Agenda 06-18-19 Item 8-v - Proposed Changes to the Long-Term Housing Affordability Policy

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Homeownership Assistance HOME Amount Per Unit Minimum Period of Affordability in Years Under $15,000 5 $15,000 to $40,000 10 Over $40,000 15 Presently there is an inconsistency between the Annual Action Plan and the Long-Term Housing Affordability Policy, as well as the lack of a mechanism for reporting that is not burdensome to community partners and/or developers receiving funding under Orange County HOME Consortium given the County’s Long-Term Housing Affordability Policy. The proposed changes include the following as a means to bring about consistency: 1.) Annual Action Plans should utilize the “shared net proceeds methodology” listed in the Long- term Housing Affordability Policy as it relates to recapture and homeownership activities, excluding transfers to income-eligible family members or other qualified buyers. However, for rental activities, recapture will be based upon the HOME investment in the project and whether or not the proposed buyer will maintain the affordability of the unit(s). 2.) As it relates to the Long-Term Housing Affordability Policy, it is requested that the following change be included as a “new Item V” as it relates to reporting requirements for projects and state the following: • “In the case of federally funded and/or other projects affected by this Policy, reporting requirements will run as follows: o Federal projects (rental activities) – meet the statutory federal requirements as stated in the preceding chart and once the federal requirements have been met, reports should be submitted in 10-year increments, as well as utilize “self- certification” on an annual basis by tenants and maintain those documents onsite in the intervening years, excluding initial lease-ups which require full documentation for eligibility determinations. All reporting shall cease in the 60th year except in the case of a refinance, substantial rehabilitation or transfer of ownership. If one of the aforementioned events occurs, reporting will continue or re-start for the remainder of the affordability period. o Federal projects (homeownership activities) – meet the statutory federal requirements in the preceding chart and once those have been met, reports should be submitted in 10-year increments with an annual verification of occupancy until the 40th year at such time all reporting will cease except in the case of a transfer of ownership. o For locally funded projects (substantial rehabilitation) – reporting shall be similar to the federal HOME requirements with reporting beginning at the completion of project and running for a 15-year term. All reporting will cease in year 15. o For locally funded projects (rental activities) – reporting shall mirror the requirements outlined in Sub-Bullet 1 above. o For locally funded projects (homeownership activities) – reporting shall mirror the requirements outline in Sub-Bullet 2 above. 2