Loading...
HomeMy WebLinkAboutPub Hear-Comprehensive Housing Affordability Strategy (CHAS) PUBLIC NOTICES PUBLIC NOTICES PUBLIC NOTICES PUBLIC NOTICES PUBLIC NOTICES PUBL CAS TILES PUBLIC NO CITY OF HUNTINGTON BEACH• NOTICE OF PUBLIC HEARING FOR SUMMARY OF COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY A Public hearing regarding the CHAS Annual Plan and Annual Performance Report Is scheduled for `�7� eo Date November 16 1992 Place B 8 Conference Room Huntington Beach California 92648 Time 7 30 PM Title I of the National Affordable Housing Act of 1990 requires each state and local government to prepare a strategy for addressing affordable housing nE within the community prior to receiving federal housing assistance The City of Huntington Beach will receive approximately$1 5 Million in Block Grant funds $584 000 in HOME funds The release of the 1990 Census data triggers preparation of a new five year CHAS and initiates a new five year CHAS cycle Both the structure and content of CHAS need to be revised per the Department of Housing and Urban Development (HUD) regulations Including local housing market and inventory characteris housing needs assessment and available resources Revisions also Include new components per HUD regulations including local housing market and Inven characteristics housing needs assessment and available resources Revisions also include new components per HUD regulation regarding Lead Based P (LBP) Hazard Reduction Plan that outlines actions to be undertaken over the coming five years and HUD monitoring standards and procedures The Five (5) Year CHAS includes the following •A complete description of housing needs • Market resources (human and financial) and strategies* •Investment and decision making guides for elected officials program administrators community organizations housing developers and concerned citizens The Annual Performance Report consists of two components •Describe the City s progress In carrying out the One Year Annual Plan for Fiscal year 1992/93 •An analysis of the City s one year performance in relation to meeting Its five year goals and any adjustments that will be made as a result Both the Five Year CHAS and the One Year Annual Plan include guides for investing in and improving housing conditions in local communities The final CHAS Annual Plan and Annual Performance Report will be submitted to the Federal Department of Housing and Urban Development(HUD) by Decerr 31 1993 The City of Huntington Beach views this requirement as an opportunity to assess the City s housing needs relative to the particular priorities programs resources that will best meet the affordable housino challenges ahead of us PUBLIC COMMENTS The CHAS will be available to the public for examination and comment for a thirty day period beginning November 18 1993 CopiAss of the CHAS will be avail for review at 2000 Main Street 5th floor Economic Development Department between the hours of 8 00 AM and 5 00 PM Monday through Friday and Mon through Saturday at the Huntington Beach Central Library 7111 Talbert Avenue Huntington Beach Connie Brockway,City Clerk City of Huntington Beach --ten ra--p❑-L7l 151 i e u—i n toe—�-� and Fountain Valley issues of said newspaper to wit the issue(s) of November 4, 1993 1 declare, under penalty of penury, that the foregoing is true and correct Executed on November 4 , 199 3 at Costa Mesa California Slgna`tu e I I 1 i/� I B elzl_� REQUIST FOR CITY COUNCIL A TION PAvISD 1W ®1W� WW ��G SCE P�, ED 92-59 M « — Date January 19, 1993 Submitted to Honorable Mayor and City Council Members Submitted by Michael T Uberuaga, City Administrgo Prepared by Barbara A Kaiser, Deputy City Administrator/Econom ,. Development Subject COMPREHENSIVE HOUSING AFFORDABILITY STRATEG - �1 (CHAS) ANNUAL PLAN AND ANNUAL PERFORMANCE \ REPORT Consistent with Council Pohcy9 [?C.] Yes [ ] New Policy or Exception ;s Statement of Issue, Recommendation, An tlysis, Funding Source, Alternative Action tac outs STATEMENT OF ISSUE Title 1 of the National Affordable Housing Act of 1990 requires local governments to have an approved Comprehensive Housing Affordability Strategy, (CHAS) Annual Plan and Annual Performance Report The City will receive no Federal funds without the approval of the CHAS Annual Plan and Annual Performance Report RECOMMENDATION 1 Conduct the public hearing on the CHAS Annual Plan and Annual Performance Report 2 Approve the attached Comprehensive Housing Affordability Strategy (CHAS) Annual Report and Annual Performance Report 3 Direct statt to submit all comments received from the City Council and the public during the 30 day comment period which ends December 25, 1992, to HUD with the CHAS Annual Report and Annual Performance Report A RCA ED 92-59 January 19, 1993 Page two ANALYSIS The CHAS has been prepared in response to a federal mandate The legislation requires an Annual Plan be submitted The Annual Plan is based upon the approved five-year strategy The jurisdiction will set forth a specific plan for investment or use of affordable and supportive housing funds that are expected to be available during the 1993 Federal fiscal year, goals for individuals and families to be served and describe the implementation activities and other actions to be undertaken The CHAS carries forward the recommendations of the Affordable Housing Task Force which provided policy guidance at the broadest level to all city housing programs Further, the CHAS is more specific than the Housing Element of the general plan because it focuses on implementation of programs to be assisted with federal funds Huntington Beach currently receives annually, approximately $1 4 million under Community Development Block Grant (CDBG) The City also participates in Section 8 Housing through the Orange County Housing Authority, and has received $881,000 in HOME program funds The Performance Report is a two-part document The first part, the Annual Plan, establishes priorities for the next fiscal year and the second, the Performance Report, reports on progress toward the overall five-year CHAS priorities and to discuss what actions it contemplates as a result of its annual performance The draft CHAS Annual Plan and Annual Performance Report was prepared by a consultant and reviewed by City staff, and all department heads The Citizens Advisory Board held a public hearing on the CHAS on November 19, 1992 The board members reviewed and made comments at that public hearing The CAB'S recommendations have been incorporated into the CHAS Pursuant to the City Council's direction at the meeting of January 4, 1992, the CHAS was also distributed for review to the City's Affordable Housing Task Force, Board of Realtors, Chamber of Commerce and the Orange County Housing Authority Any comments received as a result of this review will be forwarded to the City Council under separate cover in advance of the meeting of January 19,1992 The document was subject to a 30 day public review which began November 25, 1992 and ended December 25, 1992 During that period the draft CHAS was available for review at City Hall, the Central Library, and the Rodgers Senior Center The availability of the CHAS and a summary of its contents were advertised twice in two local papers The public hearing scheduled before the City Council is not required by federal law RCA ED 92-59 January 19, 1993 Page three FUNDING SOURCE None required ALTERNATIVE Amend and approve the CHAS Annual Plan and Annual Performance Report In the event the CHAS is not amended and approved the result would be that the City would not receive any federal funding ATTACHMENT CHAS Annual Plan and Annual Performance Report MTU/BAK jar 195j J� City of Huntington Beach 2000 MAIN STREET CALIFORNIA92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 536 5582 Housing 536 5542 Redevelopment 536 5582 Fax (714)375-5087 January 6 1993 John Hambuch Orange County Housing Authority 165 Morristown Lane Costa Mesa, Californa 92626 Subject Comprehensive Housing Affordability Strategy(CHAS) Dear Mr Hambuch On January 4 1993 the City Council requested that the CHAS Annual Plan and Annual Performance Report be reviewed by the Affordable Housing Task Force Committee Enclosed for your convenience is the Comprehensive Housing Affordability Strategy (CHAS) This document is scheduled for the agenda on the January 19 1993 Council meeting Please review and forward any comments to the Economic Development Department, Attn Lisa Moreno no later than January 13 1993 Sincerely Lisa J Moreno Housing Finance Specialist LJM jar REQ RST FOR CITY COUNCIL APTION --I� /// 9/9 3 ED 92-59 P of' Date January 4 1993 �- 6 Submitted to Honorable Mayor and City Council Members Submitted by Michael T Uberuaga, City Administrator Prepared by Barbara A Kaiser, Deputy City Administrator/Economic Development Subject COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL PLAN AND ANNUAL PERFORMANCE REPORT Consistent with Council Policy' M Yes [ 1 New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments STATEMENT OF ISSUE Title 1 of the National Affordable Housing Act of 1990 requires local governments to have an approved Comprehensive Housing Affordability Strategy, (CHAS) Annual Plan and Annual Performance Report The City will receive no Federal funds without the approval of the CHAS Annual Plan and Annual Performance Report RECOMMENDATION i 1 Conduct the public hearing on the CHAS Annual Plan and Annual Performance Report 2 Approve the attached Comprehensive Housing Affordability Strategy (CHAS) Annual Report and Annual Performance Report 3 Direct staff to submit all comments received from the C ' Council and the public during the 30 day comment period which ends December 25, 1992, to HUD with the CHAS Annual Report and Annual Performance42-eport ANALYSIS Huntington Beach currently receives annually, approximately $1 4 million under Community Development Block Grant (CDBG) The City also participates in Section 8 Housing through the Orange County Housing Authority, and has received $881,000 in HOME program funds RCA ED 92-59 December 21, 1992 Page two The CHAS has been prepared in response to a federal mandate The legislation requires an Annual Plan be submitted The Annual Plan is based upon the approved five-year strategy The jurisdiction will set forth a specific plan for investment or use of affordable and supportive housing funds that are expected to be available during the 1993 Federal fiscal year, goals for individuals and families to be served and describe the implementation planning the activities and other actions to be undertaken The Performance Report is a two-part document The first part, the Annual Plan, establishes priorities for the next fiscal year and the second, the Performance Report, reports on progress toward the overall five-year CHAS priorities and to discuss what actions it contemplates as a result of its annual performance The draft CHAS Annual Plan and Annual Performance Report was prepared by a consultant and reviewed by City staff, and all department heads The Citizens Advisory Board held a public hearing on the CHAS on November 19, 1992 The board members reviewed and made comments at that public hearing The CAB'S recommendations have been incorporated into the CHAS There were no public comments received The document is subject to a 30 day public review which began November 25, 1992 and ended December 25, 1992 During that period the draft CHAS was available for review at City Hall, the Central Library, and the Rodgers Senior Center The availability of the CHAS and a summary of its contents were advertised twice in two local papers FUNDING SOURCE None required ALTERNATIVE Amend and approve the CHAS Annual Plan and Annual Performance Report In the event the CHAS is not amended and approved the result would be that the City would not receive any federal funding ATTACHMENT CHAS Annual Plan and Annual Performance Report MTU/BAK jar 195j PUBLIC NOTICES PUBLIC NOTICES PUBLIC NOTICES CITY OF HUNTINGTON BEACH NOTICE OF PUBLIC HEARING FOR SUMMARY OF COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY A Public Hearing regarding the CHAS Annual Plan and Annual Perform ance Report is schedule for ,, Date , _).jj► u,-Y � /—1-) c h��b Place Huntington Beach, California 92648 e p�' wh ' �r-�r, Time 7 00 PM a�r1 1 The federal government has established a requirement that each state j and local government must prepare a strategy for addressing affordable housing needs within the community, prior to receiving federal housing assistance Huntington Beach receives approximately $14 Million in Block Grant funds and received approximately $881 000 in HOME funds. To comply with this law the City has completed a draft Fiscal Year 199� Comprehensive Housing Affordability Strategy (CHAS) Annual Plan and an Annual Performance Report The final (CHAS) Annual Plan and Annual Performance Report will be submitted to the Federal Department of Housing and Urban Development (HUD) by December 31 1992 The City of Huntington Beach views this requirement as an opportunity to assess the City s housing needs relative to the particular priorities programs and resources Which will best meet the affordable housing { challenges ahead of us CONTENT 1 Annual Plan is based upon the approved five year strategy, the jurisdiction will set forth a specific plan for investment or use of affordable and supportive housing funds that are expected to be available during the 1993 Federal fiscal year, determine goals fo( individuals and families to be served and describe the Implementation plan guiding the activities and other actions to be undertaken ' I 2 Performance Report The Annual Performance Report is a two part document The first part is designed to report on progress in carrying out the CHAS One Year Action plan The second part is designed to prov►da the jurisdiction and opportunity to assess its annual performance in relax t►onship to meeting its overall five year CHAS priorities and objectives) and to discuss what actions or changes it contemplates as a result of its 4 annual performance a 3 I HOUSING STRATEGY PRIORITIES = l The City of Huntington Beach has established the following affordably housing priorities for the next five years f Expand the housing stock for all segments of the community, particularly the lower income households i 2 Rehabilitate the City s existing single family and multi family housing stock in order to preserve the City s neighborhoods 3 Provide supporf►ve housing needs assistance for the at risk population 0 4 Provide opportunities for home ownership for low/moderate income residents particularly first time home buyers throug4 private projects and funding sources 5 Provision and Preservation of Special Needs housing especially for` large families and the elderly r 6 Ensure that persons displaced by Redevelopment activities receive j financial assistance and replacement units on a one for one basis" and that new units are produced in Redevelopment project areas as required by the California Health and Safety Code j y PUBLIC COMMENTS The CHAS will be available to the public for examination and commeh4 for a thirty day period beginning November 25th 1992 Copies of the' CHAS will be available for review at 2000 Main Street 5th floor Economic Development Department between the hours of 8 00 AM and 5 00 PM Monday through Friday and Monday through Saturday at the- Huntington Beach Central Library 7111 Talbert Avenue Huntington Beach 112 530 i I PUBLIC NOTICE I PUBLIC NOTICE I PUBLIC NOTICE ITY OF HUNTING SON BEAC NOTICE OF PUB , HEARING FOR SUMMARY OF COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY A Public Hearing regarding the CHAS Annual Plan and Annual Perform s ance Fleport is schedule for Date January 4 1993 STATE OF CAUFORNIA - C Place City of Huntington Beach Council Chambers 2000 Main St Huntington Beach California 92648 -- * Time 7 00 PM r. County of Orange r The federal government has established a requirement that each stat( it and local government must prepare a strategy for addressing affordabl( housing needs within the community prior to receiving federal housinc i assistance Huntington Beach receives approximately $1 4 Million it I am a Citizen of the United States and a R Block Grant funds and received approximately$881 000 in HOME funds resident of the County aforesaid, I am over the t To comply with this law the City has completed a draft Fiscal Year 199 age of eighteen years, and not a party to or 1 Comprehensive Housing Affordability Strategy (CHAS) Annual Plan anc F an Annual Performance Report The final (CHAS) Annual Plan and Annua interested in the below entitled matter I am a Performance Report will be submitted to the Federal Department o principal eierK or the t-iUNTINGTON BEACH t Housing and Urban Development (HUD) by December 31 1992 The City of Huntington Beach views this requirement as an opportunity tc INDEPENDENT, a newspaper of general assess the Citys housing needs relative to the particular priorities circulation, pnnted and pubrished in the City of ISO programs and resources which will best meet the affordable housmc challenges ahead of us Huntington Beach, County of Orange, State of coNTges CaGfomia, and that attached Notice is a true and L 1 Annual Plan is based upon the approved five year strategy the complete copy as was printed and published in r jurisdiction will set forth a specific plan for investment or use o affordable and supportive housing funds that are expected to be the Huntington Beach and Fountain Valley ° available during the 1993 Federal fiscal year determine goals foi F individuals and families to be served and describe the implementatior issues of said newspaper to wit the issue(s) of plan guiding the activities and other actions to be undertaken '— 2 Performance Report The Annual Performance Report is a two pan document The first part is designed to report on progress in carrying oul the CHAS One Year Action plan The second part is designed to provide the jurisdiction and opportunity to assess its annual performance In rela tionship to meeting its overall five year CHAS priorities and objectives December 24, 1992 and to discuss what actions or changes it contemplates as a result of it I annual performance HOUSING STRATEGY PRIORITIES The City of Huntington Beach has established the following affordable housing priorities for the next five years 1 Expand the housing stock for all segments of the community particularly the lower income households 2 Rehabilitate the City s existing single family and multi family housing stock in order to preserve the City s neighborhoods 3 Provide supportive housing needs assistance for the at risk population 4 Provide opportunities for home ownership for low/moderate { income residents particularly first time home buyers through private projects and funding sources 5 Provision and Preservation of Special Needs housing especially for large families and the elderly I declare, under penalty of perjury, that the 6 Ensure that persons displaced by Redevelopment activities receive foregoing is true and correLt financial assistance and replacement units on a one for one basis and that new units are produced in Redevelopment project areas as required by the California Health and Safety Code Executed on December 24 199 PUBLIC COMMENTS at Costa Mesa, California The CHAS will be available to the public for examination and comment for a thirty day period beginning November 25th 1992 Copies of the CHAS will be available for review at 200%. Main Street 5th floor Economic Development Department between the hours of 8 00 AM and Si nature �' 5 00 PM Monday through Friday and Monday through Saturday at the g Huntington Beach Central Library 7111 Talbe-t Avenue Huntington Beach Published Huntington Beach Independent December 24 1992 124 715 PROOF OF PUI 4u �� I A January 13, 1993 rT � W u < Ms Lisa J Moreno, Housing Finance Specialist Department of Economic Development 2000 Main Street Huntington Beach, CA 92648 Subject Comprehensive Housing Affordability Strategy Dear Lisa Thank you for taking the time to review the CHAS 1991-92 Annual Performance Report and 1992-93 Annual Plan with the Chamber members We understand that these reports are primarily for review by HUD as a means of monitoring the City's expenditures of federal housing assistance grants and many of the questions we raised regarding the 1991-92 Annual Performance Report were answered at our meeting Most of our comments are aimed at the City's annual and five-year plans for meeting the community's housing goals Investment Plan Prionties While we do not disagree with the priorities listed, we feel that maintenance and rehabilitation of the City's abundant and maturing housing stock is of paramount importance in preserving housing affordability and may be the most effective expenditure of public funds We are pleased to see an aggressive plan for rehabilitation projects and would encourage continued efforts in this area We also support the planned expenditures to expand the affordable housing stock by assisting new construction projects, however we feel that there are many additional Incentives the City can offer to facilitate the construction of affordable housing without the additional expenditure of public funds (see Public Policies below) Now Con ruQ Qn-iR. 111-3) As mentioned above we urge the City to broaden the types of incentives offered 2100 Main Street,Suite 200 -- Huntington Beach,CA 8264a 7141536 8888 (FAX}714l960 7654 - I - PN F • • to enhance the feasibility of Incorporating affordable units In new construction In addition to the density bonus ordinance,the City should consider modified development standards, reduced fees and exactions, or other incentives to assist in lowering the cost of new construction Second Unit Ordinance (p 111-5} We feel that the ordinance allowing second units would be more effective in expanding the housing stock ff the requirement for Planning Commision approval of a conditional use permit were eliminated, and such approval could be handled administratively, subject to specific criteria Rental Rehabilitation (p III--8 We strongly support the City's aggressive plan to rehabilitate existing rental units In order to protect its investment, we would recommend that the City require owners of units receiving rehabilitation grants to provide onsite or professional management and establish an ongoing operations and maintenance fund to prevent recurring deterioration Code Enforcement (y 111-10} We strongly support continued or enhanced expenditures in the area of code enforcement as a means of preserving neighborhoods and preventing deterioration of the City's housing stock Citywide Incluslonary Ordinance (p 111-18) This section does not accurately reflect the actions of the City Council in responding to the report prepared by the City Council-appointed Affordable Housing Task Force The Task Force recommended that the City adopt a comprehensive package of ordinances to enable ten percent of all new housing constructed to be made available to households of low and moderate income The comprehensive program is to include not only the ten percent "inclusionary" requirement but also a number of incentives to be provided as well as the determination of an appropriate in-lieu fee for small projects The twenty percent requirement suggested for development agreements, general plan amendments, and zone changes was not endorsed by the City Council as stated To date, no comprehensive program of ordinances has been adopted and the policy has not been implemented We urge the City to refocus its attention on this Issue so that the guidelines for new housing construction are clear ill -1 —a3 _ 1 D F M F l We appreciate the opportunity to comment on the Comprehensive Housing Affordability Strategy and ask that our concerns and suggestions be addressed In the City's plans and strategies for the current and future years Sincerely, Stephen K Bone Chairman of the Board cc City Council Barbara Kaiser 1 F P( F i.4 • WALOWEr- I&= ASSOCIATION of REALTORS" 8101 Slater Avenue Hurtttrrgtott Bench CA 92047-6924 (714)847 bO94 FAX(714)8413375 January 14, 1993 Mayor Grace Winchell and z Members of the City Council City of Huntington Beach u, 2000 Main Street = Huntington Beach,CA 92648 m w r,r,� Honorable Mayor and Councnimembers Thank you for the opportunity to review the 1992/93 Comprehensive Housfg z�; Affordability Strategy Annual Plan prior to submission to HUD Several members of our Association met with Deputy City Administrator Barbara Kaiser and staff on Wednesday, January 13, to review this important document and we are pleased to offer the following observations Pleased be assured that we recognize that this document is untended to report- rather than create,policy, however, we have included our feelings on policy issues with which we agree or disagree for the record As a general comment, we are pleased to see that the City is actively pursuing the expenditure of its Redevelopment Set-Aside funds for housing programs and projects As you know there is a great deal of public concern with regard to the lack of expenditure by some agencies while the need for affordable housing continues to increase This is an area of concern to our Association and one which we will continue to monitor In general, we concur with the priorities recommended by staff for expenditure of these funds We also encourage you to continue to provide funds and programs for the rehabilitation of existing housing units As the city's housing stock ages this will continue to be a priority We would like to make several additional recommendations and comments on specific iten7s in the proposed Plan Page III-3, Program 1A New Construction We suggest that sentence one be modified to make it consistent with the recommendations of the city's Affordable Housing Task Force It should read 'Huntington Beach plans to utilize Redevelopment Set-Aside Funds in co Sum tion with modified development st,indards and other incentives to facilitate the development of affordable housing in the City ' (Correctiors are underlined ) Page III-5, Program 1B Second Unit Ordinance We were actively involved in the original development of the city s Second Unit Ordinance and note for the record that very few applications have ever been submitted which is consistent with the experience of other communities throughout the State It is our position that the current ordinance contains very adequate provisions to protect the integrity of our single Punily neighborhoods and we would therefore recommend that the city policy be changed to pemut applications submitted in coTnpli.aace with the ordinance to be approved without a conditional use permit rn PAT PAW K Ptesldt tit LULILLE HARMON' Fu t Vice i re i eni N At\NEPUGH St con IIi ePre i� ji! JOHN'C LOUCIIEN S cretRty/Tres it r '�� L•� Lkrcctors FLORI-M.F BELL JOHN I=PATR1C k J0E LIC H1MLti JIM M LAUC HI N AN7.iUNY CHRI Sf£h3EA �••••J- WILL L WOODS F.2eC411N LIu PIc Ill tit JUDITH A LLc.,I'\' Viie Prc idea iPuT lu 11patr5 JHIY-15-y.J tKl 14 G5 Hblt'V HbbN Ut KtHLIUKb I HA NU b41Jd15 t Ui� • • Huntington Beach/Fountmn Valley Assn of REALTORS& Comments on CHAS Page 2 Page 111-7, Program 2A Owner Occupied Rehabilitation We are pleased to see that below-market rate loans are available for rehabilitation of owner- occupied housing We would like to suggest that the city make these loans available to residents whose homes are affected by expansive soil There are a few neighborhoods where this is definitely a problem and we certainly believe that this falls within the definition of a "condition which is detrimental to public health and safety " We would be pleased to discuss this further with you or staff Page I1I 8, Program 213 Rental Rehabilitation We are pleased to note that funds are being made available to owners of rental property to assure that appropriate living standards are maintained We suggest that the city pursue a formal agreement with these property owners,as part of the loan agreement,which would specify the standards to be maintained This should assure compliance without the necessity for continuous and time-consuming code enforcement Page III-10, Program 2D• Increased Leveraging of Private Resources We note that the city intends to.increase the level of financial commitment by the private sector, and would be pleased to supply the city with a list of lenders with whom we work to see if they might be of service to you Page I11.11, Program 2F Monitor Marginal Neighborhoods We are pleased to see that the city is interested m surveying the housing stock, but note that it will take a year for this survey to be accomphshed by city staff We believe this task might be done much more quickly by our membership, and would be pleased to discuss this further if you wish our assistance with this project. Page IH-17, Program 4A Financial Assistance for First-Time Homebuyers, Program 4B• Shared Equity Program, and Page III-18, Program 4C Mortgage Credit Certificate Program We are pleased to note that the city intends to pursue these programs in the coming year Again, we offer our assistance and expertise in developing these programs Page III-18, Program 4D City Wide Inclusionary Housing Ordinance We are adamantly opposed to implementation of this recommendation and will be working with you and your staff to explain our concerns Inclusionary zoning is an onerous unfair progr,im which has a long history of figlum in other comrnunitlesf In addition, there is an error in pargraph two The recommendation of the Affordable Housing Task Force which was adopted by the city council in June, 1992, stated that only 10%- not 20%- of the units were required to be set aside as afforable housing That percentage had nothing to do with development agreements general plan amendments or zone changes It was simply TEN percent � .. .... �v IU tip✓ v L L Vllal 111/1 1 V U`11JJ J 1 VJ Hununglon Beach/Fountain Valley Aaan of REALTORS@ Comments on CHAS Page 3 Page VI 6, Potential for SRO Developments in the City We applaud the city for being the first in Orange County to pass an SRO ordingnce and we hope that you will actually be able to develop an SRO as described on this page Again, thank you for giving us the time to review this important document which demonstrates your commitment to housing for all segments of our population Our Association shares that commitment and is ready to assist you in any way possible Please do not hesitate to call upon us Sincere v, Pat Paulk President cc M2chael Uberuaga, City Adnunistrator Ray Silver,Assistant City Admicustrator Barbara Kaiser, Deputy City Adnunistrator PP/JAL CHASTAnnu r al Plah fo, * .c 1-Y6 '9 a . ar 92193 � City of Huntington Beach c to 0 S5 1 1 1 1 1 1 1 i i 1 1 rdbd � 1 i CHAS Appe B US Department of tiWing and Urban Development Cover Sheet Office of Community PlaW and Development Comprehensive Housing Affordability Strategy (CHAS) iInstructions for Local Jurisdictions Jame U Jurisdiction Type of Submission (mark one) New Five Year CHAS (enter fiscal yrs) City of Huntington Beach FY through FY Name of Contact Person Telephone No I Stephen Kohler (714) 536-5582 X1 Annual Plan 1992/1993 Lisa Moreno forFY Address (mark one) Department of Economic Development Initial Submission 2000 Main Street, 5th Floor XO Resubission of Disapproved CHAS Huntington Beach CA 92648 1 1 tY � i ' The Jurisdiction HUD Approval Name of Authorized Otricial Name of Authorized official �N Signature 8 Date Signature 3 Date i X X M` form HUD40090 (9/9� CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL PLAN FOR FISCAL YEAR 1992/93 December 28, 1992 1 Prepared by City of Huntington Beach Department of Economic Development with Assistance from ' Cotton/Beland/Associates, Inc 747 East Green Street, Suite 400 Pasadena, California 91101 74900 ' CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ' ANNUAL PLAN FY 1992/93 TABLE OF CONTENTS Page I INTRODUCTION I-1 ' II SUMMARY OF CHAS DEVELOPMENT PROCESS II-1 III STRATEGY IMPLEMENTATION III-1 A. INVESTMENT PLAN - IMPLEMENTING PROGRAMS AND ACTIVITIES III-1 Priority # 1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower Income Households III-3 0 Housing Activities/Programs and Resources o Matching and Leveraging Requirements 0 Support of Applications for Funding by Other Entities ' Priority #2 Rehabilitate the City's Existing Single-Family and Multi-Family Housing Stock in order to Preserve the City's Neighborhoods 111-7 j0 Housing Activities/Programs and Resources 0 Matching and Leveraging Requirements 0 Support of Applications for Funding by Other Entities Priority #3 Provide Supportive Housing Needs Assistance for "At-Risk" Population III-13 • Housing Activities/Programs and Resources 0 Matching and Leveraging Requirements • Support of Applications for Funding by 1 Other Entities Huntington Beach Table of Contents CHAS Annual Plan 1 December 28, 1992 TABLE OF CONTENTS Page Pnonty #4 Provide Opportunities for Homeownership, for Low/Moderate Income Residents, Particularly for 1 First-Time Homebuyers Through Private Projects and Funding Sources III-17 • Housing Activities/Programs and Resources o Matching and Leveraging Requirements o Support of Applications for Funding by Other 1 Entities Priority #5 Provision and Preservation of Affordable Housing for ' Residents with Special Needs, Especially for Large Families and Elderly III-20 • Housing Activities/Programs and Resources o Matching and Leveraging Requirements o Support of Applications for Funding by Other Entities Priority #6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project Areas as Required by the California Health and Safety Code III-23 o Housing Activities/Programs and Resources • Matching and Leveraging Requirements 0 Support of Applications for Funding by Other Entities 'Table 3A Table 3B B GEOGRAPHIC DISTRIBUTION OF RESOURCES III-30 C SERVICE DELIVERY SYSTEM III-30 Huntington Beach Table of Contents 1 CHAS Annual Plan 11 December 28, 1992 1 � � TABLE OF CONTENTS Page IV OTHER ACTIONS IV-1 ' A. PUBLIC POLICIES IV-1 B INSTITUTIONAL STRUCTURE IV-2 C PUBLIC HOUSING IMPROVEMENTS IV-3 iD PUBLIC HOUSING RESIDENT INITIATIVES IV-3 E CERTIFICATIONS IV-4 i SUMMARY F CITIZEN COMMENTS V-1 V SUM O iVI APPENDIX VI-1 iA. GLOSSARY VI-1 B AMENDMENT TO THE CHAS FIVE-YEAR PLAN VI-4 i i i i 1 i t Huntington Beach Table of Contents CHAS Annual Plan 111 December 28, 1992 I INTRODUCTION Title I of the National Affordable Housing Act established the requirement that ' States and local governments that apply for direct assistance under certain HUD programs have a Comprehensive Housing Affordability Strategy (CHAS) approved by HUD ' The CHAS is a comprehensive planning document that identifies a jurisdiction's overall needs for affordable and supportive housing and outlines a strategy to ' address those needs The Act requires each local jurisdiction to o describe its housing needs and market conditions, ' o set out a five-year strategy that establishes priorities for meeting those needs, ' • identify resources anticipated to be available for the provision of affordable and supportive housing, and o establish a one-year investment plan that outlines the intended uses of resources The CHAS replaces the Housing Assistance Plan (HAP) required for Community Development Block Grant (CDBG) Program funding and the Comprehensive Homeless Assistance Plan (CHAP) required by the McKinney Homeless ' Assistance Programs The National Affordable Housing Act also requires jurisdictions that submitted a full five-year CHAS for Fiscal Year 1992 must submit an annual plan (one-year action plan) for Fiscal Year 1993 Submission of the annual plan for Fiscal Year 1993 to HUD must be made by October 1, 1992 but no later than December 31, 1992 The Huntington Beach CHAS Annual Plan for Fiscal Year 1993 is based upon ' the City's HUD-approved five-year strategy This Annual Plan sets forth a specific strategy for expenditure of housing funds expected to be available during the next fiscal year, including goals for households to be served, and an implementation plan to guide activities to be undertaken 1 Huntington Beach Introduction CHAS Annual Plan 1_1 December 28, 1992 ' II SUMMARY OF CHAS DEVELOPMENT PROCESS 1 The Huntington Beach Econonuc Development Department took the lead on ' behalf of the City in preparing the City's CHAS Annual Plan for Fiscal Year 1993 The Community Development Department also provided input regarding housing activities for which they are responsible, including residential rehabilitation, neighborhood revitalization, the HOME program, and the housing element Consistent with Federal requirements, the City provided numerous opportunities for public input to formulation of the City's housing strategy, including the following 1 Public Hearing The City properly advertised and conducted a public hearing on November 19 1992 at 7 00 PM in the Boys and Girls Club located adjacent to the Civic Center ' 2 Public comment period Pursuant to the CHAS citizen participation guidelines, copies of the proposed CHAS Annual Plan were made available for public review and comment from November 25th to December 24th, 1992 A summary of the proposed CHAS Annual Plan for FY 1993 was published in the Los Angeles Times and Orange County ' Register and was made available in the following public places 0 Economic Development Department 0 Community Development Department ' 0 City Clerk s Office 0 Central Library 0 Chamber of Commerce o Roger's Senior Center 3 Access to records Reasonable access regarding the use of housing funds ' in the City are generally available at the City's Community Development Department and Economic Development Department Huntington Beach Summary of CHAS Development Process ' CHAS Annual Plan II-1 December 28, 1992 ' • 0 III STRATEGY IMPLEMENTATION A. INVESTMENT PLAN - IMPLEMENTING PROGRAMS AND ' ACTIVITIES The CHAS Annual Plan requires the City to evaluate each general housing priority identified in the City's Five-Year CHAS to be implemented during the 1993 Federal fiscal year This section of the CHAS Annual Plan constitutes an "Investment Plan" which establishes the following items o Housing activities to be undertaken, 0 Programs and resources to be pursued, 0 Categories of residents to be assisted by tenure type, household size, and income level, including homeless and non-homeless persons with ' special needs, o Plans for fulfilling matching requirements and leveraging private and non-Federal fund with Federal funds, and o Support of applications for funding by other entities Specific programs are described under each priority This discussion also includes identification of activities to be undertaken, resources to be pursued, as ' well as categories of residents to be assisted Following this discussion of programs, plans for fulfilling matching/leveraging requirements and support for local funding applications are described for each priority Table 3A at the end of this section summarizes the planned uses of resources during the coming year Table 313 categorizes the City's annual housing goals for according to residents to be assisted by income, tenure, and household size Only units to be completed or rehabilitated with the involvement of federal funds, and households to be assisted with federally-funded services that will directly lead to the obtainment of affordable housing, including shelter accommodation, are included in Table 313 For the purpose of CHAS plans, HUD has established the following income categories 0 Very Low Income (0-30 percent of Area Median Family Income) o Very Low Income (31-50 percent of Area Median Family Income) 0 Low Income (51 - 80 percent of Area Median Family Income) ' 0 Moderate Income (81-95 percent of Area Median Family Income) 0 Middle Income (96-120 percent of Area Median Family Income) Huntington Beach Strategy Implementation CHAS Annual Plan III-1 December 28, 1992 • 0 1 The 1992 HUD-established median family income for Anaheim-Santa Ana area is $52,700 For this Annual Plan, Middle Income category has been combined ' with Moderate Income category to include households earning between 81 and 120 percent of the area median family income ' The order of housing priorities from the City's Five-Year CHAS has been reorganized based on the relative importance of each ' Discussion of geographic allocation of resources and the City's service delivery system is consolidated for all priorities and follows the Investment Plan Huntington Beach Strategy Implementation CHAS Annual Plan III-2 December 28, 1992 ' • Priority #1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower Income Households Huntington Beach plans to assist several affordable developments during the coming fiscal year using Redevelopment Set-Aside funds However, only one of these projects, which consists of 48 units, is anticipated to be completed during the time frame of this Annual Plan The targeted breakdown of these units to be assisted is as follows 8 very low income (0-3007o of County median), 8 very low income (31- ' 50010 of County median), 16 low income low income, and 16 middle income Of these, 32 units will be rental units for lower income elderly households 1 Also, HOME funds are allocated to create one large and three small units for four renter households Three projects to be assisted by the City using a variety of funding sources during Fiscal Year 1993, including those by the Habitat for Humanity and Orange County Community Housing Corporation, are targeted for very low income households This segment of the population is usually more vulnerable to increases in housing costs or sudden loss of income, and therefore experience a high risk of becoming homeless The City will continue to provide Section 8 rental assistance to 764 very low income households in the City The household size breakdown is as follows 213 elderly households, 355 small families and 196 large families It can generally be estimated that half of these households earn less than 30010 of the County median income, and half earn between 30-50010 of median income Only those units that will be assisted with federal funds are included in Table 3B ' Housing Activities/Programs and Resources Program IA New Construction Huntington Beach plans to utilize Redevelopment Set-Aside funds in conjunction with density bonus incentives to facilitate the development ' of affordable housing in the City Redevelopment Set-Aside monies may be used to write down the cost of land for low and middle income 1 Huntington Beach Strategy Implementation 1 CHAS Annual Plan 1113 December 28� 1992 t • • housing, so that it becomes economically feasible for a private developer to build units which are affordable to low and middle income households As part of the land waste-down program, the City may also assist in acquiring and assembling property and in subsidizing on-and off-site improvement costs ' Approximately $2,605,000 of the City's Redevelopment set-aside fund will be allocated during the Federal Fiscal Year 1993 to assist in the development of affordable housing to lower and middle income households The following list identifies projects to be assisted by the Redevelopment Agency through direct loans and grants, land assemblage and/or write-down, and density bonus incentives during Fiscal Year 1993 although only the first project is projected to come on line during the next year o Five Points Senior rillas (18651 Ronda). S750.000 - 164 unit senior rental project of which Agency is participating through loan and grants for 48 units counted towards Main-Pier replacement housing ' needs (30 year) Among the 48 affordable units, 16 units will be set aside for very low income households, 16 units for low income, and 16 units for middle income All units are for small elderly ' households This project is currently under construction and assisted units will come on line during the coming fiscal year 0 7902 Ronald Road. S280,000 - The City will assist Habitat for Humanity in construction and/or land write-down for a four-plex development for very low income households The project will provide home ownership of two units for small families and two units for large families 0 Third Block West (100 Main. Main Pier Protect Area). S825.000 - Agency participation in the development of a 68-unit condominium project with 33 units reserved for middle income first time buyers under the Second Trust Deed program 0 Seaview 1 (10824 Jolly Lane, Talbe Beach Project Area). S750.000 - Agency participation in the development of an 88-unit for