HomeMy WebLinkAboutRESPONSE TO CHAIR MELLO QUESTIONS 8-9-22 Hurtado, Vera
From: Willkom, Justina
Sent: Tuesday, August 9, 2022 5:45 PM
To: Willkom, Justina
Cc: Huitron, Irma; Michael S. Daudt; Hurtado, Vera
Subject: Response to Commissioner Mello's questions - AUGUST 9TH PLANNING COMMISSION MEETING
Attachments: Annual Report-Housing Authority_2020-2021_FINAL.pdf, RDA 2 LOCAL HSG PREF-AFF HSG
11-06-07.pdf
Hello Commissioners,
Please see the following responses to Commissioner Mello's questions on Item Number 3:
Comments & Questions for staff:
■ Under section 9131 STANDARD REQUIREMENTS, Subsection (g) Equity Sharing, the city participates
in equity appreciation of affordable units. Please explain how this works and what part of the GP or
other policy document supports this policy or is this part of the State mandate? Also, what is the
city's participation percentage of the equity sharing?
Answer:
Per Government Code 65915 et seq. : The City's proportionate share of appreciation (equity) shall
be equal to the ratio of the City's initial subsidy to the fair market value of the home at the time of
initial sale. The City shall recapture any initial subsidy and its proportionate share of appreciation
(equity), which shall then be used within five (5) years for any of the purposes described in
subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership (i.e.
for the purposes of increasing, improving, and preserving the community's supply of low- and
moderate-income housing available at affordable housing cost).
The proposed Ordinance also is consistent with the Tustin General Plan:
• Housing Element Goal 1: Provision of an adequate supply of housing to meet the need for a
variety of housing types and the diverse socio-economic needs of all community residents
commensurate with the City's identified housing needs in the RHNA allocation
• Policy 1.3: Regulatory Incentives—Support the use of regulatory incentives, such as density
bonuses and deferment of impact fees, to offset the costs of affordable housing while ensuring
that potential impacts are addressed
■ Under 9142 Housing Incentive Agreement, Section (c ) Agreement Contents, Subsection (8), A
provision, consistent with the City Council Policy, establishing preference for the purchase or rental
of the target units by Tustin residents or individuals employed within the City of Tustin. What is the
current City Council Policy on this issue and is this change being driven by the State's mandate or
CC policy?
Answer:
i
On November 6, 2007, the City adopted a Local Workforce Housing Preference Policy for
participants in the City's affordable housing programs where certain factors, including but not
limited to the following may apply (1) the unit has been developed as part of a Disposition and
Development Agreement's Affordable Housing Obligation (2) the City or Agency has assisted in gap
financing for those development projects where affordable housing units are provided (3) the City
or Agency facilitated the projects access directly or indirectly to tax-exempt financing for the
project and (4) the City has provided a density bonus for the project (See attached staff report).
The Local Workforce Housing Preference Policy is a priority system where applicants who are
currently employed in or currently residing in the city of Tustin would have a priority over an
applicant who does not currently reside or is not employed in the City of Tustin. In order to qualify
for the local preference, the applicants must have at least six months of employment or residency
in Tustin. The applicant will be required to complete a Certification of Eligibility- Local Workforce
Housing Policy Form and provide the required supporting documentation. The establishment of
this Policy assists the City in providing balanced housing opportunities to very-low to moderate-
income families who live and work in Tustin. The City policy adopted in 2007 is not being changed
in the draft ordinance.
• What is the role and participation level of the Housing Authority in Tustin? Number of HH
managed and frequency of management? How are the costs for operating that program covered?
Answer:
In 2012, the Tustin Housing Authority("Housing Authority') assumed all housing assets and functions
previously performed by the former Tustin Community Redevelopment Agency. In addition, the Housing
Authority oversees the Tustin Temporary Emergency Shelter, transitional housing and new affordable
housing projects developed after 2012. The Housing Authority annually monitors 468 affordable rental units
and 279 affordable ownership units. Costs for operating the program are covered by the Low and Moderate
Income Asset Fund. (Attached is last year's Housing Authority Annual Report)
• When reviewing the Resource Documents on the Tustin Housing Authority website I noticed the
most recent affordable housing ownership opportunities were constructed in 2005-2007, with the
latest in 2010. On the rental side it appears projects came to fruition in 2012 & 2015. What city
housing policies have changed in the last 7 years that would impact those numbers and what
change is there in this Ordinance that would reverse that trend?
