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RES-8225 Approving General Plan Amendment No. 5-93RESOLUTION 8225 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE UPHOLDING THE RECOMMENDATION OF THE PLANNING COMMISSION OF THE CITY OF ORANGE AND APPROVING A GENERAL PLAN AMENDMENT REQUEST TO AMEND THE HOUSING ELEMENT OF THE GENERAL PLAN GENERAL PLAN AMENDMENT 5- 93 APPLICANT: CITY OF ORANGE WHEREAS, after duly noticed public hearings as required by law, the City Council of the City of Orange considered a recommendation of the Planning Commission of the City of Orange recommending, by Resolution No. PC- 29-93, that the City Council approv~ a General Plan Amendment request to amend the Housing Element of the General Plan.WHEREAS, upon close of the public hearing before the City Council, did find the following facts:1. That the request is to amend the Housing Element of the General Plan for the following reasons:A. To promote equal housing opportunities of all segments of the community.B. To encourage and promote development of affordable housing in order to meet the needs of all residents of the City of Orange within the various income ranges.C. To encourage the maintenance, preservation and upgrading of the quality of existing residential neighborhoods.D.To promote opportunities for affordable housing beyond the City'simmediate corporate limits.r E. To encourage housing projects designed to accommodate residents of the City that have special and unique housing needs.F. To sponsor programs which heighten community awareness for preservation of historically significant residential structures.G. To support programs which promote fair housing opportunities.2. A previous Environmental Impact Report (State Clearinghouse 88072721) was certified in August 22, amendment is within the scope of the program approved in August of 1989 and is adequately described for the purposes of CEQA. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange that the recommendation of the Planning Commission be upheld and that the City Council approve this General Plan Amendment which modifies the Housing Element of the General Plan attached hereto as Exhibit "A". ADOPTED this 24th day of August 1993. Orange ATTEST: Marilyn J. Jensen City Clerk of the City of Orange GAAi~MrfIJ/;/;~ArX- Deputy CitL1Clerk I hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 24th day of Ano",;t , 1993 by the following vote: AYES:COUNCILMEMBERS: SPURGEON, BARRERA, MAYOR BEYER, COONTZ, MURPHY NOES:COUNCILMEMBERS: NONE ABSENT:COUNCILMEMBERS: NONE Marilyn J Jensen City Clerk of the City of Orang& Q~- Deputy Ci~Clerk Reso No. 8225 2-pss FINAL HOUSING ELEMENT City of Orange General Plan Resolution No. 8225 August, 1993 City of Orange City Council Gene Beyer, Mayor Fred Barrera, Mayor Pro Tem Joanne Coontz Mike Spurgeon Mark Murphy City of Orange Planning Commission Randy Bosch, Chairman Bill Cathcart Teresa E. Smith Bob Walters Ben Pruett Orange City Staff Jack McGee Community Development Director Jere P. Murphy Community Development Department Mary Ann Chamberlain Community Development Department Mary Ellen Laster Redevelopment Agency Consultants Cotton/Beland/Associates, Inc. UST OF TABLES fm Table H-l: Housing Element Requirements 3 Table H-2: Housing Element Policy Matrix 12 Table H-3: Land and Construction Costs 21 Table H-4: City of Orange - Vacant Residential Land Inventory 26 Table H-5: East Orange - Vacant Residential Land Inventory 28 Table H-6: Residential Holding Capacity of Orange and East Orange General Plans 32 Table H-7: Available Land Versus Housing Goals 35 Table H-8: Housing Overpayment by Income Group and Tenure 36 Table H-9: Special Housing Needs Summary 39 Table H-I0: Assisted Senior Housing Projects 46 Table H-11: Assisted Housing Inventory 50 Table H-12: Monthly Basic Rents for Casa Ramon 53 Table H- 13: Replacement Housing Costs 56 Table H-14: Housing Program Summary TABLE OF CONTENTS Section fm Introduction to the Housing Element 1 Purpose of this Element Related Plans and Programs Scope and Content of this Element Community PartiCipation 1 2 4 4 Housing Element Goals and Policies 6 Housing Maintenance and Upgrading Housing Affordability Housing for Residents with Special Needs Historic Preservation Fair Housing Programs Energy Conservation Related General Plan Policies 6 7 9 10 10 10 11 Housing Plan 13 Summary of Housing Constraints Summary of Housing Opportunities Summary of Housing Needs Summary of Past Housing Accomplishments Assisted Housing at Risk of Conversion Housing Programs 13 23 33 40 48 57 Purpose of the Element INTRODUCTION TO THE HOUSING ELEMENT In July of 1987, the Orange City Council adopted an update of the Housing Element prepared in 1981. This element represents a reformatting of the 1987 element to provide a format consistent with the 1989 comprehensive General Plan update and to revise goals, policies and programs to include more up- to-date housing data. The state Department of Housing and Community Development (BCD) reviewed the City's (1989) adopted Housing Element in March 1992, and identified several areas which, in their opinion required revision to more fully address state housing element law. The City's Housing Element is being amended at this time in response to HCD's comments, to address recent changes in State law, and to incorporate housing programs the City has undertaken since adoption of the previous element, including formation of a non-profit housing development corporation,As its name implies, the Housing Element addresses housing and housing-related issues. This element builds upon the use policy presented in the Land Use Element by identifying strategies and programs which address housing affordability, rehabilitation of substandard units, and the supply of housing needed to meet future demands,The State has established general Statewide housing goals which call for adequate housing to be provided for all income groups, To implement this goal, the State Legislature requires that certain housing issues be examined and addressed at the local level. The Housing Element serves as the mechanism through which cities and counties work to support the following Statewide housing policies:The availability of housing is of vital Statewide importance, and early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order.The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels.The provision of housing affordable to low- and moderate-income households requires the cooperation of all levels of government.Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic,environmental, and fiscal factors and community goals set forth in the Housing Element - 1 general plan and to cooperate with other local governments and the State in addressing regional housing needs. The State, through the Department of Housing and Community Development, has developed very defined guidelines to assist jurisdictions in further developing and implementing housing policy at the local level. Table H- l summarizes State requirements.Related Plans and Programs Because the provision of housing is a regional issue, regional agencies at the County, State and Federal levels have been involved in developing housing policies and programs which affect Orange.SCAG Programs: Most significantly, the Southern California Association of Governments (SCAG) has prepared a Regional Housing Needs Assessment RHNA) for the five county SCAG region. The assessment, referred to as the RHNA, outlines anticipated housing needs for all cities in the five counties.The RHNA and its relationship to Orange housing policy are discussed in the section of this element titled .Summary of Housing Needs. .Slate Programs: The State Department of Housing and Community Development has four divisions responsible for overseeing programs for low and moderate income households. These four divisions and their responsibilities are as follows:1. Housing Policy Development Division reviews housing elements.2, Community Affairs Division is responsible for loans and grants.3. Codes and Standards Division is responsible for the State Building Codes.4. The Century Freeway Division is accountable for state actions which abut the Century Freeway communities.State programs such as the Rental Housing Construction Program provide loans and grants through local or State agencies for housing construction,rehabilitation, mobile home park conversion, rental assistance, and the like.Federal Programs: Programs funded by the U.S. Department of Housing and Urban Development (HUD) which provide grants directly to the City of Orange include the Community Development Block Grant (CDBG) program.Other programs are available for providing loans and grants directly to organizations interested in constructing housing for low and moderate income households in the City. Information about the various Federal programs can be obtained from the local HUn field office.Housing Element - 2 8/93 TABLEH- I HOUSING ELEMENT REQUIREMENTS REQUIRED HOUSING ELEMENT COMPONENT l. Hnndna Need" .A".8;- g 1. Analyail of population trend. in Orange- in relation to reJional trend..2. ADaly.. of employment tmxIa in Oranp in relation 10 naionallleDdl.3. Projection and quantification of Oranac', cxiltina: and projected bouliaa Deed. for aU iacomc JI' OUPS.4. Analy.. and documentation of Oranac', houJin&' characterillica iDcludina: the folIowina:a. level ofhouaina ~ compand 10 ability to pay;b. overcrowdina;c. boom., IIOCt coadition.s. An inventory of land lUitablc for relidcatial development, iDcludina v~ aitca, land bavina ndcvclopmcnt potential, and an analyait of1be re1atiomhip ofmnina public facilitica and aeMcca to thee aitca.6. Analysi. of exiltina and potenUal.ovemmcmalcon.Itaintl upoG the maintcnaace. improvement, or development of houaina for all income 1evc1a.7. Analy.. of exillina and potential nonaovornmcDlal and marbl CODICIaiJU upoa.maintenance. improvement, or development of houaina for all iDeome 1evelI.8. ADaly.;. of _ial hou.... need: bondicoppcd, eldotly. JaraefomiIie.. femaIe..beaded houeeholde, formworIcen.9. Analysi. coocernm, the nccdaofhomele.. individual, and familioa in Oraop.10. Analysi. ofoppol'ltlllitie, for ene..., conaervation with rctpeCt to raidential development.lB. Goals aDd Policies 1. Identification ofOrangc', '001 and policiel relative to mainlenaocc.improvement, and development ofhouaina C. !mol_entation Prooram An implementation proeram mould do the foUowina:Identify adequate litu which will be made available throuab appropmte action with required public . rvicea and facilitie. for a variety ofbou.m, typCli for all income levcH.2, Proaram to ...... in thedevelop""lIl of odeq.....1loouine to .... the ..... of Iow- .nd modenole- income houlCbolcD.3. Identify and, 9ihen appropriate and pouible, remove aovemmentaJ. coutrainb to Ibe maintenance,improvement, and development ofhou.m, in Oranp.4. CODJC.rve and improve Ibe condition. oflbe exi.m, and affordable bouana 1Iock: in Oranp.5. Promote boo-na opponunitie..6. Preserve lower income household. .Hided hou. ing clevclopmeD.lli.Housing Element - 3 Scope and Content of this Element Community Participation This Housing Element, together with the Housing Element Technical Report, addresses all required housing issues identified in Table H-1. The main point of the element itself is to define the housing goals, policies and programs the City will establish to meet its housing responsibility. The element, therefore,simply summarizes housing needs and constraints data and focuses on describing the programs the City will implement to meet its housing needs and to achieve housing goals. A complete compilation of demographic, housing and employment statistics is provided in the Housing Element Technical Report.In order to involve City residents in the Housing Element update, the City established a citizen's committee to draft housing goals and policies to be included in the General Plan. The Housing Committee consisted of eight citizens and one staff member. The Housing Committee met twice a month beginning in June, 1985, Members were from neighborhoods located throughout the City. The committee identified a number of goals and recommendations which were summarized in a report titled "Orange 2000-Housing." The stated goal of the Housing Committee was to determine what the desired needs and priority will be for all the various types of housing in the year 2000 and provide the City with specific steps to achieve these goals. The results of this community effort are summarized in the "Orange 2000" report which was adopted by the City Council in 1986.As part of the overall General Plan update program conducted between 1987 and 1989, citizens were involved via public study sessions and hearings before both the Planning Commission and City Council. Two study sessions were conducted before the Plan underwent the formal public hearing process. The Planning Commission held one hearing, and the Council led two formal hearings plus a Council study session open to the public. The hearings provided citizens with an opportunity to express citizen views on the fmdings,conclusions, and goals, policies and programs spelled out in the Housing Element.Notification of public hearings on the General Plan were published in the local newspaper (Orange City News), and was posted in the civic center and public library. Copies of the Plan were also available for review in these locations.Special interest groups and agencies were provided direct notice of public meetings and hearings on the General Plan. These groups included the Orange Park Acres Association, the Orange Unified School District, the East Orange County Board of Realtors, and the Orange County chapter of the Building Industry Association. This planning effort was preceded by the Orange 2000 planning report which commenced it's reports in June 1985.Housing Element - 4 8/93 The Orange 2000 process evolved with the formation of nine (9) individual study committees with 74 citizens volunteers contributing approximately 3,400 hours in various meetings and study sessions. Through a series of Town Hall Meetings, the Orange 2000 committees solicited input from citizens-at- Iarge in the community which was reflected in their final report as stated above. Many articles were printed in the Common Talk and Orange Independe1l1 which are both local newspapers which reach 35,000 or more households in the Orange area.Housing Element - 5 8/ Housing Maintenance and Upgrading HOUSING ELEMENT GOALS AND POLICIFS The following goals, policies and implementation measures focus on the maintenance of a variety of housing units in terms of type, affordability and style. The policies emphasize the need to maintain affordable housing through assistance programs ranging from housing unit rehabilitation assistance to rental subsidies. The Housing Element goals, policies and implementation measures are arranged under six issues categories including housing unit maintenance and upgrading, housing affordability (both in the City and the unincorporated sphere of influence), housing for persons with special needs, historic preservation, enforcement of fair housing programs, and energy conservation. Substandard and deteriorating housing units, in addition to the obvious problems of blight and appearance, can expose occupants to a variety of hazards ranging from electrical fire to toxic substances and materials used in construction. A number of factors will determine the life expectancy of a housing unit including quality of workmanship, age of unit, location, type of construction, degree of maintenance and upkeep, and a host of others. The following goals and policies encourage the maintenance and upkeep of housing in the City through a variety of programs ranging from financial assistance for unit rehabilitation to continued code enforcement. GOAL I: The City will work to assure that the quality, safety and livability of the housing stock iff the City of Orange is continuously maintained and/or upgraded. POLICY 1.1: Encourage preservation of the existing housing stock with a public information program, financial incentives, and code enforcement. Imolementation 1.1 I: Continue to utilize Community Development Block Grant funds to offer incentives to qualified persons to rehabilitate structurally deficient homes and to promote preventive measures to maintain viability of existing homes with the following programs: a. Low-interest, long-term home improvement financing 5 units/year);b. Deferred repayment home improvement financing for those on fixed incomes (10 units/year);c. Homeowner participation grants for correction of urgent, health and safety related deficiencies (4 units/year);d. Financial incentives for rehabilitation of rental units (10 units/ year); and e, Financial incentives tailored to meet the unique needs of mobile home owners (Attempt to maintain at current assistance levels).Housing Element - 6 8/ Housing AffordabiIity f. Housing Accessibility Program to provide accessibility improvements in the homes of elderly and disabled owner occupants. Implementation 1,1.2: Continue to provide technical assistance to all residential property owners wishing to make property improvements through the Building Division, GOAL 2.0: The City will continue to encourage the maintenance, preservation and upgrading of the quality of existing residential neighborhoods. POLICY 2.1: Encourage .the continued maintenance of residential neighborhoods in Orange. Imolementation 2.1.1: Continue the graffiti removal program currently offered by the City which includes removal of graffiti from public and private property, as well as offering rewards for information leading to the conviction of persons found to be defacing property. Imolementation 2.1.2: Continue to implement Chapter 8.05 of the Orange Municipal Code, "Encouraging Residential Property Maintenance. " Imolementation 2.1.3: Review zoning code provisions for the residential zones in order to seek elimination of uses which are not compatible with the residential environment, and look for opportunities to strengthen development standards where the residential zones interface with other land use zones. Imolementation 2,1.4: Discourage non-residential traffic through residential areas by reviewing subdivision designs as well as monitoring non-residential uses in residential neighborhoods.Imolementation 2,1.5: Implement the Housing Needs Assessment which assesses the community development needs in lower income neighborhoods and to develop a strategy with which to address these needs.Imolementation 2.1.6: Provide for and monitor the adequacy of infrastructure needs within the residential areas.Housing affordability was once a concern of only the very poor, although this is no longer the case. Middle-class residents are finding it increasingly difficult to maintain their standard of living due to increased costs for housing.Younger families just entering the housing market often pay mortgages three to five times greater when compared to the mortgage for the same house less than a decade earlier. The City's conunitment to ensure that an adequate supply of housing is maintained is underscored by the following goal and supporting policies.Housing Element - 7 GOAL 3.0: The City will continue to encourage and promote development of affordable housing in order to meet the Deeds of all residents of the City of Orange within the various income ranges. POLICY 3.1: Consider use of various incentives to encourage development of affordable housing, In pursuing this goal, it should be noted that the federal housing strategy does not encourage government to take a direct role in the development of housing but rather stresses incentives to private enterprise to meet housing needs. Most significantly, federal funds have been either eliminated or substantially reduced for this purpose. Accordingly; it is felt that the most effective method of creating housing to meet the City's needs is to development incentives to private developers to do so. Imolementation 3.1.1: Continue to offer density bonuses of a least 25 percent for developers of affordable housing with approval of a Conditional Use Permit, as authorized by Section 65915 of the California Government Code planning, Zoning and Development Law). Imnlementation 3.1.2: Consider participation by developers in the mortgage revenue bond program (both ownership and rental) which is administered by the County of Orange to encourage development of affordable housing through provision of financing. Imolementation 3.1.3: Develop a fast-track development review process to facilitate City processing of proposals for affordable housing.Imolementation 3,1.4: Review the City's existing development processing fee structure to determine if opportunities exist to waive certain fees to encourage development of affordable housing,Imolementation 3,1.5: Continue to use Community Development Block Grant resources to meet community needs, and plan for the use of the 20 percent redevelopment set-aside funds for developer incentives to encourage housing affordability,Imolementation 3.1.6: Continue to implement the proVISIOns of Sections 65852.1 and 65852.2 of the California Government Code ( planning, Zoning and Development Laws) related to second units in single- family residential zones.POLICY 3.2: Permit the development of manufactured housing in single-family zones, as required by State law,Housing Element - 8 Housing for Residents with Special Needs GOAL 4.0: The City will continue to promote opportunities for affordable housing beyond the City's immediate corporate limits. POLICY 4.1: Plan for a mixture ofresidential density ranges in areas within the City' s sphere of influence. Imolementation 4.1.1: Provide in the General Plan Land Use Element a variety of residential densities throughout the City's planning area. The City intends to promote the construction of housing for both the elderly and disabled. Problems of housing affordability are exacerbated because many residents in these categories are living on fixed incomes. In addition, many elderly and disabled persons require specialized equipment to improve access and mobility. . GOAL 5.0: The City will continue to encourage housing projects designed to accommodate residents of the City with spedal, unique housing needs. POLICY 5.1: Recognize the substantially increasing housing needs of the elderly in Orange, and promote and encourage housing opportunities to this group. Imolementation 5.1.1: Encourage non-profit developers to seek Federal Section 81202 funding for construction of a seniorlhandicapped residential development. One hundred fifteen (115) units are estimated as potentially achievable.POLICY 5,2: Recognize the unique housing needs of the disabled, and provide opportunities to accommodate those needs.Imolementation 5.2,1: Continue to support the Housing Accessibility Program for the disabled which provides grants to modify existing residential units to accommodate the disabled.