sale ' project, 25 units will be affordable to middle income households through the First-Time Buyer and Second Trust Deed Program ' Residential development projects to be assisted with public funds will be required to advertise available affordable units to the general public Huntington Beach Strategy Implementation ' CHAS Annual Plan III-4 December 28, 1992 Huntington Beach is an eligible participant of the HOME Investment Partnership Act and received an entitlement of $881,000 for the 1992 ' federal fiscal year Of this entitlement, $426,150 has been allocated to assist the Orange County Community Housing Corporation in the construction and/or land write-down for four rental units for very low income households during the coming year This project will provide affordable housing for one large and three small family households ' Furthermore, $220,850 of the HOME fund has been set aside for a Community Housing Development Organization (CHDO) to create low-income housing in the City The City is in the process of selecting a CHDO Requests for Qualification (RFQ) will be sent to several non-profit housing organizations, including Habitat for Humanity, Orange County Community Housing, Shelter for the Homeless, and Barrio Housing The City will also advertise the RFQ in local newspapers Program 1 B Second Unit Ordinance Huntington Beach has amended its zoning ordinance by adding a new subsection pertaining to second units in single-family residences A second unit may be added to an existing single-family structure subject to standards within the ordinance This ordinance can provide a cost effective means of providing additional development through the use of ' existing infrastructure and should provide relatively affordable housing for low and noddle income small households within existing under- utilized structures However, applications for second units currently ' require a Conditional Use Permit Program IC Section 8 Rental Assistance The Section 8 rental assistance program extends rental subsidies to very low income families and elderly who spend more than 30 percent of their income on rent The subsidy represents the difference between the excess of 30 percent of their monthly income and the actual 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 in the certificate program, voucher recipients are permitted to ' rent units beyond the federally determined fair market rent in an area provided the tenant pays the extra rent increment Huntington Beach contracts with the Orange County Housing Authority to administer the Federal Section 8 Certificate/Voucher Program Currently 764 very low income households in Huntington Huntington Beach Strategy Implementation CHAS Annual Plan III-5 December 2$ 1992 9 0 tBeach are assisted under the Section S certificate and voucher programs Of these 764 households receiving rental assistance, 213 are ' elderly households, 355 are small families and 196 are large families The City's goal will be to maintain this level of assistance for the coming year ' Matching and Leveraging Requirements All matching requirements on the HOME funds for Fiscal Year 1992 have been waived by Congress and the President However, the Redevelopment Set-Aside fund could be used to leverage HOME monies for new construction Support of Applications for Funding by Other Entities The City will be supportive of direct applications for funds by local CHDOs and other entities, including Habitat for Humanity and Orange County Community Housing Corporation However, under the following special circumstances the City would need to consider the appropriateness of the funding application o the project requires a zone change that is not consistent with its surrounding land uses or with the City's land use policy, ' o the CHDO soliciting support is not from the local community and has not established a reputation in the affordable housing field, and/or o density bonus requested by the project exceeds the State requirement and may result in development which is incompatible with the character of the surrounding area r Huntington Beach Strategy Implementation CHAS Annual Plan III-6 December 2$ 1992 0 Priority #2 Rehabilitate the City's Existing Single-Family and Multi-Family Housing Stock in order to Preserve the City's Neighborhoods The City's annual rehabilitation goal is to assist 304 units through ' Redevelopment Set-Aside, CDBG, and HOME funds The targeted income breakdown is as follows 96 very low income (0-3007o of County median income), 87 very low income (31-5007o of County median income), 63 low income, and 58 middle income Among the 246 units targeted for lower income households, the goal will be to achieve 199 renter households and 47 owner-occupied households Also, of these lower income units, 60 units will be for large households and 186 for ' small households, including 67 in SROs Only those units that will be rehabilitated using CDBG and HOME funds are included in Table 313 Housing Activities/Programs and Resources Program 2A Owner Occupied Rehabilitation ' The City's Housing Rehabilitation Loan Program through the use of Community Development Block Grant program income, provides rehabilitation funds to qualified owner-occupants The program is designed to assist households with lower incomes on a citywide basis and households with very low, low, median and above median incomes in designated rehabilitation target areas The program provides two forms of financial assistance - below market rate interest (BMRI) loans or deferred payment loans The maximum loan amount for BMRI loans is $15,000 per property The interest rates for participants are as follows • 3010 BMRI loans available to families with very low and low incomes on a citywide basis • 607o BMRI loans available to families with median incomes Activities will be limited to the extent necessary to eliminate specific conditions detrimental to public health and safety Loans are available on a city-wide basis i Huntington Beach Strategy Implementation CHAS Annual Plan III-7 December 28, 1992 1 s • 1 0 807o BMRI loans available to families with above median incomes Activities will be limited to the extent necessary to eliminate 1 specific conditions detrimental to public health and safety Loans are available on a city-wide basis ' The maximum loan amount for a deferred payment loan is $8,500 citywide with up to $10,000 available to units in a rehabilitation target areas Units to be rehabilitated must have been owned and occupied by the applicant at least one year prior to the date of application for a loan 1 All funds must first be used to eliminate building code violations Remaining funds may then be used for improvements resulting in substantial weatherizing and energy conservation, improvements to 1 major systems in danger of failure (such as heating and plumbing), roofing, exterior painting, pest treatments, and floor coverings New construction or room addition will be allowed only when overcrowding exists, all improvements must be physically attached to the property ' and permanent in nature The scope of work is reviewed and approved prior to funding the loan 1 CDBG funds will be available for making low interest and deferred interest loans to qualified low and moderate owner-occupied single- family units within targeted areas of the City Low income owner- occupants of other types of housing are also eligible for assistance Approximately $372,718 CDBG monies will be available for rehabilitating 24 owner-occupied properties during the coming Federal 1 fiscal year Approximately $234,000 of HOME funds will be used to rehabilitate 1 owner-occupied mobile homes through the City's Owner-Occupied Rehabilitation program An estimated 23 deferred payment loans will be made available for mobile homes occupied by very-low income (50 ' percent or below area median) property owners during the coming year 1 Program 2B Rental Rehabilitation The City's Multi-family Rental Rehabilitation Program is designed to ' maintain and improve the affordable rental housing stock and to otherwise assure that a decent, safe and sanitary living environment can be obtained for very low and low income renter households The ' program also attempts to reduce household overcrowding The program operates on a citywide basis, however priority is given to projects located in the Oakview and Florida/Yorktown Target Areas Huntington Beach Strategy Implementation 1 CHAS Annual Plan III-8 December 2S, 1992 Through the rental rehabilitation program, the City has provided up to 5007o of the costs of rehabilitation The City's contribution is a ' combination of below market interest (6070) loans for 5007o of the costs and another 50070 of the costs in deferred payment loans which require no payments to be made, no accrual of interest and no fees until such ' time as the rental property building is sold or title transferred The property owner must "match" these public funds by securing private financing for the remaining 50070 of total rehabilitation costs Property ' owner requirements have included responsible ongoing property management, proper long term property maintenance and avoidance of housing overcrowding ' The City will focus rental rehabilitation efforts in the future on the Oakview, Florida-Yorktown and Amberleaf Circle neighborhoods, particularly for investor-owned multi-family properties which can be ' rehabilitated at a modest per unit cost An Area Task Force for the purpose of developing strategies to ' combat crime and drug trafficking was established for the residential neighborhood bounded by Beach Boulevard, Utica Avenue, Florida Street, and Yorktown Avenue A section of this neighborhood was ' designated a neighborhood enhancement area by HUD in 1990 so that CDBG funds could be used for housing, rehabilitation, and public improvements Also, the CDBG-funded Operation LOGOS program has also been active in the area for emergency cleanups of trash and graffiti Operation LOGOS will receive $128,000 in CDBG funds for Fiscal Year 1992-93 ' Approximately $2,313,350 in CDBG and Redevelopment Set Aside funds will be available to rehabilitate the following projects 0 City Wide Rehabihtation. S325.350 - Rehabilitation of 24 very low and low income rental units 0 2300 Delaware. S196.000 - Rehabilitation of 14 very low income units 0 Yorktown Beach SRO (727 Yorktown), S200.000 - Proposal to rehabilitate an existing 67-room motel to a Single Room Occupancy ' (SRO) project 0 2810 & 2820 CLU $520.000 - Rehabilitation of 52 low-middle income units 1 Huntington Beach Strategy Implementation ' CHAS Annual Plan III-9 December 2$ 1992 0 17171 & 17181 Elm (Oakview Protect Area). S400.000 - Proposal - 16 units submitted for review 0 2200 - 2200 Delaware. S672.000 - Rehabilitation of 48 low-middle income units ' The City will also provide the owners of a 36-unit run down and crime ridden apartment complex located at 725 Utica Street with a low- interest deferred loan to completely rehabilitate the complex Approximately $600,000 in Redevelopment Set-Aside funds will be used to rehabilitate this complex, with $100,000 in the form of a conditional grant and $500,000 as a deferred loan In return for the City's investment, an Owner Participation Agreement and a Loan Agreement will be designed to require a 30-year covenant assuring tenant affordability at the very low income level, escrowed deferred maintenance funds and professional management Program 2C Code Enforcement The code enforcement program is operated through the City's Community Development Department whose field inspectors respond to complaints related to substandard housing, property maintenance, overgrown vegetation, trash and debris, illegal conversions, improper occupancy and other nuisance and zoning complaints Upon ' inspection, if violations of code exist, a violation notice is issued to the responsible party A failure to comply will result in code compliance proceedings The City has allocated $54,000 in CDBG funds to be used for personnel and operating costs related to the enforcement of housing ' and maintenance codes in targeted areas Program 2D Increased Leveraging of Private Resources ' The City intends to increase the level of financial commitment by the private sector Specifically, local lending institutions will be increasingly asked to make tangible commitments to the City's neighborhood preservation/property rehabilitation efforts ' Due to the strengthening of the Community Reinvestment Act as a result of the Financial Institutions Reform, Responsibility and Enforcement Act (FIRREA) local lenders are now strongly encouraged to demonstrate significant commitment to local community development efforts Huntington Beach Strategy Implementation CHAS Annual Plan III-10 December 28, 1992 It is anticipated that local lender resources will be made available for first and second mortgage loans in conjunction with government subsidies for single family and multi-family properties, where the borrowers are likely to have decent credit and/or significant equity, but cannot afford the monthly carrying costs of 10007o private lender ' financing at market rates These private resources cannot take the place of government subsidies ' However, local lenders funds can supplement these limited governmental resources, thereby allowing more units to be rehabilitated Program 2E Rehabilitation Rebates The City of Huntington Beach may leverage private funds by offering ' owner occupants a rebate of 5007b, 40%, 3007b, or 2007b based on income for preapproved rehabilitation work up to $6,000 annually Program 2F Monitor Marginal Neighborhoods Monitoring housing conditions in neighborhoods considered at risk is ' needed in order to prevent more costly deterioration at a later date This effort will require dedication of staff time on a regular basis to windshield survey the City and identify marginal areas This activity will provide a greater awareness for neighborhood development Most property owners will only make further investments in their property if they believe that there is an optimistic future for the particular ' neighborhood where the property is located and that, their additional investment in their property will be matched by other owners ' The Department of Community Development has begun a city-wide Housing Inventory Survey in October, 1992, concentrating on single- family homes, apartments, and overall neighborhood conditions ' Mobile homes and condonumums have not been included as part of the scope of this effort The purpose of the survey is to determine the condition of the City's housing stock in regards to property maintenance, appearance and general condition of the dwelling The Housing Survey will assist both ' Code Enforcement and the Housing Section of the Community Development in accomplishing their long range goals The survey is expected to take approximately ten to twelve months and will provide ' valuable information in identifying both housing and neighborhoods in need of possible rehabilitation/enhancement 1 Huntington Beach Strategy Implementation CHAS Annual Plan III-11 December 2$ 1992 1 Matching and Leveraging Requirements ' All matching requirements of HOME funds for Federal Fiscal Year 1992 have been waived by Congress and the Government CDBG monies have no match requirements In terms of leveraging, Programs 2D and 2E indicate a commitment on the part of the City to leverage private funds to maximize affordable ' housing achievements Support of Applications for Funding by Other Entities Approval by the Huntington Beach Citizens Advisory Board (CAB) is required for all requests for CDBG funds The City will support all 1 rehabilitation efforts by other entities except if a project's objectives are not consistent with the those of the Redevelopment Agency Huntington Beach Strategy Implementation ' CHAS Annual Plan III-12 December 28, 1992 — 1 Priority #3 Provide Supportive Housing Needs Assistance for "At-Risk" Population The City's annual goal is to continue to financially support a variety of agencies that provide housing-related services to Huntington Beach ' residents An estimated 2,800 very low income (0-30010 of County median), 2,800 very low income (31-5007o of County median), 2,550 low income (51-80010 of County median), and 2,550 middle income Huntington Beach residents can be assisted by these agencies during the coming fiscal year, inclusive of about 3,600 persons from female- headed families in need of housing-related services and 550 homeless persons to be accommodated in emergency and transitional shelters during the fiscal year Only the 550 homeless persons to be assisted using CDBG funds are included in Table 3B According to federal regulations, the other CDBG-funded services will not directly lead to the obtainment of affordable housing and thus, are not included in Table 3B ' Housing Activities/Programs and Resources ' Program 3A Orange County Fair Housing Council Huntington Beach is a member of the Orange County Fair Housing ' Council This Council receives all complaints of discriminatory practices in housing within the City This body provides counseling and information on dealing with discrimination, landlord/tenant problems, special assistance for ethnic nunority and single-headed ' households (which includes escort services to locate adequate housing), bilingual housing literature and video-tape presentations, day-care services, and housing assistance counseling The City has allocated $36,500 of CDBG funds to support fair housing ' services provided by the Farr Housing Council of Orange County Services provided by the Council include promotion/enforcement of fair housing practices and reconciling tenant and landlord disputes ' The Farr Housing Council currently serves approximately 2,000 Huntington Beach residents annually Huntington Beach Strategy Implementation ' CHAS Annual Plan III-13 December 2$ 1992 Program 3B Coordination with Social Service Agencies Huntington Beach allocates 15 percent of all CDBG funds for social services each fiscal year A total of $122,850 in CDBG monies will be provided to social service agencies that provide services to Huntington ' Beach residents during the coming year Approximately $92,500 will be used to provide housing related services by the following agencies ' Social Service Agency Amount of CDBG Awarded ' CASA Youth Shelter $3 500 Community Services Program $7 500 Episcopal Service Alliance $9 000 ' Interval House $20 000 Orange Coast Interfaith $5 000 Project Self Sufficiency $25 000 ' Salvation Army $7 500 Shelter for the Homeless $15 000 ' Note Refer to the CHAS Appendix for services provided by these agencies ' In attempts to curtail additional persons and families from becoming homeless, the City's Community Services Department runs "Project Self-Sufficiency" (PSS) The program, which first began in 1984 as a ' nationwide HUD demonstration project, is funded primarily through CDBG funds and private sector donations The program aims to make persons independent of government subsidies and become self- sufficient To meet this goal, PSS provides housing assistance in the ' form of Section 8 housing vouchers to low-income single parents who are either currently homeless or at risk of becoming homeless The program also matches the single parent with the appropriate agencies ' in the community to receive needed assistance such as food, clothing, childcare, and job training ' The HOME program Section 213 indicates that technical assistance may be made available to businesses, unions, and organizations involved in construction and rehabilitation of housing in low- and ' moderate-income areas to assist women residing in the areas to obtain jobs involving such activities This might include facilitating access by women to, and providing apprenticeship and other training programs regarding non-traditional skills, recruiting women to participate in such programs providing support for women at job sites counseling and educating businesses regarding suitable work environments for women, Huntington Beach Strategy Implementation ' CHAS Annual Plan III-14 December 2$ 1992 and providing information to such women regarding opportunities for establishing small housing construction and rehabilitation businesses Huntington Beach is investigating the feasibility of using HOME funds for such purposes as part of the implementation of Project Self- Sufficiency ' The City also uses its general fund to operate the Senior Shared Housing program offered at the Roger's Senior Center Roommate ' matches are made between seniors based on telephone requests The City is in the process of developing a new program with the objective of matching the participants of Project Self-Sufficiency with those of the Senior Shared Housing program The new program will begin operation by the end of 1992 ' A new shelter to assist the City's numerous adolescent homeless is targeted for opening in June, 1993 The Huntington Youth Shelter will be located in a rehabilitated structure in Central Park, and will provide overnight accommodations and counseling to homeless and runaway ' youths Maximum stay will be limited to two weeks, with the goal of reuniting the youths with family members The City previously funded construction of an access road to the shelter, and anticipates future ' funding once the shelter is in operation In addition, the City is investigating the feasibility of establishing a ' shelter for patients with AIDS Program 3C Emergency Foreclosure Program The City has considered the establishment of an "emergency foreclosure program" using federal and/or local resources The ' program would either provide emergency loan relief and/or financial counseling to eligible homeowners who, for reasons beyond their control, are temporarily unable to meet their mortgage or property tax ' obligations However, due to the lack of potential funding source, the City will not pursue this program during the coming year ' Program 3D Emergency Rent Relief The City has also considered the use of federal and/or local resources for short term financial assistance to renter households faced with temporary financial emergencies (e g , medical expenses, sudden unemployment) The term of assistance per family would be relatively ' brief Huntington Beach Strategy Implementation CHAS Annual Plan III-15 December 28, 1992 ! • • ! Highest priority for rent relief would be those low and middle income families and individuals who would be considered 'at risk" of losing their permanent housing The City will not pursue this program during the coming year due to the lack of appropriate funding sources for the program Matching and Leveraging Requirements ! CDBG and general funds have no matching requirements The social service agencies supported by the City utilize CDBG funds to leverage a variety of private and non-Federal funds Support of Applications for Funding by Other Entities ' The City will continue to support funding applications for local non- profit service providers However, social service providers lacking a track record, or projects or programs which raise neighborhood ' compatibility issues would need to be carefully reviewed ! ! ! Huntington Beach Strategy Implementation CHAS Annual Plan III-16 December 2$ 1992 ' Priority #4 Provide Opportunities for Homeownership, for Low/Middle income Residents, Particularly for First-Time Homebuyers Through Private Projects and Funding Sources The City's annual goal is to assist 22 low income and 22 middle ' income first-time homebuyers through the conversion of the Brisas Del Mar project with Redevelopment Agency assistance Among these 22 low income households, 11 are estimated to be small households and ' another 11 large households These units will be assisted with Redevelopment Set-Aside funds and thus, are not included in Table 3B ' Housing Activities/Programs and Resources ' Program 4A Financial Assistance for First Time Homebuyers The City will encourage local private lenders to make home mortgage ' financing available to low and middle income Huntington Beach residents through operation of a First Time-Homebuyers Program The staff will contact Community Reinvestment Act officers of local ' lending institutions during the coming year to initiate a bank-sponsored first-time homebuyer program ' The strengthening of the federal Community Reinvestment Act has increased the interest of local banks to assist in homeownership programs Also, Fannie Mae and other secondary market first mortgage purchasers now offer attractive programs to private lending institutions that agree to make such loans Lower downpayments and flexible underwriting criteria may be used in this program Program 4B Shared Equity Program ' The City has developed a Shared Equity Program in which Redevelopment Housing Set-Aside monies will be used to provide downpayment assistance for qualifying middle income first-time ' homebuyers A Deed of Trust and affordable housing covenant will be secured against the property to ensure the unit to be owner-occupied and the loan to be paid back with a proportionate share of the equity ' at the time the property is sold or the title transferred The covenant will designate the use for not less than the maximum feasible time Huntington Beach Strategy Implementation ' CHAS Annual Plan III-17 December 28, 1992 1 1 • • 1 The Agency will assist in securing Second Trust Deed for the following projects 1 0 Bnsas Del Mar/Delaware & Utica. 8300.000 - Conversion of existing 44 unit noddle income rental to low-mod 1st time buyers The 1 Redevelopment Agency will assist in Second Trust Deed It can be generally estimated that 22 of these units will be purchased by low income households 1 0 Third Block West (300 Mach. Main Pier Pro-Iect Area). 8825.000 - Agency participation in the development of 68-unit condo with 33 units reserved for middle income first time buyers under the Second Trust Deed program (refer to Program 1A) o Seavicew 1 (10824 JoUX Lane, TalbejXlBeach Protect Area, 5750.000 - 1 Agency participation in the development of an 88-unit project with 25 units reserved for huddle income first time buyer program and Trust Deed (refer to Program 1A) It is also the City's goal to formalize written guidelines for the First- Time Homebuyers program, confirm lender participation, and develop public information campaign Program 4C Mortgage Credit Certificate Program 1 Huntington Beach plans to explore the feasibility of a Mortgage Credit Certificate Program if the program is being renewed Under this 1 program, first-time homebuyers would receive tax credits equal to between 20-50 percent of the annual interest payment on their annual home mortgage interest payments 1 Program 4D City Wide Inclusionary Housing Ordinance ' To assist low and middle income first-time buyers, the City has established a City-wide policy to require the inclusion of an affordable homeownership component in all private ownership housing projects with no exemption for small size projects However, small size projects may pay an in-lieu fee for affordable units 1 Affordable units amounting to ten percent of project development is required for property that has existing zoning in place and is not requesting a change in land use status For those developers who are seeking to enter into a development agreement with the City or need a general plan amendment or zone change, 20 percent of the units are required to be set-aside as affordable housing Developers are Huntington Beach Strategy Implementation CHAS Annual Plan III-18 December 28, 1992 1 • • 1 required to advertise the affordable units available to the general public The City's goal for the coming fiscal year is to adopt an inclusionary housing ordinance to implement this policy The following table represents a list of projects that contain an inclusionary housing component as part of the project development No public funding is involved in the development of these affordable units Total Project Affordable 1 Project Units Units Bushard School (9800 Yorktown) 58 12 (20%) Garfield Tracts 109 21 (20%) Lake Street Project (500 Lake St) 10 2 (20%) NFSI Magnolia/Pacific 502 51 (10%) Summerhill (8186 Constantine) 48 10 (20%) Surfcrest North (Seapomte) 252 50 (20%) Surfcrest South (Seapomte) 115 23 (20%) Wmtersburg School (Warner) 298 44 (15%) Holly Seachff 3 895 584 15% 5 287 797 ' This number represents the maximum number of affordable units the site may yield The actual number of wets developed may be less 1 Matching and Leveraging Requirements Private funds may be combined with redevelopment set-aside funds for ' home ownership projects within the redevelopment project areas Support of Applications for Funding by Other Entities The City will support any funding applications for homeownership assistance to the extent neighborhood compatibility is not ' comprorrused Huntington Beach Strategy Implementation CH4S Annual Plan III-19 December 28, 1992 i ' Priority #5 Provision and Preservation of Affordable Housing for Residents with Special Needs, Especially for Large Families and Elderly tThe City's annual goal is to support three social service agencies that provide supportive services to the City's elderly residents An estimated 284 very low income (30% median County income), 283 very low income (5007b median County income), 282 low income, and 282 middle income Huntington Beach senior residents may be served by these agencies annually Also, the City plans to assist five disabled persons through the City's Handicapped Grant Program It can be generally estimated that half of the persons to be assisted are owners ' and half are renters Only the households to be assisted through the Handicapped Grant ' Program are included in Table 3B Housing Activities/Programs and Resources Program 5A Single Family Rehabilitation Program The Single-Family Rehabilitation Program is part of the City's Owner- Occupied Rehabilitation Program described earlier To the maximum extent possible, elderly homeowners and large families will be provided financial assistance to maintain their properties Mobile homes occupied by lower income elderly will also be assisted in this Program Large family benefit will also be a focus of the Single Fanuly Rehabilitation Program in order to provide additions to homes to alleviate unit overcrowding and deterioration Program 5B Supportive Services for Elderly Whether the elderly are homeowners or renters, supportive services ' often are necessary to meet their needs The City will coordinate rehabilitation assistance with the appropriate social support services as offered by County City and nonprofit agencies iThere are numerous resources available to the elderly population of Huntington Beach There are County advocacy organizations, Disabled and Emergency Service organizations, Financial Assistance agencies Food and Nutrition Services, Health and Medical Services, Hospice Care, Housing Information and Referral, In-Home Services, Nursing Huntington Beach Strategy Implementation CHAS Annual Plan III-20 December 2$ 1992 and Convalescent Homes, Adult Protective Services, Retirement/Board and Care Homes, numerous Senior Centers, Transportation Services for the Elderly and Volunteer Programs to assist the elderly in leading full and productive lives ' The City has allocated $34,750 of CDBG funds for Fiscal Year 1993 to assist the following non-profit agencies to provide services for senior residents in Huntington Beach ' o Feedback Foundation. Inc at the Roger's Senior Center 512.250 - provides TLC nutrition for seniors o Huntin on Valley Adult Day Care 55.000 - provides orthopedic program for person, and seniors suffering from forgetfulness, confusion, disorientation and severe memory loss, stroke, and family support service e Orange County Consolidated Transportation Service AgetLy (OCCTSA) SIZ500 Provides transportation to frail semors and handicapped persons In addition, through the City's rehabilitation programs, funds have been allocated to assist in the rehabilitation of elderly-occupied mobile homes and single-family homes Program SC Handicapped Grant Program ' Handicapped households have special needs which include access ramps, wider doorways assist bars in the bathrooms, lower cabinets, and special access sources to second stories The City utilizes CDBG and HOME funding to offer $2,000 handicapped modification grants to multi-unit property owners to encourage modification to existing units to meet these special needs of the handicapped Investor-owners must ' agree to make any modified units available to disabled persons on a "first priority" basis ' Also, as part of the ongoing single-faintly housing rehabilitation program, handicapped owners will be targeted to receive CDBG and HOME funds to make housing accessible to handicapped persons This effort should increase locational choice for the physically disabled Five low income physically disabled residents, both owners and renters, will be assisted under this program for Fiscal Year 1993 Huntington Beach Strategy Implementation CHAS Annual Plan III-21 December 28, 1992 ' Program 5D Preserving Affordable Multi-Family Housing 1 A community's existing affordable housing stock is a valuable resource which should be conserved and, if necessary, improved to meet habitability standards The City of Huntington Beach has four ' federally assisted (Section 221, 231 & 236) multifamily housing projects with the potential for conversion to market rate with expiration or prepayment of the original loan ' One approach which may be pursued to conserve existing affordable units would be for a non-profit sponsor to purchase Section 236 or other subsidized projects at the current market value with financing provided by tax-exempt multi-family revenue bonds issued by the City The rating of these tax-exempt securities could be enhanced by pledge of the redevelopment housing set aside funds, thus reducing the net interest cost of the mortgage loan No assisted housing units will be at risk of converting to market rate ' housing during the corning fiscal year The City will continue to monitor the prepayment and conversion status of the City's assisted housing stock ' Matching and Leveraging Requirements ' All matching requirements on the HOME funds for Fiscal Year 1993 have been waived by Congress and the President Social service agencies supported by the City utilize CDBG funds to leverage a ' variety of private and non-Federal funds Support for Applications for Funding by Other Entities ' The City will continue to support funding applications for local non- profit service providers However, social service providers lacking a ' track record, or projects or programs which raise neighborhood compatibility issues would need to be carefully reviewed 1 Huntington Beach Strategy Implementation ' CHAS Annual Plan III-22 December 28, 1992 Priority #6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project ' Areas as Required by the California Health and Safety Code ' The City's annual goal is to assist relocation of ten households currently residing in the Driftwood Mobile Home Park It is assumed the majority of these mobilehomes are occupied by elderly households earning lower income Thus, the targeted income breakdown is 4 very low income (0-3007o of County median), 4 very low income (31-50% of County median), and 2 low income ' Housing Activities/Programs and Resources ' Program 6A Mobile Home Ordinance This ordinance provides minimum standards for an acceptable mobile ' home relocation assistance plan if a mobile home park is converted to other uses Many senior citizens and low income households presently reside in the City's mobile home parks According to the City, the goal of the mobile home relocation assistance plan is to provide alternative housing opportunities for mobile home residents who may be displaced as a result of conversion of mobile home parks to other land uses Any displacement of mobile home units (or any low or middle income housing) resulting from City- sponsored redevelopment activities will be replaced in equal number withing four years and will be available at affordable rates It is the City's responsibility to meet and consult the mobile home park owners and tenants who are potential displacees from mobile home parks which the City intends to convert to other uses, assess the impacts of displacement and prepare a strategy to address the needs of the displacees Provision of financial assistance for relocation of persons that are moved permanently and involuntarily from real ' property due to physical rehabilitation activities is required by the federal law Tenants will not be considered displaced if they were offered assistance and refused assistance Huntington Beach Strategy Implementation ' CHAS Annual Plan III-23 December 2$ 1992 ' Program 6B Assistance to Dtsplacees 1 Depending on availability, displacees will receive either Section 8 rental subsidy assistance, or relocation assistance pursuant to the provisions for permanent displacement of the U S Uniform Relocation Assistance and Property Acquisition Act of 1970 An eligible lower-income tenant who is displaced may elect one of the ' following options a Obtain Federal Section 8 rental assistance This rental assistance will be provided each month in an amount which is the difference between the rent for the new housing unit and thirty percent of the income of the household b Obtain a monthly replacement housing payment sufficient to enable the persons to rent a comparable dwelling unit Monthly payments ' may be made for up to a 42 month period c Obtain a one-time lump sum replacement housing payment for ' purchase of a dwelling unit If this option is chosen, funds will only be released upon verification that a specific property has been identified and mortgage financing has been obtained A non-lower income tenant may be eligible for a monthly replacement housing payment sufficient to enable the person(s) to rent or buy a comparable dwelling unit In addition to the above options, the displaced tenant family may choose to receive either a payment for actual moving and related expenses or a fixed moving expense and dislocation allowance The City will provide at least 90 days advance written notice to move ' Information and counseling will also be provided to each tenant and will include information to familiarize displacees with opportunities to select appropriate replacement housing within the full range of ' available housing and individual rights under the federal Fair Housing Law No displacees will be discriminated against in the provision of information counseling, referrals, or other relocation services The Redevelopment Agency has been active in assisting the development of replacement housing and providing relocation assistance Agency assisted replacement housing/relocation projects include the following Huntington Beach Strategy Implementation CHAS Annual Plan III-24 December 2$ 1992 ' o Five Points Senior Villas (18651 Ronda), S'750.000 - 164 unit senior rental project of which Agency is participating through loan and grants for 48 units counted towards Main-Pier replacement housing ' needs (30 years) Among the 48 affordable units, 16 units will be set aside for very low income households, 16 units for low income, and 16 units for middle income All units are for small elderly ' households (refer to Program 1A) ' 0 Dn ood (21462 Pact& Coast Highwe Main Pier Protect Area) - This is a redevelopment project which involves the displacement of existing occupants The Agency will purchase the existing mobile homes and pay for relocation assistance to existing occupants The City's goal is to achieve relocation of 10 units annually ' Matching and Leveraging Requirements No matching funds are required for replacement housing ' Support for Applications for Funding by Other Entities Not applicable 1 Huntington Beach Strategy Implementation ' CHAS Annual Plan III-25 December 28, 1992 ..a �u � ft W I Support R Ass,=.. Services mom (F) mm Immommmum, FIN Mill V/111-------- FEE OF/M It CHAS Table 3B U S Department of Housing and Urban Development Office of Community Planning and Development Goals for Households & Persons Comprehensive Housing Affordability Strategy (CHAS) to be Assisted with Housing Instructions for Local Jurisdictions Name of Jurisdiction FY City of Huntington Beach 992/93 Renters Owners Homeless Non Assistance Provided Elderly Small Large Ist Tlme Homebuyers Homeless Total by Income Group 1 3 2 Member Related Related All Other Total Existing With Total Individuals Families Special Total Section 2 Households (2 to 4) (5 or more)Housenolds Renters Homeowners Children All Others Homeowners Needs Goals Goals (A) (B) (C) (D) (E) (F) (G) (H) (1) M (K) (L) (M) (N) i Very Low Income 10 7 2 0 0 112 419 31 3 309 H—Hs (0to309' of MFI) HHs HHs prs 309prs HHs 2 Very Low Income 10 6 204 111 4 2 16 s 7 (31 to509' of MFI) HHs HHs prs 308prs s 3 Other Low Income 3 0 31 6 3 6 4 HH S (51 to 809' of MFI) HHs HHs 4 Total Low-Income 213 434 254 50 9 51 HH s 887 (lines 1 +2+3) HHs HHs I prs I 617prs HHs Or based on HUD adjusted Income limits If applicable ** A portion of the households to be assited under this category will fall within the Section 215 affordability guidelines However, no information is available to identify the exact number of households • form HUD 40090(9/92 CHAS TABLE 3B (ATTACHMENT) Note Totals in Table 313 do not include the following projects that will benefit lower income households with no involvement of federal funds Projects assisted with Redevelopment Set-Aside Funds 1 Five Points Senior Villa - 8 Very Low Income (0-30% of MFI) elderly households 8 Very Low Income (31-50% of MFI) elderly households 16 Low Income elderly households • 2 725 Utica - 9 Very Low Income (0-30% of MFI) small renter-households 9 Very Low Income (0-30% of MFI) large renter-households 9 Very Low Income (31-50% of MFI) small renter-households 9 Very Low Income (31-50% of MFI) large renter-households 3 Driftwood - 4 Very Low Income (0-30 of MFI) elderly households 4 Very Low Income (31-50% of MFI) elderly households 2 Low Income elderly households Inclusionary Units Affordable Units 1 Bushard School (9800 Yorktown) 12 2 Garfield Tracts 21 • 3 Lake Street Project (500 Lake St ) 2 4 NESI - Magnolia/Pacific 51 5 Summerhill (8186 Constantine) 10 6 Surfcrest North (Seapointe) 50 7 Surfcrest South (Seapointe) 23 8 Wintersburg School (Warner) 44 9 Holly-Seacliff 584 Total 797 ' • • B GEOGRAPHIC DISTRIBUTION OF RESOURCES ' Huntington Beach has targeted several neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance These Neighborhood Enhancement Target areas include the following ten census tracts 995 08, 994 10, 994 11, 994 02, 994 13, 993 05, 993 02, 993 03, 992 20, and 992 14 Code enforcement efforts, Operation LOGOS, and residential rehabilitation loans are being focused in these areas as identified on the following map The City also has five Redevelopment Project Areas, where much of the affordable new residential construction will be focused Other programs and services are provided by the City and other agencies on a city-wide basis C SERVICE DELIVERY SYSTEM ' Implementation of the housing programs and activities identified in the CHAS are carried out by the City's Economic Development and Community ' Development departments, and by for profit and non-profit organizations The Economic Development Department is responsible for the overall administration and oversight of the CDBG program, and development and ' implementation of Redevelopment Housing policies and projects The Community Development Department is responsible for the Housing Rehabilitation program, CDBG funded neighborhood revitalization programs (LOGOS), the HOME program, and oversees the residential permitting process and regulates compliance with zoning and building codes Non-profit organizations will play a role both in the development of affordable housing in Huntington Beach during the coming year, and in the provision of housing-related services The City will work with a CHDO (Community Housing Development Organization) to develop low income housing using HOME funds, and has issued a RFQ to solicit interest The City will also work with Habitat ' for Humanity and Orange County Community Housing in the development of affordable housing There are many private for-profit builders, developers and contractors in the Huntington Beach area The vast majority of housing that is developed, built and rehabilitated in Huntington Beach is done so by private firms ' Private lending institutions