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HomeMy WebLinkAboutAGMT - Orange County Housing Finance Trust (JPA) (City of Seal Beach Becoming a Member of the OC Housing Finance Trust)Purpose The current wave of homelessness is a pressing problem sparing few communities across the United States. Since the issue came to the forefront in the early 1980s, estimates of the number of homeless have waxed and waned, but the crisis of American citizens experiencing homelessness continues to persist. Orange County and its 34 municipalities have not been spared this crisis. According to the 2015 Orange County Point in Time Count report, nearly 4,500 people experienced homelessness (2,200 of whom were unsheltered) on any given night, and 15,291 people were expected to be homeless over the course of the year. This equates to one in 200 Orange County residents experiencing at least one night of homelessness during 2015. In addition to the devastating and traumatizing physical and psychological costs of homelessness to those individuals and families who experience it, homelessness imposes considerable economic costs on the communities in which it exists. There have been a number of cost studies across other major localities in the U.S., and in California in particular, but no such cost study has been completed for Orange County. The purpose of this project has been to conduct a countywide cost study, with two primary objectives: • First, to estimate the economic expenditures on homelessness that have accrued to the county, its 34 municipalities, and its non- governmental service agencies, including hospitals and non -profits providing services to this population; e RETURN TO CONTENTS • Second, to assess the extent to which the costs of serving the homeless vary across the spectrum of those living on the streets and in shelters versus those living in alternative forms of housing. The Study This is a collaborative study among Orange County United Way, Jamboree, and the University of California, Irvine, with the support of the Association of California Cities — Orange County (ACC -OC), 2-1-1 Orange County (211 OC), and the Hospital Association of Southern California. In addition, an Advisory Committee representing a cross section of Orange County experts and practitioners from various institutions and organizations served to guide our design and process. The study -was also conducted to leverage the work of the United Way's FACE 2024 strategic plan, the county's 10 Year Plan to End Homelessness, and the county's new Office of Care Coordination. The study is based on data collected from five main sources: the County of Orange, the municipalities within the county, Orange County hospitals (via the Hospital Association of Southern California and Cal Optima), a sample of non-governmental agencies addressing homelessness and individuals experiencing homelessness themselves. The data was gathered through questionnaires sent to municipalities, hospitals and service agencies as well as structured, in-person survey interviews conducted with a sample of 252 homeless individuals throughout the county. Given the breadth and volume of data assembled, this is clearly one of the most z E E W .j Ln X LO comprehensive studies of the public costs of homelessness in the United States. Key Findings Demographic and Biographic Characteristics of the Homeless Population Results from our sample of homeless individuals indicate that Orange County's homeless population is defined largely by the following characteristics: They are mainly long-term OC residents, with 68% of the 252 homeless surveyed having lived in the county for 10 years or longer • They are predominately US -born individuals (90%) • A significant share are middle-aged (52% are age 50 or older), non -Hispanic White (47%), male (57%) and live alone (67%) Key Finding: The vast majority of Orange County's homeless, whethermale orfemale, are U.S. citizens and long-term Orange County residents of over 10 years, rather than individuals who have recently chosen to come to Orange County. The major factors precipitating homelessness in our sample (in order of frequency of mention) are: • Securing or retaining jobs with sustainable wages (40%) • Finding or retaining affordable housing, including evictions and foreclosures (36%) • Family issues, which include domestic violence, family dysfunction, relationship dissolution and death of a family member (28%) • Alcohol and/or drugs (22%) • Mental health (17%) • Physical health (13%) • Release from jail/prison (7%) - RETURN TO CONTENTS Key Finding: Homelessness is caused primarily by lack of sufficient income or job loss combined with high costs of housing in Orange County. Other factors, like family dysfunction, health, and substance abuse, increase one's vulnerability to homelessness in such a context. This observation is further substantiated by the following finding: The median monthly income of the homeless in our sample, from all possible sources, is $860. Income varies greatly by housing status, ranging from a median of $500 for those living on the street to a median of $1,958 for homeless individuals and families placed into a rapid re -housing program (who are often supporting dependent children). Nonetheless, across all housing categories, these income levels put housing rental out of reach given the average cost of rent for a single bedroom apartment