(See implementation measure 1.1.1 f.)POLICY 5.3: Work to further assess the needs of the homeless, and propose a systematic solution to the problem. It is noted that the very nature of the homeless problem requires a regional or Statewide approach due to the transitory nature of that population.ImDlementation 5,3.1: Work with regional agencies and non-profit organizations to develop and implement a strategy to address the problem of the homeless.Imolementation 5.3,2: Allow for the operation of transitional housing in multi-family and commercial zone districts.Housing Element - 9 8/ Historic Preservation Fair Housing Programs Energy Conservation There are a large number of homes in the City that were constructed at the turn of the century following the first subdivision of land in the 18708. Many of these historic structures are in well-defined districts that are identified in the Historic Preservation Element. The importance of preserving the past is underscored in the following goal and policy which calls for continued efforts in preserving those structures deemed historically significant by the community.GOAL 6.0: The City will continue to sponsor programs which heighten community awareness for preservation of historically significant residential structures.POLICY 6.1: Encourage the appreciation for and preservation of the City' s heritage in the form of those structures identified in the City's historic structure inventory as historically significant.ImDlementation 6. I.l: Implement the goals and objectives contained in the General Plan Historic Preservation Element.ImDlementation 6.1.2: Continue to enforce the Historic Preservation Design Guidelines for Old Towne as they apply to residential dwellings.Housing should be made available to all persons regardless of race, ethnicity or income. The City will support Statewide housing goals that call for equal opportunity for all groups to obtain safe, decent, and affordable housing.GOAL 7.0: The City will support programs which promote fair housing opportunities for all residents of Orange.POLICY 7.1: Promote equal opportunity for housing throughout the City of Orange.ImDlementation 7.1: Provide financing support with Community Development Block Grant funds to a Fair Housing Agency which investigates and resolves cases of housing discrimination.The City of Orange recognized its responsibility in promoting energy conservation efforts in the construction of new housing and the rehabilitation of existing units. Energy conservation serves to reduce energy costs, and therefore overall housing costs, for persons living on fixed incomes.GOAL 8.0: The City will encourage energy conservation in residential construction.Policv 8,1: Encourage energy conservation measures for all residential rehabilitation projects in which the City participates fmancially.Housing Element - 10 8/93 Related General Plan Policies POLICY 8.2: Implement all applicable State statutes and regulations intended to achieve conservation of energy. ImDlementation 8,2.1: Provide all participants in the City's Housing Rehabilitation Program with information on energy conservation, and encourage participants to contact the appropriate utility company to arrange an energy audit. ImDlementation 8.2,2: Review all building permit applications to enforce applicable statutes and regulations which relate to energy conservation. A number of goals, policies, and implementation measures contained in the other elements address those issue areas identified in the Housing Element. Table H-2, Housing Element Policy Matrix, identifies those goals directly or indirectly related to those included in this element.Housing Element - 11 8/93 TABLEH- 2 HOUSING ELEMENT POUCY MATRIX Issue Area Land Use Circulation Open Space" Safety Noise Conservation Housing Maintenance 1.0, 5.0, 6.0 6,0 1. 0 and Upgrading 7.0,8. 0 Housing Affordability 5,0,8. 0 Housing for Residents 5.0,8. 0,with Special Needs 12. 0 Historic Preservation 5.0, 6.0, 7.0 2.0 6. 0 Fair Housing Programs 5,0,8. 0 12. 0 Energy Conservation 5.0 1. 0 This table illustrates the internal consistency of the General Plan by indicating which goals in the other five elements emphasize goals and policies spelled out in the Housing Element.Housing Element - 12 8/93 Summary of Housing Constraints HOUSING PLAN As emphasized in previous sections, a primary goal of the City is to ensure that all social and economic segments of the community have adequate housing today and in the future. To implement this goal and related policies, the City of Orange has targeted its housing and assistance programs to those households with the greatest need. This section of the Housing Element identifies: 1) potential constraints that may affect future residential development; 2) opportunities for new housing; 3) households with special needs; and 4) housing programs geared toward meeting identified needs. Finally, this section evaluates the City's overall ability to meet regional housing needs as defined by the SCAG- RHNA.A number of actual or potential constraints will affect the development of new housing and the maintenance of existing housing. These constraints may be placed in three broad categories: governmental constraints, market constraints and environmental constraints.Governmental Constraints The purpose of local governmental controls is to protect and further the general welfare of the public. It is important to examine these controls periodically to ensure that they are accomplishing their intended purpose. However,government regulations can add to the cost of new housing. Such governmental constraints include land use regulations, permit approval and processing, and application and development fees.Land Use and Zoning Ordinances: The City of Orange presently has four General Plan residential land use categories: Estate Low Density, Low Density, Low Medium Density and Medium Density. The applicable density ranges and the corresponding zone districts are identified in Table LU-2 in the Land Use Element. The Zoning Ordinance specifies the standards for the development of residential properties in the City and limits density to the maximums set forth in the Land Use Element.As of 1988, the incorporated City limits contained 37,142 total housing units.General Plan residential land use policy will allow for up to 62, 701 units within the planning area, assuming 80 percent build-out of all lands in Central Orange designated for residential use, plus build-out of the East Orange General Plan as proposed. This represents a potential net gain of 25,558 units.The 1988 SCAG Regional Housing Needs Assessment calls for Orange to provide 3,857 units in the five year planning period covered by this Housing Element. General Plan land use policy does not place an constraints on achieving this goal since adequate land is available for residential use.Zoning ordinance regulations establish a maximum residential density of 24 units per acre (the R-4 zone). Density bonuses of up to 25 percent may be granted for projects providing housing for lower income families and the elderly. In addition, the zoning ordinance contains special regulations for Housing senior housing projects which allow developers to provide more affordable units. Adequate zoning mechanisms are .available to allow for construction of affordable housing. However the City is in the process of adopting a revised zoning ordinance by the end of the next element cycle. This revised element would establish new density bonus criteria, revised second unit criteria and Single Room Occupancy (SRO) Housing. The city is also formulating an Affordable Housing Plan and Ordinance which will provide incentives to encourage the development of new units for very low, low and moderate income households. Subdivision and Development Controls: Subdivisions and development review are jointly coordinated by the Community Development and Public Works Departments, A key element of this process is the consolidated review by the Environmental Review Board which reviews a project's environmental effects. The Environmental Review Board provides developers with a single point of initial contact where all affected municipal departments are represented and available to provide guidance, This approach eliminates the confusion and inefficiency of dealing with each department on an individual basis. For discretionary projects, this consolidated review process culminates in a recommendation to the Zoning Administrator, Planning Commission and/or City Council, Processing of discretionary projects takes approximately 45 days from the time of submittal to public hearing before the Planning Commission. Those projects which must be heard by the City Council are scheduled about three weeks following the Planning Commission consideration. The City has street dedication requirements, with the developer constructing the street (typical local street right-<lf-way of 60 feet, with 36 foot curb-to-eurb paving). After construction is complete, the roadway is then dedicated to the City. The City also participates in two sub- regional programs designed to mitigate traffic problems. The Traffic System Improvement Program (fSIP)requires developers to pay fees for street improvements. The Major Thoroughfare and Bridge Fee Program is a County administered program which applies to the eastern and southern portions of Orange County. This program also levies fees for circulation improvements from new development.Processing times are reasonable in view of the constraints posed by legal notification, advertising, and the environmental review process. There does not appear to be a legally sufficient method to reduce the schedule in any significant way. A sampling of recommended conditions of approval reveals that such conditions are not unreasonable and are directly related to items of legitimate public interest (e.g., street grades, slope maintenance, dedication of streets, provision of street lights, etc.).In response to concerns about overcrowding, the City prepared a study which reviewed the serious effects that overcrowding of dwelling units has on city services. This study "Residential Occupancy Limitation Study" looked at the adoption of an ordinance which attempted to control overcrowding by limiting Housing Element - he number of occupants allowed per dwelling at levels lower than those allowed under the State mandated Uniform Housing Code (1991 Edition). After many months of public participation at City Council Meetings and other meetings with neighborhood groups, the ordinance was not adopted because of the courts decision regarding the City of Santa Ana's Residential Occupancy Ordinance. Instead staff presented a comprehensive program which would assure the preservation of the character and densities of existing residential neighborhoods and be consistent with the goals, policies and objectives of the General Plan. This comprehensive program included the following components: 1. Continued enforcement of health and safety codes already in place. 2. Created Uniform Inspection Procedures 3. Adopted an education program for property managers and owners. 4. Adopted an ordinance which initiated a Reinspection program and fee which focused on repeat violators of the Orange Municipal Code. Other Code Considerations: The Orange Zoning Code contains residential requirements for lot coverage, set backs, parking, landscaping, and open space that are considered standard for suburban communities in Orange County and Southern California. The City's Building Official can approve mobile homes on single family lots, without a hearing or action by an appointed or elected body. The City also utilizes the office of the Zoning Administrator which was established to perform certain duties for the following purposes: A. To provide a means of appeal by an applicant requesting relief from administrative determinations, actions and decisions as specified herein; B. To provide a method by which minor adjustments from ordinance requirements may be permitted without the necessity of the delays incident to the setting of such matters for public hearing before the Planning Commission. C. To relieve the Planning Commission from the performance of certain functions of a more routine nature which tend to divert this body from the planning and major zoning functions entrusted to said Commission by the Orange Municipal Code and the laws of the State; D. To provide better and faster service to the citizens of the city and to those persons desiring to develop projects within the city through the reduction of the time necessary to consider minor adjustments from ordinance requirements, The Orange Zoning Code does not specify a maximum lot coverage within R- I and R-2 zones, and therefore lot covertge is a factor of the setback requirements of the underlying zone. .\)evelopment in the R-3 zone is limited to 45 percent lot coverage for two-sto~ structures, and 55 percent coverage for I I I Housing Element - three-story structures. Development in the R-4zone is permitted up to 60 percent lot coverage.Housing Element - 16 8/ Residential setback requirements are as follows: Setback R. uirements Location R-1 R-2 R-3 R-4 Front Yard 20 15 15 10 Side Yard 5 5 5 5 Rear Yard 10 (1 story)20 (2 storY) 15 10 IO The City's off-street parking requirements are generally two spaces per unit in R-l and R-2 zones, with only one space in the R-2 zone required to be enclosed. Off-street parking in R-3 and R-4 zones is based on the following number of bedrooms per unit: 1.5 spaces for one-bedroom units; 1.8 spaces for two-bedroom units; and 2.0 spaces for three-bedroom units. After 1989 these parking requirements were changed to 2 spaces for two-bedroom units; and 2.2 spaces for three-bedroom units.The City requires usable open space to be provided in all residential developments according to the following standards: 875-1,000 square feet per unit in R-l zones; 350 square feet per unit in R- 2 zones; 250 square feet per unit in R-3 zones; and ISO square feet per unit in R-4 zones.The City has already enacted an ordinance and supports the creation of accessory second units ("granny flats"), as discussed in the section on Summary of Past Accomplishments". Local building codes conform to accepted state standards, and are enforced through practices which are similar to those in surrounding cities. The City conducts sensitive enforcement of its building codes, providing property owners in violation of City codes with information on available rehabilitation programs and code enforcement grants of up to $5,000. The popularity and activity of constructing new residential units in Orange attests that the entire development process, including subdivision and development controls, is not overly cumbersome or costly compared to the region as a whole.Processing and Permit Procedures: The processing of building permits in Orange consists of two phases: preliminary review and permit issuance.Virtually every prospective developer or builder is referred initially to the Current Planning Division for a general evaluation of their proposal. A planner determines if the project will have a significant impact on services and the environment. If staff determines that the proposal will not result in any significant impact, the permit advances to the permit issuance stage. In those instances where a project will significantly impact the environment, the proponent is given the opportunity to affected departments in the preliminary stages in this review. As a result, final plans may be submitted and processed with minimum difficulties. The second stage of the permit process commences with a request for development permits by the proponent. Upon receipt of plans, each affected department is formally consulted and required revisions to the plans are made. After the necessary revisions have been made to the plans, the appropriate permits are issued. Review of development proposals takes three to 15 days, although the actual length of time depends upon the nature of the construction project. This period includes review of the plans by the various departments. In summary, the current method of processing building permits does not result in any adverse effects on the production of housing in the City of Orange. The comprehensive preliminary review ensures that the aims of developers are consistent with the City's long-term goals and objectives, Nevertheless, the possibility of implementing a fast-track review process procedure should be evaluated.Local Fees and Exactions: Orange currently assesses typical fees for zoning activities, subdivision processing, street lights, street trees, utilities hook-up,park development, inspections, and grading and building permits. The Community Development Department charges permit processing fees for various applications related to housing. For example, a fee is charged for the review and processing of a residential subdivision application. Once the final subdivision map is approved and a developer is ready to construct the project,assessments for parkland, street trees, utilities and the like must be paid.Current fees are indicated in Appendix A of the Housing Element Technical Report.Lastly, the Orange Municipal Code requires fireproof roofing materials in brush areas. This requirement will increase the cost for construction of new housing where these provisions apply.Fees and exactions do result in increased housing costs. The City conducted a study in 1988 to review all fees imposed for various municipal functions. The purpose of the study was to ensure that fees are legitimate and that the amounts charged reflect actual costs. The current fee structure is a result of that survey. Similarly, the City's dedication and improvements requirements is a device commonly used by cities to receive public improvements which directly benefit the future residents of a development. Finally, the requirement of fireproof roofing in brush areas is thought to be a reasonable response to the increased potential for widespread fire damage in those areas.Infrastructure: Sewage collection is the responsibility of the City; the Orange County Sanitation District is responsible for sewage treatment. The City provides water service to most areas of the City. Water in the newer sphere area will be provided by a cooperative agreement between the Irvine Ranch Water District and the City,Housing Element - 18 According to City engineers and public works officials, there are currently no significant infrastructure deficiencies (water, sewer, etc.), and it is anticipated that future growth in the eastern sphere area can be accommodated with extension of services. The cost for providing infrastructure will be paid using developer fees, The