provide funds for housing development and rehabilitation Community Reinvestment Act requirements will continue to help ' expand the availability of financing for lower income housing development Huntington Beach Strategy Implementation CHAS Annual Plan III-30 December 2$ 1992 1 Figure 1 Neighborhood Enhancement Target Areas and Redevelopment Project Areas 1 i 1 1 1 i 1 1 1 1 i 1 i 1 Huntington Beach Strategy Implementation 1 CHAS Annual Plan III 31 December 2$ 1992 1 �6 �g EDDOODmmDODODODO11DODODODDDO DO DO DO11DODOODDO®mDOmDoDo O � 0 DO DO DOmDOOODODDmDODODODDmm. D D DO DOmmD0000OIDDODODODODODODODO I I DODODODOD DnODODODODODODOmmDODODOOOm0O0 iDniffliP�P�P�P�P�P-171,IFE-1�q IFIII�p7l,pq OF-01�q PMAI pq pg PACIFICCOSTHQ f PACIFIC COAST HIGHWAY HUNn1 KTON BEACH ML"QPAI BEACH s APOPM SEPTER 6,1983 PAQHC OCEAN 4D0�SEPTFA►Spq 10,►981 PACIRC OCEAN ME • IV. OTHER ACTIONS A. PUBLIC POLICIES LICIES On September 16, 1991, the City Council appointed a task force to make recommendations to the Council on affordable housing The task force was given the charge of exploring the various aspects of affordable housing and recommending an affordable housing strategy to implement the City's adopted Housing Element The goal is to develop a long range affordable housing plan which addresses the projected needs of the community and achieves the expectations of regional, State, and Federal regulations The task force recommended the following strategies ' o Adopt "Affordable Housing" development standards specifically related to density, parking site coverage, open space, and building height to 1 reduce the cost of housing development o Investigate the feasibility of fast tracking development permits, waiver ' of selected public fees, obligation for public infrastructure improvements, etc 1 The City has also adopted an inclusionary housing policy which requires all new residential projects, regardless of project size, to include an affordable housing component However, developers of small size projects may choose to pay a fee in lieu of affordable units Affordable units amounting to ten percent of project development is required for property that has existing zoning in place and is not requesting a change in land use status For those developers who are seeking to 1 enter into a development agreement with the City or need a general plan amendment or zone change, 20 percent of the units are required to be set-aside as affordable housing Developers are also required to advertise the affordable units available to the general public These public policies will serve to facilitate the creation of affordable housing in the community r 1 Huntington Beach Other Actions CHAS Annual Plan 1V-1 December 28, 1992 1 • • B INSTITUTIONAL STRUCTURE ' Huntington Beach has initiated a series of efforts to restructure its housing service delivery system in order to more efficiently provide housing services to its residents The City restructured the organizational capacity of its Economic Development and Community Development departments during the last fiscal year The ' Community Development Department is now responsible for housing rehabilitation programs, the HOME program, and the housing element The Economic Development Department has maintained responsibility for implementation of redevelopment housing programs, and for administration and oversight of the CDBG program ' The City of Huntington Beach is currently undergoing a voluntary operational evaluation of the Huntington Beach development services The study will address the following issues ' o Departmental mission, goals, and objectives, 0 Organizational structure, including the appropriateness of functional 1 divisions of labor, reporting relationships, and spans of control, 0 Staff levels by major functional unit, e g, Administration, Planning, and Building and Zoning Code Enforcement, o Managerial effectiveness of the Department, 0 Cost effectiveness of departmental operations, and ' 0 Service delivery effectiveness in addressing client needs The results of this study will enable to City to improve the Community Development Department's efficiency in delivering services, including the delivery of housing services j i i 1 Huntington Beach Other Actions ' CHAS Annual Plan IV-2 December 28, 1992 • • C PUBLIC HOUSING IMPROVEMENTS Huntington Beach has no public housing projects The City, however, has a total of 735 income-restricted units assisted through the City Multi-Family Mortgage Revenue Bond program and various HUD programs As part of the City's Housing Element amendment, an inventory and description of these assisted units was prepared A recent housing condition survey conducted by the City concluded these assisted units are in excellent condition and require no improvements or rehabilitation D PUBLIC HOUSING RESIDENT INITIATIVES 1 There are no public housing projects located within Huntington Beach E CERTIFICATIONS ' The required CHAS fair housing and anti-displacement/relocation certifications are located on the following page i Huntington Beach Other Actions CHAS Annual Plan IV-3 December 2$ 1992 1 CERTIFICATIONS FAIR HOUSING The jurisdiction hereby certifies that it will affirmatively further fair housing Signature of Authorized Official X RELOCATION AND ANTIDISPLACEMENT 1 - , The jurisdiction hereby certifies that it is in compliance with a residential antidisplacement and relocation assistance plan under section 104(d) of the Housing and Community Development Act of 1974 ' Signature of Authorized Official X s i V SUMMARY OF CITIZEN COMMENTS A public hearing on the Huntington Beach CHAS Annual Plan was held on November 19, 1992 at 7 00 pm at the Boys and Girls Club The public hearing was attended by City staff and five members from the Huntington Beach Citizens Advisory Board (CAB) The CAB reviewed the Draft CHAS Annual Plan and provided input for incorporation into this submittal Specifically, the CAB requested a policy statement to be included in the CHAS with regard to equal access to affordable housing units Residential development projects that include an mclusionary housing component and/or assisted with public funds will be required to advertise the availability of affordable units to the general public The CAB also suggested that allocation of the affordable units be selected from qualified applicants using a lottery system No additional comments were received during the 30-day public review period 1 1 Huntington Beach Summary of Citizen Comments CHAS Annual Plan `I-1 December 28, 1992 VL APPENDIX A. GLOSSARY 1 Affordability Gap The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income ' Affordable Housing Affordable housing is generally defined as housing where the occupant is paying no more than 30 percent of gross income for gross housing costs, including utility costs Affordable housing has a more specific I definition for purposes of completing Table 5B That definition is included in the instructions for Table 5B Committed Generally means there has been a legally binding commitment of funds to a specific project to undertake specific activities Expand defirutions for completing Table 4/5A are included in the instructions for t Table 4/5A ' Cost Burden > 30% The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data published by the U S Census Bureau Cost Burden > 50% The extent to which gross housing costs, including utility costs, exceed 50 percent of gross income, based on data published by the U S Census Bureau Elderly Household One or two person households containing a person at least 62 years of age, and non-elderly handicapped individuals, including those currently institutionalized but who are capable of "group home" living Existing Homeowner An owner-occupant of residential property who holds legal title to the property and who uses the property at his/her principal residence Family The head of a household and all other persons living in the same household who are related to the head of the household by blood, marriage or adoption First Time Homebuyers An individual or family who has not owned a home during the three-year period preceding the HUD-assisted purchase of a home that must be used as the principal residence of the homebuyer Huntington Beach Appendix CHAS Annual Plan `11-1 December 28, 1992 s • Group Quarters A facility housing groups of persons not living in households (U S Census definition) Examples of group quarters include institutions, dormitories, shelters, military quarters, and other quarters, including SRO housing, where 10 or more unrelated individuals are housed Home Program The HOME Investment Partnerships Act, which is Title II of the National Affordable Housing Act A new federal affordable housing program ' Household Persons living in a housing unit Table 1D Instructions provide aspecial definition of "household" as it is used in Table 1D Housing Unit Houses, apartments, and separate living quarters, including SRO housing, where less than 10 unrelated individuals are housed (U S Census definition) Housing units are distinguished from group quarters ' Instititutions/Institutional Group quarters for persons under care or custody (U S Census definition) ' Large Family A family household with 5 or more members Low/Lower Income Families of households whose incomes are from 0 to 80 ' percent of the median income for the area, as determined by the Secretary of HUD, with adjustments for smaller and larger families and for certain areas Middle Income Households Families or households whose incomes are from 96 to 120 percent of the median income for the area, as determined by the Secretary of HUD, with adjustments for smaller or larger families, and for Icertain areas Moderate Income Households Families or households whose incomes are from 81 to 95 percent of the median income for the area, as determined by the Secretary of HUD, with adjustments for smaller or larger families, and for certain areas Non-institutional Group quarters for persons not under care of custody (U S Census definition used in Table 2A) Overcrowded A housing unit containing more than one person per room (U S Census definition used in Table 1A) Public Housing CLAP Public Housing Comprehensive Improvement Assistance Program Huntington Beach Appendix CHAS Annual Plan VI-2 December 28, 1992 1 • � Rent Burden > 300Io (Cost Burden) The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data published by the U S Census Bureau Rent Burden > 50% (Cost Burden) The extent to which gross housing costs, 1 including utility costs, exceed 50 percent of gross income, based on data published by the U S Census Bureau Section 215 Section 215 of Title II of the National Affordable Housing Act Section 215 defines what constitutes "affordable" housing projects under the Title 11 HOME program 1 Service Needs The particular services identified for special needs populations, which typically may include transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, and other services to prevent premature institutionalization and assist individuals to continue living independently ' Sheltered Families and persons whose primary nighttime residence is a supervised publicly or privately operated shelter (e g, emergency, transitional, battered women, and homeless youth shelters, and commercial hotels or motels used to house the homeless) Sheltered homeless does not include any individual imprisoned or otherwise detained pursuant to an Act of Congress or State law Substandard To be defined by the jurisdiction The jurisdiction's definition must include any housing unit which fails to meet the Section 8 Existing Housing Quality Standards (HQS) Jurisdictions that have already developed such a definition for the HAP may elect to continue to use that definition, or may provide a new definition Suitable for Rehabilitation To be defined by the jurisdiction The definition must provide for the exclusion of both units which can be brought into standard condition through minor repair (e g, minor HQS "livability" violations), as well as ' units in such substandard condition as to make rehabilitation infeasible, including financially infeasible Supportive Housing Housing with a supporting environment, such as group homes or Single Room Occupancy (SRO) housing and other housing that includes a planned service component Supportive Services Services provided to residents of supportive housing for the purpose of facilitating the independence of residents Some examples are case management, medical or psychological counseling and supervision, child care, transportation, and job training Huntington Beach Appendix CHAS Annual Plan V1_3 December 2$ 1992 1 Unsheltered Families and individuals whose primary nighttime residence is a public or private place not designed for, or ordinarily used as, a regular sleeping ' accommodation for human beings (e g, the street, sidewalks, cars, vacant and abandoned buildings) iB AMENDMENT TO THE CHAS FIVE-YEAR PLAN This section amends Huntington Beach's approved Comprehensive Housing Affordability Strategy (CHAS) for 1991-1996 Clarification has been added in response to HUD's advisory comments on the City's Five-Year CHAS HUD Programs as Potential Funding Resources The City will utilize CDBG, HOME, and redevelopment set-aside funds to assist all previously described housing programs and activities With $3 7 million in Set-Aside funds available for expenditure in the coming year, the City is able to implement a variety of housing assistance programs, including several programs aimed at assisting the homeless The City does not therefore anticipate the need to pursue other HUD programs as potential funding resources during the coming year ' Inventory of Homeless Facilities, Their Capacities, and Services Provided Based on estimates by the Orange County Homeless Task Force, the County's homeless population consists of approximately 8 000 to 10,000 individuals, some of whom are located in Huntington Beach As a beach community, the City 1 attracts numerous individuals who congregate along the beach, under the pier, by the Santa Ana River bed, and in Central Park As most homeless individuals migrate to available services, social service agencies located outside the City also serve the Huntington Beach homeless The following table presents a listing of agencies which provide social services in the immediate area of the City The City provides funding ($92,500 for Fiscal Year 1992/93) to several of these agencies for homeless services The Episcopal Service Alliance, Project Self- Sufficiency, and Saints Simon and Jude Catholic Church are located in the City's jurisdiction ' The Huntington Youth Shelter with the goal to assist the City's numerous adolescent homeless is targeted for opening in June, 1993 This new shelter will be located in a rehabilitated structure in Central Park, and will provide overnight accommodations and counseling to homeless and runaway youths Maximum stay will be limited to two weeks, with the goal of reuniting the youths with family members Huntington Beach Appendix CHAS Annual Plan `11-4 December 2$ 1992 r • • INVENTORY OF HOMELESS SERVICES AND FACILITIES Name Location Services Provided, Capacity Episcopal Service Alliance Provides motel vouchers lodging food clothing bus Huntington Beach coupons medical attention and counseling Accommodations available for men women and families on first come basis ' Project Self Sufficiency Provides housing vouchers Assists with finding Huntington Beach childcare food and clothing Accommodates residents or workers of Huntington Beach or persons coming from shelters Sts Simon and Jude Catholic Church Provides food Accommodates families on emergency Huntington Beach per night basis and only when church funds are available ' CASA Youth Shelter Provides temporary shelter for abused children with Los Alamitos a capacity of 12 persons Community Services Program Runs a youth shelter and provides services for at Irvine risk children and families for the prevention of drug abuse and alcoholism Interval House Provides 30 45 day shelter service and individual and ' Seal Beach group counseling to battered women and children Orange Coast Interfaith Shelter Accommodation available primarily for couples Costa Mesa families and single women with children Maximum 25 30 individuals Shelter provided on an emergency per night basis Services include food shower and laundry Agency also offers two month program serving 12 families Families required to save 80 percent of income during the time period Counseling services offered in parenting budgeting and job referrals Salvation Army Daytime service provides food and housing referral Santa Ana for families Nighttime service provides shelter for men women and families for 3 nights offered on an emergency first come basis Shelter for the Homeless Provides room and board for 15 day probation Westminster period in which time all boarders must find employment If employment is verified, the stay may extend up to 120 days Accommodations available for men on a first come basis Amparo Youth Shelter Accommodates children between the ages of 11 17 Garden Grove Two week in residence counseling program dealing with problems associated with family school, drugs and alcohol Follow up 4-6 weeks after care program Shelter provided for children facing extreme homelessness 1 Source City of Huntington Beach 1989 Housing Element Update rHuntington Beach Appendix CHAS Annual Plan VI-5 December 28, 1992 r Potential for SRO Developments in the City ' To ensure adequate provision of housing for very low income residents, the City's 1989 Housing Element recommended investigating the potential for development of Single Room Occupancy (SRO) hotels As a result of this recommendation, ' the City adopted Ordinance No 3108 in 1991 to allow Single Room Occupancy units in Commercial Zones and within the North Huntington Center Specific Plan Ordinances No 3108-3111 were adopted simultaneously to define development guidelines and parking requirements for SRO developments in the permitted zones Huntington Beach has planned to assist in the rehabilitation of an existing 67- ' room motel and conversion to an SRO during the coming year Concentration of Racial and Ethnic Minorities and Their Housing Needs ' According to the 1990 Census, 79 2 percent of the Huntington Beach population is White, 112 percent is Hispanic, 8 0 percent is Asian, 0 9 percent is Black, 0 5 percent is American Indian, and 0 1 percent is Other Concentrations are defined in terms of the Orange County averages for each ' racial/ethruc group A "concentration" is defined as exceeding the County average for a specific group, a "moderate concentration" refers to at least double the County average for a particular group, and a "high concentration" refers to at least triple the County Average for a particular group The County average concentration is 23 4 percent for Hispanic, 10 0 percent for Asian, 16 percent for Black, 0 4 percent for American Indian, and 0 1 percent for Other While Hispanic represents the City's largest minority group, only one census tract (994 02) has above the County average concentration of Hispanic persons Tract 994 02 is bounded by Warner Avenue to the north, Beach Boulevard to the east, Talbert Avenue to the south, and Golden West Street to the west The proportion of Hispanic persons in this census tract is 49 1 percent, which constitutes a moderate concentration According to the 1990 Census, overcrowding condition in this tract is severe, with six percent of the households living in overcrowded units and another 23 percent living in severely overcrowded ' units Approximately 78 percent of the housing in this tract are rental units The City will provide financial assistance, through the rental rehabilitation programs, for investor owners to rehabilitate rental housing and alleviate overcrowding condition in this area Asians are the second largest minority group in Huntington Beach Fourteen of the City's 44 census tracts have above the County average concentration of Asian persons However, none of the 14 census tracts constitutes a moderate or high concentration Vietnamese, Chinese, Japanese Filipino, Korean, and Asian Huntington Beach Appendix CHAS Annual Plan VI-6 December 28, 1992 Indian represent the predominant Asian groups scattered throughout Huntington Beach ' Black, American Indian and other racial/ethruc minorities comprise only 15 percent of the City's total population Four tracts have above County average ' concentration of Black persons Three (992 41, 994 10, and 994 11) of the four tracts are located in the northeast portion of the City along the San Diego Freeway Tract 994 11 constitutes a moderate concentration Residents of American Indian descent can be found throughout Huntington Beach A total of 24 tracts have above the County average concentration, with two tracts (994 10 and 996 04) constituting moderate concentrations and three other tracts (994 07, 996 03, and 997 02) constituting high concentrations All five tracts are located in the northern portion of the City Also, seven other tracts (992 15, 992 45, 993 05, 994 08, 994 10, 994 16, and 996 05) scattered across the City have above County average concentration of "Other" racial/ethnic groups 1 Energy Efficiency Programs and Incentives ' As residential energy costs continue to rise, increasing utility costs reduce the affordability of housing, thus aggravating the City's current shortage of affordable units Both the Southern California Gas Company and Southern California ' Edison offer a variety of energy conservation services designed to help low- income, senior residents, permanently handicapped, and non-English speaking customers control their energy use Homeowners and renters may qualify for the following types of weatherization improvements free of charge attic insulation, weather stripping, caulking, water heater insulation blankets, water-saving showerheads, heating/cooling duct insulation, other types of limited home repairs ' which increase energy efficiency The City's Community Development Department will continue to support and assist in publicizing energy conservation programs offered by the utility companies Huntington Beach Appendix ' CHAS Annual Plan VI-7 December 28, 1992 iCITY OF HUNTINGTON BEACH CONCENTRATION OF RACIAL/ETHNIC MINORITY GROUPS 1990 CENSUS POPULATION Concentration of Concentration of Concentration of Concentration of Hispanic Persons Asian Persons Black Persons American Indians 1990 %of 1990 %of 1990 %of 1990 %of Census Total Census Total Census Total Census Total Tracts Pop Tracts Pop Tracts Pop Tracts Po 994 02 49 1% 99212 14 5% 992 41 17% 99212 0 7% 99238 15 2% 99307 17% 99214 0 6% 99239 115% 99410 17% 99217 0 7% 99242 119% 99411 2 4% 99235 0 7% ' 99245 10 3% 99237 0 6% 99246 16 5% 99239 0 6% 99402 10 1% 99240 0 6% ' 99410 10 3% 99241 0 6% 99413 110% 99242 0 7% 99415 13 7% 99244 0 7% ' 99602 121% 99245 0 5% 99603 10 3% 99302 0 6% 99604 115% 99305 0 7% ' 99605 119% 99306 0 5% 99404 0 5% 99407 12% 99410 1 1% 99411 0 5% 99413 0 6% 99416 0 8% 99602 0 6% 99603 13% 99604 10% 99702 13% County Average = County Average County Average County Average 23 4% = 10 0% = 17% = 0 4% Note A concentration is defined as exceeding the County average for a specific group a moderate concentration refers to at least double the County average for a particular group and a high concentration refers to at least triple the County average for a particular group ' Source U S Department of Commerce Bureau of the Census 1990 Census Report Huntington Beach Appendix CHAS Annual Plan `II-8 December 2$ 1992 r CHAS A' ,'n- erforf an e t fog Fiscal • • • �. dip 1 ' CHAS Appen w US Department of Ho ng and Urban Development Cover Sheet Office of Community Plan w d Development Comprehensive Housing Affordability Strategy (CHAS) ' Instructions for Local Jurisdictions flame ol Jurisdiction Type of Submission (mark one) City of Huntington Beach New Five Year CHAS (enter fiscal yrs) ' FY through FY Name of Contact Person Telephone No Stephen Kohler (714) 536-5582 XD Annual Plan 1991/1992 Lisa Moreno fOrF�Performance Report Ad�eesspartment of Economic Development F(markone) 2000 Main Street, 5th Floor Initial Submission Resubission of Disapproved CHAS Huntincton Beach, CA 92648 ' The Jurisdiction HUD Approval Name of Authorized Official Name of Authored Official Signature& Date Signature 3 Date X X M` form HUD40090 (9/9 CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL PERFORMANCE REPORT FOR FISCAL YEAR 1991/92 1 December 28, 1992 Prepared by City of Huntington Beach ' Department of Economic Development with Assistance from ' Cotton/Beland/Associates Inc 747 East Green Street, Suite 400 Pasadena, California 91101 74900 CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ' ANNUAL PERFORMANCE REPORT FY 1991/92 TABLE OF CONTENTS Page ' I INTRODUCTION I-1 II ANNUAL PERFORMANCE II-1 A. RESOURCES MADE AVAILABLE II-1 ' Pnonty # 1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower Income Households II-2 • One Year Goals for Fiscal Year 1991/92 o Programs, Activities, and Resources ' o Fulfillment of Matching and Leveraging Requirements Pnonty #2 Rehabilitate the City's Existing Single-Family and ' Multi-Family Housing Stock in order to Preserve the City's Neighborhoods II-4 t • One Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources o Fulfillment of Matching and Leveraging Requirements Pnority #3 Provide Supportive Housing Needs Assistance for "At-Risk" Population II 6 0 One-Year Goals for Fiscal Year 1991/92 o Programs, Activities, and Resources 0 Fulfillment of Matching and Leveraging Requirements Pnority #4 Provide Opportunities for Homeownership, for ' Low/Moderate Income Residents Particularly for First-Time Homebuyers Through Private Projects and Funding Sources II-8 ' 0 One-Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources ' 0 Fulfillment of Matching and Leveraging Requirements Huntington Beach Table of Contents CHAS Annual Performance Report 1 December 28, 1992 TABLE OF CONTENTS Page Priority #5 Provision and Preservation of Affordable Housing for ' Residents with Special Needs, Especially for Large Fanulies and Elderly II-10 ' • One-Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources o Fulfillment of Matching and Leveraging Requirements ' Priority #6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and ' Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project Areas as Required by the California Health ' and Safety Code II-12 • One-Year Goals for Fiscal Year 1991/92 o Programs, Activities, and Resources ' o Fulfillment of Matching and Leveraging Requirements B GEOGRAPHIC DISTRIBUTION OF RESOURCES II-13 tIII OTHER ACTIONS III-1 A. PUBLIC POLICIES III-1 B INSTITUTIONAL STRUCTURE III-2 C INTERGOVERNMENTAL COOPERATION III-2 D PUBLIC HOUSING IMPROVEMENTS III-3 E PUBLIC HOUSING RESIDENT INITIATIVES III-3 ' F AFFIRMATIVELY FURTHERING FAIR HOUSING III-3 Huntington Beach Table of Contents CHAS Annual Performance Report 11 December 2$ 1992 TABLE OF CONTENTS Page IV ASSESSMENT OF ANNUAL PERFORMANCE IV-1 ' A. EFFECTIVENESS IN ACHIEVING FIVE-YEAR STRATEGY OBJECTIVES AND GOALS IV-1 ' B FUTURE ACTIONS TO UNDERTAKE TO IMPROVE PERFORMANCE IV-2 V APPENDIX V-1 ' A. PUBLIC REVIEW PROCESS VI-1 ' A.COMMENTS RECEIVED VI-1 t 1 Huntington Beach Table of Contents CHAS Annual Performance Report 111 December 28, 1992 L INTRODUCTION Title I of the National Affordable Act established the requirement that States and local governments that apply for direct assistance under certain HUD programs have a Comprehensive Housing Affordability Strategy (CHAS) approved by HUD ' The Act also requires jurisdictions that submitted a full five- year CHAS for Fiscal Year 1991/92 must submit an annual performance report for Fiscal Year 1991/92 Submission of the performance report for Fiscal Year 1991/92 to HUD must be made by October 1, 1992 but no later than December 31, 1992 ' The Huntington Beach CHAS Annual Performance Report consists of two components The first component describes the City's progress in carrying out the One-Year Action Plan for Fiscal Year ' 1991/92 set forth in the Five-Year CHAS The second component includes an analysis of the City's one-year performance in relation to meeting its five-year goals and any adjustments ' which will be made as a result 1 1 i i 1 Huntington Beach Introduction CHAS Annual Performance Report 1_1 November 25 1992 H. ANNUAL PERFORMANCE A. RESOURCES MADE AVAILABLE ' This section of the Annual Performance Report discuss resources made available, by source and by administering agency It also includes a comparison between actual resources received versus resources planned to receive in the CHAS annual plan Specific program activities undertaken by the City are described under each priority and comparison is made between the City's performance during the past year and goals identified in the One-Year Action Plan This discussion also identifies resources pursued, as well as categories of residents assisted (For a detailed description of implementing programs, refer to the City's Five-Year CHAS or the Annual Plan for Fiscal Year 1992/93 ) Following this discussion of program activities, a description of how matching/leveraging requirements were fulfilled is provided for each priority Discussions on geographic allocation of resources and pattern of actual ' investment compared to planned investment pattern are consolidated for all priorities and provided at the end of this section ' For the purpose of CHAS annual performance reports, HUD has established the following income categories ' 0 Very Low Income (0-30 percent of Area Median Family Income) 0 Very Low Income (31-50 percent of Area Median Family Income) 0 Low Income (51 - 80 percent of Area Median Family Income) o Moderate Income (81-95 percent of Area Median Family Income) o Middle Income (96-120 percent of Area Median Family Income) ' For this Annual Performance Report, Middle Income category has been combined with Moderate Income category to include households earning between 81 and 120 percent of the area median family income The 1992 HUD- established median family income for Anaheim-Santa Ana area is $52,700 1 Huntington Beach Annual Performance ' CHAS Annual Performance Repon II-1 December 2$ 1992 1 Priority # 1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower Income Households One-Year Goals for Fiscal Year 1991/92 o To develop a plan with City officials in cooperation with local lenders for development of target areas ' o To maintain second units as an option to rehabilitation and increased rental assistance for elderly o To negotiate development of 92 unit project in Talbert-Beach o To determine feasibility of using HOME Program funding for new ' construction of affordable housing Programs, Activities, and Resources A total of 764 households were provided with rental assistance through the Section 8 Certificate and Voucher programs Of these 764 households assisted, 213 were elderly households, 355 were small families and 196 were large families ' Program IA New Construction A significant amount in Redevelopment Set-Aside funds was committed in the previous Fiscal Year 1990/91 for the development of affordable housing However no assisted housing units were completed during the last fiscal year due to the long time frame involved with new construction projects iA total of $750,000 in Redevelopment Set-Aside funds was used to assist in the development of the 164-umt Five Points Senior Villas This project is currently under construction and the units, including 48 assisted units, will come on line during Fiscal Year 1992/93 ' The City is currently negotiating a Disposition and Development Agreement with the project developer of the Talbert Beach project which has been reduced from 92 to 88 units Project developer had already achieved ' entitlement for two of the three parcels on the project site Huntington Beach evaluated the feasibility of using HOME funds for a new construction project and will use $426,150 of the City's total $881,000 HOME Huntington Beach Annual Performance CHAS Annual Performance Report 11-2 December 2$ 1992 j s 0 entitlement for construction and/or a land write-down on four rental units for very low income households during Fiscal Year 1992/93 Also, consistent with AB 315, Huntington Beach will be preparing a Compliance Plan for each of its five redevelopment project areas, which sets forth a strategy to fulfill inclusionary housing production requirements Expenditure of Set-Aside funds will be evaluated as part of these plans Program IB Second Unit Ordinance Huntington Beach amended its zoning ordinance by adding a new subsection ' pertaining to second units in single-family residences Applications for second units construction currently require a Conditional Use Permit Program 1 C Section 8 Rental Assistance The City was successful in acquiring an additional allocation of 82 Section 8 certificates and 17 vouchers for Fiscal Year 1991/92 Approximately $5,105,000 was granted by HUD to subsidize a total of 764 very low income households in Huntington Beach under the Section 8 programs Of these 764 households, 213 were elderly households, 355 were small families and 196 were large families Fulfillment of Matching and Leveraging Requirements Recipients of Section 8 vouchers and certificates were required to leverage the rental assistance by paying up to 30 percent of their income on rents Huntington Beach Annual Performance 1 CHAS Annual Performance Report II-3 December 28, 1992 1 • � 1 Priority #2 Rehabilitate the City's Existing Single-Family and Multi-Family Housing Stock in order to Preserve the City's Neighborhoods One-Year Goals for Fiscal Year 1991/92 ' o During FY 1992, rehabilitate 80 single family properties for the benefit of low and moderate income households o To rehabilitate 36 units with Rental Rehabilitation Program funds o To establish loan policy and program guidelines for uses of Redevelopment Housing Set Aside Funds o To develop a monitoring plan and survey schedule to assess marginal ' residential areas of the City o To handle 300 code enforcement actions o To discuss with local lenders their increased participation in rehabilitation programs Programs, Activities, and Resources Huntington Beach accomplished rehabilitation of 25 owner-occupied and 44 rental units during Fiscal Year 1991/92, assisting 26 very low income (0-30010 of County median), 25 very low income (31-50010 of County median), and 18 low income households Of these 69 households assisted, 11 were elderly households, 52 were small households, and 6 large households Program 2A Owner Occupied Rehabilitation This program utilizes CDBG funds and program income to assist low and moderate income owner-occupants to rehabilitate their units Last year, a total of 24 loans amounting to $304,958 were made to perform rehabilitation works and one loan in the amount of $18,000 was made to eliminate spot blight Of these 25 units rehabilitated, 11 were mobile homes occupied by elderly households, 8 were small units, and 6 were large units An estimated 40 lower income persons benefitted from this assistance Huntington Beach Annual nnual Performance ' CHAS Annual Performance Report 11-4 December 2$ 1992 Program 2B Rental Rehabilitation CDBG Multi-Fanuly Rehabilitation offers assistance to multi-family property owners to rehabilitate their buildings Ten loans were issued utilizing $218,675 in CDBG funds A total of 44 units were rehabilitated and approximately 176 lower income residents benefitted from this assistance All units rehabilitated were occupied by small households with an estimated average household size of four persons per unit Program 2C Code Enforcement During Fiscal Year 1991/92, Huntington Beach expended $36,625 in CDBG funds for the administration of the City's Code Enforcement program Approximately 739 inspections were made Areas served by this program included Oakview area (Tract 994 02), Amberleaf area (Tract 994 13), Florida/Yorktown (Tract 993 05), Oldtown (Tract 993 03), and South Shores (Tract 992 14) Program 2D Increased Leveraging of Private Resources Due to the strengthening of the Community Reinvestment Act, local lenders are now strongly encouraged to demonstrate significant commitment to local community development efforts Program 2E Rehabilitation Rebates No owners applied for assistance under this program during Fiscal Year 1991/92 Program 2F Monitor Marginal Neighborhoods The City has developed a monitoring plan and survey schedule to assess marginal residential areas of the City The City has begun its Housing Inventory Survey in October, 1992 for the purpose of determining the general condition of the City s housing stock This survey is being focused upon single-family dwellings, apartments, and overall neighborhood conditions The survey is expected to take approximately ten to twelve months and will provide valuable information on identifying both housing and neighborhoods in need of possible rehabilitation/enhancement The monitoring plan will begin in Fiscal Year 1992/93 Fulfillment of Matching and Leveraging Requirements The City's rehabilitation programs, other than rental rehabilitation, do no require matching of funds Huntington Beach Annual Performance CHAS Annual Performance Report 11-5 December 2$ 1992 1 i Priority #3 Provide Supportive Housing Needs Assistance for "At-Risk" Population One-Year Goals for Fiscal Year 1991/92 ' o To develop guidelines for both the emergency foreclosure and rent relief programs in anticipation of future year funding o To continue financial support for services of the Orange County Fair Housing Council ' o To establish formal network of homeless assistance, including job training, day care and shelter assistance o To provide 25 elderly home sharing matches Programs, Activities, and Resources During Fiscal Year 1991/92, the City contributed $129,567 in CDBG funds to social service agencies that provide housing-related services to residents of Huntington Beach and other nearby communities Approximately 12,572 Huntington Beach residents were served by this agencies Program 3A Orange County Fair Housing Council During Fiscal Year 1992, the City had contributed $34,417 in CDBG funds to the Fair Housing Council of Orange County A total of 2,004 persons were assisted Program 3B Coordination with Social Service Agencies During Fiscal Year 1991/92, the City reorganized its Human Resources Board to achieve an appropriate combination of services for the population at risk of becorning homeless The City contributed a total $95,150 in CDBG monies to the social service agencies listed below These agencies provided housing-related services to approximately 10,568 Huntington Beach residents, inclusive of approximately 500 homeless persons accommodated in emergency shelters and transitional housing facilities Huntington Beach Annual Performance CHAS Annual Performance Report 116 December 28, 1992 # of Amount of Huntington CDBG Beach Social Service Agency Awarded Residents Served Community Services Program $8 500 400 Episcopal Service Alliance $9 650 788 Interval House $17 000 200 Orange Coast Interfaith $5 000 278 Orange County Youth and Family Service $5 000 60 1 Project Self Sufficiency $35 000 926 Salvation Army $5 000 7 890 Shelter for the Homeless $10 000 26 Total $95 150 10 568 Source CDBG Grantee Performance Report for Fiscal Year 1991/92 Program 3C Emergency Foreclosure Program The City did not pursue this program due to the lack of appropriate funding sources Program 3D Emergency Rent Relief The City did not pursue this program due to the lack of appropriate funding sources Fulfillment of Matching and Leveraging Requirements All social services were funded partially with CDBG morues Social service agencies were required to leverage City's assistance with funding from other sources, including private donations Huntington Beach Annual Performance CHAS Annual Performance Report 1 -7 December 28, 1992 i • • Priority #4 Expansion of Housing Stock for All Segments of the Community One-Year Goals for Fiscal Year 1991/92 ' o To formalize written guidelines for a first-time homebuyer program, confirm lender participation and develop public information campaign 1 o To publish and market the program and financial guidelines for the Shared Equity Program ' o To work with local lenders to establish a Mortgage Credit Certificate Program Programs, Activities, and Resources 1 The City executed a Disposition and Development Agreement on the 68-umt Third Block West Project with 33 units reserved for middle income first-time homebuyers However, these units will not come on line until probably Fiscal Year 1993/94 due to the long time-frame of mediation and litigation the City has been involved in Program 4A Financial Assistance for First-Time Homebuyers The City contacted local lenders on making home mortgage financing available for first-time homebuyers Program 4B Shared Equity Program The City executed a Disposition and Development Agreement (DDA) with the developer of the Third Block West project during last fiscal year The City will use $825,000 in Redevelopment Set-Aside funds to assist in the development of the Third Block West project, which is a 68-unit I condominium project with 33 units reserved for middle income first-time buyers The City is also currently negotiating a DDA with the developer of the Seaview I project which contains a total of 88 condominium units The City plans to use $750,000 in Redevelopment Set-Aside funds to buy down the cost on 25 of these units to make them affordable to middle income first- time buyers Both DDAs include a Shared Equity/Second Trust Deed component Huntington Beach Annual Performance CHAS Annual Performance Report II-g December 28� 1992 Program 4C Mortgage Credit Certificate Program This program is currently not authorized Fulfillment of Matching and Leveraging Requirements Private funds were combined with Redevelopment Set-Aside funds for home ownership projects within the redevelopment project areas i 1 Huntington Beach Annual Performance 1 CHAS Annual Performance Report II-9 December 28, 1992 Priority #5 Provision and Preservation of Affordable Housing for Residents with Special Needs, Especially for Large Families and Elderly One-Year Goals for Fiscal Year 1991/92 o To increase marketing efforts toward elderly single-family homeowners and large families with properties in need of rehabilitation 1 o To continue to provide grant funds to Social Service Agencies which serve the supportive needs of special populations ' o To target areas for the construction and rehabilitation of units for elderly and handicapped, close to transportation and life services 1 o To coordinate rental assistance needs with the Orange County Housing Authority 1 o To develop an interest rate write-down program to preserve existing multi- family affordable housing projects Programs, Activities, and Resources During Fiscal Year 1991/92, the City contributed $36,600 in CDBG funds to social service agencies that provide supportive services to elderly persons in Huntington Beach An estimated 1,131 Huntington Beach elderly residents were served Also, the City provided roommate-matching service to 140 semors Program 5A Single Family Rehabilitation Program ' The City has approximately 3,200 mobile homes, many are occupied by elderly households The City promoted, through Channel 3 News and a small 1 seminar conducted at a mobile home park, the availability of rehabilitation loans for mobile homes Also, elderly owner households were eligible for rehabilitation programs available city-wide for owner households (Refer to Program lA for other achievements during Fiscal Year 1991/92 ) Program 5B Supportive Services for Elderly The City contributed a total $36,600 in CDBG monies to the following social service agencies that provided supportive services to approximately 1,131 Huntington Beach elderly residents Huntington Beach Annual Performance CHAS Annual Performance Report II-10 December 28, 1992 ' of Amount of Huntington CDBG Beach Seniors Social Service Agency Awarded Served Feedback Foundation Inc $17 000 742 Huntington Valley Adult Day Care $5 000 33 Orange County Consolidated Transportation Service $14 600 356 1 Total 1 $36 600 1131 Source CDBG Grantee Performance Report for Fiscal Year 1991/92 In addition, the City used general funds to operate the Senior Shared Housing Program The City was successful in matching 140 seniors under the City's Senior Home Sharing program Also, as previously indicated 