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Home My WebLink About01 CDBG 05-02-05MEETING DATE: TO: FROM: SUBJECT: SUMMARY AGENDA REPORT MAY 2, 2005 WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT Agenda Item 1 Reviewed: iv City Manager Finance Director N/A COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CONSOLIDATED PLAN FOR PROGRAM YEAR 2005-2010 AND ONE YEAR ACTION PLAN FOR PROGRAM YEAR 2005-2006 The Housing and Community Development Act of 1974, as amended, established the Community Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing decent housing, suitable living environments, and by expanding economic opportunities, specifically for low and moderate income persons. To participate in the CDBG program, the City is required to prepare a Consolidated Plan that identifies needs for affordable and supportive housing, community development, public services, and economic opportunities. The Consolidated Plan is required every five years. Annually, the City is also required to prepare a one-year Action Plan that implements the goals and objectives contained in the Consolidated Plan. The documents set forth in Resolution Nos. 05-67 and 05-68 fulfill these requirements. RECOMMENDATION That the City Council adopt: Resolution No. 05-67 approving the FY 2005-2010 Consolidated Plan and authorizing the Community Development Director to make minor modifications to the Consolidated Plan and execute documents, certifications, contracts, or other instruments as may be required to carry out the CDBG program; and, 2. Resolution No. 05-68 approving the proposed use of Community Development Block Grant (CDBG) funds for inclusion in the one-year Action Plan for Fiscal Year 2005-06. FISCAL IMPACT The proposed 2005-06 programs and expenditures will be implemented with CDBG funds. No impacts to the General Fund are anticipated. City Council Report CDBG Consolidated Plan & Action Plan May 2, 2005 Page 2 PROGRAM REQUIREMENTS Consolidated Plan To participate in the CDBG program, each jurisdiction is required to prepare a Consolidated Plan, "The Plan", a five-year planning document intended to identify a jurisdiction's overall needs for affordable and supportive housing, community development, public services, and economic opportunities. The Plan also outlines a five-year strategy for addressing those needs and identifies resources and programs which might assist in meeting these goals. In developing the Consolidated Plan, the Council's adopted Comprehensive Housing Affordability Strategy 2000-2010 (CHAS) and the Redevelopment Agency's Implementation Plan 2005-2010 were utilized in developing the City's affordable housing strategies, goals and objectives. The Consolidated Plan has five components: 1) Housing and Homeless Needs Assessment; 2) Housing Market Analysis; 3) Strategic Plan; 4) Action Plan; and 5) Certifications. In general the components are summarized as follow: Housing and Homeless Needs Assessment - a 5 -year estimate of housing and supportive services needs, including the nature and extent of homelessness in the community. Housing Market Analysis - a description of significant characteristics of the housing market, a brief inventory of facilities and services meeting housing needs of homeless persons, and an explanation of barriers to affordable housing. • Community Housing and Development Strategic Plan - a plan/strategy identifying key goals for addressing priority housing/community needs. Action Plan - a description of activities and projects to be undertaken with grant funds during the fiscal year. • Certifications - statements assuring compliance with federal labor standards, fair housing, anti -lobbying and other regulations. The Consolidated Plan, as required by federal regulations, must be available for public review for a period of not less than 30 days. The City advertised the availability of this document in the Tustin News. The review period began on March 21, 2005 and ended on April 19, 2005. No public comments were received during the comment period. This Consolidated Plan document may be amended based on the City Council's action at this meeting. The U.S. Department of Housing and Urban Development (HUD) City Council Report CDBG Consolidated Plan & Action Plan May 2, 2005 Page 3 mandates that the Plan must be submitted to HUD no later than 45 days prior to the beginning of the program year or May 15, 2005. Action Plan A section of the Consolidated Plan called the one-year Action Plan, serves as the City's application to HUD for CDBG program funding. The City must submit an Action Plan annually to receive its entitlement money. The purpose of the Action Plan is to detail how the City intends to spend its annual allocation of funds to meet community needs identified in the Consolidated Plan. BACKGROUND/OVERVIEW OF CDBG PROGRAM REGULATIONS According to HUD, the City will receive $923,725 of CDBG funds for Fiscal Year 2005- 06. These funds are allocated on a formula basis to cities to carry out activities that provide opportunities to develop viable urban communities. Communities are permitted to develop their own programs and funding priorities, as long as each activity meets one of the three CDBG National Objectives. These objectives are for projects that: 1) Benefit low- and moderate -income persons; 2) Aid in the prevention or elimination of slums or blight; 3) Meet community development needs having a particular urgency (conditions that pose serious or immediate threat to the health or welfare of the community, where other sources of funding are not available). The program also requires that at least 70 percent of the total CDBG funds must be used for activities that benefit low- and moderate -income persons over a one-, two-, or three-year period; and individual activities designed to benefit low- and moderate - income persons must assist at least 51 percent low- and moderate -income persons. To assure that activities will meet the National Objectives, HUD established guidelines for Eligible and Ineligible activities. Eligible activities include: • Housing related activities • Removal of Architectural Barriers to Public Facilities • Rehabilitation and Preservation Activities • Public Facilities and Improvements • Public Services Activities • Economic Development Activities • Planning and Program Administration, etc. In addition, the program also limits the amount of allocation for Public Services activities and Program Administration. A maximum of 15 percent (15% x $923,725 = $138,558) City Council Report CDBG Consolidated Plan & Action Plan May 2, 2005 Page 4 of the total grant award may be allocated to Public Services types of activities. A maximum of 20 percent (20% x 923,725 = $184,745) of the total grant award may be expended on Program Administration activities. EVALUATION OF FUNDING REQUESTS In November of 2004, the City published a Notice Availability of Funding Application (NOFA) of CDBG funds in the Tustin News and also sent application packages to over 100 non-profit organizations and the City of Tustin's internal departments. In prior years the City Council provided direction to staff and the Citizen Participation Committee regarding priorities for the disbursement of the CDBG funds. The Council indicated that youth programs and other types of activities which benefit the greatest number of Tustin residents should receive the highest priority. The Council also identified City -operated or City -assisted youth programs, such as those provided at the Boys and Girls Club, Tustin Family Youth Center, and Feedback Foundation as high priorities. As a result of the NOFA, 26 applications were received totaling $1,147,377 in funding requests. These requests consisted of $312,097 from the Public Services category and $835,280 from the Non -Public Services category. This year's Public Services Category requests exceeded the maximum allowable allocation by $173,539 or 125.25 percent. An in-house CDBG Project Review Committee evaluated the funding requests. The Project Review Committee is comprised of representatives from various City Departments (Parks and Recreation Services, Public Works, Community Development, Finance, and the City Manager's Office). The City Council's past direction and the criteria identified as Attachment 3 were used in the ranking process. Funding recommendations of the in-house Project Review Committee were transmitted to the Citizen Participation Committee. On February 16, 2005 the City held a public hearing (the first of the two required public hearings) and invited interested organizations and citizens to participate in the CDBG process. The public hearing was conducted by the Citizen Participation Committee which is comprised of the chairpersons of the City's Planning Commission, Parks and Recreation Commission, Cultural Resources Advisory Committee, Senior Advisory Committee, Audit Committee, and two members at large appointed by the City Council. The purpose of the meeting was to review, evaluate and make a recommendation to the City Council on the disbursement of 2005-06 CDBG funds. City Council Report CDBG Consolidated Plan & Action Plan May 2, 2005 Page 5 The following reflects the Citizen Participation Committee's recommendation: Public Services Activities (Maximum Funding - $138,558) $ 45,000 Assessment and Treatment Services Center $100,000 (Youth/Family Counseling Center) $ 15,000 Big Brothers /Big Sisters of Orange County $ 5,000 Boys and Girls Club of Tustin $ 25,000 City of Tustin Parks & Rec. Youth Coordinator $ 34,558 Feedback Foundation, Inc. $ 25,000 Graffiti Removal - CDBG target areas $ 20,000 Laurel House $ 4,000 Women Transitional Living Center (WTLC) $10,000 Public Services Subtotal $138,558 Public Facilities and Improvements Sycamore Avenue Sidewalk $ 45,000 EI Camino Real Landscaping (450 EI Camino Real) $100,000 Walnut Avenue Sidewalk $110,000 Pasadena Storm Drain $100,000 Williams Avenue Sidewalk $ 75,000 Sycamore Gardens R.O.W $199,887 Public Facilities and Improvements Subtotal $629,887 Rehabilitation and Preservation Activities Code Enforcement (Southwest Neighborhood) $ 71,800 Program Administration and Planning Activities (Maximum Funding - $184,745) Fair Housing Counseling Agency $ 18,480 CDBG Program Administration6$ 5.000 Administration & Planning Subtotal $ 83,480 Grand Total for all Activities $ 923 725 City Council Report CDBG Consolidated Plan & Action Plan May 2, 2005 Page 6 The hearing held by the City Council is the second of two required public hearings. Organizations and agencies returning funding applications to the City were notified of the hearing. This public hearing was also advertised in the Tustin News. The City Council may modify the recommended funding allocations; however, total funding within the Public Services category is limited to a 15 percent maximum allocation, or $138,558. Please note that any change in an allocation amount of an activity under the Public Services category would require a change of funding amount for other activities within the same category. The City Council's decision regarding this year's funding allocation and priorities will be incorporated within the Action Plan and will be submitted to HUD by May 15, 2005. Please note that the attached Consolidated Plan is a draft document which will be refined and revised with the City Council and public input at the public hearing and additional statistical information prior to submittal to HUD. When final approval has been given by HUD, each public services/non-profit organization receiving funds will be asked to enter into agreements with the City requiring compliance with all federal CDBG regulations relating to reporting, auditing, labor standards, etc. All CDBG funds are distributed on a reimbursement basis; typically, no disbursement of monies can be made until expenses are incurred and documented to benefit the intended program. STATUS OF THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Recently, President Bush proposed to eliminate the Community Development Block Grant (CDBG) and several other programs, replacing them with an economic development program managed by the Commerce Department. On March 17, 2005, the Senate voted 68-31 to restore the Community Development Block Grant program; however, there is no guarantee that the Senate amendment will stand. Staff will monitor this issue and update the Council as the budget session continues. lh& I&, - Jusyna Willkom Associate Planner Elizabeth A. Binsack Director of Community Development City Council Report CDBG Consolidated Plan & Action Plan May 2, 2005 Page 7 ATTACHMENTS: 1. Resolution No. 05-67 and Exhibit A (Draft Consolidated Plan) — Note: The Draft Consolidated Plan is included in Council packets only. Due to the voluminous nature of the document, the plan is available for review at the Community Development Office during business hours and will be available at the May 26d Council Meeting. 2. Resolution No. 05-68 3. Evaluation Criteria 4. Applications Summary 5: ¢dd=REMRMDBG Conplen M052010.doc ATTACHMENT Resolution No. 05-67 RESOLUTION NO. 05-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE CONSOLIDATED PLAN FISCAL YEAR 2005-2010 FOR SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, under the Housing and Community Development Act of 1974, as amended, Federal assistance may be provided for the support of community development activities which are directed toward certain specific objectives as set forth in the Act as the Community Development Block Grant (CDBG) Program; and WHEREAS, on February 16, 2005 a public hearing was held by the Ad Hoc Citizen Participation Committee to obtain and consider citizen's views on the needs, goals and objectives of the community; and WHEREAS, during the February 16, 2005 public hearing, citizens were furnished with information concerning the CDBG Program, the range of eligible activities, and the proposed use of funds; and WHEREAS, a staff report has been prepared transmitting to the City Council recommended priority needs, goals and objectives by the Citizen Participation Committee; and WHEREAS, a public hearing was held by the City Council on May 2, 2005 to respond to questions and comments on the proposed Consolidated Plan FY 2005-2010; and WHEREAS, the City Council evaluated needs, priorities, goals and objectives based on recommendations of the Citizen Participation Committee, public testimony received during the hearing; and NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The City of Tustin's Consolidated Plan FY 2005-2010 is hereby approved as presented to the Council at their hearing of May 2, 2005, and in Exhibit A of this Resolution. Section 2: Staff is hereby directed to include the proposed use of CDBG Funds for Fiscal Year 2005-06 in the One Year Action Plan of the Consolidated Plan to be submitted to the U.S. Department of Housing and Urban Development. Resolution No. 05-67 Page 2 Section 3: The Director of Community Development is authorized to make minor modifications and execute such documents, certifications, contracts, or other instruments as may be required to carry out the City's Community Development Block Grant Program. Section 4: The City Clerk shall certify to the adoption of this Resolution and shall file a copy of said application with the minutes of this City Council meeting. PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting on the 2nd day of May, 2005. Lou Bone Mayor PAMELA STOKER, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 05-67 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. 05-67 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 2nd day of May, 2005, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Pamela Stoker City Clerk EXHIBIT A OF RESOLUTION NO. 05-67 Draft Consolidated Plan City of Tustin, California 2005-2010 Consolidated Plan DRAFT Community Development Department City of Tustin 300 Centennial Way Tustin, CA 92780 TABLE OF CONTENTS ExecutiveSummary ........................................................................................................... Summary of Consolidated Plan Process........................................................................... Introduction....................................................................................................................... SECTION I — HOUSING AND HOMELESS NEEDS ASSESSMENT PART A. Needs Assessment............................................................................................ 1. Current Estimates/Five Year Projections...................................................... 2. Nature and Extent of Homelessness............................................................ 3. Populations with Special Needs —Other than Homeless .............................. PART B. Lead -Based Paint Hazards................................................................................ SECTION II — HOUSING MARKET ANALYSIS PART A. Market and Inventory Characteristics................................................................ 1. Community Description................................................................................ 2. Market and Inventory Conditions................................................................. PART B. Public Assisted Housing.................................................................................... PART C. Facilities and Services for the Homeless........................................................... PART D. Facilities and Services for Special Need Groups ............................................... PART E. Barriers to Affordable Housing........................................................................... SECTION III — STRATEGIC PLAN PART A. Summary of Strategic Plan................................................................................ PART B. Strategy for Affordable Housing......................................................................... PART C. Strategy for Homelessness................................................................................ PART D. Strategy for Special Needs Groups................................................................... PART E. Non -housing Community Development Plan ..................................................... PART F. Barriers to Affordable Housing........................................................................... PART G. Lead -Based Paint Hazard Reduction................................................................ PART H Anti -Poverty Strategy......................................................................................... PART I. Institutional Structure and Intergovernmental Cooperation ................................ PARTJ. Coordination...................................................................................................... PART K. Public Housing Resident Initiatives.................................................................... SECTION IV — ACTION PLAN Executive Summary ........................................................................................................... PART A. Application - Standard Form 424....................................................................... PART B. Housing and Community Development Resources ........................................... PART C. Activities to be Undertaken................................................................................ PART D. Geographic Distribution..................................................................................... PART E. Homeless and Other Special Needs.................................................................. PARTF. Other Actions..................................................................................................... PART G. Program -Specific Requirements........................................................................ PART H. Citizen Participation and Consultation............................................................... PARTi. Communication................................................................................................... PARTJ. Community Vision.............................................................................................. PARTK. Strategies.......................................................................................................... PARTL. Action Plan......................................................................................................... PART M. Integrated Approach to Planning and Development ......................................... PARTN. Monitoring System............................................................................................. SECTION V — CERTIFICATIONS General Certifications........................................................................................................ Specific CDBG Certifications............................................................................................. LIST OF TABLES SECTION I SECTION 2 SECTION 3 SECTION 4 LIST OF MAPS Map 1 Areas of Black Concentration................................................................................ Map 2 Areas of Hispanic Concentration............................................................................ Map 3 Areas of Low Income Concentration...................................................................... Map 4 Areas of Very Low Income Concentration.............................................................. Map 5 Areas of Extremely Low Income Concentration..................................................... APPENDICES A. Glossary of Terms B. City of Tustin Census Tracts C. Affordability Gap Analysis D. Agencies Contacted E. Legal Notices and Resolutions F. Summary of Citizen Comments G. Monitoring Program H. Affordable Housing Ordinances City of Tustin Consolidated Plan FY 2005-10 Executive Summary The City of Tustin incorporated in 1927 as a small agricultural community of approximately 200 acres and 900 residents, making Tustin the third oldest city in Orange County. Development in the community was slow at first due, in part, to the Great Depression of the 1930s. Soon after World War II, urban development began to slowly increase in Tustin as it did throughout Southern California. In 1942, the war brought a new kind of growth to Tustin when the U.S. Navy built its Lighter -Than -Air Base on nearby bean fields. In 1951, this base was changed from a naval base to a marine facility supporting helicopter operations and renamed Marine Corps Air Station (MCAS), Tustin. The MCAS -Tustin later was determined to be a surplus to the needs of the Marine Corps and was identified for closure in 1991. The MCAS -Tustin was fully closed in July 1999. By the 1960s, rising land values and falling grove production induced agricultural landowners to sell their land for urban development. As a result of new development and annexations, the City's population jumped from 2,000 in 1960 to 21,000 in 1970, and continued to grow at a steady pace to reach a 2000 population of 67,504. According to the Department of Finance, the current population of the City of Tustin for the year 2004 is 70,300, reflecting a 0.9 percent growth rate. Local residents and visitors enjoy the convenience of an airport, golf courses, parks, and community center facilities. Residents and visitors enjoy a central Orange County location, an excellent climate, and a host of cultural activities within Tustin and neighboring communities. Action Plan For FY 2005-06, the City of Tustin will receive $923,725 of Community Development Block Grant funds. The City allocated CDBG funds to a variety of eligible projects to meet the community housing and non -housing needs. Citizen Participation The City of Tustin is the lead agency responsible for overseeing the development of the Consolidated Plan, while the Community Development Department is responsible for implementation of the Plan. To assist the City in accomplishing its Citizen Participation requirements, an ad hoc panel of non -elected community leaders, known as the Citizen Participation Committee was formed. The planning process started with an informational meeting held at the Community Center which was attended by the ad hoc committee, citizens and representatives from public service agencies. A second public hearing regarding the Consolidated Plan was held by the City Council. City staff notified Tustin 2005-2010 Consolidated Plan Executive Summary over 100 public service, housing and community organizations; and, posted a meeting notice in various locations in the City Hall complex, including the Library. Please refer to Appendix D for a complete listing of all agencies contacted during the community planning process, as well as all organizations contributing statistical data to this document. COMMUNITY PROFILE According to the 2000 United States Census, there were 67,504 persons in the City of Tustin. To meet the housing needs of these persons there are 25,406 total units of which 1,575 were vacant (for rent, for sale, or in the process of occupancy) during the Census timeframe. Just under half of the units (49.6 percent) were owner occupied. The population in Tustin grew at an annual rate of 5.68 percent between 1980 and 1990, significantly greater than the 1.98 percent of the surrounding Los Angeles - Orange County Metropolitan Statistical Area (MSA). Growth between 1990 and 2000 slowed somewhat, but was still greater than the .97 percent of the surrounding MSA. Overall growth from 1970 to 2000 was significantly higher in the City of Tustin at 217.7 percent versus 46.2 percent for the entire Los Angeles -Orange County MSA. Furthermore, the average household size in the City increased from 2.54 persons per household in 1980 to 2.77 in 1990 and 2.83 in 2000. According to the 2000 Census, the most significant population growth has occurred largely in the Hispanic and Other racial categories which parallels trends seen Countywide. Tustin's overall population make-up is 44.8 percent white, 34.2 percent Hispanic, 2.64 percent Black, and 18.3 percent Other Races (non -Hispanic). Tustin 2005-2010 Consolidated Plan Executive Summary HOUSING AND COMMUNITY DEVELOPMENT NEEDS Conditions According to the 1990 Census, the City of Tustin had a total of 19,281 housing units, 95.1 percent of which were occupied. The 2000 Census indicates that occupancy rates have declined somewhat to 93.8 percent. According to the 2000 Census, the City of Tustin had a total of 25,406 housing units in 2000. Although the number of single family homes has increased, the Citys housing stock is dominated by multiple -family units, which comprise 55 percent of the housing stock. Housing Needs Year 2000 Census data indicates that the total of low-income households (<80 percent area MR) in Tustin represent 37.34 percent, or 8,898 households. Of these, 70.17 percent or 6,244 households are renters, while the remainder has ownership tenure. Across the board, this circumstance is greatest for households with the lowest incomes. Among the low and moderate -income population, the Consolidated Plan reported a need for 505 units for the Very Low Income; 355 units for the Low Income; and 566 units for the Moderate Income for a total need of 1,426 affordable units. Housing Market Conditions The highest rate of housing construction occurred during the 1960's. A total of 39.7 percent of Tustin's housing stock were built prior to 1969 and are at least 30 years old. This indicates that 9,729 units are at the age when rehabilitation may be necessary, especially when maintenance has been deferred. Additionally, a total of 6,170 units will reach 30 years within the next ten years. Of these units, a large percentage was a result of annexation of existing units previously unincorporated areas of the County. As a result, more units maybe at the age of rehabilitation than the City anticipated. The 2004 median sales price for single-family homes in the City of Tustin ranges between $500,000 and $822,000, while the price for condominiums ranges from $305,000 to $451,000 for condominiums. According to the 2000 Census, 74.6 percent of homes (8,824 homes) are within the top 20% of National Value. However, the median household value of $264,412 featured a significant decline from 1990 values of $325,170, reflecting an overall trend in the regional housing market. The 1990 Census data indicated that 50% of all rental units in the City rent for more than $701 per month, and three-quarters rent for over $621 per month. According to the 2000 Census, the median gross rent for all units in Tustin was $895. In fact, 60.5 percent of rental households within the City of Tustin (7,261 households) pay rent that is in the national top 20 percent of rental costs. Actual rents are often much higher. A non-scientific survey of classified advertisements in two local publications, the Orange Tustin 2005-2010 Consolidated Plan Executive Summary iii County edition of the Los Angeles Times and the Orange County Register conducted in April 2005 reveal an average rental price for a one -bedroom being $975, for two - bedrooms the average was $1,350, and for a three -bedrooms it was $1,750+. Rental rates for apartments are generally lower than single-family homes, condominiums, and townhomes. Typically, single-family units were for three- and four- bedrooms. The average rent for single family home is between $2,000 and $2,400. Affordable Housing Needs The 1999 Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SCAG) shows a total of 22,572 households in Tustin. There are approximately 8,569 cost -burdened owner and renter households. Of the total households units, there are 2,389 overcrowded households of which 2,060 units were renter households and 330 units are owner occupied. While high local housing costs create an affordability problem for the cost -burdened owner and renter households, the shortage of larger rental units combined with the affordability problem, contributes to the overcrowding experienced by almost 2,400 households The 1990 Census indicates Tustin's median family income (MFI) was $42,840. Census data shows that 50% of all households earn 95% of the MFI or $40,600; 20% earn 50% below the MFI, or $21,240; the other 23% earn above $21,420 but below $40,600. For the 2000 Census, the median household income estimate for Tustin is approximately $60,092, as compared with $50,687 for the Los Angeles -Orange County MSA. The Census furthermore reports that 31.2 percent of households (7,435 households) are within the National Top 20% for High income. The City's two biggest housing concerns are to preserve the 100 federally- assisted housing units at the Tustin Gardens property which are at risk of conversion to market rates; and, rehabilitation activities to preserve the nearly 9,700 units which will reach 30 years of age during the next decade as safe and decent housing. The median sales prices for new and existing homes within Tustin has increased significantly in the last five years. The estimated median sales price of a single family home is between $500,000 and $822,000, while the median price for a condominium ranges between $305,000 and $451,000. To address current affordable housing needs, The City of Tustin plans to preserve the existing housing stock, construct new units to accommodate the range of incomes in the City, and assist first-time homebuyers in achieving home ownership. Tustin 2005-2010 Consolidated Plan Executive Summary iv Homeless Needs Available statistics currently indicate that the City of Tustin does not have a significant population nor subpopulation of homeless persons or homeless families with children. The City anticipates that homeless persons and homeless persons with children will be assisted on an as needed basis by making appropriate referrals to organizations or agencies that provide shelter, food and other services for homeless persons and homeless families with children. However, the City of Tustin recognizes that homelessness is a regional issue which needs to be addressed by all jurisdictions regardless of individual circumstances. The City identifies the Homeless Housing Partnership Program as one of the strategies to address the homelessness issue. The Homeless Housing Partnership program provides assistance for supportive housing and supportive services to help homeless persons and families transition from homelessness to living as independently as possible. The Homeless Housing Partnership Program includes 192 transitional housing units (to be operated by the Orange County Rescue Mission) to facilitate the movement of homeless individuals and families to permanent housing within 24 months and supportive services designed to address the special needs of homeless persons. The City has developed a strategy that will continue to refer homeless persons and homeless families with children to service agencies and organizations. Through financial contributions, the City will support agencies which provide shelter and other services to the homeless. Public and Assisted Housing Needs Although there are no public housing units within Tustin, 100 units within the City are Contracted to provide Section 8 housing. In addition, there are a total of 160 other assisted units through the Federal, State and Local funds. Of these projects receiving federal assistance, Tustin Gardens, which provides 100 Section 8 contracts is at risk of converting to market rate housing. Barriers to Affordable Housing The City's housing affordability is affected by factors in both the private and public sectors. Tustin's existing zoning ordinance allows for a range of residential densities from a maximum effective density of 4.35 units per net acre in the E-4 Residential Estate District to 24.9 units per net acre in the R-3 Multiple Family Residential District and 10 units per net acre in the MHP Mobilehome Park District. Tustin 2005-2010 Consolidated Plan Executive Summary v In order to keep costs down, the City uses housing set-aside funds to assist with predevelopment costs and gap financing, for projects located in redevelopment project areas. In addition, the City has adopted the State Historical Code which relaxes building code requirements in the City's Cultural Resources Overlay District, which will further reduce rehabilitation costs. All low-income housing projects are provided further assistance with a "one-stop" processing system which helps reduce holding costs incurred by developers and ultimately a unit's selling/rental price. The City of Tustin also offers a density bonus to incentivize the development of affordable housing alternatives. Please refer to Section H of this document for a copy of this ordinance. Fair Housing The city has agreed to affirmatively encourage fair housing practices ensure that all person have access to safe decent housing within the City of Tustin regardless of race, creed, color, national origin, religion, or handicapped status. Lead -Based Paint While the City prepared an estimate of the number of units that may possibly contain lead- based paint (LBP), the 1990 Census data revealed that rental properties in Tustin built between the years of 1940-1959 have the largest percentage (55%) of lower income households occupying them which may give indication to the greatest area of need for assessment (approximately 154 units). This trend again continued with the 2000 Census. According to the Orange County Public Health - Epidemiology Division, the City of Tustin had six persons who reported incidents of lead poisoning between 1990 and 2000. Between 2000 and 2004 the City of Tustin had four cases of children under the age of 16 who met the case definition of requiring a home visit and environmental investigation for the presence of elevated lead levels. In all of the cases documented by the Public Health Department, the poisoning level was determined to be relatively low. The properties most at risk for lead-based paint toxicity are deteriorated units with leaky roofs and plumbing. However, it must be noted that lead-based paint is not the only source of lead poisoning in children. Other sources of lead to which they may have been exposed, and thus causes of elevated blood lead levels are china and pottery, lead painted clay pots containing tamarind candy, and lead-based colorings in some imported spices. The City will implement into its housing policies over the next five years the following: + Include lead-based paint hazard reduction as an eligible rehabilitation activity. Tustin 2005-2010 Consolidated Plan Executive Summary V! # Review existing regulations, housing and rehabilitation codes to assure lead- based paint hazard reduction is incorporated. + Require testing and hazard reduction in conjunction with rehabilitation. + Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. Other Issues The City of Tustin has estimated, to the extent practicable, the number of those persons who are not homeless but require supportive housing, including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addiction, persons diagnosed with AIDS and related diseases, and their supportive housing needs. According to the 2000 Census, among the population over 65 years of age in the City of Tustin, 1,249 were living alone, 1,795 reported having a disability, and 293 were living below the poverty level. The Orange County Office on Aging (OoA) reports that as of December 2004, the City of Tustin has approximately 175 elderly individuals within the City who receive supportive services through the County s Social Services Agency, including case management and/or meal services. An additional 874 receive Medi -Cal benefits, as of December 2004. The Social Services Agency (SSA) Adult Services and Assistance Programs division includes programs that serve large numbers of older adults. SSA provides one or more types of services and assistance to persons and families each month. SSA provides services to approximately 17% of the County's total 65+ population of 280,763, some of which are duplicated in more than one assistance program. For example, recipients may receive Medi -Cal and Multipurpose Senior Services (MSSP). The City's Senior Center receives 10 requests per year for Shared Housing, and was able to place a majority in shared living conditions. The Orange County Health Care Agency, Adult Mental Health Services (AMHS) division does not keep exact counts of persons with mental illness in each jurisdiction, however, it estimates that approximately three percent of the City's general population or 2,025 persons have some form of mental illness and may be in need of supportive housing in the City of Tustin. The AIDS Coordinator for the Orange County Health Care Agency estimates that there are currently four individuals within the City of Tustin requiring supportive housing. Cumulatively, since 1981, the City of Tustin has had 109 reported cases of AIDS, an incidence rate of 163.2 per 100,000. AIDS cases have been reported in each of the 31 cities within the County of Orange. At 109 cases, Tustin ranks just slightly below the Tustin 2005-2010 Consolidated Plan Executive Summary V11 median of occurrences. At this time, the AIDS Services Foundation acts as a referral agency for persons within the City of Tustin requiring HIV/AIDS services. Community Development Needs Tustin's CDBG target area was planned and developed prior to annexation therefore, the area is limited in terms of park and recreational opportunities. As a result, Tustin is giving considerable attention to the area in terms of providing additional private and public youth, adult, and senior services and facilities to supplement those which are heavily utilized at this time. Coordination The City of Tustin coordinates with and maintains a listing of County and State licensed facilities providing supportive housing and acquires updates as necessary from the State's Community Care Licensing - Residential Division Office. The City also coordinates with public and assisted housing providers and private and governmental health, mental health, and service agencies to solicit input though the public participation process. Tustin 2005-2010 Consolidated Plan Executive Summary viii HOUSING AND COMMUNITY DEVELOPMENT STRATEGY Vision for Change The purpose of Tustin's Consolidated Plan is to achieve three basic goals for its citizens: + Provide decent housing + Provide a suitable living environment + Expand economic opportunities Housing Priorities Tustin's 5 -year housing priorities include: + Providing homeowner assistance to low and moderate income persons through; 1) first time homebuyer program - low interest rate/low downpayment mortgages; 2) downpayment assistance; 3) Gap Financing; and 4) the Mortgage Credit Certificate (MCC) Program. + Preservation of 100 existing affordable units at risk of conversion. + Rehabilitation of existing housing stock through; 1) Owner rehabilitation loans or grants; 2) Multi -family acquisition, rehabilitation, and conversion to ownership housing; 3) Rental Rehabilitation Loans or grants; and 4) Small Project Multi- family acquisition, rehabilitation and rental. + New housing construction for homeownership. + Support activities of the non-profit organizations in obtaining financing to provide the needed rehabilitation of transitional shelter at the Tustin Legacy. Non -Housing Community Development Priorities Tustin's non -housing community development priorities are geared toward creating recreational opportunities for youth; developing Neighborhood Facilities to service youth and adults; and, child care facilities/services. The City will improve the various types of infrastructure in the CDBG target area which was constructed more than 25 years ago. Tustin 2005-2010 Consolidated Plan Executive Summary ix Through the City's full service senior center, services will be enhanced to encourage full participation in the center's programs which may require additional services. Crime prevention activities will be targeted in order to create a safe, healthy living environment. There will be a continuing focus on code enforcement and planning activities for low/mod areas of the City. Anti -Poverty Strategy The City has identified several goals, policies and programs designed to provide adequate, safe and affordable housing for all segments of the population. Some of these goals will ensure that housing is affordable to all segments of the City's population. Accordingly, the City will provide for new affordable housing opportunities; work to preserve affordable housing units in the City; promote the availability of affordable housing for large, low- income families; promote, assist, and facilitate the development of emergency and transitional housing; and, promote equal opportunity housing programs. Housing and Community Development Resources Tustin will target its Federal, State and local housing resources for households at the 35% very low, 25% low and 40% moderate -income levels. CDBG funds will be targeted to address the City's non -housing community development needs such as services to youth and seniors. Coordination of Strategic Plan The City of Tustin will strive to enhance coordination between the City and public and assisted housing providers and private and governmental health, mental health, and service agencies by developing productive working relationships with such agencies by soliciting input through the public participation process. Tustin 2005-2010 Consolidated Plan Executive Summary x ONE-YEAR ACTION PLAN FY 2005-06 Description of Key Projects The Action Plan delineates the City of Tustin's funding priorities and allocations for the use of Program Year 2005-06 Community Development Block Grant (CDBG) funds. The Plan describes: + The resources available for program implementation; + Activities to be undertaken during the year; + Programs for the City's homeless and other special needs groups; and, + Other actions taken by the City that have or will be undertaken to implement the Action Plan. The City of Tustin has allocated CDBG funds to a variety of eligible projects to meet community housing -and non -housing needs. For Fiscal Year 2005-06 the City of Tustin will receive $923,725 of CDBG funds through the U.S. Department of Housing and Urban Development. The following is a listing of all activities that will be funded for FY 2005-06: Public Services Activities Tustin Parks and Recreation Department (Youth Coordinator) Graffiti Removal - CDBG target areas Feedback Foundation, Inc. Boys and Girls Club Laurel House Big Brothers/Big Sisters of Orange County Assessment and Treatment Services Center Public Services Subtotal Public Facilities and Improvements Sycamore Avenue Sidewalk $ 34,558 $ 20,000 $ 25,000 $ 25,000 $ 4,000 $ 5,000 $138,558 $ 45,000 Tustin 2005-2010 Consolidated Plan Executive Summary A EI Camino Landscaping $100,000 Walnut Avenue Sidewalk $110,000 Pasadena Storm Drain $100,000 Williams Avenue Sidewalk $ 75,000 Sycamore Gardens ROW $199-887 Public Facilities and Improvements Subtotal $629,887 Rehabilitation and Preservation Activities Code Enforcement $ 71,800 Program Administration and Planning Activities Fair Housing Counseling Agency _ $ 18,480 CDBG Program Administration S 65 000 Administration & Planning Subtotal $ 83,480 Grand Total for all Activities Tustin 2005-2010 Consolidated Plan . Executive Summary xii Lead Agencies The City of Tustin is the "Lead Agency" or entity responsible for overseeing the development of the Plan. The Community Development Department is responsible for the day-to-day administration of programs developed to meet the City's goals. To comment on Tustin's Consolidated Plan, please contact. Justine Willkom Planning Department City of Tustin 300 Centennial Way Tustin, CA 92780 (714) 573-3174 Tustin 2005-2010 Consolidated Plan Executive Summary xiii Summary of Consolidated Plan Development Process In preparing its Consolidated Plan, the City of Tustin contacted many agencies, groups, organizations that provide housing and supportive housing services to residents within the City and in Orange County. Significant aspects of the development process included consultations and cooperation between these groups in order to provide the most current information available. Notification of the first citizen participation meeting was published in the Tustin Weekly on February 4, 2005. Additionally, notification was sent directly to 100 agencies and organizations listed in Appendix D. The public participation meeting for the City's Consolidated Plan was held on February 16, 2005 at 6:00 p.m. at the Citys Community Center located at 300 Centennial Way. Meeting attendants included representatives from various social service agencies as well as City staff. The formal public comment period on the complete draft Consolidated Plan commenced on March 21, 2005 and closed on April 19, 2005. Publication of the availability of the Draft Consolidated Plan was published on March 17, 2005 in the Tustin Weekly. At the close of the formal public comment period, staff presented the final Consolidated Plan document to the Tustin City Council on May 2, 2005 for their approval and direction to submit the document to HUD. Tustin Consolidated Plan Summary AV Introduction The overall goal of the community development and planning programs covered by the Consolidated Plan is to develop a viable urban community by providing decent housing and a suitable living environment and expanding economic opportunities principally for low- and moderate -income persons. The Federal government requires that local jurisdictions prepare this document and state within it its plan that the jurisdiction will pursue this goal for all of its community development and planning programs, including housing programs. This Consolidated Plan serves the following functions: 1. A planning document for the City of Tustin, which builds on a participatory process at the lowest levels. 2. An application for federal funds under HUD's formula grant programs. 3. A strategy to be followed in carrying out HUD programs. 4. An action plan that provides a basis for assessing performance. Tustin Consolidated Plan xv Introduction This section discusses the estimated housing needs for the City of Tustin projected for the five-year period commencing July 1, 2005 and concluding June 30, 2010. As required by the U.S. Department of Housing and Urban Development (HUD), the housing data contained in this Section of the Consolidated Plan (Plan) is based on 2000 U.S. Census data, with comparisons to year 1990 U.S. Census data. Additionally, data has been extracted from both the City's 2002 Housing Element and Technical Memorandum, which has received approval from the State Department of Housing and Community Development (HCD), the 1999 SCAG Regional Housing Needs Assessments (RHNA99), and the Final Report Comprehensive Affordable Housing Strategy (2000-2010) prepared for the City of Tustin and the Tustin Community Redevelopment Agency (CRA), adopted February 7, 2000. The discussion also reflects consultation with social service agencies concerning the housing needs of children, elderly persons, persons with disabilities, homeless persons, and other persons served by such agencies, and the citizen participation process. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-1 PART A: NEEDS ASSESSMENT 1. Current Estimates/Five-Year Projections This portion of the Consolidated Plan includes an estimate of Tustin's significant current needs for housing assistance for extremely low-income, low-income, moderate -income, and middle-income families, for renters and owners for elderly persons, for single persons, for large families, for persons with HIV/AIDS and their families, and for persons with disabilities. A description is also included of the extent to which cost burden and severe cost burden (as defined in Appendix A, Definitions), overcrowding (especially for large families), and substandard housing conditions are being experienced by each of the income categories listed above compared to the City as a whole. HUD regulations for preparation of the Consolidated Plan also require the City to determine the extent to which any racial or ethnic group has disproportionately a greater need for any of the above income categories. a. Extremely Low-Income/Low-Income/Moderate-Income/Middle-Income Housing Assistance Needs of Low & Moderate Income Households - Table i A provides information about the housing assistance needs of very -low, low and moderate income households relative to the cost of housing and problems with housing units. The table distinguishes households by tenure type and specific sub -categories are highlighted (elderly, small -related households, large related households). HUD requirements for preparation of a Consolidated Plan define cost burdened households as those with 30 percent of their income going towards rent -plus -utilities or mortgage -plus -principal and interest; while severely cost burdened households spend 50 percent or more of their income on rent -plus -utilities or mortgage -plus -principal and interest. Year 2000 Census data indicate that the total low and moderate -income households (earning less than 80 percent of MR) in Tustin represent 38 percent, or 8,898 households. Of these, 70 percent or 6,244 households are renters, while the remaining 2,654 are owner occupied. Rental households are also reporting higher percentages of cost burden and housing problems. Across the board, this burden is greatest for households with the lowest incomes and gradually decreases in incidence as income increases. Overall, 82 percent of rental households earning less than 80 percent of MFI or 5,135 of Tustin's rental households are experiencing one type or more of a housing problem, including cost burden greater than 30 percent of income, overcrowding, and units without complete kitchen or plumbing facilities. As the 2000 Census demonstrates, when compared with all 23,780 households within the City of Tustin, this burden is even more evident as 45 percent of households at all income levels citywide experience some type of housing problem. Tustin 20052010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-2 In addition to the income limits for households that are considered low and moderate as defined by HUD, Tustin must also be responsive to the SCAG RHNA model, to meet its fair share of affordable housing for the region. Existing need data is intended as a planning aide for jurisdictions in programming, goal setting, and allocation. It is not intended for construction target nor is the jurisdiction expected to solve the existing need, it is only one projection of housing conditions. The RHNA forecasted both Existing Need and Future/Construction need. Existing Need is defined by the estimated number of households with one or more Federally -defined "housing problems." These problems include: (1) overcrowding' (more than 1.01 persons per bedroom) (2) un-affordability/cost-burden (housing costs in excess of 30 percent of gross household income) (3) substandard housing (lack of adequate kitchen, toilet, heat or plumbing facilities) The SCAG RHNA99 Future/Construction Need is a projection of future housing needs to accommodate forecasted population and employment growth. According to the Orange County Council of Governments (OCCOG) recommendation to SCAG, the City of Tustin Future/Construction Need is 3,298 units over the seven and a half (7.5) -year period ending in June of 2005. An update of this RHNA analysis will be conducted, with a current deadline of July 1, 2008, an extension of two years from the current deadline. The proposed planning period will be six years, coinciding with each alternate Regional Transportation Plan (RTP) update performed by SCAG. The primary determinant of housing needs for a region is household growth, which is determined by the region's RTP growth forecast. Beyond accommodation of household growth, however, it is understood that the region must maintain an adequate supply of vacancies and replace housing units in the existing stock that are expected to be lost due to demolition, natural disaster, and conversion to non -housing units, in order to meet all housing needs. The RHNA also identifies the need for units that are affordable to various income categories, similar to HUD as shown in Table I -A. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-3 Table I -A RHNA 99 Projected Seven and a Half -Year Housing Needs City of Tustin Total 7'/s -Year Percent Housin0 Need of Tetat Very Low Income (<50%) 694 21% Low Income (51-80%) 489 15% Moderate Income (81-120%) ZZ$ 24-01 Subtotal—Low and Moderate 1,961 60% High Income (>120%) 133.Z 41°ln Total Housing Need 3,298 100.0% Source: Orange County Council of Governments (OCCOG) recommendation to Southern California Association of Governments (SCAG), City of Tustin. Table I -A indicates a need in Tustin for lower income households and housing affordable to moderate and upper income households. Finally, in developing a strategy for utilization of the Tustin Community Redevelopment Agency housing set-aside funds (derived from 20 percent of the tax increment collected by the Tustin Community Redevelopment Agency), the Comprehensive Affordable Housing Strategy (2000-2010) established a range of income levels to correspond to both common State and Federal program guidelines for renters and owners, providing a cohesive method to plan for and target affordable housing needs specific to the City of Tustin. These income levels are utilized to maximize the competitiveness of projects applying for allocation of nine -percent tax credits. Table I -C and Table I -D depicted the income limits for Rental Housing and Ownership Housing respectively. Each income range was based on the HUD published 2005 median income levels for Orange County of $75,700 for a family of four. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment I-4 Table I -B summarizes income ranges based on HUD's 2005 Income Limits. Table 1-B Consolidated Plan Income Ranges Orange County Extremely Low -Income 0-30% MFI <$23,050 Low -Income 31-50% MFI $23,051-$38,400 Moderate -Income 51-80% MFI $38,401-$61,450 Middle-income 81-95% MFI $61,451-$71,915 Based on a 2005 median household income for a family of four In Orange County of $75,700. Source: HUD 2005 Income Limits Affordable monthly housing cost is defined as 30 percent of annual household gross income. Renters' affordable housing cost is defined to include monthly rent and utility costs. For homeowners, affordable expense is defined to include principal and interest, loan insurance, taxes, fire and casualty insurance, utilities and condominium fees. For ownership units, affordable housing cost is defined at the top of each income range. Table I -C, below, summarizes these definitions for rental housing while Table I -D provides this information for owned properties: Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-5 Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-6 Table I -C Rental Housing Income Level and Affordable Housing Cost Definitions' City of Tustin 2005 Affordable Housing Strategy Income 2005 Income Limit Monthly Level for a Family of Housing 4 persons Cost 1 <50% $36,336 30% of 48% $908 Median (48% of Median Income Income) II 51-80% $45,420 30% of 60% $1,135 Median (60% of Median Income Income) III >80% $83,270 30% of 110% $2,081 Median (110% of Median Income Income) Based on 2005 median income of $75,700 for Orange County for a family of four, and average of 4 persons per three-bedroom unit for purposes of calculating household income, including utilities. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-6 Table I -D Ownership Housing Income Level and Affordable Housing Cost Definitions' City of Tustin 2005 Affordable Housing Strategy Income 2005 Assumed 2005 Income Limit Monthly Range Income Limit for a Family of Housing d persons cost t <50% of $38,400 30% of 50% $960 Median (50% of Median Income Income) II 51-80% of $61,450 30% of 70% $1,075 Median (70% of Median Income Income) III 81-100% of $75,700 35% of 100% $2,207 Median (100% of Median Income Income) IV 101-120% of $90,840 35% of 110% $2,428 Median (110% of Median Income Income) Based on 2005 median income of $75,700 for Orange County for a family of four, and average of 4 persons per three-bedroom unit for purposes of calculating household income. Assumptions include utility allowance, homeowner association fees, property taxes, and insurance costs. Source: Tustin Affordability Gap Analysis, Comprehensive Affordable Housing Strategy (2000-2010) (Affordability Gap Tables 2 & 4). In addition to identifying target income limits and affordable costs, the Comprehensive Affordability Housing Strategy (2000-2010) included an Affordability Gap Analysis. Because low and moderate -income households cannot afford to pay the rent or mortgage payments necessary to cover the cost of constructing and operating a typical apartment or owning a home, public funds and other assistance are needed to meet affordable housing needs. The analysis, a copy of which has been included in Appendix C, identifies the potential "subsidy gap" between housing costs for a range of housing product types and the housing payments affordable to families at different income levels. To summarize the findings of the analysis, it was determined that the renter affordability gaps (see Table I -C) are larger for Level I and Level II income households who are earning less than 80 percent of the area median income, or less than $61,450. Additionally, Level III households can afford rentals with smaller subsidies, and in some Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-7 cases no subsidies would be required. For ownership housing, affordable monthly costs will vary depending upon the type of ownership housing prototype due to alternative utility allowance, homeowner association fees, and property tax assumptions. b. Changes in Housing Needs 1) General Need According to the City's Comprehensive Housing Affordability Strategy (CHAS) Housing Needs Assessment, rehabilitation of the existing housing stock will be one of the City's biggest concerns over the next decade. A total of 39.7 percent of the City's housing stock was built prior to 1969 and is at least 30 years old. This indicates that 9,729 units are at the age when rehabilitation may be necessary, especially if maintenance has been deferred. Deferred maintenance is especially a problem in lower income households and those homes where cost burden is an issue as they typically do not have the funds available for housing repair activities. Additionally, a total of 6,170, or 25.2 percent of the housing units within the City of Tustin were built between 1970 and 1979 and thus will reach 30 years of age this decade. Of these units, a large percentage was a result of annexation of existing units (constructed prior to annexation) in previously unincorporated areas of the County. Therefore, more units maybe at the age of rehabilitation than the City anticipated, Preservation of assisted housing units at risk of conversion to market rates has also been identified to be important for maintenance of the City's existing affordable housing stock. According to RHNA99, high local housing costs, discussed previously, relative to income creates an affordability problem for 5,494 low and moderate -income (up to 80 percent of Median Income) cost -burdened owner and renter households in Tustin. The affordability problem and shortage of larger rental units contributes to the overcrowding experienced by 2,390 households as shown on Table I -E below. Table I -E summarizes the RHNA99 Existing Need within the City of Tustin. This data is currently being updated and future planning for the City of Tustin will take into account this information once it is available. