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HomeMy WebLinkAbout20 HSG PREF FOR AFFORDABLE HSG 11-06-07AGENDA REPORT MEETING DATE: November 6, 2007 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: REDEVELOPMENT AGENCY STAFF Agenda Item 20 Reviewed: City Manager Finance Director .~, ~- SUBJECT: ADOPTION OF A LOCAL WORKFORCE HOUSING PREFERENCE POLICY FOR PARTICIPANTS IN THE CITY'S AFFORDABLE HOUSING PROGRAMS SUMMARY Tustin City Council and Tustin Community Redevelopment Agency Board approval is requested for adoption of a Local Workforce Housing Preference Policy for participants in City or Agency affordable housing programs. RECOMMENDATION It is recommended that the Tustin City Council and Tustin Community Redevelopment Agency Board adopt the attached Local Workforce Housing Preference Policy for those interested in seeking affordable housing opportunities in Tustin by granting current Tustin residents or individuals employed within the city of Tustin preference over an applicant who does not currently reside or is not employed in the City of Tustin. FISCAL IMPACT This action will have no fiscal impact on the City or Agency at this time. BACKGROUND/DISCUSSION Many families and/or individuals cannot afford to live in the same city in which they are employed. Included in this category are people who contribute to the community on a daily basis whether it's the local restaurant, hospital or school and encompasses a wide variety of professions including, but not limited to food service workers, nurses, teachers, retail sales associates, and police officers. The local employment preference, also referred to as a workforce housing preference, would assist employees working in the city of Tustin to secure affordable housing in close proximity to their place of employment. In addition, it would assist in alleviating the number of commuters congesting the local highways. It also provides these families with the opportunity to become an integral part of the community by reducing the amount of time spent commuting to and from work on a daily basis. William A. Huston Preference Policy November 6, 2007 Page 2 In addition, the high cost of housing has caused many families to move to the Inland Empire (Riverside and San Bernardino counties) and away from their families in search of reasonable housing accommodations. The local residency preference would assist current residents in need of affordable housing with an opportunity to remain in their existing community. This methodology was used to establish the waiting list for the affordable housing units at the Villages of Columbus which included the Camden Place, Cambridge Lane and Clarendon neighborhoods. The table below represents the number of applicants who participated in the Villages of Columbus Affordable Housing Lottery in relation to those who had either a Tustin residency or employment preference. Approximately 23% of those who participated in the lottery received a local preference with 9% purchasing a unit. The remaining 91 % of the local preference pool of applicants wishing to purchase units in these projects received an opportunity to purchase but either declined or did not qualify for purchase of the units. ..-- .. Total number of pre-qualified applicants who participated in the 148 319 196. 663 Lotte . Total number of pre-qualified applicants who participated in the 30 74 46 150 Lotte and received reference Total number of applicants who received preference and purchased a 10 30 17 57 unit. Total number of affordable units 25 64 54 143 It is staff's recommendation that the City Council adopt a Local Workforce Housing Preference Policy for participants in the City's affordable housing programs where certain factors, including but not limited to the following may apply (1) the unit has been developed as part of a Disposition and Development Agreement's Affordable Housing Obligation (2) the City or Agency has assisted in gap financing for those development projects where affordable housing units are provided (3) the City or Agency facilita#ed the projects access directly or indirectly to tax-exempt financing for the project and (4) the City has provided a density bonus for the project. The Local Workforce Housing Preference Policy is a priority system where applicants who are currently employed in or currently residing in the city of Tustin would have a priority over an applicant who does not currently reside or is not employed in the City of Tustin. In order to qualify for the local preference, the applicants must have at least six months of employment or residency in Tustin. The applicant will be required to complete a Certification of Eligibility - Local Workforce Housing Policy Form and provide the required supporting documentation. The establishment of this Policy assists the City in providing balanced housing opportunities to very-low to moderate-income families who live and work in Tustin. Staff will be available on November 6, 2007; to answer any questions. Christine Shingleton Assistant City Manager ~~ Kimberly McAllen Redevelopment Project Manager Attachments City of Tustin and Tustin Community Redevelopment Agency Local Workforce Housing Preference Policy for Affordable Housing Opportunities The City of Tustin and the Tustin Community Redevelopment Agency have established a local preference to families and/or individuals interested in purchasing or renting an affordable housing unit within the City boundaries where certain factors, including but not limited to the following apply: (1) the unit has been developed as part of a Disposition and Development Agreement's Affordable Housing Obligation (2) the City or Agency has assisted in gap financing for those development projects where affordable housing units are provided (3) the City or Agency facilitated the projects access directly or indirectly to tax-exempt financing for the project and (4) the City has provided a density bonus for the project. The purpose of the policy is to assist in housing individuals and/or families who are part of the current Tustin workforce or currently reside in Tustin. This program would also assist in alleviating congestion on local highways by cutting down on the commute many workers are experiencing in traveling to and from work. In addition, due to the high costs of housing in Orange County, many are forced to move to the Inland Empire (Riverside and San Bernardino County). The implementation of this policy will assist in preventing the flight of current residents to