213 elderly households received Section 8 rental assistance during Fiscal Year 1991/92 ' Program 5C Handicapped Grant Program No homeowners or investor-owners requested assistance under this program Thus no handicapped grants were made during last fiscal year ' Program 5D Preserving Affordable Multi-Family Housing As part of the City's Housing Element amendment, an inventory and description of the City's assisted housing stock was prepared and programs were adopted to facilitate their preservation None of the City's assisted housing projects was at risk of converting to market rate housing during the last fiscal year However the City will continue to monitor the status of these projects 1 Fulfillment of Matching and Leveraging Requirements Social service agencies supported by the City utilized CDBG funds to 1 leverage a variety of private and non-Federal funds Rehabilitation loan applicants were required to seek funding from other sources, such as private lending institutions, to leverage City loans when costs of improvements exceeded maximum loan linuts prescribed under the rehabilitation programs Huntington Beach Annual Performance CHAS Annual Performance Report II-11 December 28, 1992 1 ' Priority #6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project IAreas as Required by the California Health and Safety Code ' Fiscal Year 1991/92 One-Year Goals o To develop a displacement assistance policy and target funds for financial ' assistance o To assure that mobile home residents are not displaced without assistance Programs, Activities, and Resources Program 6A Mobile Home Ordinance This ordinance provides minimum standards for an acceptable mobile home relocation assistance plan if a mobile home park is converted to other uses (Refer to Program 613 for accomplishment ) Program 6B Assistance to Drsplacees Relocation assistance was provided to 34 mobile home occupants in the Driftwood Mobile Home Park As part of the City's redevelopment objective for the Main Pier Redevelopment Project Area, an estimated 200 mobile home occupants in the Driftwood Mobile Home Park will be relocated to make room for redevelopment activities The City expended $190,385 in CDBG funds during last fiscal year to pay for the consulting fees for the relocation of residents and businesses in Main Pier area An agreement was reached between the City's Redevelopment Agency and tenants in Driftwood Mobile Home Park that the tenants will not be displaced without assistance During last fiscal year the Redevelopment Agency purchased 34 mobile homes in the Driftwood Mobile Home Park and paid relocation assistance to those 34 households using Redevelopment monies Fulfillment of Matching and Leveraging Requirements Displacees may leverage their relocation assistance with private funds r Huntington Beach Annual Performance CHAS Annual Performance Repon II-12 December 28, 1992 1 B GEOGRAPHIC DISTRIBUTION OF RESOURCES AND PATTERN OF INVESTMENT The geographic distribution of resources committed by the City during Fiscal Year 1991/92 was consistent with the goals and objectives identified in the City's Five-Year CHAS Huntington Beach has targeted several neighborhoods characterized by high ' levels of housing deterioration for rehabilitation assistance These Neighborhood Enhancement Target areas include the following ten census tracts 995 08, 994 10, 994 11, 994 02, 994 13, 993 05, 993 02, 993 03, 992 20, and 99214 Code enforcement, Operation LOGOS, and residential rehabilitation loans are being focused in these areas as identified on the following map ' During Fiscal Year 1991/92, a total of 739 inspections were performed by the City's Code Enforcement division Locations for inspections made included Oakview area (Tract 994 02), Amberleaf area (Tract 994 13), Flonda/Yorktown (Tract 993 05), Oldtown (Tract 93 03), and South Shores (Tract 992 14) Owners ' and investor-owners cited for code violations were informed of rehabilitation loans available to make corrective repairs or improvements A total of 24 owner-occupied and 44 rental units were rehabilitated with assistance from the City's rehabilitation programs The City also has five Redevelopment Project Areas, where much of the affordable new residential construction was focused In Fiscal Year 1991/92, the Redevelopment Agency executed a Disposition and Development Agreement with the developer of the 68 unit Third Block West project with 33 units reserved for middle income first time homebuyers This project will be located in the Main Pier Redevelopment Project Area Other programs and services are provided by the City and other agencies on a city-wide basis Huntington Beach Annual Performance CHAS Annual Performance Repon II-13 December 28, 1992 G "uuu u u u'u u u u u�u�u�u�� O �✓ � DDEDOOmmDDD000DOmmDD00DO IQ � OD DO DOEDEDDUDODOmmDODOEDDOU O ` O DO ED DO 11 DO ED DO DO ED DO DO ED ED m mUD O ODEDmmEDDODOEDEDDODODODO11Doon DOmmEDD DO DOmmDDDDODmmDOODmODmmDO 011 pq PHa m m OO o 0o a � lc� PACIFIC COAST�HWAY PACIFIC COAST HGHWAY H jitJGTON BEACH MU"QPAL BEACH prev R 6,1983 PACIFIC OCEAN AD-no 507'M--R 20,1982 PAGING OCE4N ' IIL OTHER ACTIONS ' A. PUBLIC POLICIES The Huntington Beach Five-Year CHAS indicated the City has a need for additional homeless facilities As a response to this identified need, the City adopted Ordinance No 3108 in 1991 to allow Single Room Occupancy units in Commercial Zones and within North Huntington Center Specific Plan area Ordinances No 3108-3111 were adopted simultaneously to define development guidelines and parking requirements for SRO developments in the permitted zones The City also adopted an inclusionary housing policy which requires all new residential projects, regardless of project size, to include an affordable housing component Developers of small size projects may choose to pay an in-lieu fee for affordable units Affordable units amounting to ten percent of project development is required for property that has existing zoning in place and is not requesting a change in land use status For those developers entering into a development agreement with the City or projects requiring a general plan amendment or zone change 20 percent of the units are required to be set-aside as affordable housing In return for providing the affordable housing component, developers may be assisted with redevelopment set-aside funds, or projects may ' be subject to reduced development standards Also during Fiscal Year 1991/92, the City Council appointed a task force to ' make recommendations to the Council on affordable housing The task force was given the charge of exploring the various aspects of affordable housing and recommending an affordable housing strategy to implement the City's adopted Housing Element The goal is to develop a long range affordable housing plan which addresses the projected needs of the community and achieves the expectations of regional, State, and Federal regulations These public policies will serve to facilitate the creation of affordable housing in the community Huntington Beach Other Actions CHAS Annual Performance Report III-1 December 2$ 1992 B INSTITUTIONAL STRUCTURE ' Huntington Beach has initiated a series of efforts to restructure its housing service delivery system in order to more efficiently provide housing services to its residents The City restructured the organizational capacity of its Econonuc Development and Community Development departments during the last fiscal year The ' Community Development Department is now responsible for housing rehabilitation programs, the HOME program, and the housing element The Economic Development Department has maintained responsibility for ' implementation of redevelopment housing programs, and for administration and overseeing of the CDBG program C INTERGOVERNMENTAL COOPERATION The City works with the State, local and private agencies in obtaining funding and providing housing-related services Huntington Beach applied for and obtained funds from the following agencies o HUD (Community Development Block Grants) o HUD (Home Investment Partnership Program (HOME)) o HUD (Section 8 Rental Assistance) In Fiscal Year 1991/92, Huntington Beach provided CDBG funds to the ' following local non-profit agencies that provide housing-related services o Community Services Program o Episcopal Service Alliance o Interval House o Orange Coast Interfaith o Orange County Youth and Family Service o Project Self-Sufficiency o Salvation Army ' o Shelter for Homeless The City also contributed CDBG funds to the following agencies that provide supportive services for the City's elderly residents o Feedback Foundation Inc o Huntington Valley Adult Day Care o Orange County Consolidated Transportation Service Huntington Beach Other Actions ' CHAS Annual Performance Repon III-2 December 2$ 1992 1 The City has been and will be supportive of direct applications for funds for local CHDOs and other entities, including the Habitat for Humanity The City will ' support all future rehabilitation efforts by other entities except when a project's objectives are not consistent with the objectives of the City In addition, the City will continue to support funding applications for local non-profit service providers, and the City will provide notice to non-profits on its bid list when it receives a Notice of Funding Availability (NOFA) for programs related to affordable housing 1 D PUBLIC HOUSING IMPROVEMENTS There are no public housing projects located in the City E PUBLIC HOUSING RESIDENT INITIATIVES Not applicable F AFFIRMATIVELY FURTHERING FAIR HOUSING ' As part of the City's 1989 Housing Element Update, the City had adopted the following policies to ensure accessibility to decent housing for all o Affirm a positive action posture to assure that unrestricted access is available to the community o Promote housing which meets the special needs of handicapped and elderly persons o Encourage the provision of adequate number of housing units to meet the needs of families of all sizes rSpecifically, the City will continue to take the following actions to implement the above policies o Continue to support fair housing services provided by the Orange County Fair Council o Continue to make available Redevelopment Agency-owned property within the Talbert-Beach Redevelopment Area for the construction of senior citizen and/or low and moderate income housing o Implement state and federal laws for access and adaptability for the physically handicapped Continually adopt updates to the State Huntington Beach Other Actions CHAS Annual Performance Report III-3 December 28, 1992 Uniform Building and Housing Codes to reflect current accessibility requirements o Fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods r i i i i i I Huntington Beach Other Actions ' CHAS Annual Performance Repon 1114 December 28, 1992 IV. ASSESSMENT OF ANNUAL PERFORMANCE A. EFFECTIVENESS IN ACHIEVING FIVE-YEAR STRATEGY OBJECTIVES AND GOALS Huntington Beach was successful in pursuing a variety of funds for the provision of affordable housing The City indicated in its One-Year Action Plan of the Five-Year CHAS that $700,000 in CDBG funds would be expended on housing ' rehabilitation and supportive housing services A total of $934 810 in CDBG funds was actually expended on such activities during the last fiscal year Approximately $7,000,000 in Redevelopment Set-Aside funds accumulated since adoption of the Redevelopment Plan, inclusive of the $1,041,548 received last fiscal year, was available for affordable housing development Also, $110,000 in Rental Rehabilitation program funds was received for multi-farruly rehabilitation activities The City was also successful in acquiring an additional allocation of Section 8 certificates and vouchers for Fiscal Year 1991/92 ' Overall, the City was successful in meeting all but the following two annual goals for Fiscal Year 1991/92 o Rehabilitate 80 single-family properties o Formalize written guidelines for a first-time homebuyer program, confirm ' lender participation and develop public information campaign As discussed in Section II of this report the City achieved rehabilitation of 25 of ' the targeted 80 single-family homes While the City was not able to achieve its prior one-year goal, the City does not anticipate any problem in achieving the five-year goal of rehabilitating 200 single-family homes The City's CHAS Annual Plan for 1992/93 indicates that the City has funds to provide owner- occupied rehabilitation loans to 47 homes, leaving a total of 128 units to be rehabilitated during the next three CHAS annual cycles, or approximately 43 ' units each fiscal year Also, although the City did not formalize written guidelines for a first-time ' homebuyer program, the City has been actively promoting homeownership opportunities through redevelopment activities Two projects to be assisted with Redevelopment Set-Aside funds during the next coming year involve a shared ' equity component The City does not intend to change the existing five-year goals as described in the Five-Year CHAS However, the order of housing priorities from the Five- Year CHAS has been reorganized based on the relative importance of each Huntington Beach Assessment of Annual Performance ' CHAS Annual Performance Report IV-1 December 28, 1992 B FUTURE ACTIONS TO UNDERTAKE TO IMPROVE PERFORMANCE Four actions the City has or can undertake to improve future performance i include 1) timely submittal of the Annual CHAS Plan for 1992/93, 2) increased coordination between City departments, 3) alternative funding sources, and 4) ' advertising of City rehabilitation program 1 The City of Huntington Beach has expended considerable resources to ensure that the 1992/1993 CHAS Annual Plan is submitted in a timely fashion This effort will allow the City to coordinate with the federal funding cycle and CHAS Annual Plan deadlines The timely submittal of the 1992/1993 Annual Plan will provide Huntington Beach the opportunity to pursue and implement a variety of housing programs ' 2 The reorganization of the City's Economic Development and Community Development departments allows for increased coordination between the two departments ' 3 A number of alternative funding sources are available to rehabilitate or increase a community's housing stock Both local redevelopment monies and Federal HOME monies provide a significant opportunity to achieve these ' goals 4 To improve public outreach for the City's rehabilitation programs, the City ' will periodically advertise programs in the local paper and Channel 3 to promote interest in rehabilitation efforts Huntington Beach Assessment of Annual Performance ' CHAS Annual Performance Report IV-2 December 28, 1992 V. APPENDIX A. PUBLIC REVIEW PROCESS ' Consistent with Federal requirements, the City provided numerous opportunities for public input in formulation of the City's housing strategy, including the following ' 1 Public comment period Pursuant to the CHAS citizen participation guidelines, copies of the proposed CHAS Annual Plan were made available for public review and comment from November 25th to December 24th, 1992 A summary of the proposed CHAS Annual Plan for FY 1993 was published in the Los Angeles Times and Orange County Register and was tmade available in the following public places 0 Econorruc Development Department 0 Community Development Department 0 City Clerk's Office 0 Central Library ' 0 Chamber of Commerce ' o Roger's Senior Center Also a copy of the Annual Performance Report has been sent to each of the City's Citizens Advisory Board (CAB) members ' 2 Access to records Reasonable access regarding the use of housing funds g g g in the City are generally available at the City's Community Development Department and Economic Development Department ' B COMMENTS RECEIVED No comment on the Huntington Beach Annual Performance Report for Fiscal ' Year 1991/92 were received Huntington Beach Appendix CHAS Annual Performance Report ` -1 November 2$ 1992 STATE OF CAUFORNIA County of Orange I am a Citizen of the United States and a 1 " resident of the County aforesaid, I am over the 'Q age of eighteen years, and not a party to or interested In the below entitled matter I am a 01 principal cleric of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general � I arculatlon, printed and published In the City of Huntington Beach, County of Orange, State of Cafiforma,and that attached Notice Is a true and complete copy as was printed and published In the Huntington Beach and Fountain Valley Issues of said newspaperto wit the issue(s) of PUBLIC NOTICE — 1 Rehabilitate the aiy s CITY OF PUBLIC NOTICES existing substandard single family and multi family HUNTINGTON BEACH live to the particular priori housing stock in order to NOTICE OF ties programs and re preserve the City s neigh December 12 1991 (PUBLIC HEARING sources which will best borhoods FOR SUMMARY meet the affordable hous 2 Provide opportunities ing challenges ahead of us for homeownership for first January 9 1992 OF COMPREHENSIVE CONTEN f time buyer low/moderate February 6 1992 HOUSINC The Comprehensive income residents AFFORDABILITY Housing Affordability Strat I 3 Provide supportive STRATEGY egy (CHAS) is comprised housing needs and as A public hearing before of three main components sistance for at risk pop the City Council regarding The Community Profile ulation A'I the CHAS is scheduled for The Five Year Strategy and 4 Expand the, housing Date February 18 1992 the One Year Action Plan stock for all segments of Place 2000 Main Street 1 Community Profile This the community particularly City Council Chambers section described the pop lower income households Time 700 PM iulation characteristics 5 Preserve existing of PURPOSE housing market conditions fordable housing for the The federal government and housing needs of low City residents with special (has established a new re and moderate income farm Ineeds especially large quirement that each state lies homeless families and (families and elderly house land local government must individuals and others with holds prepare a strategy for ad special needs who require 6 Ensure that persons dressing affordable hous supportive services displaced by redevelop ing needs within the com 2 Five Year Strategy ment activities receive fi mundy prior to receiving Based on the housing nancial assistance and-re ifederal housing assistance needs identified in the placement units on a one Huntington Beach receives Community Profile this sec for one basis approximately $1 4 Million tion summarizes the City s PUBLIC COMMENTS in Block Grant funds and priorities programs re The CHAS will be avail I declare, under penalty ty of p •eRu•yN r that the this Syear is eligible for up sources and organizational able to the public for ex Dln I$true and�rre - to 900 000 in HOME n five text stos address the amination and comment for turp� "� g Ye a sixty day period begin To comply with this law 3 One Year Action Plan ning December 12 1991 the City has completed a This section summarized Copies of the CHAS are February 6 2 draft Comprehensive Hous the City s Housing initia available for review at 2000 Executed an y , �� ing Affordability Strategy lives to be implemented Main Street 5th floor Eco (CHAS) The final CHAS between October 1 1991 nomic Development De at Costa Mesa, California. will be submitted to the to September 30 1992 partment between the 1 Federal Department of HOUSING STRATEGY hours of 800 am and 500 Housing and Urban Devel PRIORITIES PM Monday through Fri opment (HUD) this Febru The City of Huntington! iday and Monday through ary Beach as established the iSaturday at the Huntington �.- The City of Huntington following affordable hous Beach Central Library Si nature Beach views this new re ing priorities for the next ;7111 Talbert Avenue Hun quirement as an op five years� tington Beach portunity to assess the Published Huntidgton City s housing needs rela Beach/Fountain Valley In dependent December 12 1991 January 9 February) 6 1992 122 99r Il PROOF OF PUBLICATION REQUE$G FOR CITY COUNC16 ACTION ED 92-09 Date February 18 1992 ibmitted to Honorable Mayor and City Council Members A-" 0%opPD aS Submitted by Michael T Uberuaga, City Administrators?" Lqql Prepared by Barbara A Kaiser Deputy City Administrator/Economic e Development ' Subject COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) N -cc'n �r kn Mrn Consistent with Council Policy? Yes [ ] New Policy or Exception Statement of Issue Recommendation Analysis Fundinq Source Alternative Actions Attachme`% STATEMENT OF ISS LEE Title I of the National Affordable Housing Act of 1990 requires that in order to apply for certain HUD programs local governments must have an approved Comprehensive Housing Affordability Strategy, or CHAS Huntington Beach currently receives approximately $1 4 million under Community Development Block Grant (CDBG) participates in Section 8 via the Orange County Housing Authority and will be eligible for up to $900 000 in HOME program funds None of these monies will come to the City without an approved CHAS RECOMMENDATION 1 Open the Public Hearing and hear all those wishing to speak on the CHAS 2 Adopt the attached Comprehensive Housing Affordability Strategy (CHAS) and instruct staff to forward it to HUD for approval 3 Authorize the Administrator (as part of the CHAS submission) to sign a certification that the City of Huntington Beach will affirmatively further fair housing and a certification that the City will comply with all Federal requirements relative to the provision of replacement housing and relocation housing ANALYSIS The CHAS has been prepared in response to a federal mandate The legislation requires the CHAS to address 14 specific areas grouped by HUD into three components The components are A Community Profile a Five Year Strategy and a One Year Plan The CHAS requires an annual review and a new document every five years The annual review process allows for amendment of the document as necessary The proposed CHAS is based on the City's adopted Housing Element The information it contains came from the Housing Element the Census the State Department of Finance and SCAG Due to federal funding sources involved and the format specified by law the order of the priorities differ slightly from the Housing Element D P10 5/85 RCA 92-09 February 18, 1992 Page Two i The draft CHAS was prepared by a consultant and reviewed by City staff in both Economic Development and Community Development The document is subject to a mandatory 60 day public review period that began on December 12 1991 and ended February 10 1992 During that period the draft CHAS was available for review at City Hall and the Central Library and was advertised three times in the local paper In addition on January 16 1992 the Citizen Advisory Board (CAB) held a public meeting at the Girls and Boys Club on the CHAS The CAB recommended that the section on the homeless be strengthened by adding more information on runaways and homeless teens That has been done The CAB also discussed the order of priorities and voted to leave the priorities as contained in the draft No other public comments have been received If the City Council adopts the CHAS and authorizes its submission to HUD HUD has 60 days to complete its review and approve the document CDBG funds for FY 1992/93 will not be released to a City that does not have an approved CHAS and applications for the HOME program will not be accepted without a CHAS The annual CHAS update hereafter will be submitted by October 31 as required FUNDING SOURCE None required ALTERNATIVE ACTION Disapprove the CHAS Not approving the CHAS puts at risk between $1 4 million and $2 3 million in federal grants to the City ATTACHMENTS 1 CHAS 2 Minutes of the CAB public meeting on the CHAS MTU/BAK/LDS sar 0769y i / CITIZENS ADVISORY BOARD HOUSING AND COMMUNITY DEVELOPMENT JANUARY 16 1992 MINUTES Members Present Staff Present Sharon Stirling Leigh De Santis Oliver Roney Lisa Moreno Ernesto Barragan Laura Steingold Alan Thatcher Carol Kanode Richard Armendariz The meeting was called to order at 7 12 p m by Laura Steingold CAB Members and staff introduced themselves Minutes from the December 12 1991 meeting were reviewed Oliver Roney's motion to approve the Minutes was seconded by Sharon Stirling The Minutes were unanimously approved Tour of Boys and Girls Club The CAB Members were taken on a tour of the Boys and Girls Club by Rick Cummer the Club's Director The tour was interesting arid enjoyable Discussion of CHAS The Chairperson opened discussion on the CHAS at 7 45 p m An introduction to the CHAS was given by staff Carol Kanode noted that runaway and homeless teens were not included in the "at risk population" described in the CHAS She felt this was an oversight that needed to be corrected The Board agreed Mrs Kanode provided a list of Youth Shelters for inclusion on page 32 In addition she informed staff that the Police Department has compiled a survey on teen runaways that could supplement the narrative Staff asked the Board to consider the order of priorities as established in the CHAS and shared with the Board a memo from Planning suggesting an alternative order From discussion it became clear that the Board felt 1 2 3 and 6 should stay in that order The CAB recommended that the priorities should remain as listed in the Draft CHAS Discussion on the CHAS concluded at 8 30 p m Staff updated CAB Members on the senior affordable housing project at Main and Florida CAB MINUTES January 16, 1992 Page Two Set Next Meeting After consulting calendars it was agreed that the next CAB meeting will be Thursday February 27, 1992 at 7 00 p m at the Boys and Girls Club 2309 Delaware Huntington Beach Adjournment A motion to adjourn was made by Carol Kanode and seconded by Oliver Roney The meeting adjourned at 8 37 p m Sharon Stirling sar 0749y 6 1-e X �'a 7e-4 � Area #2 The Redevelopment Agency is intermittently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach Existing oil facilities located on the 21 acre site are to be relocated on the oil consolidation site Existing High density Residential zoning on the site would permit the development of up to 35 du/a of additional multi-family units Area #3 This area consists of approximately 47 acres designated as Residential Estate Density (2 du/acre) The site is located in the Holly-Seacliff Master Plan area adjacent to the proposed linear park While the area had previously been identified as constrained by oil production, the Master Plan provides for mitigation of oil constraints, through abandoning some wells and creating "oil islands" for the remaining on-site oil facilities Approximately 100 single family dwelling units are already under construction Area #4 Similar to Area #3, this 38 acre site is located in the Holly-Seacliff Mater Plan, which provides for mitigation of existing oil constraints The Master Plan designates this site for an overall average density of seven dwelling units per acre, providing for a total of 269 dwelling units Area #5 McDonnell Douglas has requested that the City consider a portion of their property located on Bolsa Avenue at Springdale as a potential target site for high density multi-family housing Area #6 Scattered vacant school sites belonging to the Ocean View School District as listed below but not shown on the map a Crest View b Glen View c Haven View d Rancho View e Lark View f Meadow View g Park View h Pleasant View 27 • Additional school sites i Gisler I Peterson k Lebard 1 Burke m Gill n Wardlow o Lumb p Arevalos q Bushard - 58 single family detached homes have been approved on this site r Wintersburg Through the City's efforts, over 126 acres of land which had been constrained by oil production activities will be opened up to development This residential acreage will provide for an increase in dwelling units, ranging from low density estate housing, to high density apartments for housing development Table 11 provides a breakdown of the number and type of additional residential dwelling units which could be constructed in Huntington Beach under the City's General Plan Of the City' s total 725 vacant residential acres, 478 8 acres can be considered unconstrained and available for development over the five-year period of the CHAS This acreage will support a maximum buildout of 4,997 dwelling units, ranging in density from 2 to 35 units per acre Nearly half (45 percent) of the potential dwelling units are the Medium- High and High Density residential land use categories, providing opportunities for lower cost housing development Approximately one-quarter of these potential units are designated for Medium Density residential, indicating a significant proportion of future residential growth will be in the form of duplexes and townhomes and lower density apartments and condominiums 28 r re �-�� .� f, a dip funds for social services each fiscal year The City will continue to coordinate the operation of housing programs and supportive services for the more than sixteen County and local social service agencies which receive grant funds Some of the organizations receiving grant funds are the Boys and Girls Club of Huntington Valley, The Center for the Prevention of Child Abuse, Community Services Program, Episcopal Service Alliance, Huntington Beach Community Clinic, Huntington Valley Adult Day Care, Legal Aid Society, the Orange County Consolidated Transportation Service Agency, Pro]ect Self-Sufficiency and the Shelter for the Homeless 5 Year Ob]ective To financially support social service agencies serving low and moderate income households. Transfer approximately $750,000 in 5 years. HOME SHARING Many seniors who would prefer to live independently resort to institutionalized living arrangements because of security problems, loneliness, or an inability to live entirely independently A City-funded shared housing program is currently offered at Roger' s Senior Center in Huntington Beach Roommate matches are made between seniors based on telephone requests In the future, more active program marketing will be undertaken to better advertise the program's availability to seniors in the community 5 Year 0b3ective. To support the "home sharing" concept. Priority #4 - Expansion of housing stock for all segments of the community. particularly lower income households. Pro3ections from SCAG for the City of Huntington Beach are that an additional 6,228 housing units will be needed to meet the community' s needs during the effective period of this CHAS In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing, which can more readily be priced to meet the needs of very low and low income households 59 C RESOURCES Given recent developments at the Federal and State levels in the authorization and funding of housing programs, it is difficult, if not impossible, to project what public resources will be available over the next five years Budget constraints at all levels of government have further complicated the "resources" question Federal Resources and Programs At the Federal level, many HUD Programs have a doubtful future It would appear that the HUD Rental Rehabilitation Program will be terminated Similarly, the HUD Section 202 Elderly and Handicapped Housing, Section 312 Rehabilitation Loan Program and other programs will be ended In their place, the Federal government is likely to fund two programs authorized by the National Affordable Housing Act - the HOME Program and HOPE Programs I, II and III The HOME Program regulations are published This program is designed to replace a number of categorical HUD Programs with a flexible new resource, which allows considerable local government discretion Eligible activities under HOME include * Single family rehabilitation * Multifamily rehabilitation * Substantial reconstruction * New construction * Rental assistance * Acquisition * Homeowner assistance At this time it is not possible to project what will be the impact, if any, of these programs in Huntington Beach In fact, funding levels have not even been finalized for the FY 1992 HOME and HOPE programs At least for Fiscal Year 1992, however, the City may be eligible to receive a direct federal allocation of approximately $881,000 to actual in HOME Program funding No decision on actual activities funded with HOME monies can be made at this time HOPE III funds, another new federal resource, also may prove helpful as a means of encouraging a first-time homebuyer program A HOPE III Planning Grant may prove especially useful in developing local nonprofit capacity The Federal Community Development Block Grant Program (CDBG) , which has been used aggressively by the City for many years, will continue to be a primary source of funds for many City affordable housing programs As previously mentioned, the City will also work closely with the County regarding the availability of Section 8 Certificates and Housing Vouchers for very low income and low income renters 67 • � ,- rPc �"et _p, Local Resources and Programs The City of Huntington Beach' s Redevelopment Agency was authorized to establish an Affordable Housing Fund through the use of Redevelopment Housing Set Aside Funds The City encourages property owners to upgrade and maintain property consistent with the City' s building and property maintenance codes Rehabilitation loans are available to low/moderate households Further wherever dwelling units housing persons of low or moderate income are removed for redevelopment purposes, an equal number of replacement dwelling units at affordable rents will be rehabilitated, developed, or constructed within the project area or city The Talbert Beach Redevelopment Project Area has provided for units at below market purchase prices, plans for an additional 25 units are underway A number of rehabilitation and redevelopment projects will be funded with Redevelopment Agency Housing Set Aside funds over the next five years Work is currently underway to determine how funds will be used for affordable housing needs Redevelopment Housing Set Aside Funds can be used for a variety of options, including the following - Land Disposition and Write-Downs - Site Improvements - Loans - Grants - Issuance ok Bonds - Land and Building Acquisition by Agencies - Direct Housing Construction - Housing Rehabilitation Programs - Rent Subsidies - Redevelopment Funds - Administrative Costs for Non-Profit Housing Corporations The City has accumulated approximately $3,000,000 in the Redevelopment Housing Set Aside Fund, available for future affordable housing initiatives Private Resources and Programs Government resources cannot solve all the City' s affordable housing needs The City believes that these limited funds should be used to supplement and, wherever possible, leverage resources provided by the private sector Local lending institutions will be asked to actively participate in the implementation of this housing strategy It appears that Bank of America, State Bank, First Interstate, Security Pacific, Wells Fargo, Huntington National and Liberty National banks are all willing to participate in affordable housing efforts discussed above in their individual capacities These and other lending institutions are increasingly becoming aware that 69 J (� ►' Yew community development programs for low and moderate income households make good business sense Recent federal legislation, which strengthened the Community Reinvestment Act, has further encouraged local lending institution participation The City will also encourage local lenders to apply for funds from the Federal Housing Finance Board' s Affordable Housing Program (AHP) This two year old program can make subsidized financing available to participating lenders for purchase and rehabilitation of single family and multifamily housing D ORGANIZATIONAL CAPACITY The City' s Economic Development Department and Community Development Department will share responsibility for implementation of the above programs The Economic Development Department is composed of three main sections 1) Housing, 2) Economic Development, and 3) Redevelopment Agency The Community Development Department is composed of two sections 1) Housing, Building and Code Enforcement, and 2) Planning The majority of the affordable housing programs and services described in this CHAS will be carried out by the two Housing Sections There are currently five (5) staff people assigned to Housing 3 in Community Development and 2 in Economic Development In addition, all of the City' s Planning, Code Enforcement and Building staff are involved directly and indirectly in regulation, design, construction, maintenance and quality of the City' s neighborhoods Working in concert with private and non-profit agencies, it is expected that capacity will not be a limiting factor in achieving the above stated objectives 70 ' i • THE CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY FISCAL YEAR 1992 October 2, 1991 'The City of Huntington Beach pledges to provide safe, decent and affordable housing opportunities for all its residents Affordable Housing Strategy Mission Statement City of Huntington Beach 1 • i CITY OF HUNTINGTON BEACH CITY COUNCIL Jim Silva, Mayor Grace Winchell, Mayor Pro Temp Peter Green Jack Kelly Don MacAllister Linda Moulton-Patterson Earle Robitaille CITY ADMINISTRATOR Michael T Uberuaga DEPUTY CITY ADMINISTRATOR - ECONOMIC DEVELOPMENT Barbara A Kaiser CHAS PREPARED BY Craig S Nickerson The Nickerson Group COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) CERTIFICATION The jurisdiction hereby certifies that it will affirmatively further fair housing Signature Michael T Uberuaga City Administrator CERTIFICATION The jurisdiction hereby certifies that it will comply with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, implementing regulations at 49 CFR 24, and the requirements governing the residential antidisplacement and relocation assistance plan under section 104(d) of the Housing and Community Development Act of 1974 (including a certification that the jurisdiction is following such a plan) Signature Michael T Uberuaga City Administrator "W • • CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY TABLE OF CONTENTS PAGE OVERVIEW 1 COMMUNITY PROFILE 4 A Methodology and Data Sources 6 B Resident Characteristics 7 1 Population of Huntington Beach 7 2 Household Profile 7 3 Age of Population 8 4 Race/Ethnicity of Population 9 5 Future Population Projections and Impact on Housing Needs 10 6 Household Income 14 7 Housing Affordability 15 8 Form of Residency 17 C Market and Inventory Conditions 17 1 Existing Housing Stock 17 2 Existing Housing Stock Condition 19 3 Length of Residency 20 4 Market Constraints 21 5 Site Development 23 6 Environmental and Infrastructure Constraints 23 7 Escalating Housing Prices 24 8 Vacancy Rate 26 9 Vacant Parcel Inventory 26 D Housing Needs For General Population 30 1 Affordable Housing for Low and Very Low Income Households 30 2 Rehabilitation Needs 31 3 Need for Additional Standard Housing 31 E Housing Needs For The Homeless and At Risk Population 32 F Special Needs Housing 34 1 Elderly 34 2 Handicapped/Disabled 35 3 Large Families 36 4 Single-Headed Households 36 G HUD Tables - 1A, 1B, 2A, 2B, 2C 38 • • FIVE YEAR STRATEGY A Five Year Strategy - Overview 48 B Priorities and Programs 50 1 Priority #1 - Preservation of the City' s Existing Single Family and Multi-family Housing Stock 51 * Owner Occupied Rehab 51 * Rental Rehabilitation 52 * Code Enforcement 53 * Increased Leveraging of Private Resources 53 * Monitor Marginal Neighborhood 54 2 Priority #2 - Increased Opportunities For Low/Moderate Income Homeownership, Particularly For First Time Homebuyers 55 * Financial Assistance for First Time Homebuyers 55 * Shared Equity Program 56 * Condominium Conversion Ordinance 56 * Mortgage Credit Certificate Program 56 3 Priority #3 - Supportive Housing Needs for "At Risk" Population 57 * Emergency Foreclosure Program 57 *, Emergency Rent Relief 58 * Orange County Fair Housing Council 58 * Coordination with Social Service Agencies 58 4 Priority #4 - Expansion of Housing Stock for All Segments of the Community, Particularly Lower Income Households 59 * New Construction 60 * Second Unit Ordinance 61 * Section 8 Rental Assistance 62 5 Priority #5 - Preservation of Affordable Housing for City Residents With Special 63 • • Needs, Especially for Large Families and the Elderly 63 * Single Family Rehabilitation Program 63 * Supportive Services for Elderly 63 * Handicapped Grant Program 64 * Preserving Affordable Multi-family Housing 64 6 Priority #6 - Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units 65 * Mobile Home Overlay Zone 65 * Assistance to Displacees 65 C Resources 67 1 Federal Resources and Programs 67 2 State Resources and Programs 68 3 Local Resources and Programs 69 4 Private Resources and Programs 69 D Organizational Capacity 70 E Potential Constraints To Affordable Housing 72 F HUD Table 3 71 ONE YEAR ACTION PLAN A Resources for FY 1992 Programs 75 1 Federal 76 2 State 77 3 Local 77 4 Private 77 B Implementation Plan 77 C Monitoring Plan 78 D HUD Tables 4/5A, 5B 82 APPENDIX 1 CHAS Definitions 2 Citizen Participation Summary 3 Federal Programs I OVERVIEW I 1 I OVERVIEW Purpose and Content The Federal government has established a new requirement that each state and local government must prepare a strategy for addressing the affordable housing needs within the community Commencing this next federal fiscal year (October 1, 1991 to September 30, 1992) , federal funding for housing assistance programs will not be provided unless such a strategy is developed by the local government This new strategy is called the Comprehensive Housing Affordability Strategy (CHAS) The City of Huntington Beach due to its coastal location within Orange County and the strong local economic climate, is an ideal environment for family living, commercial enterprise and recreation The City also is proud of its track record in providing for the needs of all of its residents Hence, the City of Huntington Beach views the CHAS requirement as an opportunity to re-evaluate its collective housing needs and to reassess the particular priorities, programs, resources and organizational structure which will best meet the housing challenges ahead of us The CHAS is comprised of three main components, the Community Profile, the Five Year Strategy and the One Year Action Plan 1 Community Profile This section describes the population characteristics, housing market conditions and housing needs of low and moderate income families, homeless families and individuals and others with special needs who require supportive services 2 Five Year Strateav Based on the housing needs identified in the Community Profile, this section summarizes the City' s priorities, programs, resources and organizational structure to address these needs 3 One Year Action Plan This section describes the City' s plans for the period October 1, 1991 to September 30, 1992 to address affordable housing needs The CHAS will be updated annually to reflect changes in priorities, programs or the resources that may be available to effectively carry out the strategy 2 It is important to note that federal housing programs are presently in transition Many existing programs are being phased out In their place, new programs - particularly the HOME Investment Partnership ("HOME") and the Housing Opportunity For People Everywhere ("HOPE") Programs - are not yet available This uncertainty regarding the availability of programs has hampered our ability to develop a strategy (For the benefit of our citizens, a description of many of these federal programs is included as an appendix to this CHAS) Information Sources This document is the result of considerable discussion and input from many different sources, including the City Council, City staff, the Federal, State and County governments, local nonprofits and the residents of the City Citizen input was sought through three mechanisms A Notice of Availability was published in the Orange County Register announcing a 60 day comment period The CHAS was submitted to the Council appointed Citizen' s Advisory Board for Housing and Community Development for review Lastly, the City Council held a Public Hearing on the CHAS The collection and analysis of affordable housing needs in the City has been greatly facilitated by the availability of Federal, State, regional and local reports and data Primary sources of data used on this CHAS are the U S Census for 1980 and preliminary 1990 Census data, the State Department of Finance