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-8 To address its current and future housing needs, Tustin will need to develop a range of housing programs which seek to rehabilitate and preserve the existing housing stock, construct new units affordable to the range of incomes in the City, and assist first-time homebuyers in achieving home ownership. 2) Disproportionate Racial or Ethnic Need The Consolidated Plan must identify the specific needs of any racial or ethnic group that has a disproportionately greater need in comparison to the needs of each specific income category as a whole. For this purpose, disproportionately greater need exists when the percentage of persons within a certain income category who are members of a particular racial or ethnic groups is at least 10 percentage points higher than the percentage of persons in the category as a whole. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-9 Table I -E RHNA 99 Existing Need City of Tustin Income Level <30% 31%:50% 51%.80%, 81%..95% >95% Total All Households Renters 1,506 1,862 517 653 2,511 814 1,769 589 5,682 6 674 13,328 q-245 Owners Total 2,022 2,515 3,325 2,357 12,355 22,573 Households with Housing Problems Renters 1,291 1,599 314 392 1,766 352 722 342 1,113 1 659 6,488 3,058 Owners Total 1,605 1,991 2,117 1,064 2,772 9,545 Households with Cost Burden Renters 1,291 1,458 307 392 1,698 352 630 342 444 1-659 5,519 &051 Owners Total 1,598 1,850 2,049 972 2,103 8,569 Households with Overcrowding' Renters 308 472 Owners 0 30 366 46 298 39 618 217 2,060 330 Total 308 501 412 335 835 2,390 Overcrowding definitions based on SCAG's definition of more than 1.01 persons per bedroom. HUD defines overcrowding as more than 1.0 person per room. Source: SCAG RHNA99 To address its current and future housing needs, Tustin will need to develop a range of housing programs which seek to rehabilitate and preserve the existing housing stock, construct new units affordable to the range of incomes in the City, and assist first-time homebuyers in achieving home ownership. 2) Disproportionate Racial or Ethnic Need The Consolidated Plan must identify the specific needs of any racial or ethnic group that has a disproportionately greater need in comparison to the needs of each specific income category as a whole. For this purpose, disproportionately greater need exists when the percentage of persons within a certain income category who are members of a particular racial or ethnic groups is at least 10 percentage points higher than the percentage of persons in the category as a whole. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-9 According to data taken from the 2000 Census, the only racial group that has a disproportionately greater need as defined by HUD are non -Hispanic Blacks, who have proportionately the lowest median income at $44,348. A total of 43.6% of the 798 households defining themselves as Black for the 2000 Census are within the very low- income category (which is defined as 0 to 50 percent of the median family income).This racial group represents about 3.1 percent of all persons in the community, for a total of 1,970 persons, a decrease of 925 persons or 32 percent, likely due to the closure of the MCAS -Tustin. The reuse of the MCAS base will occur primarily through new residential, office, retail, industrial, hotel, and golf course development. In addition, a portion of the existing base housing will be rehabilitated and sold as both market -rate and affordable housing. At build out of the MCAS property, the facility is projected to include over 9 million square feet of non-residential development and 4,500 single and multi -family homes. 2. Nature and Extent of Homelessness a. Needs of Sheltered and Unsheltered Homeless - Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homeless include the general lack of housing affordable to Low and Moderate income persons, increases in the number of persons whose incomes fall below the poverty level, reductions in public subsidy to the poor, and the deinstitutionalization of the mentally ill. The issue of homelessness is considered regional in nature. Nomadic tendencies of homeless persons make it difficult to assess the population accurately. According to the County of Orange's 2004 Continuum of Care Application to HUD, the County has 10,500 homeless individuals of which an estimated 8,544 are unsheltered, 1.169 are in emergency shelters and 787 are in transitional shelters. An additional 24,499 are person in homeless families with children, with an estimated 23,211 unsheltered, 1,074 in transitional and 214 in emergency shelter facilities. Of these 35,000 homeless men, women, and children, 7,866 are identified as chronically homeless, 2,218 as severely mentally ill, 2,029 are suffering from HIV/AIDS, 6,988 are victims of domestic violence and 6,328 suffer from chronic substance abuse. HUD Defines chronically homeless as a person who is "chronically homeless" is an unaccompanied homeless individual with a disabling condition who has either been continuously homeless for a year or more OR has had at least four (4) episodes of homelessness in the past three (3) years. In order to be considered chronically homeless, a person must have been sleeping in a place not meant for human habitation (e.g., living on the streets) and/or in an emergency homeless shelter." A disabling condition is defined as "a diagnosable substance use disorder, serious mental illness, developmental disability, or chronic physical illness or disability, including the co -occurrence of two or more of these conditions." A disabling condition limits an individual's ability to work or perform one or more activities of daily living. An episode of homelessness is a separate, Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-10 distinct, and sustained stay on the streets and/or in an emergency homeless shelter. A chronically homeless person must be unaccompanied and disabled during each episode. In its report, Demographic Profile and Survey of Homeless Persons Seeking Services in Orange County, the Research Committee of the Orange County Homeless Issues Task Force created a demographic profile of homeless persons seeking services in Orange County. While the report did not rely on a scientifically random sample of the homeless population, it did rely on interviews with 1,090 homeless persons through 19 service agencies in the County of Orange. The report showed the mean age of the homeless persons interviewed was 31. Two-thirds were men, one-third were women, and one-third of all men were veterans. One-quarter of all those interviewed had dependent children. Half of all respondents indicated that their inability to afford housing was a major cause of their homelessness. The 1990 U. S. Census indicated that there are 32 homeless persons housed in emergency shelters in the City and another ten were visible in street locations. In 2000, the Census indicated that this number was M. However, 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 to other areas within Orange County, rather than stay for extended periods of time. Information regarding the nature and extent of homelessness by racial and ethnic groups is not available at this time. b. Subpopulations With the limited and out of date statistical information available, it is not practicable to assess the needs of the subpopulations for Tustin. As indicated, homeless individuals encountered by City staff and/or the Police Department are assisted once an assessment of their needs are made. The City has not documented actual statistics for each individual encountered. C. Needs of Persons Threatened with Homelessness At this time, the City of Tustin is not able to ascertain the specific characteristics and needs of low-income individuals and families with children (especially those with income below 30 percent of area median income) who are currently housed but threatened with homelessness. This is due in part to the reasons stated above, in that homeless persons and families appear to relocate or potentially seek assistance from shelters or services in adjacent cities. However, there is some indication that female -headed households may experience the greatest threat. Female -headed households tend to have lower incomes and special needs, thus limiting housing availability, for this group. One of the more dramatic changes in types of households since the 1970 Census has been the increase in this group. According to the 1970 Census, approximately 8 percent of the family households were female headed. The 1980 Census showed an increase to 17.8 percent, or 1,578 households. However, Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-11 by 1990, while the absolute number of female -headed households increased to 2,054, their proportion of the total population declined to 11.6 percent. According to the year 2000 U.S. Census, 12 percent of the households in the City were female headed. By comparison, only 1,050 households were male headed, or roughly 5 percent of the total households in the City. Furthermore the 2000 Census indicates that there are 2,478 single parent households in the City of Tustin, indicating an additional instance of housing cost burden as single parent households of both sexes often face a disproportionate housing cost burden. Furthermore, of the 2,054 female -headed households in 1990, 1,178 had children 18 years of age or younger. In 2000, of the 2,842 female -headed households, 1,779 had children under 18 years of age. For these families it is important that the home be close to schools and services as a necessity for their daily living requirements, while they will also will derive great benefit from safe parks, streets, and recreational areas. Of the total number of female heads of household in 1990, 27 percent were below the poverty level. By 2000, this number decreased to 15 percent of female -headed households, or 367 households, who were living below the poverty level. For these households, locating ideal housing is severely restricted. Due to financial constraints, the family is often not able to find housing that is close to needed services, schools, and public transportation. In fact, to those persons who are living below the poverty level, almost all, if not all, safe decent housing will create a sever cost burden to these households. Based upon these statistics, the City of Tustin will explore program options to assist in the provision and funding services of temporary housing such as transitional housing or single room occupancy housing, and a homeless prevention emergency loan program. Table I -F summarizes the Continuum Care Gap Analysis by individuals and families with children. This table is provided by HUD to assist jurisdictions in realizing unmet gaps in providing housing and supportive services to homeless persons and persons threatened with homelessness. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-12 Table I•F (HUD Table 1A) Continuum of Care: Gaps Analysis Individuals Estimated Current Unmet Relative Permanent Housing Need Inventory Need / Priority Estimated Case Mana ement Substance Abuse Treatment Supportive Gap Services Individuals Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-13 Emergency helter Beds / Units Transitional Housing Permanent Housing Total Job Trainin Estimated Case Mana ement Substance Abuse Treatment Supportive Mental Health Care Services Housina Placement Slots Life Skills Training Other Chronic Substance Abusers Seriously Mentally III Estimated Dually - Diagnosed Sub- Veterans populations Persons with HIV/AIDS Victims of Domestic Violence Youth Other Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-13 Table I -F (HUD Table 1A) Continuum of Care: Gaps Analysis Continued Persons in Families with Chilrlran Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-14 Emergency Shelter Beds / Units Transitional Housing Permanent Housing Total Job Training Case Mana ement Estimated Supportive Substance Abuse Treatment Mental Health Care Services Housina Placement Slots Life Skills Trainin Other Chronic Substance Abusers SeriouslV Mentally III Estimated Dually - Diagnosed Sub- Veterans populations Pbrsons with HN/AIDS Victims of Domestic Violence Youth Other Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-14 3. Populations with Special Needs - Other Than Homeless a. Need for Supportive Housing Tustin has estimated, to the extent practicable, the numbers of those persons who are not homeless but require supportive housing, including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addiction, persons diagnosed with AIDS and related diseases, and a description of their supportive housing needs. Table I -G summarizes the City's priority needs and the estimated dollar amount to address the need for this group: Table 1-G (HUD Table 1 B) Special Needs/Non-Homeless Subpopulations Table 1B Special Needs of the Non -Homeless Sub -Populations Priority Need High, Medium, Low, No Such Need Estimated Priority Units Estimated Dollars to Address Elder) Frail Elder) Severe Mental Illness Developmentally Disabled Physically Disabled Persons w/ Alcohol/Other Drug Addictions Persons w/ HIV/AIDS Other S eci Total Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-15 Elderly/Frail Elderly: The Orange County Office on Aging (OoA) reports that as of December 2004, the City of Tustin has approximately 175 elderly individuals within the City who receive supportive services through the County's Social Services Agency, including case management and/or meal services. An additional 874 receive Medi -Cal benefits, as of December 2004. Through Feedback Foundation, a new In -Home Services program has been initiated to assist elderly too frail to perform daily living tasks. Tustin has 51 current participants in the program. Table I -H provides information on residents within the City of Tustin who are over the age of 65 and receive various Orange County -operated programs administered by the Social Services Agency, comparing Dec. 2003 and Dec. 2004. Table I -H City of Tustin Social Services for persons aged 65+ Program December 2003 December 2004 Adult Protective 9 7 Services APS Medi -Cal 816 874 In Home 140 139 Supportive Services IHSS Food Stamps 24 1 29 Multipurpose 10 _F No data available Senior Services Program(MSSP) Source: Orange County Office on Aging In addition to the above programs, SSA provides Adult Protective Services to protect frail elders and dependent adults from abuse and to enable low income elderly, disabled, and blind individuals to remain safely in their own homes. The clients could be anyone who has suffered from financial, physical, mental, or sexual abuse, neglect by another, abandonment or self-neglect. The City's Senior Center receives 10 requests per year for Shared Housing, and was able to place a majority in shared living conditions. Elderly individuals in need of Meal Delivery Services and Shared Housing Services provided on-site at the City's Senior Center is estimated to be approximately 385 individuals. The City's Senior Center received 10 requests per year for Shared Housing, and were able to place the majority of seniors in shared living conditions. The overall aging of persons within the County will continue to impact and increase the need for supportive services directed at addressing their unique needs. In fact, according to the Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-16 Condition of Older Adults Report generated by the County of Orange, adults 55 years and older make up 17.8 percent of the population in Orange County. Those 65 and older represent slightly more than 9 percent of the total population in Orange County and are divided 60 percent female and 40 percent male. Over the last decade Orange County's population has grown at a faster pace than that of California. There was also a faster growth in those 65+ and those 85+. Orange County's overall population increase between 1990 and 2000 was 18.1 percent compared with California's 13.8 percent. The 65+ population increased 27 percent in Orange County versus 14.7 percent in California. The number of persons 85 years of age and older increased 47.4 percent in Orange County and 42.3 percent in the state. The need for supportive services is especially great given that: * Orange County older adults have a lower median household income than that of the county in general. + ($45,420 for 65-74 year olds and $30,856 for 75+ year olds versus $58,820 for the county in general). 0 31.8 percent of all older persons reporting income in 2001 made less than $10,000; the median income reported was $14,152. * 66 percent of Orange County adults aged 65+ indicated they were employed for wages; 65 percent of those aged 75-84 were employed for wages. * Only 2 percent of Orange County adults aged 65+ reported being "retired." * 6.2 percent of Orange County seniors have incomes below the poverty level. Severe Mental Illness: Orange County Mental Health Division does not retain statistics for individual cities within the County and could not provide an estimate of the population with Severe Mental Illness. Therefore, it is not practicable for the City to estimate the supportive housing needs of this population. Developmentally Disabled/Mental Illness: The Orange County Adult Mental Health Services (AMHS) provides rehabilitative mental health services and episodic treatment services to Orange County Special Needs population. The AMHS does not retain statistics for individual cities within the County. However, it estimated that in the general population about 3 percent have some form of mental illness. Thus, of the City's general population of 67,504, roughly 2,025 persons have mental illness. Of these persons, standard estimates place over 90 percent of this subpopulation with incomes below the poverty level. The AMHS identified the need for additional housing options such as licensed care facilities, transitional housing, and new permanent housing to assist the already overburden existing system of care. The AMHS also anticipates an increase in Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-17 this special needs population especially among the mentally disabled homeless persons with substance abuse and arrest record. Physically Disabled: The Orange County Health Agency does not retain statistics for individual cities within the County and therefore is not able to provide an accurate estimate of physically disabled persons within the City. Therefore, it is not practicable for the City to estimate the supportive housing needs of this population. Alcohol/Other Drug Addiction: The Orange County Health Care Agency - Alcohol and Drug Abuse Services division (ADAS) does not retain statistics for individual cities within the County and could not provide an estimate of the population. Therefore, it is not practicable for the City to estimate the supportive housing needs of this population. However, the ADAS identified the need for additional funding opportunities to increase the total number of substance abuse services beds and expand the range of services. The ADAS identified the following as their unmet needs: adolescent inpatients and residential detoxification programs, short term adolescent recovery programs, dually diagnosed detoxification and recovery programs, non -secured custodial treatment facilities and transitional recovery facilities. AIDS and Related Diseases: The AIDS Coordinator for the Orange County Health Care Agency estimates that the City of Tustin currently has four persons requiring supportive housing. Currently, the AIDS Services Foundation acts as a referral agency putting persons with special needs in contact with providers. In January 2000, the Housing Committee of the Orange County HIV Planning Council completed the Orange County HIV/AIDS Housing Plan. Within the Plan, the Committee indicated the need of collaboration between the AIDS housing and service -providers, advocates, and people living with HIV/AIDS with mainstream affordable housing and homelessness groups. According to the FY 2000-2001 Comprehensive HIV Services Plan developed for the Orange County Eligible Metropolitan Area (EMA): In Orange County, the problem of homelessness among those living with HIV is exacerbated by the high cost of rental housing and the fact that there are more low-income renters than low-cost housing units available. Recent changes in treatment regimens have caused improvements in the medical status, life expectancy, and quality of life for People Living With AIDS/HIV (PLWHs). These improvements have affected the need for specific HIV-related services. -Service categories that have emerged as relatively more important are substance -abuse treatment, assistance with re-entry to the work force, and housing. Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-18 Beginning July 1, 2002, human immunodeficiency virus (HIV) infection has joined the list of reportable diseases in California. HIV is reportable via a non -name code. Similar to AIDS reporting, health care providers and laboratories are required to report individuals with HIV infection to the health department within seven calendar days. At the end of December 2003, in the first eighteen months of HIV reporting, 1,327 cases were reported in Orange County. Based on the County of Orange, Health Care Agency's HIV/AIDS Surveillance Statistics, presented in 2003: The first resident case of AIDS in Orange County was reported to the Centers for Disease Control (CDC) in 1981. It has been estimated that approximately 8,059 people with HIV/AIDS are currently living in Orange County as of December 2003, of which 6,830 are estimated to be diagnosed cases of HIV/AIDS; the remaining 1,230 individuals are assumed to be unaware of their HIV status. According to the latest available data (as of December 2001), Orange County has reported more AIDS cases than 25 U.S. states and ranks 28th in number of AIDS cases reported among the 101 metropolitan areas (recognized by the CDC) with 500,000 or more population. Orange County ranks fifth among 58 California counties in cumulative AIDS cases reported from 1981 through 2002. � With the advancement of available therapies, AIDS death rates have declined from 4.2 per 100,000 in 1997 to 1.8 per 100,000 in 2002, a 57 percent decrease in the death rate. Between 2002 and 2003 the number of PLWA increased by 7 percent, while the number of new cases diagnosed decreased by 20 percent and the number of deaths decreased by 35 percent. Since the first case was diagnosed in 1981, the cumulative fatality rate in Orange County has been 52 percent. Information from the HIV/AIDS Reporting System for April 2005, reveals the following information about instances of HIV/AIDS in the City of Tustin: Reported HIV Cases, City of Tustin and Orange County, 1981- 2004 City of Tustin Orange Count ti i^I R Gt3/ ifir>� 53,s: "."7!E". " �. G� a „. •.':(: ! i'i i , 1 M Y. -P White 28 48% 911 54% African American/Black <5 NC 89 5% Hispanic 21 36% 631 37% Asian/Pacific Islander <5 NC 67 4% Other/unknown <5 NC 0 0% tiu i " 'w 9 e . ..-'ti �:_ 3,. 4 ^~ . r W%x},t u\1 a'§Y c zYs1t Bfn�iF,�ifG'{ Tustin 20052010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-19 Reported HIV Cases, City of Tustin and Oran a Countf, 1981- 2004 Male 42 72% 1,453 86% Female 14 24% 245 14% yy p } i Exmaa— Men having Sex with Men MSM 4kx,p S�'vv: 29 ,� 6 .. MSz' 50% r' i$ 1,168 `, . „<F'. Iw I a C., 68.8% Injection Drug Use IDU 6 10% 161 9.5% MSM + IDU <5 NC 60 3.5% Heterosexual contact 10 17% 169 10.0% Hemophilia or coagulation disorder 0 0% 7 0.4% Transfusion recipient <5 NC 9 0.5% Ped/Maternal exposure <5 NC 9 0.5% Other/unknown 7 12%i 115 6.8% i3 ✓ °. C,y {6`e iFtS'k+'Y $w Yy "`"Yt',f 4� *'9A">a,?^'...r�:3^�.17.".�i�eSz3h' Air aws. .) •`u yBici' :I 9i is 'rt q; �4a '9di A2,WIN, lA sAv`" '�iF' ;��a%•" esi st C <13 <5 NC 7 0% 13-19 <5 NC 36 2% 20-29 13 22% 521 31% 30-39 26 45% 699 41% 40-49 8 14% 321 19% 50-59 <5 NC 94 6% 60+ 0 0% 17 1% Unknown <5 NC <5 NC k.,.a;A� "VIN NC= % for events less than 5 cases are not calculated g i x r, L40, +n ,- �rS9rvp #� Data Source: HIV/AIDS Reporting System, April 2005 Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-20 PART B: LEAD BASED PAINT HAZARDS Although accurate information is not available and no formal assessment has been prepared, Tustin is required to estimate the number of housing units within the City that are occupied by low-income or moderate income households that may.have Lead Based Paint (LBP) hazards. However, without an actual survey of units in the City, the numbers of units with actual hazards (physical, chemical, etc.) is difficult to determine. Instead the following discussion and Table 1-1 provides an estimate of the number of units that may possibly contain LBP based on percentages typically found within the housing stock. In deriving this estimate, a review of housing unit age data from the 2000 Census were utilized. Because it is assumed that lower income households often occupy older, lower cost housing units, and residents occupying older housing units experience the highest incidence of lead based poisoning, these findings are significant. Despite the use of the above methodology, the City believes that it is highly unlikely that the estimated total of 2,024 units, or 10 percent of the total housing inventory, contain LBP hazards. The properties most at risk are those with deteriorated units, particularly those with leaky roofs and plumbing. The Census also revealed that rental properties in Tustin built between the years of 1940-1959 have the largest percentage (55 percent) of lower income households occupying them. This may give indication to the greatest area of need for assessment (approximately 154 units). According to the Orange County Public Health - Epidemiology Division, the City of Tustin had six persons who reported incidents of lead poisoning between 1990 and 2000. Between 2000 and 2004 the City of Tustin had four cases of children under the age of 16 who met the case definition of requiring a home visit and environmental investigation for the presence of elevated lead levels. This information is summarized in Table 1-J below: Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-21 Table 1-1 Estimation of Housing Units with LBP City of Tustin Year Number Estimated Number of Built of Units % With LBP Units With LBP Pre -1940 41 80% 33 1940-1959 173 70% 121 1960-1979 3,597 52% 1,870 Totals 3,811 2,024 Source: 2000 U.S. Census Despite the use of the above methodology, the City believes that it is highly unlikely that the estimated total of 2,024 units, or 10 percent of the total housing inventory, contain LBP hazards. The properties most at risk are those with deteriorated units, particularly those with leaky roofs and plumbing. The Census also revealed that rental properties in Tustin built between the years of 1940-1959 have the largest percentage (55 percent) of lower income households occupying them. This may give indication to the greatest area of need for assessment (approximately 154 units). According to the Orange County Public Health - Epidemiology Division, the City of Tustin had six persons who reported incidents of lead poisoning between 1990 and 2000. Between 2000 and 2004 the City of Tustin had four cases of children under the age of 16 who met the case definition of requiring a home visit and environmental investigation for the presence of elevated lead levels. This information is summarized in Table 1-J below: Tustin 2005-2010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-21 Table I -J City of Tustin Elevated Blood Lead Levels Year # Children less than 16 # Children less than 16 y.o. w/ BLL greater than y.o. meeting case 10 mcg/dL* (includes definition** children who are cases 2000 4 0 2001 4 1 2002 5 1 2003 8 1 2004 4 1 5 -year total 25 4 BLL = blood lead level CDC = Centers for Disease Control and Prevention mcg/dL = micrograms per deciliter *The CDC has determined the "level of concern" or "elevated" BLL to be 10 mcg/dL or greater. **A "case" is defined as a child who has had one BLL of 20 mcg/dL or greater or two BLLs between 15 mcg/dL — 19 mcg/dL drawn at least 30 days apart. Data was obtained from the Childhood Lead Poisoning Prevention Program Response And Surveillance System for Childhood Lead Exposure RASSCLE Database. Tustin 20052010 Consolidated Plan Section I - Housing and Homeless Needs Assessment 1-22 This section is intended to provide a portrait of Tustin by describing the significant aspects of the housing market and inventory characteristics and factors affecting the availability of affordable housing. Supporting the development of this section, the U.S. Department of Housing and Urban Development (HUD) has provided Tustin with printed reports containing 2000 Census data to estimate the demand and supply of housing for lower income groups. Much of this data has been compared with year 1990 Census data to provide historical perspective. Additionally, much of the narrative in this section has been taken exclusively from both the City's 2002 Housing Element and Technical Memorandum, approved by the State Department of Housing and Community Development (HCD), and the City's Comprehensive Housing Affordability Strategy (CHAS). Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-1 PART A: MARKET AND INVENTORY CHARACTERISTICS 1. Community Description a. Background and Trends — To create a context for the formulation of Tustin's Consolidated Plan, the following discussion describes the important historical, social, and economic factors and trends affecting housing affordability in the City of Tustin. The City of Tustin is located in central Orange County, at the junction of State Route 55 and Interstate 5. Tustin is bordered by Santa Ana to the west, Irvine to the east and south, and unincorporated Orange County areas to the north. The Tustin Ranch planned community and the conversion of the former Marine Corps Air Base at Tustin provide the major new growth areas for the City of Tustin. These two areas are also largely responsible for the changes and shifts in age and ethnic distribution that have occurred from 1990-2000. The City provides a mix of housing types and supporting commercial land uses and employment. The first residents of modem day Tustin were local Indians, with much of the Indian culture is only today being pieced together from archeological studies in the area. However, it is known that there had been an Indian village or gathering place around Red Hill. The availability of a dependable water supply, some of it from natural artesian wells that flowed from the ground attracted Indians and then the early settlers. Columbus Tustin, a Northern California carriage maker, and his partner Nelson Stafford, purchased 1,300 acres of what had been the Rancho Santiago de Santa Ana for the price of one dollar and fifty cents per acre. Mr. Tustin attempted to create "Tustin City," but sales of home sites were slow, and in the early 1870s he ended up giving free lots to anyone who would build a home. By the 1880s, Tustin had grown into an agricultural center with three churches, a fifty -room hotel, a bank, and a horse drawn "tallyho" (trolley line) which connected Tustin to Santa Ana. By the turn of the century, groves of apricots and walnuts were gradually being replaced by the more profitable Valencia oranges. The City of Tustin incorporated in 1927 as a small agricultural community of approximately 200 acres and 900 residents, making Tustin the third oldest city in Orange County. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-2 Development in the community was slow at first due, in part, to the Great Depression of the 1930s. During World War II, three military bases were established in nearby bean fields and unincorporated areas in proximity to Tustin: the Santa Ana Army Air Base, the EI Toro Marine Corps Air Station, and the navy's Lighter -Than -Air Base (where the huge hangers housed coast -patrolling blimps). Soon after World War II, urban development began to slowly increase in Tustin as it did throughout Southern California. In 1951, this base was changed from a naval base to a marine facility supporting helicopter operations and renamed Marine Corps Air Station (MCAS), Tustin. The MCAS -Tustin later was determined to be a surplus to the needs of the Marine Corps and was identified for closure in 1991. The MCAS -Tustin was fully closed in July 1999. In the 1950s, Tustin's growth began in earnest. Freeways, quality schools, and post-war industries attracted thousands of people. The orchards were developed by builders and by 1970 the population had jumped to 32,000. Growth was a painful process as houses replaced orange groves. Old timers and newcomers alike had to adapt to each other, cope with new problems and situations, and expand facilities to handle increased patronage. And so tract after tract replaced grove after grove. Annexation became the major issue during the period from 1955 to 1965. One of the early annexations to the city was the Tustin Union High School campus. Although the school was built in 1921, it remained outside the city limits until annexation in 1957. During the 1950s the City increased 220 percent in size with annexations. The big leap came in the 1960s when the population increased a whopping 1,012 percent, going from 2,006 to 22,313 population, and the land area increased from 434.23 acres to 2,214.77, or a 410 percent increase. Several large annexations greatly increased the city's area between 1971 and 1981. The Marine Corps Air Station was annexed to Tustin, adding 2,076 acres to the city. A few years later a total of 2,257 acres that had been in the Irvine Ranch agricultural preserve were annexed and are being developed as Tustin Ranch. By the 1960s, rising land values and falling grove production induced agricultural landowners to sell their land for urban development. As a result of new development and annexations, the City's population jumped from 2,000 in 1960 to 21,000 in 1970, and continued to grow at a steady pace to reach a year 2000 Census population of 67,504 and a population of 70,300, as determined by the Department of Finance, by the end of 2004. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-3 Social Trends: During the last decade, the City's population has been affected by many of the same trends that have been observed region -wide: a substantial increase in minority populations, especially persons of Hispanic ethnicity who in 2000, represent 34.24 percent of the households in the City of Tustin. This represents a significant increase from 1990 when persons of Hispanic origin represented 20.29 percent of the population compared to 8.74 percent in 1980. This increase has also created a concomitant increase in the average size of households and a surge in housing costs. Single-family detached housing comprises 27.7 percent of housing units in the City, while single-family attached housing accounts for 13.1 percent of housing units. Tustin has a substantially lower percentage of single-family housing than the County of Orange as a whole, at 41.4 percent compared to a countywide average of 67.5 percent. Economic Factors: Tustin is a home to the closed Marine Corps Air Station (MCAS), Tustin. The Defense Base Realignment and Closure Act (BRAC) of 1991 mandated the closure and realignment of military bases throughout the United States. The MCAS -Tustin as part of the 1991 BRAC was identified as a surplus to the needs of the Marine Corps. BRAC 1993 confirmed this closure with some modifications to the realignment recommendations. MCAS, Tustin closed in July, 1999. The City of Tustin and the United States Marine Corps prepared a joint Reuse/Specific Plan and supporting Environmental Impact Report (EIS/EIR). The environmental process for the reuse of MCAS Tustin was completed in the year 2000. Other Activities: In addition to the above mentioned historical, social and economic trends, there are several other events that will or have had an affect on the affordable housing programs in Tustin. The following provides a brief summary of those events. 1. In 1994 the City began administering its own Community Development Block Grant (CDBG) program funds. This has allowed Tustin to concentrate its programs and efforts where the most need exists. 2. In 1992, the Tustin Community Redevelopment Agency established a Housing Rehabilitation Program to assist property owners in making basic code -related improvements to their properties and other improvements which would upgrade targeted residential neighborhoods. The programs are made available to rental as well as owner -occupied properties in the form of grants and deferred loans. The primary benefits are to residents of Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -4 low and moderate income, a required criterion for program participation. Between Fiscal Year 1994-95 and Fiscal Year 1990-2000, a total of 132 households received assistance. The following describes the breakdown based on the income limits: "Very Low Income" - (0 to 50% of median income): 74 "Low Income" - (50% to 70% of median income): 44 "Median Income" - (70% to 100% of median income): 12 "Moderate Income" - (100% to 120% of median income): 2 Total Number of Households: 132 3. In 2002, the State of California Department of Housing and Community Development (HCD) approved the City's Housing Element and provided written verification that the Housing Element complies with all provisions of State Law. The City is currently in compliance with the all State mandated schedules for the Housing Element Update. 4. The City adopted the Density Bonus Ordinance in November, 1999, and amended this Ordinance in September, 2003. This ordinance would provide for at least a 25 percent density bonus and at least one "Concession" or "Incentive"; or provide other "Incentives of Equivalent Value" when a developer agrees to provide the following number of rental or for -sale "target units": (1) At least 20 percent of the total units affordable to Lower Income Households; or (2) At least 10 percent of the total units affordable to Very Low Income Households; or (3) 50 percent of the total units for Senior Citizen housing; or (4) At least 20 percent of the total units in a qualified Condominium Project. Please refer to Appendix H for a copy of Tustin's current Density Bonus Ordinance. With the latest enactment of SB 1818 which revised the density bonus law further, the City will amend the current Density Bonus Ordinance to comply with the new State Law. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -5 b. Demographics/Low Income and Racial/Ethnic Concentrations - The following discussion presents the essential demographic data describing the general population (including trends in population), household, and racial and ethnic characteristics of Tustin. A description is also included for areas within Tustin with concentrations of racial/ethnic minorities and/or low-income families. Additionally, a definition of the terms "area of racial/ethnic minority concentration" and "area of low-income concentration" as defined in the Consolidated Plan instructions is provided including the locations and degree of these concentrations in Tustin. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-6 2. Population Trends and Characteristics The purpose of this section is to illustrate current conditions in the City of Tustin in terms of its demographics and existing housing stock. Accordingly, the section entails discussions on Tustin's population and housing trends by looking at the most current data, at the time this document is prepared, and earlier data to make comparisons between time periods to reflect on the current state of the City and its future direction. Orange County experienced substantial growth between 1990 and 2000, with a population increase of 18 percent compared to statewide growth of 13 percent. By comparison, the City of Tustin grew at an even more dramatic rate of 33 percent during the decade, reflecting its status as fast growing city within the region. According to the 2000 U.S. Census, there was a population of 67,504 persons in the City of Tustin. These persons comprised 23,831 households. The population in Tustin grey at an annual compound rate of 2.7 percent between 1980 and 1990, increasing to 3.0 percent annually between 1990 and 2000. The number of households in Tustin grew more slowly at annual compound rates of 1.4 percent from 1980 to 1990, and 2.4 percent from 1990 to 2000. As a result, the average household size in the City increased from 2.42 persons per household in 1980 to 2.77 in 1990 and 2.92 in 20001; According to the 2000 Census, the most significant growth rate has occurred largely in the Hispanic ethnic category which parallels trends seen Countywide. Tustin's overall population make-up is 44.83 percent white, 34.24 percent Hispanic, 9 percent Asian/Pacific Islanders, 2.64 percent Black, and 18.29 percent Other (non -Hispanic). It is estimated that the City of Tustin's population reached 72,721 in 2005 (an increase of 1.5 percent annually from year 2000 census information). The number of households is projected to increase more rapidly at 2.9 percent annually, resulting in a decrease in the average household size to 2.70 persons per household in 2005. The 1999 average household size in the City of Tustin, at 2.92 persons per households, is slightly lower than that for the County of Orange as a whole (3.04 persons per household). The City of Tustin's population has been significantly impacted by military trends. The increase of 180 percent in the City's military population during the 1980s can be attributed mostly to the addition of new family housing units on northern and eastern portions of the base to support the MCAS, Tustin operations and provides affordable housing for personnel assigned to MCAS, EI Toro (7 miles to the south of Tustin). The MCAS, Tustin closed in July 1999, which caused relocation of military personnel out of the area therefore diminishing any need for additional Tustin 2005-2010 Consolidated Plan Section It - Housing Market Analysis 11-7 housing facilities to support this special population category. This again created a significant shift in military personnel and the realignment of various ethnic groups as these personnel moved from the City of Tustin. As part of the Reuse Plan for the Tustin MCAS, additional private housing reuse opportunities are being pursued which will have an impact on future housing availability. Table II -A summarizes the City's population changes from 1990-2000. Table II -A Population Growth 1990-2000 mnwm� bra• • . .:' .111 C: �; ;*. .�; OOurw U.J. l.2rsus tAlrWI Age distribution is an important factor in determining housing demands. Traditional assumptions are that the young adult population (19 to 34 years old) tends to favor, or can only afford, apartments, low to moderate cost condominiums, and smaller single-family units. The adult population (35 to 65 years old) seek moderate to high-end apartments, condominiums, and single- family homes. The primary assumption is that the 35 to 65 year old age group tends to have larger household sizes requiring larger living accommodations, while having the higher incomes that provides the means to acquire this housing. The senior population (65 years and older) tends to generate demand for low to moderate cost apartments, condominiums, group quarters, and manufactured homes. Some seniors may also live in older, larger houses that once housed the entire family. Based on the 2000 Census, nearly 64 percent of the City's population was age 25 and older, while 7 percent of the total population was of age 65 and older. The under 18 group represented 27 percent of the total. As shown in Table II -13, the City of Tustin experienced a substantial drop in the percentage of residents aged 18 to 24 years during the decade 1990-2000 of 17.5 percent. This is thought to be attributable to the closure of the former Tustin Marine Corps Air Station (MCAS) in the early 1990s, which provided a large percentage of persons within this demographic to the City's population. In contrast, the fastest growing age group in the City of Tustin was among 45 to 54 year olds who experienced a 69.8 percent increase in population between 1990 and 2000, Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-8 likely attributable to the initiation of new development in the Tustin Ranch area which features a master planned development of higher -end properties of mixed single and multi -family design. Other age groups demonstrating substantial growth rates from 1990 to 2000 were 5 to 17 year olds with a 58.7 percent increase and 55 to 64 year olds with a 47.7 percent increase. Table II -B Age Distribution 4 non_.2nnn Source: 1990 and 2000 Census The U.S. Census provides statistics regarding the race and ethnicity of a city's population. Table II -C highlights the ethnic distribution of the population for 1990 and 2000. As Table II -C illustrates, the number of minority residents in Tustin increased from approximately 27 percent in 1990 to approximately 39 percent in 2000. It should be noted that persons of Hispanic origin are included within all ethnic categories, and may be of any race. In 1990, 21 percent of the population was of Hispanic origin, and by 2000 this figure had increased to 34 percent. Asian and Pacific Islanders also showed substantial growth during the decade, demonstrating that Tustin is becoming a more ethnically diverse, heterogeneous City, reflecting the overall demographics of Orange County. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-9 Number 1990 Percent Number 2000 Percent Change 1990 to 2000 Number Percent Under 5 years 4.383 8.6% 5,815 8.6% 1,432 32.7° 5 to 17 years 7,755 15.3% 12,307 18.2% 4,552 58.7% 18 to 24 years i7.631 15.1% 6.294 9.3% -1.337 -17.5% 25 to 44 years 19,296 38.100 25.728 38.1% 6,432 33.3% 45 to 54 years 581 9.0% 7 780 11.5% 3,199 69.8% 55 to 64 years 234 - 6.400 776 7.1% 1,542 47.7° 65 to 74 years 209 4.4% 745 4.1% 536 24.3% 75 to 84 years ,172 2.3% 1,576 2.3% 404 34.5% .1 85 years and over 428 0.8% 483 0.7% 55 12.9% Total population 50,689 100% 67,504 100% 16,815 33.2% Under 18 years 12.138 23.9% 18,122 26.8% 5,984 49.3% 65 years and over 809 7.5% 804 7.1 % 995 26.1% Source: 1990 and 2000 Census The U.S. Census provides statistics regarding the race and ethnicity of a city's population. Table II -C highlights the ethnic distribution of the population for 1990 and 2000. As Table II -C illustrates, the number of minority residents in Tustin increased from approximately 27 percent in 1990 to approximately 39 percent in 2000. It should be noted that persons of Hispanic origin are included within all ethnic categories, and may be of any race. In 1990, 21 percent of the population was of Hispanic origin, and by 2000 this figure had increased to 34 percent. Asian and Pacific Islanders also showed substantial growth during the decade, demonstrating that Tustin is becoming a more ethnically diverse, heterogeneous City, reflecting the overall demographics of Orange County. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-9 Table II -C Racial and Ethnic Composition Source: 1990 and 2000 Census The geographic concentrations of Black and Hispanic residents in the city are illustrated in Maps 1 and 2, respectively. These maps show that there are no portions of the city where Blacks represent more than 25% of the population, although there are areas in the central and western parts of the city where Hispanics represent more than 75% of the population. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -10 1990-2000 Number 1990 Percent 2000 Number Percent Change 1990 to 2000 Number Percent Total Population one race 50,689 100.0% 64,431 100.0% 13,742 +27.1% White 37,127 - 73.2% 39,639 61.50/2,512 +6.80 Black or African American 2.895 5.7% 1,970 3.1% 925 -32.0% American Indian and Alask Native 274 0.5% 448 0.70/ 174 +63.5% Asian or Pacific Islander 5,260 10.4% 10 058 15.6% 4.798 +91.2% Other race 5,133 10.1% 203 0.3% 930 -96.0% Hispanic origin of any race 110,508 20.7% 23 110 34.2% 12 602 +119.9% Source: 1990 and 2000 Census The geographic concentrations of Black and Hispanic residents in the city are illustrated in Maps 1 and 2, respectively. These maps show that there are no portions of the city where Blacks represent more than 25% of the population, although there are areas in the central and western parts of the city where Hispanics represent more than 75% of the population. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -10 Map 1 Concentrations of Black Residents Within The City of Tustin Tustin 20052010 Consolidated Plan Section II - Housing Market Analysis II -11 Map? City of Tustin Black Concentration by Block Group ORANGE O UNINCORPORATED ORANGE COUNTY SANTA ANA IRVINE Map 2 Concentrations of Hispanic Residents Within The City of Tustin Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -13 Map 2 City of Tustin Hispanic Concentration by Block Group ORANGE SANTA ANA O UNINCORPORATED ORANGE COUNTY IRVINE Percentage of total persons of Hispanic origin <e 25% - 25-5g% - 51.75% - > 75% Note: Only potions of block groups failing wfthln Tustin city boundaries are displayed. Data represents partial block groups. 3. Employment Trends According to the Year 2000 Federal Census, the City of Tustin had 34,906 employed residents. The California State Department of Employment Development (EDD) estimates that the unemployment rate statewide during January 2005 was 6.2 percent, as compared with a rate of 4.0 percent within the Santa Ana —Anaheim -Irvine MSA, and a rate of approximately 3.8 percent within the City of Tustin. As shown in Table II -D, the 2000 Census indicated that the largest proportion of jobs in the City of Tustin were in the wholesale and retail trade (21 percent), manufacturing sector (18 percent), followed by education, health and social services (15 percent) and the professional/ scientific/ management sector (15 percent). TABLE II -D JOBS HELD BY TUSTIN RESIDENTS BY SECTOR 2000 Job Sector Number Percent Agriculture, forestry, mining: 30 0% Construction 1,862 5% Manufacturing 5,980 17% Wholesale trade 1,740 5% Retail trade 3,737 11% Trans ortation,warehousin , utilities: 1,090 3% information 917 3% Finance, insurance, real estate 3,502 10% Professional, scientific, management 5,253 15% Educational, health and social services: 5,081 15% Arts, entertainment, recreation 2,895 8% Other services (except public admin 1,890 5% Public administration 929 3% Total Employed Persons (16 years+) 34,906 100% Source: 2000 U.S. Census, SF3 Table P49 Tustin 2005-2010 Consolidated Plan Section it - Housing Market Analysis II -15 Household Characteristics Before current housing issues can be understood and future needs anticipated, housing occupancy characteristics need to be identified within the City. Table 11- E illustrates a profile of household composition. By definition, a "household" consists of all the people occupying a dwelling unit, whether or not they are related. A single person living in an apartment is classified as a household, as are two persons sharing a dwelling as "roommates." Similarly, a couple with two children living in the same dwelling unit is also considered a household. Table 11-E shows the household types for the City of Tustin according to the 2000 Census. This data illustrates that family households comprised approximately 72 percent of owner households and approximately 63 percent of renter households. The data indicates that married couple households represent 60 percent of the owner households and 41 percent of rental households. Approximately 37 percent of all rental households are non -familial. This compares with 28 percent of all owner occupied housing. _ It is interesting to note that single female householders (16.8 percent), exceed male householders (11.3 percent) among owner -occupied households, while single female and male householders are relatively balanced among renters, comprising 17.3 percent and 19.8 percent of non -familial rental households, respectively. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -16 HOUSEHOLD TYPE Table II -E Household Type by Tenure I Households I Percent lHouseholdsl Percent Family households: 8,504 71.9% 7,551 62.9% Married -couple family. 7,092 60.0% 4,869 40.6% Householder 15 to 34 years 1,216 10.3% 2,205 18.4% Householder 35 to 64 years 4,898 41.4% 2,475 20.6% Householder 65 years and over 978 8.3% 189 1.6% Other family: 1,412 11.9% 2,68 22.3% Male householder, no wife resent: 366 3.1% 806 6.7% Householder 15 to 34 years 112 0.9% 412 3.4% Householder 35 to 64 years 218 1.8% 378 3.1 Householder 65 years and over 36 0.3% 16 0.1% Female householder, no husband resent: 1,046 8.8% 1,876 15.6% Householder 15 to 34 years 125 1.1% 641 5.3% Householder 35 to 64 years 724 6.1% 1,147 9.6% Householder 65 years and over 197 1.70% 88 Nonfamily households: 3,325 28.1% _4,451 37.1 Male householder., 1,333 11.3% 2,371 19.8% Uving alone: 958 8.1% 1,611 13.4% Householder 15 to 34 years 188 1.6% 559 4.7% Householder 35 to 84 years 599 5.1% 943 7.9% Householder 65 years and over 171 1.4% 109 0.9% Not living alone: 375 3.2% 760 6.3% Householder 15 to 34 years 123 1.0% 525 4.4% Householder 35 to 64 years 229 1.9% 226 1.9% Householder 65 years and over 23 0.2% 9 0.1% Female householder: 1,992 16.8% 2,080 17.3% Living alone: 1,691 14.3% 1,474 12.3% Householder 15 to 34 years 143 1.2% 400 3.3% Householder 35 to 64 years 903 7.6% 750 6.2% Householder 65 years and over 6451 5.5% 324 2.7% Not living alone: 3011 2.5% 606 5.0% Householder 15 to 34 years 93 0.8% 415 3.5% Householder 35 to 64 years 172 1.5% 179 1.5% Householder 65 years and over 36 0.3% 12 0.1% Total Households 11,829 100.0% 12,002 100.0% Avera a Household Size 2.70 2.93 Source: 2000 Census, Tables H12 8 H17 According to the 1990 Census, the City of Tustin had a total of 18,338 households. By the 2000 Census, the number of households within the City of Tustin increased to 23,831. Tustin 2005-2010 Consolidated Plan section II - Housing Market Analysis II -17 The 2005 Median Family Income (MFI) for Tustin (as part of the Orange County PMSA) was $75,700. Median income is the middle of the ranges of income distribution and the Census further defines median income for households and families based on the distribution of the total number of units including those with no income. Based upon year 2000 Census calculations, approximately 4,734 households or slightly over 14 percent, earned less than or equal to the Orange County area MR. This reflects about 75 percent of renters and 25 percent of homeowners who earned less than area MR. HUD regulations for developing a Consolidated Plan require each jurisdiction to define and identify in the community "areas of racial/ethnic minority concentration" and "areas of low-income concentration." The City of Tustin reviewed the 2000 Census information concerning race/ethnicity and incomes for all tracts in the City of Tustin (a breakdown of the City by census tract is contained in Appendix B) to assist in developing a local definition for both of these terms. The following definitions have been derived and are applicable only to the City of Tustin in an effort to meet housing needs of these two unique categories: 1. "Areas of raciaUethnic minority concentration" are defined as those Census tracts where a minority population; that being a race or ethnic group with a minority representation City-wide, has a percentage equal to or greater than the percentage representation City-wide. The areas of Tustin that meet the above definition are found to be located in 1990 Census tracts 525.01, 744.04, 754.03, 755.05, 755.07, 755.08, and 755.09, where the Hispanic population makes up 20 percent or more of the tract population. Census tracts 525.02, 525.95, 755.08, 755.09, and 757.02 have Asian/Pacific Islander concentrations where the minority represents 10 percent or more of the population. The Black minority is concentrated in Census tracts 525.01, 744.04 and 755.09. The maps on the following three pages show these areas. 2. "Areas of low-income concentration" are defined as those Census blocks/tracts where the concentration of low- and moderate -income persons is at least 51 percent. However, certain communities are allowed to use the "exception criteria" and to undertake area benefit activities in any residential areas where the proportion of low and moderate -income persons falls within the upper quartile of all areas within the community's jurisdiction. In February 1999, HUD notified the City of Tustin that the Quality and Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -18 Work Responsibility Act of 1998 provided the City with new exception. With this exception, City is permitted to compute 80 percent of area median income for CDBG and HOME using the actual median income for its MSA's. In February 2005, HUD transmitted area benefit data in which it identifies block groups that qualified as low- and moderate -income areas as a result of using the higher income limit (uncapped limits). The City of Tustin started using the new income limit and the new area benefits for all of its CDBG activities during Fiscal Year 2000-2001. The areas of Tustin that meet the above definition are found to be located in Census block groups 0525019, 0525022, 0744041, 0744042, 0744043, 0744045, 0755052, 0755053, 0755054, 0755073, 0755081, 0755083, 0755091, 0755093, and 0757023. Map 3, Map 4, and Map 5 show these areas. Hotic_Qhold Income and Amar_ of Lew Incomes Concentration Household income distributions for the varied racial and ethnic groups within the City of Tustin are shown in Table 5.1. The table shows that the groups with the highest median income are Native Hawaiian, Asians and Non -Hispanic Whites, while median incomes of Blacks, American Indians and Hispanics are significantly lower. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis II -19 TABLE 5.1 I Household Income Distribution bu R"ce and Ethnic/iv White Black Amer. Indian Asian Hawaiian/Pac Isl. His anic White (not Hisoanic\ % % % % % % % Total: 16221 100.00~ 798 100.0% 192 100.00~ 2881 100.0°0 51 100.0° 5313 100.0° 14089 100.0% Less than $10 000 623 3.8°0 17 2.1% 0 0.00~ 141 4.9% 0 0.0" 226 4.3% 543 3.9% $10000 to $14 999 591 3.6% 19 2.4% 8 4.2% 84 2.2% 0 0.0% 207 3.9~ 486 3.4% $15000 to $19 999 435 2.70 27 3.4% 8 4.2% 116 4.0° 0 0.0% 195 3.7% 396 2.8% $20000 to $24 999 889 5.5°0 48 6.0% 0 O.O~ 99 3.4% 0 0.0% 395 7.4% 709 5.0% ~25 000 to !l29 999 684 4.2% 66 8.3% 15 7.8% 119 4.1% 0 0.0% 306 5.80 554 3.9% $30000 to $34 999 834 5.1~ 79 9.9% 6 3.1% 99 3.4% 13.7% 466 8.8% 712 5.1% $35 000 to $39 999 958 5.9% 92 11.5% 31 16.1% 139 4.8% 0 0.0% 443 8.3% 817 5.8% ~40 000 to $44999 751 4.6% 57 7.1% 13 6.8% 131 4.5% 7 13.7% 399 7.5% 578 4.1% 'U5 000 to 'U9 999 832 5.1% 28 3.5% 14 7.3% 155 5.4% 8 15.7% 536 10.1% 636 4.5% $50000 to $59 999 1388 8.6% 73 9.100 12 6.3% 3n6 10.6% 0 0.0" 617 11.6% 1171 8.3% $60000 to $74 999 2045 12.6% 110 13.8% 10 5.2°" 272 9.4% 0 0.0% 647 12.2% 1734 12.3% ~75 ono to $99 999 2303 14.2% 100 12.5% 38 19.8% 461 16.0% 21 41.2% 418 7.9% 2132 15.1% ~100 000 to !l124 999 1498 9.2% 28 3.5% 0 0.0% 259 !I.O% 8 15.7% 181 3.4% 1371 97% ~125 000 to !l149 999 870 5.4% 25 3.1% 21 10.90" 256 8.9% 0 0.00 138 2.6~ 792 5.6% $150000 to $199 999 751 4.6% 21 2.8% 0 0.0% 133 4.6% ( 0.0% 80 1.5% 702 5.0% ~200 000 or more 769 4.7% 8 1.0% 16 8.3% 131 4.5% 0 0.0% 59 1.1% 756 5.4% Median household inc. 60 498 44 348 50313 63 073 76317 45149 62127 Source: 2000 Census SF3 I Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-20 As demonstrated graphically in Maps 3, 4 and 5 areas of low-income concentration in Tustin are summarized by Census block group. Generally, the west-central portions of the city have lower incomes while the newer areas of Tustin Ranch are more affluent. Map 3 shows that there are block groups in the west-central portion of the city where Low-Income households represent more than half of all households, and some areas where more than 75 percent of households are Low-Income. Very-low-income persons comprise more than half of all households in the far western section of the City of Tustin (Map 4). As seen in Map 5, some block groups in the west-central area also have more than 25 percent extremely-low-income households. 11-21 Section II - Housing Market Analysis Tustin 2005-2010 Consolidated Plan Map3 Low-Income Concentrations City of Tustin Tustin 2005-2010 Consolidated Plan Section II . Housing Market Analysis 11.22 Map 3 City of Tustin Low-Income Concentrations by Block Group IRVINE t Percentage of total persons with Incomes 61 . 80% of median income or below _<=25% _26-50% - 51- 75% _>75% Nota: Only portions or block groups falling within Tustin city boundartas are displayed. Data represents partlol blDCk groups. -.....-.- ....-..---- -""'-""-'-.- "-"-"'- , 0,' MIO. Map4 Very Low-Income Concentrations Within the City of Tustin Tustin 2005-2010 Consolidated Plan 11-24 Section II - Housing Market Analysis Map 4 City of Tustin Very Low-Income Concentrations by Block Group IRVINE t Percentage of total persons with Incomes 31 - 50% of median Income or below _<=25% _26-50% - 51- 75% . os M"" Note: only portions Df t;ock groups railing within Tustin city boundaries are displayed. Data represen1s partial block groups. """"""'_U- ""-"--,-- -""""-"'-'-- ..-..-- Map5 Extremely Low-Income Concentrations Within the City of Tustin Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11-26 MapS City of Tustin Extremely Low-Income Concentrations by Block Group IRVINE t Percentage of total persons with Incomes <= 30% of median Income or below _<=25% _26-50% Noto: Only portions 01 block groups falling within Tustin city boundados B'" dbplayed. Data raprosonts partIal block groups. -....-.- _h_"___'" ...."""-"'_._,.. ~_..--.....- , D,S M'" 4. Housing Inventory and Market Conditions This section describes the significant general market and inventory conditions in the City of Tustin. The discussion provides information on Tustin's general housing market in terms of supply, demand, condition, and cost of housing. The housing inventory is described by tenure, vacancies, cost and size, and suitability for persons with special needs. Housing impediments as well as opportunities for housing production, ownership, alleviation of overcrowding, and meeting the needs of large families is also highlighted throughout the discussion. Analysis of past trends in the housing stock also provides a method of projecting the future housing needs of Tustin. Hnmdng Stn...k PrnfilA According to the 1990 Census, there were a total of 19,380 housing units in the City of Tustin which increased to 25,486 according to the 2000 Census. Table II-F summarizes the change in the composition of the housing stock between 1990 to 2000. The table indicates that the total number of housing units in the City increased by 6,186 units between 1990 and 2000 to 25,406 total housing units in the year 2000. Table II-F Composition of Housing Stock By Unit Type 1990 - 2000 TvDe 1990 Percent 2000 Percent SF detached 5,322 27.6% 8,070 31.7% SF attached 2,505 13.0% 3,457 13.6% MF (2-4 units) 3,013 15.6% 3,834 15.0% MF (5+ units) 7,633 39.5% 9,218 36.2% Mobile Homes 710 3.7% 889 3.5% Other 117 0.6% 18 0.1% Total 19,300 100.0% 25,486 100.0% Tustin Source: US Census Bureau In 2000, single-family detached and attached housing comprised 45.3 percent of housing units in Tustin, while multi-family housing accounted for approximately 54.7 percent of housing units. Multi-family housing typically provides the largest source of both rental and affordable homeownership opportunities in a community. Residential properties with two to four units comprised 15.0 percent of housing units in Tustin, while multi-family developments with five or more units comprised Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-28 36.2 percent of the housing supply. Mobile homes accounted for 3.5 percent of housing units within the City of Tustin. In terms of actual dwelling units in the City, however, the data indicates that the stock of single-family units within the City of Tustin increased most between 1990 and 2000. Ialwœ Tenure data (actual occupancy) by housing type in 2000 is provided in Table !loG. In 2000, 66.3 percent of occupied units were owner occupied, and 33.7 percent were renter occupied. Owner-OccuD/ed Units Renter-OccuD/ed Units Tvpe Number Percent 1 Number Percent 1 Total 1, detached 7180 44.8% 754 4.7% 7,934 1, attached 2543 15.9% 815 5.1% 3,358 2 80 0.5% 368 2.3% 448 30r4 516 3.2% 2140 13.3% 2,656 5 to 9 311 1.9% 1,333 8.3% 1,644 10t019 291 1.8% 1,092 6.8% 1383 20 to 49 45 0.3% 1130 7.0% 1,175 50 or more 130 0.8% 4,233 26.4% 4363 Mobile home 731 4.6% 128 0.8% 859 Boat, RV, van, etc 18 0.1% 0 0.0% 18 Total 10,630 66.3% 5,410 33.7% 16,040 TABLE I.G Occupied Housing Units by Tenure 2000 1 Represents proportion Dftotal Dcoupled housing units. SOUIO9: 2000 Census Vacancy RatAA The vacancy rate within a City is a measure of the general availability of housing. It also indicates how well the available units meet the current housing market demand. A low vacancy rate suggests that households may have difficulty finding housing within their price range, especially for those with lower income levels. A high vacancy rate, by contrast, may indicate either the existence of a high number of units undesirable for occupancy, or an oversupply of housing units. The availability of vacant housing units usually provides households with choices on different unit types to accommodate changing needs (for example, single Tustin 2005-2010 Consolidated Plan 11-29 Section II - Housing Market Analysis persons, newly married couples and elderly households typically need smaller units than households with school age children). A low vacancy rate may serve to increase market rents and housing costs, as shortages tend to result in higher prices and may limit the choices of households in finding adequate housing. It may also be related to overcrowding, as discussed in later sections. TABLE II.H Housing Vacancy by Tenure and Unit Size 2000 Figures from the 2000 Census show that 1,648 housing units were vacant, which correlates to 6.5 percent of the total housing stock. The data show that vacancy rates in Tustin are very low in all types of housing. Table II.H also indicates the largest proportion of the owner occupied housing is 3 or more bedrooms in size, and that the most common type of rental unit are studio or 1 bedroom, further. AgA nf Hnll!;ing Stnck Age is one measure of housing stock condition and a factor for determining the need for rehabilitation. Thus, units that are older are likely to be in need of major repairs, such as a new roof, plumbing, or updated electrical systems. As a general rule of thumb, houses 30 years or older are considered aged and are more likely to require major repairs. In addition, older houses may not be built to current housing standards for fire, earthquake safety, and energy efficiency. Furthermore, without proper maintenance, housing units deteriorate over time. Thus, in areas where households are cost burdened and maintenance is often deferred, this deterioration may be accelerated. Table 11.1 identifies the distribution of housing units by year built. According to the Census, the highest rate of construction occurred in Tustin during the 1970s. Construction during this decade accounted for 34.3 percent of the existing housing stock within the City. The prior decade of the 1960s was another active Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-30 period of housing construction in Tustin, accounting for an additional 23 percent of existing housing units. Approximately 9.6 percent of Tustin's housing units were built prior to 1959 and are at least 45 years old. Only 18.3 percent of the City's housing stock was developed from 1990 to March 2000. Year Built OWner Percent Renter Percent Built 1999 to March 2000 496 4.2 94 0.8 Built 1995 to 1998 1,930 16.3 754 6.3 Built 1990 to 1994 1.891 16 1349 11.2 Built 1980 to 1989 1017 8.6 1775 14.8 Built 1970 to 1979 2,123 17.9 4.115 34.3 Built 1960 to 1969 3,578 30.2 2755 23 Built 1950 to 1959 519 4.4 766 6.4 Built 1940 to 1949 73 0.6 152 1.3 Built 1939 or earlier 218 1.8 233 1.9 Totals 11,845 100 11,993 100 Median 1977 NA 1975 NA TABLE II-I Age of Housing Stock Sou"", 2000 Census Over 41 percent of the city's housing units were built prior to 1970. Consequently, a large proportion of units are over 30 years of age. This indicates that a large proportion of the City's housing units are at the age where significant maintenance may be necessary, and programs designed to assist homeowners in the maintenance and rehabilitation of units will be essential. Hol/!!ing Condition!! Housing is considered substandard when physical conditions are detenmined to be below the minimum standards of living, as defined by Section 1001 of the Uniform Housing Code. A housing unit is considered substandard if any of the following conditions exist: ~ Inadequate sanitation ~ Structural hazards ~ Nuisances ~ Faulty weather protection ~ Fire hazards ~ Inadequate maintenance Tustin 2005-2010 Consolidated Plan 11-31 Section II - Housing Market Analysis ~ Overcrowding ~ Hazardous wiring, plumbing or mechanical equipment TABLE II",) Plumbing and Kitchen Facilities by Tenure - 2000 TUSTIN Owner % Renter % Total units 11845 100.0% 11 993 100.0% Complete plumbina facilities 11,819 99.8% 11,926 99.4% Lackina complete plumbina facilities 26 0.2% 67 0.6% Complete kitchen facilities 11 832 99.9% 11834 98.7% Lackina complete kitchen facilities 13 0.1% 159 1.3% 2000 Census SF3, Tables H48 & H51 Households living in substandard conditions are considered as being in need of housing assistance even if they are not actively seeking alternative housing arrangements. In addition to structural deficiency and standards, the lack of certain infrastructure and utilities often serves as an indicator of substandard conditions. According to the 2000 Census, there were 26 owner-occupied units (reflecting 0.2 percent of all housing units) and 67 rental units (or 0.6 percent of all housing units) which lacked complete plumbing facilities, and 13 owner- occupied units (or 0.1 percent of all housing units) and 159 rental units (1.3 percent of all housing units) lacking complete kitchen facilities in the City of TUstin, as shown in Table II..,). Lead RaGAd Paint According to the Orange County Public Health - Epidemiology Division, the City of Tustin had six persons who reported incidents of lead poisoning between 1990 and 2000. Between 2000 and 2004 the City of Tustin had four cases of children under the age of 16 who met the case definition of requiring a .home visit and environmental investigation for the presence of elevated lead levels. This information is summarized in Table II-K below: Section II - Housing Market Analysis Tustin 2005-2010 Consolidated Plan 11-32 Table II-K City ofTustin Elevated Blood Lead Levels Year # Children less than 16 # Children less than 16 y.o. wI BLL greater than y.o. meeting case 10 mcg/dL* (includes definition" children who are cases\ 2000 4 0 2001 4 1 2002 5 1 2003 8 1 2004 4 1 5-vear total 25 4 BLL = blood lead level CDC = Centers for Disease Control and Prevention mcgldL = micrograms per deciliter 'The CDC has determined the "level of concem" or "elevated" BLL to be 10 mcg/dL or greater. "A "case" is defined as a child who has had one BLL of 20 mcgldL or greater or two BLLs between 15 mcgldL - 19 mcgldL drawn at least 30 days apart. Data was obtained from the Childhood Lead Poisoning Prevention Program Response And Surveillance System for Childhood Lead Exposure (RASSCLE) Database. To address the potential threat of lead-based paint within homes in Tustin, the City will implement into its housing policies over the next five years the following: -$- Include lead-based paint hazard reduction as an eligible rehabilitation activity through the City's CDBG grant program. -$- Review existing regulations, housing and rehabilitation codes to assure lead- based paint hazard reduction is incorporated. -$- Require testing and hazard reduction in conjunction with rehabilitation. -$- Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. Tustin 2005-2010 Consolidated Pian Section II . Housing Market Analysis 11.33 5. Housing Costs and Rents This section discusses resale costs of existing housing, as well as the typical rental prices in the City. EYi~ting and NAW HomA PricA TrAnd~ The City of Tustin, as the rest of Southern California, experienced a drop in home prices in the early 1990s following the price peak occurring in 1989-1990. Since the recession of the early 1990s, housing market prices have continued to rise, with a 2004 median sales price for single-family homes in Tustin ranging between $500,000 and $822,000, and from $305,000 to $451,000 for condominiums (Table II-L). ArealZi Code Tustin 92780 92782 Orange County Total Source: DataQuick. 2005 305000 51 000 $379,000 Table II-M reflects the distribution of housing values reported in the 2000 Census. (Note: These statistics include mobile and manufactured housing, therefore the values are expected to be somewhat lower than the median values reported by DataQuick.) This table demonstrates that the majority of homes within the City of Tustin were valued between $200,000 and $400,000 in 2000. Tustin 2005-2010 Consolidated Plan 11-34 Section 11- Housing Market Analysis Less than 100,000 1,102 9.3% $100,000 to $124,999 759 6.4% $125,000 to $149,999 879 7..4% $150,000 to $174,999 593 5.0% $175,000 to $199,999 715 6.0% $200,000 to $249,999 1,832 15.5% $250,000 to $299,999 2,133 18.0% $300,000 to $399,999 2,051 17.3% $400 000 to $499,999 966 8.2% $500,000 to $749 999 619 5.2% $750 000 to $999,999 170 1.4% $1,000,000 or more 26 0.2% Total Units 11,845 100.0% Median Value $251,000 ~ource: ;¿uuu t;ensus ~-;j I aDle~ Table II-M Housing Values 2000 Banis. Table II-N lists market rents by unit size based on 2000 Census data. The table shows that in 2000 the majority of rentals were one- or two-bedroom units. Further analysis indicates that nearly half of all apartment units in Tustin rented for between $750 and $999. Rent Studio 1 Bedroom 2 Bedroom 3+ Bedroom Total % Total $0-$200 9 98 14 9 130 1.1% $200-299 18 57 30 14 119 1.0% $300-499 27 78 75 40 220 1.8% $500-749 486 782 203 63 1,534 12.8% $750-999 957 2,331 1,876 191 5,355 44.7% $1,000 + 248 1,002 2,180 995 4,425 36.9% No Cash Rent 13 26 99 72 210 1.8% Total 1,758 4,374 4,477 1,384 11,993 100.0% Table II-N Gross Rent by Unit Size 2000 Sou...: 2000 Census SF3 Table H6? Table 11-0 provides a list of affordable rental projects in Tustin. Each of these projects is deed-restricted to ensure that units will provide long-term affordability. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-35 TABLE 11-0 Affordable Housing Projects City of Tustin 2005 NAME ADDRESS ZIP TYPE OF UNITS # UNITS TOTAL ADDITIONAL AFFORD- #OF INFORMATION ABLE UNITS Chatham Village 16331 92780 Family 201 335 First Come, First McFadden 1 & 2 Bedroom Served Ave. Flanders Pointe 15520 Tustin 92780 Family 49 82 Villaae Heritage Place a 1101 92780 Seniors 62+ 52 54 Tustin Sycamore 43 - 1 Bedroom Ave. 11-2 Bedroom Rancho Maderas 13408 92782 1 Bedroom (Family) 10 266 3-5 Year Waiting Heritage 2 Bedroom (Family) 44 List Wav Tustin Gardens 275 E. Sixth 92780 Seniors 100 100 2-3 Year Waiting St 62+/Handicap List 100 - 1 Bedroom No Name 15582 92780 Family 2 12 Provided Williams St. 2 Bedroom Westchester 1602 Nissan 92680 16 - 1 Bedroom 149 150 3 Year Park Apts. Rd. (senior) Waiting List 94 - 2 Bedroom (family) 40 - 3 Bedroom (family) Arbor Walk 14552 92780 Family 10 63 Under (Olson Co.) Newport construction Ave. John Laing PA21 Family 78 276 Under Homes (Parcel 33) Construction John Laing PA21 Family 40 189 Under Homes (Parcel 34) Construction Lennar Homes PA21 Family 42 465 To be constructed (Parcel 35 and 36) Lennar Homes PA 4 & 5 Family and Seniors 241 1077 To be Constructed (Parcels 23 &24) Source: County of Orange, Housing & Community Development Department - Affordable Housing List Tustin 2005-2010 Consolidated Plan 11-36 Section 11- Housing Market Analysis Affordabilitv GaD Analysis The costs of home ownership and renting can be compared to a household's ability to pay for housing, based on the 2004 HUD median income of $75,700 for the Orange County area. Table II-P identifies maximum affordable rents and purchase prices by income category for both a family of four and a single person household, based on 30% of income expended. The maximum affordable housing costs is adjusted based on household size. Overpayment refers to renters and homeowners who must pay more than 30% of their gross incomes for shelter. A high cost of housing eventually causes fixed-income, elderly and lower income families to use a disproportionate percentage of their income for housing. This may cause a series of related financial problems that may result in a deterioration of housing stock, because costs associated with maintenance must be sacrificed for more immediate expenses, or inappropriate housing sizes and types to suit the needs of the household. TABLE II-P 2004 Maximum Rent and Purchase Price by Income Category Ci of Tustin Maximum Affordable Purchase Price 3 Verv Low «50%) $38,400 $946 $140,000 Low (51-80%) $61,450 $1514 $220000 Moderate (81-120%) $90,840 $2271 $310,000 Above Moderate $90,840+ $2,271+ $310,000+ (>120%) Median Income (family $75,700 of4) Sinale Person Household Verv Low «50%) $26,900 $663 $98,000 Low (51-80%) $43,000 $1,060 $156,000 Moderate (81-120%) $51,600 $1,590 $218,000 Above Moderate $51,60+ $1,590+ $218,000+ (>120%) Median (single $53,800 household) 1 Based on HUD Income limits, January 2005 2 Calculated as 30% of income divided by 12 months. 3 Assumes 10% down payment, a 6.5% interest rate and tax and homeowners insurance. Source: CHS . Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11-37 For housing purchases, the 30 percent threshold for afford ability include.s payment on principal and interest, and an assumed 1.25 percent allocation for taxes and homeowner insurance. In actuality, taxes and insurance may often exceed the assumed 1.25 and may include additional fees for homeowner association costs and other charges. A 10 percent down payment and a 6.5 percent interest rate is assumed, reflecting 2005 market conditions. Smaller households in the very low-income category face challenges in the rental market, and also have few rental options available to them apart from boarding or sharing rental expenses with roommates, which may result in overcrowded conditions. The data indicates that a family of four earning 50 percent of the area median family income ($38,400 annually) can afford to pay no more than $946 per month for rent in order to avoid overpayment. With regard to opportunities for home purchases within the City of Tustin, data indicate that housing purchase opportunities in the City are limited for low- and very-low-income households due to the relatively high price of housing within the City. Smaller households at the lower end of the income range will have a limited selection of units from which to choose. Barriers to Affordable Housina This section discusses obstacles to the production of affordable housing and potential actions by the City to overcome those obstacles. Barriers or impediments to affordable housing are caused when the incentive to develop this housing is removed due to excessive development costs or the lack of community commitment. Some development costs are motivated by economic conditions and other issues that affected the real estate market, and are outside the control of local government. In addition, the development of affordable housing is affected by both the economic market conditions and the housing policies of federal, state and local governments, and the "Not In My Back Yard" (NIMBY) phenomenon. Although federal and state environmental regulations are implemented at the local level, these policies have and seem to continue to add to the cost of development. Public policy and community issues that potentially affect the cost of all development projects include the following: -+ Land use development -+ Cost of labor and materials -+ Cost of land -+ Environmental problems (wastewater, floodplains, and capacity) Tustin 2005-2010 Consolidated Plan Section II - Housing Market Anaiysis 11-38 -$- Deed restrictions and covenants Zoning Ordinances Development standards include zoning ordinances, subdivision ordinances and building code requirements. The most far-reaching constraints are those contained in the City's zoning ordinance, which is the most traditional tool used by a local jurisdiction to regulate the use of private land. Zoning regulates the use, density, floor area, setbacks, parking, placement and mix of residential, commercial, and industrial projects. Zoning can also regulate the intensity of residential land use through minimum lot size requirements. The City, while encouraging housing, is also concerned about the living environment that is created based on standards such as: -$- Density -$- Height -$- Setbacks -$- Under grounding of utilities -$- Aesthetics -$- Parking Housing Development Fees Various fees and assessments are charged by the City and other outside agencies (e.g., school districts) to cover costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed based on the concept of cost recovery through a pro rata share system, based on the magnitude of the project's impact or the extent of the benefit which will be derived. Tustin is highly urbanized with most of its necessary infrastructure, such as streets, sewer and water facilities already in place. Nonetheless, site improvements can significantly add to the cost of producing housing. Cost-effective site planning or use of housing set-aside funds for those projects within the redevelopment project areas can minimize site improvement costs. Development Review Process The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit's selling price. State Law establishes maximum time limits for project approvals and City policies provide for the minimum processing time Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-39 necessary to comply with legal requirements and review procedures. Infrastructure Constraints Any development in the City is scrutinized for its impacts on the community in transportation, sewer, parks, recreation and pedestrian use. The cost of new or improved infrastructure is often shifted to the development, thus increasing the housing costs. Davis-Bacon Wage Compliance A prevailing wage must be paid to laborers when federal funds are used for any project over $2,000 or any multi-family project over eight units. The prevailing wage is usually higher than competitive wages. Davis-Bacon requires extensive paperwork that adds to housing costs to document the prevailing wages in order to comply with monitoring requirements. Floodplain Insurance When federal funds are used to rehabilitate homes or build new homes located in a floodplain zone, the developer or homeowner is required to obtain flood insurance. This requirement can be costly and impact low-income homeowners, especially where minor rehabilitation is involved. Tustin 2005-2010 Consolidated Plan 11-40 Section II - Housing Market Analysis 6. Existing Needs Overcrowding In response to higher housing prices, lower income households must often be select smaller, older, less adequate housing for the available money. Consequently, the need to find housing which they can afford may lead families into situations of overcrowding. Overcrowding places a strain on physicai facilities and does not provide a satisfying living environment. While some families with low incomes may opt for overcrowding to derive additional income, the cost of housing usually necessitates overcrowding for many lower-income residents. Both State and Federal Housing Law defines overcrowded housing units as those in which the ratio of persons-to-rooms exceeds 1.0. The rooms considered in this equation exclude bathrooms, kitchens, and hallways, but includes other rooms such as living and dining rooms. For example, a one- bedroom ap<!rtment with living room, kitchen, and bathroom would be considered overcrowded if it housed more than two persons. Overcrowding is often reflective of one of three conditions: ~ Either a family or household is living in too small a dwelling. ~ Familial household includes extended family members (i.e., grandparents or grown children and their families living with parents, termed doubling). ~ A family is renting living space to non-family members. Whatever the cause, overcrowding is symptomatic of greater affordability issues. Some examples of when lack of affordability promotes overcrowded conditions include: ~ Large households unable to afford larger dwellings that must then move into smaller than acceptable units. ~ Older children wishing to leave home who are prohibited from doing so because they cannot qualify for a home loan or are unable to make rental payments. ~ Grandparents or elders on fixed incomes who are unable to afford housing suitable for their physical handicaps, and must often move in with their grown.children and families. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11-41 6. Existing Needs OvArr.rnwding In response to higher housing prices, lower income households must often be select smaller, older, less adequate housing for the available money. Consequently, the need to find housing which they can afford may lead families into situations of overcrowding. Overcrowding places a strain on physical facilities and does not provide a satisfying living environment. While some families with low incomes may opt for overcrowding to derive additional income, the cost of housing usually necessitates overcrowding for many lower-income residents. Both State and Federal Housing Law defines overcrowded housing units as those in which the ratio of persons-to-rooms exceeds 1.0. The rooms considered in this equation exclude bathrooms, kitchens, and hallways, but includes other rooms such as living and dining rooms. For example, a one- bedroom aRartment with living room, kitchen, andJ>athroom would be considered overcrowded if it housed more than two persons. Overcrowding is often reflective of one of three conditions: > Either a family or household is living in too small a dwelling. > Familial household includes extended family members (Le., grandparents or grown children and their families living with parents, termed doubling). > A family is renting living space to non-family members. Whatever the cause, overcrowding is symptomatic of greater affordability issues. Some examples of when lack of affordability promotes overcrowded conditions include: > Large households unable to afford larger dwellings that must then move into smaller than acceptable units. > Older children wishing to leave home who are prohibited from doing so because they cannot qualify for a home loan or are unable to make rental payments. > Grandparents or elders on fixed incomes who are unable to afford housing suitable for their physical handicaps, and must often move in with their grown children and families. Tustin 2005-2010 Consolidated Plan 11-42 Section II - Housing Market Analysis According to the 2000 Census, a total of 821 owner occupied households (3.5 percent) and 3,569 renter occupied households (29.7 percent) were living in overcrowded conditions. It is especially noteworthy that 12 percent of renters live in severely overcrowded conditions with over 2 persons per room, which is twice the official threshold for overcrowding. Table II-Q describes overcrowding among Tustin residents in 2000. TABLE II-Q Households with Overcrowding 2000 HousenolOs '70 Total: 23,838 100.0% Owner occuoied: 11,845 49.7% 0.50 or less occuoants oar room 8,336 35.0% 0.51 to 1.00 occuoants oer room 2,688 11.3% 1.01 to 1.50 occuoants oer room 400 1.7% 1.51 to 2.00 occuoants oer room 286 1.2% 2.01 or more occupants per room 135 0.6% Renter occuoled: ~ 11,993 ~ 100.0% 0.50 or less occuoants oar room 4,449 37.1% 0.51 to 1.00 occupants per room 3,975 33.1% 1.01 to 1.50 occuoants oar room 1,094 9.1% 1.51 to 2.00 occuoants oar room 1,049 8.7% 2.01 or more occupants per room 1,426 11.9% 2000 Census. SF3. Table H2O OVAr:paymAnt Overpayment refers to renters ,and homeowners who must pay more than 30 percent of their gross incomes for shelter. An overly high cost for safe, decent housing within a City is detrimental to fixed-income, elderly, and lower income families who must use a disproportionate percentage of their income for housing (overpayment). State housing policy recognizes that cooperative participation of the private and public sectors is necessary to expand housing opportunities to all economic segments of the community. A primary State goal is the provision of decent housing and suitable living environment for Califomians of all economic levels. Consistent with HUD's "threshold of overpayment" definition, Califomia's housing administration has determined that, "Affordable housing costs with respect to very low, low and moderate income households shall not exceed 30 percent of gross household income." (Health and Safety Code, Section 50052.9). That is, when households must exceed 30 percent of their incomes for rent or mortgage payments, they are left with insufficient funds for other necessities, such as food, health care, clothing, and utilities. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-43 Overpayment for housing may cause a series of related financial problems, and may result in a deterioration of housing stock, because costs associated with housing upkeep and maintenance must be sacrificed for more immediate expenses (for example, food, clothing, medical care, and utilities). Overpayment also promotes overcrowding, which leads to a variety of problems, from accelerating the rate of housing wear and deterioration, to children's decreased performance in school, to code enforcement issues. HUD recognizes that upper-income households overpaying for their housing are generally more able to secure housing within their budgets, and are more capable of paying a larger proportion of their income for housing, unlike lower income households which are more significantly impacted by housing overpayment. The distinction between rental and owner housing overpayment is important because, while homeowners may choose to allocate a higher percentage of their disposable monthly income on housing costs, this allocation is justified in light of the beneficial investment qualities of ownership. . Newer or younger -households may overextend themselves financially to afford a home purchase, but the owner maintains the option of selling the home and may realize tax benefits or appreciation in value. Renters, on the other hand, are limited in the rental market, and are generally required to pay the rent established by that market. The discrepancy between renter and owner households is largely reflective of the tendency for rental households to have lower incomes than their owner counterparts. Table II-R contains 2000 Census figures demonstrating that 33 percent of all households in the City, and over 37 percent of all Tustin renters were overpaying for housing. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11-44 TABLE J-R nuu,,"l11[ rluultm'S vutDUt 1"01'" All MOUSenOlaS Name 01 Ju",diction: Sou"," or Data: Data CUlTOn! as of: CHAS Ooto Rnnk 2O0n Ronters """ers Small large Elderly Small Related large Related All Total Elderly Related Related All Total Total 1&2 (2to4) (5 or more) Other Renters 1&2 (2 to 4) (5 or more) Other Owners Households member Households member Households Household by Type, Income. & Housing hN'seholds hnusehnlds Problem 'A' BI 'C tn, IF> IF' {('., "" I J IU <="""""., 484 1'8 8" 7.' "'" .39 '5! 174 2"' 1.276 47" 2. u. nO" I - 'I 513 'n7 ^" 157 284 1(" 2 114 51 7""1 3. OJ.. with an" "-"sl- --bJom- 7A. 93.2 00.5 86.4 AI "' '" 1"' 91. 749 84.7 4. % Cost Burden >,n,,- 7". A5.4 A74 AA.4 A" ., 75 1"" 91.2 " ""7 5. " r~.t Bu"'en ><n" 67.1 83.8 70 78 70' " 7fi 50 87.7 "".8 72.2 6. >IN''e -0.1----- »"" tn <=M" "FI 165 870 517 333 '885 "<5 1<9 154 90 75> 26" . .. with on, housi~ nmhlom, 7A 91.4 90 9A 8 0'.7 ".7 74.8 93 77. 64.4 A<O 8. " Cost B"M.- >""" 78.8 AAO ., "".8 82 4'.7 17 77.' 778 "".6 76.' . ~,~. . n..Men ><n~, "".4 24.7 3. M.I 7"' ".9 M.' RA.C "1.1 43.' 3/11 10. Uro"""nl"I"COI1IO ><n to <=An" "FI 108 1205 ""9 804 2 7'" A'" 41 27< ", "78 4"" 11. "with I blem' 50 68 97. 68.9 7<. 'I R! '" 61.7 50. 69.! t OJ.. Cost """'en >'0'" 59.3 37.8 14 "7.2 A1.4 '1.1 6 59.1 61.7 5" 4' 13. "~n" ""rden >50" 0 2.1 3.1 10 "" 71.5 34 22.4 8.6 14. >A"" ".. 209 2634 6" 2150 <697 1"'< <non 1 03 1905 9185 14""7 15 n I ms 13 '3.9 78. 13.' 25.3 17 '" '2.4 28. 24 24.8 16 OL~. ,nurd-n >onOL 8 6. 73 08 74 17 2" 1 i< 2"3 20,8 15.A 17. >50'" 0 0 2 '.2 74 6 1 18. T""'I U_'.ohnO". 891 5'" 2107 372.1 11 941 2314 <61l' 14'" 2"" 11 A" 23.7811 19 '" with anv hou'i~ nroblems 53.5 52.1 0' 4 '" 20A 28,! 51 36.6 " 44' 20. % Cost Burden >'n 51.9 'U 3" '0.1 37.2 ?'" 25,' 7... 'A' 70 1 .. 21. % Cost B"rdnn >"" 3n,l 12.8 111 14.9 14 "' 7 13.1 14.9 In4 12.4 Tustin 2005-2010 Consolidated Plan 1-45 Section I - Housing and Homeless Needs Assessment Supply and Demand Supply According to the 1990 Census, the City of Tustin hap a total of 19,300 housing units, 95 percent of which were occupied. By 2000, the total number of housing units within the City increased to 25,406. Of these, 23,831 units or 94 percent were occupied. The City's housing stock is dominated by multiple-family units, which comprise 55 percent of the housing stock. While the number of single family detached units has increased, the housing stock is still dominated by multi-family attached units. Table II-S, below, provides a summary of the housing supply by type of unit. Table 11-5 Housing Inventory by Type of Unit City of Tustin 2000 No. of Units % of Stock Single-Family Detached Single-Family Attached 2-4 units 5 or more units Mobile Homes Other Total 8,070. 3,457 3,834 9,218 702 18 25,406 31.7% 13.6% 15.0% 36.2% 3.0% 0.1% 100% Source: 2000 Census Demand According to the City's Comprehensive Housing Affordability Strategy (CHAS) (2000- 2010), two indicators of demand for housing, or housing need, are directly related to overpayment and overcrowding. The City of Tustin is required by California State law to provide in its Housing Element, housing needs projections through the use of the SCAG Regional Housing Needs Assessment (RHNA) model. SCAG is asked by the State to determine the fair share of housing for each jurisdiction in the area. The intent of SCAG's allocation of future needs is to balance the region's housing for all incomes. The RHNA consists of two components: 1) Existing Need 2) FuturelConstruction Need. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-45 In the RHNA99 Existing Need assessment, SCAG provides estimates of the number of low- income households paying more than 30 percent of their income for shelter and having housing problems such as overcrowding, and substandard housing (lack of adequate kitchen, toilet, heat or plumbing facilities). The SCAG's model utilizes information obtained from the 1990 Census and current household totals to derive estimates of overpayment, overcrowding and housing with problems. The numbers are only projections and intended as planning aides to jurisdictions in programming, goal setting and allocation of resources. The Existing Need numbers are not intended as construction target, nor are city expected to solve existing need. The estimated number of cost-burdened households in Tustin is presented in Table II-T: Table II-T Low Income Households Overpaying for Housing City ofTustin % of Median Income Less Than 30% 31% to 50% 51% to 80% 81 % to 95% Greater than 95% Total Renters 1,291 1 ,458 1,698 630 444 5,519 Owners 307 392 352 342 1.659 3,051 Total 1,598 1,850 2,049 972 2.103 8,569 Source: Southern California Association of Governments; 1999 Regional Housing Needs Assessment (Existing Needs) HUD defines overcrowding as more than 1.0 person per room, excluding bathrooms and kitchens. Housing with occupancy of 1.01 to 1.50 persons per room is considered to be overcrowded, while housing with 1.51 persons per room or more is considered to be severely overcrowded, while 2.01 or more is extremely overcrowded. Based upon the 1990 Census, 16.2 percent of all renters, or approximately 1,757 households, lived in overcrowded conditions. As shown in Table II-U, for the 2000 Census, this proportion increased significantly. Based upon year 2000 Census data, 18.4 percent of all households, or 3,569 rental households within the City of Tustin were living in overcrowded conditions. For owners, the proportion of households living in overcrowded conditions was much smaller, at 3.5 percent of all households within the City. Overall, 18.4 percent of Tustin's households lived in overcrowded conditions, as defined by HUD. Furthermore, households considered to be extremely overcrowded (with 2.01 or more occupants per room) increased significantly, with 1,426 renter occupied households and 135 Tustin 2005"2010 Consolidated Plan Section 11- Housing Market Analysis 11-46 owner occupied households, or 6.6 percent of the total households in the City extremely overcrowded. Table II-U Overcrowded Households City of Tustin 1.01 to 1.50 1.51 + Total of All Households PersonslRoom PersonslRoom Overcrowded (1.01+ Persons/Room) Renter Households 1,094 4.6% 2,475 10.4% 3,569 15% Owner Households 400 1.7% 421 1.8% 821 3.5% Total Households 1,494 6.3% 2,896 12.2% 4,390 18.4% Source: 2000 U.S. Census According to SCAG, in 1999 there were 2,389 overcrowded households in Tustin, representing 11 percent of total households, as summarized in Table II-V below. Table II-V SCAG RHNA99 Overcrowded Households City of Tustin Income Level Less than 31% to 51% to 81% to Greater Than Total 30% 50% 80% 95% 95% Renters 308 471 366 297 618 2,060 Owners 0 29 46 38 217 330 Total 308 500 411 335 834 2,389 Source: 1999 Regional Housing Needs Assessment (Existing Needs) Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-47 Tenure According to 1990 Census data, 40.9 percent of the City's 18,332 occupied housing units were owner occupied and the rest were renter occupied. By the year 2000, Census figures indicate that of the 23,831 occupied housing units within the City of Tustin, 50.4 percent (12,011 units) were occupied by renters. This is slightly lower than the overall Los Angeles- Orange County MSA which is 51 percent owner occupied and 49 percent renter occupied. This is significant in part because renters tend to have lower incomes than owners and are more susceptible to housing cost increases, and may be more likely to reside in overcrowded conditions (more than one person per room). Table II-W shows the relative proportions of renter and owner households in 1990 and 2000 U.S Census data. Owners comprised 49.6 percent of all households in 2000, up from 40.9 percent in 1990. The proportion of renter households decreased from 59.1 percent to 50.4 percent over this time period. A significant factor contributing to the increase in homeownership was both a regional correction in housing prices which made them more affordable to a greater number of households and also lower percentage rate financing which also enhanced purchasing ability. Table II-W Renter and Owner- Occupied Housing Units City of Tustin 1990 and 2000 1990 Housinq Tenure Number Percent Owner Occupied 7,504 40.9% Renter Occupied 10.828 59.1% Total Occupied Units 18,332 100.0% 2000 Number Percent 11,829 49.6% 12.002 50.4% 23,831 100.0% Source: 1990 and 2000 Census, CHAS (2000-2010) Vacancy Rate According to 1990 Census data, the City's 1990 overall housing vacancy rate was 5 percent. Generally, a vacancy rate of less than 5 percent indicates a "tight" housing market. The for-sale vacancy rate was well below this at 1.5 percent in 1990. The rental vacancy rate, at 5.6 percent was slightly above the overall average. By 2000, the City of Tustin's vacancy rate increased to 6.5 percent, with for-sale vacancies of 181 units and 261 vacant rental units, and 1,206 units vacant for seasonal or other reasons, for a total of 1,648 vacant units. Table II-X shows estimated breakdown of vacant units by their status, including "vacant for rent", vacant for sale", "seasonal". Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-48 Table II-X Housing Vacancy City of Tustin 2000 Housinq Tenure Number Percent Vacant Units for Rent Vacant Units for Sale Vacant -Seasonal/Other Subtotal-Vacant Units 261 181 1.206 1,648 1.0% 0.7% 4.7% 6.5% Occupied Units 23,838 25,486 93.5% Total Housing Units 100.0% Source: 2000 Census, SF3 Tables H8 and 42 Condition Table II-Y compares the distribution of housing units in 1999 for the City of Tustin and the County of Orange by year built. The highest rate of housing construction occurred in Tustin during the 1960s, when the City gained almost one-third of its current housing units (32.1 percent). Tustin added another 25.2 percent of existing units during the 1970s, probably largely as a result of the annexation of existing units in previously unincorporated areas of the County. Of these units annexed during the 1970s, it is reasonable to assume that a large portion of the units were constructed prior to 1970. After a slower period of housing construction during the 1980s (13.9 percent of all units built), the 1990shave again seen increased housing developmept with 21.3 percent of Tustin's units built during this period, likely a result of the development of Tustin Ranch housing. By comparison, about one-quarter of the County's housing stock was built in the 1960s and another quarter was added during the 1970s. One-fifth of the County's units were built during the 1980s, decreasing to only 8.4 percent since 1990. Less than one tenth of Tustin's units were built prior to 1959 (7.6 percent) compared with 19.3 percent countywide. A total of 39.7 percent of Tustin's housing stock was built prior to 1969 and are at least 30 years old. This would indicate the potential need for rehabilitation and continued maintenance of 9,729 dwelling units. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11-49 Table II-Y Distribution of Housing Units by Year Built City of Tustin and Orange County City of Tustin Orange County Number Percent Number Percent Year Built (Age of Structure)' 1939 or earlier (65 years of more) 297 1.2% 23,103 2.4% 1940 to 1949 (55 to 64 years) 374 1.5% 23,378 2.7% 1950 to 1959 (45 to 54 years) 1,195 4.9% 135,204 14.2% 1960 to 1969 (35 to 44 years) 7,863 32.1% 235,403 24.7% 1970 to 1979 (25 to 34 years) 6,170 25.2% 263,932 27.6% 1980 to 1989 (15 to 24 years) 3,401 13.9% 192,086 20.1% 1990 or later (14 years or less) 5.231 21.3% 79.777 8.4% Total Housing Units 24,531 100.0% 954,882 100.0% Substandard/Substandard Suitable for Substantial Rehabilitation: As defined by the Califomia Civil Code, a "Substandard" dwelling unit is one that is substantially lacking of any of the following: -$- Roof -$- Walls -$- Windows that do not leak -$- Working plumbing or gas facilities -$- Water supply of hot and cold running water connected to a sewage disposal system -$- Heating system that works -$- Electrical lighting and wiring in working order; -$- Building and grounds kept clean, sanitary, free from garbage, rodents, and vermin -$- Adequate number of garbage cans or dumpster in good repair -$- Floors, stairways and railing in good repair -$- Other standards established by the state or local codes. A "Substandard Suitable for Substantial Rehabilitation" is defined by Community Redevelopment Law (CRL) as units where the rehabilitation value constitutes 25 percent of the after rehabilitation value of the units, inclusive of the land value. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 50 According to the City's Comprehensive Affordable Housing Strategy (2000-2010) Housing Needs Assessment, rehabilitation of the existing housing stock will be one of the City's biggest concerns over the next decade. A total of 39.7 percent of the City's housing stock was built prior to 1969 and is thus at least 36 years old. This indicates that 9,729 units are at the age when rehabilitation may be necessary, especially if maintenance has been deferred. Additionally, a totàl of 6,170 units will reach 30 years during the planning period which extends until the year 2010. Of these units, a large percentage was a result of annexation of existing units in previously unincorporated areas of the County. Therefore, more units maybe at the age of rehabilitation than the City anticipated. Of these the number of renter substandard units is probably greater than the number of owner substandard units. In 1990 the City implemented what is known as the Community Improvement Partnership Program (CIPP), which covers the southwest area of the City. The CIPP identified three target areas where improvement activities were focused. The CIPPinciuded activities such as: development of Community Assistance Task Force, proactive Code Enforcement program, Graffiti Abatement program, and public education on property maintenance. This program evolved into what is now commonly known as the City's Code Enforcement Southwest Strategy. The Code Enforcement Southwest strategy has the same goals and objectives as the CIPP and has been actively involve in the property maintenance of the southwest neighborhood. Housina Costs Table II-Z displays the estimated median sales price for housing based upon the year 2000 Census, median home value for owners is $251,000. Overall, the values of Tustin's owner units closely track those for the Còunty as a whole. Tustin had a good proportion of units (34 percent) valued in the affordable range under $199,999, reflecting the higher share of multifamily condominium units in the City. The largest proportion of Tustin's units are valued between $200,000 and $400,000 (50.8 percent), with 15 percent priced over $400,000. Tustin 2005-2010 Consolidated Pian Section II - Housing Market Analysis 11- 51 Table JI-Z Distribution of Owner-Occupied Housing Units by Value City of Tustin Price Number Percent Less than 100,000 1,102 9.3% $100,000 to $124,999 759 6.4% $125,000 to $149,999 879 7.4% $150,000 to $174,999 593 5.0% $175,000 to $199,999 715 6.0% $200,000 to $249,999 1,832 15.5% $250,000 to $299,999 2,133 18.0% $300,000 to $399,999 2,051 17.3% $400,000 to $499,999 966 8.2% $500,000 to $749,999 619 5.2% $750,000 to $999,999 170 1.4% $1,000,000 or more 26 0.2% Total Units 11,845 100.0% Median Value $251,000 ~ource: zuuu ~ensus Rental Housina The 1990 Census indicates that 50 percent of all rental units (including single-family homes and condominiums) in the City rent for more than $701 per month, and three- quarters rent for over $621 per month. By the 2000 Census, median gross rent increased to $895. Recent data regarding rental units compiled from the classified sections of the Orange County Edition of the Los Angeles Times and the Orange County Register reveals different rental costs. Of the listings found, almost all were for apartments. The majority of the units were one- and two-bedroom units, with most 3-bedroom units being single-family residences. Although Census data indicate lower rental rates, this non-scientific survey reflects higher rental prices with the average price for a one-bedroom being $975, for two- bedrooms the average was $1,350, and for a three-bedrooms it was $1,750+. Rental rates for apartments are generally lower than single-family homes, condominiums, and town homes. Typically, single-family units were for three- and four- bedrooms. The average rent for single family home is between $2,000 and $2,400. Based upon this information the average apartment rental rates are found to be on average with HUD's 2005 Fair Market Rents (FMR) as shown on Table II-AA. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11- 52 Table II-AA Fair Market Rent Schedules Orange County, MSA FY 2005 Unit Type Fair Market Rent 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom $ 979 $ 1,098 $ 1,317 $ 1,885 $ 2,165 Source: HUD Fair Market Rents for 2005 Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11- 53 Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. These groups may require specific alteration to housing to meet their needs. In the requirements for preparing a Consolidated Plan, Tustin addresses the special needs and suitability of the housing stock the elderly, disabled, large families, the homeless and farm workers, as summarized below: Elderly Persons Currently Tustin has a total of 192 affordable senior housing units. These projects include a 100 units restricted to seniors (Tustin Gardens), a 20-unit apartment project limited solely to seniors with limited income (Tustin Terrace), an 85-unit congregate care facility with 18 restricted affordable units (Tustin Royale), and a 54-unit apartment project (Heritage Place) that was recently completed. The special housing needs of the elderly are an important concern to the City of Tustin. This is especially significant because many retired persons are likely to be on fixed-Jow incomes, and at greater risk of housing overpayment. In addition, the elderly maintain special needs related to housing construction and location. The elderly often require ramps, handrails, lower cupboards and counters to allow greater access and mobility. In terms of location, because of limited mobility the elderly also typically need access to public facilities (for example, medical and shopping requirements) and public transit services. Elderly citizens also may need special security devices for their homes to allow greater self-protection. In many instances, the elderly prefer to stay in their own dwellings rather than relocate to a retirement community, and may require assistance with home repairs and manual house/yard work. In general, every effort should be made to maintain their dignity, self-respect, and quality of life. Finding reliable means of transportation to medical appointments, senior centers, meal sites and shopping are also continued concerns for seniors. Many seniors lack private transportation due to physical or financial limitations. Table II.BB shows the number and percent of elderly persons in Tustin (65 and over) with disabilities. Any of these conditions may indicate a need for supportive housing. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11- 54 TABLE II-BB Elderly Disability Status 2000 % ofTotal in Disability Persons Cohort (65+) Sensory disability 556 11.6% Physical disability 1,296 27.0% Mental disability 513 10.7% Self-care disability 444 9.2% Go-outside-home disability 964 20.1% Total (65+) 4,804 100.0% All percentages are calculated on this figure. Source: U.S. Bureau of Census, 2000, Table P41 Laroe Families As evidenced by the survey of costs, discussed previously, for single-family rental units available, lower income; large families with larger unit needs may have problems !!nding housing or may require assistance. Table II-CC shows the number of large family owner and renter households in Tustin according to the 2000 Census. The 2000 Census reported 3,645 households in the City of Tustin with five or more persons, which constitute 15 percent of all households in the City. Of these, there were 1,491 owner-occupied and 2,154 renter occupied housing units. This is an increase from the 1990 Census where there were about 2,062 large households with five or more persons representing about 11 percent of all households. Large family households need special consideration because they generally require larger dwellings with sufficient bedrooms to meet their housing needs, without overcrowding. Additionally, there is a limited availability of 3+ bedroom apartment units in the City available to meet the needs of large families. Furthermore, family households with five or more persons often face limitations in being below national poverty levels, and often experience difficulty securing adequate housing suitable for their expanded needs. Difficulties in securing housing large enough to accommodate all members of a household are heightened for renters, because multifamily rental units are typically smaller than single-family units. Thus, large families typically suffer disproportionately from both overcrowding and inability to pay. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 55 Number of Owner Renter Total Persons in Unit Occupied Percent 1 Occupied Percent 2 Occupied Units PercentS Five 774 6.5% 1,058 8.8% 1.832 7.7% Six 400 3.4% 492 4.1% 892 3.7% Seven or More 317 2.7% 60 5.0% 921 3.9% Total 1,491 12.6% 2,154 18.0% 3,645 15.3% TABLE II-CC LARGE HOUSEHOLDS BY TENURE 2000 Total owner occupied umts IS 11,845. Percent of all owner-occupled umts calculated on thiS figure. 2 Total renter occupied units is 11.993. Percent of renter-occupied units calculated on this figure. 3 Total occupied units is 23.838. Percent of total occupied units calculated on this figure. Source: 2000 Census. SF3 Table H17 Disabled Persons Tustin's Housing Element sets forth policies to encourage the development of handicapped-accessible housing. New construction of apartment units (including 1,652 in the East Tustin Specific Plan project area) developed in the City of Tustin during the 1980s and 19905 have been constructed in accordance with the State's Title 24 requirements, which required 5 percent of the units on the ground floor to built as handicapped-accessible units. New construction requirements for apartments and condominiums, effective in July 1993, must comply with the "Califomia Multi-Family Disabled Access Regulations" which blends the regulations of the U.S. Fair Housing Amendments Act of 1988 (ADA) and the California Disabled Access Regulations (Title 24). In general, the regulations require accessibility and adaptability to ground floor units and other units where circumstances are determined favorable. Access and afford ability are the two major housing concerns of disabled persons. Access is particularly important for the physically disabled. Physically disabled persons often required specially designed dwellings to permit access within the unit, such as lowered countertops, wider doorways, and modified bathroom facilities, as well as to and from the site. California Administrative Code Title 24 sets forth access and adaptability requirements for the physically handicapped (disabled). These regulations apply to public buildings such as motels, employee housing, factory-built housing and privately funded, newly constructed apartment houses containing five or more dwelling units. Regulations also require that ramp ways, door widths, restroom modifications, etc., be designed to enable free access to the handicapped. Such standards, however, are not mandatory for the construction of new single-family residential housing units. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 56 The disabled, like the elderly, have special needs with regard to the location of their housing unit. There is typically a desire to be located near public facilities and needed services, as well as close proximity to public transportation facilities that often provide needed mobility for them. Table II-DD shows disability data for Tustin residents in 2000. Especially of concern is the fact that many members of this demographic group are often on a fixed, most often lower income, and often rely on federal or state aid. Persons 16 to 64 Years Sensorv disabilitY 587 Phvsical disabilitv 1,455 Mental disabilitv 966 Self-care disabilitY 364 Go-outside-home disabilitv 3,268 EmDlovment disabilitY 5,386 Persons 65 Years and Over Sensorv disabilitY 556 Phvsical disabilitv 1,296 Mental disabilitY 513 Self-care disabilitv 444 Go-outside-home disabilitv 964 TABLE II-DD DISABLED RESIDENTS - 2000 CITY OF TUSTIN Source: 2000 Census SF3 Table P41 Homeless Population Available statistics currently indicate that the City of Tustin does not have a significant population nor sub population of homeless persons or homeless families with children. The City anticipates that homeless persons and homeless persons with children will be assisted on an as needed basis by making appropriate referrals to organizations or agencies that provide shelter, food and other services for homeless persons and homeless families with children. However, the City of Tustin recognizes that homelessness is a regional issue which needs to be addressed by all jurisdictions regardless of individual circumstances. The City identifies the Homeless Housing Partnership Program as one of the strategies to address the homelessness issue. Within the City of Tustin, there are a variety of non-profit service providers which make direct housing and other supportive services available to homeless persons. These include a transitional housing facility, temporary housing for teenagers in crisis and a meals program affiliated with the United Way (Feedback Foundation). A number of churches in Tustin also provide food services to the homeless. Section II - Housing Market Analysis Tustin 2005-2010 Consolidated Plan II- 57 The three transitional or emergency shelters in Tustin are the Sheepfold, Laurel House, and The Orange County Rescue Mission. The 38-bed Sheepfold transitional housing facility, located in "Old Town" Tustin, provides shelter, food, clothing, job training, and job- referral services to women with children. Laurel House provides temporary housing for teenagers in crisis (homeless and runaway youth) for up to six (6) youths in a home environment. The facility also provides food, informal counseling, access to medical care and clothing. The Orange County Rescue Mission located in the Tustin Legacy (former MCAS Tustin) provides transitional housing for a total of 192 homeless men, women and children, with facilities for 36 families and 88 single adults. The City has developed a strategy that will continue to refer homeless persons and homeless families with children to service agencies and organizations. Through financial contributions, the City will support agencies which provide shelter and other services to the homeless. Farmworkers Prior to the 1970s there was a significant agricultural economy in Orange County. As a result, there was a significant population of migrant farm workers bringing with them a unique set of housing challenges. Changes in the local economy since then have drastically reduced agricultural production within the City limits. Today, Tustin's job base is concentrated in manufacturing, professional, educational and health occupations. In 2000, the Census reported 30 persons (less than one percent of total employed persons) in Tustin employed in agriculture or related industries. Though some remains, most land previously used for agricultural activities is currently developed or designated for commercial or residential development. As there are limited active agricultural areas in the City, there is no apparent or explicit need for farmworker housing. Persons LivinQ with HIV/AIDS and their Families The AIDS Services Foundation acts as a referral agency for putting persons with HIVIAIDS and their families in contact with providers specializing in supportive housing and services for these individuals. The Orange County Health Care AgencylHIV Planning and Coordination Department is responsible for preparing a Comprehensive HIVIAIDS Services Plan for the county, which includes the City of Tustin. In 2004, Orange County reported 211 AIDS cases, a 7.8 percent decrease from the 229 cases reported in 2003. Since the county's first AIDS case was reported in 1981, a total of 6,504 AIDS cases have been reported through December 2004. Of the total reported cases, 3,174 were living as of December 31, 2004. Orange County ranks fifth among California's 58 counties in cumulative AIDS cases reported through 2004. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 58 Between July 2002, when human immunodeficiency virus (HIV) infection became a reportable disease in California, and December 2004, there have been 1,699 HIV cases reported in the county. Among Orange County residents reported with AIDS since 1981, 51 percent have died as of December 2004 (3,330 of 6,504 cases). These numbers represent deaths among individuals reported with AIDS to the local HIV AIDS Reporting System (HARS). As noted above, in December 2004, an estimated 3,174 Orange County residents were living with AIDS, a 115 percent increase from 1995. Additional information regarding AIDS in the County includes: -$- Between 2003 and 2004, the number of people living with AIDS (PLWA) increased by 6 percent. -$- By gender, 89 percent of prevalent cases were male and 11 percent were female. -$- There is a trend towards an increasing proportion of people of color living with AIDS. By racelethnicity, 54 percent of prevalent cases were White, 37 percent Hispanic, and 6 percent African-American and 4 percent among AsianlPacific Islanders between 1997 and 1998 compared to 3 percent among Whites. -$- There have been changes in the risk profile of persons living with AIDS. By exposure category, men who have sex with men (MSM) accounted for the largest number of prevalent cases (2,198 or 69 percent), followed by injection drug users (IDU) (368 or 12 percent), and persons infected through heterosexual contact (279 or 9 percent). The need for housing for persons living with HIV in Orange County includes the following key points: -$- In Orange County, the problem of homelessness among those living with HIV is exacerbated by the high cost of rental housing and the fact that there are more low-income renters than low-cost housing units available. -$- A comprehensive housing study with the help of consultants from AIDS Housing of Washington regarding existing housing resources, unmet needs for housing and related support services, and strategies for meeting those needs revealed the following results: The following information is provided regarding housing needs for those living with HIV/AIDS. -$- 24 percent of all respondents had been homeless at some point in their lives. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 59 -$- 13 percent had been homeless during the past three years. -$- 4 percent had been homeless three or more times. -$- Women and African-Americans are disproportionately homelessness. -$- 39 percent of respondents had moved since leaming of their HIV status, most frequently because of inability to pay the rent. -$- 12 percent of all respondents were on the streets, in shelters, in residential hotels or motels, or were "crashing for free" when they completed the survey. -$- 73 percent indicated that they would have to move if their rent or mortgage payment increased by $50 or more. -$- 78 percent or respondents answering the questions paid more than 30% of their income for rent and 51% paid more than 50% of their income on rent. affected by Cumulatively, since 1981, the City of Tustin has had 109 reported cases of AIDS, an incidence rate of 163.2 per 100,000. AIDS cases have been reported in each of the 31 cities within the County of Orange. At 109 cases, Tustin ranks just slightly below the median of occurrences. Section II - Housing Market Analysis Tustin 2005-2010 Consolidated Plan 11-60 PART B. PUBLIC AND ASSISTED HOUSING INVENTORY Public Housing The City of Tustin does not have any public housing units, nor does the Orange County Housing Authority (QCHA) maintain this type of dwelling unit inventory, as it is defined by HUD regulations. However, the City participates in OCHA's tenant-based Section 8 program and maintains other types of assisted housing inventory (project-based) as discussed below. Section 8 The Orange County Housing Authority has indicated that the total number of Section 8 assisted units in Tustin were 1 ,424 certificates and vouchers. All of these units were tenant-based and under a Housing Assistance Plan (HAP) contract. The City also has within its assisted unit inventory a Section 8 project-based program, which is discussed under "Other" following this discussion since it is "at-risk" of converting to market rents. OCHA was unable to determine the current number of inactive and pending certificates for Tustin. An inactive certificate describes certificate holders who do not locate a unit within the allowed time period (60 to 120 days). According to OCHA, the number of inactive certificates has decreased as they are now "portable" throughout Califomia and are therefore easier to keep active. OCHA is not tracking the unused certificates by unit size separately for Tustin nor the number of units vacant. Other The 2002 Housing Element reported a total of five assisted housing projects comprising 424 assisted units in the City of Tustin. One of these projects (Tustin Gardens) consisting of 100 units is at risk of converting to market rate housing. Orange Gardens, a 160-unit Section 236 (J)(1) project is eligible for conversion to market rates. Prepayment of the Orange Gardens Section 236 is regulated by the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LlHPRHA). LlHPRHA establishes provisions that allow owners of federally subsidized projects that are eligible for prepayment a fair rate of return on the equity in their project in exchange for continued affordability. The project was rehabilitated in 1998 using Low Income Housing Tax Credit Bond financing which restricted affordability for 150 units to low income. Another federally-subsidized project at risk of conversion during the planning period is Tustin Gardens, a 101 unit (100 units + 1 manager unit) Section 221(d)(4) elderly project. This project has a project-based Section 8 contract for 100 units. The Section 221(d) program insured below market rate loans for new construction or substantial rehabilitation multifamily rental properties. Low interest rate loans insured under this program offer incentives for the development of affordable rental housing that serve persons with Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11-61 incomes too high for public housing yet unable to afford market rate rents. The program provides interest rate reduction subsidies to affordable housing sponsors as well as rent subsidies for income-qualified tenants. In return for these subsidies, owners are required to rent units to low-income persons. After 20 years, the owner is pemnitted to prepay the remainder of the 40-year mortgage. With prepayment, HUD affordability restrictions on the. use of the property would expire. The owner of the project is Goldrich & Kest. The remaining three projects, containing a combined total of 174 assisted family units, received Orange County bond financing (Issue V, 1985). These units were subject to income restrictions until year 2001, but no rent restrictions. All three projects are owned by The Irvine Company and are located in the East Tustin Specific Plan Area. Rancho Alisal contains 69 restricted units, Rancho Maderas 54 restricted units, and Rancho Tierra 51 restricted units. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 62 PART C. FACILITIES AND SERVICES FOR THE HOMELESS AND PERSONS THREATENED WITH HOMELESSNESS Within the City of Tustin, there are a variety of non-profit services which provide direct housing and other services to homeless persons. These include a transitional housing facility, temporary housing for teenagers in crisis and a meals program affiliated with the United Way (Feedback Foundation). A number of churches in Tustin also provide food services to the homeless. The three transitional or emergency shelters in Tustin are the Orange County Rescue Mission, Sheepfold and Laurel House. The 38-bed Sheepfold transitional housing facility, located in "Old Town" Tustin, provides shelter, food, clothing, job training, and job-referral services to women with children. Guests are admitted on a first-come, first serve basis. Usually all beds are filled. In addition to serving the immediate Tustin area, The Sheepfold provides service to a large service area extending beyond Tustin's boundaries, including many portions of Orange and San Bernardino Counties. Laurel House provides temporary housing for teenagers in crisis (homeless and runaway youth) for up to six 6 youths in a home environment. The facility also provides food, informal counseling, access to medical care and clothing. The young people served are primarily Tustin residents and students of Tustin Unified School District. Feedback Foundation, Inc., focuses its resources toward the needs of senior citizens by providing nutrition and supportive services, dining centers, home delivered meals, case management, in-home care, day health care centers, and adult day care. Services are offered to anyone who is in need, but primarily to seniors countywide. A number of local churches in Tustin also provide services to the homeless and low income families including St. Cecilia's, Redhill Lutheran which has a food pantry three days a week, Tustin Presbyterian Church which distributes collected food through the TAFFY Program and Tustin Senior Center, and Aldersgate Church which provides food to the Commercial Service Alliance. A couple of non-profits organizations such as Western Medical Center and Newport Medical Center also provide meals once a week to the homeless and low-income families. Numerous other agencies provide shelter and other services to the homeless in the nearby cities of Santa Ana, Irvine, and Orange. The City of Tustin makes referrals to these agencies, which include Mercy House Transitional Center in Santa Ana. The Orange County Homeless Issues Task Force, a non-profit homeless advocacy organization, maintains a list of these and other homeless services in Orange County. In the Comprehensive Affordable Housing Strategy (2000-2010), included within the affordable housing program elements, are programs targeted to prevent low-income individuals and families with children from becoming homeless. These programs include: Homeless Housing Partnership Program and Section 8 Rental Assistance. Tustin 2005-2010 Consolidated Plan Section /I - Housing Market Analysis 11-63 Homeless Housing Partnership Program The City and the Tustin Community Redevelopment Agency (CRA) are supporting the activities of the Orange County Rescue Mission in obtaining financial assistance to provide needed rehabilitation of housing facilities to be used for transitional housing for approximately 192 homeless persons and families. The Tustin CRA also would provide 50 temporary housing for families in need through agreements with non-profit housing providers. Section 8 Renta'l Assistance The basic concept of the Section 8 program is that a low income tenant pays up to 30 percent of income for rent (including utilities) in the private housing market, and government pays the landlord the difference between that amount and the market rent on the unit. The Orange County Housing Authority is allocated a given number of units for which Section 8 subsidy dollars are guaranteed. Eligible low-income families may apply for certificates to participate in the program. Section II - Housing Market Analysis Tustin 2005-2010 Consolidated Plan 11-64 PART D. FACILITIES AND SERVICES FOR SPECIAL NEEDS GROUPS The following is a listing of the inventory of licensed care facilities in the City of Tustin. The listing provides inventory of housing or supportive housing by type of special needs group: Elderlv and Frail Elderlv The Golden Years Guest Home 14752 Holt Avenue (6 Non-ambulatory) 60 years old plus The Golden Years Guest Home II 13071 Red Hill Avenue (6 Non-ambulatory) 60 years old plus Gilda's Guest Home 15621 Pacific Street (6 Non-ambulatory) 60 years old plus Tustin Hacienda 240 East Third Street (65 Ambulatory) (18 Non-ambulatory) 60 years old plus Tustin Royale 1262 Bryan Avenue (120 Ambulatory) (50 Non-ambulatory) 60 years old plus Wendy's Guest Home II 15712 Pacific Street (6 Non-ambulatory) 60 years old plus Autumn Rose V 17382 Vinewood Avenue (6 Non-ambulatory) 60 years old plus Autumn Rose XXI 17331 Vinewood Avenue (6 Non-ambulatory) 60 years old plus Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11-65 Harmony Guest Home 17441 Laurie Lane (6 Non-ambulatory) Magellan Guest Home III 13612 Uti Drive (6 Non-ambulatory) Magellan Guest Homes 1321 Lear Lane (6 Non-ambulatory) Magellan Guest Homes II 13581 Diamond Head Drive (6 Non-ambulatqry) Regent Board & Care 14892 Featherhill Road (6 Non-ambulatory) Persons with Disabilities: Casa Grande Community Care 15645 South "ß" Street Gallegos Family Home 13881 Karen Way Groom Family Home 14152 Woodlawn Avenue Scott Board and Care 12781 Dunas Road Arc Mid Cities 13791 Marshall Lane Tustin Villageway Guesthome 14452 Grassmere Lane 60 years old plus 60 years old plus 60 years old plus 60 years old plus 60 years old plus Ages 18-59, 14 Persons Mentally Disordered Ages 5-17, 6 Children Developmentally Disabled Ages 18-59, 1 Person Developmentally Disabled Ages 18-59, 6 Persons Developmentally Disabled Ages 18-59, 6 Persons Developmentally Disabled Ages 18-59, 6 Persons Mentally Disordered Tustin 2005-2010 Consoiidated Plan Section 11- Housing Market Analysis 11-66 Persons with Alcohol or Other Drua Addictions: The following is a listing of licensed residential facilities andlor certified alcohol and drug program provided by the State Department of Alcohol and Drug: Cornerstone of Southern California 1 13682 Yorba Street Cornerstone of Southern California 4 13671 Rosalind Street Cornerstone of Southern California 8 13672 Yorba Street Cornerstone of Southern California 7 13681 Rosalind Street Persons Diaanosed with AIDS and Related Diseases: The City of Tustin does not maintain an inventory of facilities providing supportive housing for persons with AIDS and related diseases. According to the Orange County Health Care Agency Public Health Division - HIV Community Services, cumulatively, since 1981, the City of Tustin has had 109 reported cases of AIDS, an incidence rate of 163.2 per 100,000. Throughout Orange County, an estimated 3,174 residents are living with AIDS. Tustin 2005-2010 Consoiidated Plan Section II - Housing Market Analysis 11- 67 PART E. BARRIERS TO AFFORDABLE HOUSING 1. Relevant Public Policies a. Description/Assessment - Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Market, govemmental, infrastructure, and environmental constraints to housing development in Tustin are summarized below. . Market Constraints The high cost of renting or buying adequate housing is the primary ongoing constraint of providing adequate housing in the City of Tustin. Lack of vacant land, land costs, high construction costs, and market financing constraints are all contributing to increases in the availability of affordable housing. Land Land costs include the cost of raw land, site improvements, and all costs associated with obtaining government approvals. However, in the case of the City of Tustin, only limited vacant land are available for development. Therefore, the largest cost may be the cost to acquire improved land for in-fill building sites. Due to the lack of available vacant lots in Tustin, the largest cost associated with building a new house on an in-fill site is the cost of acquiring improved land. Vacant land cost that typically would comprise about 35-45 percent of the sale price of a home may be more than double for sites that have existing improvements. These constraints push the land cost, excluding site improvement to above $25 per square foot. Based upon cost information about development projects in Tustin, land costs are approximately $18 per gross square foot for single-family zoned property and $28 per square foot for land zoned for higher density development. Most of the sites in Old Town identified for future residential or mixed-use potential are presently zoned for commercial uses. Commercial land sales in this vicinity include land sale prices in the high $20s to mid $30s per square foot. Construction Costs Other costs affecting the price of a home is the cost of labor and materials, usually comprising between 40-50 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 Intemational Conference of Building Officials (lCBO) 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 Tustin 2005-2010 Consolidated Plan Section II . Housing Market Analysis 11.68 attributed to construction alone for a typical 2,200 square foot, wood frame home would be $134,420. exclusive of construction permit fees and land costs. 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. Financina Interest rates can have a substantial impact on housing costs which is felt by renters, purchasers, and developers. 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 many existing households to over-extend themselves financially, as well as a retum to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time homebuyer can still be minimum down payments required by lending institutions. Even if Tustin homebuyers are able to provide a 10 percent down payment and obtain an 6.0 to 6.5 percent (depending upon credit worthiness), 30-year loan, monthly mortgage payments on median priced single-family detached homes in the City place most homes out of the reach of moderate and lower-income households in the City. At a 6.0 to 6.5 percent interest rate, monthly mortgage payments on median priced condominiums and townhouses place such units remain too expensive for Tustin's low and very low-income households. 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. Profit. Marketina and Overhead Developer profits generally comprise about 8 to 12 percent of the selling price of single-family homes and slightly lower for condominiums. Developer marketing and overhead generally comprise 2.5 to 3 percent and 3 to 5 percent respectively. 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. This however is harder to realize due to the unavailability of vacant land within the City. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11- 69 Redevelopment Affordabilitv Gap Analysis In addition to information related to Housing Constraints provided in the City's Housing Element, the CHAS (2000-2010) Affordability Gap Analysis to illustrates the "gap" between the cost of developing housing for rent and ownership in Tustin and what households at a variety of income levels can afford to pay toward their housing expense. Appendix C contains a complete copy of the analysis. Governmental Constraints Housing afford ability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvements requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. land Use Controls Government agencies may place administrative constraints on growth through the adoption and implementation of land use plans and ordinances. The City's 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 4.35 units per net acre in the E-4 Residential Estate District to 24.9 units per net acre in the R-3 Multiple Family Residential District and 10 units per net acre in the MHP Mobilehome Park District. 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. Tustin has the highest percentage of multi-family units of any city with Orange County. Based on the 1990 Census only 30 percent of the housing stock in Tustin was devoted to single-family detached units, while 70 percent are single-family attached and multi-family units. By the 2000 Census, the number of single-family detached units increased slightly to 32 percent while 68 percent were single-family attached and multi-family units. Tustin 2005-2010 Consoiidated Plan Section 11- Housing Market Analysis 11- 70 Current land use controls restrict development in single-family residential zones to one dwelling unit on parcels 10,000 square feet in the E-4 Estate Residential District and parcels with a minimum of 7,200 square feet in the R-1 Single-Family Residential District. However, the PC Planned Community District has authorized residential subdivisions with single-family lots of 3,000 square feet, thus significantly increasing potential housing density. In addition, the City of Tustin recently amended its zoning code to all for second units as mandated by California state law. Previously, the Cultural Resources District required single-family lots within the District to have a minimum lot area of 10,000 square feet. The City in 1998 amended its Zoning Code to allow parcels located within the Cultural Resources District be developed consistent with the underlying zoning district. The minimum lot size of 10,000 square feet only applies to creation of new lots within the District. Typical minimum lot sizes for underlying zoning districts are 7,200 and 7,000 square feet for single-family and multi-family district respectively. This would increase the development existing lots within the District. The East Tustin Specific Plan area provides for single-family detached products to be developed at a variety of densities. The Estate Density description requires a minimum lot-area of 8,000 square feet, not to exceed 2 units per acre. The Low Density designation requires a minimum lot area of 5,000 square feet while the Medium-Low Density designation requires a minimum lot area of 3,000 square feet and densities not to exceed 5 and 10 units per acre respectively. Within the R-3 Multi-Family Residential District, a 35-foot height limitation and 65 percent coverage precludes the development of high-rise (over 3-4 stories) 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 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. Residential uses are permitted in the City's Old Town area which supports primarily commercial uses. The Planning Commission or City Council will determine maximum permitted residential densities. Limited residential uses are also permitted in areas designated Publicllnstitutional provided the intended occupants are related to the primary institutional uses. Tustin 2005-2010 Consolidated Plan Section II - Housing Market Analysis 11- 71 In November 1999 the City adopted the Density Bonus ordinance which would provide for at least 25 percent density bonus and at least one concession to developers when they agree to provide the minimum number of affordable housing units. This ordinance was amended in September, 2003, and now includes the following concessions when a developer agrees to provide the following number of rental or for-sale "target units": (1 ) At least 20 percent of the total units affordable to Lower Income Households; or At least 10 percent of the total units affordable to Very Low Income Households; or 50 percent of the total units for Senior Citizen housing; or At least 20 percent of the total units in a qualified Condominium Project. (2) (3) (4) Please refer to Appendix H for a copy of Tustin's current Density Bonus Ordinance. With the enactment of SB1818 which amended the Density Bonus requirements further, the City would need to amend its current Ordinance to comply with the new State Law. 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. Almost all of these fees are assessed based on the concept of cost recovery through a pro rata share system, based on the magnitude of the project's impact or the extent of the benefit which will be derived. Tustin is highly urbanized with most of its necessary infrastructure, such as streets, sewer and water facilities already in place. Nonetheless, site improvements can significantly add to the cost of producing housing. Cost-effective site planning or use of housing set-aside funds for those projects within the redevelopment project areas can minimize site improvement costs. Building Codes and Enforcement The City of Tustin adopts all Uniform Building Codes (UBC), as required by State Law, which establishes minimum construction standards as applied to all residential buildings. The City's building codes are considered to be the minimum necessary to protect the public health, safety and welfare. Only local modifications to the codes are made which respond to local climatic or geographic conditions and which clarify Administrative procedures. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 72 Although not mandated to do so, the City has also adopted the State Historical Code which relaxes building code requirements in the City's Cultural Resources Overlay District. This will reduce rehabilitation costs. Local Processina 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 ultimately manifested in the unifs selling price. State Law establishes maximum time limits for project approvals and City policies provide for the minimum processing time necessary to comply with legal requirements and review procedures. The City's 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 delay in pennit processing by assigning priority to the plan review and permit issuance for low-income housing projects. If a complete application is submitted, plans are simultaneously reviewed by all Design Review Committee members and plan checking departments. This process provides for a "one-stop" processing system which is required by State Law. Additionally, for projects of significant benefit to the low-income community, costs can be waived by the City Councilor the use of redevelopment housing set-aside funds can further reduce or eliminate these costs to the developer of low-income projects. Workload Another governmental constraint is the number of staff and the amount of staff time available for processing development projects. Since the workload is detennined by outside and uncontrolled forces (economy and market for housing availability of general fund revenue), a shortage of staff time may occur which could lead to increased processing time for development projects. Tustin 2005-2010 Consolidated Plan Section 11- Housing Market Analysis 11- 73 SECTION III STRATEGIC PLAN This section establishes the general priorities for assisting extremely-low, low, moderate and middle income residents based on the analysis of the City's needs and market and inventory conditions, as described in Section I and Section II. This section also sets forth the strategy to be followed and the actions to be taken to address imbalances between the City's needs for housing assistance and the affordable and supportive housing services inventory. Tustin 2005-2010 Consolidated Plan Section III - Strategic Pian 111-1 PART A. SUMMARY OF STRATEGIC PLAN Tustin's Strategic Plan is based on the City's housing needs as outlined in Section I and Section II, the Affordability Gap Analysis prepared in the Comprehensive Affordable Housing Strategy (2000-2010) for the City of Tustin and Tustin Community Redevelopment Agency (CRA), and the anticipated availability of financial resources (both Federal and others). Several broad policies establish the framework within which the City's Strategic Plan has been developed. The key objectives include the following: 1. Conserve, maintain and rehabilitate existing housing and revitalize existing neighborhoods; 2. Maximize the supply of affordable housing; 3. Increase homeownership; 4. Preserve the existing supply of affordable housing; 5. Ensure new housing is sensitive to the existing natural and built environment. These broad policies for expenditure of the housing set-aside funds are designed to ensure that significant resources are available to accomplish specific program goals. In addition to the above broad policy direction, there are a number of specific procedural policy guidelines that will impact the City's allocation of funds to specific programs. The following guidelines are proposed. GAographil". Tar~Ating Programs involving the substantial expenditure of public funds on a per unit or per household basis will be focused in identified target areas or sub areas in the South Central and Town Center Redevelopment Project Areas. By targeting redevelopment areas, Tustin retains the ability to combine housing set-aside funds with Federal and State funds to draw from a larger resource. Additionally, areas identified in Section II as "areas of low-income concentration," low- and moderate-income," and "areas of racial/ethnic minority concentration" will also be areas of targeting. Programs requiring smaller financial subsidies or expenditures of staff time will be operated citywide as resources are available. Tar~Ating of City Finanr-.ial RAAollrcAs Tustin will target its housing resources for households at various income levels and with special needs as close as possible to the distribution of extremely low, low, moderate and middle income households as defined in HUD's instructions for preparation of the Consolidated Plan, and will also incorporate the SCAG RHNA Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-2 model for future needs as described in the Tustin Housing Element. This would mean that the City will make an effort to assist units in approximately the following income distribution levels consistent with HUD and the State Department of Housing and Community Development (HCD) and the proportionate share of each need income category as identified in the SCAG Regional Housing Needs Allocation (RHNA) model: 35 percent very low, 25 percent low and 40 percent moderate. This percentage of disbursement could change as HUD's requirements or SCAG's information changes or the City amends its Housing Element. DAfinitinn nf AffnrdahlA Hnmdng E)(pAn!;A Affordable housing expense will be defined for renters as rent plus utilities and for owners as principal, interest, property mortgage insurance (PMI), property taxes, insurance, condominium or maintenance expenses, utilities and other required housing expenses. State law and most federal affordability standards define affordable housing expense at 30percent of gross.Jncome for renters (including rent and utilities) aQd 30 percent to 35 percent of gross income for owners (including principal, interest, property mortgage insurance (PMI), property taxes, insurance, homeowners fees, maintenance expenses, and other housing costs). For very low and lower income renter households, affordable housing expenses will be defined according to the largest subsidy program available for rental housing development: the low income housing tax credit program. Affordable housing expense for very low-income renter households is targeted to the "nine percent" low income housing tax credit program. To maximize the competitiveness of a project, a developer applying for an allocation of "nine percent" tax credits should set rents at levels affordable to families at an average of 48 percent of area median income, adjusted for household size. Affordable housing for lower income renter households is targeted to the tax exempt bond program and "four percent" tax credits. The maximum rent allowed under the tax exempt bond financinglfour percent tax credits program is a rent level that is affordable to persons at 60 percent of area median income, adjusted for household size. Affordable housing expenses for very low, lower and moderate owner households are generally based on Califomia Redevelopment Law definitions. While CRA defines affordable housing cost at 35 percent of 110 percent of median income for moderate income households, the amount of 35 percent of 100 percent of area median income was chosen because households at this income level are generally able to devote a larger percentage of their household income toward housing costs. In addition, lenders today commonly approve such debt ratios. In defining affordable housing expense for specific home ownership programs, the City will consider current underwriting practices to ensure the definitions do not exclude households form eligibility for private lending programs. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-3 In summary, the rule of thumb for maximum affordable housing expenses is defined in Table III-A below. Table III-A Affordable Housing Expense City of Tustin Definition of Maximum Affordable Housing Expense Income level BaJJtaI Owne",hip Very low Income (50% of median and below) 30% of 48% 30% of 50% Lower income (51-80% of median) - 30% of 60% 30% of 70% Moderate Income (81-100% of median) 30% of 90% 35% of 100% Moderate income 30% of 110% (101-120% of median) Source: Comprehensive Affordable Housino Strateov (2000-201 O\. 35% of 110% TArm af Affardability The length of time an assisted housing project must maintain affordability restrictions is referred to as the term of affordability. In the 1960s and 1970s, when HUD designed its assisted rental housing programs to provide for 20 years of affordability, it was considered a long-term program. But the 20-year period of many of these developments is coming to an end and the need for affordable housing has increased. HUD is faced with the choice of providing substantial additional subsidies to make it feasible for affordable housing developers to purchase these properties and keep them permanently affordable, or allowing the projects to convert to market rate, pricing most existing tenants out of their units. Section III - Strategic Plan Tustin 2005-2010 Consolidated Plan 111-4 The trend in Federal and State affordable housing assistance programs is towards longer terms of afford ability. To receive low-income housing tax credit allocations in California, project owners must agree to afford ability restrictions of fifty-five (55) years. Local Califomia redevelopment law provides that housing assisted with redevelopment funds is to remain affordable for "the longest feasible time" as determined by the Redevelopment Agency, but for not less than the period of the land use controls established in the Redevelopment Plan. The National Affordable Housing Act of 1990 and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 both adopted "useful life" as the term of affordability for assisted housing. The useful life of the development-which is generally defined as the time period for which the project remains physically sound and can be maintained in good condition with the income generated by the payment of affordable housing costs--is the longest feasible time for which housing can be maintained as affordable to low and moderate income households. The resources to impleme_nt City housing projects may come from many different sources with varying afford ability term requirements. Projects using resources from multiple sources must comply with the most stringent standards of the sources used. The Tustin Community Redevelopment Agency's housing set-aside funds (the Low and Moderate Income Housing Fund) will be one of Tustin's primary sources of financial assistance for affordable housing. Any new or substantially rehabilitated housing assisted from the Low and Moderate Income Housing Fund must remain affordable to low and moderate income persons or households for "the longest feasible time" or the most stringent time standards required by the sources used. Substantial rehabilitation applies to rental properties with three or more units or single family (ownership) properties with one or two units, where the value of the rehabilitation work constitute 25 percent of the after rehabilitation value of the dwelling, inclusive of land value. The affordability with the housing set-aside funds must be made enforceable by the agency through the recordation of covenants or restrictions against the applicable parcel. Pursuant to Califomia Govemment Code Section 65915, the City's density bonus ordinance adopted in November, 1999, and amendedlupdated in September 2003 provides a developer with developer incentives and a density bonus for the construction of affordable housing, if the developer agrees to ensure a continued affordability for all required units (target units) for a period of 30 years or longer period if required by the mortgage financinglmortgage insurance/rental subsidy programs. If only a density bonus is provided by the City, continued affordability must be guaranteed for 10 years for all target units. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-5 Even if the Low and Moderate Income Housing Fund rehabilitation assistance does not involve substantial rehabilitation, certain affordability controls may still be needed. For example, a deferred rehabilitation loan without some form of controls for the term of the loan might enable the recipient to prepare the dwelling unit for sale at a higher price, thus taking the unit out of the affordable housing stock and having the exact opposite effect of that intended by the extensive housing set-aside provisions. The Tustin Housing Element does require deed restrictions to prevent speculation on low or moderate income housing constructed or rehabilitated with the assistance of any public funds or Redevelopment housing set-aside funds as may be legally required by the use of such funds. I-Inm;ing T}Q)A and Tenure The City will continue to pursue the creative use of various housing types and tenure to meet Tustin's affordable housing development objectives. Tustin can meet its affordable housing obj~ctives by providing a variety of housing types and tenure. Rehabilitation resources will concentrate on rehabilitating units as close as possible to the percentage of the City's current tenure mix of 50.4 percent rental to 49.6 percent ownership (based on Census data from the year 2000). This nearly equal mix is a change from 1990 Census data which had a 60 percent rental and 40 percent owner mix. In new construction, an attempt will be made to concentrate resources on increasing homeownership opportunities so that 70 percent of new units enhance homeownership and 30 percent are affordable rental units. Tustin may wish to pursue alternative types of tenure, such as limited equity cooperatives. This type of tenure provides ownership opportunities for some households who otherwise could never afford an equity stake in housing within Tustin. Perindlc Review nf Hnu~ing Strategy The City will review its Housing Affordability Strategy policies, programs and assistance goals every five years or at least when it updates its Housing Element. Opportunity for an update will be afforded if General Plan Amendments are completed to support reuse at the MCAS Tustin. An annual review will also be afforded once Tustin prepares its Action Plan component of the Consolidated Plan required for entitlement grants under the Federal CDBG and HOME programs. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-6 PART B. STRATEGY FOR AFFORDABLE HOUSING Consistent with the policies discussed in Section III Part A, the City has devised a number of programs for housing assistance to address Tustin's housing needs. The programs are described in terms of activity types and are reflective of programs adopted as outlined in the Comprehensive Affordable Housing Strategy (2000-2010). Many of the programs reinforce, in terms of housing assistance, the overall neighborhood revitalization effort the City has initiated in the South Central Redevelopment area. There are five major housing program activity categories which relate to the City's established housing policies. HUD instructions for preparation of the Consolidated Plan require the City to identify the various priorities for allocating investment. According to Consolidated Plan preparation instructions, a "relative priority" of high, medium, low, or no such need is to be assigned to the various household types based upon the City's needs assessment combined with the availability of staffing and financial resources. Overall, in assigning priorities, Tustin has concentrated the high priorities where benefIt to the greates! number of households could be achieved with less assistance dollars per household. This allows the monies available to serve more households. Finally, in implementing the Consolidated Plan, the City of Tustin will generally support applications for all programs and resources from eligible non profits and other entities where their activities provide assistance to the City's residents. With adequate program staff available for administration, the City also plans to apply for and pursue sources of program funds listed in Section IV of this document and other future funding sources that become available. 1. Priority Activity A: First.TimA HnmAhllYAI'S Prngram (MAdillm Prinri~) a. Analysis - This program will primarily assist first-time homebuyers of low and moderate incomes in purchasing new or resale single-family homes and condominiums in Tustin. Year 2000 Census data indicates that approximately 83.3 percent of the City's renters with low income residents and 25.3 percent with moderate incomes are cost burdened (paying more than 30 percent of their income for housing), while 76.2 percent of those with low income are severely cost burdened (paying more than 50 percent of their income for rent, while none of the moderate income rental households are severely cost-burdened. These conditions indicate that an opportunity may exist for low and moderate-income renter households to transition to becoming first-time homebuyers with some assistance. Section III - Strategic Plan Tustin 2005-2010 Consolidated Plan 111-7 Cost-burdened renter households are usually unable to afford the savings required to make a down payment for a home purchase; however, they are usually already making rental payments that are similar to mortgage payments. Consequently, a medium priority ranking has been assigned to owners with household incomes categorized as moderate-income (51-80% of MFI). Although Tustin is not required to assign priorities to moderate incomes (81-95 percent of MFI) and incomes may range as high as 120 percent of median, those households would be assigned a high priority ranking for assistance programs for homeownership since households eaming these incomes are better able to qualify for loans and have the ability to afford the cost of maintaining their own homes. Finally, a low and medium priority ranking have been assigned to extremely-low and low- income (0-50 percent of MFI) respectively, based on the substantial difficulties that these households would have in qualifying for loans, meeting mortgage payments, and the inability to accommodate the long-temn costs associated with maintenance of ownership property. The City has identified other programs to assêt these households. b. Strategy Development - Investment Plan Activitie!': There are three components of the homebuyers program. The City will assist low to moderate-income households citywide to participate in existing state and lender first-time homebuyer financing programs. Downpayment assistance loans to low-moderate income households will be provided citywide. Finally, the Mortgage Credit Certificate (MCC) program is a Federal program which allows first-time homebuyers to receive a Federal income tax credit for a portion of their mortgage payment (effectively reducing their housing payment). Program!': Proposed fomns of assistance under each of the three components are described below: First-time homebl(yer - Low Interest RateJLow DownplfJlment MortgageR Several existing State and Community Reinvestment Act (CRA) lender programs assist first-time homebuyers of low and moderate income in purchasing new or resale single family homes through mortgage financing. Through these programs, pemnanent mortgage loans are made at low fixed interest rates. These programs often offer liberalized underwriting criteria as well. Some programs are only operational in Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-8 designated low-income target areas. Examples of such programs include the California Housing Finance Agency (CHFA) Home Mortgage Purchase Program, Fannie Mae's Community Home Buyer's Program, and Bank of America's Neighborhood Advantage Program. Lender programs, such as the Bank of America Neighborhood Advantage program, the Fannie Mae Community Home Buyer's program, and Freddie Mac's Affordable Gold program, reduce the down payment requirement to 5 percent of sales price. The Fannie Mae and Freddie Mac programs go further by offering a "3/2 Option" whereby the homebuyer may meet the minimum 5 percent downpayment requirement by paying three percent (3%) from personal resources and up to 2 percent from a gift from family members, or a grant or unsecured loan from nonprofit or public agencies or employers. Some lenders, such as Bank of America and lenders participating in the California Housing Loan Insurance Fund (CaHLlF) First Time Homebuyer Program, are even offering 100 percent financing to qualifying borrowers. These programs do not require resale restrictions to be placed on the purchased homes. - The City of Tustin could assist Tustin households in identifying and applying for existing first-time homebuyers programs. This program will not require direct financial assistance from the City or Community Redevelopment Agency of Tustin, but would involve increased administrative costs. DOWl1PllJlmAnt AssistancA Potential low and moderate income first-time home buyers may have adequate incomes to qualify for mortgages to purchase houses but may lack sufficient savings to make downpayments and pay closing costs. Often down payments are from 5 percent to 10 percent of the purchase prices and closing costs may be an additional 3 percent. By providing financial assistance through the City's First Time Homebuyers loan program, the City can continue to assists potential low to moderate income homebuyers whose savings andlor income are insufficient to qualify for home mortgages without assistance. The City's assistance takes the form of a second trust deed, which serves to provide assistance for downpayment and dosing costs and lower monthly payments. The program also serves to reduce the "affordability gap" when combined with the first time homebuyer programs. Tustin 2005-2010 Consoiidated Plan Section III - Strategic Plan 111-9 Resale restrictions and purchase options are placed on the units, which limit the extent to which prices may increase and preserve the benefit of the Agency's subsidy for future owners. While the homeowner's potential financial benefit from price appreciation is limited under the temns of the second trust deed loan, the owner continues to receive the remaining benefits of home ownership including: mortgage interest and property tax reductions; limited appreciation; and family and neighborhood stability. The City records in the County Recorder's office, a regulatory agreement and restrictive covenant with other related documents giving constructive notice to future potential owners of the housing restrictions. Mn~A CrAdit CArlificatA (MCG.I Prnr¡ram The Mortgage Credit Certificate (MCC) program is a federal program, administered through the County of Orange, which allows first-time homebuyers to receive a feder!!' income tax credit for 20 percent of their mortgage payments. Mortgage lenders view the credit as a reduction of housing payment or an increase in income to assist households in need. The federal government has established income restrictions for the program and encourages the MCC program to be combined with other first-time homebuyer programs. Under the initial statute, the income limits were established for the State of Califomia as summarized in Table III-B below. However, when the program is renewed, it is anticipated that the income limits (as well as other provisions) could be changed. Table III-B MCC Income Limits Household Size Target Areas 1 Non-Target Areas 1 1-2 Persons 3 Persons 120% of Median 140% of Median 100% of Median 115% of Median 1 As defined by the Statute Source: David Rosen and Associates Februarv 2000 Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-10 The City's financial obligations to participate in the program are minimal. Program allocations are based on the dollar certificates. The City or the Tustin CRA would be required to hold in a reserve account 1 percent of the allocation requested. In addition, Tustin would also be responsible for its fair share of administrative costs. 2. Priority Activity B: PrAsArvatinn nf EYi!;ting AffnrdablA Unihl {High ~ a. Analysis - In the 1960s and 1970s, several widely used HUD loan and rental assistance programs provided owners the opportunity to end affordability restrictions or opt out of rental assistance contracts prior to the full contract time, without HUD approval. The City's Housing Element identified one federally-assisted project at risk of converting to market rates during the planning period. The project has been assigned a high priority ranking. As required by State law, the City's Housing Element includes a strategy to preserve the affordability of these units. The federally-subsidized project that is currently at risk was Tustin Gardens, a 101 unit Section 221 (d)(4) elderly project. This project has a Section 8 contract for 100 units. The owner of the project is Goldrich & Kest. b. Strategy Development - Investment Plan Ar:tivitiAs In response to concem over the imminent loss of assisted units, Congress passed the Emergency Low Income Housing Preservation Act of 1987 (ELI HPA) and the Low Income Housing Preservation and Resident Homeownership Act of 1990 (LlHPRHA) to provide measures to preserve assisted housing and prevent the displacement of existing tenants. The restrictions on opt-outs from Section 8 contracts, like the contract on Tustin Gardens, are not as limiting as those of ELlHPA or LlHPRHA. An owner whose contract provides the option may still elect to discontinue participating in the Section 8 program prior to the contract's expiration date as long as one year's advance notice is given to HUD. If discontinued, any affordability controls imposed by the contracts would no longer be binding. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-11 Program!': The City needs to be prepared to use housing set-aside funds if necessary, to provide any necessary assistance for any potential non-profit acquisition of Tustin Gardens. Since Tustin Gardens is not regulated by LlHPRHA, preserving it may require greater local subsidy along with additional leverage from non-local sources. ' 3. Priority Activity C: RAhahilitation of Fvhding HolI!':lng Stock (Prlorlq, variA!': by program) a. Analysis - As discussed in Section I, the City of Tustin has a large number of older housing units in need of rehabilitation in the areas within the South Central and Town Center Redevelopment Project Areas. Additionally, other areas in the City with high concentrations of low- and moderate-income households, and racial/ethnic minority households will be targeted. These include single-family units, small two to eight unit apartment projects and larger apartment complexes. - As outlined in Section I, Census data indicate that renters experience higher incidences of housing problems and cost burdens than owners. The City also has an unusually high ratio of renter to owner households. Consequently the City has placed emphasis on the assistance needed for renter households. Income levels targeted for rehabilitation assistance for the owner-occupied component are between 80-120 percent of median while the assistance to the renter-occupied component is targeted to income at or below 120 percent of median. b. Strategy Development - Investment Plan ActivitiA!': Since the South Central Redevelopment Project Area has a number of smaller apartment projects containing two to eight units each, the rehabilitation and preservation of these units is considered critical to the success of the City's housing revitalization efforts. The City's goals for the area are to increase homeownership opportunities, balance the income mix by increasing the number of moderate income households, and improve the housing stock while preserving affordability for existing low income residents. The South Central Project Area also has pockets of single family housing in need of repair and rehabilitation. This program has assisted low and moderate income homeowners in target areas to upgrade their properties as well. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-12 Programs Incentives for property owners to improve their properties, such as rehabilitation loans and grants, are accompanied by City code enforcement activities to ensure that substandard units are brought into compliance with City codes. OwnAr RAhabilitatinn Lnans or Grants (Low Prinrif;Jt) The Tustin Community Redevelopment Agency will continue to provide rehabilitation loans and grants for owner-occupied single-family properties within certain specified target areas for households at or below 120 percent of median income, adjusted for household size. Low and Moderate Income Housing Funds and future CDBG andlor HOME funds will be used for the program. In the case of the CDBG and HOME programs, the City will need to ensure that program guidelines respond to the specific legislative restrictions of each of these programs. Loan proceeds are designed to be retumed to a revolving loan fund upon sale or transfer of property or violation of any required deed restriction (i.e. failure to maintain dwelling). Multi.Family Acq¡lÍ!!:itinn SlIb!!:t:mtial RAhabilitatinn CnnvAT!!:inn to OwnAT!!:hip Hnllsing (High PrinritJt) and Many of the City's small two-eight unit apartments in the South Central Project Area are owned by absentee landlords and managed by apartment management companies. Absentee owners of rental units purchased for future speculative value, perhaps with the thought of redevelopment of existing properties, may be less inclined to make a short-term investment to maintain the condition of existing properties, while submitting to long-term afford ability restrictions. A multi-family acquisition and rehabilitation program is proposed whereby the Tustin CRA will act directly or as a catalyst for the acquisition, rehabilitation and, where possible, conversion of these units to ownership housing, such as condominiums or cooperatives. Structuring financial assistance in the form of deferred loan secured by a deed of trust on the assisted property can provide further assurance that affordability will be maintained. A deed of trust provides that if the borrower defaults in a promise (either for repayment or maintenance of housing affordability), the Agency can take over the property. Also the combination of deferred loan and recorded restrictions would reduce the risk of units be converted to market rate. Section III - Strategic Plan Tustin 2005-2010 Consolidated Plan 111-13 RAntal RAhabilitation Loans or Grants (Low Prior/fJL)' As in the case of the owner rehabilitation program, the Tustin Community Redevelopment Agency will continue to provide loans and grants to owners of rental property in need of moderate rehabilitation where a majority of existing tenants (51 percent) are at or below 120 percent of median income and rents remain within Fair Market Rent (FMR) levels for the temn of the loan. Again, housing set-aside and future CDBG andlor HOME funds will be utilized. In the case of the CDBG and HOME programs, the City will need to ensure program guidelines respond to the specific legislative restrictions of each of these programs, including income restrictions. Small PrqjAct MultI-Family RAntal Acquisition and RAhah/lifation (MAd/11m PriorifJt.). - Units in small projects (two to eight units) purcl:!?sed fomn absentee landlords and rehabilitated could be retained in non-profit ownership and rented to qualifying low income tenants with rental restrictions in place. If substantial rehabilitation is involved, the City andlor the Tustin CRA is required to restrict the occupancy to eligible families for the longest feasible time detemnined by the Agency, but not less than the period of land use controls under the redevelopment plan. In this case, the City andlor the Tustin CRA would record in the County Recorder's office, a regulatory agreement, restrictive covenant, or other document outlining the rental restrictions placed on the property. 4. Priority Activity D: NAW Homdng Construction (Priority VariAs by Program) a. Analysis - As discussed in Section I previously, the City of Tustin has requirements to meet the regional objectives to provide the City's fair share of housing units in various income ranges as received from SCAG and to increase home ownership in the City. In the past, new housing construction projects have primarily focused on meeting these objectives. Tustin will continue to make an attempt to meet SCAG's RHNA model objectives. With the exception of development opportunity that will occur on the MCAS, Tustin site, the City is mostly built-out. Consequently, Tustin is looking towards the development of primarily in-fill housing development. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-14 b. Strategy Development. Investment Plan Activities The City will assist in the development of affordable new owner and senior rental housing in Tustin compatible with surrounding neighborhoods. Consistent with the City's housing policies, priority for new construction assistance will be given to ownership housing. The City's General Plan provides mixed-use site opportunities in Old Town where new ownership housing could be constructed. The report prepared for the City by the American Institute of Architects' Regional/Urban Design Assistance Team (RIUDAT) recommended mixed-use development including residential uses as desirable for Old Town from a land use and marketing perspective. Programs The City has limited opportunities for new ownership and rental construction on in-fill sites in the City. These programs would assist the development of affordable units within newly constructed projects in the City's two redevelopment areas. MAW OwnAr Housing Construction The Tustin CRA would provide financial assistance for new owner housing construction the mitigate amount of the affordability gap discussed in Appendix C for projects using Low and Moderate Income Housing Funds. The Tustin CRA is required to restrict the occupancy of newly constructed housing to eligible families for the longest feasible time for new ownership housing assisted with Low and Moderate Income Housing Funds. Leveraging land acquisition assistance to private developers by structuring the financial assistance in the fomn of a deferred second mortgage, in combination with a regulatory agreement, restrictive covenant, or other document recorded against the property, could assure that affordability is maintained for the required temn. Tustin 2005-2010 Consolidated Plan Section III - Strategic Pian 111-15 NIO-w SIO-n;or RIO-nfl'll Con!ltfrm:t;on (J nw PrlnrltJi) The Tustin CRA would provide financial assistance for new senior rental housing construction not to exceed the amount of the affordability gap discussed in Appendix D for projects using Low and Moderate Income Housing Funds. The Tustin CRA is required to restrict the occupancy of newly constructed housing to eligible families for the longest feasible timeframe detemnined by the Agency but for not less than the period of land use controls under the redevelopment plan for new rental housing assisted with Low and Moderate Income Housing Funds. Since property tumover through sale occurs less frequently for multi-family rental housing than for single-family homes, maintaining afford ability restrictions is less problematic. A regulatory agreement outlining the long-temn use restrictions would be recorded against the property. Structuring the financial assistance in the fomn of a deferred seèond mortgage,_stipulating that the property cannot e.e sold without the consent of the Tustin CRA and that affordability restrictions must remain in place, provides further assurance that the financial investment is protected. In addition to direct financial assistance, the City may provide additional non-financial incentives to assist in the development of new senior rental housing. The City will calculate the economic value of all assistance to a developer and stress the concept of "equity partnership." In other words, whenever bringing value to the negotiation table, including non-financial resources, there will be an ultimate benefit to the City. In the case of density bonus units and the use of other financial incentives, provisions of Califomia Govemment Code Section 65915 would apply. This section requires continuing afford ability of all target units for 30 years or a longer period as required by construction mortgage financing assistance, mortgage insurance, or rental subsidy programs. 