Agenda - 11-05-2015 - 6-a - Minutes

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19 1 proportion. If the percentage of income dedicated to housing costs is reduced to 30%, the 2 proportion of renter households dedicating at least that amount to housing increases to 44.1%. 3 The Plan further concluded through interviews and surveys that the lack of quality, affordable 4 housing for rent is the largest unmet housing need in Orange County. 5 To address this need, staff is proposing to prioritize the use of the $1 million affordable 6 housing fund to increase or, at a minimum, maintain the supply of affordable rental properties in 7 the community. Eighty percent (80%) of the fund would be used for rental property projects and 8 up to twenty percent (20%) could be applied to homeownership activities. This effort would 9 represent the first phase of an affordable housing plan that will address additional housing 10 needs and identify other opportunities. 11 Under this model, the County would solicit proposals through a competitive request for 12 proposal (RFP) process to purchase rental properties. The RFP would not limit the type of 13 property that could be purchased. Properties could range from multi-family apartment units to 14 manufactured homes. The properties would then be dedicated to housing individuals or families 15 with annual incomes of fifty percent (50%) or less of the local median income for rental and up 16 to eighty percent (80%) median income for homeownership. Funding priority would be given to 17 rental projects. The proposals would allow the County to either fully fund or partially contribute 18 to the purchase of affordable rental housing. However, the properties would be managed and 19 maintained by another party under a lease agreement or other type of contract. A staff team 20 would use the following grading criteria to evaluate proposals and recommend funding: 21 22 1. The property must include one or more rental or homeownership properties. 23 2. The properties must be available to individuals or families with annual incomes of 50% or 24 less of the local median income for rental and up to 80% median income for homeownership. 25 3. Priority will be given to individuals or families referred by County agencies or recognized non- 26 profit partners. 27 4. The proposal must address how the property will be managed and maintained. 28 5. The properties must pass an initial inspection for safety, quality, and feasibility and must be 29 maintained to safety standards, subject to inspection by the County. 30 6. The properties should be located in an area with access to transportation resources, or the 31 proposer must include a plan to address access to transportation. 32 7. Additional consideration will be given to proposals that include contributions from other public 33 or private sources or that leverage additional resources for affordable housing. 34 8. Additional consideration will be given to the speed with which the properties can be made 35 available to tenants. 36 9. Additional consideration will be given for proposals addressing special needs populations, 37 e.g. seniors, persons with disabilities, etc. 38 39 Commissioner Price asked if the specific owners of the housing units could be identified. 40 Audrey Spencer-Horsley said it would depend on the proposal. She said currently 41 priority is being given to proposals where the properties are owned by a third party. 42 Commissioner Price asked if the County could own the housing. 43 Audrey Spencer-Horsley said it is possible, but it is hoped that proposals will come in 44 that identify creative and innovative ways to meet affordable housing needs. She said County 45 owned land could be one option. 46 Commissioner Rich said when the million was proposed, it was her understanding that it 47 was intended for the banking of some land to serve as a safety net for mobile homes. She said 48 she sees no mention of mobile homes now. She asked if there is specific rationale behind the 49 80/20 split for the rental properties. She asked if a comprehensive needs assessment done in