Code 1996 Electrical safety or residential occupants. 14,'87, '90 '93 &'96 Codes adopted Continue to adopt the Uniform Electrical Codes Electrical Codes Building Code pursuant to the state adopted adopted directives and where local amend- ments are proposed to reflect local climatic, geologic or topographic conditions, and minimize, wherever possible, impacts on provision of housing. Site Improvements City of Tustin Developer Difficult to verify Created a public Refinanced Converted The requirement for the developer to funded works existing public portions of construct site improvements often assessment works public works results in passing these costs on the districts in East assessment assessment housing consumer. These costs are Tustin. district to take district bonds to CITY OF TUSTIlV HOUSING ELEMENT TECHNICAL MEMORANDUM 91 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 3989 —2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 92 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 reflected in the cost of housing that advantage of fixed rate to eliminates an even greater lower interest lower costs. proportion of the population from rates. financially qualifying for the purchase of housing. The financing of public improvements by a special assessment district on a per parcel benefit basis may enable a greater proportion of the market to qualify for housing. Assessment district financing has been implemented in the East Tustin area and is being used to pay for public improve- ments. In creating any new as- sessment districts, an evaluation should be completed of the devel- evel-opers oper'sactivity to advance pay off bonds at the close of escrow. Fees, Exactions and Permit City of Tustin City General Respond to all request Fees waived for Fees waived for 5 Fees waived for Procedures Fund, Housing received 20 projects projects 1 project Consider waiving or modifying vari- Set Aside ous fees or exactions normally required where such waiver will reduce the affordability gap associ- ated with providing housing of the elderly and for low-income households. CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 92 NOVEMBER 2002 TABLE HTM-36 EFFECTIVENESS OF HOUSING ELEMENT PROGRAMS 1989- 2000 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 93 NOVEMBER 2002 Responsible Effectiveness Program Agency Funding Source Objective 1989-1994 1995-1997 1998-2000 Environmental Constraints City of Tustin Developer 2 major program EIRs by 33 Negative 10 Negative 11 Negative Continue to alleviate the necessity of Funded 1994 Declarations Declarations Declarations delays in processing, and mitigating adopted adopted adopted; requirements incorporated into the prepared a draft development plans by requiring and final program environmental impact Program Joint reports (EIR) on all major EIS/EIR for development projects. A program MCAS -Tustin EIR was developed for the East project Tustin Specific Plan. Density Bonus Program City of Tustin General Fund Adopt Policy with 90 days No application No application Density Bonus Applicants under State law may file of an application received received Ordinance for density bonuses when projects adopted incorporate 20%units for low income 11/1/99; one persons; 10% of units for very low- application income units; or 50% of units for received senior citizens CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 93 NOVEMBER 2002 TABLE HTM 37 PROGRESS TOWARDS OBJECTIVES 1989- 2000 CITY OF TUSTIN Unit T, NEW CONSTRUCTION Adequate Sites 5,000 5,546 2,187 2,074 1,285 Granny Fiats 10 3 2 1 New Owner Housing Replacement Housing 145 3 8 6 7 124 Subtotal 5,010 5,694 10 2,194 2,081 1,409 REHABILITATION Housing for the Disabled (retrofit) 25 41 21 20 Code Violations 4 1,443 288 188 967 Rental Rehabilitation Loans/Grants 80 5 346 210 96 40 Multi-Family Acquisition/Rehab/ 20 64 2 4 5 5 50 Conversion Housing Rehabilitation (Single Family) 80 5 42 14 19 9 Subtotal 