5. Priority Activity E: Support and AncillaJ:y SArvicAR (High Priority) The City of Tustin has identified two particular activities that are supportive and ancillary services to address the specific needs of Tustin's residents: Homeless Assistance Partnership Program and Existing Section 8 Rental Assistance. These activities are discussed below but do not preclude the utilization of other support services that may become available or become necessary to support affordable housing units for a particular population group. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-16 a. Analysis HnmA/Ass Housin.g Partnership Program Assistance in providing supportive housing and supportive services to help homeless persons and families transition from homeless to living as independently as possible. The Homeless Assistance Program includes transitional housing to facilitate the movement of homeless individuals and families to permanent housing within 24 months and supportive services designed to address the special needs of homeless persons. Er;~t;n.g SACtinn 8 Rental Ass;stancA Low and very low-income residents of the City may apply for Section 8 rental assistance certificates and voucher certificate program assistance funds allocated through the Orange County Housing Authority (OCHA). The basic concept behind the Section 8 program is that a low income tenant pays up to 30 percent of income for rent (including utilities) in the private housing market, anCJ the govemment pays the landlord thê difference between that amount and the market rent on the unit. The numbers of the non-homeless special needs households are not significant in Tustin, and there are not significant numbers of Tustin residents on OCHA's waiting list for the Section 8 program. Therefore, a low priority ranking has been assigned under non-homeless persons with special needs on Table III-C. b. Strategy Development. Investment Plan ActlvitiAs HnmA/Ass Hnusin.g Partnership Prorzram The City and Redevelopment Agency of Tustin are supporting the activities of the Orange County Rescue Mission in obtaining financial assistance to provide needed rehabilitation of housing facilities located on the MCAS-Tustin. The facilities will be used for transitional housing for approximately 192 homeless persons and families. Other local nonprofit housing providers will operate 50 additional scattered housing units to provide temporary housing for families in need under agreement with the Redevelopment Agency. SAction 8 Rental Assistance OCHA is allocated a given number of units for which Section 8 subsidy dollars are guaranteed. The current Section 8 Program has no limits on rents, but instead, there is a payment "standard" which is equal to the fair market rent for Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-17 Section 8 existing housing. The subsidy payment for a voucher holder is the difference between the payment standard and 30 percent of the tenant's adjusted income, regardless of actual unit rent. Programs:: Homeless Hnmd"f/ Partnef'!;híp PrOf/ram A detailed discussion on this program is covered under Part C: Strategy for Homelessness. Eri8ti"fl Section 8 Rental Asdd:mce Eligible very-low and low-income families in Tustin may apply for certificates to participate in the program. The City will continue to contract with OCHA for this program and make appropriate referrals. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-18 PART C. STRATEGY FOR HOMELESSNESS Available statistics currently indicate that the City of Tustin does not have a significant population nor subpopulation of homeless persons or homeless families with children. The City anticipates that homeless persons and homeless persons with children will be assisted on an as needed basis by making appropriate referrals to organizations or agencies that provide shelter, food and other services for homeless persons and homeless families with children. For these reasons, all of the homeless needs have been assigned a low priority ranking. However, the City of Tustin recognizes that homelessness is a regional issue which needs to be addressed by all jurisdictions regardless of individual circumstances. The CHAS identifies the Homeless Housing Partnership Program. The Homeless Housing Partnership program provides assistance for supportive housing and supportive services to help homeless persons and families transition from homelessness to living as independently as possible. The Homeless Housing Partnership Program includes 192 transitional housing units (to be operated by the Orange County Rescue Mission) to facilitate the movement of homeless individuals and families to pennanent housing within 24 months and supportive services designed to address the special needs of homeless persons. To address the regional needs of homeless individuals and families, the City of Tustin participates in the Continuum of Care (CoC) program sponsored through the County of Orange. The purpose of the Continuum of Care Homeless Assistance Programs is to fund projects that will fill gaps in locally developed Continuum of Care systems to assist homeless persons to move to self-sufficiency and pennanent housing. An important element of meeting this objective is to fund projects that will meet the Department's goal of ending chronic homelessness. Since the year 2000, the County of Orange has coordinated an "Associated Application" for homeless assistance on behalf of all jurisdictions and agencies in the County of Orange who wished to participate. The County of Orange/Housing and Community Services Department (HCS) is responsible for oversight, planning and coordination of the Continuum of Care Strategy, application process, and project evaluation and prioritization. A Continuum of Care system is developed through a community-wide process involving nonprofit organizations, govemment agencies, other homeless providers, housing developers, services providers, private foundations, neighborhood groups, and homeless or fonnerly homeless persons. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-19 The Orange County Continuum of Care system consists of five basic components: (1) Advocacy on behalf of those who are homeless or at-risk of becoming homeless and to ensure social justice is maintained for all residents regardless of socio-economic status; (2) A system of outreach, assessment, and prevention for determining the needs and conditions of an individual or family who is homeless; (3) Emergency shelters with appropriate supportive services to help ensure that homeless individuals and families receive adequate emergency shelter and referral to necessary service providers or housing finders; (4) Transitional housing with appropriate supportive services to help those homeless individuals and families who are not prepared to make the transition to permanent housing and independent living; and (5) Permanent housing, or permanent supportive housing, to help meet the '- long-term needs of homeless individuals and families. The 2005 Continuum of Care SuperNOFA is designed to fund the following components in the Orange County Continuum of Care system for homeless individuals and families: (1) homeless outreach and assessment, (2) transitional housing and appropriate supportive services, and (3) permanent housing or permanent supportive housing, and 4) HMIS. The remaining components of the Orange County's system of care are funded through a variety of other sources. In conjunction with the CoC, each year, the County of Orange conducts a regional homeless needs assessment. Hundreds of homeless shelters and service providers throughout the County are surveyed to count: -$- Existing inventory of beds and services -$- Number of homeless -$- Homeless demographics -$- Housing Authority "waiting list" statistics -$- Social Services Agency welfare statistics -$- Health Care Agency statistics for homeless -$- Other regional data The City also has developed a strategy to address the following: 1. Helping low-income families avoid becoming homeless. 2. Reaching out to homeless persons and assessing their individual needs. Tustin 2005-2010 Consolidated Plan Section 111- Strategic Plan 111-20 3. 4. Addressing the emergency shelter and transitional housing needs of homeless persons. Helping homeless persons make the transition to permanent housing and independent living. The priority homeless needs table prescribed by HUD prioritizes the needs contained in the four strategies listed above. The City of Tustin will meet these needs of homeless persons and homeless families with children through the following strategies: 1. 2. 3. Continue to refer homeless persons and homeless families with children to service agencies and organizations; Support agencies which provide shelter and other services to the homeless through financial contributions funded through the CDBG Program. Provide for and support the establishment of a homeless accommodation strategy in the reuse of Marine Corps Air Station, Tustin. The City of Tustin has prepared a Reuse/Specific Plan for Marine Corps Air Station (MCAS) Tustin, which was closed July 1999. The Reuse Plan provides the following fundamental guiding principles: a. Coordination and cooperation among the Cities of Tustin and Irvine, support service providers, school districts and advocates forthe homeless should be promoted. b. Creating a program and service system separate from the mainstream is inefficient and not consistent with the concept of breaking the cycle of homelessness. c. Established public and private providers should be used for delivery on-site or off-site (by contracting and visiting, clinical personnel) of certain program and services. This should be the preferred approach and will assist in the streamlining and consolidation of existing programs. d. Linkages with job-training, employment and education should be encouraged. Section III - Strategic Plan Tustin 2005-2010 Consoiidated Plan 111-21 PART D. STRATEGY FOR SPECIAL NEED GROUPS The City of Tustin has analyzed the needs of persons, including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addiction, persons with HIV/AIDS and their families, and public housing residents, who are not homeless but require supportive housing. The housing and supportive needs of the greatest priority fór the City of Tustin are described below: 1. Elderiy/Frall Elderiy: The elderly are in need of case management, meal delivery, transportation and shared housing services. 2. Severe Mental Illness: The City is unable to adequately estimate the needs of this population. individuals. in need of assistance are referred to the Orange County Health Care Agency. 3. Developmentally/Physically Disabled: The individuals are in need of supportive housing that accommodates independent living. 4. Alcohol/Other Drug Addiction: These individuals are in need of supportive housing and services which address individual needs. Persons in need of assistance are referred to the Orange County Health Care Agency. 5. AlDS/HIV: These individuals are in need of supportive housing and services which address individual needs. Currently the AIDS Services Foundation acts as a referral agency for putting persons with AIDS/HIV and their families in contact with appropriate service providers. 6. Public Housing Residents: There are no public housing residents within the City of Tustin. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-22 PART E. NON HOUSING COMMUNITY DEVELOPMENT PLAN The City of Tustin is seeking assistance under the Community Development Block Grant program. Therefore, the Consolidated Plan is required to describe the City's priority non-housing community development needs eligible for assistance under HUD's community development programs by CDBG eligibility category. The needs of families for each type of activity, as appropriate, in temns of dollar amounts estimated to meet the priority need for the type of activity are shown in Table III-C. The non-housing community development needs are categorized in Table III-C as public facility needs, infrastructure improvement, public service needs, accessibility needs, historic preservation needs, economic development needs, other community development needs, and planning. Some of these categories contain specific needs which are listed in the Table. The City has identified the following specific needs with a high priority ranking and has provided a description of the specific need: Youth CAntAI'!'t/SArviI"-A!; Youth Centers have been identified by the community as essential for providing recreational options to area youths. The target area for the CDBG program is severely limited in its park and recreation resources available to area youth desiring to participate in constructive, organized activities. NAighhnrhood Fal"-ilitiA!; Community facilities to serve children, youth, adults are a medium priority for the City of Tustin. As identified under other categories in this section, the number of existing facilities is not adequate to serve the growing population and the changing needs of target area residents. Child CarR Fal"-ilitiA!;/SArviI"-A!; Existing Child Care Facilities and Services affordable to low- and moderate-income families are inadequate to serve the number of families in need in the target area. In addition, the ethnic diversity in this area further complicates the problem. The City identified the need for adequate and affordable Child Care Facilities and Services as a high priority. RAl"-rAation FacilitiA!; The City's CDBG target area was largely planned and developed prior to annexation by the City of Tustin when the area was part of unincorporated Orange County. Therefore, the area is comparatively limited in temns of park and recreational opportunities. The higher population density within the target area also contributes to the need for recreational facilities. As a result, considerable attention has been Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-23 focused on ways to provide additional private and public youth, adult, and senior services and facilities to supplement those which are heavily utilized at this time. The City identified the need for additional recreational facilities and services as a high priority of the community. Street and Sidewalk Improvementsllnfrastructure The majority of the street and sidewalk improvements as well as other types of infrastructure in the target area were constructed more than 25 years ago. Also, some areas were never developed with sidewalks. These facilities have reached the age where they are beginning to deteriorate more rapidly and require reconstruction. The City identified street and sidewalk improvement as a high priority. Senior Services Area senior services are presently provided through the City's full service senior center located in Old Town Tustin. Although the senior center is not geographically distant from the target area, multicultural and economic limitations and barriers may be preventing full participation in the center's programs. Additional services are necessary to target this population. Crime Awareness The target area has become the community's highest priority for crime prevention activities, given the increasing population density and increasing need for police services. The population is a potential target for victim related crime which could be prevented through the implementation of crime awareness programs. Code Enforcement Property maintenance issues are of significant importance to the community as the majority of residential, commercial and industrial structures in the target area are at least 25 years in age. Absentee property owners and declining rent structures have contributed to delayed property maintenance in many cases. Active èode enforcement is needed to ensure that properties are properly maintained in accordance with City standards. Plannina Planning services are needed to administer the CDBG program, to implement the master plan for the MCAS-Tustin property and to provide fair housing assistance. These services are necessary to support the other priorities of the target area. Tustin 2005-2010 Consolidated Plan Section ill- Strategic Plan liI-24 Community Development Objectives The community development component of the Consolidated Plan must state the jurisdiction's specific long-term and shortcterm community development objectives which assist in developing viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for low-income and moderate-income persons. Shott Term Community Development Obiectives: 4) 1) Minimize any adverse economic impacts resulting from the closure of Marine Corps Air Station, Tustin and its conversion from military to civilian use. 2) Support the development of facilities andlor services to serve the children, youth, adults, and seniors of the community, especially in those target areas of greatest need. 3) Promote the improvement of existing infrastructure and the creation of new infrastructure where such infrastructure is nonexistent or completely inadequate, as on the Base property. Direct a comprehensive range of resources, such as concentrated code enforcement, housing assistance, and infrastructure enhancements toward improving the living environment of the City's Southwest Neighborhood. 5) Provide an adequate supply of housing to meet the City's need for a variety of housing types to meet the diverse socio-economic needs of all community residents. Lona Term Community Development Objectives: 1 ) Provide for economic development activities that create jobs, which include job training and career transition assistance related to the closure of Marine Corps Air Station (MCAS), Tustin. 2) Conserve energy resour¡:es through use of available energy technology and conservation practices. 3) Promote, assist, and facilitate the development of emergency and transient shelters through continued support of the County Homeless Assistance Program. Tustin 2005-2010 Consolidated Plan Section 111- Strategic Plan 111-25 4) Promote the dispersion and integration of housing for low-and very-low income families throughout the community as opposed to within any particular geographic area of neighborhood. 5) Conserve, maintain, rehabilitate andlor replace existing housing in neighborhoods which are safe, healthful and attractive. 6) Improve the residential character of the City with an emphasis on revitalizing neighborhoods showing signs of deterioration. 7) Promote conservation of the City's sound housing stock, rehabilitation of deteriorated units where they may exist, and elimination of dilapidated units which endanger the health, safety and well-being of occupants. Ensure equal housing opportunities for all existing and future City residents regardless of race, religion, ethnicity, sex, age, marital status or household composition. 8) Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-26 To meet these objectives, the City of Tustin received applications for the following activities. Program support for its 2005-06 Program Year has been indicated: Table III-C Program Year 2005-06 Community Development Block Grant Program Activities 1. Assessment & Treatment Services Center 2. Big BrotherslBig Sisters of Orange 3. Boys and Girls Club 4. Easter Seals Southern California 5. City of Tustin Parks & Rec. Youth 6. Families Forward 7. Family Solutions 8. Feedback Foundation g. Friendship Shelter 10. Graffiti Removal Program 11. laurel House 12. Mercy House 13. Rebuilding Together of O.C. 14. Serenity Recovery Center 15. THINK Together 16. Tustin Area Historical Society 17. Women Transitional Living Center Total Public Services Activities (max $138,558) 18. Sycamore Avenue Sidewalk 19. EI Camino landscaping 20. Walnut Avenue Sidewalk 21. Pasadena Storm Drain 22. Williams Avenue Sidewalk 23. Sycamore Gardens ROW Total Public Facilities and Improvements Requested In-House Citizen Amount Committee's Participation Recommendation Committee $15,000 $15,000 $15,000 $5,000 $5,000 $5,000 $25,000 $25,000 $25,000 $ 15,000 $0 $0 $66,647 $34,558 $34,558 $5,000 $0 $0 $25,000 $0 $0 $25.000 $25,000 $25,000 $1,250 $0 $0 $20,000 $20,000 $20,000 $20.000 $4,000 $4,000 $6.000 $0 $0 $6,000 $0 $0 $50,000 $0 $0 $10,000 $0 $0 $7,200 $0 $0 $10,000 $10,000 $10,000 $312,097 $138,558 $138,558 $45,000 $45,000 $45,000 $100,000 $100,000 $100,000 $110,000 $110,000 $110,000 $100,000 $100,000 $100,000 $75,000 $75.000 $75,000 $250,000 $199.887 $199,887 $680,000 $629,887 $629,887 24. Code Enforcement Total Rehabilitation and Preservation 111-27 PART F. BARRIERS TO AFFORDABLE HOUSING In order to meet the affordable housing assistance goals and objectives of the Consolidated Plan, the City of Tustin has adopted indirect assistance programs that can be provided to address negative affects that are created by the various barriers to affordable housing which are discussed in Section II. The following summarizes the types of programs the City of Tustin has incorporated into its Housing Element. Secondary Residential Units Provide opportunities for affordable granny flats and secondary residential units on lots within the City's Single-Family Residential Districts through existing Zoning Ordinance provisions. Deed Restrictions Require appropriate deed restrictions to ensure continued affordability for low- and moderate-income housing constructed or rehabilitated with the assistance of any public or Redevelopment Agency funds as may be legally required by the use of such funds. Fees. Exactions. and Permit Procedures Consider waiving or modifying various fees or exactions normally required where such waiver will reduce the affordability gap associated with providing housing Of the elderly and for low-income households. Environmental Constraints Continue to alleviate the necessity of delays in processing, and mitigating requirements incorporated into the development plans by requiring program environmental impact reports (EIR) on all major development projects. A program EIR was developed for the East Tustin Specific Plan. P~aøøHcationConÆrences Utilize procedures for pre-application conferences and processing procedures to expedite permit processing. Shared-Housina Continue to provide coordination and support to a home sharing program funded in part by the Feedback Foundation, Inc. as part of the TLC (Transportation Lunch and Counseling) and the Orange County Housing Authority. Tustin 2005-2010 Consolidated Plan Section 111- Strategic Plan 111-28 Permit Processing and Coordination Ensure that processing of permits for low- and moderate-income housing are fast-tracked with low-and moderate-income housing pennits being given priority over other permit applications. Continue the services of the City's Community Development Department as a central clearinghouse with individuals assigned the responsibility of expediting development permits required from various departments and agencies. Rental Assistance Encourage the availability of Section 8 rental assistance certificates and voucher certificate programs assistance funds through the Orange County Housing Authority. To encourage the maintenance of existing and establishment of new certificates, support the County's efforts to obtain continued Federal funding. Recvcling Single-Family Uses in R-3 Zones into Multiø/e-Familv Units Continue to encourage developers to consolidate individual lots into larger cohesive development. Density bonuses may be considered as an incentive to consolidate lots. Housing Referral Program Continue to provide housing referral services to families in need of housing assistance and information. The Police Department refers homeless people to different agencies which provide shelters and food for various segments of the population. The Parks and Recreation Department provides housing infonnation and social service information to the senior citizen population. The Community Development Department provides housing and social service infonnation to all segments of the population during regular City Hall business hours. This Department also serves as a clearinghouse for the Community Development Block Grant Program and represents the City at Housing Authority and OCHA Advisory Committee Meetings. Zoning Studies Continue to initiate studies to consider new programs to encourage and promote affordable housing. These studies include: 1) Potential for creating mixed-use zones; 2) incorporate mandatory inclusion of affordable housing policies in the zoning provisions for housing units developed by the Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 11i-29 Redevelopment Agency or by other public/private entities; and 3) consider relaxation of certain development standards and incentives that could be provided for projects which include affordable housing. Densitv Bonus Proaram The City of Tustin adopted the Density Bonus ordinance in November 1999, and updated it in September 2003. Applicants under State law may file for a 25 percent density bonus plus one additional incentive when projects incorporate 20 percent of units for lower income households (with rents not to exceed 30 percent of 60 percent of area median income); 10 percent of units for very low-income households (with rents not to exceed 30 percent of 50 percent of area median income); 50 percent of units for senior citizens, or 20 percent for units in a qualified condo project. With the recent enactment of SB 1818 which revised the State's density bonus law further; the City will be modifying its current Density Bonus Ordinance to reflect the new State Law. Mixed-Use Zonina and Desian Flexibilitv The City has adopted Planned Community Districts and Specific Plans which authorize and encourage mixed-use developments and provide for flexibility and innovative approaches in design. The use of the Planned Community zoning has resulted in use of zero-lot line configuration and clustered developments which help to reduce development costs and make housing more affordable. Secondarv Residential Units The City of Tustin has implemented the requirements of AB 1866 (Section 65852) provides that after July 1, 2003, the permit process for second units is ministerial, which means without a public hearing or discretionary approval. Local governments will be required to implement a process for second units (similar to the process for obtaining a permit for a room addition) in which the applicant is entitled to the permit if he or she complies with local standards -- eliminating the need for time-consuming, costly public hearings. Condominium Conversion The City has a condominium conversion ordinance requiring developers converting apartments to condominiums to process a use permit, provide relocation assistance, and/or to provide incentives and assistance for purchase of the units by lower-income households. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-30 Fair Housina The Orange County Fair Housing Council provides services to the City of Tustin to assure equal housing opportunities within the City. The Fair Housing Council of Orange County also provides case management, tenant/landlord dispute resolution as well as housing discrimination services. Housina Authority The City contracts with the Orange County Housing Authority (OCHA) for the development and operation of federally assisted low and moderate-income housing program. Article 34 Election A referendum election was conducted in June, 1980, which authorized public housing for senior and lower income households in Tustin, subject to certain conditions. Tax Increment Financina: The SouthlCentral and Town Center Redevelopment Projects provide for a 20 percent set-aside of tax increments to assist in providing housing accommodations for low-moderate income families. Housing projects for low- moderate income units proposed in these areas may apply for financial assistance through the agency for these set-aside funds. Tustin 2005-2010 Consolidated Plan Section 111- Strategic Plan 111-31 PART G. LEAD-BASED PAINT HAZARD REDUCTION This section outlines the City's actions proposed to be undertaken to evaluate and reduce lead-based paint hazards, and describes how lead-based paint hazard reduction will be integrated into housing policies and programs. As a result of the preliminary analysis prepared in Section I and Section II, and without conducting a formal survey, there does not appear to be a great number of housing units at risk of Lead-Based Paint (LBP) hazard. However, in order to comply with Title X of the Housing and Community Development Act of 1992, the City will implement into its housing policies over the next five years the following: -$- Include lead-based paint hazard reduction as an eligible activity in rehabilitation programs. -$- Review existing regulations, housing and rehabilitation codes to assure lead-based paint hazard reduction is incorporated. -$- Require testing and hazard reduction in conjunction with rehabilitation. -$- Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-32 PART H. ANTI-POVERTY STRATEGY The City of Tustin does not have a formally adopted Anti-Poverty Strategy. However, the City's Housing Element includes several goals, policies and programs designed to provide adequate, safe and affordable housing for all segments of the population. Five of the six goals within the Housing Element deal with ensuring that housing is affordable to all segments of the City's population. The City has adopted corresponding policies and programs to implement the strategies. The following discussions are excerpts from the City's Housing Element. Tustin is and will continue to be home to persons requiring a variety of housing options. At different stages in their lives, people require different housing arrangements. Additionally, the City must respond to the housing needs of all economic segments of community and ensure that housing discrimination does not serve as a barrier to housing in Tustin. It is also important that the City maintain a balance of housing types and that the City's housing stock is not overly skewed towards the provision of one type of housing. Finally, the continuing need for low income housing in the region requires the City attempt to preserve low-income housing units that are at risk of converting to other uses. Goal 1: Provide an adequate supply of housing to meet the need for a variety of housing types to meet the diverse socia-economic needs of all community residents. Policy 1.2: Provide for new affordable housing opportunities through acquisition and rehabilitation. Policy 1.3: Preserve affordable housing units in the City, wherever possible, through actions such as the maintenance of a mobile home park zone, restrictions on R-3 zone uses, facilitating resident access to funding sources for low income housing, and preservation of 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 or neighborhood. Policy 1.5: Encourage the County of Orange to exercise its responsibilities for housing accommodations for low- and very-low income families within its jurisdiction in Tustin's sphere of influence. Policy 1.10: Promote cluster housing within the land use density standards of the General Plan for the purpose of reducing costs of housing construction. Policy 1.11: Promote the availability of affordable housing for large, low- income families. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-33 Policy 1.12: Encourage incentives to assist in the development of affordable housing such as 1) reducing permit processing time and waiving or reducing applicable permit fees; 2) on-site density bonuses when appropriate; 3) tax- exempt financing; 4) flexibility in zoning or development standards. Policy 1.15: Promote, assist, and facilitate the development of emergency and transient shelters through continued support of the County Homeless Assistance Program. Policy 1.16: Encourage the provision of grants, donations, and technical assistance to various organizations and agencies who provide assistance to persons with special needs such as the homeless, handicapped, low-income, and elderly persons. Policy 1.17: Participate in federal and state housing assistance and rehabilitation programs aimed at assisting households in need. Policy 1.19: Develop incentives to encourage non-profit and other for-profit private sector interests to use available federal and state programs for new or rehabilitated affordable housing. Policy 1.20: 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. Policy 2.1: community. Promote equal opportunity housing programs within the Policy 2.2: Provide active support and participation with the Orange County Fair Housing Board to provide fair housing opportunities. Policy 2.3: Support the South County Senior Services Homesharing Program 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 fonnns of discrimination in housing. Policy 2.5: Reduce the isolation of income and ethniclracial grouping in the City through promotion of citizen interaction and encourage provision of expanded economic opportunities. Tustin 2005-2010 Consolidated Plan Section Iii - Strategic Plan ill-34 Policy 2,6: Minimize displacement of lower income and special needs households, whenever possible and, where necessary, to ensure that displacement is carried out in an equitable manner. Goal 3:Ensure a reasonable balance of rental and owner-occupied housing within the City. Policy 3.1: Encourage new housing construction for homeownership in a mixture of price ranges. Policy 3.2: The Redevelopment Agency shall explore provision of favorable home purchasing options to low and moderate-income households, such as interest rate write-downs, down payment assistance, mortgage credits, and mortgage revenue bond financing. Policy 3.3: Encourage alternative forms of homeownership, such as shared equity ownership and limited equity cooperatives. Goal 4:Preserve the existing supply of affordable housing in the City. Policy 4.1: Continue to use Federal and State housing subsidies available for low-income families. Policy 4.2: Identify on an ongoing basis all federal, state and local funds available to preserve andlor replace lower income units at risk of converting to non-lower income housing, including redevelopment tax increment funds. Policy 4.3: Assist non-profit organizations in securing the resources necessary to preserve andlor replace lower income units at risk of converting to non-lower income housing. Policy 4.4: Consider incentives to non-profit housing and for-profit private sector interests to purchase andlor maintain lower income units at risk of converting to non-lower income housing. Goal 5:Conserve, maintain, rehabilitate andlor 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. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-35 Po/icv 5.1: Through available financial incentives, encourage owners of rental housing units which are determined to be substandard, in need of repair and a hazard to the health and safety of the occupants to remove and replace or rehabilitate the structures. Policv 5.2: Advertise and promote the availability of funds for the rehabilitation of single-family dwellings, mobile homes and apartments. Policv 5.3: Periodically evaluate housing conditions in the City and, when appropriate, seek an increase in state and federal rehabilitation funds to address any increase in deteriorated housing conditions. Po/icv 5.4: Continue tD enforce health, safety, and zoning codes to eliminate conditions which are detrimental to the health, safety and general welfare of residents. From the above Housing Goals and Policies, the City has developed a number of programs to implement the strategies including: -+ Maintenance of the City's Mobile Home Park Zone -+ Provide incentives for condominium conversion including incentives and assistance for purchase of the units by low- and moderate-income households. -+ The Tustin CRA shall comply with replacement housing requirements when demolished according the Califomia Redevelopment Law. -+ Protect tenant rights by encouraging the continuation of contracts, with the Fair Housing Agency. -+ Require the appropriate deed restrictions to ensure affordability of units. -+ Continue to enforce building and housing codes and notify property owners of deficiencies. -+ Continue to utilize pre-application processing. -+ Allocate CDBG and Redevelopment Agency funds in target areas for rehabilitation. -+ Contract with OCHA for federally assisted housing including Section 8 programs. Tustin 2005-2010 Consolidated Plan Section 111- Strategic Plan 111-36 -$- Utilize Housing Set-Aside Funds to provide housing accommodations for low- and moderate-income households. -$- Encourage the construction of housing units that provide the opportunity to expand habitable area for families. ' -$- Continue to provide housing referral services. -$- Preserve existing assisted housing stock. Tustin 2005.2010 Consolidated Plan Section III . Strategic Plan 111.37 PART I. INSTITUTIONAL STRUCTURE AND INTERGOVERNMENTAL COOPERATION 1. Description This section identifies the institutional structure through which the City of Tustin carries out its housing and community development plan. Each organization comprising the institutional structure is identified by type and purpose. A description of each organization's respective role and responsibilities in carrying out the strategy, including implementation of specific programs and the relationships among organizations is discussed. a. Public Institutions City of Tustin Community Redeve/o"ment Aaencv The Agency is comprised of the City Council members, retaining the City Manager as the Executive Director and the Assistant City Manager as the Assistant Executive Director. The Tustin Community Redevelopment Agency was created in 1976 and is made up of members of the Tustin City council who are elected at large by popular vote. Provisions of State law enable the Agency to undertake community projects designed to improve certain areas within the City which have suffered economic decline. Deterioration of improvements, or which have been unable to attract and promote new private investments to enhance the quality of life in the area. The Agency is responsible for setting the course of redevelopment in Tustin and for being sure that redevelopment plans are in the best interests of the Community. In directing the City Redevelopment activities, State law provides the Agency with broad governmental functions and authority to accomplish its purpose, including but not limited to: the right to issue bonds for authorized purposes and to expend their proceeds, and the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency may also demolish buildings, clear land, and cause construction of improvements including streets and sidewalks. The Tustin Community Redevelopment Agency receives no Federal or State funds, nor does it levy a tax on a redevelopment project area. Instead, its primary revenue is "tax increment." When a redevelopment project area is created, the assessed valuations in the area from which governmental taxing agencies receive property tax revenue are frozen. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111.38 As a redevelopment plan is implemented, new development and inflation results in increases in property values within the redevelopment project area. The Agency receives one percent of the annual incremental increases in the assessed value of the improvements above the frozen valuation when the project area was formed. These revenues are called "tax increment" and it is these funds which must be used for redevelopment improvements within the project area (and for projects adopted after 1994) certain payments to taxing agencies. These revenues cannot generally be used for general funded governmental purposes. The goals for the Agency are: -$- Rejuvenate dilapidated areas -$- Stimulate private investment -$- Strengthen the City's financial base including sales tax and - property taxes -$- Improve public facilities -$- Create jobs Consistent with these goals, the Agency is actively involved in many projects and programs. A few of these include: -$- Housing Programs -$- Commercial Rehabilitation Programs -$- Business Outreach Retention and Attraction Programs -$- Capital Improvement Projects In Tustin there are currently three redevelopment project areas. A description of each area follows: Tustin 2005-2010 Consolidated Plan Section 111- Strategic Plan 111-39 Town Center Project Area The Town Center project Area, established in 1976, encompasses approximately 360 acres in the center of the City of Tustin which includes historic Old Town and the Civic Center complex and all the commercial properties within the central city. The project area has already seen a number of major development projects including new retail, office, residential and public improvement efforts. South Central Project Area The South Central Project Area encompasses approximately 370 acres and is generally that are bounded by Edinger Avenue, Red Hill Avenue, Valencia Street and the Costa Mesa (SR-55) and Santa Ana (1-5) Freeways and Newport Avenue. Portions of the area lack right-of-way improvements such as street lights, sidewalks, adequate street capacity ang circulation. The City adopted the Pacific Center Specific Plan (located in this area) which will provide for an extension of Newport Avenue and much needed improvements to the SR-55 Freeway off-ramp at Edinger Avenue. The project will include office, hotel and limited commercial uses. MCAS-Tustin Project Area The MCAS-Tustin Project Area is approximately 1600 acres in size. The project area encompasses the former Marine Corps Air Station and an area 52 acres in size immediately adjacent to the base, at the northwest corner of Edinger Avenue and Jamboree Road. City of Tustin (SU1J1Jort Staff) There are four City Departments that coordinate with each other to deliver housing and supportive housing services. They are the Community Development Department, which administers the planning and development related programs and coordinates with other Departments as needed; the Public Works/Engineering Department which implements supportive public works projects; the Parks and Recreation Department which coordinates services to seniors as well as City-wide community, social and recreational services; and the Finance Department which is responsible for the accounting and auditing. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan ill-40 The Community Development Department is comprised of the Current Planning Division, Advance Planning Division, and Building Division. All of these divisions work with each other in delivering development related services to the community. The Current Planning and Building Divisions are primarily engaged with the development processing, plan check review and permit issuance of new construction and rehabilitation projects. The Advance Planning Division which includes Code Enforcement perfomns the long range and short range planning for housing activities coordinating and administering use of the City's CDBG program funds. With the City's establishment of its own Housing Rehabilitation Program utilizing the Tustin CRA Housing Set-Aside Funds, the Redevelopment Agency is responsible for coordinating with Current and Advance Planning Division on affordable housing projects. U. S. Deoartment of Housina and Urban Deve/ooment (HUDJ HUD is the primary Federal housing and development agency acting as the City's liaison for information sources, funding sources and providing technical assistance to City staff in carrying out affordable housing activities. California Deoartment of Housina and Community Deve/oøment HCDJ HCD is the primary State housing and development agency acting as an information and funding resource for all State administered programs available to carry out affordable housing activities. Oranae County Housina Authority (OCHAJ The City contracts with the Authority for administration of the Section 8 certificate and voucher programs. The City makes referrals to OCHA for those residents requiring rental assistance. b. Nonprofit Organizations In preparing the City's CDBG program application, the City has advertised the availability of funds and has sought community input. The names and addresses of those groups which have been contacted through this process are provided in Appendix D. These nonprofit groups have used funds received through the process to further the City's housing and community development objectives. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-41 2. Overcoming Gaps a. Assessment - This section assesses the capacity of the institutional structure described above through which the City of Tustin will carry out its affordable and supportive housing strategy. In its current configuration, the City's institutional structure is well balance in offering opportunities to various agencies and organizations. The City actively encourages a system for sharing resources and information through net working with other organizations such as federal, state, county and local non-profit agencies. b. Actions - The section describes the actions to be taken over the coming five years, to eliminate the gaps that have been identified in the City's service delivery system and to strengthen, coordinate, and integrate this institutional structure and its component parts. The City of Tustin overcomes its largest gap in delivery of programs with its recognition as an entitlement City. This enables the City to implement programs that previously went un-funded or under-funded. The program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons. A grantee may also carry out activities which aid in the prevention or elimination of slums or blight. Additionally, grantees may fund activities when the grantee certifies that the activities meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet these broad national objectives. Tustin 2005-2010 Consolidated Plan Section 111- Strategic Plan 111-42 CDBG funds may be used for activities which include, but are not limited to: . Acquisition of real property; . Relocation and demolition; . Rehabilitation of residential and non-residential structures; . Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes; . Public services, within certain limits; . Activities relating to energy conservation and renewable energy resources; and . Provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities. HUD determines the amount of each entitlement grant by a statutory dual formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan ill-43 PART J. COORDINATION Coordination between the City of Tustin, public and assisted housing providers, private and governmental health, mental health, and service agencies is enhanced through activities such as developing productive working relationships with these agencies, soliciting input through the public participation process, and seeking professional advice and input from these agencies. The City of Tustin coordinates with the appropriate County and State offices by referral as required, specifically for housing in any types of residential care facilities where six or fewer persons are residing, as stipulated in State laws. Additionally, the City of Tustin maintains a listing of the entire County and State inventory of licensed facilities providing supportive housing and acquires updates as necessary from the State's Community Care Licensing - Residential Division Office located in Santa Ana. Referrals are also made to the Orange County Public Housing Authority for persons of lower incomes with special needs who are requesting affordable housing. Section 111- Strategic Plan Tustin 2005-2010 Consolidated Plan 111-44 PART K. PUBLIC HOUSING RESIDENT INITIATIVES The Consolidated Plan must describe the jurisdiction's activities to encourage public housing residents to become more involved in management and participate in homeownership. The City of Tustin does not have any public housing projects as defined by HUD. Tustin 2005-2010 Consolidated Plan Section III - Strategic Plan 111-45 EXECUTIVE SUMMARY Background The Consolidated Plan for the City of Tustin, a five-year planning document, identifies the City's overall housing and community development needs and outlines a strategy to address those needs for Jow- and moderate-income persons and families. One section of the Consolidated Plan, called the Action Plan, details a community's specific use of funds for one grant year. An Action Plan is required annually for each of the five years covered by the Consolidated Plan. Programs and projects indicated in the Action Plan address needs identified in the Consolidated Plan. Organi7ation of the FY 2005.08 Action Plan The City of Tustin Action Plan for Fiscal Year 2005-06 contains all Federally required sections. Those include: -$- Standard Form 424 -$- Housing and Community Development Resources - A description of available and potential private and public funding sources. -$- Activities to be Undertaken - A description of community needs indicated in the Consolidated Plan and a list of projects and programs funded with 2005- 06 CDBG funds allocated to the City of Tustin. -$- Geographic Distribution - Maps indicating eligible areas for CDBG funded projects and a map showing the location of projects funded with Fiscal Year 2005-06 CDBG monies. -$- Homeless and Other Special Needs - A description of Fiscal Year 2005-06 activities targeting the needs of the homeless. -$- Other Actions - A description of actions the City of Tustin will undertake to meet underserved needs. -$- Specific Program Requirements - A description of CDBG funds expected to be available during the 2005-06 program year. -$- Certifications and Miscellaneous - HUD required certifications and assurances. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-1 One-Year Use of Funds The City of Tustin has allocated CDBG funds to a variety of eligible projects to meet community housing and non-housing needs. For Fiscal Year 2005-06 the City of Tustin will receive $923,725 of CDBG funds through the U.S. Department of Housing and Urban Development. The following is a listing of all activities that will be funded for FY 2005-06: Public Services Activities Tustin Parks and Recreation Department (Youth Coordinator) Graffiti Removal - CDBG target areas $ 34,558 $ 20,000 Feedback Foundation, Inc. Boys and Girls Club $ 25,000 $ 25,000 Laurel House $ 4,000 $ 5,000 Big BrotherslBig Sisters of Orange County Public Services Subtotal $ 15,000 $138,558 Assessment and Treatment Services Center Public Facilities and Improvements Sycamore Avenue Sidewalk $ 45,000 $100,000 EI Camino Landscaping Walnut Avenue Sidewalk $110,000 Pasadena Storm Drain $100,000 Williams Avenue Sidewalk $ 75,000 Sycamore Gardens ROW $199.887 Public Facilities and Improvements Subtotal $629,887 Rehabilitation and Preservation Activities Code Enforcement $ 71,800 Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-2 Program Administration and Planning Activities Fair Housing Counseling Agency CDBG Program Administration Administration & Planning Subtotal Grand Total for all Activities $ 18,480 s; 65000 $ 83,480 !tQ'~ 7'!; Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV.3 ACTION PLAN: ONE-YEAR USE OF FUNDS The Action Plan delineates the City of Tustin's funding priorities and allocations for the use of Program Year 2005-06 Community Development Block Grant (CDBG) funds. The Plan describes: the resources available for program implementation; activities to be undertaken during the year; programs for the City's homeless and other special needs groups; and, other actions taken by the City that have or will be undertaken to implement the Action Plan. A. Form Application Standard Form 424 is attached. Tustin 2005.2010 Consolidated Plan Section IV - Action Plan IV.4 FEDERAL ASSISTANCE 2. DATE SUBMITTED Applicant Identifier 1. TYPE OF SUBMISSION: 3. DATE RECEIVED BY STATE State Application Identifier Application 1 Pre-applicatlon 0 Conslruçtlon bf Construction 4. DATE RECEIVED BY FEDERAL AGENCY Federal Identifier 'ñ NonoConslrucllon In Non.Cftns"uctlon 5. APPLICANT INFORMATION Legal Name: OManlzational Unit: City ofTustin Department: Community Development Department ~*~~~:g~nal DUNS: Division: Planning Address: Nama and telephone number of person 10 be conleçted on matters S_t: Involving this application (give area code) 300 Centannial Way Prefix: Ij~~~:me: 714-573-3174 City: Middle Name Tustin L. County: Last Name Orange Willkom Stata: IzJ~~e Suffix: CA Country: Em.lI: U.SA jwillkom@tustlnca,org 6. EMPLOYER IDENTIFICATION NUMBER (E/N): Phone Numbar (oi,e ar.. code) I Fax Numbar (o"e area coda) ~@]-~~[Q][Q]@][Q]~ 714-573-3174 714-573-3113 8. TYPE OF APPLICATION: 7. TYPE OF APPLICANT: (Sea back of form for Application Types) 121 New ID Contlnuallon [J Revision Municipal If Revision. anter appropriate lettar(s) in box(es) Other (specify) (Sae back of form for description of letters.) 0 0 Other (spacify) 9. NAME OF FEDERAL AGENCY: U.S. Department of Housing and Urban Development 10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: 11. DESCRlPTIVEMLE OF APPLICANT'S PROJECT: lÐŒ-[]lÐŒJ Community Devalopment Block Grant Program Year 2005-06 TITLE (Name of Program): 12. AREAS AFFECTED BY PROJECT (Cmes. Counties. States. etc.): City ofTustin 13. PROPOSED PROJECT 14. CONGRESSIONAL DISTRICTS OF: Start Date: I ~nding Date: a. Applicant I b. Project 07-01-05 06-30-05 48th 46th 15. ESTIMATED FUNDING: ~~'ci~:i:3~~~~g~~~~~ECT TO REVIEW BY STATE EXECUTIVE a. Fadaral a Yes. 0 ¡~~¡j,~~t;6-I~~I~~Á~~~~~~~~:~~D~DI~372 923.725 b. Applicant :'" PROCESS FOR REVIEW ON c, Stata DATE: d. Local b. ND, [OJ PROGRAM IS NOT COVERED BY E. O. 12372 a, Other D ?~:~~~~M HAS NOT BEEN SELECTED BY STATE f. Program Income 17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? g. TOTAL DYas f"Yes" attach an explanation. [J No 16. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPLICATIONIPREAPPLICATION ARE TRUE AND CORRECT. THE OCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE TTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED. .A h ri Iv Prefix I~~~:me Middla Name A. Last Name uffix Blnsack b. Title . Talephone Numbar (ol'e arBa code) Community Devalopment Director 714-573-3031 . Signature of Authorized Rapresentative , Data Signad APPLICATION FOR Previous Edition Usable Authorized for Local Reoroduction Version 7/03 Standard Form 424 (Rev.9-2003) Prescribed bv OMB Circular A-102 B. Resources There are numerous potential sources of funding which might enable the City of Tustin to address priority housing and community development needs and specific objectives identified in the Strategic Plan component of the Consolidated Plan. However, actual financial resources currently available to the City are somewhat limited. A variety of resources must be used to attain the City's goals and objectives, described in the Consolidated Plan. Throughout the fiscal year, the City will continue to pursue additional funding opportunities. The City's goal is to leverage, to the maximum extent feasible, the use of available Federal, State, and local funds with private monies in the creation of viable communities, development of affordable housing, and the maintenance and preservation of existing housing. To ensure the financial feasibility of a project, the City will consider the use of funds from other sources, such as Redevelopment Housing' Set-Aside Funds, to further affordable housing and community development goals whenever a match, grant, or loan is necessary or appropriate. The following resources are anticipated to be available for the 2005-06 fiscal year: Tustin 2005-2010 Consolidated Plan Section IV - Action Plan iV-6 TABLE 1 PUBLIC AND PRIVATE RESOURCES FISCAL YEAR 2005-06 HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES Program Name a. Formula! Entitlement Community Development Block Grant (CDBG) 2005-06 Funding - $923,725 Grants awarded to the City on a formula basis for housing and community development activities. Mortgage Credit Certificate (MCC) Program Income tax credits available to first-time homebuyers for the purchase of new or existing housing. Local agencies (County) make certificates available. b. Competitive Programs McKinney Act Supportive Housing Program (SHP) Grants to develop supportive housing and services that will enable homeless people to live as independently as possible. . Acquisition . Rehabilitation . Economic Deveiopment . Homeless Assistance . Public Services . Public Improvementsl Facilities . Code Enforcement . Planning . Home Buyer Assistance . Transitional housing . Permanent Housing for homeless with disabilities . Supportive Services such as child care, empioyment assistance, outpatient services for the homeless Tustin 2005-2010 Consolidated Plan Section iV - Action Plan IV-? Program Type Program Name Description Eligible Activities Tustin Redevelopment Agency Housing Set- Aside a. Homebuyer Program b. Multi-Family Residential Rehab - Loan/Grant Program Funding c. Single-Family Residential Rehab - Loan/Grant Program Funding d. New Housing Construction e. Business Development Assistance 20 percent of Agency funds are set aside for affordable housing activities governed by State law. Low Interest Rate and Downpayment Assistance. Assistance to owners of multi-family projects occupied by low- and moderate-income persons. Assistance to low- and moderate-income owners occupying Single-family dwellings. Financial Assistance for new affordable housing project Assistance to promote the development of new businesses. . Acquisition . Rehabilitation . New Construction . Homebuyer . Rehabilitation . Rehabilitation . New Construction . Business start-up assistance . Technical assistance . Site locating & space planning Tustin 2005-2010 Consolidated Plan Section IV - Action Plan iV-8 Program Type Program Name Description Eligible Activities f. Business Financing Financial assistance and . Property acquisition Assistance incentives to promote . On-site and off-site business growth improvements . Industrial development bonds . Tax increment financing . Micro loans g. Employment Assistance focused on . Employee home Assistance the hiring and retention of purchase or rental employees. programs . Technical assistance Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-9 TABLE 2 PUBLIC AND PRIVATE RESOURCES FISCAL YEAR 2005-06 HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES a. Formulal Housing Opportunities for Persons with AIDS (HOPWA) Entitlement and Competitive Grants for Housing Assistance and Supportive Services for PWAs. Grants are awarded to the region on a formula basis and administered by County. Entitlement HOME Flexible grant program awarded to the City on a formula basis for housing activities. b. Competitive Programs HOPE Home ownership assistance awarded on a competitive basis, requires non-Federal matching funds. Emergency Shelter Grants (ESG) Grants to improve quality of existing shelters/increase number of new shelters for the homeless. Funds are . Acquisition . Rehabilitation . Supportive Services . Acquisition . Rehabilitation . Home Buyer Assistance . Rental Assistance . Public Housing Ownership (HOPE1) . Home Ownership of Multi-Family Units (HOPE 2) . Home Ownership for Single-Family Homes (HOPE 3) . Homeless Assistance (Acquisition, New Construction, Tustin 2005-2010 Consolidated Plan Section IV - Action Plan tV-10 Program Program Name Description Eligible Type Activities awarded to local non profits Rehabilitation, through the State/county. Conversion, Support Services) Supportive Housing Assistance for transitional . Acquisition Program (SHP) housing for homeless . Rehabilitation individuals and families and . New permanent housing for Construction handicapped homeless. . Operating Costs . Supportive Services Shelter Plus Care Supportive housing and . Rental Program (S+C) services for persons with Assistance disabilities - Grants for rental assistance offered with support services to homeless with disabilities and disabled households. Section 8 Moderate Funds for rehabilitating . Rehabilitation Rehabilitation single room units within a . New Single Room building of up to 100 units. Construction Occupancy The provision of supportive program (SRO services is optional. Section 8). Section 8 Rental assistance payments . Rental Rental Assistance to owners of private market Assistance Program rate units on behalf of very low- income tenants. Administered by County Housing Authority. Section 202 Supportive Housing for the . Acquisition Elderly - Grants to nonprofit . Rehabilitation Tustin 2005-2010 Consolidated Plan Section iV - Action Plan IV-11 Program T pe Program Name Section 811 Section 108 Small Projects Processing (SPP) - (221(d)(4) and 223(1)) Description Eligible Activities New Construction Rental Assistance Support Services developers of supportive housing for the elderly. Grants to nonprofit developers of supportive housing for persons with disabilities, including group homes, independent living facilities and intermediate care facilities. Acquisition Rehabilitation New Construction Rental Assistance Loan guarantee that provides community with financing for economic development projects. Acquisition Rehabiiitation New Construction Economic Development Activities Mortgage Insurance program for small multi- family new construction or substantial rehabilitation (221 (d)(4)) and small multi- family rehabilitation (223(1)). Acquisition Rehabiiitation New Construction Economic Development Activities California Tax Credit Allocation Committee (CTCAC) Allocation of Federal and State Low-income Housing Tax Credit New Construction Acquisition and Rehabilitation Tax credits for the deveiopment and ownership of low-income rental housin Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-12 Program Program Name Description Eligible Type Activities California Debt Allocation of private activity . Mortgage Credit Limit Allocation bond (tax-exempt mortgage Certificate (MCC) Committee revenue bond) to single- (CDLAC) family housing, multi-family . Multi-family rental housing, student private mortgage . Single-family loans, and economic revenue bond Mortgage Tax development. Credit . Multi-Family rental housing acquisition. construction or rehabilitation - California Department of Housing and Community Development (HCD) low Interest ioan for multi- . Acquisition a. Multi-family family housing rehabilitation . land lease Housing Program or acquisition, or payment (MHP) rehabilitation and . Rehabilitation acquisition. . New Construction FMTW provides limited term . New Construction b. Families Moving housing assistance . Rehabilitation to Work (FMTW) combined with case management, employment services, child care and other supportive services to weifare recipients. c. California Self Grants, loans and mortgage . Rehabilitation Help Housing assistance to low- and . New Construction Program (CSHHP) moderate-income families improving property with their own labor. Section IV - Action Plan Tustin 2005-2010 Consolidated Plan IV-13 Program Program Name Description Eligible Type Activities d. Pre-development Loans for Pre-development . Acquisition Loan Program costs or "seed" money to . Pre-development (PLP) - Urban and nonprofit corporations and Costs Rural local governments. e. Employee Construction, maintenance, . Employee Housing use, and occupancy of Housing of five or privately owned and more employees operated employee housing facilities. California Housing Finance Agency (CHFA): - a. HELP Program HELP program provides . Acquisition unsecured loan for . Rehabilitation affordable housing projects. . Infill . Code Enforcement b. Proposition 1A SFFRP provides . New School Facility reimbursement of school Construction Reimbursement facility fees to developers Program (SFFRP) who restrict units for affordable housing for 55 years. c. Special Needs Low interest loans for . New Loan Program housing construction for Construction individuals and families with special needs. d. First-time Low interest and down- . First-time Homebuyer payment program for low to Homebuyers Program moderate-income first-time homebuyers. e. Multi-family . Acquisition Financing Permanent financing for . New new construction, Construction acquisition/rehabilitation, . Acquisition/ and acquisition of multi- rehabilitation family projects. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-14 Program Type Program Name California State Infrastructure and Economic Development Bank (CIB) Description Eligible Activities Loans to local government agencies to improve public infrastructure to promote economic development. Infrastructure Improvements Rental Housing Program Mortgage Credit Certificate Program Financial assistance for affordable multi-family rental projects. Acquisition Acquisition and Rehabilitation New Construction Tax credit for First-time Homebuyers First-time Homebuyer Assistance Federal National Mortgage Association (Fannie Mae): Loan applicants apply to participating lenders for the following programs: 1. Single-family Community Lending a. Community Home Buyers Program (CHBP) . Homebuyer Assistance CHBP offers 5 percent down-payment mortgages with 33/38 debt to income ratios to homebuyers earning no more than 100 percent of the area median income. . Homebuyer Assistance Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-15 Program Program Name Description Eligible Tvpe Activities 3/2 offers 3 percent . Homebuyer down payment with 2 Assi.stance b. 3/2 Option percent gift from family member, grant, or unsecured loan. Low Down-Payment . Homebuyer Mortgages for Single-family Assistance c. Fannie Homes in under-served low- Neighbors income and minority communities. Loans up to 97 percent with . Homebuyer undelWriting ratio of 33/36 Assistance d. Fannie 97 for 25 years or 28/36 for 30 year terms. Second-lien mortgage and . Homebuyer low down payment for the Assistance e. Community qualified borrowers. Seconds Loans up to 97 percent with . Homebuyer liberal debt ratio of 33/41 to Assistance f. Flexible 97 homebuyers with limited savings. 2. Single-family Rehabilitation Loans Loans up to 90 percent of . Homebuyer the "as completed value." Assistance a. Home Style Standard Mortgage b. Home Style Mortgages which fund the . Homebuyer Community Home purchase and rehabilitation Assistance' Mortgage of a home. . Rehabilitation Improvement Program 3. Multi-family Fannie Mae purchases first . Multi-family lien mortgages for Affordable a. Targeted acquisition, moderate Housing Affordable Housino rehabilitation, or refinancino Tusfin 2005-2010 Consolidated Plan Section IV - Action Plan IV-16 Program Program Name Description Eligible Type Activities (TAH) of existing or recently b. Delegated completed multi-family Underwriting & developments. Servicing (DUS) 4. American Communities Fund 5. Fannie Mae Foundation Fannie Mae Foundation supports national and local nonprofit corporations involved in the provision and improvement of affordable housing and strengthening of neighborhoods and community. Federal Home Loan Mortgage Corporation (Freddie Mac) Freddie Mac . Homebuyer a. Affordable Gold purchases/secures high Assistance (Affordable Gold loan to value ratio single- 97, Affordable Gold family home purchase loans 3/2. to assist low-income NeighborWorks, families. Home Works, 2- to 4-Unit Affordable Lending Mortgages) b. Other Affordable Affordable Seconds . Acquisition Housing Programs provides loan to value ratio . Rehabilitation (Affordable to go up to 105 percent for Seconds, Federal second mortgages. FHA Housing 203 (k) Rehabilitation Administration Mortgages Program insured 203(k) mortgages for property Rehabilitation acquisition and Mortgages) rehabilitation. Caiifornia Reinvestment Act (CRA) Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-17 Program Program Name Description Eligible Type Activities . New a. Community Assistance to low-income Construction Reinvestment Act minority neighborhoods, . Rehabilitation (CRA) including the construction, . Acquisition rehabilitation, bridge and acquisition financing needs of developers of affordable rental and for-sale housing, as well as first-time, low- and moderate-income homebuyers. b. Affordable Program provides funds to . Affordable Housing Housing Program qualified affordable housing Projects (AHP) projects that would not meet customary criteria or - existing secondary mortgage market requirements, or for which there is no secondary market. c. Community Program offers interest rate . Homebuyer Investment at 20 basis point below the Assistance Program (CIP) 11th District costs of funds. . Rehabilitation . Commercial and economic development activities California COIN provides financing for . Affordable Or9anized affordable rental or Housing Investment Network ownership Musing. Financing (COIN) Nonprofit Intermediaries Nonprofit financial institution . Affordable a. Low-income with primary purpose of Housing Housing Fund assisting affordable housing Financing (UHF) projects with technical assistance, loan guarantee and interest write down Tustin 2005-2010 Consoiidated Plan Section IV - Action Plan IV-18 Program Program Name Description Eligible Type Activities program, loan packaging, revolving loan fund, and mortgage banking program. b. Local Initiatives Affordable Housing Support Assistance for land . Affordable Corporation acquisition, construction Housing financing, and equity capital. Financing Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-19 c. Activities to be Undertaken CDBG monies allocated to the City for the 2005-06 funding year will not address all of the community's priority needs. Instead, allocations are focused toward specific projects addressing high community priorities and producing tangible community benefits. The following are the needs rated by the community as high priorities and their relation to the Five-Year priorities indicated in the Consolidated Plan. Included also are actions that the City will undertake within the program year to address those needs. Housina Needs Priority Activity A: First-Time Homebuyers Program Year 2000 Census data indicates that approximately 83.3 percent of the City's renters with low income residents and 25.3 percent with moderate incomes are cost burdened (paying more than--30 percent of their income for housing), while 76.2 percent of those with low income are severely cost burdened (paying more than 50 percent of their income for rent, while none of the moderate income rental households are severely cost-burdened. These conditions indicate that an opportunity may exist for low- and moderate-income renter households to transition to becoming first-time homebuyers with some assistance. To address the above opportunities, various resources will be expended. Housing programs currently assisted by the City include the following programs: -$- Low Interest RatelLow Down-payment Mortgages; -$- Downpayment Assistance; -$- Mortgage Credit Certificate Program. Priority B: Preservation of Existing Affordable Units The City will continue to preserve its existing affordable housing by utilizing CDBG funds and other resources such as housing set-aside funds, and other Federal and State available housing funds. Programs include: -$- Assistance for potential nonprofit acquisition of expired Section 8 project-based contracts. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-20 Strategies to preserve existing affordable housing units include: -<1' Continue to preserve existing assisted housing. -<1' Monitor the implementation of the affordable housing program adopted as a part of the Tustin Legacy. -<1' Continue to require developers converting apartments to condominiums to process a use permit, provide relocation assistance, andlor provide incentives and assistance for purchase of the units by low- and moderate- income households. -<1' Continue to provide housing referral services to families in need of housing assistance and information. -<1' Code enforcement. Funding is provided for code enforcement activities focused in low- and moderate-income neighborhoods. The code enforcement efforts-support a housing rehabilitation program funded with non-Federal monies. -<1' Continue to provide opportunities for affordable granny flats and secondary residential dwelling units in the single-family residential district lots through existing Zoning Ordinance provisions. -<1' Continue the provision of counseling and dispute resolution services by the Fair Housing Council of Orange County. -<1' Continue the provision of services by the Fair Housing Council of Orange County to ensure equal housing opportunities within the City. -<1' Ensure that processing of permits for low- and moderate-income housing are fast-tracked with low- and moderate-income housing permits being given priority over other permit applications. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-21 Priority Activity C: Rehabilitation of Existing Housing Stock As indicated in the Consolidated Plan, a large number of older housing units are located within the South Central and Town Center redevelopment project areas. These older homes are in need of rehabilitation. Currently rehabilitation programs have been targeting specific areas located in the southwest portion of the City. Programs include: -$- Owner Rehabilitation Loans and Grants. -$- Multi-Family Acquisition, Rehabilitation, and Conservation to Ownership Housing. -$- Rental Rehabilitation Loans and Grants. -$- Small Project Multi-Family Rental Acquisition and Rehabilitation. Strategies for the rehabilitation of existing housing stock include: -$- Require appropriate deed restrictions to ensure continued affordability for low- or moderate-income housing constructed or rehabilitated with the assistance of public or Redevelopment Agency funds, as legally required. -$- Allocate available CDBG and Redevelopment Agency funds to finance public improvements and rehabilitation of residential units in the City's target areas. -$- Use 20 percent housing set-aside funds as subsidies (I.e. land write downs, acquisition, and rehabilitation assistance grants and loans, etc.) from the SouthlCentral Redevelopment Project to reduce the affordability gap for developing new and rehabilitating existing owner and rental units for low- and moderate-income households. Priority Activity D: New Housing Construction With the exception of development opportunities occurring on the available land from the reuse of the MCAS-Tustin base site (Tustin Legacy), the City of Tustin is mostly built out. Consequently, the City has limited opportunities for new ownership and rental construction on infill sites in the City. This program would assist the development of affordable units within newly constructed projects in either the South Central or Town Center project areas. Programs include: -$ New Owner Housing Construction -$- New Senior Rental Construction Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-22 The Tustin Legacy would provide opportunities for the construction of approximately 4,049 housing units. Strategies to encourage new housing construction include: -<IT The City will assist in the development of affordable new owner or senior rental housing. Priority would be given to ownership housing consistent with the City's Housing policy. -<IT The City will provide for mixed-use site opportunities in Old Town where new ownership townhomes could be constructed. -<IT The City will provide referrals to the Orange County Housing Authority where necessary for the development and operation of Federally assisted low- and moderate-income housing programs. Priority Activity E: ,Support and Ancillary Services This priority encourages activities "Which support affordable housing units for particular groups, such as low- and very low-income households, homeless, and families in transition from homelessness to independent living. Programs include: -<IT Homeless Housing Partnership Program -<IT Section 8 Certificate and Vouchers -<IT Laurel House Strategies for support and ancillary services to support affordable housing units for targeted groups include: -<IT The City supports activities of the Orange County Rescue Mission in obtaining financial assistance to provide needed rehabilitation of housing facilities located at MCAS-Tustin. -<IT Encourage the availability of Section 8 rental assistance certificates and voucher certificate program assistance funds through Orange County Housing Authority. -<IT Encourage the maintenance of existing and establishment of new certificates and support the County's efforts to obtain continued Federal funding. -<IT Allocates CDBG funds to assist Laurel House in providing shelter to runaway teenagers. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-23 Community Development Needs The Community Development needs within the City of Tustin are summarized below. Priority: Youth Centers/Services Youth centerslservices have been identified by the community as essential to provide recreational options to area youth. The target area for the CDBG program is severely limited in its park and recreation resources available to area youth desiring to participate in constructive, affordable, and organized activities. Programs to address the need for youth centers and services within the City of Tustin include: -+ Tustin Family Youth Center - CDBG funds will be allocated to the City of Tustin Parks and Recreation Department to provide a full-time recreation coordinator at the Tustin Family Youth Center located in the southwest neighborhood of the City. The Center provides affordable recreation services to children, the majority of whom are of low-income families. -+ Boys and Girls Club - Upward Bound enrichment program is provided by the Boys and Girls Club for the academic, social, fitness, and character development needs of at-risk youth in the southwest area of Tustin (CDBG low and moderate income tracts). The Upward Bound program provides a comprehensive non-student day program for 100 at-risk youth with computerized tutoring and homework assistance, arts, sports, fitness and recreation. CDBG funds will be utilized to pay for a portion of staff's salary. -+ Big Brothers and Big Sisters of Orange County - Bright Future program provides support services for girls ages 10-18. The mission of this program is to provide mentoring to young Latinas and assist them with staying in school and attaining higher education, avoid drug and alcohol abuse, cope with peer pressure, and develop strong leadership to become self confident. Program services include small group workshops, individual mentoring, and group activities with peers, community leaders, and mentors. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-24 Priority: Neighborhood Facilities Community facilities to serve children, youth, and adults are a high priority for the City of Tustin. The number of existing facilities in the City is not adequate to serve the growing population and the changing needs of target-area residents. Programs include: -$- Senior Center and Youth Center Re-roofing - Although no new facilities are planned for this fiscal year, the City through the City's Capital Improvement Program, will re-roof both the senior center and youth center to extend the life of existing community facilities. Priority: Childcare Facilities/Services Childcare facilities and services that are affordable to low- and moderate-income families are inadequate to serve the number of families in need in the target area include the following program: -$- Tustin Family Youth Center Improvements - Prior CDBG funds will be used to improve the Tustin Family Youth Center by constructing protective fencing, tot lot and security door system. The Tustin Family Youth Center provides child care facility and services for low income families. Priority: Recreation Facilities The City's CDBG target area was largely planned and developed prior to its annexation to the City of Tustin. Therefore, the area is comparatively limited in terms of park and recreational opportunities. The higher population density within the target area also contributes to the need for recreational facilities. As a result, considerable attention has been focused on ways to provide additional private and public youth, adult, and senior services and facilities to supplement those which are heavily used at this time. Programs to address this priority include: -$- Tustin Legacy Community Park. With the closing of the MCAS- Tustin in July of 1999, the City is undertaking steps to rehabilitate existing amenities within the base. Prior year CDBG funds will be utilized for the rehabilitation of the existing buildings to accommodate a community center, sports field maintenance, demolition of underutilized structures and facilities, and upgrading health and safety code requirements. Priority: Street and Sidewalk Improvements/Infrastructure The majority of the street and sidewalk improvements, as well as other types of infrastructure in the target area, were constructed more than 25 years ago. Also, some areas were never developed with sidewalks. These facilities have reached Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-25 elderly population, especially prevalent among those who live alone andlor on limited incomes. The program not only provides meals at a congregate site in Tustin, but also delivers meals to at-risk seniors (homebound) residing within the City. CDBG funds will be allocated to reimburse the raw food and other meals' related costs. Priority: Crime Awareness The target area has become the community's highest priority for crime prevention activities, given the increasing population density and increasing need for police services. The population is a potential target for victim-related crime, which could be prevented by the implementation of crime awareness programs which include: -$- Assessment and Treatment Services Center (ATSC) - CDBG funds will be allocated to the A TSC to provide staff for youth and family counseling services. ATSC provides counseling to minor and first-time offenders of the law, youth who demonstrate poor school behavior or performance, youth with family problems or who are victims of domestic violence, and youth who use drugs or alco(1ol or who are "delinquent. While program participation is voluntary, a child and hislher entire family must agree to undergo therapy together. Referrals are made to the ATSC by the Tustin Police and also by area schools. Counseling services are provided by A TSC staff or coordinated with other agencies. Priority: Health Services Based on the 2000 census, the Southwest area of the City (a CDBG target area) is concentrated with high-density residential and low-income households. Often, the majority of the households' income is utilized to pay for housing. Consequently, limited or maybe none at all is set aside for health insurance. Preventive medical and dental care is a luxury that typical households may not be able to afford. Low-cost health services are needed to help the household with preventive health and dental care. Programs to address this need include: -$- Health and Human Services: The Tustin Parks and Recreation Department offers health services such as fitness programs, hearing test, senior hair cuts, Alzheimer support, housing referrals, counseling, etc. All services are offered free to Tustin Senior or at small nominal fee. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-27 the age where they are beginning to deteriorate more rapidly and require reconstruction. With the population growing, the need for new street and infrastructure is also increasing. The City .objective is to promote the improvement of existing infrastructure and the creation of new infrastructure where such infrastructure is nonexistent or completely inadequate. Programs to address the needs of street and sidewalk improvements include: -+ Sycamore Garden Right-of-way - Right of Way acquisition for Sycamore Gardens. This project would be completed as a multi-phased project. The first year application would cover design cost. -+ EI Camino Real Landscaping - Landscape improvement for EI Camino Real neighborhood park located at 450 EI Camino Real (across from Armstrong Gardens Center). -+ Sycamore Avenue Sidewalk Enhancement - South side of Sycamore Avenue from Carfax Drive to School Lane - Sidewalk enhancement along Sycamore Avenue from Carfax Drive to School Lane. -+ Walnut Avenue Sidewalk Enhancement - South side of Walnut Avenue from east of Newport Avenue to west of Atherton Lane - Sidewalk enhancement along the south side of Walnut Avenue from east of Newport Avenue to west of Atherton Lane. -+ Pasadena Avenue Storm Drain Improvements - Pasadena Avenue from Medallion Avenue to Sycamore Avenue - Storm drain pipe installation, catch basins construction, and pavement resurfacing of Pasadena Avenue from Medallion Avenue to Sycamore Avenue. -+ Williams Avenue Street Improvements - 15600 Williams Avenue - Curb and gutter sidewalk improvements to the City's right-of-way located in front of 15600 Williams Street. Priority: Senior Services Area senior services are presently provided through the City's full-service senior center located in Old Town Tustin. Although the senior center is not geographically distant from the target area, multi-cultural and economic limitations and barriers may be preventing full participation in the center's programs. Additional services are necessary to target this population. Current programs include: -+ Feedback Foundation - Tustin TLC Nutrition Program for the Elderly. The Feedback Nutrition Program for the elderly (including congregate and home-delivered meals) provides nutritious meals to the Tustin's elderly. The program objective is to alleviate poor nutrition among the vulnerable Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-26 Priority: Code Enforcement Property maintenance issues are of significant importance to the community as the majority of residential, commercial, and industrial structures in the target area are at least 25 years in age. Absentee property owners contributed to delayed property maintenance in many cases. Active Code Enforcement is needed to ensure that properties are properly maintained in accordance with City standards. Programs addressing code enforcement include: <I>- Code Enforcement - CDBG funds will be allocated for salary and benefits for one code enforcement officer to support the City's Housing Rehabilitation program targeting the southwest neighborhood (low- and moderate-income target areas). -<!> Graffiti Removal - CDBG funds will be allocated for the removal of graffiti in the southwest neighborhood. The southwest neighborhood has been detemnined by HUD as the CDBG low- and moderate-income target areas. Priority: Economic Development To stimulate businesses within the CDBG target areas, the City initiated a Commercial Rehabilitation program. The program will provide financial assistance to private for-profit businesses for façade improvements. Monetary assistance will be provided for either design or construction costs. Programs to enhance economic development include: -<!> Old Town Commercial Rehabilitation - Prior CDBG funds will be utilized to provide grant funding for design of commercial building rehabilitation within the Old Town redevelopment area. Priority: Planning/Administration Planning Services are needed to administer the CDBG program, to prepare planning documents for Old Town Tustin, and to provide fair housing assistance. These services are necessary to support the other priorities. Planning and administration programs include: -<!> Fair housing activities - CDBG funds will be allocated to contract with the Fair Housing Council of Orange County to provide fair housing services to Tustin residents. Services include landlordltenant dispute resolution, education, counseling, and fair housing monitoring and compliance. The contract also includes the implementation of the Analysis of Impediment to Fair Housing Choice. -<!> Planning and Administration - CDBG funds will be allocated for the administration of the CDBG program. Tustin 2005-2010 Consoiidated Plan Section IV - Action Plan IV-28 -$- Old Town Design Guidelines - Prior CDBG funds will be utilized for the preparation of design guidelines for Old Town Tustin. Old Town Tustin is located in the CDBG low-moderate income target area. The design guidelines would provide for economic development opportunities. D. Geographic Distribution Tustin is a relatively small jurisdiction with limited areas which meet the Federal criteria of slum and blight, as defined under California State Redevelopment Law, or concentrations of low- and moderate-income persons. Nevertheless, FY 2005-06 funds have been allocated on the basis of meeting the national objectives of the CDBG program, including programs addressing slum and blight and/or benefiting low- and moderate-income persons. Further, boundaries of the South Central redevelopment project area overlap areas of low- and moderate-income concentrations. The Tustin community believes it is important to focus public services and improvements in that portion of the City known as the Southwest Neighborhood. The 2005--06 Action Plan reflects those "geographic" priorities for allocating investment. E. Homeless and Other Special Needs Activities Statistical data, including the Year 2000 Census and data maintained by the Tustin Police Department, indicate that homelessness is not a major issue within the Tustin community. Nevertheless, it, is recognized that homelessness is a regional issue for which the City of Tustin must provide a "fair share" of services to address the needs of the homeless. Furthermore, the City of Tustin participates in the County of Orange's annual Continuum of Care (CoC) application. 1. Activities to Address Emergency Shelter and Transitional Housing Needs of Homeless Individuals and Families In late 1996 and 1998, Tustin was awarded more than $1 million and approximately $800,000, respectively, for a supportive housing facility under the Continuum of Care (CoC) Homeless Assistance Grant program. The City is in the process of acquiring 22 units of transitional housing (6 units at the former MCAS Tustin and 16 units in Buena Park) for the Salvation Army using approximately $1,370,000 of the CoC grant money. The remaining balance of approximately $430,000 will be used to assist three (3) other homeless providers (Human Option, Families Forward, and Orange Coast Interfaith Shelter) to provide additional 26 transitional housing units. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-29 On December 28, 2001, the City of Tustin and Orange County Rescue Mission executed a ground lease to support the Rescue Mission's constructionlrehabilitation of a 5.1 acre site to establish a 192-unit transitional housing project at the former MCAS Tustin. Currently, construction is underway and is anticipated to be completed within the next two years. For FY 2005-06, the City will allocate funds for Laurel House, a local temporary shelter for teens, using CDBG funds. 2. Activities to Prevent Low-income Individuals and Families with Children from Becoming Homeless The City of Tustin participates in the County of Orange Continuum Care program. The Orange County Housing Authority (OCHA) established a Family Self-Sufficiency Program. Preference for this program is given to families with children who are homeless or who are in danger of becoming homeless (those paying over 50 percent of household income for rent~. In addition to providing housing assistance, this program provides a variety of support services designed to assist participants become economically independent including job training and employment for program participants. Tustin has allocated the maximum allowable amount of its CDBG funds to public service programs. While some of the organizations funded do not directly serve the homeless, many of their activities may prevent homelessness. These activities include Laurel House, counseling program (ATSC), and Tustin Family and Youth Center programs. 3. Activities to Help Homeless Persons Make the Transition to Permanent Housing and Independent Living The City recognized that the homeless are often in need of low rent or subsidized housing in order to make the transition to independent living. The Orange County Housing Authority will continue to assist homeless persons on the Section 8 waiting list. Other efforts to help the homeless also are provided by local nonprofits and churches. 4. Activities to Address the Special Needs of Persons Who Are Not Homeless The City's Senior Center provides assistance to the elderly and frail elderly. These include transportation services, case management, information and referrals, shared housing program, senior activities, health and fitness, and other recreational activities. Section IV - Action Plan Tustin 2005-2010 Consolidated Plan IV-30 The City allocates CDBG funds to assist the Feedback Foundation to provide meals services to the elderly and frail elderly (home-bound elderly). The City will continue to refer those persons with special needs, such as persons with disabilities (mental, physical, developmental), persons with alcohol or other drug dependencies, and persons with HIVIAIDS to appropriate agencies. The following table summarizes the organizations that provide homeless services and special needs services for Fiscal Year 2005-06: Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-31 LISTING OF HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES FOR FISCAL YEAR 2005-06 Organization Program Name Target Population Funding Amount ATSC Counseling Program Youths At-risk $ 15,000 youths Laurel House Transitional Home Youths (teens) Homeless $ 4,000 for Teens in crisis Teens Feedback Project TLC - Senior Elderly Low/Mod $25,000 Foundation Meal Program Elderly City of Tustin Transitional Living Single men Homeless $1,050,552 Center and women individuals Transitional Units Families with Homeless $800,625 Children Families City of Tustin Total $1,895,177 F. Other Actions 1. General The five-year Consolidated Plan for the City of Tustin contains a housing and homeless needs assessment which describes estimated housing needs for low- and moderate-income residents, special needs populations, and the homeless. During the 2005-06 funding year, the City of Tustin will undertake the following actions to address obstacles to meeting underserved needs including the following goals: Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-32 -$- Foster and maintain affordable housing The City will continue to use available Federal, State, and local resources to foster and maintain affordable housing through housing rehabilitation programs for multi- and single-family dwelling units and provide andlor maintain homeownership opportunities through a first-time homebuyer program and an emergency mortgage program. -$- Remove barriers to affordable housing As stated in the Consolidated Plan, the City has adopted indirect assistance programs to address negative impacts created by barriers to affordable housing. The following summarizes the types of programs Tustin has included into its Housing Element and will continue to promote during the 2005-06 funding year. ~ Secondary Resident Units ~ Deed Restrictions ~ Fees, Extractions, and Permit Procedures ~ Environmental Constraints ~ Pre-application Conferences ~ Shared Housing ~ Permit Processing and Coordination ~ Section 8 Rental Assistance ~ Recycling Single-Family Uses in R-3 Zones into Multiple- Family Units ~ Housing Referral Program ~ Density Bonus Program ~ Mixed Use Zoning Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-33 -$- Evaluate and reduce lead-based paint hazards The City's Consolidated Plan notes that there does not appear to be a great number of housing units at risk of lead-based paint hazard. However, to comply with Title X of the Housing and Community Development Act of 1992, the City will implement into its housing policies over the next five years the following: » Include lead-based paint hazard reduction as an eligible activity in rehabilitation programs; » Review existing regulations, housing, and rehabilitation codes to assure lead-based paint hazard reduction is incorporated; » Require testing and hazard reduction in conjunction with rehabilitation; and, » Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. -$- Reduce the number of poverty-level families The City continues to support and implement several goals, policies, and programs, as noted in the Housing Element of the General Plan, designed to provide adequate, safe, and affordable housing to all segments of the population. Those goals include: » Providing an adequate supply of housing to meet the City's need for a variety of housing types to meet diverse socio- economic needs. » Ensuring equal housing opportunities for all existing and future City residents. » Ensuring a reasonable balance of rental and owner-occupied housing. » Preserving the existing supply of affordable housing. » Conserving, maintaining, rehabilitating, andlor replacing existing housing in neighborhoods which are safe, healthful, and attractive, in accordance with adopted Land Use policy. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-34 -$- Develop institutional structure The City will continue to be involved in "network-building" activities with governmental, for-profit, and nonprofit organizations. This includes attendance at quarterly meetings of the Orange County Housing Authority Advisory Committee. Tustin will also continue to fund the Fair Housing Council of Orange County which provides fair housing and advocacy services for the region. Further, the City will continue to encourage and participate in efforts to work collectively and cooperatively with other Orange County jurisdictions. -$- Enhance coordination between public and private housing and social service agencies The City of Tustin does not own or operate any public housing projects. Nevertheless, the City will continue to support and encourage efforts of the Orange County Housing Authority to coordinate between private housing and social service agencies. -$- Foster public housing improvements and resident incentives While the City of Tustin does not own or operate any public housing projects, Tustin will continue to support and encourage public housing improvements and resident incentives as carried out by the Orange County Housing Authority. -$- Use available Federal, State, and local financial resources to meet underserved needs. -$- Coordinate with Federal, State, and local agencies to provide appropriate assistance to residents. -$- Coordinate with public service providers to promote adequate services to residents. -$- Work to provide physical improvements to slum and blighted areas and neighborhoods with concentrations of low- and moderate-income areas. Section IV - Action Plan Tustin 2005-2010 Consolidated Plan IV-35 2. Public Housing The City of Tustin does not have a Housing Authority. The City of Tustin contracts with the Orange County Housing Authority (OCHA) to provide public housing and a variety of housing assistance programs to qualifying City residents. The City does not own or operate public housing, and no public housing developments are proposed for Fiscal Year 2005-06. G. Program - Specific Requirements CDBG - A description of all CDBG funds expected to be available during the 2005-06 program year is provided in Table 1. A more comprehensive listing of the City's proposed use of those funds is provided in Table 4. No program income has been received from the previous program year; none is anticipated for 2005-06. The City has no urban renewal settlements, grant funds returned to the line of credit, or income from float-funded activities. H. Citizen Participation and Consultation HUD requires that each jurisdiction encourage its citizens to participate in the development of the Consolidated PlanlAction Plan. To ensure that this opportunity is provided, the City of Tustin adopted its Citizen Participation Plan in 1995 and revised in January of 2003. The Citizen Participation Plan sets forth policies and procedures for citizen participation in planning, implementation, and assessment of the City of Tustin Consolidated Plan/Action Plan. The objectives of the Citizen Participation Plan are: 1. To encourage citizens, particularly residents of low- and moderate-income living in areas eligible for the use of program funds, including minorities, non-English speaking persons, and persons with mobility, visual, or hearing impairments, to participate in the development of the Consolidated PlanlAction Plan. 2. To assure that citizens are furnished with appropriate information about the Consolidated Plan and its various component programs. The City started the Citizen Participation process by publishing a Notice of Funding Availability (NOFA) in the local newspaper seeking Request for Funding Applications for the 2005-06 CDBG funds. In addition, the City also sent the NOFA to over 100 nonprofit organizations. The City received 25 applications totaling $1,147,377 in funding requests. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-36 To develop the City's 2005-06 Action Plan, two public hearings were conducted. The first public hearing was held during the preparation of the Action Plan. The hearing was held on February 16, 2005. The purpose of the first hearing was to obtain citizens' input and views on possible needs, goals, and objectives; to infonm citizens about the CDBG program goals and objectives, including its process and procedures; and, to receive input and recommendations on the proposed use of CDBG funds to the City Council. The second public hearing was held on May 2, 2005. The purpose of the second hearing was for the City Council to review the Citizen Participation Committee's recommendation on the proposed use of CDBG funds for Fiscal Year 2005-06 for submission to HUD. All notices for the above hearings were published in the local newspaper at least 10 days prior to the hearing date and notices were posted at City Hall and at the library. All citizens were encouraged to participate, and those who required special accommodation were accounted for. The City also, as required by HUD, published a notice of the availability of a draft Action Plan for public review. The 30-day public review and comment period began on March 21, 2005, and ended on April 19, 2005. No comments were received from this public review. I. Communication The City of Tustin provides its Citizen Participation Committee with a package of CDBG materials and conducted a workshop to explain the CDBG process and procedures. The City also provides maps and tables to assist citizens in understanding the CDBG overall goals and objectives. The City utilized the HUD- provided Community 2020 software in developing the CDBG low- and moderate- income target areas map and the CDBG proposed projects location map. The City, with the help of HUD, posts its Executive Summary on the HUD web page as a tool for interested citizens to understand the type of projects funded by the CDBG program. Information related to the CDBG program is also available on the City's Webpage. The City prepares a perfonmance report at the end of the program year utilizing the IDIS program. J. Community Vision The City delineates the Community's vision in its Five-Year (2005-2010) Consolidated Plan. The Consolidated Plan outlines community priority needs and its short-term and long-term goals and objectives. A copy of the Consolidated Plan is available to the public upon request at no cost. The City updates this Consolidated Plan as the community's vision and goals change throughout the years. The City annually submits an Action Plan to HUD as an application to receive funding. Within the Action Plan, the City provides benchmarks on each activity funded. These benchmarks will be utilized to measure the City's progress in achieving the stated goals and vision. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-37 K. Strategies With limited resources, the City strives to address the affordable housing, economic opportunity, and Continuum of Care issues. Section C of this Action Plan describes the activities and strategies that the City will undertake during the program year to address the Affordable Housing issue. Section F indicates strategies that the City will undertake to address obstacles in meeting the under- served needs, foster and maintain affordable housing, remove barriers to affordable housing, evaluate and reduce lead-based paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance the coordination between the public and private housing and social services agencies. Section E of this Action Plan describes the activities that the City will undertake to address the homeless population. The City in its Consolidated Plan addresses the Continuum of Care strategies in further detail. Section C of this Action Plan describes the activities that the City will undertake to expand its economic opportunities. Due to the closure of the MCAS-Tustin, the City is cautiously undertaking an economic development plan to address all the economic opportunities that will be available. L. Action Plan Each year the City prepares an Action Plan not only for submission to HUD, but also to utilize the Action Plan as a tool to provide the public with information on how the City utilizes its entitlement grant for the program year. The Action Plan provides a description of each activity, the amount of funding, and the projected, accomplishment. All of the above are summarized in the Proposed Project Table (Table 4) of the Action Plan. M. Integrated Approach to Planning and Development Utilizing the Consolidated Plan process, the City was able to identify community needs, goals, and objectives. The City also was able to identify available resources and effectively utilize the funds. The Consolidated Plan provides the City with strategies, goals, and identifiable benchmarks that the City can assess at the end of program year for program achievements. Each year the City invites public participation in identifying the needs of the community and prioritizing them in the order of high, medium, low, or no priority. With these identified needs, the City develops its Consolidated PlanlAction Plan by establishing activities to address those needs utilizing the available resources. Tustin 2005-2010 Consolidated Pian Section IV - Action Plan iV-38 N. Monitoring System To ensure program compliance, the City conducts a fonmal on-site monitoring visit to each subrecipient. The City established a monitoring procedure to ensure that each subrecipient is carrying out the eligible activity, utilizing appropriate accounting methods, and verifying information provided to the City within the quarterly performance report. The on-site monitoring visit also provides the City with an opportunity to identify potential problem areas and to assist the subrecipients with technical assistance. The City utilizes a monitoring checklist form (see Appendix E) as a standard form to monitor the subrecipients. o. Action Plan Each year the City prepares an Action Plan not only for submission to HUD, but also to utilize the Action Plan as a tool to provide the public with infonmation on how the City utilizes its entitlement grant for the program year. The Action Plan provides a description of each activity, the amount of funding, and the projected accomplishment. All of the above are summarized in the Proposed Project table (Table 4) of the Action Plan. Integrated Approach to Planning and Development P. Utilizing the Consolidated Plan process, the City was able to identify community needs, goals and objectives. The City also was able to identify available resources and effectively utilize the funds. The Consolidated Plan provides the City with strategies, goals and identifiable benchmarks that the City can assess at the end of program year for program achievements. Each year the City invites public participation in identifying the needs of the community and prioritizing them in the order of high, medium, low or no priority. With these identified needs the City develops its Consolidated PlanlAction Plan by establishing activities to address those needs utilizing the available resources. Q. Monitoring System To ensure program compliance, the City conducts a formal on-site monitoring visit to each subrecipient. The City established a monitoring procedures to ensure that each subrecipient is carrying out the eligible activity, utilizing appropriate accounting methods, and verifying information provided to the City within the quarterly performance report. The on-site monitoring visit also provides the City with an opportunity to identify potential problem areas and to assist the subrecipients with technical assistance. The City utilizes a monitoring checklist form (see Appendix G) as a standard form to monitor the subrecipients. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-39 CITY OF TUSTIN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FY 2005-06 The following table is a list of Request for Funding applications submitted to the Community Development Department. The chart includes applications received from public service/non-profit organizations and City departments. The Public Service cap for the FY 2005-06 grant award of $923,725 is $138,558 (15% of total grant award). The Program Administration cap is $184,745 (20% of total grant award). ORGANIZATION' PROJECT NAME PROJECT DESCRIPTION FUNDING AMOUNT REQUESTED In-House Committee Recommendation l. Assessment and Treatment I t50 persons Services Center - Youth and Family Counseling Program 440 W. First Street #101, Tustin 2. Big BrotherslBig Sisters of Orange I 80 persons County - Bright Futures Program The objective of this organization's youth counseling program is to halt delinquent behavior, assist young victims of abuse and neglect, and help young people toward productive adult lives. Funding is requested for staff salaries and benefits. $ t5,000 $ 15,000 $ 15,000 14131 Yorba Street, Ste. 200, Tustin - Tustin High Schoo~ Columbus Tustin Middle Scbool, and Tim Curry Middle Scbool. Bright Futures program provides support services for girls ages 10-18 at school sites and on weekends to stay in school, avoid drug and alcohol abuse, cope with peer pressure, and devetop strong communication skills to become self confident and motivated creating healthy lives. $5,000 $ 5,000 $ 5,000 Tustin 2005-2010 Consolidated Plan Section IV - Action Plan IV-40 ORGANIZATION c, PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In-House C;tizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project Location (NOTES) Recommendation . 3. Boys and Girls Club of Tustin - 100 persons This program provides after-school and non-student $ 25,000 $ 25,000 $ 25000 Upward Bound Acadenric day programs. The focus would be on academic, Enrichment Outreach Program social, fitness, and character development needs of at-risk youth in the southwest area of Tustin. CDBG funds will be utilized to pay for a portion of 580 W. Sixth Street, Tustin staff salary. 4. Easter Seals Southern California - 5 persons The program provides scholarships for children $ 15,000 $ 0 $0 Scholarships for Children with with disabitities, five of whom live in Tustin and Disabilities are oflow/moderate income. Irvine High Schoo~ 432t Walnut Avenue, #SI1, Irvine 5. City ofTustin Parks and 2,400 Funding for salary and benefits for a fulltime $ 66,647 $ 34,558 $ 34,558 Recreation Services Department - persons/month program coordinator at Tustin Family and Youth Program Coordinator Center. Program Coordinator provides direct leadership for facility management, family service programs, outreach programs, youth action team programs, nutrition, education assistance, and childcare. 14722 NewDort Avenue Tustin 6. Families Forward - Homeless 200 persons This program helps families at-risk of becoming $ 5,000 $ 0 $0 Prevention homeless by providing various resources such as: utility and rent assistance, career counseling, food 9221 Irvine Boulevard, Irvine pantry, case management, education. and referrals. 7. Family Solutions - Tustin Group 20 persons The program helps fund a residentiat group home $25,000 $0 $0 Home Programming and Operations for six (6) youth at a time with safe housing and a full continuum of supportive services such as 14311 Shadybrook, Tustin counseling, mental health support and services, after schoot educational trips, and tutoring. CDBG funds will be used to pay for staff salary and children's suoolies. Tustin 2005-2010 Consolidated Pian Section IV - Action Plan IV-41 ORGANIZATION' PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In-House CitiZen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee PròjectLocation (NOTES) Recommendation 8. Feedback Foundation, Inc. - 300 Congregate Lunch program for etderly at congregate meal site $ 25,000 $ 25,000 $ 25,000 Congregate Lunch Program and 112 Home Delivered (Tustin Area Senior Center) and through home Home Delivered Meals Program delivery. Funds will be utilized to pay for meals related expenditures and raw food, 200 "C" Street, Tustin 9. Friendship Shelter - Emergency 5 persons Friendship Shelter provides emergency shelter for $t,250 $0 $0 Shelter Program hometess single adult men and women. The program atso provides a comprehensive 1335 S. Coast Highway, Laguna rehabilitation program that hetps residents to Beach overcome the problems that ted to their homelessness. 10. City of Tustin Community CDBG Low-Mod Removal of graffiti from privatety and publicly $ 20,000 $ 20,000 $ 20,000 Development Department - Graffiti Target area owned improvements in the Southwest Target area. Removal Program CDBG Target Area II. Laurel House - House Parent and 20 persons Funding for portion of salaries and benefits for the $ 20,000 $ 4,000 $ 4,000 Office Manager (shelter) house parent and office manager. Laurel House 175 persons provides temporary shelter, care and counseting for 13722 Falrmont Way, Tustin (support services) teens and their families. 12. Mercy House-Joseph House, 6 persons Mercy House provides safe housing and supportive $6,000 $0 $0 Regina House, and Emmanuel House case management services such as wellness program, finauciat planning, and basic tife skills Regina House - 1505 and 1509 N. programs to achieve self-sufficiency. Garfield, Santa Ana Emmanuet House - 807 N. Garfield, Santa Ana Joseph House-2IO E. 16th Street, Santa Ana Tustin 2005-2010 Consolidated Plan Section IV - Action Plan I iV-42 . ORGANIZATION - PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In-House Cltizeu RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project Locatiou (NOTES) Recommendation 13. Rebuilding Together of Orange 9 persons The Safe at Home program provides rehabilitation $ 6,000 $0 $ 0 County - Safe at Home 2005-06 services for the elderly and persons with disabilities. CDBG funds will be used to repair and rehabilitate up to six (6) homes. 625 S. Cypress Avenue, Santa Ana 14. Serenity Recovery Center - Unknown number The program provides treatment, rehabilitation, $50,000 $0 $0 Community Action in Recovery of Tustin residents sober-living, and aftercare recovery services to Building a Betrer Way individual suffering from substante abuse of alcoholism. CDBG funds would be used for staff salary and to offset a portion of property 14511 Carlax Drive improvement cost. 15. Think Together - Achieving Success t 000 persons Think Together provides after-school program by $ 10,000 $ 0 $0 Academic Partnership (ASAP) providing homework assistance and academic support. CDBG funds would be used to pay for a portion of staff salary. Tustin Unified School District campuses 16. Tustin Area Historical Society - Citywide Tustin Area Historical Society operates the Tustin $ 7,200 $0 $0 Museum Rental Fee Area Museum at 395 El Camino Real. CDBG funds would be used to offset museum rental fee. Tustin 2005-2010 Consoiidated Plan Section IV - Action Plan IV-43 ORGANIZATION -PROJECT NAME Project LocatiDn 17. WTLC's Family Outreach Center- Independence ITom Dependence Tustin Pnlice Department and 210 N. Malden Avenue, Fullerton NO. OF TUSTIN RESIDENTS SERVED (NOTES) 175 persons PROJECT DESCRIPTION The progr!lm provides a continuum of care for victims of domestic violence. The tndependence ITom Dependence program provides supportive services necessary to become ITee ITom dependence on others, financiaÙy and emotionally, substance abuse, and dependence on government welfare program. CDBG funds would be used to pay for a portion of staffs' salaries. Public Service Subtotal (Maximum allocation for Public Services is $138,558) FUNDING AMOUNT REQUESTED $ 10,000 $312,097 Iu-House Committee Reeommendatlon $ tO,OOO $ 138,558 Citizen Participation Committee Recommendation $ 10,000 $ 138,558 18. City ofTustin - Sycamore Avenue Sidewalk Enhancement Soutb side of Sycamore Avenue from Carrax Drive to School Lane 19. City of Tustin - El Camino Real Landscaping 450 EI Camino Real CDBG target area CDBG target area Sidewalk enhancement along Sycamore Avenue ITom Carf.. Drive to School Lane. Landscape improvement for Et Camino Real neighb.rhood park located at 450 El Camino Reat (across ITom Armstrong Gardens Center). $ 45,000 $100,000 Tustin 2005-2010 Consolidated Plan Section iV - Action Plan IV-44 $45,000 $100,000 $45,000 $100.000 ORGANIZATION - PROJECT NAME NO. OFTUSTIN PROJECT DESCRIPTION FUNDING In-House Citizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project LDcation (NOTES) - Recommendation 20. City of Tustin - Walnut Aveuue CDBG target area Sidewalk enhancemeot along the south sidc of $110,000 $t tO,OOO $ltO,OOO Sidewalk Enhancement Walnut Aveuue ITom east of Newport Avenue to west of Atherton Lane. South side of Walnut Avenue from east of Newport Avenue to west of Atherton Lane 21. City of Tustin - Pasadena Avenue CDBG target area Stonn drain pipe installation, catch basins $100,000 $tOO,OOO $100,000 Stonn Drain Improvements construction, and pavemeut resurfacing of Pasadena Avenue ITom Medallion Aveuue to Sycamore Avenue. Pasadena A venue from Medallion Avenue to Sycamore Avenue 22. City ofTustin - Wil1iams Avenue CDBG target area Curb and gutter sidewalk improvemeuts to the City's $ 75,000 $75,000 $75,000 Street Improvemeuts right-of-way located in ITont of t5600 Wil1iams Street. 15600 Williams Avenue 23. City of Tustin - Sycamore Garden CDBG target area Right of Way acquisition for Sycamore Gardens. $ 250,000 $ 199,887 $ 199,887 Right-of-way This project would be completed as a multi-phased project. The first year application would cover design cost. Public FacilitieslImprovements Subtotat $680,000 $ 629,887 $ $629,887 Tustin 2005-2010 Consolidaled Plan Section IV-Action Plan IV-45 ORGANIZATION - PROJECT NAME PROJECT DESCRIPTION ProjeclLocation NO. OF TUSTIN RESIDENTS SERVED (NOTES) FUNDING AMOUNT REQUESTED In-Hoose Committee Recommendation Citizen Participation Committee Recommendation 24. City ofTustin Conununity Development Department - Code Enforcement CDBG target area Full-time salary, benefit and training for one Code Enforcement officer working exclusively in the Southwest Neighborhood. Rehabilitation and Preservation Subtotai $ 7t,800 $ 71,800 $ 7t,800 $ 71,800 $ 71,800 $ 71,800 25. Fair Housing Council of Orange CountylFair Housing counseling Services. 