Answer:
The Voluntary Workforce Housing Incentive Program ("Housing Incentive Program") is the only new housing
policy adopted in the last seven (7)years.The Housing Incentive Program utilizes Density Bonus Law to
benefit housing developers and encourage affordable housing in the Downtown Commercial Core Plan and
Red Hill Specific Plan areas. The changes to the Ordinance provide additional support towards the
development of housing and affordable housing.
Please let me know if you should have any additional questions.
Thank you,
Justina
2
Justina Willkom
Community Development Director
300 Centennial Way,Tustin,CA 92780
-3113
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TUSTIN
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HISTORY
BUILDING OUR FUTURE
HONORING OUR PAST
TUSTIN HOUSING AUTHORITY
ANNUAL REPORT
FY 2020-2021
TUSTIN HOUSING AUTHORITY
FY 2020 - 2021
ESTABLISHED
The Tustin Housing Authority ("Housing Authority") was established on March 15, 2011
and the By-Laws were adopted on April 19, 2011 . On January 17, 2012, pursuant to
California Health and Safety Code Section 34176, the Housing Authority assumed all
housing assets and functions previously performed by the former Tustin Community
Redevelopment Agency ("Agency"). The assumption of assets and functions became
effective February 1 , 2012.
ANNUAL REPORT
In accordance with Section 34328 of California Housing Authorities Law ("CHAL"), the
Housing Authority is filing on the first day of October with the City Clerk and with the
Department of Housing and Community Development ("HCD") a complete report of its
activities for the preceding year. The report is broken out into two sections: 1) compliance
information adequate for the City of Tustin ("City") and HCD to determine the
requirements of Section 34312.3 have been met for any activity undertaken pursuant to
that section; and 2) a breakdown of activities associated with the assumption of housing
assets and functions from the former Agency.
SECTION ONE shall also make either directly or through any national, regional, or state
housing association or organization of which it may be a member, recommendations with
reference to additional legislation or other action which it deems necessary to carry out
the purposes of CHAL.
SECTION ONE — COMPLIANCE WITH CHAL
Pursuant to Section 34328.1 of CHAL, the annual report contains the following:
1 . Recommendations for needed legislation to carry on properly a program of housing
and community development in this state.
a. Currently, the Surplus Land Act (SLA) Legislation, Density Bonus Law, the
Housing Element/Regional Housing Needs Assessment (RHNA) do not
account for California Tax Credit Allocation Committee (TCAC)very low and
low income units in the same manner. In most cases, TCAC very low and
low income units are not considered very low and low income units under
SLA and Density Bonus Law, especially in high-income counties like
Orange County. It is possible TCAC very low income units "might" meet low
income requirements for SLA and Density Bonus Law and low income units
do not meet SLA and Density Bonus law requirements in Orange County.
The Housing Element and RHNA do recognize TCAC very low and low
income units as such and it is our recommendation SLA and Density Bonus
Law should do the same. Developing affordable housing has many
challenges and without consistent definitions for very low and low income
units across all affordable housing legislative requirements and funding
sources, the development of affordable housing becomes even more
challenging.
b. With the recent passage of Assembly Bill 1486 — amending the Surplus
Land Act, military base properties are now subject to SLA legislation without
regard for the large infrastructure investment needed to redevelop a former
military base. TCAC has previously established categories in their proposal
scoring system that awards bonus points for projects meeting the criteria
within that category. The Tustin Housing Authority recommends TCAC
create a former military base category, which awards bonus points in the
scoring of an affordable housing project proposed on a former military base.
2. Data on terminations of tenancies of victims of domestic violence in housing
authority units, and terminations of Section 8 vouchers of victims of domestic
violence.
a. The Housing Authority does not currently own or operate housing authority
units or issue Section 8 vouchers. As a result, the authority does not have
any data to report.
3. Pursuant to Section 34328, the annual report contains information adequate for the
City and HCD to determine that the requirements of Section 34312.3 have been met
for any activity undertaken pursuant to that section.
a. The Housing Authority did not issue revenue bonds, make or undertake
commitments, or purchase or undertake commitments associated with
multifamily rental housing.
4. Any activities where the authority developed, rehabilitated, or financed housing
projects or participated in the development, rehabilitation, or financing of housing
projects, or purchased, sold, leased, owned, operated, or managed housing projects
so assisted, are subject to all of the requirements of Section 34312.3.
a. The Housing Authority does not have any activity to report.