100 3,766 537 328 1,021 50 PRESERVATION East Tustin Affordable Housing 100L 174 52 123 Program 500M Orange Gardens 160 150 16 134 ... Affordable Senior Housing 20 112 112 Senior Board & Care 20 18 18 Cultural Resources 25 58 28 30 Tustin Gardens 100 100 Subtotal 925 513 168 387 28 30 FINANCIAL ASSISTANCE Iet Time Homebuyer Down Payment 50 8 2 6 Assistance Loans Mortgage Credit Certificates 48 14 24 10 Section 8 Rental Voucher Assistance 10 1,410 1,410 Shared Housing Referrals 25 115 115 Deed Restrictions 100 538 108 415 15 Homeless Housing Partnership Program Emergency Shelter 16 16 16 Subtotal 201 2,135 1,548 556 31 OTHER Lot Consolidation 25 0 N/A N/A N/A N/A Flexibility in Housing Design 3,641 N/A N/A N/A N/A Tenant Protection 20 3,791 N/A N/A N/A N/A CITY OF TUSTIN TECHNICAL MEMORANDUM 94 HOUSING ELEMENT NOVEMBER 2002 TABLE HTM 37 PROGRESS TOWARDS OBJECTIVES 1989- 2000 CITY OF TUSTIN Quantified Unit T~'l~e/Descril~tion Obiectives Accoml~lishments ! Ver~ Low Low Moderate ul~l~er Permit Processing · 500 54 N/A N/A N/A N/A Energy Conservation 6,878 N/A N/A N/A N/A Annual Reports 5 2 N/A N/A N/A N/A Fee Waivers All Requests 26 N/A N/A N/A N/A Subtotal N/A N/A Total 6,236 14,108 2,263 3,465 3,161 1,489 RHNA (1989) 2,085 390 488 484 724 Number of Units. 2 Laguna Gardens. 3 Shea Homes (Tustin Groves). 4 Represents code inspections; I judgement lien. 5 A goal of 80 units was established for all rehabilitation and activities, inclusive of single family and multi-family rehabilitation. Therefore, the 80 units is only reflected m the quantified objective total one time. Sources: (1) Effectiveness of Housing Programs 1989 - 2000, City of Tustin; (2) Five Year Implementation Plan for the Town Center and South Central Redevelo?ment Proiect Areas for Fiscal Years 2000 - 2001 to 2004 - 2005 CITY OF TUSTiN TECHNICAL MEMORANDUM 95 HOUSZNG ELEMENT NOVEMBER 2002 APPENDIX A AFFORDABILITY GAP ANALYSIS CITY OF TUSTIN TECHNICAL ME, MOP, AND UM 96 HOUSING ELEMENT NOVEMBER 2002 This page intentionally left blank. CITY OF TUSTIN TECHNICAL MEMORANDUM 97 HOUSilVG ELEMENT NOVEMBER 2002 SUMMARY OF PER UNIT OWNERSHIP AFFORDABILITY GAPS CITY OF TUSTIN 1999 1 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. The gap assumes that homeowners obtain permanent mortgages from private lenders at market rates. Prototype projects are as follows: New construction attached ownership project of 100 units; new construction single family detached ownership "small lot" project of 45 units; acquisition/ rehabilitation four-plex conversion to ownership of 100 units. Source: Tustin Community Redevelopment Agency Comprehensive Affordable Housing Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 98 NOVEMBER 2002 Level I Level II Level III Level IV Income Level Definition: 50% of Median Income 50% to 80% of Median Income 80% to 100% of Median Income 120% of Median Income Affordable Housing Cost 30% of 50% of Median Income, 30% of 70% of Median Income, 35% of 100% of Median Income, 35% of 110% of Median Definition: Adjusted for Family size Adjusted for Family Size Adjusted for Family Size Income, Adjusted for Family Size Affordability Ga 1 Per Unit Per Unit Per Unit Per Unit New Construction $202,196 $157,294 $57,864 $57,864 attached New Construction (small $324,536 $275,376 $168,652 $168,652 lot/ detached Acquisition/ $152,351 $110,296 $75,675 $75,675 Rehabilitation 1 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. The gap assumes that homeowners obtain permanent mortgages from private lenders at market rates. Prototype projects are as follows: New construction attached ownership project of 100 units; new construction single family detached ownership "small lot" project of 45 units; acquisition/ rehabilitation four-plex conversion to ownership of 100 units. Source: Tustin Community Redevelopment Agency Comprehensive Affordable Housing Strategy 2000-10 CITY OF TUSTIN HOUSING ELEMENT TECHNICAL MEMORANDUM 98 NOVEMBER 2002 