385 households As a recipient ofCDBG funds, Tustin is required to provide fair housing sernces to residents. Contracting with this agency is a cost-elfective way to comply with federal requirement. Ci ide 26. City of Tustin Conimunity Development Department - Program Administration CDBG Program Administration, cost recovery. contingency Program Administration Subtotal (maximnm allocation for Planning & Administration is $184,745) TOTAL Tuslin 2005-2010 Consolidated Plan Section IV - Action Plan IV-46 $ 18,480 $ t8,480 $ 18,480 $ 65,000 $ 65,000 $ 65,000 $ 83,480 $ 83,480 $ 923,725 $ 923,725 $ 83,480 $1,147,377 CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing - The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-clisplacement and Relocation Plan -. It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential àntidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace - It will or will continue to provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about- a) b) c) d) The dangers of drug abuse in the workplace; The grantee's policy of maintaining a drug-free workplace; Any available drug counseling, rehabilitation, and employee assistance programs; and The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - Section IV - Action Plan Certifications Tustin 2005-2010 Consolidated Plan 5. a) b) Abide by the temns of the statement; and Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - 1. 2. a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or 6. b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Anti-Lobbying - To the best of the jurisdiction's knowledge and belief: No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer Section IV - Action Plan Certifications Tustin 2005-2010 Consolidated Plan 2 or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction - The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with Plan -- The housing activities to be undertaken with CDBG, HOME, -!=SG, and HOPW A funds are consistent with the strategic plan. Section 3 .. It will comply with Section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date Community [)AvAlopmAnt DirActor Title Tustin 2005-2010 Consolidated Plan Section IV - Action Plan Certifications 3 Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation .. It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan - Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan - It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds .. It has complied with the following criteria: 1. Maximum Feasible Priority: With respect to activities expected to be assisted with "CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); 2. Overall Benefit: The aggregate use of CDBG funds including section 108 guaranteed loans during FY 2005-06 program year shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 3. Special Assessments: It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Tustin 2005-2010 Consolidated Plan Section IV - Action Plan Certifications 4 The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned . and occupied by moderate-income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force - It has adopted and is enforcing: 1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non- viötent civil rights demonstrations within its jurisdiction; Compliance With Anti-discrimination laws - The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint -- Its activities conceming lead-based paint will comply with the requirements of 24 CFR Part 35, subparts A, B, J, K and R; Compliance with Laws -- It will comply with applicable laws. SignaturelAuthorized Official Date Community Dp.vp.lopment Dirp.ctor Title Tustin 2005-2010 Consolidated Plan Section IV - Action Plan Certifications 5 APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING AND DRUG-FREE WORKPLACE REQUIREMENTS: A. Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. B. Drug-Free Workplace Certification 1. By signing andlor submitting this application or grant agreement, the grantee is providing the certification. 2. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other remedies available to the Federal Govemment, may take action authorized under the Drug- Free Workplace Act. 3. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug-free workplace requirements. 4. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). 5. If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph three). Tustin 2005-2010 Consolidated Plan Section IV - Action Plan Certifications 6 6. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) city of TII!'Itin ::100 CAntAnniRI WRY Tustin CA 9?780 Check - if there are workplaces on file that are not identified here. The certification with regard to the drug-free workplace is required by 24 CFR part 24, subpart F. 7. Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free Workplace common rule apply to this certification. Grantees' attention is callêd, in particular, to tl'\e following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: (i) All "direct charge" employees; (ii) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and (Hi) temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). Section IV - Action Plan Certifications Tustin 2005-2010 Consolidated Plan 7 SECTION VI MONITORING The City of Tustin will monitor progress toward Consolidated Plan goals by reviewing these goals three (3) times a year and preparing a report on the progress of the Plan. This Progress Review will be conducted by the Advance Planning Division of the City's Community Development Department. The first progress report will be presented to the manager of this division four months after approval of the Consolidated Plan is received from HUD. Ensuing reports will follow every four (4) months. These progress reports will be kept on file for review by HUD auditors and the general public. They will also be utilized in future citizen participation discussions regarding the Consolidated Plan. In addition, all projects will be monitored for compliance with all State and Federal requirements including, but not limited to, eligibility, environmental impacts and labor regulations. Tustin 2005.20tO Consolidated Plan Seccion VI . Monitoring VI.! A. Glossary of Terms APPENDIX A - GLOSSARY OF TERMS AffordahlA Hol/!'Ii"g: Affordable housing is generally defined as housing where the occupant is paying no more than 30 percent of gross income for gross housing costs, including utility costs. AIDS an( RAlatAd Di!':Aa!'lA!'I: The disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome. AlcoholfOthAr Dnlg Addition: A serious and persistent alcohol or other drug addition that significantly limits a person's ability to live independently. Al'Aa of I ow-lncnmA CnncAntratinn: For the City of Tustin, these areas have been defined in Section I - Community Profile as those 1990 Census tractslblock groups that meet the uncapped area benefit as defined by HUD. Al'Aa nfRacial/Ethnic Minority Corn:Antratinn: For the City of Tustin, these areas have been defined in Section I - Community Profile as those 1990 Census tracts where a minority population; that being a race or ethnic group with a minority representation City- wide, has a percentage equal to or greater than the percentage representation City-wide. A!'I!'Ii!'ltAd Hnl/!'IAhnld nr PAn;nn: For the purpose of identification of goals, an assisted household or person is one which during the period covered by the annual plan will receive benefits through the Federal funds, either alone or in conjunction with the investment of other public or private funds. The program funds providing the benefit(s) may be from any funding year or combined funding years. A renter is benefited if the person takes occupancy of affordable housing that is newly acquired, newly rehabilitated, or newly constructed, andlor receives rental assistance through new budget authority. An existing homeowner is benefited during the year if the home's rehabilitation is completed. A first-time homebuyeris benefited if a home is purchased during the year. A homeless person is benefited during the year if the person becomes an occupant of transitional or pemnanent housing. A non-homeless person with special needs is considered as being benefited, however, only if the provision of supportive services is linked to the acquisition, rehabilitation, or new construction of a housing unit and/or the provision of rental assistance during the year. Households or persons who will benefit from more than one program activity must be counted only once. To be included in the goals, the housing unit must, at a minimum, satisfy the HUD Section 8 Housing Quality Standards (see 24 CFT section 882.109). See also, instructions for completing Table 3B of the CHAS and Table 1 of the Annual Performance Report. CArtificatinn: A written assertion based on supporting evidence, that must be kept available for inspection by HUD, by the Inspector General of HUD, and by the public. The assertion shall be deemed to be accurate unless HUD detemnines otherwise, after inspecting the evidence and providing due notice and opportunity for comment. I Committ..d: Generally means there has been a legally binding commitment 01 fu specific project to undertake specific activities. Con~nlidat...d Plan (nr nth... plan"): The document that is submitted to HUD t at serves as the planning document (comprehensive housing afford ability strategy and munity development plan) of the jurisdiction and an application for funding under ny of the Community Planning and Development formula grant programs (CDBG, ESG, 0 E, or HOPWA), which is prepared in accordance with the process described in Pa 91 of the Code of Federal Regulations. Cn~t Rurd..n > 30%: The extent to which gross housing costs, including ut lily costs, exceed 30 percent of gross income, based on data available from the U.. ensus Bureau. Cn~t Rum..n > 50% (~..v...... Cn..t RUrd..n): The extent to which gross hous ng costs, including utility costs, exceed 50 percent of gross income, based on data avail bl from the U.S. Census Bureau. Ecnnnmic Indap..nn..ncA ann ~pJf_~lIfficiAncy Prngram..: Programs unde n by Public Housing Agencies (PHAs) to promote economic independence and self-s ffi iency for participating families. Such programs may include Project Self-Suffici nc and Operation Bootstrap programs that originated under earlier Section 8 rental certi ca and rental voucher initiatives, as well as the Family Self-Sufficiency program. In ad ition, PHAs may operate locally developed programs or conduct a variety of specia pr jects designed to promote economic independence and self-sufficiency. EldArly Hnu~Ahnld: For HUD rental programs, a one or two person household in hich the head of the household or spouse is at least 62 years of age. I EldArly P......nn: A person who is at least 62 years of age. { Em..r.gAnr,y ~hAlt..r: Any facility with ovemight sleeping accommodations, the p mary purpose of which is to provide temporary shelter for the homeless in gene I r for specific popuiations of the homeless. I Exi..ting HnmAnwn..r: An owner-occupant of residential property who holds leg~1 ti Ie to the property and who uses the property as hislher principal residence. r EYtr..m..ly I nw-Incnm.. Family: Family whose income is between 0 and 30 P~c nt of the median income for the area, as determined by HUD, with adjustments for sm lie and larger families, except tha tHUD may establish income ceilings higher or lower ha 30 percent of the median for the area on the basis of HUD's findings that such variat on are necessary because of prevailing levels of construction costs or fair market r nt . or unusually high or low family incomes. . .Eami4!: See definition in 24 CFR 812.2 (The National Affordable Housing Act definition required to be used in the CHAS rule differs from the Census definition). The Bureau of Census defines a family as a householder (head of household) and one or more other persons living in the same household who are related by birth, marriage or adoption. The term "household" is used in combination with the term "related" in the CHAS instructions, such as for Table 2, when compatibility with the Census definition of family (for reports and data available from the Census based upon that definition) is dictated. (See also "Homeless Family.") Family SAlf-SufficiAnc-.y (FSS) Program: A program enacted by Section 554 of the National Affordable Housing Act which directs Public Housing Agencies (PHAs) and Indian Housing Authorities (I HAs) to use Section 8 assistance under the rental certificate and rental voucher programs, tog'ether with public and private resources to provide supportive services, to enable participating families to achieve economic independence and self-sufficiency. FAdAral Pl"AfArAncp. for Admission: The preference given to otherwise eligible applicants under HUD's rental assistance programs who, at the time they seek housing assistance, are involuntarily displace, living in substandard housing, or paying more than 50 percent of family income for rent. (See, for example, 24 CFR 882.219.) First-TimA HomAhllYAr~ An individual or family who has not owned a home during the three-year period preceding the HUD-assisted purchase of a home that must be used as the principal residence of the homebuyer, except that any individual who is a displaced homemaker (as defined in 24 CFR 92) or a single parent (as defined in 24 CFR 92) may not be excluded from consideration as a first-time homebuyer on the basis that the individual, while a homemaker or married, owned a home with his or her spouse or resided in a home owned by the spouse. EmHA: The Farmers Home Administration, or programs it administers. For RAnt: Year round housing units which are vacant and oftered/available for rent. (U.S. Census definition). For 8::1IA: Year round housing units which are vacant and offeredlavailable for sale only. (U.S. Census definition). Frail EldArty: An elderly person who is unable to perform at least 3 activities of daily living (Le., eating, dressing, bathing, grooming, and household management activities). (See 24 CFR 889.105). Group OuartArs: Facilities providing living quarters that are not classified as housing units. (U.S. Census definition). Examples include: prisons, nursing homes, dormitories, military barracks, and shelters. I:ICME: The HOME Investment Partnerships Program, which is authorized by Titl II of the National Affordable Housing Act. I-InmAIARR Family With Childmn: A family composed of the following types of 0 eless persons: at least one parent or guardian and one child under the age of 18, a pr gnant woman, or a person in the process of securing legal custody of a person under t e ge of 18. I-InmeleRR Person: A youth (17 years or younger) not accompanied by an ad It (18 years or older) or an adult without children, who is homeless (not imprisoned or th rwise detained pursuant to an Act of Congress or a State law), including the following: 1) An individual who lacks a fixed, regular, and adequate nighttime residencf; a d 2) An individual who has a primary nighttime residence that is: I (i) A supervised publicly or privately operated shelter designed t p vide temporary living accommodations (including~welfare hotels, ngr ate shelters, and transitional housing for the mentally ill); (ii) An institution that provides a temporary residence for individuals int n ed to be institutionalized; (iii) A public or private place not designed for, or ordinarily used as, sleeping accommodation for human beings. l-IomeleRR SlIbpoplllatinnR: Include but are not limited to the following cat 0 es of homeless persons: severely mentally ill only, alcohol/drug addicted only, se erely mentally ill and alcohol/drug addicted, fleeing domestic violence, youth, and per on with HIV/AIDS. HO.eE...1: The HOPE for Public and Indian Housing Homeownership Program, wh ch is authorized by Title IV, Subtitle A ofthe National Affordable Housing Act. I-IOPF 2: The HOPE for Homeownership of Multifamily Units Program, authorized by Title IV, Subtitle B of the National Affordable Housing Act. hi h is .I:iO.eE....3: The HOPE for Homeownership of Single Family Homes Program, wh ch is authorized by Title IV, Subtitle C of the National Affordable Housing Act. I-InllRebold; One or more persons occupying a housing unit (U.S. Census d fin tion). See also "Family." HnllAing PrnhlAmA: Households with housing problems include those that: (1) occupy units meeting the definition of Physical Defects; (2) meet the definition of overcrowded; . and (3) meet the definition of cost burden greater than 30%. Table 1C requests nonduplicative counts of households that meet one or more of these criteria. HouAing Unit: An occupied or vacant house, apartment, or a single room (SRO housing) that is intended as separate living quarters. (U.S. Census definition). .I:WD: The United States Department of Housing and Urban Development. I nJ;titr ltionA/lnAtltlltional: Census definition). Group quarters for persons under care or custody. (U.S. JllriAdlr:tinn: A state or unit of general local government. Lal:Qa Family: Family of five or more persons. Lal:Qa RalatAd: A household of 5 or more persons which includes at least one person related to the householder by blood, marriage or adoption. LAad.BaAAd Paint Ha7ard: Any condition that causes exposure to lead from lead- contaminated dust, lead-contaminated soil, lead-contaminated paint that is deteriorated or present in accessible surfaces, friction surfaces, or impact surfaces that would result in adverse human health effects as established by the appropriate Federal agency. (Residential Lead-Based Paint Hazard Reduction Act of 1992 definition). LlHIC.: (Federal) Low Income Housing Tax Credit. , I nw-lnr:omA FamiUAA: Low-income families whose incomes do not exceed 50 percent of the median income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. NOTE: HUD income limits are updated annually and are available from local HUD offices (This term corresponds to very low-income households in the CDBG Program.) MiddIA-lnr:omA Family: Family whose income is between 80 percent and 95 percent of the median income for the area, as determined by HUD with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 95 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. NOTE: HUD income limits are updated annually and are available from local HUD offices (This term corresponds to the moderate-income household in the CDBG Program and to the "moderate income family" under the CHAS statute, 42 U.S.C. 12705). Moderate.lncome Family: Family whose income does not exceed 80 perc nt f the median income for the area, as determined by HUD, with adjustments for s a ler or larger families, except that HUD may estabfish income ceilings higher or lowe th n 80 percent of the median for the area on the basis of HUO's findings that such van tlo s are necessary because of prevailing levels of construction costs or fair market ren , or unusually high or low family incomes. Non.Elderly HouKAhold: A household which does not meet the definition of a " Iderly Household," as defined above. Non.HomAleKK PArKOnK with SpAcial NeAdK: Includes frail elderly persons, pe ons with AIDS, disabled families, and families participating in organized programs t a ieve economic self-sufficiency. i Non.lnKtltlitional: Group quarters for persons not under care or custody. (U'S~C nsus definition used). ' Occupied HouKing Unit: A housing unit that is the usual place ;t residen f the occupant(s). I Other HoliKAhold: A household of one or more persons that does nott the definition of a Small Related household, Large Related household or Elderly Hou eh Id. OthAr Income; Households whose incomes exceed 80 percent of the median in e for the area, as determined by the Secretary, with adjustments for smaller a d I rger ~~~ I Other I ow.lncome' Households whose incomes are between 51 percent an 80 percent of the median income for the area, as determined by HUD, with adjust en for smaller and larger families, except that HUD may establish income ceilings igh r or lower than 80 percent of the median for the area on the basis of HUD's findings t at such variations are necessary because of prevailing levels of construction costs or fai m rket rents, or unusually high or low family incomes. (This term corresponds to m drata- income in the CDBG Program). Other Vacant: Vacant year round housing units that are not For Rent or For S Ie. This category would include Awaiting Occupancy or Held. OvArcmwdAd: A housing unit containing more than one person per room. (u.s. Ce sus definition). Qwnar: A household that owns the housing unit it occupies. (U.S. Census definition. Pen;on With a Di!:;abilit)': A person who is detemnined to: 1) Have a physical, mental or emotional impaimnent that: (i) is expected to be of long-continued and indefinite duration, (ii) substantially impedes his or her ability to live independently, and (iii) is of such a nature that the ability could be improved by more suitable housing conditions; or (2) Have a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-6006); or (3) be the surviving member or members of any family who had a disability at the time of his or her death. Poverty I evel Family: Family with an income below the poverty line, as defined by the Office of Management and Budget and revised annually. Phy..c;ical DefectR: A housing unit lacking complete kitchen or bathroom (U.S. Census definition). Jurisdictions may expand upon the Census definition. PrlmaQl .louRing Activit)': A means of providing or producing affordable housing - such as rental assistance, production, rehabilitation or acquisition - that will be allocated significant resources andlor pursued intensively for addressing a particular housing need. (See also, "Secondary Housing Activity.") Project.RaRed (f?ental) ARRiRtance: Rental Assistance provided for a project, not for a specific tenant. Tenants receiving project-based rental assistance give up the right to that assistance upon moving from the project. Puhlic .louRing ClAP: Program. Public Housing Comprehensive Improvement Assistance Public .louRing MROP: Public Housing Major Reconstruction of Obsolete Projects. Rent Rurden > 30"1. (CORt Burden): The extent to which gross rents, including utility costs, exceed 30 percent of gross income, based on data published by the U.S. Census Bureau. Rent Burden> 50"1. (Severe CORt Burden)" The extent to which gross rents, including utility costs, exceed 50 percent of gross income, based on data published by the U.S. Census Bureau. Rental ARRiRtance: Rental assistance payments provided as either project-based rental assistance or tenant-based rental assistance. RanœI:: A household that rents the housing unit it occupies, including both units rented for cash and units occupied without cash payment of rent. (U.S. Census definition). Renter Occupied Unit: Any occupied housing unit that is not owner occupied, including units rented for cash and those occupied without payment of cash rent. Rural Homele!u:neRR Grant Program: Rural Homeless Housing Assistance P gram, which is authorized by Subtitle G, Title IV of the Stewart B. McKinney 0 eless Assistance Act. SecnndaQf Hal/Ring Activity: A means of providing or producing affordable ou ing- such as rental assistance, production, rehabilitation or acquisition - that will re iv fewer resources and less emphasis than primary housing activities for addressing a pa 'cular housing need. (See also, "Primary Housing Activity.") Section 215; Section 215 of Title" ofthe National Affordable Housing Act. defines "affordable" housing projects under the HOME program. Service NeedR: The particular services identified for special needs populatio s, which typically may include transportation, personal care, housekeeping, counselin, eals, case management, personal emergency response, and other services t p vent premature institutionalization and assist individuals to continue living independe Iy. SeverA CaRt Bumen: See Cost Burden> 50%. Server Mental IIIneRR: A serious and persistent mental or emotional impai significantly limits a person's ability to live independently. Sheltered; Families and persons whose primary nighttime residence is a s pe ised publicly or privately operated shelter, including emergency shelters, transitiona h using for the homeless, domestic violence shelters, residential shelters for runa a and homeless youth, and any hoteVmotel/apartment voucher arrangement paid be u e the person is homeless. This temn does not include persons living doubled p or in overcrowded or substandard conventional housing. Any facility offering p mn nent housing that is not a shelter and its residents are not homeless. Small Related; A household of 2 to 4 persons which includes at least one pers to the householder by birth, marriage, or adoption. SubRtandam Condition' Unit that is substantially lack of any of the following: r of, walls and windows that do not leak; working plumbing or gas facilities; water supply 0 h t and cold running water connected to a sewage disposal system; heating system th t orks; electrical lighting and wiring in working order; building and grounds kept clean, sa itary, free from garbage, rodents, and vemnin; adequate number of garbage cans or u pster in good repair, floors, stairways and railing in good repair, and other s nards established by the state or local codes. SubRtandard Suitable for Sl/hRtantial Rehahilitatinn' Units with conditions th tare found to be substandard are where the value of the units constitute 25 percent of th after rehabilitation value of the units, inclusive of the land value. SlIhlttantial Amendment: A major change in an approved housing strategy. It involves a change to the five-year strategy, which may be occasioned by a decision to undertake activities or programs inconsistent with that strategy. SlIhlttantial Rehahilitatinn: Rehabilitation of residential property at an average cost for the project in excess of $25,000 per dwelling unit. SlIppnrtive Hnlllting: Housing, including Housing Units and Group Quarters, that have a supportive environment and includes a planned service component. SlIppnrtive Servir:e Need in FSS Plan: The plan that PHAs administering a Family Self- Sufficiency program are required to develop to identify the services they will provide to participating families and the source of funding for those services. The supportive services may include child care; transportation; remedial education; education for completion of secondary or post secondary schooling; job training, preparation and counseling; substance abuse treatment and counseling; training in homemaking and parenting skills; money management, and household management; -counseling in homeownership; job development and placement; follow-up assistance after job placement; and other appropriate services. SlIppnrtive Servicelt: Services provided to residents of supportive housing for the purpose of facilitating the independence of residents. Some examples are case management, medical or psychological counseling and supervision, childcare, transportation, and job training. Tenant.Balted (Rental) A!;ltjlttance: A fomn of rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. The assistance is provided for the tenant, not for the project. Tntal Var:ant Hnlllting lJnit!;: Unoccupied year-round housing units. (U.S. Census definition). Tranltitinnal Hnlllting: A project that is designed to provide housing and appropriate supportive services to homeless persons to facilitate movement to independent living within 24 months, or a longer period approved by HUD. Unltheltered: Families and individuals whose primary nighttime residence is a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings (e.g., streets, parks, alleys). Var:ant Awaiting Or:clIpanr:y nr Held: Vacant year round housing units that have been rented or sold and are currently awaiting occupancy, and vacant year round housing units that are held by owners or renters for occasional use. (U.S. Census definition). Var:ant Hnlllting Unit: Unoccupied year-round housing units that are available or intended for occupancy at any time during the year. Won;t-CaseNeeds: Unassisted. very low-income renter households who payor than half of their income for rent, live in seriously substandard housing (which in ludes homeless people) or have been involuntarily displaced. Year Round Housing Units: Occupied and vacant housing units intended for y ar und use. (U.S. Census definition). Housing units for seasonal or migratory use are xci ded. ------- -..,---_.. -'-"--"-'-'----'---.-., ._- .-..-- - - -----, - B. City of Tustin Census Tracts .I!! c g :¡:: ... III I- ~ III .... ::I 0 ~ ~ CD .- 0 0 j! ~~ It .S! ~rò~ dL~j ] ~~ .. s;!!...._"..........- "1iI1! .::8~"="""==P:Sal;¡¡" 1:1888 8888!!i'-~~~ 0' ""\" I" '- :....~f":. 1~ :~. .l.~,:¡;.< II ~..... '" ... '. ~ '" ". i~ói '" L. i ,..:¡¡; .... ,,;,:~ 8 ,. .. " .: ~ ~ Iii .. .:: :;; C. Affordability Gap Analysis D. Agencies Contacted Agencies Invited to Participate in Community Planning Process Kelsey Winn Andrew Hamilton Ginny Hovland 23421 South Pointe Drive, #170 13571 Pawnee 14890 Chesnut Laguna Hills, CA 92653 Tustin, CA 92782 Tustin, CA 92780 Goldie Nannes 275 E. Sixth Street, #114 Tustin, CA 92780 Becky Johnson Alliance for the Mentally III 621 S. "B" Street, Suite B Tustin, CA 92780 Pat Davis Big Brothers & Sisters of OC 14131 Yorba Street Tustin, CA 92780 Susan Knopick Children's Bureau of So. Calif. 50 S. Anaheim Boulevard Ananheim, CA 92805 Margot Carlson Community Services Programs 1821 East Dyer Road, Suite 200 Santa Ana, CA 92705 Dayle Mcintosh Center 150 W. Cerritos, Bldg. 4 Anaheim, CA 92805 Gilbert Marquez Easter Seal Society, Inc. 1801 E. Edinger # 190 Santa Ana, CA 92705 Elizabeth Pierson Fair Housing Council of O.C. 201 S. Broadway Santa Ana, CA 92701 Nathan Menard 345 W. Sixth Street Tustin, CA 92780 Melinda Guinaldo Assessment & Treatment Services Center 1981 Orchard Road Newport Beach, CA 92660 Cliff Polston Boys & Girls Club of Tustin 580 W. Sixth Street Tustin, CA 92780 Elmer Hothus Christian Temporary Housing Facility 704 N. Glassell Street Orange, CA 92867 Karen Weisenberger Consumer Credit Counseling Service P.O. Box 11330 Santa Ana, CA 92711 Jerry Caminiti Disability Awareness Coalition 3773 University Drive, #118 Irvine, CA 92612 Rowana McCoy Easter Seal Society, Inc. 1661 N. Raymond Ave., Suite 100 Anaheim, CA 92801 Teresa Lu Family Outreach Center 210 N. Malden Fullerton, CA 92832 Maria Marquez Adult Mental Health Services 405 W. Fifth Street, Suite 550 Santa Ana, CA 92701 Assistance League of Tustin P.O. Box 86 Tustin, CA 92780 Lynne Tsuda Central Orange County YWCA 146 North Grand Street Orange, CA 92866 Helen Brown Civic Center Barrio 1665 E. 4th Street, #210 Santa Ana, CA 92701 Vernon Plaskett Continuing Development, Inc. 851 E. Hamilton Avenue, Suite 200 Campbell, CA 95008 Kathleen Burnham Drug Court Foundation 22471 Aspan Street, Suite 103 Lake Forest, CA 92630-1644 Dr. Karl Ullrich Episcopal Service Alliance 1408 E. Katella Avenue Anaheim, CA 92805 John Drew Family Solutions 203 N. Golden Circle Drive, #101 Santa Ana, CA 92705 Ret Wixted Feedback Foundation, Inc. 1200 N. Knollwood Circle Anaheim, CA 92801 Lucy Santana Girls Incorporated of Orange County 1815 Anaheim Avenue Costa Mesa, CA 92627 Helen Anderson Hunger Coalitions 14452 Wildeve Lane Tustin, CA 92780 Carol Anne Williams Interval House P.O. Box 3356 Seal Beach, CA 90740 Brenda Martin Laurel House 13722 Fairmont Way Tustin, CA 92780 Legal Aid Society of Orange County 902 N. Main Street Santa Ana, CA 92701 Roger Moore Lutheran Social Services of Southern Calif. 704 N. Glassell Street Orange, CA 92867 Joan Basile Mary's Shelter 17671 Anglin Lane Tustin, CA 92780 Doug Bistry O.C. Affordable Housing 23861 EI Toro Road, Suite 207 Lake Forest, CA 92640-4733 Suzanne Guthrie Four HClubs of Orange County 1045 Arlington drive Costa Mesa, CA 92626 Joe Monzon HUD 1600 N. Broadway Santa Ana, CA 92706 Mary Hadley Info Line Orange County 2081 Business Center Drive, suite 130 Irvine, CA 92715 Clyde Weinman Irvine Temporary Housing 6427 Oak Canyon Irvine, CA 92620 Joyce Riley Leaming Disabilities of Southem Calif. P.O. Box 25772 Santa Ana, CA 92799 Sherry McCulley Legal Aid Society of Orange County 902 N. Main Street Santa Ana, CA 92701 Mardan Center of Educational Therapy 1 Osbom Irvine, CA 92604 Larry Haynes Mercy House Transitional Living Ctr. P.O. Box 1905 Santa Ana, CA 92702 Allen Baldwin OC Community Housing Corp. 1833 E. 17th Street, Suite 207 Santa Ana, CA 92701 Colin Henderson Friendship Shelte , Inc. P.O. Box 425 Laguna Beach, C 92652 Larry Levinso Interfaith Interi South O.C. P.O. Box 2487 Laguna Hills, A 2654 Lila Lieberthal Jamboree Ho sin Corp. 2081 Busines C nter Drive Irvine, CA 927 4 Dr. Karen Eb rso e Mary's Shelter P.O. Box 1043 Santa Ana, C 9211-0433 Susan Alexan er New Horizons 13821 Newpo A enue, #200 Tustin, CA 92 80 Pamela McGo e OC Council of gi g 18552 McArth r oulevard, #425 Irvine, CA 927 5 Elaine Lintner OCSPCA-Paws 5660 Avenida Antigua Yorba Linda, CA 92687 Robyn Class Orange Children & Parents Together 3530 E. Chapman Avenue Orange, CA 92869 Orange County Homeless Issues Task Force 1833 E. 17th Street Santa Ana, CA 92705-8629 Kelli Bourne Prevent Child Abuse of Orange County 1431 Warner Avenue, #D Tustin, CA 92780 Michael Manchester Project Independent 1305 W. Cadillac, # P101 Costa Mesa, CA 92626 Jean Wegener Serving People in Need 2900 Bristol St., Suite H-106 Costa Mesa, CA 92626 Jean Mead South Coast Singers 30025 Alicia Parkway #165 Laguna Niguel, CA 92677 Mary Atkinson Smith The Blind Children's Learning Center 18542-B Vanderlip Avenue Santa Ana, CA 92705 Doris La Magna The Villa Center, Inc. 910 North French Santa Ana, CA 92701 Beverly Nestande Olive Crest Homes 2130 E. Fourth Street, Suite 200 Santa Ana, CA 92705 Orange Coast Interfaith Shelter 1963 Wallace Street, Apt. A Costa Mesa, CA 92627 Bob Winandy Pilgrimage Family Therapy 25332 Cabot Road, Ste. 207 Laguna Hills, CA 92653-5521 Probation Community Action Assoc. 1111 N. Main Street, #176 Santa Ana, CA 92701 Warren Johnson Salvation Army 10200 Pioneer Road Tustin, CA 92780 Jim Miller Shelter for the Homeless 15161 Jackson Street Midway City, CA 92655-1432 Chris Keena St. Vincent de Paul 2525 N. Grand Avenue, #N Santa Ana, CA 92705 Kimberlee White The Eli Home, Inc. 3128 E. Chapman Avenue Orange, CA 92869 Millie Palomino The Wellness Community- Orange County 540 N. Golden Circle Drive #315 Santa Ana, CA 92705 Operation Clean Slate 1578 Minorca Drive Costa Mesa, CA 92626 Maria Marquez Orange County Health Care Agency 405 W. Fifth Street, Suite 550 Santa Ana, CA 92701 Amanda Mequet Pilgrimage Family Therapy Center 25332 Cabot Road #207 Laguna Hills, CA 92653 Michael Manchester Project Independence 3505 W. Cadillac Costa Mesa, CA 92626 Dr. Joseph Banderhoft Serenity Recovery Center 14511 Carfax #C Tustin, CA 92780 Thomas Whaling Shelter for the Homeless 24621 Ridgewood Circle Lake Forest, CA 92630 Jon Schlemmer St. Vincent de PaUl Center for Reconciliation 2525 N. Grand Avenue, #N Santa Ana, CA 92703 Julie Damon The Seed Institute 6271 Tarssa Lane Mission Viejo, CA 92691 Nicole Think Together 2001 E. Fourth Street #200 Santa Ana, CA 92705 Randy Barth THINK Together 2001 E. Fourth Street, #200 Santa Ana, CA 92705-3916 Louise Romano Tustin Acts for Families and Youth (TAFFY) 17291 Irvine Boulevard #165 Tustin, CA 92780 Jim Lynch Tustin Chamber of Commerce 399 EI Camino Real Tustin, CA 92780 Veteran's Service Dept. 4220 Lemon Street Riverside, CA 92501 Stella Gerk Women Helping Women 711 W. 17th Street, Suite A10 Costa Mesa, CA 92627 Holly Harris YMCA of North Orange County Beyond Shelter 215 E. Commonwealth Avenue, Suite F Fullerton, CA 92832 Sandra Espadas O.C. Human Relations 1300 S. Grand Avenue, Building B Santa Ana, CA 92705 Suzanne Hoehl Think Together 2001 E. Fourth Street, #200 Santa Ana, CA 92705-3916 Barbara Benson Tustin Area Council for Fine Arts P.O. Box 145 Tustin, CA 92781 JoAnn Ruden Tustin Public School Foundation 17411 Irvine Boulevard, #1 Tustin, CA 92780 Susan Aguilar WeTip Inc. P.O. Box1296 Rancho Cucamonga, CA 91729 Stephanie Camargo Working Wardrobe 12914 Haster Street Garden Grove, CA 92840 Adrienne Stokols YMCA of Orange County 13821 Newport Avenue #200 Tustin, CA 92780 Alan Witchey AIDS Services Foundation 17982 Sky Park Circle, Suite J Irvine, CA 92614-6408 Susan Stokes Tuming Point Ce ter for Families 2101 E. 4th S ree, #150-8 Santa Ana, C 9 705-3814 Donald Taylor Veteran Chari es f Orange County 201 S. Sulliva Santa Ana, C Bob Lombard WeTip, Inc. P.O. Box 1296 Rancho Cuca on a, CA 91729 Francoise Ayl er Alzheimer Ass ci ion of O.C. 2540 N. Santia 0 oulevard Orange, CA 9 86 AGENCIES SUPPLYING STATISTICAL DATA )epartment of Housing and Urban Development (HUD) :alifomia Department of Alcohol and Drug Programs Jcensing and Certification Branch :alifornia Department of Social Services :::ommunity Care licensing Division !Vea Agency on Aging :::ounty of Orange 1300 S. Grand Avenue, Building B Santa Ana, CA 92705 Orange County Housing Authority (OCHA) 1770 North Broadway Santa Ana, CA 92706-2642 Orange County Health Care Agency Financial and Administrative Services (Lead Poisoning) Custodian of Records P.O. Box 355 Santa Ana, CA 92702 Orange County Health Care Agency Orange County HIV Planning Council P.O. Box 6128 Santa Ana, CA 92706-0128 Orange County Health Care Agency Behavioral Health Services Adult Mental Health Services 405 West 5111 Street, Suite 550 Santa Ana, CA 92701 Tustin 2005-2010 Consolidated Plan Section VII - Appendix E. Legal Notices and Resolutions Tustin 2005-2010 Consolidated Plan Section VII - Appendix CONmfUmTYDEVELOPMENT BLOCK GRANT FISCAL YEAR 2005-2010 CONSOLIDATED PLAN FY 2005-06 FUNDING ALLOCATION AND ACTION PLAN Notice is hereby given that the City CoWlcil of the City of Tustin, California, will hold a public hearing on May 2, 2005 at 7:00 p.m. in the CoWlcil Chambers located at 300 Centennial Way, Tustin, California. The purpose of the meeting is to review and approve the FY 2005-2010 Consolidated Plan and the proposed use of CDBG funds for Fiscal Year 2005-06 for inclusion into the FY 2005-06 Action Plan for submission to the U.S. Department of Housing and Urban Development. The Housing and Community Act of 1974, as amended, established the Community Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing adequate housing, suitable living environment, and by expanding economic opportunities, specifically for low- and moderate- income persons. BUD has notified the City that the amoWlt for CDBG allocation for fiscal year 2005-06 will be $923,725. FY 700'-7010 C".nnonlit!AtpA PlAn To receive CDBG funds, the U.S. Department of Housing and Urban Development (HUD) requires jurisdictions to prepare a "Consolidated Plan," a five-year planning document intended to identify a community's overall need for affordable and supportive housing, connnunity development programs, social services and economic opportunities for low- and moderate-income persons. The Plan also outlines a five-year strategy to meet those needs and identifies resources and programs that would address them. I'rnpn..t! IT.. nfC".nRn Flint!. Ant! A~tinn Pion for F;.~AI V.or 700,-O~ The One-year Action Plan, a section of the Consolidated Plan, serves as the City of Tustin's application to BUD for CDBG monies. The City must submit an Action Plan annually for each of the five years covered by the Consolidated Plan. The purpose of the Action Plan is to detail exactly how the City will spend its annual allocation of funds to meet community needs identified in the Consolidated Plan. On February 16, 2005, the Citizen Participation Committee conducted a public meeting and prepared a City Council recommendation to adopt a program budget for fiscal year 2005-06 to fund activities that will be undertaken during the program year, using as a base all CDBG entitlement funds which will be available at the start of the fiscal year. If you challenge the subject items in court, you may be limited to raising ouly those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Tustin at, or prior to, the public hearing. If you require special accommodations, please contact the City Clerk at (714) 573-3025. Infonnation relative to this item, including a list of proposed projects, is on file in the Community Deveiopment Department and is available for public review at City Hall. Anyone interested in the infonnation above may call the Community Development Department at (714) 573-3 I 74. Pamela Stoker City Clerk Published: Tustin Weekly April 21, 2005. Tustin 2005-2010 Consolidated Plan Section VII - Appendix AFFIDAVIT OF PUBLICA nON STATE OF CALIFORNIA, ) ) ss. County of Orange ) I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of The Tustin News, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California, on August 24, 1928, Case No.A-601 in and for the City of Tustin, County of Orange, State of California; that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: March 17, 2005 "I certify (or declare) under the penalty of peljury under the laws of the State of California that the foregoing is true and COITect": Executed at Santa Ana, Orange County, California, on Date: March 17,2005 The Tustin News 625 N. Grand Ave. Santa Ana, CA 92701 (714) 796-7000 ex!. 2209 ~ -------- --,_...._--,---------,.._-, Proof Df PublicaDDn nf AFFIDAVIT OF PUBLICA nON STATE OF CALIFORNIA, ) ) ss. County of Orange ) I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of The Tustin News, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California, on August 24, 1928, Case No. A-60l in and for the City of Tustin, County of Orange, State of California; that the notice, ofwbich the annexed is a true printed copy, bas been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: February 3, 2005 "I certify (or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and colTect": Executed at Santa Ana, Orange County, California, on Date: February 24, 2005 (}.~u... , .~. Slgnatar , The Tustin News 625 N. Grand Ave. Santa Ana, CA 92701 (714) 796-7000 ext. 2209 ~ PROOF OF PUBLICA nON RECEIVED FEB - 7 2005 BY CITY CLERK'S OFFICE Proof of Publication Df F. Summary of Citizen Comments Tustin 2005-2010 Consolidated Plan Section VII - Appendix, ----~----- ----, --- ---,-,------- No public comments were received during the review period. Tustin 2005-2010 Consolidated Plan Section VII- Appendix Tustin 2005-2010 Consolidated Plan G. Monitoring Program Section VII - Appendix CITY OF TUSTIN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUBRECIPIENT ON-SITE MONITORING PROCESS MONITORING CHECKLIST Goal: To standardize the review process for on-site monitoring visits to CDBG Subrecipients during program year. Objectives: To ensure that all Subrecipients are monitored in important areas of program administration and regulatory compliance. 1.0 SUBRECIPffiNT INFORMATION: 1.1 Name of Subrecipient: 1.2 Program/Activity description: 1.3 Project Location: 1.4 Eligibility (Enter CDBG Citation): National Objective: 0 Area Benefit 0 Limited Clientele 0 Job Retention 0 SlumlBlight Area Basis 0 Slum/Blight Urban Renewal 1.6 Local Objective: 1.7 Date of On-Site Monitoring Visit: 1.8 Location of On-Site Visit: 1.5 0 Housing 0 Job Creation 0 Slum/Blight Spot Basis 0 Urgent Needs 1.9 Name/Title of Person Interviewed: 2.0 PERFORMANCE EVALUATION REVIEW: 2.1 Contract Objectives: 2.2 Contract Statement of Work: Monitoring Checklist City of Tustin Page 1 of 12 2.3 Contract/Project Schedule: From: To: 2.4 Conttact Budget: 2.6 a. What activities are outlined within the Agreement? b. Describe the actual program and how the actual CDBG funds are used: Summary: The activities actually funded with CDBG funds are consistent K 'fth zetivities outlined within agreement with City? a Yes a No If No, Explain: - 2.7 a. What is the cuxrent status of the project? b. Will the CDBG funds be expended by the termination of the Agreement? 0 Yes 0 No Summary: The actual progress on completing CDBG funded activities/tasks ~c nsistent with schedule outlined with the agreement with City? a Yes aNo If No, ¡XpL un:- 2.8 a. CDBG funds are used for what expenditures? (i.e. staff salaries, constr cti n costs, operating expenses, etc) b. Are the expenditures consistent with the program/project outlined in the Ag eement? (i.e. public services, public improvement and facilities, handicapped ace ssibility improvement, etc) 0 Yes DNo If No, Explain: Monitoring Checklist City of Tustin ¡Pag 2 of 12 "-- 2.9 2.10 a. Summary: The actual expenditures of CDBG funds are consistent wüh funds allocated by the City as outlined wühin the agreement wüh City. [J Yes [J No If No, Explain: Accomplishments . a. Number of participants: Number of Tustin residents: Other significant accomplishments: b. c. Has the organization violated any Federal regulations related to the CDBG program? 0 Yes 0 No If Yes, Explain: b. Is the organization working towards positive progress in the completion of the CDBG funded activity in meeting the National and Local objectives of the CDBG program? 0 Yes 0 No If No, Explain c. Summarize of any other deficiencies noted in performance of the Subrecipient: - 2.11 Summary of Corrective ActionslDeadlines: Monitoring Checklist City of Tustin Page 3 of 12 2.12 Technical Assistance Needed: D Yes 3.0 RECORD-KEEPING SYSTEMS: D No 3.1 a. Are the following records maintained by the Subrecipient to provide: 1. A full description of the activities assisted with CDBG funds; DYe 2. 3. DNo The activity meets one of the national objectives; 0 Yes 0 No Determinations have been made for a1l eligibility requirements; D Ye D No Evidence of compliance with federal regulations for acquisition, d'spl cement, relocation and replacement housing if applicable; DYes D No D N/A 4. 5. Evidence of compliance with federal requirements specified in Sub CPR Part 570 if applicable; D Yes D No D NI A 6. ::¿. 8. Characteristics and location of beneficiaries; DYes D No Allowability of costs; DYes D No The status of the caselproject DYes D No b. How is cwnulative data on its activities compiled for inclusion in periodi r Summary: The Subrecipient's filing system is orderly, comprehensive and up- 0 G Yes G No If No, Explain: 3.2 a. b. Where are the files/records stores: Who has access to the records? c. How are fileslrecords secured? (i.e. cabinets locked, limited access) K of 24 e. Summary: The Subrecipient has appropriaJe procedures in place to en re the confidentiality/safety of records? G Yes GNo If No, Explain: Monitoring Checklist City of Tustin ag 4 of 12 3.3 Where are individual client files kept? Where are program files kept? Where are financial records kept? a. b. c. Summary: The Subrecipient records stored in a location which provides for easy access/availabüity in terms of review by appropriaJe agencies. [J Yes [J No If No, Explain: 3.4 b. - Is the subrecipient aware of the regulations minimum oftbree years? DYes D No How long does the subrecipient retain records? How are they store/retained? a. for the retention of records for a c. Summary: The Subrecipient has procedures in place to retain records relaJed to the CDBG funding for a minimum of three (3) years? [J Yes [J No If No, Explain: - 3.5 a. How does the Subrecipient separate its CDBG expenditures from other expenditures? Summary: The Subrecipient has procedures in place to identify CDBG relaJed expenses from its other expenditures? [J Yes [J No If No, Explain: Monitoring Checklist Page 5 of 12 City of Tustin 3.6 The Subrecipient is maintaining adequate records of all required informa . n, information on income characteristics of beneficiaries, racial/ethnic groups b in served, and number and type of households being served? 0 Yes 0 No UNo, Ex I . : - 3.7 Is the Subrecipient maintaining documentation such as time sheet for charg s salaries and wages? 0 Yes D No If No, Explain: award 4.0 FINANCIAL MANAGEMENT SYSTEM: 4.1 a. Does the system of internal controls include specified job responsibiliti s, system of authorization and supervision, separation of duties, qualified over access to assets, bank forms, and other confidential documents, reconciliation? 0 Yes 0 No fonnal b. Do the accounting records adequately identify the sources and applicati n 0 CDBG funds? 0 Yes CI No c. Are the costs being reimbursed by CDBG funds allowed under the CD G rules and regulation? (i.e. reasonable, necessary, and directly related to e CI Yes CI No d. Does the subrecipient maintain control over the budget for the C B activity? (i.e. comparison of budget with actual expenditures) CI Yes e. Is there a system which projects the cash needs of the subrecipient and time between the receipt of funds to the actual disbursements of funds? Monitoring Checklist City of Tustin 4.2 4.3 0 Yes 0 No f. Does the subrecipient provide a financial report which shows the amount budgeted for each CDBG activity, reimbursements received to date, actual expenditures for the current period and to date, and current encumbranceslobligations in addition to expenditures? 0 Yes 0 No g. What were the results of the independent audit, if required? Summary: Are the Subrecipient's accounting policies and procedures consistent with federal regul@ons? a Yes a No If No, Explain: a. Is a cash receipts journal kept? Does the cash receipts journal show when funds are received, in what amounts and from what sources? 0 Yes 0 No b. Is a cash disbursements journal kept? Does the cash disbursements journal document when the expenses were incurred, how much was spent, to whom it was paid, and for what purpose? 0 Yes 0 No c. Is a payroll journal kept? Does the payroll journal document expenses on salaries and benefits, and distinguishes different categories? 0 Yes 0 No Summary: Does the Subrecipient's financial management system provide for an accuraie accounting of revenues and expenditures? a Yes a No If No, Explain: a. Is the Information transferred into a general ledger? (The general ledger summarizes in chronological order the activity and financial status of all the accounts of an Monitoring Checklist City of Tustin Page 7 of 12 4.4 a. 4.5 organization) DYes D No b. Do the accounting records contain reliable and up-to-date informatio sources and uses of funds, including: 1. Grant received? DYes D No 2. Current Authorizations and obligations of CDBG funds? DYes 3. Unobligated balances? DYes D No 4. Assets and liabilities? DYes D No 5. 6. Program Income? DYes D No Actual outlays and expenditures? DYes D No c. Posting and trial balances are performed on a regular basis? DYes D 0 Summary: Do the Subrecipient's accounting records provide for accuraJe, complete disclosure of financiol results? [j Yes [j No If No, Explain: Does the subrecipient maintain files of original sources documentati n eceipts, invoices, canceled checks, etc) for all fmancial transactions? DYes N Summary: Are all costs supported by appropriate documentaJion (i.e., expe se eceipts, time-sheets, cost allocation plans, etc)? [j Yes [j No If No, Explain: a. Does the subrecipient receive program income? DYes D No b. Does the subrecipient ensure that all the program income is used £ r ermitted activities and that such program income is expended before reque tin further reimbursement from the CDBG funds for the same activity? D Yes DIN I Monitoring Checklist City of Tustin Ipag 8 of 12 4.6 a. b. 4.7 a. Summmy: Are appropriate procedures in place to accou1Ú for program income relaJed to the use ofCDBGfunds? a Yes aNo Explain: Has the independent audit been submitted? 0 Yes 0 No Is the City on the mailing list for receipt of the independent audit? 0 Yes 0 No Summary: Is the Subrecipient required to submit an independe1Ú financial audit to the City? a Yes a No If so, have proper arrangeme1Ús been made to conduct the audit? a Yes a No Explain Is the subrecipient aware of the regulations for the use of real or personal property to meet the national objectives of the CDBG program? 0 Yes 0 No b. Is the subrecipient aware of the regulations for the disposition of real or personal property when such property is no longer necessary for the CDBG funded activity?- 0 Yes 0 No c. What procedures are in place for the disposition of any real or personal property acquired in part or in whole with CDBG funds? Summary: Does the Subrecipie1Ú have appropriate procedures in place to allow for reversion of assets as related to the use of CDBG funds? a Yes a No Explain: - Monitoring Checklist City of Tustin Page 9 of 12 5.0 ANTI-DISCRIMINATION: Does the subrecipient have employment guidelines or policies to s e equal employment opportunities to all persons regardless of race, color, nat 0 origin, sex or handicap? 0 Yes 0 No 5.1 a. Does the subrecipient maintain data indicating the racial/ethnic bar cter of employees of a program funded in whole or part with CDBG funds? 0 es 0 No b. If applicable, does the subrecipient maintain documentation of the act ons the subrecipient has carried out with its resources to remedy or ameliorate y c nditions limiting fair housing choice in th~community or other actions which de 0 trates its support of fair housing? 0 Yes 0 No c. d. Does the subrecipient allow participation in the program regardless of rac , color, national origin, sex or handicap? 0 Yes 0 No e. Does the subrecipient reasonably accommodate limited by a handicap? 0 Yes 0 No If applicable, does the subrecipient take affinnative steps to assure businesses and women's business enterprises have an equal opportuni 'es or compete for contracts and subcontracts as sources of supplies, ipment, construction, or services? 0 Yes 0 No f. Summary: Does the Subrecipient have appropriate procedures in place for Non-discrimination? Equal Employment Opportunities? Fair Housing 0 Access to disabled? Opportunities for Women and Minority Business Ente t:1 Yes a No Explain: Monitoring Checklist City of Tustin Pa e 10 of 12 5.2 a. Is the subrecipient aware that they are prohibited from using CDBG funds to finance the use of facilities or equipment for religious purpose or to engage in other religious activities? 0 Yes 0 No b. What procedures are in place to prohibit such activity? Summary: Does the Subrecipient have appropriate procedures in place to prohibiJ religious activities as reloJed to the use of CDBG funds? {j Yes {j No Explain: - 5.3 a. Is the subrecipient aware that they are prohibited from using CDBG funds to finance the use of facilities or equipment for political purposes or to engage in other partisan political activities, such as voter registration, sponsoring candidate forums, etc. 0 Yes 0 No b. What procedures are in place to prohibit such activities? Summary: Does the Subrecipient have appropriate procedures in place to prohíbü use of CDBG funds for lobbying or other political activities? {j Yes {j No If No, Explain: - 6.0 MISCELLANEOUS COMMENTS/CONCLUSIONS: Are there other issues that have not yet been addressed? Monitoring Checklist City of Tustin Page 11 of 12 ON-SITE MONITORING VISIT CONDUCTED BY: Signature Name Date Title SUBRECIPffiNT OFFICIALS CONTACTED (Name & Title): Signature Signature Name Name Title Title Date Date IW,\CDBGImonitor.cId .." 5/28/98 Monitoring Checklist City of Tustin !Pag 12 of 12 i H. Affordable Housing Ordinances Tustin 2005-2010 Consolidated Plan Section VII - Appendix ORDINANCE NO. 1279 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CAUFORNIA, AMENDING ARTICLE 9, CHAPTER I, GOVERNING INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING The City Council Of the City ofTustin hereby ordains as follows: SECTION 1. PURPOSE. The Purpose of this ordinance is to amend the City's Affordable Housing Development Incentive provisions: (1) to comply with the California Legislature's 2002 Amendment of Govemment Code Section 65915 governing incentives for lower income housing units; and (2) to comply with other changes in state law applicable to affordable housing. SECTION 2. Chapter 1 of Article 9 of the Tustin Municipal Code. Tille 9, Chapter 1, of the Tustin Municipal Code entitled, Incentives for the Development of Affordable Housing, is hereby amended in Its entirety es set forth below: CHAPTER I INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING CHAPTER INDEX PART I GENERAL 9111 PURPOSE AND INTENT 9112 DEFINITIONS PART 2 INCENTIVES/ASSISTANCE 9121 REQUIRED INCENTIVES 9122 OPTIONAL ADDITIONAL ASSISTANCE PART 3 DEVELOPMENT REQUIREMENTS 9131 STANDARO REQUIREMENTS 9132 LOCATION OF TARGET UNITS PART 4 APPLICATION AND REVIEW 9141 APPLICATION REQUIREMENTS AND REVIEW 9142 HOUSING INCENTIVE AGREEMENT CHAPTER I INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING PART I GENERAL 9111 PURPOSE AND INTENT The purpose of this Chapter is to provide incentives for the production of housing for very low, lower income, moderate' income or senior citizens In accordance with California Law pertaining to Density Bonuses. 1/1e intent of this Chapter is to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the City's Housing Bement. The regulations and procedures set forth ,in this Chapter shali apply throughout the City with the exception of areas IdentifieQ as "East Tustin Specific Plan' and 'MCAS Tustin Specific Plan Area," except Planning Areas 4, 5, and Parcel 35 of Plsnning Area 21. Sections of the California Govemment Code referenced in this Chapter and application forms for complying with this Chapter, shall be available to the public. Ordinance No. 1279 Page 1 019 ----~---- 9112 DEFINITIONS Whenever the following terms ere used in this Chapter, they shall have the meaning established by this section: ' "Affordable Hous/ng cosr, means as defined in Health and Safety Code Section 50052.5. The term applies to for-sale unlls. In the Housing Incentive Agreement, in its sole discretion, the City or Agency, as applicable, shall exercise the options specified in Section 50052.5(b)(3) and/or (4), and if the Department of Housing and Community Development adopts regulations pursuant to Section 50052.5(c), the City or Agency, as applicable, shali consider the regulations for purposes of determining Affordable Housing Cost. "Affordable Rent" means as defined In Health and Safety Code Section 50053. The term applies to rental units. "Applicant" means a developer or owner who desires to construct fIVe or more dwelling unlls. "CrmcessÍDn or Incentive" means the concessions and incentives as specified in Califomia Government Code Section 65915ú): 1. A reduction in site development standards of a modification of zoning code requirements or archllectural design requirements which exceed the minimum building standards approved by the State Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Heellh end Safety Code, Including, but not limited to, a rèãuctlon in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required; or 2. Approval of mixed use zoning in conjunction wllh the housing project if commercial, office, industrial, or othar land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or plannad develoPment in the area, including the City's General Plan, where the proposed housing project will be located; or 3. Other regulatory Incentives or concessions proposed by the Applicant or the City which result in identifiable and actual cost reductions. "Density Bonus" means a density Increase of twenty-five (25) percent over the otherwise Maximum Allowable Residential Density, (unless the Applicant elects a lower percentage) for Housing Developments meeting the criteria of Section 9121a.(1)-(3) and of at least ten (10) percent. (unless the Applicant elects a lower percentage), for Housing Developments meatlng the criteria of Section 9121a.(4). For purposes of calculating the number of Density Bonus Units to be granted, the Maximum Allowable Residential Density for the site shall be multiplied by .25 or by .10 as applicable for either the twenty-five (25) percent or ten (10) percent density bonus. When calculating the number of permitted Density Bonus Units, any fractions of units shall be rounded to the next larger integer. "Density Bonus Units" means those residential units granted pursuant to the provisions of this Chapter which exceed the otherwise Maximum Allowable Residential Density for the development sIleo "Deve/opment Stendards" means any ordinance, general plan element, specJflc plan, charter amendment, or other local condition, law, policy, resolution, or regulation, including minimum lot size, side yard setbacks, and placement of public improvements. "D/rectot' means the City's Director of Community Development or designee. Ordinance No. 1279 Page 2 of9 "Housing Development' means one or more groups of projects for residential units constructed In the planned development of the City. 