City's Public Works Director indicates that water supplies and facilities, as well as sewer capacities, are anticipated to be sufficient to service the growth anticipated in the East Orange area, including the 18,000 acre sphere of influence. The conclusions assume the type of development in the future will be similar to what has already occurred. Market Constraints Non-governmental factors which contribute to the difficulties a locality faces in meeting housing needs are examined in this section. Most of these factors are beyond the control of the City. Market constraints include such factors as the price of land, cost of construction, and financing.Cost of Land: A major consideration in evaluating the cost for developing new housing involves the cost of land. A number of variables impact the cost of residential land, including location, site preparation, density permitted,improvements required, etc. For purposes of this analysis, however, the City of Orange Real Property Division has provided the very general factor of 9,00 per square foot for residential land in Orange (1992). This translates into $392,040 per acre. During the past decade, the cost of improved land has consumed a larger share of total production costs with the proportion attributed to labor and materials declining.High land costs serve as a major constraint to development. A local real estate broker indicated that available multiple family lots in the older area of the City ranges from $100,000 for a duplex lot to $125,000 for a multiple family lot.While high land prices might serve to encourage higher density development,the rehabilitation and gentrification trends may also discourage conversions to higher density in the older core portion of the City. The availability of land in the older core area is very limited. However, when parcels do become available in larger sizes (minimum one acre size), prices range from $8.00 to 10.50 per square foot. Land in East Orange, which is owned by the Irvine Company, is selling for approximately $500,000 per acre, which includes the cost for infrastructure improvements,Construction Costs: The actual cost for construction is the most important factor in the cost for new housing. Construction costs, in turn, are affected by a number of factors including the cost for labor, building materials, and site preparation. To illustrate the high cost of new housing, the International Conference of Building Officials (ICBO) estimates that the cost of wood frame residential construction ranges from $41.00 to $57.50 per square foot or an average of $50.00 per square foot.Housing Element - 19 8/93 Mortgage Costs: According to 1he Central OIange County YWCA Dispute Resolution Center which provides fair Ilousing services for the city, there is no indication that 1ha-e are any mortgage deficient :areas in the City due to " red-lining." This has been wnflfDledwith 1he City's Economic Development Division of the Community Development Department, which deals extensively with local lenders who have knowledge of loans in lower income areas in the City.Mortgage rates applicable to the City of Orange are similar to those in surrounding areas. This would appear to confirm conclusions that financing of housing in the City of Orange is similar to housing costs elsewhere in central Orange County.Environmental Constraints A wide range of environmental factors may constrain the development of new housing in the City. Areas of special environmental significance, potential safety hazards and development constraints will influence land use policy. The Safety Element identifies areas of Orange subject to a number of environmental constraints, including those areas subject to flooding, landsliding and faulting.The Open Space and Conservation Element, in turn, identifies areas where significant ecological or natural resources are located. These constraints include both natural and man-made factors that will continue to influence long-range land use planning.Flooding: The Federal Emergency Management Agency (FEMA) publishes a series of maps which identify areas of the City subject to flnoding in the event of a major storm. These maps, referred to as Flood Insurance Rate Maps FIRMs) indicate areas that may be inundated in the event of a lOO- year or a 500-year storm, In addition, the maps indicate the base flood elevations at selected intervals of the floodway.The flood map contained in the Safety Element Technical Report (Figure S-3)indicates a potential for storm related flooding along the Santa Ana River,Santiago Creek and Handy Creek, Additional flood hazards include the potential for inundation from dam or levee failure.Housing TABLEH- 3 LAND AND CONSTRUCTION COSTS Type of Development Costs City of Orange Existing Homes $255, 000 Existing Condos $143, 000 New Home/Condo $246, 000 County of Orange Existing Homes $225, 000 Existing Condos $147, 000 New Home/Condo $258, 000 Average Building Cost $65-70 per square foot new construction):Cost figures are based on home prices from the Los Angeles Tll1Ies Sunday HHl4-92).Housing Element - 21 Three major flood control reservoirs are located on streams that run through Orange. The three facilities of concern include Prado Dam, Santiago Dam, and Villa Park Dam. Extensive flood damage could occur in the event of dam failure at any of these three facilities. Figure S-4 in the Safety Element Technical Report identifies those areas of the City that might experience flooding in the event of dam failure.Hillsides: Topography in portions of the planning area contain slopes that are too steep to easily accommodate development. The potential for slope failure will increase due to grading practices prior to construction and overwatering once developments have been completed. In addition, many landslides are caused by earthquakes.Geologic Hazards: The entire planning area is located within a seismic ally active region that has been subject to major earthquakes in the past. The San Andreas Fault, Whinier-Elsinore Fault, Newport-Inglewood Fault and San Jacinto Fault are active faults located within 30 miles of Orange. Other major faults may be buried under alluvium, or fault traces may have been obliterated due to natural weathering. Two of the most destructive earthquakes that occurred in California in recent years, the Coalinga and Whittier earthquakes,originated from previously unknown faults.A number of smaller fault traces are located in the northern and eastern portions of the Planning Area. The EI Modena Fault traverses the base of the Peralta Hills. The Peralta Hills Fault is located in the Peralta Hills just north of the EI Modena Fault, as shown on Figure S-2 in the Safety Element Technical Report.Wildland Fires: The greatest potential for wildfire is in the undeveloped areas located in the northern and eastern portion of the planning area. The risk to homes from wildfire will increase as development spreads into the chaparral covered hillside areas in eastern Orange.Noise: Noise generated from mobile sources such as traffic and aircraft will continue to have the greatest potential impact on land use. The Noise Element describes the existing noise environment using maps that indicate high levels of noise in the planning area, The Noise Element also identifies noise sources and recommends goals and policies that will be useful in reducing the effects of noise if not the actual intensity of noise. Land use policy discourages the placement of noise sensitive land uses in areas that are subject to high noise levels. Housing Element - Summary of Housing Opportunities Potential for residential growth in Orange may take place in various areas of the City, including vacant or underdeveloped residential land now in the City, vacant or underdeveloped residential land planned for annexation as part of the East Orange General Plan, surplus school properties, residential development within the Old Towne commercial area, Commercial Mixed Use Areas and the Depot Area. All of these potential areas are further described on the following pages. The evaluation will begin by reviewing new construction accomplishments since July 1989 and comparing them with RHNA. New Housinl! DevelODment since Julv of 1989: The following information is provided to document the level and affordability of residential development during this housing element cycle which extends from July 1989 through June 1994. The City's RHNA for the 89-94 element cycle is 3,857 units with 650 units for very low, 877 for low, 824 for moderate and 1,505 in the upper category. The following table compares actual new construction between July 1989 to December 1992 with these RHNA goals.Year Very Low Low Mnderate UDDer TOTALS 1989 (After June) 18 12 62 92 1990 380 105 316 801 1991 110' 6 18 82 216 19922()2 35 8 99 162 TOTALS 130 439 143 559 1, 271 The above figures are based upon actual reporting to the State Department of Finance. While the City has met only 37% of the total RHNA numbers, note that the City has met more than half of the very low income units and half for low income. The single family units were all placed in the upper income category, the town homes and attached single family in moderate and the apartments into the low category, Because of the lack of detailed information,it is possible that some of the units should be placed into a different category,such as some of the single family's might belong in the moderate category as maybe some of the apartments should be in the moderate category. Because the rental rates for Orange County for low income households range from $ 527 to $772 and these units are known to be in this price range the units were listed under the Low category. Because rents for very low income units are less than 533 (2 persons) $461 (1 person) these 330 units were placed in the very low category. It should be noted that because of recession and poor economy,1 Chapman University Student Housing (New Donnitory with monthly ratea oflcas than 300.00 per month.2 Shelter for Women with Children (See page 72 - Transitional Housin&) Housing Element - 23 8/ 93 development of new housing stock has dropped off drastically. Because of these factors, it's unlikely that the RHNA totaIscan be achieved. The City does have the land inventory to fulfill the future needs if the economy should turn around. To date, the following projects have been approved but not constructed: Serrano Heights: townhomes Inter- American:Santiago Creek: Southridge:Park Ridge: TOTAL 1,600 units (C.ondos - 1,000 MF and 600 SF 162 units (Townhomes) 240 unit~ (Multi Family - 91 Senior units)712 units (175 Single Family) (539 Condominium)325 units (Sim!1eFamilv)3, 132 units Had these units been constructed as was planned in the late 80's when the RHNA numbers were approved, the City would have more than fulfilled its regional housing need.During this 89-94 element period the City and the Redevelopment Agency have not only formed a non-profit housing (OHDC) corporation, but are also actively involved in providing affordable housing. Listed below are some of the 1992 projects.Proposed City/Agency Assisted Housing Projects 1.Project Name: Location:No. of Units & Type:No. of Affordable:2.Project Name: Location:No. of Units & Type:No, of Affordable:3.Project Name: Location:No. of Units & Type:No, of Affordable:4.Project Name: Location:No. of Units & Type:No. of Affordable:Walnut Court 151S 'E. Walnut 7 (3-Bedroom) - rental 3 for very low income Pixley Project NE Corner of Pixley & Almond 15 Senior Units - rental 7 units for very low income Citrus Village 500 N. Citrus 47 - rental 11 ( I-Bedroom) - rental (very low)II ( 2-Bedroom) - rental (very low)New RIO Project (Section 811)Pending 40 - rental All affordable and for handicapped Housing Element - 24 8/93 5.Project Name: Location: No. of affordable: Walnut I 4649 E. Walnut No. of units undetermined Agency is developing an RFP to request a developer to construct single family and possibly purchase adjacent property of one plus acre. Proposed detached units for purchase at under 120% of median. Vacant Land Inventorv Existing City Limits: The City's older residential neighborhoods lie in an area bounded generally by the Costa Mesa Freeway on the east, Garden Grove Freeway on the south, Santa Ana River on the west, and City of Anaheim on the north. This area also includes the historic core - several blocks surrounding ChapmanlGlassell Plaza - which contains several commercial and residential buildings constructed around the turn of the century.East of the Costa Mesa Freeway, development consists primarily of single-family residential and strip commercial development constructed in the 19608 and 19708, Newer single family residential (built in the past ten years)characterizes the area built to the east of the ridgeline known as Santiago Hills.Within the city limits of Orange, there are approximately 1,122 acres remaining vacant that could support an additional 5,957 dwelling units and 17,274 residents (see Table H-4). Based on existing infrastructure limitations,combined with the presence of significant unit overcrowding, the General Plan generally assumes average densities at the middle of the density range. The City' s policy will be to focus its highest density housing in the east Orange area, which will have the infrastructure capacity to serve such development.However, sites within the current city limits that do have adequate facilities and services will be encouraged to develop to capacity, particularly where affordable housing is to be developed.Housing Element - 25 8/93 TABLEH- 4 CITY OF ORANGE - VACANT RESIDENTIAL LAND INVENTORY MARCH 1993 Buildout Caoacitv Land Use Designation Density Vacant Units] Population4 DUlac! Acres2 EstateS 1-2 359 539 1. 563 Low 2-6 553 2. 212 6414 Low-Medium 6-15 172 2408 6.983 Medium 15- 24 38 798 2.314 TOTAL 1122 5.957 17274 Avel1lged densities are Estate = 1.S DUlac; Low Density = 4.0 DUlac;Low-Medium = 14.0 DUlac; and Medium Density = 21.0 DUlac.Based on Orange GeneralPlan Land Use Element (August t989). 2 Vacan! acres times averaged densities.4 Based on 2. 90 persons pr unit ( 1990 Census),5 Includes rural units. East Orange: In 1989, a general plan amendment for approximately 7,100 acres east of the City was approved and is now referred to as East Orange General Plan. The general plan amendment prepared for this area is summarized in Table H-5. East Orange is a master-planned community with employment centers, clustered residential development, community commercial centers, and various public facilities, including new freeways (Eastern Transportation Corridor). This area will eventually support an additional 12,350 units and 35,815 residents. While overall housing density categories are comparable to those in central Orange, infrastructure capacities in east Orange can more easily support housing at the upper end of the density range.The Medium Density and Mixed Use categories provide capacity for 4,346 dwelling units at densities ranging from 15 to 24 units per acre.The East Orange General Plan is within the City's Sphere of Influence, and is owned in entirety by the Irvine Company. The City and Irvine Company have entered into an Annexation Agreement for the East Orange area, which commits to annexation of the 7,100 acre area within ten years of the adoption of the General Plan (by December 1999). Annexation will occur in a series of four phases, with the specific plan for Planning Area 1 currently underway and annexation anticipated by mid-nineties. This Planning Area will include approximately 3,500 dwelling units, approximately 60 percent (2, 100 units) of which will be within the Medium Density and Mixed Use categories, providing for densities up to 24 units/acre and higher utilizing density bonus provisions.The City is also formulating an Affordable Housing Plan and Ordinance which will provide incentives to encourage the development of new units for very low, low and moderate income households.Housing Element - 27 TABLEH- S EAST ORANGE - VACANT RESIDENTIAL LAND INVENTORY Buildout Canacitv Land Use Designation Density Vacant Units2 Population3 DUlac! Acres2 Estate 1-2 764 300 870 Low 2-6 1218 4293 12450 Low-Medium 6- 15 458 3411 9892 Medium 15-24 176 3468 10057 Mixed Use 15-24 249 878 2546 TOTAL 2865 1235035815 Averaged densities are Estate = 0.4 DUlac; Low DensitY = DUlac;Low-Medium = 7.4 DUlac; and Medium Density = 19.7 DUlac.2 Based on East Orange General Plan (December 1989). Buildout planned for more than 20 years.3 Based on 2,90 persons per unit (1990 Underdeveloped Prooerties Past zoning and general plan designations have assigned higher densities to some of the older, developed core area in Orange which supports single- family homes, These lots have the potential to be redeveloped at multiple-family densities. However, relatively few building permits have been issued for those lots containing older single family structures. In addition, there have been few residential demolitions in recent years due to the trend towards gentrification of some of the older neighborhoods, with younger families purchasing older dwellings and restoring them. Intensification has occurred through the development of second units on single-family lots, frequently above a detached garage. The City has adopted an ordinance to facilitate the creation of second units as a means of providing affordable rental housing.The City is presently considering zoning and general plan changes in older neighborhoods that would encourage greater preservation of existing housing stock while allowing for a moderate amount of additional residential development. Other underdeveloped parcels continue to exist Citywide,providing opportunities for redevelopment and recycling to higher densities. A net increase in 7,665 units could be achieved through unit recycling. SurDlus School Prooerties Presently there are two separate school sites which could possibly be converted to uses other than schools in the near future. The Walnut School site is ten 10) acres and could possibly be available for conversion to either single-family uses, or single family uses with some multiple family uses,Another site is the vacant educational center located at 370 N. Glassell.Presently this site is vacant and could possibly be available for conversion to either commercial, multiple family or a combination of both uses.Residential DeveloDment in Old Towne Commercial Area The Old Towne commercial core area centers around the City's Plaza and extends east and west along Chapman Avenue and north and south along Glassell Street. General Plan policy for the " Commercial - Old Towne"designation permits residential uses in conjunction with commercial husinesses upper story apartments, artists lofts) or as free- standing uses. The permitted density range is six to 24 units per acre. This Old Town Commercial designation should not be mistaken for the "Commercial mixed Use areas" as shown on the City's General Plan. The level of future residential development in this area of Old Towne cannot be accurately predicted, but the City plans to encourage such mixed use development. Additional units in this area are included in the buildout calculations addressing recycling of developed areas in Orange, as outlined in Table H- 6.Housing Commercial Mixed Use Areas Two shopping centers which are zoned Commercial with tremendous development possibilities for low and moderate income housing are the "Town and Country" and "The City" Shopping Centers. The City's zoning code allows residential development in conjunction with commercial development subject to a conditional use permit. The "Town and Country" is presently developed with single story retail stores, offices and at grade parking which tends to convey underutilization of these parcels. This 15 acre site has public transportation, shopping facilities, educational facilities and would lend itself to more intense development with possibly mid-rise and parking structures. The area surrounding is developed with mid and high rise structures, with a variety of adjacent land uses: office towers, hospitals, medical offices, commercial retail, education facilities and other residential (multi family) communities.Immediate access is available to both the SR 22 Freeway and 1- 5 Freeway.The Orange County Fixed Guideway is proposing a nearby station area while local buses run frequently on Main Street, the major arterial that fronts the Town and Country."The City" Shopping Center complex is presently developed with single story retail stores (mall), at grade parking, several high- rise office buildings,restaurants, movie theaters, and several hotels. This site is approximately 60 acres with development potential because of the under utilized mall with at grade parking (similar situation as Town and Country). The complex is surrounded by the UCI MedicJII Center, Medical