5. A reporting breakdown of occupancy by income levels and rents for housing projects
assisted by the authority that demonstrate compliance.
a. The Housing Authority does not have any activity to report.
6. Any indebtedness incurred pursuant to a mortgage loan finance under the terms of
Section 34312.3 that is subject to acceleration and the balance owing declared
immediately due and payable upon any sale of an owner-occupied residence to a
purchaser who does not meet the required qualifications for borrowers as
established by the authority.
a. The Housing Authority does not have any activity to report.
7. Certification that the authority shall require the owners of housing projects assisted
pursuant to Section 34312.3 to accept as tenants, on the same basis as all other
prospective tenants, in the units reserved for very low income households, any very
low income households who are recipients of federal certificates for rent subsidies
pursuant to the existing program under Section 8 of the United States Housing Act
of 1937 (42 U.S.C. Sec. 1437f), or its successor. The authority shall not permit
selection criteria to be applied to Section 8 certificate holders that is any more
burdensome than the criteria applied to all other prospective tenants.
a. The Housing Authority does not have any activity to report.
8. A determination that no resident in housing units assisted pursuant to Section
34312.3 was denied continued occupancy or ownership because, after admission,
the resident's family income increased to exceed the eligibility level. However, the
authority shall ensure that percentage requirements of this section shall continue to
be met by providing the next available unit or units to persons of low income or by
taking other actions to satisfy the percentage requirements of this section.
a. The Housing Authority does not have any activity to report.
9. A determination in whether the percentage requirements of subdivision (c) of Section
34312.3 have been achieved.
a. The Housing Authority does not have any activity to report.
10. Units required to be reserved for occupancy by subdivision (c) and financed with the
proceeds of bonds issued on or after January 1 , 1986, shall remain occupied by, or
made available to, those persons until the bonds are retired.
a. The Housing Authority does not have any activity to report.
11 . Determination that multifamily rental housing financed pursuant to Section 34312.3
is not subject to the requirements of subparagraph (B) of paragraph (1) and
paragraph (2) of subdivision (C), and the requirements of subdivision (D), as a result
of fulfilling all requirements.
a. The Housing Authority does not have any activity to report.
12. It is the intent of the Legislature, and the Legislature declares, that housing
authorities are the local entities with primary responsibility for providing housing for
low income and very low income households within their jurisdictions. However,
recognizing that housing projects only for low income households cannot be
adequately assisted or developed with currently available funds, and that excess
funds from housing projects assisted pursuant to this section can be utilized to
further assist in the provision of housing for lower income households, it is the intent
of the Legislature that the authorization of this section is to be used to enhance and
supplement the traditional housing authority role of providing housing only for low
income households.
a. On February 1 , 2012, the Housing Authority assumed all housing assets
and functions previously performed by the former Agency. SECTION TWO
details the expanded role the Housing Authority has assumed.
13. The authority shall provide HCD funds as requested by the department to reimburse
the department for the cost of processing the report required by this section.
a. The Housing Authority has not participated in the construction or acquisition
of housing projects as defined by CHAL and the lack of activity is reported
in Section One accordingly. As a result, the Housing Authority is requesting
relief from HCD's requirement that the authority reimburse the department.
SECTION TWO — ASSUMPTION OF AGENCY ASSETS & FUNCTIONS
Effective February 1 , 2012, the Housing Authority assumed the housing assets and
functions of the former Agency. The assumption included three hundred five (305)
covenant-restricted affordable housing ownership units, two (2) covenant-restricted
senior affordable housing rental projects and two (2) loan-restricted affordable housing
rental four-plexes. In FY 2012-2013, the homeowner of one (1) covenant-restricted
ownership unit paid off their first-time homebuyer loan, thus removing the affordability
restrictions. In FY 2015-2016, sixteen (16) affordable housing covenants expired in the
Tustin Grove development. On June 7, 2016, the Housing Authority Commission
authorized the sale of two (2) Authority-owned affordable homes at market rate. One (1)
of the units was acquired in order to cure an affordable moderate income homeowner's
default and the second was acquired during a Trustee's Sale. The two (2) units were
listed for sale in FY 2015-2016, both units sold, at market rate in FY 2016-2017. In FY
2016-2017, five (5) affordable housing covenants expired in the Ambrose Lane
development. During FY 2017-2018, two (2) Authority-owned affordable homes were
acquired in a Trustee's Sale, one (1) sold in FY 2017-2018 and the other sold in FY 2018-
2019, as authorized by the Housing Authority Commission, at market rate. As of the
reporting date, the Housing Authority is managing 279 covenant-restricted affordable
housing units. The functions the Housing Authority assumed are detailed in the following
FY 2020-2021 activities report:
1. The Housing Authority assisted five (5) existing homeowners sell their affordable
housing units to income-eligible homeowners. Functions included the following:
a. Provided existing homeowners with the maximum affordable sales price.
