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Attachment A 3 <br /> ORANGE COUNTY <br /> COPYBOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: <br /> Action Agenda <br /> Item No. 7-b <br /> SUBJECT: Affordable Housing Fund Criteria <br /> DEPARTMENT: Housing, Human Rights and PUBLIC HEARING: (Y/N) No <br /> Community Development <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Audrey Spencer-Horsley, Housing, Human <br /> Rights and Community Development <br /> Director, (919) 245-2492 <br /> PURPOSE: To establish a process and criteria to fund affordable housing projects using the FY <br /> 2015-16 Affordable Housing appropriation. <br /> BACKGROUND: The FY 2015-16 Budget includes $1 million to fund affordable housing <br /> alternatives. The Budget states that the purpose of this fund is to acquire aggregate parcels, <br /> improve existing County-owned properties for future residential development to address <br /> displaced manufactured homes, as well as affordable housing alternatives. <br /> According to the Five Year Consolidated Plan and FY 2015 Action Plan, the most significant <br /> housing need in Orange County is affordable rental housing. The Plan states that 28.4% of <br /> renter households contribute 50% or more of annual income to housing costs while 7.7% of <br /> owner households contribute the same proportion. If the percentage of income dedicated to <br /> housing costs is reduced to 30%, the proportion of renter households dedicating at least that <br /> amount to housing increases to 44.1%. The Plan further concluded through interviews and <br /> surveys that the lack of quality, affordable housing for rent is the largest unmet housing need in <br /> Orange County. <br /> To address this need, staff is proposing to prioritize the use of the $1 million affordable housing <br /> fund to increase or, at a minimum, maintain the supply of affordable rental properties in the <br /> community. Eighty percent (80%) of the fund would be used for rental property projects and up <br /> to twenty percent (20%) could be applied to homeownership activities. This effort would <br /> represent the first phase of an affordable housing plan that will address additional housing <br /> needs and identify other opportunities. <br /> Under this model, the County would solicit proposals through a competitive request for proposal <br /> (RFP) process to purchase rental properties. The RFP would not limit the type of property that <br /> could be purchased. Properties could range from multi-family apartment units to manufactured <br /> homes. The properties would then be dedicated to housing individuals or families with annual <br />