offices, Library Administrative Offices, Orange County Family and Iuvenile Courts and other county facilities. There are also existing multiple family neighborhoods in the area. Immediate access is available to the SR 22 Freeway and nearby 1-5 Freeway. The Orange County Fixed Guideway is proposing a nearby station area while local transit buses run frequently on nearby Chapman and City Drive which are major arterials. This site would lend itself to mid rise or high rise structures for low and moderate income, multiple family development. No density caps have been imposed on these two shopping center complexes.Both of these areas are located within the Redevelopment Project areas for the city and the Agency could offer financial assistance or buy units in order to make them affordable to very low, low and moderate income families. These areas are looked at as a long term project over three (3) to eight (8) years in the future. Presently the Agency staff is working with the owners in preparing their long term plans for these two commercial areas.In Table H-6 110 acres of Commercial Mixed Use have been shown which could provide a minimum of 400 units.Deoot Area The City is in the process of adopting a specific plan for a 42.8 gross acre area of land surrounding the Santa Fe depot. This plan is known as the Santa Fe Housing Depot Area Specific Plan (SFSP) and is located four blocks west of the downtown Orange Historic Plaza Area. One of the factors for creating this plan is that the Southern California Regional Rail Authority (SCRRA) is including Orange as a commuter rail stop at the Santa Fe Depot site. Adjacent to the depot is a 10 acre site which presently exists as a manufacturing area. This area has been identified as a site where some senior and low/moderate income housing could be constructed along with conventional housing. The housing product is envisioned as two (2) stories over semi- subterranean parking which would have a community orientation to the surrounding Old Towne area. The type of housing is anticipated to be condominiums,townhouse and stacked flats, rental apartments and senior units. According to the specific plan, this is a long term project to be developed over the next 3 to 9 years. However, the commuter rail station will commence operation in December of 1993. This area is part of a Redevelopment Agency project and the Agency could either buy down the land costs with set-aside funds and/or purchase units in order to provide affordable units. It is projected that 250 units could be accommodated on this proposed site. The SFSP sets out design guidelines and development standards for this area. (These units are reflected in Table H-6.)Housing Element - 31 TABLEH- 6 RESIDENTIAL HOLDING CAPACITY OF ORANGE CityWide Railroad Depot Area Land Use! DUlac Acres Units Acres Units RurallEstate 0-2 1108 1162 Low 2-6 6861 27.562 Low-Medium 6-15 1.264 9510 Medium 15-24 737 10 732 IO 25() 2 Unlimited Mixed Use 110 400 TOTAL 10 080 49366 10 250 Ponulation3 143451 725 3 Based on 2, 9 persons per unit ( 1990 Census). Summary of Housing Needs A primary goal of the City is to ensure that all social and economic segments of the community have adequate housing to meet existing and future needs. To implement this goal and the related policies, the City of Orange has targeted its housing and assistance programs to those households with the greatest need. This section of the Housing Element is specifically concerned with identifying the number of households that meet Federal and State criteria for special consideration when discussing specialized needs. The five major "needs" categories considered in this Element include: Housing needs which result from in~ed population growth in the Planning Area and in the surrounding region; Housing needs resulting from the deterioration of existing housing units; Housing needs that result when households pay more than they can afford for housing; , Housing needs resulting from the presence of "special needs" groups such as very large families or female-headed households; and i Housing needs for those without any shqlter or those households requiring temporary shelter.Some households may be included in one or more of these categories since each category is not mutually exclusive. For:example, a low income household may also be a single parent household residilig in a substandard unit.Housinl! Needs Due to PODulation Growth The land use policy contained in the Land Use Element indicates the location,extent, and density of future development in the planning area, including residential development.In the past, population growth in the City has resulted primarily from annexations. Between the years 1950 and 1980, the City's boundaries expanded in area from 8.8 to 23 square miles, and add 12,350 dwelling units to the City's housing stock. With the annelWltion of East Orange, the City will grow by over 28 square miles. The majori~ of future residential development will occur in the East Orange area. ; I Existing City Limits: An estimated 37 ,14~ dwelling units existed in the City as of 1988. A total of 80,030 total units, or an additional 42,888 units, could be constructed within the City if the land \fse policy, as outlined in the Land Use Element, were fully implemented (100 ;percent build-ilut). However, 100 percent build-ilut is an unrealistic assumption since existing development typically occurs at densities less than the ~imum permitted density. For example, single family subdivisions on I~ds zones R- I-IO typically have a density of three or four units per acre, I~ than the maximum six units per acre permitted within the Low Density Resi1ential land use category.Housing Table H-6 outlines more realistic assumptions for build~ut, As the table indicates, a total of 49,466 units could be provided which represents an increase of 12,324 units over existing units, If the average household size remains constant at 2.90 (1990 Census), the population could be expected to reach 179,266 upon build~ ut.Residential Potential Versus Rel!ional Needs: The 1988 SCAG preliminary growth projections for Orange indicate that between now and the year 2010,the City's population may increase to between 119,120 and 134,090. This population will demand 44,079 to 50,660 total housing units. It should be noted that City of Orange projections apply only to the existing City limits and do not include unincorporated areas contained within the General Plan planning area. The 62,701 total housing units (fable H-7) projected to be provided in Orange will be able to accommodate growth demands predicted by SCAG.The State has established the following residential density criteria for providing unit affordability:Minimum 25 units per acre = very low income Minimum 18 units per acre = low income Minimum 8 units per acre = moderate income As a means of facilitating the creation of very low income housing, the City will consider the adoption of:I. An Affordable Housing Plan 2. An Affordable Housing Ordinance 3. A revised Zoning Ordinance which would include density bonus, SRO, 2nd unit criteria and support the Orange Housing Development Corporation in the development of low income housing.Housing Element - 34 8/ TABLEH- 7 AVAILABLE LAND VERSUS HOUSING GOALS Residential Growth Potential1 RHNA Goals Income Min. 1989-94 Land Use DUlac Units Category DUlac Goal Estate 0-2 539 Low2-6 2212 Hil! h <8 1.505 Low-Medium 6.,lS 2.408 Moderate 8+ 824 Medium 15-24 2408 Low 18+ 877 Mixed Use unlimited 400 Verv Low 25+ 650 TOTAL 7967 3856 Housinl! Affordabilitv State and Federal standards for housing overpayment are based on an income-to-housing ratio of 30 percent of median income. Households paying greater than 30 percent of gross income toward rent or a mortgage will have less income remaining for other necessities such as food, clothing and health care.In establishing this standard, governments recognize that upper income households are generally capable of paying a larger portion of their incomes for housing; therefore, estimates of overpayment generally focus on lower income groups.The 1988 RHNA prepared by SCAG identifies the number of lower income households overpaying for housing. Of the City's total 14,262 lower income households, 6,017, or 42 percent, are identified as overpayers. Of these 6,016 households, 1,313 are owners and 4, 704 are renters. Table H-8 provides a breakdown of the distribution of these totals among the very low and low income groups.Projected units based on available vacant land in City limits as slated in 1989 General TABLEH- 8 HOUSING OVERPAYMENT BY INCOME GROUP AND TENURE Owners Renters Very Low 817 2, 676 Low 495 2, 029 Total 1,312 4, 705 The distinction between renters and owners is important because homeowners may choose to overextend themselves financially to purchase a home, retaining the option to sell if necessary. Renters, on the other hand, are limited to the rental market.In order to meet the demand for affordable rental housing, the City plans to make wide use of Section 8 and Section 202 programs. To assist first-time home buyers with the expensive prospect of purchasing a new home, the City will use redevelopment set-aside moneys and revenue mortgage bonds to c0-finance down payments for income-qualifying households.Suecial Housim! Needs Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. These special needs households, as defined in the State housing element law, are "the handicapped,elderly, large households, families with female heads of households,farmworkers, and families and persons in need of emergency shelter"Government Code Sec. 65583). Table H- 9 summarizes the housing needs identified in the following sections.Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependence needs. The 1990 Census shows that 9,631 seniors (65 years and older) reside in the City of Orange. Other census statistics indicate that 15.5 percent of the City's households are headed by an elderly person, representing a total of 5,701 households in 1990; approximately 70 percent of the City's elderly households are owner-occupants. Between 1980 and 1990, the elderly population in Orange increased by approximately 34 percent, and there is every indication that the need for housing for the elderly will continue to increase in the future. Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly, who are usually dependent on fixed incomes, The City's Comprehensive Housing Affordability Study (CHAS) identifies 761 of the City's elderly households as lower income and in need of rental assistance, and indicates a two-year wait for elderly persons applying for assistance from the Orange County Housing Authority Section 8 Rental Assistance program. The CHAS has established a goal to provide rental assistance to 190 lower income elderly households during the fiscal year of 1991-1992, In addition, the City of Orange has six housing projects that are targeted toward accommodating the City's lower- income elderly residents-Community Garden Tower (210 units) Garden Tower West (122 units),Triangle Terrace (75 units), Orchard Gardens (16 units), Fern Garden (10 units) and Palmyra Apartments (10 units).Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as potentially limit the ability to earn adequate income. The 1990 Census indicates approximately six percent of Orange's population has some form of work or transportation disability. Elderly individuals with transportation disabilities comprise an estimated 43 percent of the City's handicapped. The City's CHAS indicates that there is a two-year wait for disabled persons applying for assistance from the Orange County Housing Authority Section 8 Rental Assistance Program. Special housing needs of handicapped individuals include accessibility for wheelchairs, railings,ramps, and special construction for interior living spaces, In order to accommodate these special housing needs, Casa's Del Rio is an existing 40 unit apartment complex which was constructed under the Section 202 program for handicapped individuals.Large Families: Large families are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the overcrowding of smaller dwelling units and in turn accelerating unit deterioration. According to the 1990 Census, more than 14 percent (5,305) of the City's households are large families comprised of five or more members.The 1990 Census also indicates that 9.6 percent of the City's households are living in overcrowded conditions (defined as greater than 1.01 persons per room), reflective of households doubling up to reduce costs or large families unable to afford units of adequate size.According to the CHAS, 16 percent of households currently receiving rental assistance are large families. Furthermore, the City' s CHAS indicates that there are 483 large families in Orange that are lower income and in need of rental assistance,Female Heads of Household: Female-headed households tend to have low incomes, thus limiting housing availability for this group. The 1990 Census indicates that the City has 3,998 female-headed families, accounting for 11 percent of all households in the City. An estimated 57 percent of these female-headed families have dependent children under 18 years of age, Thus, providing housing opportunities for female-headed families relates both to housing affordability and services for the care of children.Farmworkers: Farmworkers are defined as persons making their living through seasonal agricultural work and who move with the seasons to different farming areas or communities. The special housing needs of many farmworkers arise from their low wages and insecure nature of their employment. The 1990 Census indicated that less than one percent (891) of the City's residents are employed in the agriculture, forestry, fisheries and mining industries. Therefore, special housing needs associated with farmworkers in Orange are not as significant as other special needs groups.Housing needs for farmworkers can generally be addressed by overall programs for housing affordability.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 deinstitutionaIization of the mentally ill.The 1990 Census indicates that there were 159 individuals in homeless emergency shelters and another II homeless people visible in street locations in Orange on the date the census was taken. As part of the City's CHAS,homeless and social service providers were contacted and on-site observation at shelters and 78 people were observed at Hart Park.There are relatively few facilities in the City of Orange which are geared toward serving the homeless population, They include: the EI Modena Community Center, a 6-unit transitional housing facility to assist homeless families,Women's Transitional Living Center, (70 beds) Martha House (single women only), and Casa Teresa Home for Single Mothers. ( Recently construction began for a new shelter which will hold 20 women with children called House of Hope.) Other homeless shelters in the region include the YWCA Hotel for Women in Santa Ana" the Thomas House, the Interval House, Copes and Sheepfold.Housing Element - 38 TABLEH- 9 SPECIAL HOUSING NEEDS SUMMARY Number of Percent of Total Special Needs Group HouseboldslPersons HouseboldslPersons 5,701 15. 5 Elderlv Households 2,3576. 4 Handicanned Persons 5,30514. 4 Larl!e Familv Households 3,998 10. 9 Female- Headed Family,Households with Children 891 0. 8 Farmworkers 170 0. 2 Homeless TOTAL 18422 48.2 Sources: 1990 U. S. Census Housing Element - 39 8/ Summary of Past Housing Accomplishments State Housing Element law requires communities to assess the achievements under adopted housing programs as part of the five year update to their housing elements. These results should be quantified where possible (e,g. rehabilitation results), but may be qualitative where necessary (e.g. mitigation of governmental constraints), The following sections summarize the City's past housing success by comparing the goals and housing programs identified in the 1984 Housing Element to the amount of housing or assistance actually provided. Each of these goals has been implemented to various degrees through a series of specific housing programs. The continued appropriateness of each goal for the updated Housing Element will be evaluated, as well as any applicable tailoring of housing programs. The 1984 Orange Housing Element contained eight overall housing goals for the City. The following sections summarize each goal and assess the City's success in achieving each goal by describing the programs implemented by the City. In the previous element the housing programs, in some cases, had different names or were placed under different titles. The Revenue mortgage Bond program is now listed as the First Time Homebuyer Program. See Programs 8 and 16. The Land Acquisition and Write Down Program: This program was used in two (2) Senior projects known as the Palmyra and Orchid Gardens. These two projects produced rental rates for 31 affordable units for 30 years through the land write down program. The program is continuing to be used into the 89- 94 element period as shown in Program #15. Goal 1: Assure that the quality, safety, and livability of the housing stock in the City of Orange is continuously maintained and/or upgraded. Assistance for the City of Orange Home Improvement Programs is allocated from Federal Community Development Block Grant funding and Orange Redevelopment Agency 20% Housing Set-Aside funds, Residents must have owned their home for at least one year and meet the income guidelines.Applicants needing to bring their homes into compliance with City code are given first priority. Senior citizens are encouraged to apply.6% Low Interest Loan Program (LIL): The City has contracted with a major lender to provide home improvement loans at a 6% per annum interest rate.The lender qualifies applicants, and the City subsidizes the interest rate in a buy-down from the lender's current market rate. The maximum loan amount is 35,000 and payments are made to the lender for a maximum term of 15 years.Housing Element - 40 8/ Previous element goal: 5 units per year Actual number of households assisted: Ym 1984 - 9 1985 - 15 1986 - 1 1987 - 2 1988 --- 2 32 units assisted which exceeded the goal of 25.Deferred Payment Loan Program ( DPL): The Deferred Payment Loan Program provides assistance to applicants who do not qualify through the participating lender for the Low Interest Loan Program described above.Deferred Payment Loans are extended subject to a credit review provided there is sufficient equity in the property.A Deferred Payment Loan is a direct loan made by the City and secured by a Deed of Trust against the property. The loan becomes due upon sale,refinancing or transfer of the property at 2 % per annum or at the close of the IS-year term, whichever comes first. The maximum loan amount is S25,ooo.Repayment may be extended for an additional five years if the borrower continues to qualify as low income. The City cannot subordinate Deferred Payment Loans.Previous element goal: 10 units per year Actual number of households assisted:Ym 1984 - 11 1985 - 17 1986 - 8 1987 - 3 1988 -. ll 52 units assisted which exceeded the goalof 50.Homeowner Participation Program (HOPP): The Homeowner Participation Program ( BOPP Rebate) provides assistance for minor improvement projects for single-family homeowners and mobilehome households. Property owners receive a percentage rebate of the total project costs. That percentage rebate is based on income. Households in Level I may receive a maximum of S2,000,with 50% of the project costs contributed by the participant. Level 2 households may receive a maximum of SI, ooo, with 75% of the project costs contributed by participant. Applicants may apply for rebates for several improvement projects until the maximum assistance amount is reached.Housing Element - 41 8/93 Previous element goal: 4 units per year Actual number of households assisted: Ym 1984 - 10 1985 - 53 1986 - 30 1987 - 17 1988 -.. ll 123 units assisted which exceeded the goal of 20.Code Enforcement Grant Program: The Code Enforcement Grant Program assists those homeowners cited for code violations who do not have the income to repair the deficiencies. Homeowners are assisted with a grant to bring property into compliance with City code requirements. The maximum grant is 5,000 and there is no repayment required providing homeowners do nnt exceed Level 3 income guidelines. No goal was stated because of the nature of the program. According to city records, ten (10) units were assisted in conjunction with other loan programs such as the DPL program. However, because of the limitation of the grant amount, ($5,000.00) these moneys are usually granted in addition to a low interest loan.Housing Accessibility Grant Program (HAP): The Housing Accessibility Program (BAP Grant) assists disabled and elderly residents in making their home environments more accessible. The Program can be used to improve access to the residence or provide modifications inside the home. The maximum grant is $1,500 and no repayment is required.Previous element goal: This program was not previously identified separately in the Housing Element although it existed.Actual number of households assisted: Ym 1984 - I 1985 - 4 1986 - 0 1987 - 0 1988 -.1 8 units assisted.Rental Rehabilitation Program: From 1984 to1989 the City invested almost 160,000 on 16 units as part of its Rental Rehabilitation Program. The City has continued to invest an average of $30,000 annually in this program,assisting 1-3 units each year. The City has also published a brochure describing the requirements of each rehabilitation program available to residents. The previous element stated 10 units per year has not been met because the program was found to be expensive and not effective. (Program Housing Element - 42 8/93 has now been discontinued.). HUD has discontinued, The City will pursue HOME funds which can be used to implement a modified version of the program. Mobilehome Park Rental Assistance Program: The City assists very low income mobile home park residents by providing a monthly subsidy payment between the households monthly housing costs and 30 percent of the household's income. The City presently has $200,000 in this program and assists at least 50 residents per year. The City has far exceeded its goals of 25 units per year. Future Use: HAP, DPL, HOPP, code enforcement, mobile home assistance, and homeowner rebates remain. appropriate programs for the Orange Housing Element to help preserve and upgrade existing residential neighborhoods. 