The Housing Authority prepared maximum affordable sales price quotes for
twenty-two (22) homeowners who were considering selling their home; and
b. Reviewed required application documents to determine income-eligibility of
prospective homebuyers; and
c. Reviewed title reports, appraisals, and purchase documentation in order to
calculate the "silent second" the City would record against the property; and
d. Prepared affordable housing documents for signature by both parties; and
e. Followed up with the escrow company to insure all affordable housing
documents were recorded against the property as prepared.
In addition to affordable ownership sales activity, the Housing Authority assumed
the functions of administering the Residential Rehabilitation Program and facilitating
new affordable ownership purchases. As a result of the passage of AB1X 26, the
State eliminated funds for the Residential Rehabilitation Program. All housing
developments, which included affordable housing ownership units, have been
completed and the affordable housing units were sold prior to FY 2020-2021 . There
are currently no affordable housing ownership units planned for construction. The
following table summarizes activity by income category for New Purchase, Resale
and Rehab activity:
OWNERSHIP
Income Level New Purchases Resales Rehab TOTAL
Very Low Income 0 1 0 1
Low Income 0 2 0 2
Moderate Income 0 2 0 2
TOTAL 0 5 0 5
2. The Housing Authority assisted thirty-three (33) affordable homeowners refinance
their existing mortgage by subordinating the City's Silent Second to the new first
mortgage. Twenty-eight (28) affordable homeowners successfully refinanced their
mortgage, resulting in an average savings of $90.59 per month. Fourteen (14) of
the twenty-eight (28) reduced their loan term from 30 years to either 20, 15 or 10
years.
3. The Housing Authority is responsible for monitoring the affordability restrictions
recorded against the 279 affordable ownership units located within five (5) housing
developments. As a result of each development's different monitoring criteria, the
Housing Authority mailed out two hundred fifty-four (254) "Annual Owner
Certification" forms prior to the end of FY 2020-2021. Homeowners must initial and
sign the forms and submit requested documentation.
4. Of the 279 units, the Housing Authority assumed eighteen (18) transitional housing
units with three (3) non-profit agencies: Human Options, Inc.; Salvation Army; and
OC Gateway to Housing, managing six (6) units each. As part of the Housing
Authority's annual monitoring, the Authority requests an annual report from each of
the agencies. The following is a combined summary of the activity that occurred in
FY 2020 - 2021 :
TRANSITIONAL HOUSING
Adults 18-62 Adults 62+ Children 0-18 Disabled
Total# Men Women Men Women Preschool School
Families served in FY 2020/2021 51 5 48 0 0 37 65 10
Families currently being served as of June 22 2 20 0 0 14 16 0
30,2021.
PERMANENT HOUSING
Ownership Rental
Total# Subsidized Unsubsidized Subsidized Unsubsidized
Families moved into permanent housing 20 0 1 6 13
Families moved in with other family 1
Families moved for other reasons 8
EMPLOYMENT
Total# Total# Total#
Employed before entering the program Obtained Employment during the Lost job while in the program and
36 program 9 currently unemployed 5
Lost job while in the program but found a 6 Unemployed throughout the 7 Received a promotion while in 5
new one program the program
Received a raise while in the program 7 Average%Income increase while 353% Received a pay 2
in the program reduction while in the program
EDUCATION
Total# Total# Total#
Attending College before entering the Enrolled in College during the Received a college degree or
program 3 program 2 certificate 4
Enrolled in a trade school or other Adults completed GED or obtaining Children completed GED or
specialized training during the program 6 HS Diploma during the program 0 obtaining HS Diploma during the 4
program
Enrolled into a GED program during the Preschoolers enrolled in an Early Preschoolers in child care
program 0 Start or Head Start program 27 31
COUNSELING
NEEL-
Total# Total# Total#
Families receiving counseling/life skills Adults receiving counseling/life Children receiving counseling
training during the program 11 skills 14 during the program 17
during the program
Total Hours 286 Total Hours 248 Total Hours 117
5. The Housing Authority assumed the functions of monitoring the two (2) covenant-
restricted senior affordable housing rental projects (Heritage Place and Coventry
Court) and two (2) loan-restricted affordable housing four-plexes. There are fifty-
three (53) affordable units (17 —very low; and 36 — low) and one (1) manager's unit
at Heritage Place. As of June 30, 2021 , 16 very low and 35 low units were leased.