other counties in search of affordable housing. Local Preference is a priority system where applicants that are currently employed in or currently residing in the city of Tustin have a priority over an applicant that does not currently reside or is not employed in the City of Tustin. To qualify for the Local Preference, a minimum requirement of six months employment or residency is required. In order to create a pool of diverse applicants and to encourage development of Workforce Housing in Tustin, a policy has been established to grant residency and/or employment preference to families and/or individuals who cannot afford to live in Tustin. Employment "Workforce Housing" Many families and/or individuals cannot afford to live in the same city where they are employed. This category includes people who contribute to the community on a daily basis whether it's the local restaurant, hospital or school. It includes a wide variety of professions including, but not limited to food service workers, nurses, teachers, retail sales associates, and police officers. Workforce Housing is further defined as housing available at an affordable cost to families and/or individuals whose income does not exceed 120% of the area median income. The area median income (AMI) is an estimate of the median income of a Metropolitan Statistical area calculated by the California Department of Housing and Community Development. See the chart listed below for the current 2007 maximum income levels established for Orange County, which will be adjusted on an annual basis. Standards for Affordable Housing Programs Very-Low-, Low- ,and Moderate-Income Households Maximum Income Levels 2007 Household Size Very-Low-Income Up to 50% of Median Income Low-Income Up to 80% of Median Income Moderate-Income Up to 120% of Median Income 1 $27,550 or less $44,080 or less $66,120 or less 2 $31,500 $50,400 $75,600 3 $35,400 $56, 640 $84, 960 4 $39, 350 $62, 960 $94,440 5 $42, 500 $68, 000 $102, 000 6 $45, 650 $73, 040 $109, 560 7 $48,800 $78,080 $117,120 8 $51,950 $83,120 $124,680 2007 Orange County Median Annual Income: $78,700 (based on a family of four) Residency The high cost of housing is causing many families to move out of Orange County to find affordable housing. The residency preference would provide local residents in need of affordable housing with an opportunity to remain in their existing community. By establishing a "Local Workforce Housing Preference Policy" the City and the Tustin Community Redevelopment Agency will be able to assist in providing affordable housing opportunities to very-low-, low-, and moderate-income families currently employed or residing in the City of Tustin, thus providing balanced housing opportunities. Policy: The City and Agency have adopted a policy to grant preference to applicants of affordable housing units that are either: 1. Employed within the city of Tustin, or 2. A current resident within the city of Tustin Subject to this policy, applicants interested in purchasing or renting any affordable housing unit located within the City of Tustin's boundaries who qualify for a priority determination based on one of the preferences listed above shall be given priority over applicants that are not currently employed in or residing in Tustin. A minimum requirement of six months employment or residency in the City of Tustin is required to qualify for the preference. In order to verify residency, the applicant(s) must provide two of the following: • Driver's License with local address • Copy of current utility bill in applicants name with local address • Copy of applicants current rental/lease agreement reflecting local address • Copy of applicants automobile and/or renters or homeowners insurance policy for residence insured in Tustin with local address In order to verify local emplo~ent, the applicant(s) must provide the last three pay stubs with the name and address of the company printed on the pay stub. If the pay stub does not provide the name and address of the company, in addition to the pay stubs, a letter from the employer verifying employment will be required. The Developer, Lender, or Leasing Agent in each housing development will be required to verify residency by collecting the required documentation. The applicant(s) will be required to sign a Certification of Eligibility -Local Workforce Housing Policy form stating that the information provided on their application regarding local employment and/or residency is true and that providing false information will permanently disqualify them from participation in any of the City's affordable housing programs. The Certification of Eligibility -the Local Workforce Housing Policy form and supporting documentation must be provided to the City of Tustin and Tustin Community Redevelopment Agency with the initial loan packet submission from the lender or rental certification from Leasing Office. CERTIFICATION OF ELIGIBILITY LOCAL WORKFORCE HOUSING POLICY FORM APPLICANT CO-APPLICANT LOCAL ADDRESS LOCAL EMPLOYER PROPOSED ADDRESS The undersigned ("Applicant/Purchaser") hereby certify(ies) the following: Purchaser acknowledges that preference in this affordable housing program was granted due to the applicant's ability to meet the minimum six month requirement of either current Tustin residency or employment and has provided the two required documents to substantiate claim of local residency/employment. Documents Provided: Residency: ^ Driver's License with local address ^ Copy of current utility bill in applicants name with local address ^ Copy of applicants current rental/lease agreement reflecting local address ^ Copy of applicants automobile and/or renters or homeowner's insurance policy with local address Employment ^ Last three pay stubs with name and address of employer printed on check ^ Last three pay stubs and letter from employer verifying employment CERTIFICATION: I/VNe certify that the information provided in this Certification of Eligibility -Local Preferences is true and correct as of the date indicated below. I/VUe acknowledge my/our understanding that the intentional or negligent misrepresentation(s) of the information contained in this request in will result in permanent disqualification from participation in any of the City of Tustin's Affordable Housing Programs. All persons listed on the purchase contract and loan application (ownership) or lease agreement (rental) must sign this certificate. Applicant Signature Printed Name Date Co-Applicant Signature Printed Name Date