20% set aside funds will be used to rehabilitate apartments when owner requests and guarantees affordability for 20 or 30 years. Goal 2: To maintain, preserve, and upgrade the quality of existing residential neighborhoods. Section Eight Rental AssistaneeIVouchers: The City of Orange contracts with the County of Orange Housing Authority (OCHA) to administer the Federally Funded Rental Assistance programs. According to information from the Orange County Housing Authority, a total of 539 families (as of August 1992) have been receiving rental housing assistance payments. Almost all (480 or 89 percent) of these were very low income families with 13 (2.4 percent) being low income families. Section 8/202 (New Construction: Since 1985, approximately 600 Section 8 units have been available in Orange, an average of 150 per year. An average of 70 to 80 Section 202 units existed per year in Orange during this same time period. The City has facilitated construction of about 230 new Section 8 and Section 202 dwelling units since 1979. Additionally, a lo-unit market rate project was completed in 1988 with City assistance. For this project, the City acquired the property and provided it to a developer at a reduced price.Section 236: Casa Ramon is an apartment project which has 75 assisted units of which 8 have 3 bedrooms, 41 have 2 bedrooms and the remainder are one bedroom,Rehabilitation Programs: In recognition of the need to preserve the City' s existing housing stock, the City has provided grants and loans to income-qualifying households for home improvement projects. Between 1985 and 1989, 215 owner-occupied units were assisted (not including mobile homes).The mobile home and rental rehabilitation programs were described under Goal 1.Housing Element - 43 8/ Gramti Removal: In 19&91he City set up a 24 hour telephone hotline for the public to report incidents of graffiti. The budget for the removal has been constant at approxirnateIy .$35,000 for salaries and between $5 to $10,000 for supplies. As of 1992 the Community Services Department is initiating a comprehensive program which will establish goals, Objectives and policies for the removal of graffiti. This plan willllOt. only address the reactive program for the clean up of graffiti, but will set up proactive programs which will involve the entire community and provide public awareness. 'The program will also address fund raisers and ways of involving the community with graffiti removal events. In the past year, staff has been monitoring the removal program by plotting the geographical location on maps along with the frequency of service required. This information will be utilized in the proposed comprehensive program. Future Use: Housing Rehabilitation Programs, Federal Programs and graffiti removal remain appropriate programs for the Orange Housing Element to help preserve and upgrade existing residential neighborhoods. Goal 3: To encourage and promote development of affordable housing in order to meet the needs of all residents of the City of Orange, particularly within the various income ranges. First Time Homebuyer Program: The City offers deferred interest loans for first time homebuyers. Starting in 1989, the City provided 11 loans for 165,000 (principal only). The City has continued this program, providing an additional $990,000 to 53 buyers through FY 1991- 92.Accessory Second Units (formerly known as "Granny Fiat"): In 1984, the State adopted mandates for Granny Flats, However, the City did not adopt zoning requirements for accessory second units until 1989. The zoning code allows for these second units to have kitchens subject to a conditional use permit which regulates the size of the unit along with setbacks and parking standards. Since 1984 seven units have been approved and constructed.Orange Housing Development Corporation (OHDC): OHDC is a recently formed non-profit housing developer based in the City of Orange. Start-up costs to establish OHDC were funded through the City' s Housing Set-Aside funds. OHDC is currently working with the Orange Redevelopment Agency on the development of two low-income rental housing projects - a seven-unit family housing project and a 15-unit senior housing complex on parcels which the Redevelopment Agency owns or will acquire. Ownership of the parcels will be transferred to OHDC. Target tenants for both projects are households earning less than 45 percent of the County median income. Home Sharing Program: The Home Sharing Program continues to be a successful-on-going housing program which is operated from the City' s Senior Centers. The program is administered by 2 part-time employees which are funded by the Senior Training for Employment Program (STEP). Records show that on an average 25 applications are accepted each month with an average of 13 matches made each month. Those numbers average to 300 applications are made to the program each year with 156 matches accomplished.Goal 4: To accommodate residents of the City with special, unique housing needs.Handicapped Rental Assistance: The Rehabilitation Institute of Southern California (RIQ) currently owns and manages Casas del RIO, a 40 unit Section 811 project which was constructed with the financial assistance of the City.Plans call for the construction of 40 additional units for the handicapped adjacent to the existing Casa del RIO project which will be named Casitas del RIO.RIO applied for section 811 funding during the past round. On September 30,1992 they were given verbal notification that their project will be awarded funding. Agency staff is interested in providing additional financial assistance for the proposed project. Housing Set-Aside funds will be provided in the form of a land write-down for the project, provided that other necessary funding sources are in place,Housing Accessibility Program (HAP): This grant helps the disabled and elderly make their residences more accessible, with construction of wheelchair ramps installation of grab bars and widening of doorways as an example.Senior Housing: The 1984 Housing Element indicated that a total of 115 units over a 5-year period were needed to meet senior housing needs. Within Orange, approximately 553 units in six projects were available for seniors with low and very low incomes, as shown in Table H-I0. The City also contains hundreds of older apartments and mobile homes, which have historically been available to seniors at affordable rents.Future Use: Handicapped housing assistance and new senior housing provided by the OHDC remain appropriate programs for the Orange Housing Element to help provide affordable housing for segments of the population with special TableH- IO Assisted Senior Housing Projects Proiect Address # of Units Community Garden Towers 3919 Garden Grove Blvd, 209 Garden Tower West 4001 Garden Grove Blvd. 122 Trianl!le Terrace 555 S. Shaffer 75 Fern Gardens 160 N. ProsDect 10 Orchid Gardens 1051 N. Glassell 16 The Palmvra 301 S. Glassell 15 GoalS: Assure continuation of community awareness for preservation of historically significant residential structures.Goal 6: Encourage appreciation and preservation of the City's heritage in the form of those structures identified in the City's historic preservation element as historically significant.The City has several active civic organizations that deal with historic preservation which concentrate their efforts in preserving locally significant historical structures, either by rehabilitating them in place or by relocating them to suitable sites. Most recently, the City's Redevelopment Agency has been instrumental in relocating a Queen Anne house in the Downtown area to a site in the nearby City of Tustin. The City's efforts in this regard have been and will continue to be ongoing, on an as needed basis.Future Use: Restoration and/or relocation remain appropriate programs for the Orange Housing Element to preserve locally historic structures.Goa17: To assure Fair Housing opportunities for all residents of Orange.The City has worked for many years with the YWCA Dispute Resolution Center which provides information and support to individuals on renterlhomeowner options and programs to assure that housing is available to all segments of the population, including minorities and disadvantaged groups.During 1991-92 the Dispute Resolution Center received 626 complaints from Orange tenants and landlords. Twenty-four of the complaints were based upon discriminatory practices. The breakdown by category was: 8-families with children; I-source of income; 4- national origin; 9-ethnicity; and 2-other. The cost of this service was $38, 000 for Future Use: Participation with the Orange YWCA Dispute Resolution Center remains an appropriate method for the Orange Housing Element to help assure fair housing is provided in Orange. Goal 8: Assure increased energy efficiency through use of energy conservation measures in homes. As part of the City's programs, the Building Division monitors energy conservation improvements to rental and owned units through the issuance of building permits. In addition, the City provides information to local residents on energy conservation programs which are available from the Southern California Edison Company and the Southern California Gas Company. These utility companies periodically provide brochures on their energy conservation programs along with billing materials. Future Use: Energy rehabilitation and rehates remain appropriate programs for the Orange Housing Element to increase energy self- sufficiency.Housing Element - 47 8/93 Assisted Housing at Risk of Conversion State law requires the City to identify, analyze and propose programs to preserve housing units that are currently restricted to low-income housing use and that will become unrestricted and possibly be lost as low- income housing.This section identifies those units in the City of Orange, analyzes their potential to convert to non-low income housing uses and analyzes the costs to preserve and/or replace those units. Goals, policies and programs to preserve these units are presented later in this Housing Element.Consistent with State requirements, the following are included within the Element:An inventory of restricted low-income housing projects in the City and their potential for conversion;An analysis of the costs of preserving and/or replacing the units "at-risk"and a comparison of these costs;An analysis of the organizational and financial resources available for preserving and/or replacing the units "at-risk"; and Quantified objectives for the number of "at-risk" units to be preserved;Programs for preserving the " at-risk" units.Inventorv of A~sisted Housinr This section identifies all of the low-income housing units in the City of Orange that are at risk of converting to market rate housing uses between July 1,1989, and July 1, 1999. This inventory includes all multi-family rental units assisted under federal, state, and/or local programs, including HUD programs,state and local bond programs, redevelopment programs, and local in- lieu fees,inclusionary, density bonus, or direct assistance programs. The inventory covers all units that are eligible to change to non-low income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. The inventory was compiled by interviews with City staff, the Orange County Housing Authority, HUD, and review of "Inventory of Federally Subsidized Low-Income Rental Units at Risk of Conversion"California Housing Partnership Corporation), and " The Use of Housing Revenue Bond Proceeds - 1990", (California Debt Advisory Commission).Table H-Il shows the name, location type of government-assistance, type of affordability controls, and other pertinent information of all government-assisted projects within the City of Orange. The City has four publicly assisted housing projects - Casa Ramon, Friendly Center, Community Garden Tower,and Garden Tower West. Only Casa Ramon is at risk of converting to market rate housing between The Friendly Center owns and manages eight units for senior and disabled residents. The project was subsidized under the HUD Section 221(0)(3) market rate program. The Community Garden Tower is a 21o-unit project developed under the HUD Section236(1)(1) program. All units in this project are one-bedroom units, Garden Tower West is a senior housing project with 122 one-bedroom units. Financing for Garden Tower West was provided through the HUD Section 202 program. Because these three projects are owned by non -profit organizations, affordability controls are fairly secure.All of these federally subsidized projects also maintain Section 8 contracts with HUD. The initial rental subsidy contracts for Friendly Center and Community Garden Tower have already expired, and were renewed for another five years.The Section 8 contract for garden Tower West will not expire until the year 2002. As long as these projects remain as low-income housing pursuant to the regulations on non-profit ownership of federally subsidized projects, the Section 8 contracts on these projects are likely to be renewed.Palmyra Apartments is a 5Q-unit senior housing project financed under the City's Redevelopment Agency Multi-Family Revenue Bond program. Under this program, the Redevelopment Agency provides preferential financing in exchange for twenty-year low- income use restrictions on 20 percent of the units in the project. Use restrictions on these low-income units will not expire until the year 2007.Description of At-Risk Project: Casa Ramon is the only assisted rental housing project in the City of Orange that is at risk of converting to market rate prior to July 1, 1999. CasaRamon is a 75-unit project subsidized under HUD's Section 236(1)(1) program which offers the project owner a reduced interest mortgage loan. In return for preferential financing, the project is subject to low-income use restrictions with the option to prepay the loan 20 years later and opt out of the affordability controls. Casa Ramon consists of 26 one-bedroom, 41 two-bedroom, and 8 three-bedroom units. The project was built in 1974 and earliest si iii! " z 0 i oot j!!I I ilS,! e b~il" It/ j''" e IIlfoo 1.... tio:j' l5. j l'I!'~ j c:l g ii: l I.l 0...t~!E"8t::< l51if!Sli ti G.!t:: l~< e = t tI... 8 t' s rl! i~ oo 8: i';.. 1 II gj, ll"''' 9 E ls Q~ t z S i IS 0 II: gj>- a3~~ N 0. I U I0e lo t's u s rl! J; .. .. g1i-S sl.i IIlQ I a I l:! g i C' o l~ oBl:~N l: l( o.Ii..,: < U" u 2 ~ gcd 0 Iil~ n&! lili< u.: su l'.5"-"C - !! u.~o 0 oN I l:! o J! 1 l'.~ii. B 8~ gI l eu 0.;Ii > S '~ 1! S e~~~ o&! o~ Ii < 2 l! u e ~ 0 l'.e o.!;c u...~ o f; 0 I 0. Ig1 i';~ t"' l e 8 0 g I j o S l:N l eu 0 If lie o.! i~ o ou~ o llo~ JIi< 1!u Ii~ ~ l- e o~o8lls I 11 t u 0""0\00 l iil Conversion Potential: Prepayment of Casa Ramon will be regulated by the provisions of the Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA, or Title VI of the National Housing Act of 1990).Figure H-I illustrates the process for prepayment eligible projects under LIHPRHA. Under LIHPRHA, owners of prepayment eligible projects can choose to retain project ownership in exchange for additional federal incentives, or sell their properties under a voluntary sale program. Where owners choose to sell, tenants, non-profit and governmental entities are provided with an exclusive 12-month negotiating period. Prepayment and conversion of the housing to non-low-income use can only occur if there is no willing buyer to purchase a project. A Notice of Intent may be filed up to two years prior to the scheduled prepayment date to indicate the owner's preliminary decision regarding sale of property versus stay-in as low-income.Within nine months after filing the Notice of Intent, the owner must prepare a Plan of Action" for submittal to HUD. A Plan of Action must include: any proposed changes in the mortgage or in the regulatory agreements; a description of federal, state, and local incentives that are being requested as part of the effort to own and develop the property; and any proposed plans to transfer the title of the property and/or sell.More specifically, LIHPRHA provides the owners of eligible projects an opportunity to receive additional federal incentives for projects, enabling them to raise rents and refinance a portion of their equity, while extending low-income use restrictions for the remaining useful life of the project. The useful life of a project refers to the expected physical life of a building with normal maintenance and repairs, as well as replacement of utilities such as plumbing.HUD officials have indicated that the useful life of a building is usually 70 years. Thus, use restrictions will be extended for an additional 50 years if owners decide to maintain the projects as low-income under LIHPRHA, HUD will establish standards and procedures for determining when the useful life of a building expires, Under LIHPRHA, the difference between the tenants'portion of the rent (30 percent of income) and market rent in Section 236 projects is covered by a Section 8 contract for both very low and low-income tenants.According to HUD officials, the owner of Casa Ramon has not yet filed a Notice of Intent to indicate the FIGUREH- l PROCESS FOR PREPAYMENT EUGIBLE PROJECTS BUD Projects Subject to LllIPRHA in Orange Casa Ramon (Section 236(J)( 1))Project Owner Files Notice of Intent Option I: Continue low- income restrictions with HUD Incentives Option 2: Sell to non-profit or government entity Option 3: Prepay mortgage and convert to market rate housing 9 Months Project Owner Files Plan of Action Ie OPTION 1 Continue low-income restrictions with BUD incentives Rent increases Additional Section 8 subsidies 241( f) equity take-out loan OPTION 2 Sell to non- profit or government entity 12 months II 6 months for HUn and Public Review Renegotiate to extend income use restriction for the useful life of the building Negotiations with HUDfail No bona fide offer OPTION 3 Prepay mortgage and convert to market rate housing In addition to the HUD Section 236(J)(I) loan, Casa Ramon also maintains a Section 8 contract for all 75 units in the project. This initial Section 8 contract expired on September 30, 1991 and the owner renewed the contract with HUD for annther five years until 1996. This project is receiving substantially lower rents than the maximum Fair Market Rents for Orange County or than the average rents in the City (refer to Table H-12), and can potentially command higher rents if the owner decides to opt out of the Section 8 program.However, the owner can also request additional financial incentives from HUD if affordability controls are extended on the project. As long as use restrictions under the Section 236 mortgage or an approved Plan of Action pursuant to LIHPRHA are in effect, the Section 8 contract associated with the project is likely to be renewed. TABLEH-12 MONTHLY BASIC RENTS FOR CASA RAMON 2)I) Orange County CasaRamon Maximum Fair Unit Size Basic Rent Market Rent One- bedroom $329 $ 764 Two-bedroom $399 $ 900 Three- bedroom $ 456 $1,125 Source: Notes:Compiled by CottonlBeland/Associates,June, 1992.I) Obtained from the building manager of CasaRamon.Obtained from the Orange County Housing Authority.Cost Analvsis