At Coventry Court, one hundred fifty-three (153) of the two hundred forty (240) units
are affordable (36 — very low; 61 — low; and 56 — moderate). As of June 30, 2021 ,
36 very low, 61 low, and 55 moderate affordable units were leased. As a result of
the passage ofAB1X 26, the State eliminated funds forthe Residential Rehabilitation
Program.
6. During FY 2014 — 2015, two covenant-restricted affordable housing rental projects
in Tustin Legacy (Amalfi and Anton Legacy) began leasing. During FY 2015-2016,
the Housing Authority assumed the functions of monitoring both projects. At Amalfi,
thirty-seven (37) of the five hundred thirty-three (533) units are moderate-income,
affordable units. As of June 30, 2021, 36 units were leased. There are two hundred
twenty-five (225) affordable units (88 - very low; 73 — low; and 64 — moderate) at
Anton Legacy. As of June 30, 2021 , 83 very low, 72 low, and 58 moderate units
were leased. The following table summarizes activity by income category for Rental
Housing activity:
RENTAL HOUSING
Income Level Rehab Senior Family
Very Low Income 0 52 83
Low Income 0 96 72
Moderate Income 0 55 94
TOTAL 0 203 249
7. As identified in the City's 2008-09/2017-18 Comprehensive Affordable Housing
Strategy, there were two hundred seventy-seven (277) affordable rental units in
Tustin which were at-risk due to expiring affordability restrictions. These units are
not restricted by agreements with the Housing Authority and are not part of the
Housing Authority's affordable rental inventory but they are restricted through
agreements with State and Federal agencies. In November 2013, the affordability
restrictions associated with the Irvine Company Apartment Communities' Rancho
Alisal, Rancho Maderas and Rancho Tierra expired, allowing one hundred
seventy-seven (177) affordable rental units to convert to market rate. The plan to
preserve affordability outlined in the Housing Strategy was not viable with the
Dissolution of Redevelopment and the recapture by the State of the Housing
Authority's Low and Moderate Income Housing Fund Balance. Affected renters
were referred to the County of Orange Affordable Housing Rental List as well as
encouraged to place their names on interest lists for Amalfi and Anton Legacy
Apartments. We continue to monitor the remaining 100 units which are at risk.
8. The former Tustin Community Redevelopment Agency purchased two (2) four-
plexes with low and moderate income housing funds in 2000, then sold them to the
City in 2010. The City and the Housing Authority, which had been managing the
units since the Dissolution of Redevelopment, and the Orange County Rescue
Mission (OCRM) developed a proposal for OCRM to purchase the four-plexes for
the purpose of providing services to homeless veterans. On December 16, 2014,
the City Council approved the proposal to convey the two (2) City-owned four-plexes
to OCRM for homeless Veterans' housing. On February 10, 2015, the sale was
executed. In June of 2016, OCRM completed the rehabilitation of the units and, on
July 26, 2016, the first twenty-one (21) of twenty-six (26) homeless veterans moved
in to their new home at the Tustin Veterans Outpost.