updates and Southern California Association of Governments (SCAG) analysis and the 1989 Housing Element of the City' s General Plan Of particularly benefit in completing this CHAS have been the most recent Housing Element of the General Plan and information and reports generated by the City' s Community Development Department and Economic Development Department The CHAS document for Fiscal Year 1992 has been prepared by an outside consultant, Craig Nickerson of The Nickerson Group 3 s • COMMUNITY PROFILE 4 COMMUNITY PROFILE The Community Profile Section of the City of Huntington Beach s Comprehensive Housing Affordability Strategy (CHAS) describes the City' s residents and market characteristics and identifies the key housing needs within the community This Community Profile should not be regarded as merely a recapitulation of statistics To the contrary, this description reflects the dynamic nature of Huntington Beach' s housing market Specifically, this section will assess who lives in Huntington Beach, what are the past, current and future housing characteristics in the City, what problems and opportunities exist given the compositions of resident needs and housing characteristics and what actions and resources have historically been used to meet the City' s housing needs A METHODOLOGY AND DATA SOURCES In compiling the data contained in this section of the CHAS, a number of complimentary sources have been used The 1980 United States Census has been widely used In some select instances, census updates during the 1980s and early data from the 1990 United States Census have also been used Unfortunately, most of the 1990 census data is not yet available Other data sources used in this strategy include 1 City of Huntington Beach, 1989 Housing Element Update (1989-1994) 2 HUD Housing Assistance Plan, October 1, 1990 to September 30, 1991 3 City/CDP Profiles for Selected Population and Housing Characteristics, 1990 Census 4 Orange County Homeless Issues Task Force, Revised Future Housing Needs by Income Category as of 1989 5 Demographic Profile and Survey of Homeless Persons Seeking Services in Orange County, Research Committee of the Orange County Homeless Issues Task Force, February, 1990 6 Orange County Shelter/Service List 7 Orange County Public Housing Authority 6 • • The Community Profile section of the CHAS is comprised of three sections 1) Resident Characteristics, 2) Market and Inventory Conditions and 3) Housing Needs In turn, the Housing Needs section of the CHAS is further divided into three parts, 1) housing needs for the general population, 2) housing needs for the homeless and 'at risk" populations, 3) housing needs for the population requiring supportive social services B RESIDENT CHARACTERISTICS 1 Population of Huntington Beach According to estimates of the California Department of Finance, the 1988 population of the City of Huntington Beach was 187, 740 persons This represents a 10 1 percent increase over the 1980 population of 170, 505 persons The 1990 U S Census estimates the population at 181, 519 persons The 1990 Census total would represent a 6 5 percent growth in population over 10 years It is suspected that the 1990 Census population is significantly under counted The use of both 1988 numbers from the City' s Housing Element and the just arriving Census numbers causes figures used in this report to not always add up 2 Household Profile Consistent with the difficulties associated with the 1990 Census the population and household numbers for Huntington Beach are suspect According to City records and California Department of Finance statistics from 1980 to 1988, the number of households increased by 5 9 percent The 1990 Census however, counted fewer people and households than in 1988 If the Census figures are used there has been an increase of only 3 9 percent over 1980 The average size of households in Huntington Beach has decreased from 2 78 persons per household in 1980 to 2 74 persons in 1988, and to 2 62 persons by 1990 The City' s trend toward an aging owner population may be a prime reason that the average household size has declined and will continue to decline Household size is a good indicator for identifying overcrowding in individual generally used as housing units Table 1 shows historic growth in Huntington Beach from 1960-1990 The rapid increase in population and housing stock from 1960 and 1970 was primarily due to the annexation of the East Huntington Beach area during this period SCAG Summary Tape File, July 1991 7 TABLE 1 HISTORIC GROWTH (1960-1990) Year Population # of Households Household Size 1960 11,492 3, 758 2 99 1970 115, 988 33 , 675 3 43 1980 170, 505 --- 2 78 1988 187, 740 --- 2 74 1990 181, 519 68, 879 2 62 Source U S Census 1980, 1990, Calif Dept of Finance Controlled population Estimates for 1-1-88 3 Age of Population Table 2 illustrates the age distribution of Huntington Beach' s residents in 1980 as reported by the Census and in January 1988 as estimated by Urban Decision Systems The median age in Huntington Beach in 1980 was 28 9, as compared to 29 5 in Orange County, 29 9 in California, and 30 0 in the United States According to Urban Decision systems, the median age in Huntington Beach had increased to 31 9 in 1988 This increase in the median age reflects an actual decline in the number of children under 20 years of age in Huntington Beach, indicating a decline in the influx of families with children Considered alongside the limited growth in the City' s young adult population (age 25-34) , these factors support the finding that the City' s housing stock is inaccessible to many first-time homebuyers The middle aged adult population (age 35-44) experienced the greatest increase in population over the 1980-1988 period The generally higher income of this group make it able to afford the City' s housing market The City' s elderly population (those 65 and over) increased from 5 9 percent of the population in 1980 to 7 6 percent in 1988 This is a numerical increase of over 4, 000 persons Nonetheless, this is still below both the County' s (8 3%) and State' s (9 0%) proportion of elderly in 1980 The proportion of elderly persons in Huntington Beach can be expected to continue to increase as those persons between the ages of 35 and 64 (over one-third of the population) grow older, consistent with nationwide trends of a large aging population 8 TABLE 2 CITY OF HUNTINGTON BEACH POPULATION BY AGE GROUP 1980 fi 1988 1980 1988 Age Range Number Percent Number Percent 13 years and under 34,365 20 1 32, 854 17 5 14 to 20 years old 23,311 13 7 21,215 11 3 21 to 34 years old 47,460 27 8 51,059 27 2 35 to 44 years old 24, 724 14 5 34,356 18 3 45 to 54 years old 17,808 10 4 20,276 10 8 55 to 64 years old 12,717 7 5 13 ,705 7 3 65 years and older 10, 120 5 9 14, 268 7 6 TOTAL 170, 505 100 0 187,740 100 0 Male 84, 634 49 6 92,369 49 2 Female 85,871 50 4 95,371 50 8 Median Age 28 9 31 9 Source (a) 1980 U S Census (b) Urban Decision Systems, Demographic Trends, ' 80-' 93 4 Race/Ethnicity of Population The pie charts and Table 3 present the race and ethnic make-up of Huntington Beach in 1980 and 1990 as reported by the Census The majority of Huntington Beach' s population is white However the percentage of white persons has decreased from 90 4 percent to 86 1 percent in 1990, reflecting an influx of other ethnic groups into the community The second largest ethnic group in the City is persons of Spanish/Hispanic origin, representing eight percent of the City's 1988 population, this is substantially below the County-wide proportion of 14 8 percent in 1980 Asian/Pacific Islanders were 4 5 percent of the population in 1980 and have nearly doubled to 8 3 percent in 1990 Blacks, American Indians, and "other" ethnic groups are the least represented groups in Huntington Beach, each comprising just over 5 5 percent of the City' s 1990 population The most significant increases in population between 1980 and 1990 occurred in the Asian/Pacific Islander population (78 percent increase) and Hispanic population (51 9 percent) 9 TABLE 3 POPULATION BY RACE Racial Category 1980 Percent of 1990 Percent of Total Total Population Population White 154, 156 90 4 156,314 86 1 Black 1,218 0 7 1, 687 0 9 Asian 8,453 5 0 15,048 8 3 American Indian 1,204 0 7 1, 157 0 6 Other 5,474 3 2 7,313 4 . 1 TOTAL 170, 505 100 0 181, 519 100 0 Hispanic 13,427 7 9 20,397 11 2 Source 1980 & 1990 U S Census 5 Future Population Projections and Impact on Housing Needs By State law, projections of growth in the entire Southern California region and the housing needed to accommodate this growth are prepared by the Southern California Association of Governments (SCAG) In the Regional Housing Needs Assessment (RHNA) , SCAG estimates future housing needs by estimating growth to the year 1994 and adjusting for regional low-income impaction, desirable vacancy rates, and the projected rate of residential demolition The estimated future needs are shown in Table 4 SCAG has projected that Huntington Beach will need to add 6,228 units between June 30, 1989 and July 1994 to meet the needs of expected new residents, replace demolished or substandard units, and maintain a healthy vacancy rate TABLE 4 HUNTINGTON BEACH FUTURE HOUSING NEEDS Income Group Units Percent Very Low Income 984 15 8 Low Income 1,264 20 3 Moderate Income 1,370 22 0 High Income 2, 610 41 9 TOTAL 6,228 100 00 Source Regional Housing Needs Assessment, 1989-1994 10 • 6 Household Income Huntington Beach uses the Department of Housing and Urban Development ' s (HUD' s) income categories and definitions when referring to the City' s income distribution * Very Low Income Less than 50 percent of the County median income * Low Income Between 51 percent of the County median and the national median income * Moderate Income Between the national median income and 120 percent of the County median income * Upper Income Greater than 120 percent of the County median income Table 5 presents the breakdown of households by income category from the 1980 Census and an income trend report by Urban Decision Systems for 1980 through 1993 The median household income for Huntington Beach in 1980 was $24,015, which was 6 5 percent higher than the median income for Orange County of $22,557 In 1980, a full 43 1 percent of Huntington Beach households earned 120 percent of median income or more, compared to only 33 5 percent earning that level in 1988 Unfortunately, very low income households (which earn less than 50% of County median income) have increased from 18 percent of all households in 1980 to 24 5 percent of all households in 1988 Orange County median household income increased 97 percent during the 1980-1988 period from $22, 557 to $44,400 TABLE 5 CITY OF HUNTINGTON BEACH INCOME GROUPS 1980 & 1988 1980(a) 1988(b) Income Category Number of Percent Number of Percent Households Households Very Low Income 10,980 18 0 16,778 24 5 Low Income 9, 850 16 2 12,753 18 7 Moderate Income 13, 835 22 7 15, 939 23 3 Upper Income 26,298 43 . 1 22,925 33 5 TOTAL 60, 963 100 0 68,395 100 0 1980 County Median Income $22, 557 1988 County Median Income $44,400 Source (a) 1980 U S Census (b) Urban Decision Systems, 1980-1993 14 • • 7 Housing Affordability State and Federal standards for housing overpayment are based on a housing cost-to-income ratio of 30 percent and above Households paying greater than this amount have less income left over for other necessities such as food, clothing, utilities and health care It is recognized, however, that Upper Income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups The Regional Housing Needs Assessment (RHNA) prepared by SCAG identifies housing overpayment for the City' s lower income households2 based on data extrapolated from the 1980 Census According to the RHNA, an estimated 10, 565 (or 45 percent) of Huntington Beach' s lower income households were paying more than 30 percent of their income on rent or mortgage payments as of January 1, 1988 Of these overpayers, 5, 961 are classified as Very Low Income and 4, 604 are Low Income The distinction between renter and owner housing overpayment is important because, while homeowners may over-extend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home Renters, on the other hand, are limited to the rental market, and are generally required to pay the rent established in that market The RHNA has broken down housing overpayment by housing tenure, as presented in Table 6 Of the total 10, 565 lower income households identified as overpayers, 8, 638 were renter households and only 1, 927 were owner households This distribution is reflective of the tendency of renter households to have lower incomes than owner households TABLE 6 CITY OF HUNTINGTON BEACH LOWER INCOME HOUSEHOLDS PAYING GREATER THAN 30 PERCENT OF INCOME FOR SHELTER Household Very Low Low Tenure Income Income Total Owner 1, 137 790 1,927 Renter 4,824 3, 814 8, 638 TOTAL 5, 961 4 , 604 10, 565 Source SCAG Regional Housing Needs Assessment, June 1988 2 Lower income households are defined as those households whose total gross income is less than the national median "Lower Income encompasses both Very Low and Low Income groups 15 • • 8 Form of Residency Approximately 58 5 percent of the City' s residents are owners, 41 5 percent are renters, and there is a 5 3 percent vacancy rate Table 7 summarizes this information using the 1990 Census TABLE 7 UNIT OCCUPANCY Occupancy Units Owner-Occupied 40,284 Renter-Occupied 28, 595 Vacant 3 , 857 TOTAL UNITS 72, 736 Source 1990 U S Census C MARKET AND INVENTORY CONDITIONS 1 Existing Housing Stock During the sixties, vacant land was plentiful in Huntington Beach, and housing construction was characterized almost exclusively by large tracts of single family homes During the early seventies, planned condominium developments and small multi-family rental units became popular in response to changing housing demands, land constraints, and market conditions Housing growth in the eighties was characterized by multi-family apartments and condominiums, lower density duplex and triplex units, and some single family dwellings While Huntington Beach has experienced significant growth in its housing stock during the 1980s, the composition of the housing stock (single versus multi-family) has undergone little change Single-family dwelling units continue to comprise the predominant housing type in the City, constituting three-fifths of all housing (refer to Table 8) Multi-family units, however, exhibited a greater rate of growth during the 1980-1990 period, increasing by 17 3 percent, as compared with 12 4 percent for single-family units After tapering off in the mid-eighties, condominium activity has begun to increase again in Huntington Beach Condominium units comprise over half of the City' s multi- family housing stock3 3 Huntington Beach Department of Community Development estimated that there were 13, 151 condominium units in 1988 17 s • Due to the limited amount of available land in the City for additional single-family development and the presence of multi- family zoning in many single-family neighborhoods, future residential development in Huntington Beach can be expected to consist largely of multi-family units TABLE 8 HOUSING STOCK BREAKDOWN Stock 1980 Percent 1990 Percent Single-Family 38, 644 60 7 43,441 59 7 Multi-Family 22,245 34 9 26, 095 35 9 Mobilehomes 2, 667 4 2 3,200 4 4 Total Housing Units 63, 686 100 0 72, 736 100 0 Total Units Occupied 61, 126 96 1 68,879 94 7 Vacancy Rate 3 9% 5 3% Source 1980 and 1990 U S Census The tenure distribution of a community' s housing stock (owner versus renter) influences several aspects of the local housing market Residential mobility is influenced by tenure, ownership housing evidencing a much lower turnover rate than rental housing Tenure preferences are primarily related to household income, composition, and age of the householder Housing overpayment, while faced by many households regardless of tenure, is far more prevalent among renters For the past several decades, Huntington Beach has been a predominantly owner-occupied community However, the ratio of owner-occupied to renter-occupied units has been steadily declining since 1970, at which time 70 percent of the City' s households were owner-occupied Owner-occupied housing comprised 58 percent of the City' s households, dropped to 53 percent in 1988 and increased again to 58 5 percent in 1990 Construction of multi-family versus single family units has increased over the past decade While a significant proportion of the multi-family housing stock are condominium units, a large number of these are used as rentals Other factors which explain the continued reduction of owner-occupied units in the City include rapidly escalating home prices, higher interest rates and speculation, and the increased mobility of households 18 i 0 2 Existing Housing Stock Condition Table 9 illustrates the number of units built, by decade in Huntington Beach Reflective of the growth in Orange County, more than 80 percent of Huntington Beach' s housing units were constructed between 1960 and 1978 Housing development has maintained a steady pace into the 1980 ' s, with an additional 9,011 dwelling units or 12 8% of the total housing stock being developed between 1979 and 1988 The majority of these units are in good structural condition, a result of the large number of planned subdvisions in addition to the relatively young age of these tracts TABLE 9 CITY OF HUNTINGTON BEACH AGE OF HOUSING STOCK 1988 Year Built Number of Units Percent of Total 1939 or earlier 1,096 1 6 1940-1949 879 1 3 1950-1959 3, 109 4 4 1960-1969 28, 662 40 8 1970-1974 16,725 23 8 1975-1978 10, 697 15 2 1979-March 1980 2,478 3 5 April 1980-Jan 1988 6,533 9 3 TOTAL 70, 179(a) 100 0(b) Source (a) 1980 U S Census Report (b) California Department of Finance, Controlled Population estimates for 1-1-88 In 1988, only 7 percent of Huntington Beach' s housing stock was over 30 years old However, in ten years nearly half (48 1%) of the City' s housing stock will be over 30 years old This would indicate the potential need for rehabilitation and increased maintenance of approximately 35,000 dwelling units by the year 2000 19 i • TABLE 10 CITY OF HUNTINGTON BEACH SURVEY OF HOUSING CONDITIONS Condition Owner Renter Total Standard 40, 555 26, 730 67,285 Suitable for Rehabilitation 546 501 1,047 Unsuitable for Rehabilitation 239 347 586 Total Substandard Units 785 848 1, 633 Source City of Huntington Beach Housing assistance Plan, 1988 (Based on 70, 179 total housing units as of Jan 1, 1988) As noted in Table 10, there are an estimated 586 dwelling units which cannot be economically rehabilitated The overall quality of the City's housing stock is relatively high, with only a small percentage of units needing replacement or replacement or rehabilitation Of the City' s 1988 housing stock, only 2 3 percent (1, 633 dwelling units) were classified as substandard Of the identified properties, approximately 48 percent are owner - occupied (785 units, and 52 percent are renter/occupied (848 units) The HAP identifies 64 percent (1,047 units) of the City' s substandard units as suitable for rehabilitation where necessary repairs are considered economically feasible, 546 of these units suitable for rehabilitation are owner/occupied, and 501 are renter-occupied Another needed improvement to the housing environment is replacement of substandard housing units which are not suitable for rehabilitation The remaining 36 percent of substandard units identified as unsuitable for rehabilitation (586 units) need to be replaced by new housing of adequate quality Geographically speaking, housing units needing improvement are concentrated in the central and southwestern sections (which tend to have older units) of Huntington Beach 3 Length of Residency The City has no data on length of residency If asked to speculate staff believes that the high cost of housing has probably curtailed residential mobility among well established residents For the decade of the 1980 ' s housing price increases were greater than gains in personal income Manipulation of the data on current housing prices and median income suggest that up to 48% of current owners could not purchase the house they occupy today The California Property Tax structure also acts to keep people in place The largest owner-occupant age group are those persons aged 45-54 years comprise 25 1 percent of owner-occupants The largest renter-occupant age group, those aged 25-34 years, are 41 2 percent of the total rental market These people are probably renting due to the high cost of housing in the region and the likelihood that they are unable to save sufficient funds for a downpayment This reflects the 20 current need for first-time homebuyer downpayment assistance within Huntington Beach The City can expect to see a trend developing where owner-occupants as well as renters will remain in their homes for longer period of time due to a slowing real estate market and the high cost of housing generally 4 Market Constraints Many of the factors which tend to restrict housing supply cannot be controlled by local government, especially those that relate to the regional, national and international economy Various factors not under the control of local government influence the cost, supply and distribution of housing These factors include land costs, construction costs, financing costs, and availability of land a Land Costs - The scarcity of land serves only to increase the ultimate cost of the housing unit The cost of land ranges between 16% and 40% of the price of a new home, with most projects having total costs in the 23% to 35% range Left alone, the rapidly escalating market price of land will tend to encourage mainly higher priced development Higher density zoning could reduce the cost per unit of land, but land zoned for higher densities commands a higher market price For this reason, density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs Huntington Beach has identified the use of land assemblage and write-down as an incentive for the provision of affordable units Part of the increase in land prices can be attributed to the general inflation in the U S in the last 40 years However, a significant portion of the increase, is due to land price appreciation caused by demand for housing Demand given by, both population growth within the Orange County metropolitan area and Huntington Beach' s scenic coastal location b Construction Costs - The single largest cost associated with building a new house is the cost of building materials, comprising between 40 and 50 percent of the sales price of a home Overall construction costs rose over 30 percent between 1980 and 1990, with the rising costs of energy a significant contributor Construction costs for wood frame, single family construction of average to good quality range from $50 to $65 per square foot including all fees, custom homes and units with extra amenities running somewhat higher Costs for wood frame, multi-family construction average around $56 per square foot 21 A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices An additional factor related to construction costs is the number of units built at the same time As the number of units developed increases, construction costs over the entire development are generally reduced based on economies of scale This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable units c Financing Costs - Financing costs, for the most part, are not subject to local influence The control of interest rates is determined by national policies and economic conditions Interest rates greatly influence the housing market for home buyers and indirectly for renters The largest obstacle for the first-time homebuyer continues to be the 10-20% downpayment required by lending institutions The median sales price of a single family home in Huntington Beach in 1988 was $222,000 To purchase the median house required $22,200 down (10%) plus closing costs and a $199, 800 mortgage which amortized over 30 years at an interest rate of 10 5% would result in monthly house payments of $1, 827 This level of payment eliminates Huntington Beach' s very low, low and moderate income households from the for-sale housing market Condominiums, with a median price below $200,000 do offer an alternative homeownership opportunity for some of the City' s moderate income households, but still exclude low and very low income households d Land Use Controls - The Southern California Association of Governments (SCAG) has estimated a future housing need of 6,228 new units in the City through the year 1994 The Regional Housing Needs Assessment (RHNA) projected goal for the City is 7, 527 additional dwelling units to accommodate this growth The City has assessed the opportunities for future housing growth and believes that the RHNA totals are unrealistically high Nevertheless, every effort will be made to increase the supply of housing within the City and particularly for lower income families 22 • • New residential dwelling units could be developed on unconstrained vacant lands in Huntington Beach Additional residential development in the City could also be accomplished through several other means, including development on under-utilized residential parcels, on non-residential land, via a zone change, on publicly owner land, and on surplus school sites 5 Site Development Housing affordability is affected by factors in both the private and public sectors Actions by the City can have an impact on the price and availability of housing in the City Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development 6 Environmental and Infrastructure Constraints Portions of Huntington Beach are exposed to a variety of environmental hazards and resources which may constrain the development of housing units In addition, deficiencies exist related to the provision of infrastructure to service new residential development a Floodplain Situated on a low-lying plain and bounded by the Santa Ana River, Huntington Beach faces significant flood hazards Over half the City' s acreage, and approximately 70-80 percent of its residentially designated acreage, falls within the Flood Hazard Zone as defined by the Federal Emergency Management Agency (FEMA) FEMA regulations require that all new residential development be grated up above the 100-year flood elevation which ranges from approximately one to 11 feet in the City These restructions on development in the floodplain reduce the number of units that can be built, increases the cost of construction, and slows down development b Oil Resources Huntington Beach, historically, has been an oil town The numerous oil facilities currently operating in the City serve to reduce the amount of land currently available for development While residential projects can sometimes be developed around producing wells, often development must be postponed until oil production halts and facilities are abandoned (20 to 30 years) The presence of oil facilities thus reduces the amount of acreage available for development in the near future and/or increases the cost of development 23 • • The City is working with property owners to implement measures to mitigate constraints to development in sites with remaining oil facilities These measures include buffering/screening existing oil islands, abandonment of oil wells, and approval of Specific Plans c Hazardous Waste Because of the long history of oil recovery operations in Huntington Beach, some vacant residential properties contain hazardous wastes related to abandoned oil wells, oil pipelines, or potential methane gas risk These contaminated sites will require clean up prior to their development, thus adding to the costs of developing on these sites d Public Services and Facilities As a highly urbanized community, most areas of the City are already served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines However, a major area of vacant land east of the Bolsa Chica wetlands is designated for residential development and has remained undeveloped due to the lack of water, sewer lines and storm drains To facilitate development in this area, the recently completed Ellis Goldenwest Specific Plan provides for necessary infrastructure improvements to be installed over the next few years This Specific Plan is also designed to alleviate another constraint to development in this area, fragmented land ownership 7 Escalating Housing Prices a Housing Costs A fundamental constraint on the supply of new housing is affordability Trends in the price of housing over a period of time can either expand or contract the number and proportion of families that can afford homeownership When the price of new housing continuously increases at a rate greater than income gains, more and more households are priced out of the homeownership market The impact of price escalation is most severe on first-time homebuyers The price of new housing influences the resale price on existing homes When new home values are high relative to consumer income, consumers interested in home ownership must turn to the resale market, thus inducing pressures for price increases During the decade of the 1980s, housing cost in Huntington Beach increased substantially In 1980 the median value of a single family unit was $116, 900 24 This increased to $287, 100 by 1990, according to Census information (City managers believe the 1990 median value is actually higher than estimated by the census) The 1990 Census estimate would result in an increase of 245 6 percent in ten years (not adjusted for inflation) This only serves to highlight how significantly affordability has dropped for Huntington Beach residents In August 1988, the housing affordability index reached its lowest level since December 1984 In 1988, only a fourth of all California' s households had the income to qualify for a 30-year mortgage to buy the then median-priced single family home at $167,4284 Similarly June 1988 survey from the California Association of Realtors showed that 75% of California families could not qualify to buy a typical home, assuming a 20% down payment and an annual income of $52, 011 to make monthly payments including taxes and insurance of $1,300 In summary, as the price of existing single family homes continues to rise at a rate faster than that of individual incomes, ownership of single family homes becomes less accessible, especially to households at or below 80 percent of median income b Rental Costs Rental rates have also increased, nearly as fast as the cost of homeownership In 1980, the median rental rate was $363 per month By 1988, the average rental was $760 per month By 1990, according to Census data, the monthly median rent was $808 From 1980 to 1990, there was a 222 6 percent increase in renter costs Federal guidelines limit housing cost to 30 percent or less of gross income A family at the very low income level (50 percent of median income) would be able to afford a maximum monthly rent of $555 A family at the low income level (80 percent of median) would be able to afford maximum monthly rent of $888, just above the 1990 median rent According to information provided by Cotton, Beland Associates, Inc in 1988, a sample of 296 rental units were recorded as available for rent during the period January through December 1988 There were only 6 units reported or two percent of the total units sampled which were available at less than an average of $675 or more per month, eliminating very low income renters renting at $555, from the market The 4 Security Pacific National Bank, 1988 Housing Affordability Index, (August) 25 units for rent at less than $675 per month were studio rentals, single room units with baths, or one bedroom units Significantly, there were no units larger than a two-bedroom renting at levels affordable to low-income households Alternatively, there are reasonable economic choices for rental housing available to moderate income households and for those generally able to afford market rate housing 8 Vacancy Rates Another factor creating a need to produce new housing is low vacancy rates When vacancy rates are low, they restrict the opportunity and choice in the City' s housing market The 1990 Census reports a 5 3 percent vacancy rate This rate is comparable to the overall 1990 Orange County rate of 5 5 percent As long as the area wide vacancy rate is low, prices will remain high and affordability for very low and low income households will be a continuing dilemma 9 Vacant Parcel Inventory Vacant land planned for residential development is relatively scarce in Huntington Beach Approximately 725 acres, or six percent, of the City' s total 11,918 residential acres are currently vacant Under existing zoning and general plan designations, these residential acres could support a maximum build out of 7, 587 additional housing units However, as discussed in the previous section, much of the City' s vacant residential land is subject to development constraints related to oil production and fragmented ownerships The City is actively working with property owners to remove these constraints by creating oil consolidation sites, developing specific standards to ensure compatibility between oil islands and residential uses, and through implementation of Specific Plans The City has identified the following areas which are constrained due to oil production activities or ownership which have potential for residential development These areas are illustrated in Figure 1, and their dwelling unit capacity described below Area #1 This parcel is approximately 20 acres in size and is designated for High Density Residential, permitting up to 35 dwelling units per acre The property has been historically utilized for oil production The few oil wells remaining on the site are in the process of being removed The property owner has submitted development plans to the City for 284 attached townhome units Construction of these units is anticipated to begin in FY 1992 or 1993 26 Area #2 The Redevelopment Agency is intermittently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach Existing oil facilities located on the 21 acre site are to be relocated on the oil consolidation site Existing High density Residential zoning on the site would permit the development of up to 35 du/a of additional multi-family units Area #3 This area consists of approximately 47 acres designated as Residential Estate Density (2 du/acre) The site is located in the Holly-Seacliff Master Plan area adjacent to the proposed linear park While the area had previously been identified as constrained by oil production, the Master Plan provides for mitigation of oil constraints, through abandoning some wells and creating "oil islands" for the remaining on-site oil facilities Approximately 100 single family dwelling units are already under construction Area #4 Similar to Area #3, this 38 acre site is located in the Holly-Seacliff Mater Plan, which provides for mitigation of existing oil constraints The Master Plan designates this site for an overall average density of seven dwelling units per acre, providing for a total of 269 dwelling units Area #5 McDonnell Douglas has requested that the City consider a portion of their property located on Bolsa Avenue at Springdale as a potential target site for high density multi-family housing Area #6 Scattered vacant school sites belonging to the Ocean View School District as listed below but not shown on the map a Crest View b Glen View c Haven View d Rancho View e Lark View f Meadow View g Park View h Pleasant View 27 i • Additional school sites i Gisler Peterson k Lebard 1 Burke m Gill n Wardlow o Lumb p Arevalos q Bushard - 58 single family detached homes have been approved on this site r Wintersburg Through the City' s efforts, over 126 acres of land which had been constrained by oil production activities will be opened up to development This residential acreage will provide for an increase in dwelling units, ranging from low density estate housing, to high density apartments for housing development Table 11 provides a breakdown of the number and type of additional residential dwelling units which could be constructed in Huntington Beach under the City' s General Plan Of the City' s total 725 vacant residential acres, 478 8 acres can be considered unconstrained and available for development over the five-year period of the CHAS This acreage will support a maximum buildout of 4, 997 dwelling units, ranging in density from 2 to 35 units per acre Nearly half (45 percent) of the potential dwelling units are the Medium- High and High Density residential land use categories, providing opportunities for lower cost housing development Approximately one-quarter of these potential units are designated for Medium Density residential, indicating a significant proportion of future residential growth will be in the form of duplexes and townhomes and lower density apartments and condominiums 28 clo, ♦ r fi f I( fJ r J AREA 5 or o °o J +� �" Jl GF V FL YYFY (�F f O FI tF ,� �0. T d I. k 0 iAPEA 4 rCS J`,rcC N e0 lfl m m — AREA 3 ACN r b1ill��lll I / r�',r PROPERTY I / r BOLSA CHICA Ed 0-conv sr,CM c r It� ro I Y CI b 11. 1q C tIC p r—� AREA 2 r■ �t= I � 1{WA Lc.%sl A � • AREA 1 1 tr l� - P A C F i C O C E A N 0 3636 rc� iC North III I riwKE I I AE\IOUSLY CONSTI.AINLD LANDS SUITABLE TOP PESII)EVTI\L I)LVLI Of mr TABLE 11 CITY OF HUNTINGTON BEACH VACANT LAND SUITABLE FOR RESIDENTIAL DEVELOPMENT 1989 Total Unconstrained Vacant Maximum Vacant Maximum % Total Acreage DU' s Acreage DU' s DU' s Residential Estate 222 00 724 182 6 605 12% (2-4 DU/GA) Residential Low 98 39 688 86 41 605 12% Density (7 DU/GA) 159 73 2,407 77 91 1, 169 24% Residential Medium Density 17 55 439 17 55 439 9% (15 DU/GA) Residential Medium- 62 05 2, 172 62 05 1, 813 36% High Density (25 DU/GA) Residential High Density (35 DU/GA) 725 00 7,587 478 8 4, 997 100% Planned Community (7 DU/GA) TOTAL Source City of Huntington Beach Community Development Department, January, 1989 D HOUSING NEEDS FOR THE GENERAL POPULATION Based on the above described population characteristics and market conditions, the City of Huntington Beach has identified the following major housing needs for FY 1992 and the next five years 1 Affordable Housing for Low and Very Low Income Households Table 6, located in Section B 7 of this CHAS shows that 10,565 low- and very-low income households were paying more than 30 percent of their income for shelter in 1988 State and Federal standards define overpayment of housing costs as paying greater than 30 percent of gross monthly income for shelter For very-low income households, overpayment would be more than $555 per month in total housing costs As discussed in Section B 7 above, households paying greater than this amount will have less income left over for other necessities, such as food, clothing and health care 30 • • There are 10, 565 low- and very-low income households or 15 3 percent of all City households paying greater than 30 percent of their income for housing As expected, the impact is greater among very low income households Of the 15 3 percent that are overpaying for housing, owners make up 2 8 percent of those households and renters the remaining 12 5 percent This phenomena is increasingly facing all Southern California communities and Huntington Beach will attempt to address the strain high housing costs place on the very low and low income households in the City 2 Rehabilitation Needs Per federal guidelines, any unit which does not meet or exceed the Section 8 existing housing quality standards or local building codes is considered to be substandard and suitable for rehabilitation The summary data from the 1990 Census document 72, 736 housing units in Huntington Beach As of 1988, 1, 633 of these units are designated suitable for rehabilitation5 To identify substandard properties, the City has an active property maintenance code enforcement program The City has developed programs to assist qualified homeowners and rental property owners in rehabilitating such properties, as described in the Five Year Strategy section of the CHAS Rehabilitation of property and preservation of neighborhoods will continue to be a major and growing need within the community due to the gap between income and housing costs 3 Need for Additional Standard Housing According to the RHNA, the total future housing need in Huntington Beach from 1989 to 1994 is 6,228 new units In order to produce this number of new housing units, there are currently 478 8 acres of unconstrained land available and an additional 246 2 acres of redevelopable land which, at varying densities, could provide these additional dwelling units (See Table 11 above) However, 6228 units is unrealistically high given market and environmental constraints on development that will exist over the next five years (HAP) 5 Huntington Beach FY 1989-1991 Housing Assistance Plan 31 • • It is obvious that the City' s housing opportunities are still sub]ect to local government, economic, environmental, and infrastructure constraints Due to the buildout character of the City of Huntington Beach, careful planning, clear-cut goals and rigorous monitoring will be required for new affordable housing production to take place on vacant and redeveloped land parcels Making way for new housing units or rehabilitation and preservation of existing housing units without displacing low- and very-low income persons is a very real challenge and one which will necessitate careful planning by the City of Huntington Beach E HOUSING NEEDS FOR THE HOMELESS AND "AT RISK" POPULATION In the past ten years, the size of the nation' s and Orange County' s homeless population has sky-rocketed As this population has increased, so has the need for emergency shelter, transitional housing, re-entry, and very low income (such as single room occupancy) housing and related social services A special category of homeless attracted to Huntington Beach as Surf City, USA are runaway/thrown away teenagers There are four Youth Shelters in Orange County and Huntington Beach will shortly open a fifth Serving this population are Amparo, Garden Grove, Casa, Los Alamitos, CSP Laguna Youth Shelter, Laguna Beach, Laurel House, Tustin, and Huntington Beach Youth Shelter scheduled to open in 1992 In addition to the homeless, Huntington Beach must remain cognizant of the needs of those families and individuals that are potentially at risk of losing their permanent housing HUD defines these "at risk" families and individuals as including very low income families forced to pay more than 50 percent of their income for housing, as well as mentally ill persons, drug and alcohol abusers and victims of domestic violence A Demographic Profile and Survey of Homeless Persons Seeking Assistance in Orange County was published in 1988 by the Orange County Homeless Issues Task Force, to provide basic demographic information about the homeless, their spouses and children, as well as the respondents ' perceptions of the causes of and solutions to their specific homeless situations The report did not provide a count of the homeless in Orange County The report itself was only a presentation of the survey findings It was the intention of the Task Force that the data itself inform the planners and decision-makers of the causes of, and responses to homelessness in Orange County 32 • • Surveys were distributed to 16 central Orange County Social Service agencies, both public and private non-profit providers of emergency assistance, temporary shelter, and transitional housing services Emergency assistance includes food, shelter vouchers, medical care and financial aid The survey was available in English and Spanish and could be staff or self-administered Clients were advised that their answers had no bearing on services received and there was no way to gauge how many individuals were excluded due to illiteracy The list of agencies participating in the survey is identified below AGENCIES PARTICIPATING IN THE SURVEY Community Development Council, Costa Mesa County of Orange, Social Services Agency, Offices in 4 locations Dayle MacIntosh Center, Anaheim Episcopal Service Alliance, Anaheim and Orange Friendship Shelter, Laguna Beach Fullerton Interfaith Emergency Services Irvine Temporary Housing Lutheran Social Services, Garden Grove Mental Health Drop-In Center, Santa Ana Orange Coast Interfaith Shelter, Costa Mesa Orange County Rescue Mission, Santa Ana Placentia Human Services