'Housing development' elso includes etther (1) a project to substantially rehabilitate and convert an existing commercial building to residential use, or (2) the substantial rehabilitation of an existing multifamily dwelling, as defined In subdivisio~ (d) of Government Code Section 65863.4, where the resutt of the rehabilitation would ba a nat increasa in availabla residential units. For the purpose of calculating a density bonus, the residential units do not have to be based upon Individual subdivision maps or parcels. The density bonus shall be permitted In geographic areas of the Housing qeveJopment other than the areas where the units for the lower incoma households are located. The location of units, whether Target Units or Non-Restricted Units, shall be In conformance with the Specific Plan, or other zoning regulations, as applicable. "Housing Incentive Agreemenf means a legally binding agreement between an Applicant and the City and/or the Redevelopment Agency to ensure that the requirements of this Chapter are satisfied. The agreement among other things, shall establish the number of Target Units, size, location, terms and conditions of affordabillty, and production schedule and may be part of a larger Disposition and Development or Regulatory Agreement 'Incentives or Concessions of Equivelsnt FinencJeJ Velus' means a regulatory Incentive, approved by the City CounCIl based on the land cost per dwelling unit of development The value of the density bonus with the one regulatory Incentive or Concession is determined by the difference In the costs of the land with and without the density bonus and regulatory Incentive or Concession. 'Lower Income Household" means persons and families whose income does not exceed the qualifying limits for lower income fammes as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urben Development ('HUD') or, In the event such federal standards sre discontinued, as established by regulation of the California Department of Housing and Community Development ('HCD"). "Maximum Allowable Residenüal Densl/ý' means tha maximum number of residential units permitted by the Land Use Etømant of the Cily's General Plan and Zoning Ordinance, with the exception of the East Tustin Specific Plan and as applicable to certain parcels only in the MCAS Tustin Specific Plan, as of the dete of Applicant's application to the City, excluding the Density Bonus allowed by this Chapter. If the housing development Is within a planned' development overlay zone, the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone as of the date of application to the City. If a range of density Is permitted in e zone or Planning Area of a Specific Plan, the Maximum Allowable Residential Density is' the maximum number of residential units for the specific zoning range or plennlng area applicable to the project. "Non-Restricted Unlr' means all units wIt!1ln a Housing Development excluding the Target Units. 'Persons end Fam/lies of Moderate Income' means persons and families of low or moderate income whose income exceeds the income limit for Lower Income Households. 'Persons and Fam/lies of Low or Moderate Income' means persons and families whose income does not exceed 120 pan;ent of area median income, as delined In Health and Safety Code Section 50093, adjusted for family size by HCD in accordance with adjustment factors adopted and amended from time to time by HUD pursuant to Section 8 of the United States Housing Act of 1937. ' , I 'Qualifying Resident' or 'Senior Ci6zen" means, a person 62 years of age or older, or 55 years of age living in a Senior Citizen Housing Development. 'Senior Clüzen Housing Development'means, as more fully defined in Civil Code Section 51.3, a residential development that was or is proposed to be developed, Ordinance No. 1279 Page 3 019 -------,--,-------- -, ----,---------, ----"-"- substantially rehabilitated, or substantially renovated for Senior Citizens that has at least 35 dwelling units and has applied for or has been issued a public report pursuant to Business and Professions Code Section 11010.05. . I "TafUel Un/(' meims a dwelling untt wtthin a Housing Development which will be reserved for sale or rent to, and, occupancy by Very Low or Lower Income Households, Qualifying Residents, or moderate Income households, in the case of a condominium project. "Very Low Income Households' means persons and families whose incomes do not exceed the qualifying limits for very low income femilies as established and amended from time to time pursuant to Section 8 of the Untted .States Housing Act of 1937. Such limits shall be published in the California Administrative Code as soon as possible after adoption by HUD, or in the event such federal standards are discontinued, as established by regulation of HCD. PART 2 9121 INCENTIVES REQUIRED INCENTIVES (a) When an Applicant a9rees to provida: (1) At laast twanty (20) percent of the total units (excluding the density bonus) of the Housing Davelopment as Target Units affordable to Lower Income Ho.,useholds; or (2) At least ten (10) percent of the total units (excluding the density bonus) of the Housing Development as Target Units affordable to Very Low Income Households; or (3) At least fifty (50) percent of the total units (excluding the density bonus). for Qualifying Resident or Senior Citizen; or (4) At least twenty (20) percent of the total units (excfudlng the density bonus) in a Condominium Project as defined in Civil Code section 1351, subdivision (I), as Target Units affordable to Persons and Families of Moderate Income. The City shall either. (i) Grant a Density Bonus, and at least one Concession or Incentive; or (ii) Provide other Incentives or Concessions of Equivalent Financial Value based upon the land cost per dwelling unit The City shall grant the addttional Concession or Incentive required by this section unless the City makes a written finding, based upon substantial evidence, that the additional Concession or Incentive is not required in order to provide for affordable housing costs, as defined in Health and Safety Code section 50052.5, or for rents for the tergeted units es specified in Government Code section 65915, subdivision (c). (b) An Applicant may submtt to the City a proposal for the specific Incentives or Concessions that the Applicant requests pursuant to this section, and the Applicant may request a meeting with the City. The City must grant the Concession or Incentive requested by the Applicant unless the City makes a written finding, based upon substantial evidence, of either of the following: (1) The Concession or Incentive is not required in order to provide for affordable housing costs, as defined in Health and Safety Code section 50052.5, or for rents for the targeted units to be set as specified in Government Code section 65915, subdivision (c). Ordinance No. 1279 Page 4 of9 (2) The Concession or Incentive would have a specific adverse impact, as defined in Government Code section 65589.5, subdivision (d), paragraph (2), upon public health and safety or tha physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no fesslble method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate- Income households. (c) If an AppDcant agrees to construct both twenty (20) percent of the total units for Lower Income Households and ten (10) percent of the total units for Very Low Income Households, the Applicant is entltJed to only one density bonus and at least one Concession or Incentive. (d) In cases where a denaity increase of less than twenty-five (25) percent for Housing Developments with Very Low or Lower Income Households or of less than ten (10%) for a Condominium Project, as defined I~ Section 9121a.(4) of this Chapter, is requeated, no reduction will be allowed in the number of Target Units required to be restricted pursuant to Section 9131(b) In order to obtain the authorized density bonus. (e) In cases where the Applicant agrees to construct more than twenty (20) percent of the total units for Lower Income Households, or more then ten (10) percent of the total units for Very Low Income Households, the Applicant is entitied to only one Density Bonus and one Concession or Incentive. (f) An Applicant Who agrees to construct II Senior Citizen Housing Development with twenty (20) or ten (10) percent of the units reserved for Lower Very Low-Income Households, respectively, Is only entitled to one Density Bonus end one Concession or Incentive. 9122 OPTIONAl ADDIì10NAL ASSISTANCE The City may approve additional assistance to facilitate the inclusion of more Target Units than are required by this Chapter. The City Council may approve any of the following in its sole discretion, including, but not limffed to: (a) A Density Bonus of more than twenty-~ (25) percent, or more than ten (10) percent for Condominium Projects, as defined in 'Section 9121a.(4} of this Chapter. (b) Waived, reduced, or deferred planning, plan check, building permit end/or development impact fees. (c) Direct financial aid (e.g., redevelopment housing set-aside funds, Community Development Block Grant funds) in tha form of a loan or a grant to subsidize or provide iow interest financing for on or off site Improvements, contribution to land or construction costs. None of the above are Concessions or Incentives as defined in Section 9112. I PART 3 DEVELOPMENT REQUIREMENT$ STANDARD REQUIREMENTS 9131 (a) Target Units shall be constructed concuntently with Non-Restricted Units unless both the City and the Applicant agree In the Housing Incentive Agreement described in Section 9142 to an attemative schedule for development. (b) An Applicant shall agree to and the City shall insure that Target Untts shall remain affordable to the designated group for a period of thirty (30) years, or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy' program, except where the untts are Ordinance No. 1279 Page 5 of 9 located within a redevelopment area or proposed redevelopment area or if the City or Tustin Community Redevelopment Agency has decided that the applicant will receive direct financial aid as described In Section 9122(c) herein, the unns shall remain affordable for e period of forty-five (45) years for for-sale units and fifty-five (55) years for rental unfts. Those units targeted for-sale shall be sold at and remain affordable at an Affordable Housing Cost to the applicable group. Those unIts targeted for rent shall be rented at an Affordable Rent to the applicable 9rouP. (c) The design and appearance of the 'Target Units shall be consistent with the design of the total Housing Development Housing Developments shall comply wnh all development standerds applicable to housing in the City, except those which may be modified as provided by this Chapter. (d) Unless the City CounCIl makes the written finding specified in Section 9121(a), a Housing Incentive Agreement shall be entered into between the Applicant end City and/or the Redevelopment Agency to memorialize among other things, the Applicanfs comm1tment to provide Target Units In accordance with this Chapter and other applicable provisions of State Law. The Agreement shall be made a condition of the development pennlts (e.g., tract maps, parcel maps, site plans, planned development or conditional use permits, etc.) for all Housing Developments pursuant to this Chapter. 9132 LOCATION OF TARGET UNITS Target Units shall be bum on-site, and be integrated within the Housing Development Except for a Senior Citizen Housing Development, the number of bedrooms of the Target Units shall_be generally equivalent to the bedroom mix of the - Non-Restricted Units of the Housing Development, as determined by the Director and embodied in a Housing Incentive Agraement Notwithstanding the foregoing, the Applicant may include a higher proportion of Target Units with more bedrooms than the Non-Restricted Units. PART 4 APPLICATION AND REVIEW 9141 APPLICATION REQUIREMENTS AND REVIEW (a) An Applicant proposing a Housing Devalopment pursuant to this Chapter, may submn a preliminary application prior to the submittal of any fonnal request for approval of a pennit for a Housing Development Applicants are encouraged to schedule a pre- application confarence with the Director to discuss and Identify potential application issues. No charge will be required for the pre-application conference. A preliminary application shall include the following infonnatlon: (1) A description of the proposed Housing Developmant Including the total number of units, Target Units by Income category, and Density Bonus Units. (2) The zoning and general plan designations and assessors parcel number(s) of the project site. (3) The location of the Target Units within the housing development. (4) The number of additional "housing units" requested as the "density bonus" for the housing development. ' (5) A vicinity map and preliminary site plan, drawn to scale, inciuding building footprints, driveway, and parking layout. (6) A description of the development and zoning standards requested to be modified or waived and an explanation of why they are needed. , (7) In requesting the one Incentive or Concession of Equivalent Financial Value for a waiver or modification of development standards or zoning code Ordinance ND. 1279 PageS 019 requirements, the Applicant shall prov~e substantial facts In the form of a development pro-forma that the waiver or modification is necessary to make the Target Units and o.ther units in the Housing Development economically feasible. At a minimum, the development pro-forina shall include Information Identifying capital costs, equity investment, debt service, discount rate, revenues, vacancy allowance, operating expenses, net Income or net operating income, pre-tax cash flow, after-tax cash flow, and retum on investment (8) If the Applicant requests to receive other Incentives or Concessions of Equivalent Financial Value other than II grant of a Density Bonus and one Concession or Incentive as defined by Søctlon 9112, the Applicant shall provide a description of the Concessions or Incentives requested, their financial value based upon the land cost per dwelling' unit, an explanation of why they are needed, and how they will be utilized. The Applicant shall also provide substantial feels In the form of a development pro-forma that the Concessions or Incentives are necessary to make the Housing Development economically feasible. At a minimum, the developm$nt pro-forma shall include information Identifying capital costs, equity investment, debt service, discount rate, revenues, vacancy aDowance, operating expensesj net income or net operating income, pre-tax cash flow, after-tax cash flow, and return on investment (g) The Applicant shall acknowledge in writing that a Housing Incentive Agreement is required. (b) An application for a Density Bonus and/!i)r Concession or Incentive pursuant to this Chapter shall be processed concurrentiy with any other permfi application(s) required for the Housing Devefopment At a minimum, the application shall contain all the information described in Søctlon 9141(a) pllilS all other required information. Final approval or disapproval of an application shall be made by the City Council and (Q in the case of Housing Developments within Redevelopment Project Areas, also by the Tustin Community Development Agency ('Agency'); (ii) upon recommendation of the Planning Commission for those Housing Developments: which require Planning Commission entitlements; except that no approval shall be' effective until the City or Agency (as applicable) and Applicant have executed a Housing Incentiv.e Agreement. (c) WIthin sixty (60) days of receipt of the: preliminary appUcatlon, the City shall provide the Applicant with a letter which identifies project issues of concem and the proposed Concession or Incentive that the DIr8Øor would recommend to the Planning Commission and City Council and the procedu~ for compliance with this Chapter. (d) Where the Applicant proposes that, \lie City provide Optional Addfiional Assistance as described In Section 9122 herein, the proposal shall be considered by the Planning Commission for recommendation to the City Council, or Tustin Community Redevelopment Agency rAgencyj where Agency funds are requested, for their preliminary approval unless such Housing r Development does' not require Planning Commission entitlements In which case, the City Councilor Agency, as applicable, can authorize such assistance. A preliminary approval shall indicate the City Council's approval of the proposal for processing, but no Optional Additional Assistance shall be deemed approved until embodied in the Housing 'Incentive Agreement 9142 HOUSING INCENTIVE AGREEME'IT (a) Once an application for a Density Bonus and/or Concession(s) or Incentlve(s) is approved pursuant to Section 9141 (b), a Housin9 Incentive Agreement shall be prepared consistent with any conditions of approval related thereto subject to review and approval as to form by the City Attomey. The City (or Agency) approval and execution responsibilfiies for such Agreement s~all be as identified in the approval of the Housing Development application pursuant to Section 9141(b). Where such Identification is not made by the City Council, such Agreement shall be subject to approval by the City Council. Ordinance No. 1279 Pag.7ot9 (b) The final approval of any documents as required by the Agreement shall take place prior to fhfal map approval, or, where a map is not being processed, prior to Issuance of building permits for any parcels in the Housing Incentive Agreement The Agreement shall be binding to all future owners and successors in interest. (c) The Agreement shell Include at least the following: (1) The total number of units approved for the Housing Development including the number of Target Units. (2) A description of the household income group to be accommodated by the Housing Development, and the standards for determining the corresponding Affordable Rent or Affordabla Housing Cost. (3) The location, un~ sizes (square feet), and number of bedrooms of Target Units. , . (4) Affordabillty restricllons for Target Units of at least ten (10), thirty (30) years or forty-five (45) for for-sale units and fifty-five (55) for rental units, as applicable, in accordance w~h this Chapter. (5) A schedule for completion and occupancy of Target Units. {6) A description of the Concession or Incentive, Incentives or Concessions of Equivalent Financial Value, or Optional Additional Assistance being provided by the City or Agency. (7) A description of remedies for breach of the Agreement by either party (the City may idantity tenants or qualified purchasers as third party beneficiaries under the agreement). (8) Other provisions to ensure Implementation and compliance with this Chapter and State Law. (d) In the case of for-ilale Houaing Developments, the Agreement shall provide for the following regarding the Innlal sale and use of Target Units during the applicable use restricllon period and for the respective affordability period: (1) Target Units shall, upon initial sale, be sold to eligible Very Low, Lower Income Households or Moderate Income Households consistent with this Chapter or as approved by the City Council at an Affordable Housing Cost or be made available to Qualified Residents In a Senior Citizen Housing Development. (2) Target Units shall be initially owner-occupied by eligible Very Low, Lower Income, or Moderate Income Households, or by Qualifying Residents in the case of a Senior Citizen Housing Development. (3) The Agreement shall provide for the continued affordability of the Target Units for the applicable affordability period. (e) In the case of rental Housing Developments, the Agreement shall provide for the following conditions governing the use of Targat Units during the affordability period: (1) The rules and procedures for qualifying tenants, establishing Affordable Rent, filling vacancies, and maintaining Target Unils for qualified tenants; (2) Provisions requiring the owner to verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter and State Law. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be Invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the Ordinance No. 1279 Page 8 of9 remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that ft would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phfllses, or portions be declared invalid or unconstitutional. ' PASSED AND ADOPTED, at a regular nieeting of the City Council for the City of Tustin on this 15"' day of Seotember, 2003. ~ City Clerk STATE OF CAlIFORNIA) COUNlY OF ORANGE) 55 CrTY OF TUSTIN ) CERTIFICATION FOR ORDINANCE NO. 1279 PAMELA STOKER. City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the w~ole number of the members of the City Council of the City of Tustin is 5; that the above IInd foregoing Ordinance No. 1279 was duly and regularly introduced at a regular meeting of the Tustin City Council, held on the 2"" day of Seotember. 2003 and Was given its ~cond reading, passed, and adopted at a regular meeting of the City Council hald qn the 15"' day of SeDtember 2003 by the following vote: COUNCILMEMBERAYES: WoThv KavA.hima Bone. Davert Thorn.. COUNCILMEMBER NOES: lIoue COUNCILMEMBER ABSTAINED: lloue COUNCILMEMBER ABSENT: None (5) (0) (0) (U) ~h~[ P ELA ST KER City Clerk Ordinance No. 1279 Page 9 019 ORDINANCE NO. 1271 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ADDING TUSTIN CITY CODE SECTIONS 9222.a.5 AND 9223.a.7; AMENDING SECTIONS 9224.b, 9225.a.2, 9226.a.1, and 9297; AND REPEALING TUSTIN CITY CODE SECTIONS 9222.b.3, 9222.b.4, 9223.b.1, 9226.b.6, AND 9226.b.7 RELATING TO SECOND RESIDENTIAL UNITS. The City Council of the City of Tustin does hereby ordain as follows: Section I. The City Council finds and determines as follows: A. That the proposed amendments to the Tustin City Code related to second residential units have been prepared to provide standards for second residential units consistent with State law. B. That the Tustin City Code currently requires the approval of a condi.tional use permit for the establishment of second residential units in several residential zoning districts. C. That Califomia Govemment Code Section 65852.2(a)(3) requires that when a local agency receives its first application "On or after July 1, 2003, for a second residential unit, the application shall be considered ministerially without discretionary review or a hearing. D. That Califomia Government Code Section 65852.2(a)(1) allows local agencies to impose standards on second units that include, but are not limited to, parking, height, setback, lot coverage, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed on the California Register of Historic Places. E. That Califomia Government Code Section 65852.2(a)(1) allows local agencies to provide that second units do not exceed the allowable density for the lot upon which the second unit is located. F. That Califomia Govemment Code Section 65852.2(a)(1) allows local agencies to designate areas within the jurisdiction of the local agency where second units may be permitted. G. That on April 28, 2003, a public hearing was duly noticed, called, and held on Code Amendment 03-003 by the Planning Commission. The public hearing was continued to May 12, 2003, and the Planning Commission recommended that the City Council approve Code Amendment 03-003 to provide standards for second residential units. H. That on May 19, 2003, a public hearing was duly noticed, called, and held on Ordinance No. 1271 Page 2 Code Amendment 03-003 by the City Council. I. That the proposed amendment is exempt from further environ men I view pursuant to the provisions of the Califomia Environmental Quality A (C OA), as found in Public Resources Code Section 21080.17. Housing Element Goal 1 to provide an adequate supply of housin t meet the need for a variety of housing types and the diverse soci co omic needs of all community residents~ J. That the proposed second residenti~1 unit provisions are reasonably e ssary to protect the health, safety, and welfare of the citizens of the City of usti . K. That the proposed amendment will bring the City's requiremen establishment of second units intö compliance with Califomia G Code Section 65852.2. L. That the proposed amendments are consistent with the Tustin Gene that they comply with the foliowing goals and policies: Land Use Element Goal 4 to assure a safe, healthy, and ae th tically pleasing community for residents and businesses. Housing Element Policy 1.7 to allow second (attached/detached single- and multi-family districts, subject to land use policy an ordinance restrictions. M. That the proposed parking require~ent for a second residential u it f two garage parking spaces is directly re1lated to the use of the second r si ential unit and is consistent with the existing requirement of two parking sp ce for a primary residential unit. N. That the proposed parking requirement for a second residential u garage parking spaces shall not be $atisfied though the use of tande because tandem parking is not permitted to satisfy required parking else in the City of Tustin. Section II. Sections 9222.b.3 and 9222.b.4 of the Tustin City Code ar repealed in their entirety and new Section 9222.a.5 of the Tustin City Code i added to read as follows: 5. Second residential units (a) (b) (c) Maximum height: 30 feet I Minimum building site: 12,000 square feet i Maximum overall lot coverage for all structures combined: 50 pergen Ordinance No. 1271 Page 3 (d) (e) (f) (g) (h) (i) G) (k) (I) (m) (n) (0) (p) Maximum lot coverage for the second residential unit: 30 percent of rear yard and 30 percent of side yard Minimum front yard setback: 50 feet for detached unit; 20 feet for attached unit Minimum front yard setback for off-street parking: 50 feet Minimum side yard setback: Comer lot line: 10 feet; Interior lot line: 5 feet Minimum rear yard setback: 5 feet Maximum floor area of second residential unit: 10 percent of total lot area Minimum Off-street parking: Assigned two-car garage in addition to the required parking for the primary single-family dwelling Driveways: Subject to Subsection 9271 bb The second residential unit shall be consistent with the architectural style, materials and color of the primary single-family dwelling and shall not detract from the single-family appearance of the primary single-family dwelling The second residential unit shall not cause a substantial adverse change, as defined in Califomia Public Resources Code Section 5020.1, in the significance of any real property that is listed in the California Register of Historic Places or the City of Tustin Historical Resources Survey The second residential unit shall be constructed concurrently with, or subsequent to, the primary single-family dwelling, which shall be conforming or brought into conformance with the Tustin City Code All entrances to the second residential unit shall be to the rear of the primary single-family dwelling and shall not be visible from the public right- of-way When the primary single-family dwelling would conform to the development standards normally applicable to second residential units, and the second residential unit is built between the primary single-family dwelling and the front property line, the second residential unit shall be subject to the development standards normally applicable to. the primary single-family dwelling Section III. Section 9223.b.1 of the Tustin City Code is hereby repealed in its entirety, Sections 9223.b.2 through 9223.b.4 renumbered accordingly, and new Section 9223.a.7 of the Tustin City Code is hereby added to read as follows: 7. Second residential units (a) (b) (c) (d) (e) Maximum height: 30 feet Minimum building site: 12,000 square feet Maximum overall lot coverage for all structures combined: 50 percent Maximum lot coverage for the second residential unit: 30 percent of rear yard and 30 percent of side yard Minimum front yard setback: 50 feet for detached unit; 20 feet for attached unit Minimum front yard setback for off-street parking: 50 feet (f) Ordinance No. 1271 Page 4 Minimum side yard setback: Comer lot line: 10 feet; Interior lot Ii e: feet Minimum rear yard setback: 5 feet Maximum floor area of second residential unit: 10 percent of tot 110 area Minimum Off-street parking: AEfsigned two-car garage in additi n 0 the required parking for the primary single-family dwelling Driveways: Subject to Subsecti~:m 9271bb The second residential unit shall be consistent with the architect ra style, materials and color of the prir)1ary single-family dwelling and sh 1/ not detract from the single-family !appearance of the primary sin I amily dwelling The second residential unit shall not cause a substantial advers c ange, as defined in Califomia Public i Resources Code Section 5020 1, n the significance of any real property that is listed in the Califomia R gi ter of Historic Places or the City of Tu$tin Historical Resources Survey The second residential unit shall be constructed concurrentl wth, or subsequent to, the primary single-family dwelling, which sh II be conforming or brought into conformance with the Tustin City Cod All entrances to the second residential unit shall be to the r f the primary single-family dwelling and shall not be visible from the p bli right- of-way . When the primary single-family dwelling would conform t the development standards normally applicable to secolTd residen ial units, and the second residential unihs built between the primary sin I mily dwelling and the front property. line, the second residential un' s all be subject to the development standards normally applicable to th p imary single-family dwelling Section IV. Section 9224b (first paragraph) of the Tustin City Code is hereby a to read as follows: (g) (h) (i) (j) (k) (I) (m) (n) (0) (p) b. Conditionally Permitted Uses Any use permitted in any "R" District is permitted in the Planned De 10 ment District (PD), subject to a use pel1T\it. except that second residential un s are not permitted and home occupations in accordance with this ch pt rare allowed as outright permitted uses. Section V. The title of Section 9225.a.2 of the Tustin City Code is hereby a read as follows: Duplexes or Detached Single-family Dwellings Section VI. follows: Section 9226.a.1 of the Tustin City Code is hereby amended t I Ordinance No. 1271 Page 5 1. All uses permitted in the R-2 District, subject to a use permit if required for the use in an R-2 District. (a) (b) (c) (d) (e) (f) (g) (h) (i) 0) (k) Maximum height: As specified in the R-2 District Minimum building site area: As specified in the R-2 District Minimum lot width at property line: As specified in the R-2 District Maximum lot coverage: As specified in the R-2 District Minimum landscape open space: 35 percent Minimum front yard setback: As specified in the R-2 District Minimum side yard setback: As specified in the R-2 District Minimum rear yard setback: As specified in the R-2 District Minimum lot area per family unit: 1,750 square feet Off-street parking: As specified in the R-2 District Driveways: Subject to Subsection 9271 bb. Section VII. Sections 9226.b.6 and 9226.b.7 of the Tustin City Code are hereby repealed in their entirety. Section VIII. The following definition is hereby added to Section 9297 of the Tustin City Code: "Second Residential Unit" means a building or portion thereof designed for residential occupancy on a lot developed with a legal conforming single-family dwelling. Section IX. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason determined to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting on the 2nd day of June, 2003. ~s~~ ~ Mayor ~ City Clerk --- ---- --..'- Ordinance No. 1271 Page 6 STATE OF CALIFORNIA) COUNTY OF ORANGE) CITY OF TUSTIN. ) SS CERTIFICATION FOR ORDINANCE NO. 1271 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the C' of ustin, California, does hereby certify that the whole number of the members of the C' ouncil of the City of Tustin is 5; that the above and foregoing Ordinance No. 1271 wa d Iy and regularly introduced at a regular meeting of the Tustin City Council, held on th 1 h day of May, 2003 and was given its second reading, passed, and adopted at a ular meeting of the City Council held on the 2nd daw of June, 2003 by the following v te: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Worley, Kawashima., Bone, Davert. NONE NONE NONE -.. --_u....-.--.-. , ------ ---- '-.- ATTACHMENT 2 Resolution No. 05-68 RESOLUTION NO. 05-68 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE ACTION PLAN FISCAL YEAR 2005-06 FOR SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. The City Council of the City of Tustin does hereby resolve as follows: WHEREAS, under the Housing and Community Development Act of 1974, as amended, Federal assistance may be provided for the support of community development activities which are directed toward certain specific objectives as set forth in the Act as the Community Development Block Grant (CDBG) Program; and WHEREAS, on February 16, 2005, a public hearing was held by the Ad Hoc Citizen Participation Committee to obtain and consider citizens' views on the needs, goals, and objectives of the community; and WHEREAS, during the February 16, 2005, public hearing, citizens were furnished with information concerning the CDBG Program, the range of eligible activities, and the proposed use of funds; and WHEREAS, a report has been prepared transmitting to the City Council recommended priority needs, goals, and objectives by the Citizen Participation Committee; and WHEREAS, a public hearing was held by the City Council on May 2, 2005, to respond to questions and comments on the proposed Action Plan FY 2005-06; and WHEREAS, the City Council evaluated needs, priorities, goals, and objectives based on recommendations of the Citizen Participation Committee and public testimony received during the hearing; NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The City of Tustin's Action Plan FY 2005-06 is hereby approved as presented to the Council at their hearing of May 2, 2005, and in Exhibit A of this Resolution. Section 2: Staff is hereby directed to include the proposed use of CDBG Funds for Fiscal Year 2005-06 in the One Year Action Plan to be submitted to the U.S. Department of Housing and Urban Development. Resolution No. 05-68 Page 2 Section 3: The Director of Community Development is authorized to execute such documents, certifications, contracts, or other instruments as may be required to carry out the City's Community Development Block Grant Program. Section 4: The City Clerk shall certify to the adoption of this Resolution and shall file a copy of said application with the minutes of this City Council meeting. PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting on the 2nd day of May, 2005. LOU BONE MAYOR PAMELA STOKER, CITY CLERK STATE OF CALIFORNIA) COUNTY OF ORANGE) CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 05-68 SS PAMELA STOKER, City Clerk and ex-officio Clerk ofthe City Council of the City ofTustin, 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. 05-68 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 2nd day of May, 2005, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Pamela Stoker City Clerk EXHIBIT A OF RESOLUTION NO. 05-68 Draft Action Plan (Draft Action Plan is a component of the Consolidated Plan. Please see Exhibit A of Resolution No. 05-67) Attachment 3 Evaluation Criteria COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT SELECTION PROCESS AND EVALUATION CRITERIA The City reserves the right to act as sole judge of the content of the proposals submitted for City's evaluation and selection. The City further reserves the right to reject any or all project proposals. A. CONSOLIDATED PLAN - PRIORITY NEEDS To participate in the Federal Community Development Block Grant (CDBG) program, the City of Tustin has submitted to the U. S. Department of Housing and Urban Development a five-year planning document entitled the Consolidated Plan. The Plan details community needs and provides a strategy for addressing those needs. The Consolidated Plan contains a Listing of Priority Needs table which rates (high, medium, or low) a wide variety of community needs, including housing, homeless assistance, public facilities, in&astructure improvements, public services, economic development, and other community development needs. When considering projects and programs to be funded with CDBG monies, the proposals should address the community's priority needs (see attached). B. FUNDING CRITERIA Evaluation and selection of the requests for funding proposals will also be based upon the following considerations and criteria: 1. Completion of All Application Forms and Requested Information 2. Proposer's General Experience and Capability a. Proposer's demonstrated experience in the operation of programs similar to the one for which funding is requested. b. Proposer's demonstrated ability to provide the specific services proposed. c. Proposer's demonstrated financial status and ability to finance the proposal submitted. d. Local experience - consideration will be given to operators who have demonstrated experience in providing services to Tustin area residents. City of Tustin Page 1 of3 Evaluation Criteria 3. 4. e. Proposer's other sources of funding. f. Proposer's verified history of compliance with obligations and responsibilities associated with contractual responsibilities or requirements of State and/or Federal grants. General Program Concepts and Approach a. Demonstration of a critical need for the proposed project by Tustin area residents. b. The anticipated number of low- and moderate-income Tustin residents to be served by the proposal. c. The size of the service area for said program and whether the project will indirectly benefit areas within Tustin having a concentration of low- and moderate-income residents. d. The proposal's response to any needs identified in the City's Consolidated Plan. General Mandatory Guidelines for Funding Requests Submitted by Public Service Providers and Non-Profits Each organization must: I. Be a non-profit community organization committed to enhancing the quality oflife for Tustin residents. 2. Serve Tustin residents and provide documentation of such service. 3. Be registered with the State of California as a non-profit community organization or, for new organizations, be registered at the time the funds are allocated. 4. Have a Board of Directors whose meetings are open to the public. 5. Provide the City of Tustin with a copy of CUlTent constitutionlbylaws and policies and procedures. 6. Demonstrate ability to generate financial and human resources from other sources. City of Tustin Evaluation Criteria Page 2 00 7. Not discriminate in employment or in clients served because of race, religion, sex, or national origin. 8. Be accountable for revenue and expenditures through standard bookkeeping procedures. An annual audit at the agency's expense may be required, with the results available to the City of Tustin upon request. C. EV ALUA TION PROCESS An evaluation team comprised of City personnel will conduct the evaluation of the proposals; however, it may also include elected officials and other community leaders. In all cases, members of the team will have appropriate experience in the evaluation and administration of projects, proposals, lease agreements, construction contracts, bid documents, and public service program operations. In connection with its evaluation, the team may, at its option, request interviews with those individuals or organizations proposing projects. During these interviews, the proposers will be allowed to present such evidence, as may be appropriate, for the team to accurately analyze all materials and documentation submitted with the proposals. The selection team will employ the applicable criteria and their expertise in evaluating all proposals and shall submit a report to the City Council detailing a highest-to-lowest ranking of all responsive proposals. D. APPROVAL OF FUNDING PROPOSAL Subsequent to the evaluation process, recommendations will be presented to the City Council for review and approval. Specific amounts of recommended allocations may not correlate with the amount requested by an agency. Funding recommendations shall be presented at a regular meeting of the City Council and are subject to public review and comment. Distribution of grant funds is contingent on receipt of monies crom the Federal government and funding granted in one fiscal year does not assure an applicant of any future funding. SICDDVUSTINAI<dbglEwlo,tioo Criren"d", City of Tustin Page 3 00 Evaluation Criteria ATTACHMENT 4 Applications Summary CITY OF TUSTIN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FY 2005-06 The following table is a list of Request for Funding applications submitted to the Community Development Department. The chart includes applications received from public service/non-profit organizations and City departments. The Public Service cap for the FY 2005-06 grant award of $923,725 is $138,558 (15% of total grant award). The Program Administration cap is $184,745 (20% of total grant award). ORGANIZATION - PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In -House Citizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recom neudation Committee Project Location (NOTES) Recommendation 570.201 BASIC ELIGIBLE ACTIVITIES Public Services 1. Assessment and Treatment 150 persons The objective of this organization's youth counseling $ 15,000 $ 15,000 $ 15,000 Services Center - Youth and Family program is to halt delinquent behavior, assist young Counseling Program victims of abuse and neglect, and help young people toward productive adult lives. Funding is requested for staff salaries and benefits. 440 W. First Street #101, Tustin 2. Big Brothers/Big Sisters of Orange 80 persons Bright Futures program provides support services for $5,000 $ 5,000 $ 5,000 County - Bright Futures Program girls ages 10-18 at school sites and on weekends to stay in school, avoid drug and alcohol abuse, cope with peer pressure, and develop strong communication skills to become self confident and 14131 Yorba Street, Ste. 200, Tustin motivated creating healthy lives. - Tustin High School, Columbus Tustin Middle School, and Tim Curry Middle School. 3. Boys and Girls Club of Tustin - 100 persons This program provides after-school and non -student $ 25,000 $ 25,000 $ 25,000 Upward Bound Academic Enrichment day programs. The focus would be on academic, Outreach Program social, fitness, and character development needs of at -risk youth in the southwest area of Tustin. CDBG funds will be utilized to pay for a portion of staff 580 W. Sixth Street, Tustin salary. Page 1 of 6 ORGANIZATION - PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In -House Citizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project Location (NOTES) Recommendation 4. Easter Seals Southern California - 5 persons The program provides scholarships for children with $ 15,000 $ 0 $ 0 Scholarships for Children with disabilities, five of whom live in Tustin and are of Disabilities low/moderate income. Irvine High School, 4321 Walnut Avenue, NS11, Irvine 5. City of Tustin Parks and 2,400 Funding for salary and benefits for a full time $ 66,647 $ 34,558 $ 34,558 Recreation Services Department - persons/month program coordinator at Tustin Family and Youth Program Coordinator Center. Program Coordinator provides direct leadership for facility management, family service programs, outreach programs, youth action team programs, nutrition, education assistance, and childcare. 14722 Newport Avenue, Tustin 6. Families Forward - Homeless 200 persons This program helps families at -risk of becoming $ 5,000 $ 0 $ 0 Prevention - homeless by providing various resources such as: utility and rent assistance, career counseling, food 9221 Irvine Boulevard, Irvine pantry, case management, education, and referrals. 7. Family Solutions - Tustin Group Home 20 persons The program helps fund a residential group home for $25,000 $0 $ 0 Programming and Operations six (6) youth at a time with safe housing and a full continuum of supportive services such as counseling, 14311 Shadybrook, Tustin mental health support and services, after school educational trips, and tutoring. CDBG funds will he used to pay for staff salary and children's supplies. 8. Feedback Foundation, Inc. - 300 Congregate Lunch program for elderly at congregate meal site $ 25,000 $ 25,000 $ 25,000 Congregate Lunch Program and Home 112 Home (Tustin Area Senior Center) and through home Delivered Meals Program Delivered delivery. Funds will be utilized to pay for meals related expenditures and raw food. 200 "C" Street, Tustin 9. Friendship Shelter - Emergency Shelter 5 persons Friendship Shelter provides emergency shelter for $1,250 $ 0 $ 0 Program homeless single adult men and women. The program also provides a comprehensive rehabilitation program 1335 S. Coast Highway, Laguna Beach that helps residents to overcome the problems that led to their homelessness. Page 2 of 6 ORGANIZATION - PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In -House Citizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project Location (NOTES) Recommendation 10. City of Tustin Community CDBG Low -Mod Removal of graffiti from privately and publicly $ 20,000 $ 20,000 $ 20,000 Development Department - Graffiti Target area owned improvements in the Southwest Target area. Removal Program CDBG Target Area 11. Laurel House - House Parent and 20 persons Funding for portion of salaries and benefits for the $ 20,000 $ 4,000 $ 4,000 Office Manager (shelter) house parent and office manager. Laurel House 175 persons provides temporary shelter, care and counseling for 13722 Fairmont Way, Tustin (support services) teens and their families. 12. Mercy House - Joseph House, Regina 6 persons Mercy House provides safe housing and supportive $6,000 $ 0 $ 0 House, and Emmanuel House case management services such as wellness program, - financial planning, and basic life skills programs to Regina House - 1505 and 1509 N. achieve self-sufficiency. Garfield, Santa Ana Emmanuel House - 807 N. Garfield, Santa Ana Joseph House - 210 E. le Street, Santa Ana 13. Rebuilding Together of Orange County 9 persons The Safe at Home program provides rehabilitation $ 6,000 $ 0 $ 0 - Safe at Home 2005-06 services for the elderly and persons with disabilities. CDBG funds will be used to repair and rehabilitate up to six (6) homes. 625 S. Cypress Avenue, Santa Ana 14. Serenity Recovery Center - Unknown number The program provides treatment, rehabilitation, $50,000 $ 0 $ 0 Community Action in Recovery of Tustin sober -living, and aftercare recovery services to Building a Better Way residents individual suffering from substance abuse of alcoholism. CDBG funds would be used for staff salary and to offset a portion of property 14511 Carfax Drive improvement cost. Page 3 of 6 ORGANIZATION - PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In-House Citizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project Location (NOTES) Recommendation 15. Think Together - Achieving Success 1000 persons Think Together provides after-school program by $ 10,000 $ 0 $ 0 Academic Partnership (ASAP) providing homework assistance and academic support. CDBG funds would be used to pay for a portion of staff salary. Tustin Unified School District campuses 16. Tustin Area Historical Society - Citywide Tustin Area Historical Society operates the Tustin $ 7,200 $ 0 $ 0 Museum Rental Fee Area Museum at 395 EI Camino Real. CDBG funds would be used to offset museum rental fee. 17. WTLC's Family Outreach Center - 175 persons The program provides a continuum of care for $ 10,000 $ 10,000 $ 10,000 Independence from Dependence victims of domestic violence. The Independence from Dependence program provides supportive services necessary to become free from dependence on others, financially and emotionally, substance abuse, and dependence on government welfare program. CDBG funds would be used to pay for a portion of staffs' salaries. Tustin Police Department and 210 N. Malden Avenue, Fullerton Public Service Subtotal (Maximum allocation for Public Services is $138,558) $312,097 $ 138,558 $ 138,558 Public Facilities and Improvements 18. City of Tustin - Sycamore Avenue CDBG target area Sidewalk enhancement along Sycamore Avenue from $ 45,000 $45,000 $45,000 Sidewalk Enhancement Carfax Drive to School Lane. South side of Sycamore Avenue from. Carfax Drive to School Lane Page 4 of 6 ORGANIZATION - PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In -House Citizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project Location (NOTES) Recommendation 19. City of Tustin - EI Camino Real CDBG target area Landscape improvement for EI Camino Real $100,000 $100,000 $100,000 Landscaping neighborhood park located at 450 EI Camino Real (across from Armstrong Gardens Center). 450 El Camino Real 20. City of Tustin - Walnut Avenue CDBG target area Sidewalk enhancement along the south side of $110,000 $110,000 $110,000 Sidewalk Enhancement Walnut Avenue from east of Newport Avenue to west of Atherton Lane. South side of Walnut Avenue from east of Newport Avenue to west of Atherton Lane 21. City of Tustin - Pasadena Avenue CDBG target area Storm drain pipe installation, catch basins $100,000 $100,000 $100,000 Storm Drain Improvements construction, and pavement resurfacing of Pasadena Avenue from Medallion Avenue to Sycamore Avenue. Pasadena Avenue from Medallion Avenue to Sycamore Avenue 22. City of Tustin - Williams Avenue CDBG target area Curb and gutter sidewalk improvements to the City' s $ 75,000 $75,000 $75,000 Street Improvements right-of-way located in front of 15600 Williams Street. 15600 Williams Avenue 23. City of Tustin - Sycamore Garden CDBG target area Right of Way acquisition for Sycamore Gardens. $ 250,000 $ 199,887 $ 199,887 Right-of-way This project would be completed as a multi -phased project. The first year application would cover design cost. Public Facilities/Improvements Subtotal $680,000 $ 629,887 $ 629,887 Page 5 of 6 ORGANIZATION - PROJECT NAME NO. OF TUSTIN PROJECT DESCRIPTION FUNDING In -House Citizen RESIDENTS AMOUNT Committee Participation SERVED REQUESTED Recommendation Committee Project Location (NOTES) Recommendation 570.202 REHABILITATION AND PRESERVATION ACTIVITIES 24. City of Tustin Community CDBG target area Full-time salary, benefit and training for one Code $ 71,800 $ 71,800 $ 71,800 Development Department - Code Enforcement officer working exclusively in the Enforcement Southwest Neighborhood. Rehabilitation and Preservation Subtotal $ 71,800 $ 71,800 $ 71,800 570.206 PROGRAM ADMINISTRATION COSTS (including planning activities) 25. Fair Housing Council of Orange 385 households As a recipient of CDBG funds, Tustin is required to $ 18,480 $ 18,480 $ 18,480 County/Fair Housing counseling provide fair housing services to residents. Services. Contracting with this agency is a cost-effective way to comply with federal requirement. Citywide 26. City of Tustin Community CDBG Program Administration, cost recovery, $ 65,000 $ 65,000 $ 65,000 Development Department - Program contingency Administration Program Administration Subtotal (maximum allocation for Planning & Administration is $184,745) $ 83,480 $ 83,480 $ 83,480 TOTAL $1,147,377 $ 923,725 $ 923,725 S:\CddVUSTINA\cdbgWpplication Sunamry 2005 06.doc Page 6 of 6 ".",om.., i *°* % \ .) ~.....",. u.s. Department 01 Housing and Urban Development Los Angeles Field Office, Region IX 611 West 6th Street, Suite 1000 Los Angeles, CaIWomia 90017 . ; iRAlIOf\1 JUL 1 9 2005 ~ l) ¿'JUJ Mr. William Huston, City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 (:t:!VED Dear Mr. Huston: Subject: FY 2005 Action Plan Grant Agreements Enclosed are the Program Year 2005 grant agreements for the Community Development Block Grant (CDBG) program. These grant agreements constitute the award of grant funds between the U.S. Department of Housing and Urban Development (HUD) and your jurisdiction. The grant assistance being awarded is as follows: . Community Development Block Grant Program Grant Number B-05-MCO06-0583 $ 923,725 Please execute all copies of the enclosed grant agreement to which your community is entitled, keep one copy of each program grant agreement. Two signed copies of each program grant agreement must be returned to the Los Angeles Field Office. Please note issues of general administrative concern in Enclosure A, Consolidated Plan Advice and Guidance. Compliance with all applicable statutes and regulations are evaluated at the conclusion of the program year, be advised that acceptance of the annual action plan does not imply approval of proposed programs and activities. Also note that performance reports for the 2004 program year are due no later than Thursday, September 29, 2005. Timeliness. HUD Secretary, Alphonso Jackson remains committed to reducing the amount of CDBG funds that remain unexpended for long periods of time (defined by regulation at 24 CFR part 570.902), and is prepared to sanction grantees with slow expenditure rates and large grant balances. The Department will continue to monitor your agency's CDBG expenditures through reports generated by the Integrated Disbursement and Information System (IDIS) ,we are encouraging your staff to do the same. We look forward to working with your community to accomplish the goals and objectives identified in your Action Plan. If you have any questions, please contact Cheryl Hamilton, the Community Planning and Development Representative assigned to your community at (213) 534-2576. Sincerely, c~ &VV' ~v' JJ- William Vasquez, Director If' Office of Community Planning and Development Enclosure A Consolidated Plan Advice and Guidance Integrated Disbursement and Information System (IDIS) To ensure that IDIS reports supporting the CAPER are accurate, the City/County will enter data in IDIS for all Consolidated Plan programs (CDBG, HOME, ESG, and HOPWA) applicable to the community containing the following information: project description, location, eligibility and national objective citations and matrix codes, and information on accomplishments. Environmental Review Procedures All activities included in the Consolidated Plan/Action Plan are subject to environmental review under provisions codified at 24 CFR Part 58. Funds for activities that are not determined to be exempt may not be obligated or expended unless a Release of Funds have been approved in writing by HUD. The Request for Release of Funds must be accompanied by an environmental certification. civil Rights & Furthering Fair Housing The City/County will affirmatively further fair housing and will: a) conduct an analysis to identify impediments to fair housing choice within the community; b) take appropriate actions to overcome the effects of any impediments identified through that analysis; and c) maintain records reflecting the analysis and the actions taken. The jurisdiction will also update its Analysis of hnpediments (AI) periodically. The results of actions taken during the program year to address impediments identified in your AI should be reported in the Consolidated Annual Performance and Evaluation Report (CAPER) . SigJ1ag" at Pr~ect f'.ondn..-tion Site City/County will ensure that the u.s. Department of Housing and urban Development (HUD) is identified on all project signage erected at a construction site for projects involving HUD-CPD program assistance. Funding Approval/Agreement Title I of the Housing and Community Development Act (Public Law 930383) HI-00515R of 20515R U,S. Department of Housing and Urban Development Office of Community Planning and Development Community Development Block Grant Program 1. NaJM of Grantee (as shown in itemS 01 Standard Form 424) 3. Grantee's 9-dign Tax ID Number 4. Data usa of funds may begin City of Tustin 95-6000804 (mmiddlyyyy) 07/0112005 2. Granl..'s Completa Address (as shown in item 5 of SlBndard Foon 424) Sa. Projecl'Grant No. 1 60. Amoonl Approved 300 Centennial Way B-05-MC-Q6-0583 $923,725 Tustin, CA 92780 5b. Projecl'Grant No. 2 6b. Amoonl Approved 5c. ProjactlGrant No.3 60. Amoonl Approved Grant Agreement: This Grant Agreement between the Department of Housmg sod Urban Development (HUD) sod the above named Grantee IS made pursuant to the authority of TItle I of the Housing and Community Development Act of 1974, as amended, (42 USC 5301 et seq.). The Grantee's submissioos for TItle I assistance, the HUD regulations at 24 CFR Part 570 (as now in effect sod as may be ameoded from time to time), sod tlûs Funding Approval, including soy special conditioos, coostilllte part of the Agreemenl Subject to the provisioos of tlûs Grant Agreemenl HUD will make the fundiog assistance specified here available to the Grantee upon executioo of the Agreement by the parties. The funding assistance specified in the Funding Approval may be used to pay cosls incurred after the date specified in item 4 above provided the activities to which such casls are related are carried out io compliaoce with all applicable requiremenls. Pre-agreement cosls may not be paid with funding assistance specified here unless they are authorized in HUD regulatioos or approved by waiver sod listed in the special conditions to the Funding Approval. The Grantee agrees to assume all of the responsibilities for environmental review, decision making, sod actions, as specified sod required in regulations issued by the Secretary pursuant to Sectioo 104(g) of TItle I sod published io 24 CFR Part 58. The Grantee further acknowledges ils responsibility for adherence to the Agreement by sub-red ient entities to which it makes fundin assistance bereunder available. .S. Dapar1mont of Housing and Urban Davelopmant (By Nama) William Vasquez Tilia Director, Office of Community Planning and Development Signature ", /. ~ A I._, /Î ( Data rrJdf:YYY) ~ 'VJn vV"'-- 7 IŸ/LotS- 7. Catagory 01 Tilia I Assistance forthi. Funding Action 8. Special Conditions (chad< only OM) (check ona) ~ a. Enlillamanl Sac 106(b) D None Db. SIBta-Adminisiared, Sac 106(d)(1) ~ Allachad Dc. HUc.Adminislared Sman Cillas, Sac 106(d)(2)(B) D d.lndian CDBG Programs, Sac 106(aX1) D a. Surplus Urban Ranawal Funds, Sac 112(b) D I. Spadal Purposa Granls, Sac 107 D g. Loan Guarantee, Sac 108 9a. Date HUD Reoa (mmiddlyyyy) 05/1712005 9b. Date Grantee Nofifiad (mmiddlyyyy) 90. Date 01 Start of progrem Vaar (mmiddlyyyy) 07/0112005 11. Amoont 01 Communny Davalopmant Block Grenl a. Funds RaSBNad for th~ Grantee 12a. Amoont of Loan Guarentee Commnmanl now baing Approved FY(2005) 923725 923725 0 FY( FY( Loan Guarantee Acceptance ProvIsIons for Designated Agencies: The public agency hereby accepls the Grant Agreement executed by the Department of Housing sod Urban Development on the above date with respect to the above grant number(s) as Grantee designated to receive 12c. Nama of Authorized Dfficiallor Designatad Public Agancy loan guarantee assistance, sod agrees to comply with the terms and conditioos of the Agreement, applicable regulatioos, sod other requiremenls of HUD now or hereafter in effect, pertainiog to the Tilia assistance provided it. Signature HUD Accounting use Only Effadiva Data Amounl (mmiddlyyyy) 10 Amounl Amounl VariliadBy lonn HUD.70B2 (4193) Batch TAC progrem V A Rag Area Documant No. Projad Numbar Catagory [ill mE [ill q 0 0 rn [IIJJJ q;g;p OJ] I 0 ITITD I 0 cfinJ I Data Entared PAS (mmlddIyyyy) Data Entared LOCCS (mmIddIyyyy) Batch Numbar Transadion Coda 2005COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL CONDITIONS Executive Order 12372 The special condition for the Community Development Block Grant Program, Funding Approval Agreement (HUD 7082), concerning the review procedures under Executive Order 12372 - Intergovernmental review of Federal Programs and HUD's implementing regulations 24 CFR, Part 52, restricts the obligation or expenditure of funds for the planning or construction of water or sewer facilities until the completion of the review process and receipt of written notification of a Release of Funds from HUD. In the event that the grantee amends or otherwise revises it's Consolidated Plan/Action Plan to use funds for the planning or construction of water or sewer facilities, a written Release of Funds notice from the Department must be obtained before obligating or expending funds for such activities.