As part of the annual monitoring, the Housing Authority requests an annual report
from OCRM. The following is a summary of the activity occurring in FY 2020 - 2021:
VETERANS FAMILY MEMBERS
Men Women Spouses Children
Total Disabled Disabled
Veterans currently
being served as of 10 7 1 1 1 3 7
June 30, 2021
Veterans Served in FY
2020-2021 20 13 3 3 1 5 7
EMPLOYMENT
Employed before 2 Obtained 9 Received a 3
entering the program employment during promotion or
the program pay raise
while in
program
EDUCATION
Obtained a trade school 1 Children attended school during 4
certificate during the program the program
HOUSING
Transitioned into 0 Transitioned into 0 Transitioned 7
permanent market rate permanent into stable
housing subsidized or housing
affordable housing
Transitioned into a higher level 1 Transitioned into a lower level of 2
of care care
SERVICES
Bed nights provided 5,685
Meals provided 17,052
Individual counseling sessions provided 1,440
Group counseling sessions provided 628
Mental health counseling sessions provided 472
Veterans enrolled in healthcare (VA benefits/Medi-Cal) 20
Legal consultation sessions provided 4
Community resource referrals provided 2
9. In September 2018, the City Council adopted the Voluntary Workforce Housing
Incentive Program, an inclusionary housing and in-lieu fees policy, brought forward
by the Housing Authority. The policy requires developers to create affordable
housing and/or pay an in-lieu fee towards the creation of affordable housing within
the Downtown Commercial Core Plan and the Red Hill Specific Plan. Through June
30, 2021 , $1,979,632.17 in in-lieu fees have been collected under the policy. Two
major opportunities for these funds will be 1) to provide the gap financing necessary
to support the financeability of a 100% affordable housing project and 2) to preserve
affordable housing units at-risk due to expiring affordability covenants.
10. On July 5, 2016, the City and the Housing Authority entered into a Disposition and
Development Agreement (DDA) with Habitat for Humanity of Orange County
("Habitat"). In FY 2017-2018 the City conveyed a City-owned, R3-zoned lot to
Habitat for the purpose of building two (2) affordable units to be sold to income-
eligible Veterans. Construction of the two homes began in FY 2017-2018. In FY
2018-2019, construction was completed and two Veteran families moved in to their
new homes in December 2018.
11 . On November 6, 2018, the City and the Housing Authority entered into an Exclusive
Negotiation Agreement with Family Promise of Orange County to build the "House
of Ruth", a seven-unit transitional housing apartment development for homeless
families. On February 18, 2020, the City Council approved a Disposition and
Development Agreement with Family Promise. Family Promise, along with their
partner HomeAid Orange County, are currently raising the necessary funds to
construct and operate the project.
12. On January 15, 2019, the Housing Authority entered into an agreement with
Temporary Shelter Inc., to operate the Tustin Temporary Emergency Shelter
("TTES"), a low-barrier, fifty-seven (57) bed shelter serving homeless with ties to
Tustin. TTES opened on March 18, 2019 and, as of June 30, 2021 , there were forty-
two (42) guests. During FY 2020-2021, TTES sheltered one hundred four (104)
guests and, of the one hundred one (101) exits, thirty-four (34) guests transitioned
positively into more stable housing.
Agenda Item RDA 2
* (� Reviewed:
.A�...J(�!ENDA REPORT City Manager
Finance Director
MEETING DATE: November 6, 2007
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: REDEVELOPMENT AGENCY STAFF
SUBJECT: ADOPTION OF A LOCAL WORKFORCE HOUSING PREFERENCE POLICY FOR
PARTICIPANTS IN THE CITY'S AFFORDABLE HOUSING PROGRAMS
SUMMARY
Tustin City Council and Tustin Community Redevelopment Agency Board approval is requested
for adoption of a Local Workforce Housing Preference Policy for participants in City or Agency
affordable housing programs.
RECOMMENDATION
It is recommended that the Tustin City Council and Tustin Community Redevelopment Agency
Board adopt the attached Local Workforce Housing Preference Policy for those interested in
seeking affordable housing opportunities in Tustin by granting current Tustin residents or
individuals employed within the city of Tustin preference over an applicant who does not currently
reside or is not employed in the City of Tustin.
FISCAL IMPACT
This action will have no fiscal impact on the City or Agency at this time.
BACKGROUND/DISCUSSION
Many families and/or individuals cannot afford to live in the same city in which they are
employed. Included in this category are people who contribute to the community on a daily basis
whether it's the local restaurant, hospital or school and encompasses a wide variety of
professions including, but not limited to food service workers, nurses, teachers, retail sales
associates, and police officers.
The local employment preference, also referred to as a workforce housing preference, would
assist employees working in the city of Tustin to secure affordable housing in close proximity to
their place of employment. In addition, it would assist in alleviating the number of commuters
congesting the local highways. It also provides these families with the opportunity to become an
integral part of the community by reducing the amount of time spent commuting to and from
work on a daily basis.