The following discussion examines both the cost of preserving the units at risk in the City of Orange, and the costs of producing new rental housing comparable in size and rent levels to replace the units which could convert. A cost estimate has been developed for each option based on information provided from the County Housing Authority, the project's management company, and development experts. Actual costs involved in each option will also depend on the rental and real estate market situations at the time the low-income use restrictions on the projects expire.Housing Preservation Costs: A total of 75 family housing units in Casa Ramon (26 one-bedroom, 41 two-bedroom, and 8 three-bedroom units) are at risk of converting to non-low-income use. Preservation of the at risk units can be achieved in different ways: 1) preserve Casa Ramon as low-income by offering additional federal incentives to the project; 2) facilitate the transfer of ownership of Casa Ramon to a non-profit organization; or 3) assist qualified tenants in obtaining Section 8 certificates from the Orange County Housing Authority.Continue as Low-Income with Federal Incentives: Under LIHPRHA,HUD mortgage prepayment eligible projects may choose to continue as low-income in exchange for additional federal incentives. Incentives include: rent increases.to guarantee an eight percent return on project investment; additional Section 8 subsidies; and 241(t) equity take-out loan. Once extended, affordability controls on the project will remain effective for the remaining useful life ( approximately an additional 50 years) of the project under LIHPRHA. Under LIHPRHA, HUD has established the Federal Cost Limit to determine a project's eligibility for fulI federal incentives. As long as Casa Ramon's annual preservation rent (eight percent return on equity, debt services on rehabilitation loan and HUD first mortgage, operating expenses, and reserves combined) does not exceed the Federal Cost Limit, the owner may file a Plan of Action for full federal incentives.The Federal Cost Limit is currently set at 120 percent of the Section 8 Fair Market Rent or 120 percent of the local market area rent,whichever is greater.Using the Fair Market Rents previously shown in Table H-12 as estimates, annual Federal Cost Limit for Casa Ramon is approximately 789,168, The actual cost comparison to determine eligibility for federal incentives will be performed by HUD officials when the owner of Casa Ramon files a Notice of Intent and a subsequent Plan of Action.Transfer of Ownership: Another way to preserve the at-risk units is to transfer ownership of Casa Ramon to community-based non-profit or government entity, such as the Orange Housing Development Corporation or County Housing Authority. By transferring the ownership of Cas8 Ramon to a non- profit housing organization, low-income use restrictions can be secured, and the project will become eligible for a greater range of government assistance programs.According to development experts, current market value for a project can be estimated on the basis of the project's potential yearly income,operating and maintenance expenses, and building condition. Potential annual income for Casa Ramon is estimated on the basis of the project' s unit adjusted for a five percent vacancy rate. The current market value for Casa Ramon is estimated to be $4,382,000. Under LIHPRHA, HUD will provide mortgage loan insurance on an acquisition loan for up to 95 percent of the equity to priority purchasers. If, theoretically, Casa Ramon was sold to a qualified non- profit prior to extending the 2o-year mortgage with the current owner,a total downpayment of approximately $219,100 and a mortgage loan of $4,162,900 would be required to transfer ownership to a non-profit or public agency. Given the good condition of Casa Ramon,maintenance costs are likely to be low. Therefore, it is assumed that rental income and HUD Section 8 subsidies will defray monthly mortgage and maintenance costs.Rent Subsidy: If all efforts to prevent conversion fail and the low-income use restrictions on Casa Ramon expire, Section 8 certificates can be used to subsidize the property owners for extending affordability controls. Under the Section 8 certificate program, HUD pays owners the difference between what tenants can pay (defmed as 30 percent of household income) and what HUD and the local Housing Authority estimate to be Fair Market Rent on the unit.Section 8 certificates are only available to very low-income households households earning less than 50 percent of the County median income. The 1992 HUD median income for Anabeim- Santa Ana region is $52,700. Assuming the average very low- income household has an income at 30 percent of the County median income, the average income of Section 8 recipients in Orange County would be $15,810. Under these assumptions, monthly housing costs affordable to Section 8 recipients are estimated to be approximately $395 ( based on HUD's defmition of affordable housing costs as 30 percent of household income).According to the Orange County Housing Authority, Fair Market Rent is $764 for a one-bedroom unit, $900 for a two-bedroom unit, and 1,125 for a three-bedroom unit. Thus, the difference between housing cost affordable to very low-income households and the Fair Market Rent is $369 for a one-bedroom unit, $505 for a two-bedroom unit, and $730 for a three-bedroom unit.Currently, Casa Ramon has a Section 8 contract for all 75 units in the project. Given the bedroom mix of the project, Section 8 vouchers/certificates required to maintain the affordability of these units would be approximately $ 36,139 Replacement Cnsts: This section analyzes the cost of constructing new low- income housing units in the City of Orange to replace the 75-unit Casa Ramon in the City of Orange should it be converted from low-income use. The cost of developing new housing depends on a variety of factors such as density, size of units, location and related land costs, and type of construction. In general,land costs in Southern California are quite high.Table H-13 shows the average per unit development cost by unit type in Orange. Based on estimates by City staff, per unit development cost in Orange is approximately $64,750 for a one-bedroom, $70,000 for a two-bedroom, and 75,250 for a three-bedroom unit. These estimates are based on a construction cost of $35 per square foot and include $ 7,000 of permit processing fees,infrastructure connection fees and impact fees. Using the permit cost estimates shown in Table H-13, the cost to replace the 75 assisted units in Casa Ramon would run approximately $5, 155,500, requiring a minimum downpayment of 515,550.TABLEH-13 REPLACEMENT HOUSING COSTS Avcraac Land Conlllruclion Tolal Total Unit Type UnitSize Co.tlUnit ColllUnit F-ronit ColllllUnit One-bedroom 650"' 1' ft, $35,000 $22,750 $7,000 $64,750 Two-bedroom 800"'1. ft. $35,000 $28,000 $7,000 $70,000 Three- bedroom 950"'1. ft. $35,000 $ 33,250 $ 7,000 $75,250 Source: City of Orange, June, 1992.Cost Comnarison The cost to build new housing to replace the 75 at-risk units is high, with an estimated total cost of $5,155,500 and an associated downpayment cost of 515,550. This amount is substantially higher than the $4, 382,000 preservation cost and related $219,100 downpayment under a transfer of ownership scenario the $ 433,668 anoual Section 8 subsidies, or the costs to continue federal subsidies.HUD is committed to providing subsidies for the preservation of the federally assisted units, Both transferring project ownership to non-profit organizations and maintaining projects as low-income under existing Housing Programs The goals and policies contained in the Housing Element address Orange's identified housing needs and are implemented through a series of housing programs. Housing programs define the specific actions the City will take to achieve specific goals and policies. The City of Orange's overall housing program strategy for addressing its housing needs has been defined according to the following issue areas: Conserving and improving the condition of the existing stock of affordable housing. Providing adequate sites to achieve a variety and diversity of housing. Assisting in the development of affordable housing. Removing governmental constraints as necessary. Promoting equal housing opportunity. Conservinl! and ImDrovinl! Existinl! Affordable Housinl! Housing rehabilitation includes major efforts to improve property and alterations aimed at converting the type or number of units. The goal of housing preservation is to protect the existing quality and investment in housing to avoid a degree of physical deterioration that will require a larger rehabilitation effort to restore quality and value. The accepted age standard for major housing rehabilitation is after 30 years. In 1990, approximately 29 percent of the City's housing units were over 30 years old, indicating the potential need for rehabilitation and continued maintenance of a quarter of housing based on age alone. In addition to rehabilitation efforts, the City has set a high priority to conserve Orange's existing stock of affordable housing. Housing conservation programs contained in the element include programs to monitor units at risk of converting to market rate and direct assistance to ensure continued subsidies, Section 8 rent subsidies, and shared housing. 1. Housing Rehabilitation Program: The Rehabilitation Program represents a major effort to maintain and improve the City's housing stock. The program provides financial assistance to property owners applying for home improvement loans. The City currently finances this program with funds received from the U.S. Department of Housing and Urban Development (BUD) through its Community Development Block Grant (CDBG) program. The City increases the financing power of those funds through the use of a Revolving Fund to collateralize loans. Property owners with sufficient incomes to sustain Housing Element - 57 8/ 93 reduced-interest payments can obtain CDBG subsidized through an agreement with Bank of America's City Improvement and Restoration Program. Eligibility of loans is determined by the applicant's gross annual household income.A Housing Needs Assessment was recently completed for the Redevelopment Agency. In order to concentrate the rehabilitation effort, the City is studying the assessment which identifies rehabilitation target areas andestim:rtes the number of units and potential housing rehabilitation costs within these areas. The study identifies both primary and secondary target areas for single- family and multi- family rehabilitation programs.The study shows that in the primary targeted single-family areas, EI Modena South and the CypresslLemon area, there are approximately 1,000 existing units with rehabilitation needs. Approximately 110 units in El Modena South and 275 units in CypresslLemon require substantial rehabilitation efforts. Four areas within the City are identified as primary multi- family rehabilitation target areas -HooverlWilson, AdamslHighland, KatellalShaffer and Prospect. A significant proportion of the units in these areas require substantial interior and exterior rehabilitation work. The City will continue to operate an active housing rehabilitation program, combined with code enforcement efforts, to upgrade and maintain its housing stock.The following types of assistance are available under Orange's Rehabilitation Program:a. Low Interest Loan: The City has entered into an agreement with a local lender to process loans at a designated interest rate currently 6%). A subsidy in the amount of the difference between the lender's predetermined rate and the designated interest rate is provided by the City. The maximum loan amount available to a homeowner is $35, 000 and the maximum loan term is 15 years.b. Deferred Payment Loan: A direct loan is made from the City to qualified owner-occupants for rehabilitation activities,secured by a Deed of Trust against the property. Principal and interest of 2.00% is due upon sale or transfer of the property or at the end of 15 years. The maximum loan amount is owner-occupants who do not meet participating lender qualifications under the Low Interest Loan Program.c. Homeowner Participation Program: Under this program,low and moderate income owner-occupants are eligible for reimbursement grants to cover a portion of rehabilitation costs.The City will reimburse the owner 50 percent of project costs up to $2,000) for very low income households, and 25 of the project costs (up to $1,000) for low income households. This program is funded through CDBG moneys and is targeted primarily to mobile home owners, although single- familyowner-<lccupants may be eligible for grants for minor rehabilitation projects.d. Housing Accessibility Program: With CDBG funds, this program provides qualified low and moderate income owner-occupants with grants of up to $1,500 for modifications which improve accessibility for disabled persons. Eligible activities include widening doorways, and installing ramps and grab bars.e, Rental Rehabilitation Program: The Rental Rehabilitation Program offers fixed rate interest subsidy loans or deferred payment loans to rental property owners to improve their affordable housing units, Rental assistance is also provided for eligible tenants through the Orange County Housing Authority.This program is currently funded through the Federal Rental Rehabilitation Program Grant and Redevelopment Agency 20 percent Housing Set- Aside funds.f. Code Enforcement Grant Program: The Code Enforcement Grant Program assists those homeowners cited for code violations who do not have the income to repair the deficiencies. Homeowners are assisted with a grant to bring property into compliance with City code requirements. The maximum grant is $5,000 and there is no repayment required providing homeowners do not exceed Level 3 income guidelines.g. Housing Accessibility Grant Program (HAP): The Housing Accessibility Program (BAP Grant) assists disabled and elderly residents in making their home environments more accessible,The Program can be used to improve access to the residence or provide modifications inside the home. The maximum grant is 1,500 and no repayment is required.Five-Year Program Goals: The City will continue to utilize CDBG funds to finance the housing rehabilitation programs and is currently studying the use of affordable housing 20 percent set-aside funds to support future rehabilitation efforts when the Rental Rehabilitation Program funds are expended. The City's five-year goal is to rehabilitate 100 units.2. Enforcement of Uniform Housing Code: The accepted age standard for major housing rehabilitation is after 30 years. In 1990,approximately 29 percent of the City's housing units are over 30 years old, indicating the potential need for rehabilitation and continued Housing maintenance of a quarter of housing based on age alone. During the 1990's an additional 36% of housing in Orange will reach 30 years old. Currently, City staff perform inspections on residential units upon request. The Code Enforcement Program provides grants of up to $5,000 to eligible low and moderate income owner-occupants of housing units that fail to meet the California Health and Safety Code or City Building Code standards. Owners are generally referred to the program by the Code Enforcement Division. (See 1 - f.) Eligible activities under the program are minor exterior improvements such as painting, repair or replacement of doors and windows, and electrical and plumbing repairs necessary to bring those systems into compliance with health and safety codes. This program was established in 1988 as a pilot program and funded through the 20 percent housing set-aside funds,Five-Year Program Goals: TIle City will strengthen the program to complete 300 housing inspections per month and continue to provide information regarding available rehabilitation assistance.3. Conservation of Existing and Future Affordable Units: A community's existing affordable housing stock is a valuable resource which should be conserved, and if necessary, improved to meet habitability requirements. The City of Orange has four federally assisted housing projects in its jurisdiction - Casa Ramon, Friendly Center, Community Garden Tower, and Garden tower West. Case Ramon is a 7S-unit family housing project developed in 1974 under the HUD Section 236 program. Friendly Center, Community Garden Tower, and Garden Tower west are non-profit owned housing projects.Long-term affordability of these three projects is fairly secured.However, Casa Ramon will be eligible to convert to market rate housing in 1994 and affordability controls on the bond-financed Palmyra Apartments will expire in the year 2007. As appropriate, the City will work with existing and potential owners as well as tenants to keep these units affordable to lower income households and to avoid tenant displacement.a. Financing/Subsidy Resources: One of the major factors to be considered in formulating programs to preserve the "at risk"units is the financial and institutional resources available for such programs. The following provides a brief overview of those resources, Due to both the high costs of developing and preserving housing and limitations on both the amount and uses of funds, a variety of funding sources may be required.BUD Funds: Under LIHPRHA, HUD will provide the owner of Casa Ramon with incentives which enable Housing the owner to raise rents and refinance a portion of the equity, while extending low-income use restrictions on the project. The difference between the tenant' s portion of the rent and market rent will be covered by Section 8 contracts. Should a nonprofit take ownership of the project, the following HUD incentives would be offered:Mortgage insurance for acquisition loan for 95 percent of equity.Project-based Section 8 contract, with HUD-subsidized rents set at levels high enough to provide an eight percent return to owners who retain the project or to cover debt service on an acquisition loan for the new purchaser;Grants to the non-profit buyer that would fill any gap between fair market rent or local market rent (whichever is higher) and allowable rents.CDBG Funds: Through the Community Development Block Grant (CDBG) program, HUD provides funds to local governments for funding a wide range of community development activities. CDBG funds have been used for a variety of eligible purposes, and will continue to be used to stabilize neighborhoods and preserve and upgrade the existing housing stock. Use of CDBG funds in Orange in previous fiscal years has included housing rehabilitation, social services, and the improvement of public/community facilities. The City of Orange's CDBG allotment from HUD for the 1991/1992 fiscal year is $859,000. The City can potentially direct a portion of the CDBG funds toward the preservation of assisted housing.Housing Set-Aside: The City's Redevelopment Agency has accumulated approximately $ 2.4 million in redevelopment housing set-aside funds, available for future affordable housing activities. The housing set-aside funds can be used for a variety of affordable housing construction and preservation activities including: land disposition and write-downs, site improvements, loans, grants, issuance of bonds, land and building acquisition by Agency, direct housing construction, housing rehabilitation, rent subsidies,redevelopment fund, and administrative costs for non-profit housing corporations. The set- aside fund potentially be a significant funding source for the preservation of assisted housing. General Revenues: The City does not currently fund housing programs out of general revenue funds and, consequently, does not have any general revenue funds set aside or available for housing. Orange County Housing Authority Operating Reserves: Other potential sources of funding are the operating reserves of housing authorities. The Orange County Housing Authority currently has roughly $8.5 million . available to provide housing opportunities throughout the County. This money is subject to some restrictions and priority is given to projects which provide for the leverage and recycling of funds. Orange County Affordable Housing Clearinghouse: The Orange County Affordable Housing Clearinghouse is a consortium of lending institutions and community groups focused on providing funds for affordable housing through team lending. Sixteen lending institutions are currently members of the coalition. Because the coalition is new and is still in the process of being set up, it does not currently have a track record in the.community. However the financial assets and expertise of coalition members suggest that this should be a significant source of funds for low- income housing in Orange County in the