Share Our Selves, Costa Mesa Thomas House Temporary Shelter, Fountain Valley YWCA Hotel For Women, Santa Ana The Cold Weather Shelter Program, Fullerton and Santa Ana Armories The data which provided some of the most interesting information was on the self-disclosed reason for the respondent 's homelessness Respondents were asked to answer "None" , "Some" or "Most" to a series of items related to the reasons they became homeless Most respondents reported their inability to afford housing (52%) and loss of their job (50%) as reasons for becoming homeless Closely following these responses as factors most responsible for homelessness were eviction (29%) , family problems (20%) , being jailed (17%) and poor financial planning (16%) The responses are reported in Table 12 below 33 • • TABLE 12 ORANGE COUNTY HOMELESS ISSUES TASK FORCE DEMOGRAPHIC PROFILE AND SURVEY INFORMATION FEBRUARY 1990 Reason for Becoming Homeless None Some Most Lost Job 31 19 50 Lost Government Benefits 86 6 8 Poor Financial Planning 59 25 16 Eviction 59 12 29 Cannot Afford Housing 27 21 52 Family Problems 67 13 20 Divorce 81 8 11 Medical Bills 81 12 7 Illness 73 13 14 Death of Spouse, Parent 89 4 7 Being Jailed 71 12 17 Drugs, Alcohol 77 12 11 Mental Illness 84 7 8 Other 87 3 9 Source Demographic Profile and Survey of Homeless Persons Seeking Services in Orange County, Research Committee, Orange County Homeless Issues Task Force, February 1990 This data is being used along with the City' s own data collection to formulate a strategy for effectively coping with, serving and preventing homelessness Finally, there are four existing low-moderate income projects in the City that are nearing the end of their affordability during this CHAS period The City is making it a priority to assist these projects in finding new means to remain affordable The potentially impacted projects are Huntington Villa Yorba 1993, Huntington Beach Gardens 1994, Wycliffe Gardens 1996 and Surfside Villas 2002 F SPECIAL NEEDS HOUSING CHAS guidelines stipulate that plans include a description of special housing needs that may exist in the community, such as those of the handicapped, elderly, large families, and single parent households The following discussion presents the housing needs of these groups in Huntington Beach 1 Elderly According to the 1990 Census, 7,246 elderly are homeowners and 2, 038 are renters Eighteen percent or nearly one-fifth of the total homeowner population is aged 65 or older and 7 1 percent of all renters are elderly The 1990 Census data also indicates that there are currently 482 persons in nursing homes in Huntington Beach 34 • • Elderly households often have special needs due to their lower, fixed incomes, physical disabilities, and dependence needs Those special needs include security features, access to public transportation, and medical services Elderly households are more likely to be disabled, and require housing modifications to accommodate their disability An estimated 14 , 266 elderly (65 years and older) resided in Huntington Beach in 1988, representing 7 6 percent of the total population The proportion of elderly can be expected to increase as those persons between the age of 55 and 64 grow older Many elderly households in the City are on fixed incomes The City' s 1988 Housing Assistance Plan (HAP) estimates that 1,226 are in need of rental assistance Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly The housing needs of the elderly can be addressed through the provision of smaller units, second units on lots with existing homes, shared living arrangements, congregate housing, and housing assistance programs Many elderly are still on waiting lists, however, for affordable housing as well as Section 8 housing certificate assistance There is a continuing demand for such housing Many of the elderly who are homeowners (20 percent of all homeowners) will require City assistance in order to afford necessary repairs 2 Handicapped/Disabled Another group with special housing needs is the physically disabled population Correctly serving this population requires housing unit design modifications and alternative solutions to housing accessibility Huntington Beach' s Housing Assistance Plan identifies 1,444 low and moderate income households that have at least one handicapped person, representing approximately 8 percent of total households within the City in 1988 TABLE 13 CITY OF HUNTINGTON BEACH HANDICAPPED HOUSEHOLDS Type of Household Number Elderly 86 Single, non-elderly 425 Small Family 749 Large Family 184 Total Households 1444 Source City of Huntington Beach, Housing Assistance Plan, 1988-1991 35 s 0 Housing opportunities for the handicapped can be maximized through rental assistance programs and providing design features such as widened doorways, ramps, lowered countertops, single-level units, and ground floor units Huntington Beach' s Housing Element sets forth policies to implement State standards for the provision of handicapped accessible units in new development and, in addition, to encourage housing which is provided for the handicapped to be located in close proximity to public transportation and services 3 Large Families The housing needs of large families within this community are problematic on two counts First, there is a limited supply of rental units with 3 or more bedrooms in the City (and throughout Orange County) According to the 1990 Census, there are 6,443 large families (those having five or more members) which require these rental units Secondly, the large family finds it increasingly difficult to locate affordable housing to accommodate its needs Homeownership is prohibitively expensive for many families as income has not kept pace with the cost of housing in this area The strong need for increased family housing is evident when viewed against the numbers of families qualifying for assisted housing programs Overcrowding is also an indicator of the need for more affordable housing for these families The federal definition of overcrowding is more than 1 person per room per dwelling unit Just over five percent (5 2%) of the total housing stock, or 3, 607 units, have 1 01 or more persons per room 2786 households or 9 7 percent of all households in rental units are suffering from overcrowding 821 households or two percent of all households in owner- occupied units are overcrowded Large families usually have several dependent children and thus need a location close to day care centers and schools A higher than average percentage of these households are low and moderate income Additionally, a higher than average percentage of these households are paying more than 30 percent of their incomes for rent Huntington Beach is also increasingly concerned with extended families living in overcrowded conditions This growing trend, caused largely by the aforementioned gap between incomes and housing costs, is expected to become a more significant problem over the next five years 36 • 0 4 Single-Headed Households Female-headed households are disproportionately represented among the poor throughout the United States This phenomena is also true within Huntington Beach Interestingly, however, Huntington Beach has 9, 534 single-headed households, 4,992 of those households include children under 18 Single-headed households make up 13 8 percent of all households in Huntington Beach Female-headed households are 9 5 of total households and male-headed households make up 4 3 percent Most single-headed households are in need of affordable units which are located near schools, child care, and recreation services 37 CHAS Table 1 A U S Department of housing and Urban Development 011ico of Community Planning and Dovolopmonl Housing Assistance Needs of JUN 15 1991 Low & Moderate Income Households Comprehensive I lousing Affordability Strategy (Cl]AS) Name of Axisddaon(s)or Consortium Frve Year Penod FY rhroughFY CITY OF HUNTINGTON BEACH 19921 1996 1.4aJk one Wrk one /] Current Estimate as of (enlerdale) OCCO t q91 All Households ] Frve Year Proledod Estimate as of (enter dale) [ Racial/Elhnrc Group I lousehokls (&peaty)' Ronrors Owners Household by rs ---- Typo Income 6 Housng Problems 1 d 2 Member Small Rolatod Large Related All Othor Total Ronlors 1 &2 Mombor Smell Rolatod Large Rolatod All Other All Owners Households (2 to 4) (5 or Moro) Housoholds Households (2 lo 4) (5 or Moro) Households (A) (B) (C) (D) (E! F_ (G) —Lll-- 0 L! 1 Low Income(0 to 50%) 919 3 , 548 — 416 _ 4 , 8 8 3 — 2 Housing Problems 3 Physical Defects 4 Overcrowded — — -- 5 Cost Burden>30% -- — 6 Cost Burden>50% 7 Othef low-Income(51 to 80%) 279 3 , 276 306 3 , 861 8 With Housing Problems 9 Physical Defects co - 10 Overcrowded _ *** DATA NOT A LABLE It Cost Burden>30% --- 12 Cost Burden>50% - — ----- 13 Total Low-Income 1 ' 198 6 , 824 722 8 744 14 Moderate Income(81 to 95%) 15 With Housing Problems 16 Physical Dolocts 1�Overcrowded — --- — - -- 18�Cost Burden>30% — -- ------- — ---- - — --- - 19 Cost Burdon>50% - -- —— 20 Mlddle4ncome Hahlda 96 to 120% s 21 All Households ' See Table 2A for listing of Racial/Elhnic Groups Or if aplxoprlato based on HUD Income limits with required statutory adjustments loan HUD-40090 (6/14/91) CH AS Table 1 A U S Department of Ilouaing and Urban Development 011ico of Community Planning and Development Housing Assistance Needs of JUN 15 1991 Low & Moderate Income Households Comprehensive I lousing Affordability Strategy (CI IAS) Name of Axladdcvon(s)or Consortium Five Year Period FY hry CITY OF HUNTINGTON BEACH 1992 � 1996 Mark one Mark orw Current Estimate as of (enter date) October 1991 All IlousehoWs Five Year Proleded Estimate asof (enter dale) � nactaVElhnlc Group IlousehokJs (apedty) All Minorities Renters Owners Household by —El� Elderly Type Income & Housing Problems 1 &2 Membor Small Related Large Related All Other Total Ronlors 1 b 2 Mombor Small Rolalod Large Related All Other All Owners Househdds (2 to 4) (5 or more) Households Households (2 10 4) (5 or mo(o) Housoholds _Sii- (A) (B) (C) (D) (E) (F) (G) �!1 — L) L) Low Income(g l0 50x) 2 With Housing Problems 3 Physical Defects 4 Overcrowded - -- 5 Cost Burden>30% 6 Cost Burden>50% 7 Other LowAnoome(51 to 8D%) 8 With Housing Problems rn 9 Physical Defects _ 10 Overcrowded — I I Cosl Burden>30% -- 12 Cost Burden>5M — — -- 13 Total Low Income 14 Moderate Income(81 to 95%) 15 With Housing Problems jgfim� Physical Defects -- Orercmwdod 18 Cost Burden>30% 19 Cost Burden>50% 20 Mlddle4ncome Hahlda %to 120% + 21 All Houaeholda r See Table 2A for isling of RaclaVElhn)c Groups or It appmprtato based on HUD Income limits with required stahrtory adjustments form IIUD-4D090 (6/11/91) CHAS Table 1A U S Department of Housing and Urban Development Office of Commumy Planning and Development Housing Assistance Needs of JUN 15 1991 Low & Moderate Income Households Comprehensive I lousing Allordatxltty Strategy (Cl1AS) Name of Kx Janon(a)or Consortium Frve Year Penod CITY OF HUNTINGTON BEACH FY dvoughFY Mark one Wik one — Current Estimate as of (enter dare) October 1991 C All HousehoWs Five Year Projected Estimate as of (elver dale) t � (lactal/Ethmc Group I lousohokls (epedy)I Black Renters Owners Homohold by r — — —EI&N, -- - Typo Income 6 Housing Problems 1 d 2 Membor Small Flouted Largo Rolalod All Othor Total flonlors 1 3 2 IlA mbor small no(atod Large Ilolalod All Other All Ownots Households (2 to 4) (5 or more) Households Households (2 10 4) (5 or mote) Households Am (A) (B) (o) (D) (E) (F) (G) _�1 _ (1 L1 _ ery Low Income(0 to 50%) 2 With Housing Pfobloms 3 Phys"I Defects 4 Overcrowded -- 5 Cost Burden>30% 6 Cos Burden>50% 7 Other Low-Inoome(51 to 80%) 8 With Housing Problems 9 Physrcai Defects 10 Overcrowded --- - o 11 Cost Burden>30% 12 Cost Burden>50% - — — -- 13 Total Low Income 23 129 14 166 14 Moderate Income(81 to 95%) 15 With Housing Problems Physical Detects Overcrowded 10 Cost Burden>30% 19 Cos1 Butdon>50% 20 1dlddle4ncome Hahlde %to 120% t 21 All Households ' Sao Table 2A for listing of Raclal/Elhn$c Groups OF it approprfabo based on HUD income limits with required statutory adjustments form 111.1134DOW (G/1 1/91) CHASTable 1 A U S Doperlment or housing and Urben Development 011ico of Community Planning and Development Housing Assistance Needs of JUN 15 1991 Low & Moderate Income Households Cornprehensive I lousing Allordabtlily Slralegy (CHAS) Name of Jurlsdction(s)or Consortium Five Year Penod CITY OF HUNTINGTON BEACH FY duou9h FY1992 1996 Mark one Mark one [X) Current Estimate as of (enierdais) October 1991 H-x All Households Frve Year Proleded Estimate as of (ants(dab) FlaciaVElhnrc Group I louseholds (spedy) Native American Heaters Ovrnors Housohold by r - Type Incorno 6 Ilousng Problems 1 d 2 Mornbor Small Rolnwd Largo notated All Other Total Rontors 1 d 2 Wrnbor Small Related Large Rotated All Other All O,vnors Households (2 to 4) (5 or moro) IlousohoWs Households (2!o 4) (5 or mo(o) Households _e ry Low Income(0 to 50%) (A) (B ( ) (C) —(D) —(E) —(F) G) 2 With Housng Problems - 3 Physical Defects � Overcrowded — -- -- 5 Cost Burden >30')6 ---- - - - -- - ---- --- — -- - -- - 6 Cost Burden>50% -- 7 Other Low Income(51 to 80%) — a 8 With Housing Problems 9 Physical Defects 10 Overcrowded i 1 Cost Burden>30% --- 12 Cos l Burden>50% — — -- 13 Total Low Income 14 Moderate Income(81 to 95%) 15 With housing Problems - Physical Defects - Wv Overcrowded — 19 Cost Burdon>30% 19 Cost Burden>50% 20 Mlddleancome hshlds %to 120% r 21 All households ' Soo Table 2A for listing of Racial/Elhnic Croups Ot it appropriate based on HUD income limits with required statutory adjustments Iorm HUD,40090 (6/1 1/9 1) CHAS Table 1 A U S Department of{lousing and Urban Development 011ice of Community Planning and Dovoiopmont Housing Assistance Needs of JUN 15 1991 Low & Moderate Income Households Comprehensive I lousing Affordability Siralegy (Cl]AS) Name of JLvladcnon(s)or Consortium Frve Yew penod CITY OF HUNTINGTON BEACH FY tllroughFY 1992 1996 Mark one Mark ono Current Estimate as of (onto(date) OCTOBER 1991 L All Ifouseholds Five Year Proleded Estimate as of (enter data) IX FlaciaVEllintc Group I lousehokls (specs y)I AS 1 aft Renters Owners — Typo by r ---- -- - Typo Irmo & Housing Problems 1 &2 Member Small Related Large Rotated All Other Total Renters 1 ✓!.2 Mornber Small Related Large Rolaiod All Odter All Owners Households (2 to 4) (5 or more) Households Households (2 bo 4) (5 or mote) Households _ (A) (B) (C) (D) (E) (F) L1 _ _�1 (I (j) _ Wary—Low Income(0 to 50%) 2 Widi Housing Problems 3 Physical Defects 4 Overcrowded ---- 5 Cost Burden>30% 6 Cost Burden>50% 7 Other Low Income(51 to 60%) 0 Yrith Housing Problems r — N 9 Physical Defects 10 Overcrowded 1 I Cost Burden>30% -- 12 Cost Burden>50% - — ---- 13 Total Low Income 84 47 14 Modarale Income(91 to 95%) 15 With Ilousing Problems i Physical Defects Wv Overcrowded 118 Cost Burden>30% 19 Cost Burden>50% 20 Middle4ncome Hshlde J96 to 120% t 21 All Households ' Sae Table 2A For listing of Racial/Elhnic Groups Or if aapprojxtate based on HUD Income limits with required slatutory adjustments lotrn IIUD-40090 (6/1 1/91) CHAS Table 1 A U S Dopartrnent of llousIng and Urban Development 011rco of Community Planning and Dovolopmonl Housing Assistance Needs of JUN 15 1991 Low & Moderate Income Households Cornprehenslve I fousing Affordability Strategy (CIAAS) Name of Axtadction(s)or Consor ium --- FrveYear i'enod CITY OF HUNTINGTON BEACH FY UirotrghFY _ 1992 1 1996 Mark one Mark one Current Estimate as of (enter date) October 1991 All Ilousehokds Frve Year Pro(eded Estimate as of (.nbr dab) N RaclaKlhmc Group Households (spedh)' HISPANIC Renters Owners Household by r —EI r — - - Type Income & Housing Problems 1 d 2 Membor Small Roloted Largo Rolalod All Other Total Ronlors 1 b 2 Wmbor Small Rolalod Largo Rol-itod All Other All Owners Households (2 to 4) (5 or more) Households Households (2 to 4) (5 or more) Households - ery Low Income(0 to 50%) 2 With Housing Problems — 3 Physical Do facts 4 Ov ercrowdod — - 5 Cost Burden>30% 6 Cost Burden>50% -- 7 Other Low-Income(51 to 80%) 8 With Housing Problems 9 Physical Defects 10 Overcrowded 11 Cost Burden>30% 12 Cost Burden>50% — — -- 13 Total Low Income 959 101 1 ,228 14 Modersts Income(81 to 95%) 15 With Housing Problems �rystcal Detects Overcrowded 18 Cosl l31rdon>30% — — -- — ---- - 19 Cost Burden>50% 20 Mlddle4ncome Hahlda 96 to 120% t 21 All Households ' See Table 2A for listing of Raclal/Elhnic Groups Or it approprlato based on HUD Income limits with required statutory adjustments lotrn HUD-40090 (6/1 1/9 1) • • CHAS Table 1 D(Optional) jUN 1 5 1991 U S D*partment of Housing and Urban Development Office of Community Planning and Development Other Special Needs Population Comprehensive Housing Affordability Strategy (CHAS) ne of Jurisdiction(s)or Consortium Five Year Penod (enter fiscal yrs) FY through FY City of Huntington Beach 1592 199�- I Households Category People with Elderly with Persons wide Participants in Economic Independence Disabilities Special Needs AIDS and Self Sufficiency Programs (A) (B) (C) (D) 1 Number of Households 2 Supportive Housing Need 3 Service Needs 4 Supportive Service Need Identified in FSS Plan *** DATA NOT AVAILABLE **** 44 HAS Table 2A tJJi 1) J l .P. . U "Q- y . U V U., LJ O UN o Office of Community Planning and Development Population and Minority DAR Comprehensive Hou* Affordabflrty Strategy (CHAS) Name of Jt nsaiction(s)or Consornum I Five Year Penw (enter fiscal yrs) I FY mrougn FY CITY OF HUNTINGTON BEACH i 1992 i1996 1980 Census Data 1990 Census Data I Category or Current Estimate (A) (B) 1 Total Population i 170 , 505 181 , 519 2 White (Non Hispanic) 154 , 156 156 , 314 3 Black (Non Hispanic) 1 1 , 218 1 , 687 1 14 Hispanic(All races) 13 , 427 20 , 397 I 5 Native American I 1 , 204 1 , 1 5 7 6 Asian and Pacbc Islanders I 8 , 453 I 15 , 048 17 Group Quarters 710 i 762 J 8 Institutional I 478 501 Ir 9 Non Institutional 232 261 110 Household Population 43 , 822 4 5 , 546 45 form HUD-40090 (5/1&91) CHAS Table 213 �I(� I 5 I9gI U S Department of HouslgiLand Urban Development Of ice of Community Plannfend Development Market and Inventory Conditions Housing Stock Inventory Comp ehenslve Housing Affordability Strategy (CHAS) Name of Junsdicoon(s)or Consorvum f ve Year Penod (enter fiscal yrs) Fr 1992 1tnruu0h'1996 P C: 19 80 Census r one CITY OF HUNTINGTON BEACH CurrentEstimateasof (entardate) Category I Total 0 or 1 beanoms 2 bedrooms 3 or more bedrooms (A) I (B) I (C) (D) 1 Total Year Round Housing 70 , 179 2 Total Occupied Units 68 , 891 3 Renter Occupied Units I 2 7 , 5 5 6 4 Needing Rehab I 501 5 Not Rehabbable *I* ` I I 6 Owner Occupied Units 41 , 335 7 Needing Rehab 546 a Not Rehabbable I - 9 Total Vacant Units I 1 , 288 10 For Rent 772 11 Needing Rehab 14 12 Not Rehabbable I y 13 For Sale I 516 14 Needing Rehab I 7 15 Not Rehabbable I y y 16 Awaiting Occupancy or Held I N/A y y 17 Other I NIA y y \ * NOT AVAILABLE 46 'arm HUD- 0090 t6l1491) 1. 171tA%D 1 c1UIC X %..0 JLIIN J I9g1 Office of Community Planning and Development Assrsted Housing Inventor Comprehensive Hour Affordability Strategy (CHAS) Vame of Jurisdiction(3)or Consortium Five Year Period (enter fiscal yrs) mroughFY 1992 I 1996 Current ESOmate ai of (enter data) CITY OF HUNTINGTON BEACH I October 1992 Total Stock and Inventory Category Total SRO 0 or t bedrooms 2 bedrooms I 3 or more bedrooms (A) (B) (C) (D) I (E) 1 Project Based Tenant Assistance 198 2 Public Housing _0_ I l 3 Section 202 _0— I 4 Section 8 5 Other HUD ( 23 198 ^' *^ DATA NOT AVA BLE ''--- � 6 FmHA _0- 7 Tenant Based Tenant Assistance 662 8 Section 8 662 I �� 9 Other State/Local I _0_ 10 Homeowner Assistance I —0— l 47 lorm HUD-10090 (5/16/9 1 • N 0 FIVE YEAR STRATEGY 48 FIVE YEAR STRATEGY In the Community Profile section of this Comprehensive Housing Affordability Strategy (CHAS) , some of the salient characteristics of the City' s residents and market conditions are described and the City' s primary housing needs are identified This section of the CHAS, describes the housing strategy that the City will undertake to address these needs over the next five years This section is comprised of four subparts 1 Priorities and Programs The City' s housing priorities and the programs that will be used to achieve these priorities 2 Resources The resources that will be used to fund these programs 3 Organizational Capacity The organizational structure, roles and capacity building that will be necessary to achieve these priority needs 4 Constraints to Affordable Housing The constraints or barriers that might inhibit opportunities for affordable housing, especially for very low and low income households A FIVE YEAR STRATEGY - OVERVIEW The City of Huntington Beach hereby adopts as its "Mission Statement" The "Mission Statement" for the first 5 year CHAS Mission Statement - The City of Huntington Beach pledges to provide safe, decent and affordable housing opportunities for all segments of its population The City has identified six (6) key priorities to aggressively pursue on a policy and program basis over the next five years These priorities reflect the policies and programs which will best meet the needs within the City as described in the Community Profile section of this CHAS 49 00 0 1 Rehabilitate the City's existing substandard single family and multi-family housing stock in order to preserve the City's neighborhoods 2 Provide opportunities for homeownership for first time buyer low/moderate income residents 3 Provide supportive housing needs and assistance for the "at risk" population 4 Expand the housing stock for all segments of the community, particularly lower income households 5 Preserve existing affordable housing for City residents with special needs, especially large families and elderly households 6 Ensure that persons displaced by redevelopment activities receive financial assistance and replacement units on a one-for-one basis B PRIORITIES AND PROGRAMS The priorities and programs detailed below have been developed based upon information contained in the City' s most recent State-mandated General Plan Housing Element, the Orange County Homeless Task Force Report of 1990, information on the City of Huntington Beach' s housing programs, and discussions with public sector and private sector individuals There are obviously many important priorities that any community must attempt to address In order to remain focussed and effective in meeting the needs within Huntington Beach, we have limited the number of key priorities to a manageable number Nevertheless, successfully accomplishing even six priorities over the next five years is an ambitious goal that will challenge the commitment and perseverance of all sectors of the community Moreover, the collective ability to meet these objectives as described in detail below, will depend not only upon the effective implementation of "programs" , but also upon access to sufficient Federal, State, local and private resources to pay for these programs The specific programs and five year goals for successfully meeting the six selected priority needs, are discussed in detail below 50 N i Priority #1 - Rehabilitate the City's existing single family and multi-family housing stock in order to preserve the City's neighborhoods While most of the City' s housing stock is less than 30 years old and in good condition, several neighborhoods contain significant levels of housing deterioration These neighborhoods include the Washington, Oakview, Liberty, Amberleaf, South Shores, Oldtown, Townlot and Yorktown-Utica communities Through its Community and Neighborhood Enhancement Program, the City offers various low interest rehabilitation loans to both owner-occupants and investor-owners Rehabilitation benefits also indirectly accrue to other residents of the community from the upgrading of individual parcels as well as the overall improvements made to neighborhoods The City presently uses Federal Community Development Block Grant (CDBG) funds for its rehabilitation loans The staff is developing the programs for the use of Housing Set Aside funds This will allow expansion of the various components of the preservation and rehabilitation program offerings outlined below OWNER-OCCUPIED REHABILITATION The City' s Housing Rehabilitation Loan Program, through the use of Community Development Block Grant program income, provides rehabilitation funds to qualified owner-occupants The program is designed to assist households with lower incomes on a citywide basis and households with very low, low, median and above median incomes in designated rehabilitation target areas shown in Figure 2 In FY 1991, $367,000 in CDBG program income was available o The program provides two forms of financial assistance - below market rate interest (BMRI) loans or deferred payment loans The maximum loan amount for BMRI loans is $15,000 per property The interest rates for participants are as follows * 3% BMRI loans available to families with very low and low incomes on a citywide basis * 6% BMRI loans available to families with median incomes in target areas only * 8% BMRI loans available to families with above median incomes in target areas only The maximum loan amount for a deferred payment loan is $8, 500 citywide with up to $10, 000 available to units in a rehabilitation target areas Maximum loan amounts may be increased only upon review and approval by appropriate City officials Units to be rehabilitated must have been owned and occupied by the applicant at least one year prior to the date of 51 00 •• application for a loan Some exemptions apply if special benefits to the designated target areas will result from the loan activity Only owner-occupants are eligible for Deferred Payment Loans Applications are accepted as long as program funding is available All funds must first be used to eliminate building code violations Remaining funds may then be used for improvements resulting in substantial weatherizing and energy conservation, improvements to ma]or systems in danger of failure (such as heating and plumbing) , roofing, exterior painting, pest treatments, and floor coverings New construction or room addition will be allowed only when overcrowding exists, all improvements must be physically attached to the property and permanent in nature The scope of work is reviewed and approved prior to funding the loan Potential additional funding sources for this program include not only CDBG Program income but CDBG funds, Redevelopment Housing Set-Aside funds or new federal resources such as the HOME Program may be used for this purpose 5 Year Objective Rehabilitate 200 Properties RENTAL REHABILITATION The City' s Multi-family Rental Rehabilitation Program is designed to maintain and improve the affordable rental housing stock and to otherwise assure that a decent, safe and sanitary living environment can be obtained for very low and low income renter households The program also attempts to reduce housing overcrowding The program operates on a citywide basis, however, priority is given to projects located in the Oakview and Florida/Yorktown Target Areas Over the past few years, the City has operated a HUD Rental Rehabilitation Program (Section 17) to achieve the above program objective Through this program, the City has provided up to 50% of the rehabilitation costs The City' s contribution is a combination of below market interest 6% loans for 25% and 25% deferred payment loans which require no payments to be made, no accrual of interest and no fees until such time as the rental property building is sold or title transferred The property owner must "match" these public funds by securing private financing for the remaining 50% of total rehabilitation costs Property owner requirements have included responsible ongoing property management, proper long term property maintenance and avoidance of housing overcrowding Additional financing may be available through the Community Development Block Grant Program depending on need 52 • N • The City will focus rental rehabilitation efforts in the future on the Oakview, Florida-Yorktown and Amberleaf Circle neighborhoods, particularly for investor-owned multi-family properties which can be rehabilitated at a modest per unit cost Wherever possible, projects which would necessitate Davis-Bacon wage compliance will be avoided due to the increased costs associated with this type of project Potential additional funding sources include the HOME Program or Redevelopment Housing Set-Aside funds may be used for this activity 5 Year Objective Rehabilitate 180 units CODE ENFORCEMENT The City has long maintained a stance of enforcing compliance with the City' s zoning, code, building and maintenance to preserve and protect existing neighborhoods against the harmful effects of deterioration caused by neglect and deferred maintenance The code enforcement program is operated through the City' s Community Development Department whose field inspectors respond to complaints related to substandard housing, property maintenance, overgrown vegetation, trash and debris, illegal conversions, improper occupancy and other nuisance and zoning complaints Upon inspection, if violations of code exist, a violation notice is issued to the responsible party A failure to comply will result in code compliance proceedings Due to citizen complaints and community concerns regarding deterioration within the City, the code enforcement program has been expanded to provide three full time field inspectors and a fourth part-time inspector The CDBG Program funds one of the full time inspectors This staffing level enables the Community Development Department to respond to the average monthly caseload of complaints within a reasonable response period 5 Year Objective Handle 1,500 Code Enforcement Actions INCREASED LEVERAGING OF PRIVATE RESOURCES The level of projected Federal, State and local government funding of property preservation programs is limited As a result, the City intends over the next five years to increase the level of financial commitment by the private sector to this effort Specifically, local lending institutions will be increasingly asked to make tangible commitments to the City' s neighborhood preservation/property rehabilitation efforts 53 • N • Due to the strengthening of the Community Reinvestment Act as a result of the Financial Institutions Reform, Responsibility and Enforcement Act (FIRREA) , local lenders are now strongly encouraged to demonstrate significant commitment to local community development efforts It is anticipated that local lender resources will be made available for first and second mortgage loans in conjunction with government subsidies for single family and multi-family properties, where the borrowers are likely to have decent credit and/or significant equity, but cannot afford the monthly carrying costs of 100% private lender financing at market rates These private resources cannot take the place of government subsidies However, local lenders funds can supplement these limited governmental resources, thereby allowing more units to be rehabilitated 5 Year Objective Increase private financing, including firm written commitments from local lenders REHABILITATION REBATE PROGRAM Propose to the Redevelopment Agency the leveraging of private funds by offering owner occupants a rebate of 50%, 40%, 30%, or 20% based on income for preapproved rehabilitation workup to $6, 000 annually 5 Year Objective 500 Rebates MONITOR MARGINAL NEIGHBORHOODS Many of the programs described above are designed to improve the previously identified target areas Monitoring housing conditions in neighborhoods considered at risk is needed in order to prevent more costly deterioration at a later date This effort will require dedication of staff time on a regular basis to windshield survey the City and identify marginal areas This activity will provide a greater awareness for neighborhood development Most property owners will only make further investments in their property if they believe that there is an optimistic future for the particular neighborhood where the property is located and that, their additional investment in their property will be matched by other owners Ultimately, then, all owners will benefit from more stable property values and more attractive homes neighborhoods 5 Year Objective Prevention of Deterioration in Marginal Neighborhoods, 5 surveys 54 • N • Priority #2 - Provide opportunities for homeownership for first-time buyer low/moderate income residents homeownership in Orange County and in the City of Huntington Beach, in particular, is increasingly unaffordable to low and moderate income residents The City believes that increasing the level of homeownership within the community will help improve community pride and attractiveness First time homebuyer programs are not contemplated to begin in Huntington Beach before Fiscal Year 1993 FINANCIAL ASSISTANCE FOR FIRST TIME HOMEBUYERS The City will encourage local private lenders to make home mortgage financing available to low and moderate income Huntington Beach residents through operation of a First Time-Homebuyers Program The strengthening of the federal Community Reinvestment Act has increased the interest of local banks to assist in homeownership programs Also, Fannie Mae and other secondary market first mortgage purchasers now offer attractive programs to private lending institutions that agree to make such loans Lower downpayments and flexible underwriting criteria may be used in this program Where necessary, the City would have the option of utilizing redevelopment Set-Aside Funds or federal HOME Program funds or HOPE III Program funds to make second mortgages Terms and conditions associated with this program are not yet developed The funding source used will be based on an analysis of each funding programs regulatory flexibility 5 Year Objective To create and implement a plan with local lenders re Community Lending for first-time low/moderate income homebuyers MORTGAGE REVENUE BOND FINANCING The City of Huntington Beach has sold Mortgage Revenue Bonds to provide below market rate financing to first-time moderate income homebuyers The City will continue to use this financing mechanism 5 Year Objective One bond issue 55 N • SHARED EQUITY PROGRAM The City is also in the process of developing a Shared Equity Program in which a loan pool will be established using Redevelopment Housing Set-Aside monies or HOME Program or HOPE III monies A Deed of Trust and affordable housing covenant will be secured against the property to ensure the use to be owner- occupied and the loan to be paid back with a proportionate share of the equity at the time the property is sold or the title transferred The covenant will designate the use for not less than ten years 5 Year Objective To create and implement a Shared Equity Program Assist 10 first-time homebuyers MORTGAGE CREDIT CERTIFICATE PROGRAM The City of Huntington Beach plans to explore the feasibility of a Mortgage Credit Certificate Program Under this program, first-time homebuyers would receive tax credits equal to between 20-50 percent of the annual interest payment on their annual home mortgage interest payments 5 Year Objective To create and implement a Mortgage Credit Certificate Program It should be noted that a number of the above described programs could be combined to provide one comprehensive, effective first time homebuyers program 56 • N • Priority #3 - Provide supportive housing and assistance for the "at risk" population The "At Risk" population in Huntington Beach is defined as the families and individuals threatened with loss of their permanent place of residence This population includes those with income below 30 percent of median income, who must pay more than 50 percent of their income for housing and persons being released from substance abuse, penal, mental or convalescent facilities who are in imminent danger of residing in shelters or being unsheltered because of a lack or access to permanent housing Over the next five years, the City will develop a program for the special needs of the "at risk" population to assure that a serious homeless problem does not develop EMERGENCY FORECLOSURE PROGRAM The City is considering establishment of an "emergency foreclosure program" using federal and/or local resources The program would either provide emergency loan relief and/or financial counseling to eligible homeowners who, for reasons beyond their control, are temporarily unable to meet their mortgage or property tax obligations Counseling could be provided by a local lender as part of their community service work, as encouraged by the federal Community Reinvestment Act or by a local nonprofit with training in these matters Loan relief would be limited to low and moderate income owners and would be intended to prevent these families from losing their home Homeowners faced with systemic problems that cannot be solved in a few months would not qualify for such assistance This plan is still in the formative stages and, as a result, no loan terms or conditions have been established This program will not commence until FY 1993 or 1994, sub]ect to funding availability and staff capacity 57 00 • 5 Year Objective To provide emergency financial assistance to at risk homeowners EMERGENCY RENT RELIEF The City also is considering use of federal and/or local resources for short term financial assistance to renter households faced with temporary financial emergencies (e g , medical expenses, sudden unemployment) The term of assistance per family would be relatively brief Highest priority for rent relief would be those low and moderate income families and individuals who would be considered "at risk" of losing their permanent housing References from church shelters and coordinated housing information with the City' s Social Service Commission are anticipated The City will ascertain whether the new federal HOME Program might be appropriate for such a purpose HOME Program funds can be used for short term rental assistance (up to 24 months) 5 Year Objective Establishment of program and emergency assistance to at risk renters ORANGE COUNTY FAIR HOUSING COUNCIL Huntington Beach is a member of the Orange County Fair Housing Council and contributed just over $36,000 in Community Development Block Grant funds for its support during Huntington Beach' s FY1991/1992 fiscal year This Council receives all complaints of discriminatory practices in housing within the City This body provides counseling and information on dealing with discrimination, landlord/tenant problems, special assistance for ethnic minority and single-headed households (which includes escort services to locate adequate housing) , bilingual housing literature and video-tape presentations, day-care services, and housing assistance counseling 5 Year Objective To provide fair housing assistance, as required COORDINATION WITH SOCIAL SERVICE AGENCIES The City has granted in excess of $240, 000 in CDBG funds to social service agencies for the City' s 1991/1992 fiscal year Huntington Beach plans to allocate 15 percent of all CDBG 58 00 •• funds for social services each fiscal year The City will continue to coordinate the operation of housing programs and supportive services for the more than sixteen County and local social service agencies which receive grant funds Some of the organizations receiving grant funds are the Boys and Girls Club of Huntington Valley, The Center for the Prevention of Child Abuse, Community Services Program, Episcopal Service Alliance, Huntington Beach Community Clinic, Huntington Valley Adult Day Care, Legal Aid Society, the Orange County Consolidated Transportation Service Agency, Project Self-Sufficiency and the Shelter for the Homeless 5 Year Objective To financially support social service agencies serving low and moderate income households Transfer approximately $750,000 in 5 years HOME SHARING Many seniors who would prefer to live independently resort to institutionalized living arrangements because of security problems, loneliness, or an inability to live entirely independently A City-funded shared housing program is currently offered at Roger ' s Senior Center in Huntington Beach Roommate matches are made between seniors based on telephone requests In the future, more active program marketing will be undertaken to better advertise the program' s availability to seniors in the community 5 Year Objective To support the "home sharing" concept Priority #4 - Expansion of housing stock for all segments of the community, particularly lower income households. Projections from SCAG for the City of Huntington Beach are that an additional 6,228 housing units will be needed to meet the community' s needs during the effective period of this CHAS In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing, which can more readily be priced to meet the needs of very low and low income households 59 • Due to the "built out" nature of Huntington Beach, the established means of addressing deteriorating conditions within the community has been through the formation of redevelopment project areas To address the problems that arose with regard to the effect of redevelopment on low and moderate income housing, the California State Legislature passed the following requirements regarding affordable housing 1) expenditure of 20 percent of the tax increment revenue to increase and improve the supply of low and moderate income housing in a community, 2) requirements that redevelopment agencies replace low and moderate income housing which is destroyed as a result of a redevelopment project, and 3) requirements that a portion of all housing constructed in a redevelopment project area be affordable to low and moderate income persons and families NEW CONSTRUCTION Tax-Exempt Mortgage Program In conjunction with the County, the City maintains an on-going program to provide tax-exempt mortgage financing for construction and permanent loans for multi-family housing Federal law requires that 20 percent of the total units in a bond-financed project be reserved for lower income households Recent State legislation requires that one half of the reserved units be set aside for very low income households Density Bonus Incentives Pursuant to State law, if a developer allocates at least 20 percent of the units in a housing project to lower income households, 10 percent for very low income households, or at least 50 percent of "qualifying residents" (e g , senior citizens) , the City must either a) grant a density bonus of 25 percent, 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 units The density bonus mechanism has proved an effective tool for encouraging affordable housing, in the City with 136 affordable units in 13 projects completed under this program In order to ensure the continued affordability of units provided under the program for a minimum of 30 years, the City will require that restrictive covenants be filed with the deed on all new density bonus projects and will bi-annually monitor the units 60 Land Assemblage and Write-Down The City has under consideration the possible use of CDBG and redevelopment set-aside monies to write down the cost of land for 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 (usually non-profit) 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-and off-site improvement costs Talbert-Beach Redevelopment Area The City' s Redevelopment Agency has assisted in the consolidation of previously inaccessible parcels in this 25-acre project area to facilitate residential and industrial development The following residential projects have been constructed in this project area to date 1 Emerald Cove - a 164 unit affordable housing senior apartment project This project received a National Certificate of Merit from HUD for public/private partnerships 2 Windward Cove - a 96 unit senior condominium complex with initial purchase prices well below market rates 3 Capewood - a 54 unit condominium complex for families The developer of these units participated in the single family Mortgage Revenue Bond Program to provide below market rate homes to first time homebuyers The Redevelopment Agency is currently negotiating a disposition and development agreement for the development of a 92 unit residential project with Agency assistance At least 25 of the units will be affordable to moderate income residents 5 Year Objective Develop minimum of 25 additional affordable homeownership units SECOND UNIT ORDINANCE The City of Huntington