William A. Huston
Preference Policy
November 6, 2007
Page 2
In addition, the high cost of housing has caused many families to move to the Inland Empire
(Riverside and San Bernardino counties) and away from their families in search of reasonable
housing accommodations. The local residency preference would assist current residents in
need of affordable housing with an opportunity to remain in their existing community.
This methodology was used to establish the waiting list for the affordable housing units at the
Villages of Columbus which included the Camden Place, Cambridge Lane and Clarendon
neighborhoods. The table below represents the number of applicants who participated in the
Villages of Columbus Affordable Housing Lottery in relation to those who had either a Tustin
residency or employment preference. Approximately 23% of those who participated in the lottery
received a local preference with 9% purchasing a unit. The remaining 91% of the local preference
pool of applicants wishing to purchase units in these projects received an opportunity to purchase
but either declined or did not qualify for purchase of the units.
ModerateVery- Low Low . .
Total number of pre-qualified
applicants who participated in the 148 319 196 663
Lottery.
Total number of pre-qualified
applicants who participated in the 30 74 46 150
Lottery and received preference
Total number of applicants who
received preference and purchased a 10 30 17 57
unit.
Total number of affordable units 25 64 54 143
It is staff's recommendation that the City Council adopt a Local Workforce Housing Preference
Policy for participants in the City's affordable housing programs where certain factors, including but
not limited to the following may apply (1) the unit has been developed as part of a Disposition and
Development Agreement's Affordable Housing Obligation (2) the City or Agency has assisted in
gap financing for those development projects where affordable housing units are provided (3) the
City or Agency facilitated the projects access directly or indirectly to tax-exempt financing for the
project and (4) the City has provided a density bonus for the project.
The Local Workforce Housing Preference Policy is a priority system where applicants who are
currently employed in or currently residing in the city of Tustin would have a priority over an
applicant who does not currently reside or is not employed in the City of Tustin. In order to
qualify for the local preference, the applicants must have at least six months of employment or
residency in Tustin. The applicant will be required to complete a Certification of Eligibility —
Local Workforce Housing Policy Form and provide the required supporting documentation.
The establishment of this Policy assists the City in providing balanced housing opportunities to
very-low to moderate-income families who live and work in Tustin.
Staff will be available on November 6, 2007, to answer any questions.
'16"7 Az::nlm�- /rl�
Christine Shingleton Kimberly M Allen
Assistant City Manager Redevelopment Project Manager
Attachments
City of Tustin and Tustin Community Redevelopment Agency
Local Workforce Housing Preference Policy
for Affordable Housing Opportunities
The City of Tustin and the Tustin Community Redevelopment Agency have established
a local preference to families and/or individuals interested in purchasing or renting an
affordable housing unit within the City boundaries where certain factors, including but not
limited to the following apply: (1) the unit has been developed as part of a Disposition
and Development Agreement's Affordable Housing Obligation (2) the City or Agency has
assisted in gap financing for those development projects where affordable housing units
are provided (3) the City or Agency facilitated the projects access directly or indirectly to
tax-exempt financing for the project and (4) the City has provided a density bonus for the
project. The purpose of the policy is to assist in housing individuals and/or families who
are part of the current Tustin workforce or currently reside in Tustin.
This program would also assist in alleviating congestion on local highways by cutting
down on the commute many workers are experiencing in traveling to and from work.
In addition, due to the high costs of housing in Orange County, many are forced to move
to the Inland Empire (Riverside and San Bernardino County). The implementation of this
policy will assist in preventing the flight of current residents to other counties in search of
affordable housing.
Local Preference is a priority system where applicants that are currently employed in or
currently residing in the city of Tustin have a priority over an applicant that does not
currently reside or is not employed in the City of Tustin. To qualify for the Local
Preference, a minimum requirement of six months employment or residency is required.
In order to create a pool of diverse applicants and to encourage development of
Workforce Housing in Tustin, a policy has been established to grant residency and/or
employment preference to families and/or individuals who cannot afford to live in Tustin.
Employment "Workforce Housing"
Many families and/or individuals cannot afford to live in the same city where they are
employed. This category includes people who contribute to the community on a daily
basis whether it's the local restaurant, hospital or school. It includes a wide variety of
professions including, but not limited to food service workers, nurses, teachers, retail
sales associates, and police officers.
Workforce Housing is further defined as housing available at an affordable cost to
families and/or individuals whose income does not exceed 120% of the area median
income. The area median income (AMI) is an estimate of the median income of a
Metropolitan Statistical area calculated by the California Department of Housing and
Community Development. See the chart listed below for the current 2007 maximum
income levels established for Orange County, which will be adjusted on an annual basis.