future.b. Administrative Resources: An alternative to providing subsidies to existing owners to keep units available as low-income housing is for public or non-profit agencies to acquire or construct housing units to replace "at-risk" units lost to conversion, Non-profit ownership assures the future availability of purchased units as low-income housing. Several public and non-profit agencies are currently active or have expressed an interest in purchasing and/or managing at- risk,low-income housing projects in Orange County.Orange Housing Development Corporation ( OHDC):OHDC is a recently formed non-profit housing developer based in the City of Orange. Start-up costs to establish OHDC were funded through the City's redevelopment housing set-aside funds. OHDC is currently working with the Orange Redevelopment Agency on the development of two low-income rental housing projects - a seven-unit family housing project and a IS- the Redevelopment Agency owns or will acquire. Ownership of the parcels will be transferred to OHDC. Target tenants for both projects are households earning less than 45 percent of the County median income. Orange County Community Housing Corporation OCCHC): OCCHC is the oldest and largest non- profit affordable housing developer in Orange County. With assets exceeding $6.6 million, OCCHC has been involved in 14 housing projects for very low- income large families throughout Orange County.Developments by OCCHC include: I) Domingo Avenue Apartments (28 units), Newport Beach; 2)Berry Street Apartments (4 units), Anabeim; 3)Coffield Apartments (24 units), Dana Point; 4) Irvine Condominiums (6 units), Irvine; 5) Buena Street Apartments (28 units), Garden Grove; and 6) Keel Street Shelter (8 units), Garden Grove. OCCHC participates in the management as well as the development of low-income housing and has expressed interest in purchasing/managing "at risk" units throughout Orange County. Contact: Allen Baldwin 714) 558-6006.Civic Center Barrio Housing Corporation: Civic Center Barrio Housing Corporation also has considerable experience in, and resources for, the development and or management of low-income housing. Barrio Housing owns and operates over 130 housing units in Orange County and San Diego County and has been involved in the development of over 400 affordable units. Barrio Housing has staff of three fuIl-time employees and has been operating in Orange County for 16 years. Representatives from Barrio Housing indicate that the corporation would be interested in preserving at-risk units throughout Orange County. Contact: Alana Baker (714) 835-0406.Council of Orange County, Society of Saint Vincent de Paul: The Society of Saint Vincent De Paul provides many social services in Orange County such as food distribution and medical services. The Society is also in the process of developing a congregate housing project in Orange County and plans to continue to expand its housing operations. Including the value of donated time and goods, the Society has an annual revenue of $9.8 million and employs a staff of 75 persons. The Society has expressed interests in preserving at-risk housing in Orange County. Contact:Scott Mather (714) 633-9195.HomeAid: HomeAid is a non-profit corporation established by the Building Industry Association of Southern California 10 help alleviate the homeless problem in the region. The HomeAid program has a dual focus: to construct or renovate shelters for the transitionally homeless and to develop housing for low and very low income families and individuals.Discussion with representative of HomeAid indicates that this agency is very interested in preserving at-risk housing in Orange County.Projects completed or in progress in Orange County by HomeAid include: 1) Thomas House (Garden Grove) -refurbishing of an eight- unit apartment building for homeless families; 2) Interval House (central Orange County) - rehabilitation and upgrading of an existing home for battered women and their children; 3) New Vista Shelter (Fullerton) - rebuilding of an apartment building for homeless families; 4) Don R. Roth Family Center (Orange) - construction of three new duplexes for homeless families; 5) Anchor House ( San Clemente) - rehabilitation of a duplex for homeless families; 6) Anaheim Interfaith Shelter (Anabeim) -refurbishing and expansion of a single-family home for homeless families; 7) Huntington Youth Shelter Buntington Beach) - refurbishing of a historic farmhouse and addition of 12 new bedrooms for a facility to house homeless and runaway teens; 8) Santa Ana YWCA Second Stage Housing (Santa Ana) -refurbishing of a four-unit apartment building for homeless women and their children; 9) Friendship Shelter ( Laguna Beach) - refurbishing and enlarging of a detached home to provide shelter for homeless men and women; and 10) Precious Life Shelter (north Orange County) - expansion and rehabilitation of a home for unwed mothers and their newborn babies,Contact: Elisha Back ( 714) 247-0420.c. Quantified Objectives: A total of 75 units in Casa Ramon are at risk of converting to non-low-income use prior 10 July 1, 1999. It is the objective of the City to either retain or replace as low-income housing all 75 at-risk units in the City. A comparison of current costs of preservation and current potential resources available indicates that preservation of the at risk" units may be feasible. The City will continue to Housing Element - 64 8/ pursue new opportunities to replace low-income restricted units lost through conversion to market rate units.d. Programs for Preservation: The City plans to monitor " at risk" housing units to ensure units will not be lost as low-income housing. The following are specific actions that the City will take to protect or replace "at risk" units.Monitor units at Risk: Regularly monitor the status of Casa Ramon. Pursuant to Government Code Section 65863.10, the City will inform the tenants of the status of Casa Ramon at least one year in advance of the potential conversion date.Time Frame: The earliest potential conversion date for the 75-unit Casa Ramon is February I,1994. The city will inform the project's tenants at least one year prior to this date.Responsible Agency: Community Development Department Funding Source: Department Administrative Budget, CDBG.Working with Potential Priority Purchasers:Establish contact with public and non-profit agencies interested in purchasing and/or managing units at risk to inform them of the status of Casa Ramon. Where feasible, provide technical assistance to these organizations with respect to financing. Coordinate with the Orange County Affordable Housing Clearinghouse in assisting priority purchasers to obtain financing,Time Frame: Establish contact by end of 1992.Responsible Agency: Community Development Department Funding Source: Department Administrative Budget, CDBG, Housing Set-Aside Fund.Housing Element - 65 Facilitate Tenant Purchase of Units: Tenant purchase of at-risk units may become a preservation option if the owner of Casa Ramon files a "Notice of Intent" which indicates a desire to sell or prepay the project, or negotiations between the owner and HUD fail to preserve the project as low-income housing. The City will facilitate tenant purchase of the project by providing technical assistance in financing, organizing a tenant association as a priority purchaser,coordinating with non-profit housing organizations, and encouraging tenant participation in the prepayment process. The City will begin working with the Orange County Affordable Housing Clearinghouse to establish a program to provide preferential financing, and potentially downpayment assistance, for low-income tenants wishing to purchase their units.Time Frame: Begin coordination with the Orange County Affordable Housing Clearinghouse by the end of 1992. Responsible Agency: Community Development Department Funding Source: HOPE and HOME grants,CDBG, Orange County Affordable Housing Clearinghouse, Housing Authority Operating Reserves.Tenant Education: The City will work with tenants of units at risk of converting. The City will provide tenants with education regarding potential tenant purchase of Casa Ramon and act as a liaison between tenants and nonprofits potentially involved in constructing or acquiring replacement housing. The City will also provide tenants in at-risk projects information regarding Section 8 rent subsidies through the Orange County Housing Authority.Time Frame:At least one year prior to subsidy termination for Casa Ramon. Responsihle Agency: Community Development Department Housing Funding Source:Department administrative Budget, CDBG. Encourage Project Owners to Participate in Section 8 Program: If detailed analysis and negotiation with the owner of Casa Ramon indicates that long-term rent restrictions cannot be secured on the units, the City will encourage the owner to participate in the Section 8 certificate program. The City will act as the liaison between the County Housing Authority and the owner of Casa Ramon.Time Frame: Continually monitor status of extension of low- income use restrictions and encourage the owner of Casa Ramon to participate in the County Housing Authority Section 8 certificate program immediately upon notification of the owner's decision to discontinue low-income use.Responsible Agency: Community Development Department Funding Source: Department Administrative Budget.Assist Tenants of Existing Rent-Restricted Units to Obtain Priority Status on Section 8 Waiting List:The Orange County Housing Authority has established three categories of priority applicants to receive Section 8 certificates: 1) evicted or homeless households; 2)households living in substandard housing units; and 3)households paying more than 50 percent of income for rent and utilities.Time Frame: Continually monitor status of extension of low-income use restrictions and assist tenants to apply for priority status immediately upon notification of the owner's decision to discontinue low- income use.Responsible Agency: Community Development Department Funding Source:Department Administrative Budget. Five-Year Program Goals: The goal of this program Is to conserve the long-term affordability of existing and future units in Orange.This will be accomplished by the following actions: 1) developing an early warning system for subsidized units with the potential to convert to market rate; 2) providing continued public subsidy as available to units which are eligible to convert to market rate; 3)maintaining, where feasible, a minimum thirty- year term of affordability for affordable units; 4) maintaining affordability through deed restriction, 5)retaining for the City the first option to purchase affordable units; and by 1994 the City will have attempted to retain the 7S units at risk (Casa Ramon).4. Mobilehome Rental Assistance Program: The City of Orange provides rental assistance to very low income mobilehome park residents paying more than 50 percent of their income on housing costs. The program provides monthly rental assistance to eligible residents equal to the difference between the household's monthly housing costs and 30 percent of their income.This program is currently funded through Housing Set-Aside funds from the Southwest and Northwest Redevelopment project areas. The Department of Community Development, Economic Development Division, administers this program for the Redevelopment Agency. Housing Element - Five-Year Program Goals: The City will continue to offer rental assistance to at least 25 income-eligible mobilehome occupants provided that the program is deemed to be economically feasible and funding is available.S. Section 8 Rental Assistance Program Housing Vouchers: The section 8 rental assistance program extends rental subsidies to low income family and elderly which spend more than 30% of their income on rent. The subsidy represents the difference between the excess of 30% of the monthly income and the fair market rent. The voucher program is similar to the Section 8 Program, although participants receive housing .vouchers" rather than certificates. Vouchers permit tenants to locate their own housing. Unlike the certificate program,participants are permitted to rent units beyond the federally determined fair market rent in an area, provided the tenants pay the extra rent increment.The City's Comprehensive Housing Affordability Strategy identifies that between the fiscalyears 1991/92 and 1995/96, there will be 4,768 lower income renter households in need of rental assistance. As of February 1, 1991, there were 496 households in Orange receiving assistance under this program. Given the long program waiting list,the Orange County Housing Authority is no longer accepting applications.Five-Year Program Goals: The city has established a one-year program goal to continue providing rental assistance to 496 households through OCHA and will aggressively pursue additional Section 8 housing certificates and vouchers in the future. The City will also facilitate use of the program in its jurisdiction by encouraging apartment owners to list available rental units with the Housing Authority.6. Home Sharing: The City's Senior Center operates a home sharinglhome finding service intended to match lower income, single householders with similar persons seeking to share housing costs. This service benefits the elderly in particular by allowing them to reduce housing costs and to have another person in a home who may help meet the special physical needs of the elderly. The City of Orange's Shared Housing Program is administered hy the Orange Senior Center through 2 part time employees (20 hours a week) which is funded by the Senior Training for Employment Program (STEP), The STEP is a federally funded program which employs low income seniors.Five-Year Program Goal: The City will advertise the shared housing program through placement of program brochures in key locales throughout the community and continue to make at least U matches per month.Housing 7. Reverse Mortgage: The City offers a fixed-term reverse mortgage referral program. A fixed-term reverse mortgage allows older homeowners the opportunity to borrow out home equity with no repayment until the end of the designated term. The homeowner receives a steady stream of monthly income for a predetertnined number of years, at the end of which the total loan amount (principal and deferred interest) is paid back, generally with proceeds from the sale of the home.The City's reverse mortgage program is funded from Housing Set-Aside funds and offered through a local savings bank. Eligible participants are City residents 70 years of age or older. Counseling services are available as part of the program to assist the homeowner with questions and reviewing possible alternative options.Five-Year Program Goal: The City will continue to coordinate with the lending institution and Inform senior residents of the reverse mortgage programs available. The City will also continue to provide technical assistance to Interested seniors.8. first-TIme Homehuyer Program: The City offers a First-Time Homehuyer Program administered by the Department of Community Development, Economic Development Division, and funded through the Housing Set-Aside funds,The program assists eligible low and moderate income families in the City to purchase their first home by providing down payment assistance. This assistance takes the form of a deferred payment, low interest loan secured by a second deed of trust. The amount of the loan may be up to ten percent of the purchase price of the home, but not to exceed $22,500. The loan is for a period of 15 years at an interest rate of eight percent ( 8.00%). Payments come due beginning in the sixth year of the loan period. If the home is sold prior to the tenth year of the loan, the program participant must pay to the Redevelopment Agency a percentage of the equity accrued in the property.Five-Year Program Goal: The City will continue to utilize Housing Set-Aside funds to support this program in the amount of $ 200,000 per year.Provision Of Adeouate Sites A key element in satisfying the housing needs of all segments of the community is the provision of adequate sites for housing of all types, sizes and prices. This is an important function in both zoning and General 9. Land Use ElemenUZoning Ordinance: Planning and regulatory actions to achieve adequate housing sites offering a range of housing types and styles include the Land Use Element of the General Plan and the Zoning Ordinance. A variety of residemial types is provided for in Orange ranging from 0,1 to 24 units per acre, with higher densities achievahle through density bonus provisions. The residential development capacity under the existing Land Use Plan is adequate to meet the City's share of regional housing needs, which have been identified as 3,857 units through July, 1994. Five-Year Program Goal: The City goal will be to provide zoning at appropriate densities which will provide the opportunity for developers to help fulfill the regional housing needs. Prior to July of 1994 the City will initiate efforts to amend the General Plan to include a Medium High Density category. This Medium High Density category would allow densities of 2S to 36 units to the acre.Available sites would be identified along with site suitability criteria.10. Multiple Family Development Sites: There are additional sites within the City which would be suitable for affordable multiple family developments as follows:a. Depot Area The City is in the process of adopting a specific plan for a 42. 8 gross acre area of land surrounding the Santa Fe depot. This plan is known as the Santa Fe Depot Area Specific Plan ( SFSP)and is located four blocks west of the downtown Orange Historic Plaza Area. One of the factors for creating this plan is that the Southern California Regional Rail Authority (SCRA) is including Orange as a commuter rail stop at the Santa Fe Depot site. Adjacent to the depot is a 10 acre site which presently exists as a manufacturing area, This area has been identified as a site where some senior and low/moderate income housing could be constructed along with conventional housing. This site is part of the Northwest Redevelopment Area which means that site development assistance along with other redevelopment assistance programs could be offered to the private sector. It is projected that 250 units could be accommodated on this proposed site. The SFSP sets out design guidelines and development standards for this area.Five Year Program Goal: Upon completion of the SFSP, the City will pursue the relocation of the Anaconda Manufacturing properties and make Redevelopment Funding and relocation assistance available to the owners.b. Commercial Mixed Use Housing Element - 71 8/93 Two shopping centers which are zoned Commercial with tremendous development possibilities for low and moderate income housing are the "'fOWII and Country" and "The City" Shopping Centers. The City's zoning code allows residential development in conjunction with commercial development suhject to a conditional use permiL The "ToWII and Country" is presently developed with single story retail stores, offices and at grade parking which tends to convey underutilization of these parcels. This 15 acres site has public transportation, shopping facilities, educational facilities and would lend itself to more intense development with possibly mid-rise and parking structures. The area surrounding is developed with mid and high rise structures, with a variety of adjacent land uses: office tOwers, hospitals, medical offices, commercial retail, education facilities and other residential (multi family)communities. Immediate access is available to both the SR 22 Freeway and 1-5 Freeway. The Orange County Fixed Guideway is proposing a nearby station area while local buses run frequently on Main Street, the major arterial that fronts the ToWII and Country. "The City" Shopping Center complex is presently developed with single story retail stores (mall), at grade parking, several high-rise office buildings, restaurants, movie theaters, and several hotels. This site is approximately 60 acres with development potential because of the under utilized mall with at grade parking (similar situation as ToWII and Country). The complex is surrounded by the UCI Medical Center, Medical offices, Lihrary Administrative Offices, Orange County Family and Juvenile Courts and other county facilities, There are also existing multiple family neighborhoods in the area. Immediate access is available to the SR 22 Freeway and nearby 1-5 Freeway, The Orange County Fixed Guideway is proposing a nearby station area while local transit buses run frequently on nearby Chapman and City Drive which are major arterials.This site would lend itself to mid rise or high rise structures for low and moderate income, multiple family development.No density caps have been imposed on these two shopping center complexes.Five Year Program Goal: The City will investigate the possibility of cooperating with the property OWller& to initiate future housing projects in conjunction with the other multi use faci6ties. These Mixed Use Areas are part of the City's Redevelopment Plan,therefore redevelopment assistance programs could be offered to the private sector.11. Site Suitability Criteria: Low and moderate income housing development should be located on sites which are not only physically Housing Element - adequate but also suitable for such development. These aims can be facilitated by establishing a set of "site suitability criteria" by which to evaluate the merits of potential project sites for low and moderate cost housing. Criteria for affordable housing could be implemented through the City's Zoning Ordinance. Criteria for evaluating the suitability of sites may include the following: Services available to the sites (e.g., public transportation, essential shopping facilities, educational facilities, etc.) Neighborhood characteristics (e.g., adjacent land uses, proximity to employment opportunities, environmental considerations, etc.) Physical aspects of the site (e.g., topography, off- site improvements; etc.)Five-Year Program Goal: The City will continue to utilize the California Environmental Quality (CEQA) process to evaluate the suitability of housing sites for affordable housing developments.12. Sites for Homeless SheltersrI'ransitional Housing: The City' s CHAS estimated there were 178 people accommodated in homeless shelters and 78 homeless people were observed at Hart Park. For the fiscal year 1991/92, the City has committed $98,000 CDBG grants for homeless services, Organizations receiving these funds are: St.Vincent de Paul's Food Distribution Center; EI Modena Service Committee; Mariposa Women's Center; Orange County Youth and Family Services; and the Women's Transitional Living Center.Emergency shelters and transitional housing facilities are allowed in R-2-6, R-2-7, R-2-8, R-3, R-4, C- l, C-2, C-3 zones; all with a conditional use permit.Five-Year Program Goals: The City will continue to support efforts by non-profits to expand the transitional and temporary housing units with support services in the City. The City will investigate the possibility of using the Shelter Plus Care program which links supportive services to rental assistance for homeless persons with disabilities and their families.Assist In Development Of Affordable Housine New construction is a major source of housing for prospective homeowners and renters, However, the cost of new construction is substantially greater than other program categories. Incentive programs, such as density bonus, offer a Public sector support for new construction includes the following programs for low and moderate income housing development.. 