Affordable Housing Task Force Report - 4-3-2001

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8 ✓ Fees for public water/sewer service extensions also pose a potential barrier to affordable housing development. In response, in 1998, OWASA implemented a tiered residential availability fee system for homes in five size classes with the lowest tier including homes less than 1701 square feet. There is currently discussion regarding the inclusion of a new lower tier of service as well. ✓ There is a continued need to combat the myth that affordable housing lowers neighborhood property values. Recommendations 1. Establish short-term (5-year) and long-term (10-year) affordable housing targets for development. Affordable housing targets should focus on low income rental families (those below 50% of the area median income, i.e., $31,400 for a family of 4 in 2000) and increase incrementally over the plan period as both the capacity and commitment of local providers grow and local funding sources are developed. Recommended Short-term Housing Targets % of Median Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Total Total Public Income(MI)/ Number Subsidy @ Rousing Tenure Units $20,000/unit <50%MI/Owner 20 22 24 26 28 120 $10 million <60%MI/Rental •50 60 80 100 110 400 Subtotals 70 82 104 126 138 520 $10 million 51-80%MI/Owner 25 30 36 42 50 183 $4 million Totals 95 112 140 168 188 703 $14 million • Given that approximately 12,281 households in the County are experiencing housing problems, 703 housing units addresses approximately six (6) percent of the estimated total housing need in Orange County during the next five (5) years. • $14 million in public subsidies will generate $80 million in affordable housing stock. (703 units x$112,000 [estimated cost per unit] = $80 million) • County bond initiatives, including the current bond monies and a new 2001 bond issue, can be used to finance the recommended housing targets. [Reference: Inventory and Needs Subcommittee Report] 2. Establish an Affordable Housing Advisory Board for Orange County. The Board would assist the Board of Commissioners with the following: ♦ Prioritizing needs; ♦ Assessing project proposals; ♦ Aid the process of publicizing the County's housing objectives;