Standards for Affordable Housing Programs
Very-Low-, Low- , and Moderate-Income Households
Maximum Income Levels
2007
Household Very-Low-Income Low-Income Moderate-Income
Size Up to 50% Up to 80% Up to 120%
of Median Income of Median Income of Median Income
1 $27,550 or less $44,080 or less $66,120 or less
2 $31,500 $50,400 $75,600
3 $35,400 $56,640 $84,960
4 $39,350 $62,960 $94,440
5 $42,500 $68,000 $102,000
6 $45,650 $73,040 $109,560
7 $48,800 $78,080 $117,120
8 $51,950 $83,120 $124,680
2007 Orange County Median Annual Income: $78,700 (based on a family of four)
Residency
The high cost of housing is causing many families to move out of Orange County to find
affordable housing. The residency preference would provide local residents in need of
affordable housing with an opportunity to remain in their existing community.
By establishing a "Local Workforce Housing Preference Policy" the City and the Tustin
Community Redevelopment Agency will be able to assist in providing affordable housing
opportunities to very-low-, low-, and moderate-income families currently employed or
residing in the City of Tustin, thus providing balanced housing opportunities.
Policy:
The City and Agency have adopted a policy to grant preference to applicants of
affordable housing units that are either:
1. Employed within the city of Tustin, or
2. A current resident within the city of Tustin
Subject to this policy, applicants interested in purchasing or renting any affordable
housing unit located within the City of Tustin's boundaries who qualify for a priority
determination based on one of the preferences listed above shall be given priority over
applicants that are not currently employed in or residing in Tustin. A minimum
requirement of six months employment or residency in the City of Tustin is required to
qualify for the preference.
In order to verify residency, the applicant(s) must provide two of the following:
• Driver's License with local address
• Copy of current utility bill in applicants name with local address
• Copy of applicants current rental/lease agreement reflecting local address
• Copy of applicants automobile and/or renters or homeowners insurance policy for
residence insured in Tustin with local address
In order to verify local employment, the applicant(s) must provide the last three pay
stubs with the name and address of the company printed on the pay stub. If the pay
stub does not provide the name and address of the company, in addition to the pay
stubs, a letter from the employer verifying employment will be required.
The Developer, Lender, or Leasing Agent in each housing development will be required
to verify residency by collecting the required documentation.
The applicant(s) will be required to sign a Certification of Eligibility — Local Workforce
Housing Policy form stating that the information provided on their application regarding
local employment and/or residency is true and that providing false information will
permanently disqualify them from participation in any of the City's affordable housing
programs.
The Certification of Eligibility — the Local Workforce Housing Policy form and supporting
documentation must be provided to the City of Tustin and Tustin Community
Redevelopment Agency with the initial loan packet submission from the lender or rental
certification from Leasing Office.
CERTIFICATION OF ELIGIBILITY
LOCAL WORKFORCE HOUSING POLICY FORM
APPLICANT
CO-APPLICANT
LOCALADDRESS
LOCAL EMPLOYER
PROPOSED ADDRESS
The undersigned ("Applicant/Purchaser") hereby certify(ies) the following:
Purchaser acknowledges that preference in this affordable housing program was granted due to
the applicant's ability to meet the minimum six month requirement of either current Tustin
residency or employment and has provided the two required documents to substantiate claim of
local residency/employment.
Documents Provided:
Residency:
❑ Driver's License with local address
Copy of current utility bill in applicants name with local address
❑ Copy of applicants current rental/lease agreement reflecting local address
❑ Copy of applicants automobile and/or renters or homeowner's insurance policy
with local address
Employment
❑ Last three pay stubs with name and address of employer printed on check
Last three pay stubs and letter from employer verifying employment
CERTIFICATION: IfWe certify that the information provided in this Certification of
Eligibility — Local Preferences is true and correct as of the date indicated below.
I/We acknowledge my/our understanding that the intentional or negligent
misrepresentation(s) of the information contained in this request in will result in
permanent disqualification from participation in any of the City of Tustin's
Affordable Housing Programs.
All persons listed on the purchase contract and loan application (ownership) or lease
agreement (rental) must sign this certificate.
Applicant Co-Applicant
Signature Signature
Printed Name Printed Name
Date Date