13. Affordable Housing Plan: City staff members are currently preparing an Affordable Housing Plan which will identify a comprehensive program to provide adequate housing for all residents of the City of Orange, The plan will focus on providing a variety of housing affordable to all segments of the community. The plan is intended to be an "action plan" identifying how the City will meet its housing needs and serve as an implementation vehicle addressing "affordable" housing needs. The proposed plan covers City Housing Goals, an assessment of current housing needs,. an assessment of existing housing conditions and implementation policies. Staff will present various available implementation vehicles to the City Council for their consideration and adoption which will include the following recommendations: A. Development Approval Processing: 1. Assistance to developers before application is formally reviewed by interdepartmental committee Environmental Review Board). 2. Expedited reviews and approvals through a Housing Development Coordination Office. 3. Use of administrative hearings in lieu of City Council hearings. Many matters relating to development now come before a hearing officer (Zoning Administrator), leaving the City Council free to deal with issues that involve policy. Administrative hearings can be used for zoning adjustments and other minor permits. 4, Housing Policy Manual. Several city departments have published policy manuals that are made available to builders and developers as unified sources of information. s. "Accelerated" Processing. Projects can be processed by the developer in an accelerated time span by the plan check section of the Building Division. 6. Development Fee Deferral. Development fees can be deferred until a Certificate of Occupancy is issued rather than when the permit is pulled. Housing Element - 74 8/ 93 B. Zoning Relief: 1. Possible reductions in building setbacks; private open space; parking space requirements and dwelling unit size. 2. Allowing density bonus greater than 25%; mixed use projects with housing development in addition to commercial and office uses. C. Site PlanninglDesign: Designing residential projects as follows: 1. Encourage site plans that increase density while still providing minimal open space. 2. Support "rero-lot-line" and HZ" configurations!sub-division.3. Support clustering arrangements.Five-Year Program Goal: The City goals will be to finalize this plan and implement it prior to the completion of the new element cycle.14. Affordable Housing Ordinance: The City will consider the adoption of an "Affordable Housing Ordinance" which would allow for the development of owner and renter occupied affordable housing units.This ordinance would provide incentives for the orderly development of affordable owner and renter occupied housing units consistent with community policies and values. The intent would be to provide regulatory incentives to ensure that housing will be produced at a reduced cost expressively for low and moderate income households.Some of these incentives or concessions could include:1) Waiver of planning review fees, development fees and/or building plan check and permit fees.2) Reduction in site development standards such as lot coverage,building setbackslheights, parking requirements, open space requirements.3) Allowing mixed use projects 4) Allow larger than 25% density bonus. Housing Element - Density Bonus: Pursuant to State density bonus law, if a developer allocates at least 20% of the units in a housing project to lower income households, 10% for very low income households, or at least 50% for qualifying residents" (e.g. seniors), the City must either 1) grant a density bonus of 25 %. along with one additional regulatory concession to ensure that the housing development will be produced at a reduced cost, or b) provide other incentives of equivalent financial value based upon the land cost per dwelling unit. The developer shall agree to and the City shall ensure continued affordability of all lower income density bonus units for a minimum 30-year period.Five-Year Program Goals: The City is in the process of developing a density bonus ordinance and an affordable housing ordinance which will define "additional regulatory concessions" to be offered.As a means of encouraging developers to take advantage of our housing programs, the City will develop informational brochures on the density bonus and affordable housing programs. The handout will be provided to residential development applicants and made available at the public counter and Housing Agencles.15. Land Assemblage and Write-Down: The City can utilize both CDBG and redevelopment moneys to write-down the cost of land for the development of low and moderate income housing. The intent of this program is to reduce land costs to the point that it becomes economically feasible for a private developer to build units which are affordable to low and moderate income households. As part of the land write-down program, the City may also assist in acquiring and assembling property and in subsidizing on-site and off-site improvements.Five-Year Program Goals: The City has identified two target sites for the development of affordable housing within the five-year time frame of the Housing Element where the Redevelopment Agency will assist in land cost write- downs.The Redevelopment Agency has recently purchased a property at 1515 East Walnut and Intends to transfer ownership to the Orange Housing Development Corporation (OHDC) to develop seven three-bedroom, two-bathroom rental units for large families. In addition, the agencies in the process of purchasing a clty-owned parce1located on Pixley Street and Almond Avenue. The Agency also intends to transfer ownership of this parcel to OHDC to develop 15 one-bedroom, one- bathroom senior apartments. Both projects will be targeted for very low income households earning less than 45 percent of the County median income.Through the Redevelopment Agency, the City will make every reasonable effort residential projects affordable to very low and low income households. 16. Mortgage Revenue Bond Financing: At this time the Orange Redevelopment Agency does not utilize the affordable housing 20 percent set-aside funds for the multi-family revenue bond program.Under this program, tax-exempt bonds are issued to provide funds for construction and mortgage loans to encourage developers to provide rental housing. However, developers are encouraged to contact the County of Orange to obtain bond financing.Five-Year Program Goal: Bonds provide a cost effective mechanism the City . am utilize to promote affordable rental opportunities. The City will encourage prospective developers to take advantage of available bond financing through the County of Orange.The City will initiate and complete a study to evaluate the possibility of adopting an ordinance to provide Incentives for housing projects to set aside affordable units. The City will also continue to study the feasibility of adopting an "Affordable Housing Plan" which would Implement all of the City's proposed and existing housing programs.17. Non-Profit Housing Development Corporation: A non-profit housing development corporation (BDC) promotes, assists, or sponsors housing for low and moderate income people. The Orange Redevelopment Agency has funded the creation of the Orange Housing Development Corporation (OHDC) with the goal of expanding the supply of low and moderate income housing in the City. OHDC can sponsor and develop a project, or work with other non-profit or private developers. OHDC strives to achieve maximum leverage of its funds through use of multiple funding sources on private, State, and Federal levels. In addition to OHDC, the City has developed the following list of non-profit housing developers who are active in the local area:Orange County Affordable Housing Clearinghouse Orange County Community Housing Corporation Civic Center Barrio Housing Corporation Council of Orange County, Society of St. Vincent de Paul HomeAid Southern California Presbyterian Homes The City of Orange will continue to augment and refine this list of non- profit developers for purposes of soliciting their involvement in affordable housing construction These and other non-profit corporations can help meet the goals for additional housing by implementing or assisting with the implementation of programs described in this element.Five-Year Program Goals: 1be City will support the efforts of non-profit organizations and citizen groups to facilitate the provision of low cost housing. 1be City will principally accomplish thIs by working with OHDC or other non-profits to focus on the construction of lower Income housing. Particularly In Redevelopment Agency sponsored housing projects, the City will solicit the participation of non-profit developers as a mechanism of ensuring the long- term affordablIity of the project.18. Pursue Affordable Housing Funding Sources: Successful implementation of Housing Element programs to create affordable housing will depend on a variety of State, Federal, and local funding sources. The National Housing Affordability Act, signed by the President in November 1990, creates several new major sources of funds for housing, including HOPE and HOME. In addition, several State programs have been funded which offer assistance to jurisdictions in implementing programs for affordable housing. The City of Orange will begin actively pursuing these State and federal funding sources.a. Federal Funding Sources Home Program: The HOME program was created under the National Housing Affordability Act of 1990. Under HOME,HUD will award funds to localities on the basis of a formula which takes into account tightness of the local housing market,inadequate housing, poverty, and housing production costs.HOME funding is provided to jurisdictions to assist either rental housing or homeownership through acquisition,construction, reconstruction, and/or rehabilitation of affordable housing. Also possible is tenant-based rental assistance,property acquisition, site improvements, and other expenses related to the provision of affordable housing and for projects that serve a group identified as having special needs related tn housing. The local jurisdiction must make matching contributions to affordable housing and for projects that serve a group identified as having special needs related to housing.The local jurisdiction must make matching contributions to affordable housing under HOME on the following sliding scale: 25 % local share for rental assistance or rehabilitation,33 % for substantial rehabilitation, and 50% for new construction. Homoownership of Multifamily Units (HOPE 11): Eligible applicants for this program include resident management corporations, resident councils, cooperative associations, public or private non-profit corporations, and public bodies, including public housing authorities. This program has two parts:Planning Grants:These grants are intended to help applicants develop homoownership programs such as development of resident management corporations tenant and homebuyer counseling job training planning for economic development self sufficiency activities and others.Implementation Grants: These grants may be used for activities to carry out homoownership programs in rental properties. Activities include architectural work, acquisition of eligible properties, rehabilitation of any property covered by the program,relocation oftenants who elect to move, implementation of a replacement housing plan, and others.Matching funds of 33 percent are required from non- Federal sources,and income eligibility and resale restrictions apply.HOPE for Homoownership of Single Family Homes ( HOPE llI):Eligible applicants for this program include private non-profit organizations, cooperative associations, and public agencies. Similar to HOPE II, this program has two parts:Planning Grants:These grants are intended to help applicants to develop homeownership programs, including the identification of eligible properties,feasibility studies, homebuyer counseling,planning for economic development, job training, self- sufficiency activities and others.Implementation Grants: These grants may be used for activities to carry out homeownership programs related to government single family homes. Activities include acquisition of properties, rehabilitation of properties, relocation costs, and others.Matching funds of 33 percent are required from non-Federal sources,and income eligibility and resale restrictions apply.Housing b. State Funding Sources As part of Housing Element implementation, Orange will research available state housing funding sources. The following State housing programs have been identified for evaluation: California Homeownership Assistance Program (equity sharing mortgage participation loans) California Housing Rehabilitation Program - Owner Component California Housing Rehabilitation Program - Rental Component Proposition 84 Housing Funds Proposition 77 Housing Funds California Housing Finance Agency Construction New Ave- Year Program Goal: The City will pursue the possibility of forming a consortium with other communities in Orange County to apply for HOME funds. Also, to augment the existing first time homebuyer programs in Orange, the City will pursue the possibility of applying for HOPE II and III planning or implementation moneys. The City will research identified State funding sources and evaluate which State programs would most effectively address the City's housing needs. The City will utilize its newsletter, as well as coordinate with the local chapter of BIA, to advertise funding availability to the development community.Housing Element - 80 8/93 Removal Of Governmental Constraints Under present State law, the Orange Housing Program must address, and where appropriate and legally possible, remove governmental constrains to the maintenance, improvement, and development of housing. The following programs are designed to lessen governmental constraints to housing development. 19. Zoning Ordinance: The Orange Zoning Ordinance allows a variety of housing types ranging from single family residences to high density apartments and mixed use projects. This variety in housing works towards fulfilling the housing needs of all segments of the population. The following Orange Zoning Ordinance facilitate the development and conservation of affordable housing. Provision for residential units within commercial zones Provision for second units Regulations pertaining to condominium conversions Incentives for senior housing The City's Zoning Ordinance allows for the development of multi- family residential units in the Low Medium (R-3, R-2- 6, R-2-7, R-2-8)and Medium Density (R-3 and R-4) zones. The variety of uses is utilized to establish a transition between residential and commercial uses. Commercial zoning allows for higher density multi family development in conjunction with retail commercial subject to a conditional use permit.Five- Year Program Goals: Continue to monitor the City' s Zoning Ordinance to ensure standards do not excessively constrain affordable residential development. Adopt a new revised zoning ordinance by the end of the element cycle which would establish new density bonus, criteria, second units criteria and provisions for Single Room Occupancy (SRO) Housing.20. Development Fees: Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities. While almost all these fees are assessed on a pro rata share system, they often contribute to the cost of housing and constrain the development of lower priced units. The reduction of City fees can lower residential construction costs and, ultimately, sales and rental prices.Five- Year Program Goals: In an effort to assist in the development and rehabilitation of affordable housing, the City will study the possibility of granting a partial fee waiver for project's with units set 21. Expedited Project Review and Hearing Process: A community's evaluation and review process for housing projects contributes to the cost of housing because holding costs incurred by developers are ultimately reflected in the unit's selling price. Five-Year Program Goals: The City will continue to implement a one-stop review process whereby the development review process is coordinated throughout all departments for the purpose of expediting development review. The City will also study methods of streamlining the hearing process for affordable housing projects.The City's goal is to have this process established by the end of 1993.PromoteKaual Housin!!" Oooortunities In order to make adequate provision for the housing needs of all economic segments of the community, the housing program must include actions that promote housing opportunities for all persons regardless of race, religion, sex,family size, marital status, ancestry, national origin, color, age or physical disability, More generally, the program component entails ways and means to promote equal housing opportunity.22. Fair Housing: The City of Orange contracts with the YWCA of Central Orange County to provide the service of responding to and investigating housing disputes, and claims of housing discrimination.The Dispute Resolution Center of Orange County also serves as a liaison between City residents and the State Department of Fair Employment and Housing,Five-Year Program Goals: The City will continue to contract with the Dispute Resolution Center of Orange County and Central Orange County YMCA to ensure open housing practices for all residents. The City will encourage affirmative marketing on all residential projects, and will require developers to advertise to under-represented minority groups to indicate the availability of housing units which meet affordable housing requirements. Housing Element - I 38 rI:l J o t i ..0 .. : 0 .... 0 0 . 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