Beach has amended its ordinance code by adding a new subsection pertaining to second units in single family residences A second unit may be added to an existing single family structure subject to standards within the ordinance This ordinance can provide a cost effective means of providing additional development through the use of existing 61 0 00 0 infrastructure and should provide relatively affordable housing for low and moderate income small households, within existing under-utilized structures However, applications for second units currently require a Conditional Use Permit 5 Year Objective Continue to offer second unit ordinance provision SECTION 8 RENTAL ASSISTANCE PAYMENTS/HOUSING VOUCHERS The Section 8 rental assistance program extends rental subsidies to low income families and elderly who spend more than 30 percent of their income on rent The subsidy represents the difference between the excess of 30 percent of their monthly income and the actual 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 in the certificate program, participants are permitted to rent units beyond the federally determined fair market rent in an area provided the tenant pays the extra rent increment The City of Huntington Beach contracts with the Orange County Housing Authority to administer the Federal Section 8 Certificate/Voucher Program According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region in pursuing needed rental subsidies As of March 1, 1989, Huntington Beach had secured a total allocation of 577 housing vouchers and certificates Consistent with the City' s Housing Assistance Plan, the City' s five year assistance goal is for an additional 238 rent subsidies However, it is impossible to know how many additional housing vouchers the City will actually receive from HUD Huntington Beach hopes to continue to provide for the housing needs of large families through the provision of housing vouchers for larger units to accommodate currently overcrowded households Emphasis of voucher combined use with the Rental Rehabilitation Program objectives will be vigorously pursued 5 Year Objective 238 Additional Housing Vouchers 62 • 00 0 Priority #5 - Preservation of affordable housing for City residents with special needs, especially for large families and the elderly As stated in the Community Profiles section of this CHAS, the elderly and large families with children represent two of the fastest growing segments of the population in Huntington Beach Consequently, the City will establish the elderly and large families as a priorities in many of its existing and proposed programs SINGLE FAMILY REHABILITATION PROGRAM As stated in the Community Profiles section, over 18 percent of the homeowners in the City are over the age of 65 Over 36 percent of the homeowners in Huntington Beach are over the age of 55 The single family rehabilitation program was described earlier To the maximum extent possible, elderly homeowners and large families will be provided financial assistance to maintain their properties Mobile homes occupied by lower income elderly will also be assisted in this Program Large family benefit will also be a focus of the Single Family Rehabilitation Program in order to provide additions to homes to alleviate unit overcrowding and deterioration 5 Year Ob]ective Assist 125 elderly and 35 large families SUPPORTIVE SERVICES FOR THE ELDERLY Whether the elderly are homeowners or renters, supportive services often are necessary to meet their needs The City will coordinate rehabilitation assistance with the appropriate social support services as offered by County, City and nonprofit agencies There are numerous resources available to the elderly population of Huntington Beach There are County advocacy organizations, Disabled and Emergency Service organizations, Financial Assistance agencies, Food and Nutrition Services, Health and Medical Services, Hospice Care, Housing Information and Referral, In-Home Services, Nursing and Convalescent Homes, Adult Protective Services, Retirement/Board and Care Homes, numerous Senior Centers, Transportation Services for the Elderly and Volunteer Programs to assist the elderly in leading full and productive lives 63 • 5 Year Objective Continue to increase coordination with Related City Social Service Agencies HANDICAPPED GRANT PROGRAM Handicapped households have special needs which include access ramps, wider doorways, assist bars in the bathrooms, lower cabinets, and special access sources to second stories The City is working with the Dayle MacIntosh Center for the disabled of Orange County to encourage owners of rental units to make a share of such units available for accessibility modifications The City utilizes CDBG funding to offer $2, 000 handicapped modification grants to multi-unit property owners to encourage modification to existing units to meet these special needs of the handicapped Also, as part of the ongoing single family housing rehabilitation program, handicapped owners will be targeted for receipt of CDBG to make housing accessible to handicapped persons This effort should increase locational choice for the physically disabled 5 Year Objective Assist 10 renter and 10 owner households with home modifications for the physically disabled PRESERVING EXISTING AFFORDABLE MULTIFAMILY HOUSING A community' s existing affordable housing stock is a valuable resource which should be conserved and, if necessary, improved to meet habitability standards The City of Huntington Beach has four federally assisted (Section 221, 231 & 236) multifamily housing projects with the potential for conversion to market rate with expiration of the original loan In order to address this potential loss in affordable units, the City is considering development of a Multi-Family Unit Interest Rate Write-Down Program This program will offer a lump sum write-down of an existing interest bearing note to reduce debt service on existing multi-family apartment complexes In return, the property owner will execute with the City a recorded covenant requiring the continuance of affordable rental rates to low and moderate income households for a minimum of fifteen years A second approach which may be pursued to conserve existing affordable units would be for a non-profit sponsor to purchase Section 236 or other subsidized projects at the current market value with financing provided by tax-exempt multi-family revenue bonds issued by the City The rating of these tax-exempt securities could be enhanced by pledge of the redevelopment housing set aside funds, thus reducing the net interest cost of the mortgage loan 64 00 • 5 Year Objective Assure all lower income tenants in existing HUD multi family projects are protected from displacement Priority #6 Ensure that persons displaced by redevelopment activities receive financial assistance and replacement units on a one-for-one basis The City will need to continue to monitor and assure replacement of low and moderate income housing which is demolished or converted by redevelopment activities One such program described below will require the City to minimize permanent displacement of residential rental tenants as a result of program activities MOBILE HOME OVERLAY ZONE AND CONVERSION ORDINANCE This ordinance contains requirements for applying the mobile home park overlay zone and provides minimum standards for an acceptable mobile home relocation assistance plan if a mobile home park is converted to other uses Many senior citizens and low income households presently reside in the City' s mobile home parks According to the City, the goal of the mobile home relocation assistance plan is to provide alternative housing opportunities for mobile home residents who may be displaced as a result of the conversion of mobile home parks to other land uses Any displacement of mobile home units (or any low or moderate income housing) resulting from City-sponsored redevelopment activities will be replaced in equal number within four years and will be available at affordable rates It is the City' s responsibility to meet and consult the mobile home park owners and tenants who are potential displacees from mobile home parks which the City intends to convert to other uses, assess the impacts of displacement and prepare a strategy to address the needs of the displacees Provision of financial assistance for relocation of persons that are moved permanently and involuntarily from real property due to physical rehabilitation activities is required by the federal law Tenants will not be considered displaced if they were offered assistance and refused the assistance ASSISTANCE TO DISPLACEES Depending on availability, displacees will receive either Section 8 rental subsidy assistance, or relocation assistance pursuant to the provisions for permanent displacement of the U S Uniform Relocation Assistance and Property Acquisition Act of 1970 65 • N • An eligible lower-income tenant who is displaced may elect one of the following options a Obtain Federal Section 8 rental assistance This rental assistance will be provided each month in an amount which is the difference between the rent for the new housing unit and thirty percent of the income of the household b Obtain a monthly replacement housing payment sufficient to enable the persons to rent a comparable dwelling unit Monthly payments may be made for up to a 42 month period c Obtain a one-time lump sum replacement housing payment for purchase of a dwelling unit If this option is chosen, funds will only be released upon verification that a specific property has been identified and mortgage financing has been obtained A non-lower income tenant may be eligible for a monthly replacement housing payment sufficient to enable the person(s) to rent or buy a comparable dwelling unit In addition to the above options, the displaced tenant family may choose to receive either a payment for actual moving and related expenses or a fixed moving expense and dislocation allowance The City will provide at least 90 days advance written notice to move Information and counseling will also be provided to each tenant and will include information to familiarize displacees with opportunities to select appropriate replacement housing within the full range of available housing and individual rights under the federal Fair Housing Law No displacees will be discriminated against in the provision of information, counseling, referrals, or other relocation services 5 Year Objective Assist all eligible residents who are displaced 66 C RESOURCES Given recent developments at the Federal and State levels in the authorization and funding of housing programs, it is difficult, if not impossible, to project what public resources will be available over the next five years Budget constraints at all levels of government have further complicated the "resources" question Federal Resources and Programs At the Federal level, many HUD Programs have a doubtful future It would appear that the HUD Rental Rehabilitation Program will be terminated Similarly, the HUD Section 202 Elderly and Handicapped Housing, Section 312 Rehabilitation Loan Program and other programs will be ended In their place, the Federal government is likely to fund two programs authorized by the National Affordable Housing Act - the HOME Program and HOPE Programs I, II and III The HOME Program regulations are published This program is designed to replace a number of categorical HUD Programs with a flexible new resource, which allows considerable local government discretion Eligible activities under HOME include * Single family rehabilitation * Multifamily rehabilitation * Substantial reconstruction * New construction * Rental assistance * Acquisition * Homeowner assistance At this time it is not possible to project what will be the impact, if any, of these programs in Huntington Beach In fact, funding levels have not even been finalized for the FY 1992 HOME and HOPE programs At least for Fiscal Year 1992, however, the City may be eligible to receive a direct federal allocation of approximately $881,000 to actual in HOME Program funding No decision on actual activities funded with HOME monies can be made at this time HOPE III funds, another new federal resource, also may prove helpful as a means of encouraging a first-time homebuyer program A HOPE III Planning Grant may prove especially useful in developing local nonprofit capacity The Federal Community Development Block Grant Program (CDBG) , which has been used aggressively by the City for many years, will continue to be a primary source of funds for many City affordable housing programs As previously mentioned, the City will also work closely with the County regarding the availability of Section 8 Certificates and Housing Vouchers for very low income and low income renters 67 • • Federal low income tax credits is a significant source of equity for rental housing development The credit serves as a valuable income tax benefit to corporate investors Investors will contribute cash for the development costs of a low income project in order to obtain these tax benefits The City will encourage developers and nonprofit sponsors to pursue this subsidy source in the future State Resources and Programs There are two State agencies which provide resources which can help the City fund affordable housing programs, the California Housing Finance Agency (CHFA) and the California Department of Housing and Community Development (HCD) The CHFA provides debt financing for rental and homeowner housing Most of its financing is provided by the issuance of tax-exempt bonds These bond issuances are not typically designed solely for low income households However, loans made with bond proceeds, are subject to the federal and California requirement that at least 20 percent of the units be rented to very low income persons or 40 percent of the units be rented to persons with incomes below 60 percent of median income CHFA financing for rental housing often can be combined with the Federal low income tax credits (which are allocated by the State) in order to help facilitate the development of projects that can benefit low income renter households Financing assistance to low and moderate income homeowners can also be provided by the CHFA The other State agency, the Department of Housing and Community Development (HCD) , focuses less upon debt financing and more upon the subsidy requirements necessary for the promotion of low and moderate housing The particular programs available from HCD tend to change over time depending upon the needs within the State and the voter passed propositions that have been approved The City will continue to assess whether any of the HCD program and resources can be effectively utilized over the next five years to supplement federal and local resources Specifically, the City will consider seeking CHRP-O (homeowner rehabilitation) and CHRP-R (rental rehabilitation) assistance from HCD, starting in Fiscal Year 1993 if such programs are still available Sufficient staff capacity will not be available in FY 1992 to operate these programs The State of California maintains a Low Income Housing Tax Credit program which is similar to the Federal program described above The City will encourage private and nonprofit developers to fully use this resource in the future 68 • 0 Local Resources and Programs The City of Huntington Beach' s Redevelopment Agency was authorized to establish an Affordable Housing Fund through the use of Redevelopment Housing Set Aside Funds The City encourages property owners to upgrade and maintain property consistent with the City' s building and property maintenance codes Rehabilitation loans are available to low/moderate households Further wherever dwelling units housing persons of low or moderate income are removed for redevelopment purposes, an equal number of replacement dwelling units at affordable rents will be rehabilitated, developed, or constructed within the project area or city The Talbert Beach Redevelopment Project Area has provided for units at below market purchase prices, plans for an additional 25 units are underway A number of rehabilitation and redevelopment projects will be funded with Redevelopment Agency Housing Set Aside funds over the next five years Work is currently underway to determine how funds will be used for affordable housing needs Redevelopment Housing Set Aside Funds can be used for a variety of options, including the following - Land Disposition and Write-Downs - Site Improvements - Loans - Grants - Issuance ok Bonds - Land and Building Acquisition by Agencies - Direct Housing Construction - Housing Rehabilitation Programs - Rent Subsidies - Redevelopment Funds - Administrative Costs for Non-Profit Housing Corporations The City has accumulated approximately $3,000, 000 in the Redevelopment Housing Set Aside Fund, available for future affordable housing initiatives Private Resources and Programs Government resources cannot solve all the City' s affordable housing needs The City believes that these limited funds should be used to supplement and, wherever possible, leverage resources provided by the private sector Local lending institutions will be asked to actively participate in the implementation of this housing strategy It appears that Bank of America, State Bank, First Interstate, Security Pacific, Wells Fargo, Huntington National and Liberty National banks are all willing to participate in affordable housing efforts discussed above in their individual capacities These and other lending institutions are increasingly becoming aware that 69 • • community development programs for low and moderate income households make good business sense Recent federal legislation, which strengthened the Community Reinvestment Act, has further encouraged local lending institution participation The City will also encourage local lenders to apply for funds from the Federal Housing Finance Board' s Affordable Housing Program (AHP) This two year old program can make subsidized financing available to participating lenders for purchase and rehabilitation of single family and multifamily housing D ORGANIZATIONAL CAPACITY The City' s Economic Development Department and Community Development Department will share responsibility for implementation of the above programs The Economic Development Department is composed of three main sections 1) Housing, 2) Economic Development, and 3) Redevelopment Agency The Community Development Department is composed of two sections 1) Housing, Building and Code Enforcement, and 2) Planning The majority of the affordable housing programs and services described in this CHAS will be carried out by the two Housing Sections There are currently five (5) staff people assigned to Housing 3 in Community Development and 2 in Economic Development In addition, all of the City' s Planning, Code Enforcement and Building staff are involved directly and indirectly in regulation, design, construction, maintenance and quality of the City' s neighborhoods Working in concert with private and non-profit agencies, it is expected that capacity will not be a limiting factor in achieving the above stated objectives 70 • • In addition the City actively supports numerous nonprofit agencies listed below CDBG 1991-92 1 BOYS AND GIRLS CLUB OF HUNTINGTON VALLEY $ 5,000 2 CENTER FOR THE PREVENTION OF CHILD ABUSE $ 4,000 3 COMMUNITY SERVICES PROGRAM (CSP) $ 8, 500 4 EPISCOPAL SERVICE ALLIANCE $ 9, 650 5 FEEDBACK FOUNDATION, INC PROJECT TLC $17,000 6 GIRLS & BOYS CLUB OF FOUNTAIN VALLEY - $ 8, 000 HUNTINGTON BEACH 7 HUNTINGTON BEACH COMMUNITY CLINIC $32,000 8 HUNTINGTON VALLEY ADULT DAY CARE $ 5,000 9 INTERVAL HOUSE $17, 000 10 LEGAL AID SOCIETY $30,000 11 ORANGE COAST OF INTERFAITH $ 5,000 12 ORANGE COUNTY YOUTH & FAMILY SERVICE (AMPARO) $ 5,000 13 PROJECT SELF-SUFFICIENCY $35,000 14 SALVATION ARMY $ 5,000 15 SHELTER FOR THE HOMELESS $10,000 16 FAIR HOUSING COUNCIL OF ORANGE COUNTY (Service) $34,417 (Assessment) $ 2,487 71 • i E POTENTIAL CONSTRAINTS TO AFFORDABLE HOUSING The City of Huntington Beach is keenly aware of the important impact various government policies can have upon the availability of affordable housing within our community We endorse the federal government ' s initiative in promoting the elimination of "barriers" to affordable housing that may exist The housing constraints that affect affordable housing in Huntington Beach are primarily economic and not regulatory or policy oriented Rising costs within the construction industry, the cost and availability of financing and the high demand for a limited amount of land have combined to constrain housing production, particularly for low and moderate income persons The net result is significantly higher costs for housing in a period when incomes are not be rising at the same pace However, the City has used and continues to use available resources including federal, State and local resources, fair housing counseling, and a conducive regulatory environment to promote affordable housing a Traditional Suburban Barriers to Affordable Housing the City is not experiencing or encouraging barriers that are present in many suburban communities throughout the Nation There are no "gold-plated" zoning or development requirements such as extra wide roads, excessive street lighting, property set back requirements or the like For the most part, new construction is not an option in Huntington Beach, the growth having occurred during the last 20 years b Regulatory Environment In recognition of the many constraints facing home developers, the City has taken a number of steps to foster development while still protecting community standards First, development fees are set at levels comparable to neighboring cities Likewise, Huntington Beach' s land use controls, building codes, site development standards and processing procedures are quite comparable and, in many cases, less restrictive than those of surrounding communities c Building Codes and Enforcement The City of Huntington Beach has adopted the State of California ' s Uniform Building, Housing, Plumbing, Mechanical and Electrical Codes These codes are considered to be the minimum necessary to protect the public health, safety and welfare The local enforcement of these codes does not add significantly to the cost of housing 72 • 0 d Rent Controls The City does not have a rent control ordinance and does not impose any other rental income limitation on City property owners e Development Fees Recent surveys of development fees in the area indicate that Huntington Beach' s development fee schedule is in line with its neighboring communities f Fees and Improvements Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure Almost all of these fees are assessed through a prorata share system, based on the magnitude of the project ' s impact or on the extent of the benefit which will be derived However, these fees contribute to the cost of housing and may constrain the development of lower priced units The State of California requires that the City monitor all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs The City' s Senior Citizen Residential Suffix Zone establishes reduced development standards (e g , parking requirements) to lessen the cost of developing housing for the elderly g Compliance with Rules of Higher Levels of Government One of the most significant factors impacting local affordable housing concerns are the constraints imposed by higher levels of government Examples include, but are not limited to, County subdivision processing schedules, County Housing Authority processing and allocation of existing Section 8 units, State mandated laws and Federal administrative requirements (environmental reviews, Davis- Bacon, etc ) h Fair Housing Education The City of Huntington Beach is a member of the Orange County Fair Housing Council designed to limit discrimination in housing, and hence to increase the level of affordable housing to minorities This agency investigates allegations of housing discrimination, educates the public as to their rights under the law, and provides assistance to persons seeking rental housing The council also provides mediation assistance and referral Nevertheless, the City acknowledges that much still must be done to increase affordable housing opportunities As a result, the City is re-evaluating many development fees, regulations and City ordinances to determine whether any further revisions may be appropriate to enhance affordable housing for low income residents of the City 73 • • 1 Permits and Processing Times The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit ' s selling price One potential way to reduce housing costs is to reduce the time for processing permits As review times are already streamlined in the City, cost savings from "fast track" processing would be minimal Nonetheless, as land holding costs can run over $1, 000 per unit for a 9 to 12 month period, the City is considering developing an expedited processing procedure for residential projects with an affordable component This program would be helpful in reducing holding costs while processing the approvals necessary for zone changes, density bonuses, plan check and building permit procedures, thereby resulting in lower construction costs and more affordable housing The specific procedures for fast-track processing of affordable housing projects could be developed as part of the update to Division 9 of the City Ordinance Code 74 0 • ONE YEAR ACTION PLAN 75 • • ONE YEAR ACTION PLAN The City of Huntington Beach has developed an ambitious five year strategy to meet the affordable housing needs of its citizens, as described in the previous section of this CHAS All of the priorities and programs which the City hopes to address over the next five years cannot be addressed in Fiscal Year 1992 With limitations in the amount of funding and in the size of the available staff, the City wants to avoid attempting to tackle too many priorities and programs at once This One Year Action Plan section of the CHAS summarizes the particular priorities and programs that the City would like to address in FY 1992 As the City increases its capacity and after successful implementation of the FY 1992 programs, the City will be in a better position to implement other priority tasks in years 1993 through 1996 A RESOURCES FOR FY 1992 PROGRAMS Federal As reflected on Table 4/5A, the City has basically relied on the Community Development Block Grant Program (CDBG) in the past and in the present, as the federal resource to finance its affordable housing programs The CDBG program and/or CDBG Program Income will continue to be used to partially or totally finance the Single Family Rehabilitation Program, Multi-family Rehabilitation Loan Efforts, Handicapped Grant Program, Code Enforcement, the provision of grants to non- profits, neighborhood public services and facilities which serve the homeless and "at risk" population and other possible activities in FY 1992 In recent years, the City has used the Rental Rehabilitation Program to upgrade units for lower income renter families The City currently has approximately $110,000 in HUD Rental Rehabilitation Program funds to commit during FY 1992 The City would like to participate in the federal HOME Program in FY 1992 subject to funding by the federal government As previously mentioned, HOME funding for this fiscal year has not been finalized as of the date of this CHAS The City will use the next six months to assess the HOME Program opportunities and requirements and to review in house staff capacity to participate in this program 76 • • Similarly, the City is not in a position to accurately determine if HOPE Program III monies might be available in FY 1992 and, as a result, no specific plans for using these funds have been made in this FY 1992 implementation plan The City is considering requesting a HOPE III Planning Grant State State CHFA and HCD funds will be sought if program purposes and funding availability are compatible with the needs of the City over the next year State funds may become a welcomed and viable supplement to programs that will commence late in FY 1992 using either local Redevelopment Set Aside Funds or federal HOME or HOPE Program monies However, at this time, no such program funding has been received from the State Table 4/5A does not reflect any State funding Local The City' s Redevelopment Housing Set Aside funds are available for commitment to particular projects in late FY 1992 or early FY 1993 As previously discussed, the City is developing the capacity and requisite program and fund use guidelines so that program implementation can begin in late FY 1992 As a result, goals for commitment of the Huntington Beach' s Redevelopment Housing Set Aside Funds for FY 1992 project are modest Specific more significant quantifiable goals are contemplated to be included in the FY 1993 CHAS Accordingly, Table 4/5A shows a large funding availability, but relatively modest expected commitments for FY 1992 Private In FY 1992, the City will lay the ground work for affordable housing efforts which may be assisted by local lending institutions It is expected that sometime in FY 1993, these plans will be translated into specific quantifiable goals This will establish a foundation for continued meaningful affordable housing coordination with local lenders starting in FY 1993 B IMPLEMENTATION Below is a summary of each of the priorities listed in the Five Year Strategy section of this CHAS and the One Year Objective that has been established by the City 77 • • Priority #1 Rehabilitate of the City' s existing single family and multifamily housing stock in order to preserve the City' s neighborhoods 5 Year To rehabilitate 400 single family properties for the benefit of moderate income households Result To rehabilitate rental units Using Rental Rehab Program and Redevelopment Housing Set Aside Funds To monitor marginal residential redevelopment target areas to preempt neighborhood deterioration To handle 1, 500 code enforcement actions To significantly increase local lender participation in rehabilitation programs To continue to provide non-profit public services in preservation of community spirit 1 Year Goal During FY 1992, rehabilitate 80 single family properties for the benefit of low and moderate income households To rehabilitate 36 units with Rental Rehabilitation Program funds To establish loan policy and program guidelines for uses of Redevelopment Housing Set Aside Funds To develop a monitoring plan and survey schedule to assess marginal residential areas of the City To handle 300 code enforcement actions To discuss with local lenders their increased participation in rehabilitation programs 78 • 0 Priority #2 Provide opportunities for homeownership, for low/moderate income residents, particularly for first time homebuyers 5 Year To provide downpayment assistance for 125-150 Result first time homebuyers To assist first time homebuyers through City' s Shared Equity Program To permit condominium conversions to increase ownership by low and moderate income households To assist first time homebuyers through the Mortgage Credit Certificate Program 1 Year Goal To formalize written guidelines for such a program, confirm lender participation and develop public information campaign To publish and market the program and financial guidelines for the Shared Equity Program To evaluate the City Ordinance on condominium conversion To work with local lenders to establish a Mortgage Credit Certificate Program 79 • • Priority #3 Provide supportive housing needs assistance for the ' at risk" population 5 Year Establish an Emergency foreclosure program Result Establish an emergency rent relief program To continue to participate in the Orange County Fair Housing Council and provide greater public information on services offered To continue dialogue and analysis of homeless problem with Social Service Agencies to prevent homelessness wherever possible To provide 150 Home Sharing matches to elderly residents 1 Year Goal To develop guidelines for both the emergency foreclosure and rent relief programs in anticipation of future year funding To continue financial support for services of the Orange County Fair Housing Council To establish formal network of homeless assistance, including job training, day care and shelter assistance To provide 25 elderly home sharing matches 80 • i Priority #4 Expand the housing stock for all segments of the community, particularly lower income households 5 Year To develop and build 200 new units of affordable Result low and very low income housing through lender cooperation and Redevelopment Housing Set Aside funding To use tax exempt financing for new construction, if available To permit density bonus incentives To encourage and assist in the provision of second units to alleviate overcrowding To use new HOME Program for new construction projects 1 Year Goal To develop a plan with City officials in cooperation with local lenders for development of target areas To maintain second units as an option to rehabilitation and increased rental assistance for elderly To negotiate development of 92 unit project in Talbert-Beach To determine feasibility of using HOME Program funding for new construction of affordable housing 81 0 • Priority #5 Preservation of Special Needs Housing, especially for large families and the elderly 5 Year To encourage participation by elderly owners and Result large families of single family properties in the rehabilitation program At least 125 program participants will be elderly and 35 will be large families To continue successful coordination with Social Service Agencies regarding the needs of elderly in single family and multifamily housing To facilitate the construction of at least 164 additional units of elderly and handicapped housing in the City To obtain an additional 238 Section 8 Housing Vouchers To retain existing publicly-subsidized housing projects through an interest write-down program using redevelopment housing set aside funds or new federal funding 1 Year Goal To increase marketing efforts toward elderly single-family homeowners and large family with properties in need of properties To continue to provide grant funds to Social Service Agencies which serve the supportive needs of special populations To target areas for the construction and rehabilitation of units for elderly and handicapped, close to transportation and life services To coordinate rental assistance needs with the Orange County Housing Authority To develop an interest rate write-down program to preserve existing multifamily affordable housing projects 82 Priority #6 Ensure that persons displaced by redevelopment activities receive financial assistance and replacement units on a one-for-one basis 5 Year To assist displacees subject to permanent and Objective involuntary relocation 1 Year Goal To develop a displacement assistance policy and target funds for financial assistance To assure that mobile home residents are not displaced without assistance In addition to the above goals, the City will also continue to reassess whether any policies, regulations, ordinances or programs should be revised in order to eliminate any barriers to affordable housing C MONITORING POLICY The City of Huntington Beach understands that all efforts using Federal, State and local resources to provide affordable housing to residents must be conducted in accordance with established laws, regulations and sound management and accounting practices Internal monitoring of the aforementioned affordable housing tasks will be conducted on an ongoing basis by City managers One of the benefits of having a small nucleus of staff responsible for the majority of these tasks is that close oversight of day to day activities is relatively easy In addition to ongoing day to day supervision, the City also will conduct monthly meetings of staff regarding program progress and performance in adhering to all established requirements Monthly reports will be submitted to the appropriate City officials Along with nonprofit agencies which carry out a portion of the affordable housing mission, the City of Huntington Beach is attempting to provide affordable housing to all residents The City will establish a "subrecipient/participant" monitoring plan for the non-profits At a minimum, this plan will require the submission of periodic reports on nonprofit activities and full and complete, audited financial statements Finally, the City has adopted internal procedures to assure that the CDBG public -service cap of 15 percent is not exceeded in any future fiscal year 83 HAS Table 4/5A JUId 1 J ��JIJ� U S Uspartmenl of tlouaing and Urban Development Office of Community Planning and Development nticlpated Resources & Plan for Investment Corr4wettenslve Floustng Affordability Strategy (CHfAS) meof-koadKzoryx)orc CITY OF 4UNTINGTON BEACH_ _ _ _ _ EY 1992 Funding Source Anbupaled resources expo.lod to be committed to propcts/acbvilies dump FY ($000 E.) - - — - Fedwal Funds Awarded Mtrapate Expect or to be Awarded to be Avarlabla to Conwwt Ac'quiswon Tonarit _ Fdew Fiume l3uyor -Planning Su rabn PPat � g Assistance ComViicuon Assistance Grants Sorvicos Costa to.Jurisdlctlon (A) (13) (C) (D) (E) (F) (G) (H) (I) (J) Homo -0- -0- N/A N/A N/A N/A N/A — — l Hope t -0- -0- N/A N/A N/A N/A N/A N/A H 2 -0- -0- N/A N/A N/A N/A N/A N/A Hope -0- -0- N/A N/A N/A N/A N/A CDBG 2 , 004 , 94 700 , 0001, 700 , 000 -0- -0- -0- -0- -0- DOEXAharEnergyPig -0- -0- N/A N/A N/A Other RENTAL .-V zM REHAB 110 , 000 110 , 000 110 , 000 —0— —0— —0— —0— —0— —0— —0— N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Subtotal Housing 25114 , 947 810 , 000 810 , 000 —0— —0— —0— —0— —0— —0— —0— Co 0 CDBG (Htomalass) 85 , 650 —0— —0— —0— —0— —0— 85 , 650 — 1 -0- -0- N/A N/A N/A N/A 12 Pand Housing or -0- -0- N/A N/A N/A N/A N/A Handlcappad 13 TransttlonalHousing -0- -0- N/A N/A N/A N/A N/A 14 Shaker Plus Cara -0- -0- N/A 15 Other (sly) -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 16 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 17 -0- -0- N/A N/A N/A N/A N/A N/A N/A NfA 16 Subtotal Homeless —0— 85 , 650 —0— —0— —0— —0— —0— —0— 85 , 650 —0- 1) T-1 I - I I 11 In NIA .Mzl j/ . . .. . We MV"O %% VA 9 � MFM 1 Anbrapatod racoutco o rm+tiod ba propctc/acYvtOer dump FY (WW s) FundtN-�ourco Anecapale Expect to bo Available to Goavnil Rohabr4tatron Acguw Upon Tonant New Homo&,yur Planning Support �UIJLIIU Non Federal Funds Assistance Comtrucwn Asawtanoe Giants sorvrcos Gobs (A) (B) (C) (l7) (E) (F) (G) (li) (I) P) State Funds(Speclly) 41 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 42 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 43 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 4 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 45 Subtotal SUIS Funds _0- -0- N/A N/A N/A N/A N/A N/A N/A N/A Local Fronds(Spectty) 46 7 , 000 , 00 500 , 000 50 , 000 200 , 000 -0- 250 , 000 -0- -0- -0- -0- 47 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 49 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 49 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 50 Subtotal Local Funds 7 000 , OOC 500 , 000 50 , 000 200 , 000 -0- 250, 000 -0- -0- -0- -0- Ivab Routs(Spactly) 51 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 52 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 53 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 54 -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 55 Subtotal Privalsfunds -0- -0- N/A N/A N/A N/A N/A N/A N/A N/A 5o Total NorrFedomil' nis 7 ,000300 500 , 000 50 , 000 200 , 000 -0- 250 , 000 -0- -0- -0- -0- 51 Grand Total Ail Funds , 469 , 94 7 1 ,750 , 650 860, 000 200 , 000 355 , 000 250 , 000 -0- -0- 85 , 650 -0- CHAS Table 58 U S Department of Housing and urban Development O(ke of commumty PtartrwV end Developn►eru Goals for Families lUtl I b V-0 to be Assisted with Housing Comprehensive Housing Affordability Strategy (CHAS) rd.m.ol,kn.bcioNa)a Conaofbum FY CITY OF HUNTINGTON BEACH 1992 fionlors __ Ownum As6isLance Provided Total Tot.t Eldorty —Tota)-- Exlsenq Frrsl Trnw Hom ors TOLJI by Income Group Section 13061111 1 &2 btombor Smal Rolalod Largo Rolated All Odwr Renters Homeowners Wiilh ChiUen btwrs Hornooavamis 215 Goak Homeho)da (2 b 4) (6 or more) Housetu s (A) (B) (C) (D) (E) (F) (G) (li) (I) P (K) �ry Low-kwome �nW%01l*11 680 965 168 480 240 53 941 24 -0- -0- 24 2 I.bdRehab&Ac9 40 52 -0- 5 23 -0- 28 24 -0- -0- 24 1ALaied lr Su-uMxeb -0- -0- -0- -0- -0- -0- -0- w.la,.d wr as r„cLr. 4 tTw"Aaalsrano. 640 640 120 440 80 -0- 640 s Hofr.6".rAa,ra,a" -0- -0- -0- -0- -0- s"pgOf1$4cic" 273 48 35 137 53 273 -0- -0- -0- -0- 0C a pm io 'rl"`°""eox of 1dF q 15 32 5 12 5 -0- 22 10 -0- -0- 10 (s t x to Mod Fl.habAAoq -0- 10 -0- -0- -0- -0- -0- 10 -0- -0-__ 10 �PaLawdkr aruciwhab _0_ -0- -p- -0- -0- -0- -0- -0- -0- -0- -0- Fl.l.,ed riiaatucur. 1 o Hemet A sue t.no. l 22 22 5 12 5 -0- 22 t t lton,.�,r«Asaiaunce _0_ -0- / 12 s"pPor SWAG" / -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- 13.TowLow-kwAww 695 997 173 492 245 53 963 34 -0- -0- 34 (t,n.