SUMMARY OF PER UNIT RENTAL AFFORDABILITY GAPS CITY OF TUSTIN 1999 1 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. To identify the gap amounts for levels I, and II an assumption is made that developers obtain permanent mortgages from private lenders at market rates and investors equity from the syndication of both federal and state low income housing tax credits. To identify the gap amounts for Level III, an assumption is made that developers obtain permanent mortgages from private lenders at market rates. Prototypes are as follows: new construction of a 60 unit senior housing project; large project acquisition and rehabilitation of 80 units; and, acquisition/rehabilitation fourplex of 100 units. Source: Tustin Community Redevelopment Agency Comprehensive Affordable Housing Strategy 2000-10. CITY OF TUSTIN HOUSIlVG ELEMENT TECHNICAL MEMORANDUM 99 NOVEMBER 2002 Level II Level I Between 50% to 80% of Median Level III Income Level Definition: Below 50% of Median Income Income Above 80% of Median Income Affordable Housing Cost 30% of 48% of Median Income, 30% of 60% of Median Income, 35% of 110% of Median Income, Definition: Adjusted for Family size Adjusted for Family Size Adjusted for Family Size Affordability Ga 1 Per Unit Gap Per Unit Gap Per Unit Ga New Construction (senior) $23,583 $45,993 $10,217 Acquisition/ rehabilitation Large project moderate $30,388 $21,621 $0 rehabilitation Acquisition/ $69,980 $89,783 $47,143 Rehabilitation Four lex 1 The affordability gaps shown on this chart are the subsidy amounts the Redevelopment Agency would have to provide in order to render the development prototype economically feasible to developers. To identify the gap amounts for levels I, and II an assumption is made that developers obtain permanent mortgages from private lenders at market rates and investors equity from the syndication of both federal and state low income housing tax credits. To identify the gap amounts for Level III, an assumption is made that developers obtain permanent mortgages from private lenders at market rates. Prototypes are as follows: new construction of a 60 unit senior housing project; large project acquisition and rehabilitation of 80 units; and, acquisition/rehabilitation fourplex of 100 units. Source: Tustin Community Redevelopment Agency Comprehensive Affordable Housing Strategy 2000-10. CITY OF TUSTIN HOUSIlVG ELEMENT TECHNICAL MEMORANDUM 99 NOVEMBER 2002 APPENDIX B REFERENCES C1TY OF TUSTIN TECHNICAL MEMORANDUM 100 'HOUSING ELEMENT NO l/EMBER 2002 This page intentionally left blank CITY OF TUSTIN TECHNICAL MEMORANDUM 101 HOUSffiG ELEMENT NOVEMBER 2002 REFERENCES A. Documents 1. City of Tustin Comprehensive Housing Affordability Strategy, February 2000. 2. 1990 Census Report. U.S. Department of Commerce, Bureau of the Census. 3. California State Department of Finance, 1990, 1999. , Demographic Profile and Survey of Homeless Persons Seeking Services in Orange County. The Research Committee of the Orange Co .unty Homeless Issues Task Force, 1999. 5. Southern California Association of Governments, Regional Housing Needs Assessment, 1999. 6. City of Tustin, Zoning Code. 7. City of Tustin, General Plan, as amended January 16, 2001. 8. Williams-Kuebelbeck & Associates, Old Town Market Analysis, October 16, 1991. . Second Five-Year Implementation Plan for The Town Center and South Central Redevelopment Project Areas (FY 2000-01 to 2004-2005), Tustin Community Redevelopment Agency, January 2000. 9. Comprehensive Housing Affordability Strategy for Fiscal Years 2000-2001 to 2009-2010, Tustin Community Redevelopment Agency, February, 2000. 10. Final Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for the Disposal and Reuse of MCAS-Tusfin (Program EIS/EIR for MCAS-Tustin), January 16, 2001. 11. City Council Staff Report, January 16, 2001. 12. 