* t and-T) 14 ou,«rxorn. � -- — — --- — - - --- (uo+.n.nBoxolldfl) -0- -0- -0- -O- -0- -0- -0- -0- -0- -0- 15 GrandTotal Ilnaa Land 14) 997 173 492 245 53 963 34 -0- -0- 34 O, d"opiaia bawd on 1lUO ncorn.lmu rndi r.quvud atatuWry adluatrnenta --- APPENDIX • 0 GENERAL DEFINITIONS USED WITH THE CHAS Affordability Gap The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income Affordable Housing Affordable housing is generally defined as housing where the occupant is paying no more than 30 percent of gross income for gross housing costs, including utility costs Affordable housing has a more specific definition for purposes of completing Table 5B That definition is included in the instructions for Table 5B Committed Generally means there has been a legally binding commitment of funds to a specific project to undertake specific activities Expanded definitions for completing Table 4/5A are included in the instructions for Table 4/5A Cost Burden > 30% The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data published by the U S Census Bureau Cost Burden > 50% The extent to which gross housing costs, including utility costs, exceed 50 percent of gross income, based on data published by the U S Census Bureau Elderly Household One or two person households containing a person at least 62 years of age, and non-elderly handicapped individuals, including those currently institutionalized but who are capable of "group home" living Existing Homeowner An owner-occupant of residential property who holds legal title to the property and who uses the property as his/her principal residence Family The head of a household and all other persons living in the same household who are related to the head of the household by blood, marriage or adoption First Time Homebuyers An individual or family who has not owned a home during the three-year period preceding the HUD-assisted purchase of a home that must be used as the principal residence of the homebuyer Group Ouarters A facility housing groups of persons not living in households (U S Census definition) Examples of group quarters include institutions, dormitories, shelters, military quarters, and other quarters, including SRO housing, where 10 or more unrelated individuals are housed • • HOME Program The HOME Investment Partnerships Act, which is Title II of the National Affordable Housing Act A new federal affordable housing program Household Persons living in a housing unit Table 1D Instructions provide a special definition of "household" as it is used in Table 1D Housing Unit Houses, apartments, and separate living quarters, including SRO housing, where less than 10 unrelated individuals are housed (U S Census definition) Housing units are distinguished from group quarters Institutions/Institutional Group quarters for persons under care of custody (U S Census definition) Large Family A family household with 5 or more members Low/Lower Income Families or households whose incomes are from 0 to 80 percent of the median income for the area, as determined by the Secretary of HUD, with ad]ustments for smaller and larger families, and for certain areas Middle Income Households Families or households whose incomes are from 96 to 120 percent of the median income for the area, as determined by the Secretary of HUD, with ad3ustments for smaller or larger families, and for certain areas Moderate Income Households Families or households whose incomes are from 81 to 95 percent of the median income for the area, as determined by the Secretary of HUD, with ad3ustments for smaller or larger families, and for certain areas Non-institutional Group quarters for persons not under care of custody (U S Census definition used in Table 2A) Overcrowded A housing unit containing more than one person per room (U S Census definition used in Table 1A) Public Housing CIAP Public Housing Comprehensive Improvement Assistance Program Rent Burden > 30% (Cost Burden) The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data published by the U S Census Bureau Rent Burden > 50% (Cost Burden) The extent to which gross housing costs, including utility costs, exceed 50 percent of gross income, based on data published by the U S Census Bureau Section 215 Section 215 of Title II of the National Affordable Housing Act Section 215 defines what constitutes "affordable" housing pro3ects under the Title II HOME program • 0 Service Needs The particular services identified for special needs populations, which typically may include transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, and other services to prevent premature institutionalization and assist individuals to continue living independently Sheltered Families and persons whose primary nighttime residence is a supervised publicly or privately operated shelter (e g , emergency, transitional, battered women, and homeless youth shelters, and commercial hotels or motels used to house the homeless) Sheltered homeless does not include andy individual imprisoned or otherwise detained pursuant to an Act of Congress or State law Substandard To be defined by the 3urisdiction The 3urisdiction ' s definition must include any housing unit which fails to meet the Section 8 Existing Housing Quality Standards (HQS) Jurisdictions that have already developed such a definition for the HAP may elect to continue to use that definition, or may provide a new definition Suitable for Rehabilitation To be defined by the Durisdiction The definition must provide for the exclusion of both units which can be brought into standard condition through minor repair (e g , minor HQS "livability" violations) , as well as units in such substandard condition as to make rehabilitation infeasible, including financially infeasible Supportive Housing Housing with a supporting environment, such as group homes or Single Room Occupancy (SRO) housing and other housing that includes a planned service component Supportive Services Services provided to residents of supportive housing for the purpose of facilitating the independence of residents Some examples are case management, medical or psychological counseling and supervision, child care, transportation, and Sob training Unsheltered Families and individuals whose primary nighttime residence is a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings (e g , the street, sidewalks, cars, vacant and abandoned buildings) J FACT SHEETS AND REGULATIONS FEDERAL HOUSING PROGRAMS • i FACT SHEET HOME INVESTMENT PARTNERSHIP ACT The Home Investment Partnership Act (HOME) was enacted as Title II of the Cranston-Gonzales National Affordable Housing Act. The purposes of HOME are to • Expand the supply of decent, affordable housing for low and very- low income families with emphasis on rental housing • Build State and local rapacity to carry out affordable housing programs • Provide for coordinated assistance to participants in the development of affordable low-income housing Initial authorization for HOME is $1 billion for FY 1991 and $2.086 billion for FY 1992- Funds will be distributed on a formula basis with approximately 60 percent to cities and counties and 40 percent to States P=cipants will, need to receive at least $750,000 to be eligible for a formula grant. Cities and counties entitled to at least $500,000 may still qualify if they provide the difference below $750,000 from local funds, if the State agrees to provide a HOME grant for the difference, or if they are able to form qualifying consortia. Each grantee must set aside 15 percent of its funds for non-profits to assist it in capacity building efforts One percent of the amount appropriated for HOME will be set aside for Indian tribes who will be selected for participation based on a competition. In order to apply for HOME funds (as well as for CDBG, McKinney Act, and 1937 Housing Act funds), State and local governments must develop a "Comprehensive Housing A.ffordabihty Strategy" covering all assisted housing activities The strategy must be approved by HUD before HOME funds can be received It replaces the HAP and CHAP Eligible activities under HOME will be • Rehabilitation • Substantial rehabilitation • New Construction (15 percent of HOME funds, distnbuted to at least 30 percent of formula grantees designated by HUD, may be used for this activity Other participants may do new construction for specific, otherwise unmet needs such as units for large families, SRO's, handicapped units, etc.) • Acquisitn00 • • Tenant Based Rental Assistance NOTE There are matching fund requirements ranging from 1 2 for new construction to 14 for rehabilitation HOME funds may not be used for certain activities including administrative costs, CLAP, tenant-based assistance in conjunction with other programs, non- federal matching requirements under other programs, Annual Contnbutions Contracts and others (The non-Federal share may be used for administrative costs up to 7 percent of Federal share ) HOME funds are heavily targeted to low and very-low income families and rents must be affordable • Rental Units 90 percent of funds to families not exceeding 60 percent of median Remaining funds to families not exceeding 80 percent of median 20 percent of the units must go to very low income families ' — paying no more than 30 percent of adjusted income, or — paying no more that the gross rent as determined under the Low Income Tax Credit Program Rents may not exceed the lesser of- - The FMP, or — 30 percent of adjusted family income of a family at 65 percent of median — Units to remain affordable for life of property or as long as HUD determines feasible • Homeownership 100 percent of funds to fans ies below 80 percent of median Only first time buyers Principal residence • FACT SHEET HOPE 3 • TITLE IV, Subtitle C HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES Program Purpose To provide homeownership opportunities to lower income families and individuals by providing grantees with Federal assistance to initially acquire and rehabilitate single-family properties owned by Federal, State and local governments for sale and occupancy by ehgible families at affordable pnces Ehgible Applicants • pnvate nonprofit organizations • public agencies in cooperation with private nonprofit organizations o cooperative associations Ehgible Families Must be both • a family or individual with an income at or below 80 percent of area median adjusted for family size • a first time homebuyer Types of Federal Assistance • Planning Grants To be used by applicants to develop homeownership programs, limited to mammum amount of $200,000 • Implementation Grants To be used by applicants to carry out approved homeownership programs NOTE Apphcants for Implementation Grants do not need first to receive a Planning Grant. EhZible Activities Planning Grants • identify eligible properties • trainingtTA of applicants tied to development of a homeownership program • study feasibility of a homeownership program 0 preliminary architectural and engineering work • homebuyerZ'ounseling and training • • planning economic development, job training and self sufficiency activities to promote homebuyer self sufficiency • development of security plans • preparation of an application for an implementation grant Implementation Grants • architectural and engineering work • acquisition of property to be transferred to ehgible families • rehabilitation of property to be transferred • administrative costs, including grant recipient training costs • counseling and training of eligible families • relocation costs of eligible families • temporary relocation costs of homebuyers during rehabilitation • legal fees • economic development activities that promote economic self-sufficiency of homebuyers Eligible Sources of Property Single family (1-4 unit) residential property currently owned or held by • HUD (FHA) • VA • Farmers Home Administration (FmHA) • RTC • State government • Iocal government (including in rem properties) • public housing agencies • Indian housing authorities Funding Process • HUD publishes NOFA annually • Eligible applicants submit an application for either a Planning Grant or Implementation Grant • HUD rates applications using national selection criteria • HUD approves or disapproves all applications within 6 months of application submission Matching Share Requirements 1 No match requirement for Planning Grants 2 Each $3 of Federal Implementation grant assistance must be matched by $1 of recipient contnbutions (25 percent of total program costs must, at a minimum, be recipient contnbutions) 3 Permitted forms of recipient contnbutions • cash from non Federal resources (source may not be CDBG) • payment of administrative expenses from non Federal resources (countable for match only up to 7 percent of total grant) (source may be CDBG) • the value of taxes, fees or other charges waived or deferred to facilitate implementation of the homeownership program • the value of investment in on site or off site infrastructure required for the homeownership program • other in land contnbutions approved by HUD Selection Cntena Planning Grants • qualifications or potential capability of the applicant • extent of interest in developing a program • potential of applicant to develop a successful and affordable program • availability and suitability of eligible properties • national geographic diversity • other criteria that may be required by HUD Implementation Grants • ability of applicant to develop and carry out the program • feasibility of proposed program • quahty and viability of proposed program • availability of suitable ehgible properties • extent to which properties expected to be usrd in the program are federally owned • inclusion of the program in the general pnonhes of the junsdictions Comprehensive Housing Affordability Strategy (CHAS) • national geographic diversity • extent to which sufficient, affordable rental housing supply exists in the locality • other criteria that may be required by HUD Other Program Requirltents 10 1 Eligible families selected to participate must receive ownership interest in an eligible property that they occupv 2 Sales pnce to eligible families must result in total monthly housing payments that are not more than 30 percent of the adjusted monthly income of the family 3 Occupied properties may not be acquired for use in the program unless all current tenants or occupants participate in the program 4 Applicant submission of a plan for • identifying and selecting eligible families to participate in the program • providing relocation assistance to eligible families electing to move • ensuring continued property affordability 5 Applicant submission of a plan for en�unng selected properties • will be free from health or safety defects prior to transfer to eligible families • will meet minimum housing standards set by HUD within 2 years of transfer to eligible families 6 Proceeds of property sales to ehgible families may be used by the selling entity or other entity specified by the applicant to cover program costs, including • operating expenses • creating business opportunities for low-Income families • supportive services related to the program • additional homeownership opportunities • other activities approved by HUD Resale Restnctions 1 Homeowners may sell their interest in the property in accordance with any resale restrictions established as part of an approved homeownership program 2 If the prospective buyer is not a low income family, the grant recipient or applicable public housing agency has the right to purchase the property at the same price agreed to in a firm contract between the homeowner and the prospective buyer 3 Homeowners must execute a promissory note at time of purchase equal to the difference between the actual market value (at time of purchase) and the purchase price 4 If sale occurs wi in 6 years of purchase, the selling *ily may receive the total of • their equity contribution • the value of improvements made at the expense of the family • an inflation adjustment calculated by multiplying a predetermined inflation index against the equity contnbutlon This adjustment may be limited to a maximum total amount at tune of initial sale 5 If a sale occurs between the 6th and 20th year after purchase, the selling family may receive all of the proceeds minus the balance remaining on the promissory note and any balance remaining on the mortgage used to finance purchase (if applicable) Recaptured Net Sale Proceeds Net sales proceeds not permitted to be retained by the homeowner under the 'Resale Restnctions' above must be split and used as follows 1 50 percent returned to the selling entity or other entity specified by the applicant for use in • making program improvements • providing business opportunities for low-income families • supportive services related to the homeownership program • additional homeownership opportunities • other activities approved by HUD 2 50 percent returned to HUD 0 FACT SHEET , EMERGENCY SHELTER GRANTS (ESG) PROGRAM FEDERAL AGENCY Office of Special Needs Assistance Programs, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410 AUTHORIZATION Stewart B McKinney Homeless Assistance Act of 1987, as amended, Title IV, Subtitle B Sections 411417, Public Law 100-77, and National Affordable Housing Act (Public Law 101 625) PROGRAM This program provides grants to states, metropolitan cities, urban counties, and territories according to the formula used for Community Development Block Grants (CDBG) Eligible activities include renovation, major rehabilitation, or conversion of buildings for use as emergency shelters for the homeless With certain limitations, grantees may also spend funds on essential services for the homeless, including homeless prevention efforts In addition, grantees may spend funds on operating costs such as maintenance, insurance, utilities, and furnishings However, payroll expenses for staff to operate the shelter are inehgible expenses To receive a grant each grantee must have an approved Comprehensive Housing Affordability Strategy (CHAS) PURPOSE The program is designed to help improve the quahty of existing emergency shelters for the homeless, to make available additional shelters, to meet the costs of operating shelters and of providing essential social services to homeless individuals, and to help prevent homelessness ELIGIBLE APPLICANTS States, metropolitan cities and urban counties, and territories according to the formula used for Community Development Block Grants (CDBG) Units of general local government and nonprofits may also apply for ESG funds directly from States Units of general local government may distribute part or all of their funds to nonprofit recipients for emergency shelter actrvities If, according to the CDBG formula, a city or county receives less than 05% of each appropnation in any fiscal year, the amount is added to the allocation for the state in which the city or county is located States must distnbute all of their funds to units of local government or nonprofit organizations ELIGIBLE ACTIVITIES There are four categories of ehgiblPactrvities 1 The renovation, major rehabilitation, or conversion of buildings for ase as emergency shelters for the homeless 2 The provision of essential social services (funds spent on this activity may not exceed 30 percent of the grant amount), 3 The payment of certain operational costs such as maintenance, insurance, utilities, and furnishings, and 4 The development and implementation of homeless prevention activities (funds spent on this actmty may not exceed 30 percent of the grant amount) The following types of activities are specifically ineligible acquisition or construction of an emergency shelter for the homeless and payment for staff involved in operating emergency shelters SCHEDULE Generally grantees receive their funds shortly after the start of the year Official letters of allocation are sent to each state eligible formula city, county and territory in January Those so notified submit their application to HUD within 45 days SCOPE OF THE PROGRAM Grantees awarded the $68 million appropriated for the ESG program during 1987, 1988, and 1989 to 2,172 shelters with an approximate capacity of 80,400 beds These funded facilities represent approximately 40 percent of the shelters and 30 percent of the beds estimated by HUD to exist nationwide REGULATIONS, GUIDELINES, AND LITERATURE. The Fiscal Year 1991 program is governed by the ESG Final Rule published in the Federal Register of November 7, 1989 at 4 CFR 576 INFORMATION CONTACTS Regional or Local Office Contact appropriate HUD Field Office or Regional Office Headquarters Office James N Forsberg, Director, Office of Special Needs Assistance, HUD, Room 7262, 451 Seventh Street, SW, Washington, DC 20410, telephone (202) 708-4300 APPROPRIATIONS FY 1989 $46 5 million FY 1990 $73 2 million FY 1991 73 2 million FACT SHEET SUPPORTIVE HOUSING DEMONSTRATION PROGRAM FEDERAL AGENCY Office of Special Needs assistance Programs, Department of Housing and Urban Development AUTHORIZATION Stewart B McKinney Homeless Assistance Act of 1987, as amended, Title IV, Subtitle C, Public Law 100 77, Public Law 100 242, Public Law 100- 628 National Affordable Housing Act (Public Law 101-625) PROGRAM The Supportive Housing Demonstration Program consists of two components Transitional Housing and Permanent Housing for the Handicapped Homeless Of the amounts appropriated, not less than $20 million is to be allocated to transitional housing projects that serve families with children, and not less than $15 million is to be allocated to projects that provide housing for handicapped homeless persons REGULATIONS, GUIDELINES, AND LITERATURE 24 CFR 577 and 578 published in the Federal Register on November 8, 1989 at 54 FR 47024 INFORMATION CONTACTS Regional or Local Office Designated Regional Contact Person for the Supportive Housing Demonstration Program in each Regional Office of Community Planning and Development, and designed Field Office monitors in local HUD Field Offices Headquarters Office James N Forsberg, Office Director, Special Needs Assistance Programs, Office of Community Planning and Development, Department of Housing and Urban Development, Room 7262, 451 7th Street, SW, Washington, DC 20410 Telephone (202) 708-4300 Transitional Housing Program PURPOSE The Program develops innovative approaches to providing short-term (24 months or less) housing and supporting services to homeless persons who are capable of making the transition to independent living This program is especially targeted to de institutionalized homeless individuals other homeless individuals with mental disabilities and homeless families with children ELIGIBLE APPLICA-4 States, units of general local gooment, other governmental entities, public housing agencies, Indian Tribes and private nonprofit organizations are eligible through a national selection process The ranking criteria include applicant capacity, innovative quality, the need for transitional housing delivery of supportive services, the extent to which the non-Federal contnbution exceeds the required match, and cost effectiveness of the program ELIGIBLE ACTIMIES There are seven categories of eligible actmties 1 Acquisition acquire and/or substantial rehabilitation of buildings for use as transitional housing, 2 Moderate rehabilitation of buildings for use as transitional housing, 3 New construction of buildings for use as transitional housing, under limited circumstances, 4 Operating costs which include administration, maintenance, minor or routine repairs, security or rental of housing utilities, fuel, furnishings and equipment 5 Supportive services to residents including, but not lmlited to, salaries of providers of supportive services and costs of conducting resident supportive services needs assessments 6 Establishment and operation of an employment assistance program for residents, and 7 Child care program for residents The program provides grants for up to 75 percent of operating costs and the provision of supportive services, for an employment assistance program and for a child care program for residents for the first two years, and up to 50 percent of costs for the next three years 'Ile recipient must match the funding provided by TH for acquisition or substantial rehabilitation, moderate rehabilitation, and new construction with an equal amount from non Federal sources SCOPE OF PROGRAM Dung FY 1987 and 1988, HUD funded 232 projects In FY 1989, HUD funded 156 projects In FY 1990, HUD funded 143 projects SCHEDULE Submission dates are established by Notice of Fund Availability (NOFA), published by the Federal Resister • • Permanent Housing for Handicapped Homeless Persons PURPOSE Provide permanent housing assistance in developing community based, long-term housing and supportive services for projects housing not more than eight handicapped individuals and/or families (16 in a multifamily structure if not more than 20 percent of the units are designed for such persons) who are homeless or at risk of becoming homeless Larger projects may be approved on a case by-case basis ELIGIBLE APPLICANTS Only states and Indian tribes may apply States must pass program funds on to private nonprofit organizations and/or pubhc housing authorities to serve as project sponsors ELIGIBLE ACTIVITIES There are four categones of ehgible activities 1 Acquisition acquire and/or substantial rehabilitation of buildings for use as permanent housing, 2 Moderate rehabilitation of buildings for use as permanent housing, 3 New construction of buildings for use as permanent housing, under limited circumstances, 4 Operating costs which include administration, maintenance, minor or routine repairs, security or rental of housing, utilities, fuel, fumishings and equipment. SCOPE OF PROGRAM In FY 1988 HUD funded 77 projects, in FY 1989 66 projects, and in FY 1990 104 projects SCHEDULE Submission dates are estabhshed by Notice of Fund Availability (NOFA), published in the Federal Register APPROPRIATIONS FY 1989 $80 0 million FY 1990 $126 8 million FY 1991 $150 0 million FACT SHEET is SUPPLEMENTAL ASSISTANCE FOR FACILITIES TO ASSIST THE HOMELESS (SAFAH) FEDERAL AGENCY Office of Special Needs Assistance Programs, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410 AUTHORIZATION Stewart B McKinney Homeless Assistance Act of 1987, as amended, Title IV, Section D, Public Law 100-77 PURPOSE The SAFAH program provides grants for facilities to house and provide support services for the homeless Grants for comprehensive assistance are given to particularly innovative programs that meet the immediate and long term needs of the homeless Grants for supplemental assistance may be used to cover costs in excess of assistance provided under the Emergency Shelter Grant and Supportive Housing programs Funds are awarded by a nationwide competition HUD selection criteria give priority to comprehensive assistance grants The Act requires that at least 50 percent of the funds benefit homeless families with children and the elderly homeless This requirement applies to the whole program, not to individual programs or applicants Funds are distributed as grants for acquiring, leasing, renovating, rehabilitating, or converting existing ,tructures, for operating costs, and for supportive services ELIGIBLE APPLICANTS States, metropolitan cities, urban counties, Indian tubes, and private nonprofit organizations are eligible to apply ELIGIBLE ACTIVITIES There are four categories of eligible activities 1 Interest-free advances to defray the costs of acquisition, substantial rehabilitation, or conversion of existing structures for use as facilities to assist the homeless, 2 Grants for moderate rehabilitation, 3 Grants for supportive services, and 4 Grants for operating costs SCHEDULE Submission dates are established by Notice of Fund Availability (NOFA), published in the Federal ReMster SCOPE OF THE PROGO In 1987, HUD received 251 a•ications and selected 45 for funding Awards ranged from $14,000 to S1 million, with an average award of $384,000 Congress appropriated no additional funding for SAFAH for FY 1988 or FY 1989 In FY 1990 HUD funded 20 grants for $10 8 million Awards ranged from $46,000 to $1 million REGULATIONS, GUIDELINES, AND LITERATURE 24 CFR 579 published in the Federal Register on November 7, 1989 at 54 FR 46812 INFORMATION CONTACTS James N Forsberg, Director, Office of Special Needs Assistance Programs, Community Planning and Development, HUD, Room 7262, 451 Seventh Street, SW, Washington, DC 20410 Telephone (202) 708 4300 APPROPRIATIONS FY 1991 $113 million FACT SHEET SHELTER PLUS CARE FEDERAL AGENCY Office of Special Needs Assistance Programs, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410 AUTHORIZATION National Affordable Housing Act (Public Law 101-625), enacted November 28, 1990 PROGRAM PURPOSE. The purpose of the Shelter Plus Care program is to provide rental assistance, in concert with supportive services from other Federal, State and local sources, to homeless persons with disabilities The assistance is targeted primarily to homeless persons who are seriously mentally ill, have chronic problems with alcohol or drugs, or both, or who have acquired immunodeficiency syndrome and related diseases ELIGIBLE APPLICANTS Eligible applicants under the S+C/HRHA and S-4-C/202, are States, units of general government and Indian tnbes Applicants under S+C/HRHA may contract with a PHA or other entity, such as a nonprofit organization, to administer the housing assistance Applicants under S+C202 must contract with a nonprofit organization to administer the housing assistance In the case of S+C/SRO a State, unit of general local government, or Indian tribe must be a joint applicant with the PHA MATCHING REQUIREMENT Recipients must match the rental housing assistance with supportive services for the residents that are equal in value to the aggregate amount of rental assistance and appropriate to the needs of the population to be served PROGRAM COMPONENTS The Shelter Plus Care Program provides rental assistance through three components Shelter Plus Care Homeless Rental Housing Assistance (S+C/HRHA) • The S+C/HRHA component provides grants for rental assistance in accordance ,itih a flexible housing plan developed by the applicant to fit the needs of the );r ageless population served Rental assistance will be provided for a five-year penod • Applicants must give assurance that the assistance provided by HUD, and any amounts provided from other sources, are managed so that the housing assistance descnbed in the application is provided for the full term of the grant, or that applicants will provide any shortfall, if necessary • S+C/HRHA recipients may offer participants a variety of housing types, such as group homes or independent Irving units • *, ccur)ancv Section 8 Moderate Rehabilitation Program for SingleRoo Dwellings for Homeless Individuals (S+C/SRO • The S+C/SRO components provides grants for rental assistance in connection with HUD s current Section 8 Moderate Rehabilitation Program for Single Room Occupancy Dwellings for Homeless Individuals in rehabilitated SRO housing The Shelter Plus Care program makes three important changes in the Section 8 Single Room Occupancy Moderate Rehabilitation program operation • Applications for assistance would be submitted jointly by a Pubhc Housing Agency (PHA) or Indian Housing Authority (IHA) with a unit of general local government, Indian tnbe or State • The new program would require that the full 10 years of rental housing assistance provided be matched equally with funds for supportive services • A matching requirement is added to the Section 8 Mod Rehab SRO Homeless program Section 202 Rental Assistance (S+C/202) • The S+C202 component provides grants for rental assistance for homeless persons in connection with section 202 of the Housing Act of 1959 or its successor program under section 811 of the NAHA for eligible, very low income persons Modifications for the S+C program include the following • Homeless persons with a chronic problem with alcohol or drugs, or both are considered disabled and eligible for assistance as long as they meet the three part test of 'persons with disabilities" • Rental assistance is for a penod of five years • Applicants must identify the nonprofit sponsors that would provide the housing, and the housing units to be used SCHEDULE Submission dates are established by Notice of Fund Availability (NOFA), published by the Federal Register REGULATIONS, GUIDELINES, AND LITERATURE 24 CFR Subtitle A, dated, February 4, 1991 of the Federal Register FOR FURTHER INFORMATION CONTACT For general information and information on the S+C/HRHA component, James N Forsberg, Director, Special Needs Assistance Program, (202) 708-4300, (TDD) (202) 708-2565) For information on the S+C/SRO component, Madeline Hastings, Director, Moderate Rehabilitation Division, (202) 755-4969, (TDD) (202) 708-4594 For information on the S+C/202 component, Robert Wilden, Duector, Housing for Elderly and Handicapped People Division (202) 708-2730, (TDD) (202) 708 4594 • 0 HOPE 2 for Multifamily Homeownership OVERVIEW In a maDor step to expand greater economic empowerment for low-income Americans , President Bush, on November 28 , 1990 , signed into law a bold and innovative set of resident initiatives in the 1990 National Affordable Housing Act called -- Homeownership and Opportunity for People Everywhere (nOPE) Under HOPE 2 , the Department is authorized to provide $331 million in grants over 2 years to help eligible applicants -o develop and implement homeowner-hip programs through the use of multifamily properties ELIGIBLE APPLICANTS Upon appropriation, assistance in the form of grants will ze available to aoplicants through a national competition for resiaent management corporations , resident councils , cocoerat-,.e associations , nLblic/private non-profit organizations , and PLplic Housing kgencies ( ircludes PP.As and IgAs ) for Planning grants to assess the feasibility of a homeownership conversion and to enable applicants to develop competitive homeownership conversion appl_cations Planning grants may not exceed $200 , 000 per applicant without the Secretary s aporoval , and Imotementation grants for acquisition, rehabilitation, technical assistance , counseling and training, economic development activities , capital reserves , operating expenses and reserves , and transaction costs The Department encourages new and/or inexperienced organizations to form an alliance with an experienced organization to submit a Doint application The Department believes that by combining the sk-lls of an experienced organization with a new and/or inexperienced organization, the proposed homeownership program will have a greater chance of success In fact, this type of arrangement will score better for an applicant in the competitive selection process • ELIGIBLE PItOPERTICS Multifamily properties that are financed or insured by HUD ( including those in serious physical or financial distress ) and properties owned by HUD, Farmers Hone Administration, Resolution Trust Corporation, or a State or local government are eligible properties MATCHING REQUIREMENTS Applicants are required to assure that matching funds equal to not less than 33% of the amount of the Implementation Grant provided from non-federal sources are obtained to carry-out the homeownership grogram The match may be provided through - CDBG for administrative expenses , - Taxes , fees or other charges waived by a local unit of government for the development , - Donation of real property, - In-kind contributions ( including sweat equity by purchasers , land, cash, investment in infrastructure, etc ) or, - Debt forgiveness THE HOMEOWNERSrIP PROGRAM Applicants may transfer ownership to eligible families through var;oLs ownership structures , including cooperative ( i e market rate or limited equity) , fee simple ccrdominium, or another fog of ownership proposed and 3ustified by the applicant, ane approved by HL,D The applicant must certify that the proposed t,rpa or ownership is consistent with any aoplicable State , local or tribal law HOPZ 2 is designed to assure that an eligible family does not receive an undue profit from acquiring a unit under the homeonwership program, and that, to the extent the sales price is sufficient, tre homeowner recovers his/her equity in the property PROTECTION OF IN-PLACE RESIDENTS The Department will protect eligible in-place residents by providing Section 8 certificates or vouchers to (i) non- purchasing fannies who wish to rema-n and rent at the protect and ( ii ) non-ourchasing families who do not wish to participate in the homeownership conversion and wish to relocate to another location • • For more information , please ( 1 ) See the Notice of Program Guidelines published in the Federal Recister on February 4 , 1991 ( 2 ) Contact the Resident Initiatives Specialist in your local HUD office, or ( 3 ) Contact U S Department of Housing and Urban Development Office of Preservation & Property Disposition Office of Multifamily Housing 451 7th Street , S W Room 6282 Washington, DC 20410 FAX ( 202 ) 708-3710 Phone ( 202 ) 708-1220 This is not a toll-free number SU­ppORTIVE HOUSING FOR PERSONS WITS DISABIL111-5 • (Section 811) • FACT SHEET The Department of housing and Urban Development (h-UD) provides funding to expand the supply of specially aesigned housing with supportive services for persons with disabilities TYPES OF FINANCING - Canital advances (bearing no interest) based on development cost limits published periodically in the Federal Register Repayment of the aavance is not required as long as the housing remains available for occupancy by very low-income persons with disabilities for at least 40 years Project rental assistance to cover the difference between the HUD-aoproved operating cost per unit and 30 percent of the resident s adDusted income ELIGIBLE APPLICANTS Only private, nonprofit organizations may apply for a capital advance as sponsors DEVELOPMENT METHODS - New construction - Rehabilitation - Accru-sition of housing ror croup homes - Accla sition or housing from the Resolution Trust Corporation (RTC) for group homes ana -rdependent living facilities TYPES OF HOUSING A variety of housing options may be developed including Grouo Home A single family residential structure for no more than eight ( 8 ) persons with disabilities combining multiple bedrooms ( single or double occupancy) with a kitchen, shared living areas , utility areas , and at least one bathroom for every four ( 4 ) persons (On a case-by- case basis , HUD may approve a group home of up to 15 persons with disabilities ) Indeoendent Living Facilitv A structure containing separate, self-contained units (each must have a kitchen and a bath) for not more than 24 persons with disabilities , except for proDects for persons with chronic mental illness which may not exceed 20 such persons (On a case-by-case basis , HUD may approve an exception to the 24-person limit up to 40 persons with disabilities ) Inrer-nediate Care Fac!1_tv A group home for oersors -ith developmental sabilities that is licenW by the State Medicaid Agercy and rece-ves Title XIX L ds to cover t`ie cost of services ELIGIBLE OCCUPANTS Occupancy of Section 811 housing is open to very low income persons with disabilities who are at least 18 vears old A person with a disability is a household composed of one or more persons , at least one of whom has a physical disability, aeveloomental disability, or chronic mental illness whic7 - is expected to be of long-continued and indefinite auration, substantially imoedes the person s ability to live independently, and, is of such a nature that such ability could be improved by more suitable housing conartions Eersons disabled as a result or rnrecticn with the human accuired .mmunodeficiencv virus ( HIV) are eligible for occupancy , n pro3ects designed ror persons with onysical disabil-ties , aeveloome-ital disabilities , or chronic mental illness depending Loon the nature of the person s disability A child with a disability is eligible for occupancy in Sect-on 811 housing ONLY it - the child is at least 18 years old, OR another memcer of the household is at least 18 years old and has a disability SUPPORTIVE SERVICES Supportive services are essential to enable persons with disabilities to live indepenaently in the community Since HUD does not pay for supportive services , Sponsors must provide commitments to HUD that necessary supportive services will be funded on a long-term basis to help assure that the housing will become a successful and viable addition to the community in which it is to be developed HOW TO APPLY An application for a Section 811 fund reservation is made to the appropriate HUD Field Office in response to a published invitation (typically in the spring of each year) Awards usually are announced in September Further information on the application process may be obtained from any HUD Regional or Field Office (See enclosed list ) 1 J i snd Ur'..in a^"r�x'kr� • Fa C'� S EN IMF_ I' GF _N'S - Cal-UNITY DEV_._DF V: ELOa-=. GFANT I ntrcducticn Trie p=ogram provides aamual ca ants on a f ormLl a basis to entitled c_t,es as courties to develop viable LLr`e"1 co-nL^-st_es by =ovic_zg dec._^t Y:c.sing a--,a a sui`_able living environment, --ri cv ex_ ding ecr=_c opozrtLzut_es =inc;r:ajly for low- and moae ate-lncane persorLs 1,at.re oL y-_=2m Crar,ts are a%,arced tc entIt-1 L e_^t CS-._,ruti as to G"_=v oL= a w 1 c e r=ce Or c=- cevelo--nent ac_lvlt_es aire=_er tc.•arc -ie_an=rrr= revi tal izat10^ e.=nC 1__C cevelo-ame_rt a_-= the -ovisiOn o_ 2.r=rovec1 c:=� _'utY rac_llt_es a= services Zr__tl�^e_'lt cz=unities develoc GhTl _IICO"r�'S a_rz2 fLT--c-ing :.ric=lt_es rcwe% Cr?"`eaS m.st rive I'--c IIun feasiz_e = crlt✓ zo act_vities w,-acr e_`.-- ceneri_ 1, arc mccerate--i;c=re persons, or a_a in the Greve-t-on or el=-t_nat_c- or sl=s a_.z bi--ht In at-Glt2.on activities = r be C----:�e+ out w'mc'1 the C' L=_tv cert_r1e5 areyoesicned to meet ctnE c=--7 _tv Cevelopmer't rents navi^g a pa:=_c�LaL' LrC ^zC' Cruse e�astinc conaitlo^5 ze a serious and imme-late tr eat to the r.-2alt_'i or we_fa_-e of t'j-_ C=nu_-_1t� wnere Cr'�er _inancia re_s,o=c°_, are not avz_lable to mee- SLC.71 ne�__S kct.vlties wnlr-1 cc -1:7-, meet one of tl'iese taree =c c -agora ob3ec:ives may -ict he L=ertaKen = fLnCS .,ct_vi t i es that cin be cm---ri ed out with b1 oc k cr ant `_=.rs i ncl=e =� t are nct limited to, the accu sition C. re? proce--ty, reloC--ticn a = dercl_t_on, :e_*habilitation or resicv'itial and nonresiee_rt_a1 structures c nst=_=1o''1 or =.bl_ facilities and im=oveme_nts suc-i as water arrd sawer facilities streets, am neisnborhooa L-__nte_s and the conversion of se-nols for ee1_gible =_des In accut_on, block grant funds may be used to =_-y for miml is services ..It`un car ta_r 1_mits, and for act_v1 ties r lat_^g to enercf co-se_rvation a*n rene. able e_^prgy resocrcas Entitlement c==_=i_t_es may also =ovice assistance to =Ofit mctivat businesses to carry out ecor=rzic cavelo=ent act_vities The tvrps of activities that are c�-_na-ally ineligible include hulc_ngs for tue- y-e_nE-_al eorsiuct of coverrment poLticl activities irc=e mymelts and construc::t_can of new housing ane cthPr racilit_es orfering 24-1-:o C--:e Grante-e Eligibility Ce_ntrzl cities of Met=oaclitan Statisti-1 Areas ctlnr Mies With poculations of at least 50, 000 a_*-rd' cLalified urzaz o=t.2.es wztn proulat._o s or least 200 000 (eluding t'je pp?aticn of e_nt_tled titres ) are Lr_�__tled to rece_- annual grants The 2-mourt of earn entitlemert cant is deterzu-nes �'v staturcory formula whir= Lees several oboe-_ve meas,:es o` c�L--1ity nea3, ir�.�-ng the eTtant of poverty potation, '=.sing over=cwding ace a= h=Lisinc alx3 Crat,ttil lac in relat_crtshno to ct-)er metr_-=li`. an areas Re�ui r em e_^t s In order to rerorve its annul entitlement meant a gr=---ee nst sjhm_t a coca or its final statement or ca=Lzuty develoE=�ent ob]ec_-ves a_---d pzcDectea Lse or to HLD ana rec-area artificatio's, inclining an assurance that it is =olle.4_nc a rousing Assistancn Plan (HAP) approved by Fu'D a_^d that not less than 70% c_ the CBS funds re-bivea ova-- a one, two, or three year ---ad s-r--c_fied 'y is grantee will to used for ac_ivities that one=it low and rKDae_-ate inccne persons If the gra^tee makes a crmzlete su=- ission o= all recsiraments within t')e esz-,b1_snea c°_-clines, the Der-artmezt will nal<e a full crant aware unless the Secretary has mace a dete_Tmination tnat the grantee hrs failed to r---:-y out its activities arc its housing asszstancn plan in a timely manner or has failea to carry out t-iase activities ana its --ti=ic--ticrs in ac=)rdance with tYp- rev_uirements a� the primary cb3ectives of this title and with other applicaz l le aws or lacks a continuing carat,ty to carry out its activities in a timely r..a_^.ne=- Citizen Vzrtic_rat2.0n A =antee is rev rec to aeveloo and follow a ee:z-lsc citizen mt_c_Wt_c-1 p12-- ^icz provides :or anc enezuzages c=taze.^ part_c_pation wit_z x_-t,c z_ e:1=-L=-s_s o^ parti=L-tion cy per�so-s of la. ana mcderate i^cane prov1aes c.tize s wltn re2sonable a.^c t_rie?,, access to loci meet_ngs, in=or-la__on ana re=res re-ati--c to t-,-- grantee s `ot✓se- ana act-a' use or =..nds provides =or tea=nir-1 assrstance to groups reoresz^=at,ve or persons or low ana mcxi_-ate in=e that recLoest sup- a_ssistz*lc-- in aeveloo_ ing p-oc=szls F ovices for tublic hearin;s to c `z c,t_z°z v:ews ana to r es w^c to rxotrsals and cues do^s at all stages or the c=-1Lzi-ty aevelo�e_zt O an _^alum^g at least U e aevelo=er-. of neeas try revie-+ or proptsed activities and review or program perfa=mange proviaes for a timely ' wr_tten answer to cxnolaints ana grieva_^ces and idanti=ies h�w t`�e neers or rn-i-Figi_sh swat-nc reside^ts r.111 to met in t case or cuzlic hear_^cs wnere a sig:ufic.art rLz=er or non-D—glisz sr akng res.azzts can ce re2socz1b?y ex- -tea to n�- ci pat e Legal Aut'-szr_ty Title 1 of t2n F-ous_^g and r—uni ty Devel opm e--z Ac= o= 197r Publ i c Law c 3-3 S3, as amended 42 U S C -5301 et sea A=iniste--ing Of:_c-- Assistant Secetary for Community Planning arid Development, Derartme.^t of Housirg and Urbmn Develo_aaent, Washington, Dr- 20410 Information So=cr-s I4:�=l of1_cials and s-ZD Field Office t SUPPORTIVE EOUSING FOR ELDERLY PERSONS (Section 202) The Department of Housing and urban Development (n"UD) provides funding to expand the supply of housing with supportive services for elderly persons TYPES OF FINANCING Capital advances (bearing no interest) based on development cost limits published periodically in the Federal Register Repayment of the advance is not regrsired as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years project rental assistance to cover the difference between the HUD-approved operating cost per unit and the amount the resident pays ELIGIBLE APPLICANTS Only private , nonprofit organizations and consumer cooperatives may apply ror a capital advance as sponsors DEV?LOPIENT METHODS New const;action - Rehabilitation Acquisition of housing form the Resclutio-i Trust Corporatio-- ( RTC) ELIGIBLE OCCUPANTS Occupancy of Section 202 housing is open to very low income elderly persons 62 years of age or older SUPPORTIVE SERVICES Supportive services must be appropriate to the category or categories of elderly residents to be served It is the responsibility of the sponsor to arrange for the provision and funding of these services appropriate to the assessed needs of the residents HOW TO APPLY - An application for a Section 202 fund reservation is made t the auarooriate HUD Field Office in response to a published invitation ( typically in the spring of each year) Awards usually are announced in September Further information or the application process may be obtained from any HUD Regional or Field Office (See enclosed list)