13. Response to Comments, Final Volume 2 and 3 of Final Environmental Impact Statement/Environmental Impact Report (EIS/EIR) for the Disposal and Reuse of MCAS-Tustin. Marine Corps Air Station (MCAS) Tustin Specific Plan/Reuse Plan, October 1996 and September 1998 Amendments. CITY OF TUSTZN TECHNICAL MEMORANDUM 102 HOUSING ELEMENT NOVEMBER 2002 14. Masterplan Marine Corps Air Station Tustin, DON 1989. 15. State of California, Department of HCD, Web-site. B. Persons and Organizations Mary Ann Barajas, Manager Christian Temporary Shelter, Tustin (714) 771-2969 . Barbara Bishop, Receptionist Aldergates (714) 544-3653 o Kathy Novak The Sheepfold Shelter, Tustin (714) 669-9569 4. Susan Oakson, Executive Director Orange County Homeless Issues Task Force , Christine A. Shingleton, Assistant City Manager Tustin Community Redevelopment Agency (714) 573-3107 . Elizabeth A. Binsack, Community Development Director Community Development Department, Tustin (714) 573-3031 o Lois E. leffrey 701 S. Parker St., Suite 8000 Orange, CA 928684760 (714) 558-7000 o Jim Draughon, Redevelopment Program Manager Tustin Community Redevelopment Agency (714) 573-3121 . Justina Willkom, Associate Planner Community Development Department, Tustin (714) 573-3174 CITY OF TUSTfN TECHNICAL MEMORANDUM 103 HOUSING ELEMENT NO l/EMBER 2002 10. Grace Schuth, Receptionist Tustin Presbyterian Church (714) 544-7070 11. Officer G. Vallevienie Tustin Police Department (714) 573-3200 12. Jean Williams, Receptionist St. Cecilia's Church (714) 544-3131 CITY OF TUSTIN TECHNICAL MEMORANDUM 104 HOUSiNG ELEMENT NOVEMBER 2002 APPENDIX C MAJOR EMPLOYERS IN TUSTIN CITY OF TUSTIN TECHNICAL ME, MORAND UM 105 HOUSllVG ELEMENT NOVEMBER 2002 This page intentionally left blank. CITY OF TUSTIN TECHNICAL MEMORANDUM 106 HOUS1NG ELEMBNT NOVEMBER 2002 LIST OF MAJOR EMPLOYERS IN TUSTIN, CA Company/Address/Telephone Steelcase Inc - (714) 259-8000 1123 Warner Avenue - Tustin 92780 Ricoh Electronics, Inc. (714) 259-1220 1100 Valencia Avenue - Tustin, 92780 Sun Health Care Group - (714) 5~4-4~3 2742 Dow Avenue - Tustin 92780 Texas Instruments - (714) 573-6000 14351 Myford Road - Tustin 92780 Silicon Systems - (714) 731-7110 14351 Myford Road - Tustin 92780 MacPherson Enterprises - (714) 832-3300 2 Auto Center Drive - Tustin 92782 No. Emp. 1,100 1,038 985 560 55O 540 Product/Service Office Furniture Manufacturer Healthcare Semiconductors Integrated Circuits Auto Dealerships Pargain Technology - (714) 832-9922 500 Telecommunications 14402 Franklin Avenue - Tustin 92780 Cherokee International - (714) 598-2000 330 Power Supplies 2841 Dow - Tustin 92780 300 Toshiba America Medical Systems - (714) 730-5000 2441 Michelle - Tustin 92780 Crazy Shirts - (714) 832-5883 245 2911 Dow Avenue - Tustin 92780 Printrak International - (714) 238-2000 204 1250 N. Tustin - Tustin 92780 Revere Transducers - (714) 731-1234 200 14192 Franklin Avenue - Tustin 92780 200 2OO Distributor, Medical Equipment Apparel Tustin Hospital - (714) 669-5883 14662 Newport Boulevard - Tustin 92780 Pacific Bell Mobile Services - (714) 734-7300 2521 Michelle Drive 2na Floor - Tustin 92780 Fireman's Fund Insurance - (714) 669-0911 17542 17~h Street - Tustin 92780 Safeguard Business Systems - (714) 730-8112 14661 Franklin - Tustin 92780 Dynachem electronic Materials - (714) 730-4200 2631 Michelle Drive - Tustin 92780 Vitalcom Inc.- (714) 546-0147 15222 Del Arno Avenue - Tustin 92780 Smartflex Systems Inc. - (714) 838-8737 14312 Franklin Avenue - Tustin 92780 Duncan electronics - (714) 258-7500 15771 Red Hill - Tustin 92780 Fingerprinting Systems Manufacturer Hospital Telecommunications 190 Insurance 175 Accounting Services 135 Chemicals 130 Quality Systems - (714) 731-7171 17822 E. 17th Street, Suite 210 - Tustin 92780 127 125 113 Medical computer Networks Electronic Assembhes Sensors Manufacturing Medical/Dental Computer S),stems Information provided by the Tustin Chamber of Commerce, 1999. 399 E1 Camino Real - Tustin, CA 92780 - (714) 544-5341 CITY OF TUSTIN TECHNICAL MEMORANDUM 107 HO USllVG ELEMENT NOVEMBER 2002