in OC of $1,700 to $1,800+ in 2015. The Cost of Homelessness We estimate that approximately $299 million was spent to address homelessness in Orange County by governmental and non-governmental entities in a 12 -month period encompassing 2014/2015. • Municipalities account for the largest share of this total (—$120 million), followed by • Hospitals (—$77 million), • The County (—$62 million) • Non-governmental housing agencies (—$35 million) • Other non-governmental agencies servicing the homeless (—$5 million with incomplete data). Key Finding: Orange County's city governments and public services bear the brunt of the costs associated with homelessness in Orange County. E E co U X W Across the major service clusters (health care, housing, and criminal justice), we estimate that approximately $121 million was spent providing health care to the homeless in a 12 -month period encompassing 2014/2015. Counties, municipalities and non-governmental agencies spent approximately $106 million on all types of housing for the homeless, and an estimated $23 million was spent on criminal justice contacts (police/jail/prison). Key Finding. Costs are highest in Orange County's health care service cluster, which is consistent with other cost studies across the country. Based on our interviews, we estimate that the average annual cost per person for all services is approximately $45,000. Heavy service consumers, particularly of health and medical services, drive the average cost up greatly, so much so, that if the most costly 10% are dropped from the analysis, the mean annual cost per person drops to approximately $10,000. Key Finding: The costs of homelessness are driven upwards by the heaviest service users among those who are chronically street homeless.' Costs by Housing Categories (Street and Emergency Sheltered Homeless versus those housed in Bridge, Rapid Re -Housing, or Permanent Supportive Housing—PSH) • Our interviews with those experiencing homelessness indicate that use of social and health services and criminal justice contacts < RETURN TO CONTENTS are lower among those who are housed compared to those living on the streets. Those in permanent supportive housing reported 78% fewer ambulance transports in the last month, and 100% fewer arrests, compared to those who are chronically homeless living on the street or in emergency shelters. • As a result of decreases in service utilization and criminal justice contacts, the estimated average annual cost of services is 40% lower for the chronically homeless in permanent supportive housing ($51,587) in comparison to the chronically homeless living on the streets and in emergency shelters ($85,631), even taking into consideration the program costs of permanent supportive housing. Similarly, the average annual cost for those housed in rapid re -housing ($9,175) and bridge housing ($22,686) is 75% and 38% lower, respectively, than the annual cost for the non -chronically homeless on the street and in emergency shelters ($36,419) net of the program costs of housing. • When looking at health service utilization alone, the estimated average annual cost among those homeless who are housed ($26,158) is half the annual cost incurred by those on the street or in emergency shelters ($51,855), with the disparity even greater between those in permanent supportive housing ($43,184) and the chronically street homeless ($98,199). Key Finding: Whatever the service or housing category, the costs of homelessness declines when the homeless are housed. This holds for both the non -chronically and the chronically homeless. E E U) X LU Cost Savings of Housing Chronically Street Homeless in Permanent Supportive Housing (PSH) The estimated average annual cost of services per capita for permanent supportive housing clients is 50% lower than for the chronically street homeless ($51,587 versus $100,759). Taking into consideration the average cost of services per capita, we estimate a cost savings of approximately $42 million per year if all Orange County chronically homeless were placed into permanent supportive housing. The potential cost savings of housing the homeless are even more significant for the chronically street homeless who are the f- RETURN TO CONTENTS heaviest service users, and in particular for those in the upper decile of costs. We find that 10% of the chronically street homeless incur annual costs higher than $439,787 per person, whereas the most costly 10% of those in permanent supportive housing incur annual costs in excess of only $55,332. Key Finding: The cost savings data on housing the homeless in general, and particularly the chronically street homeless, show a consistent and compelling pattern. costs are markedly lower among the homeless who are housed, and this is especially true for the chronically homeless. E E coco d .j U d X W Go O R A N G E C O U N T Y C-1-oCCommunity Resources Our Community. Our Commitment. Orange County, California June 12, 2018 MwMm CSH Contents ExecutiveSummary .........................................................................................................................1 Regional Efforts in Orange County.................................................................................................. 2 AffordableHousing Overview......................................................................................................... 2 Homelessness in Orange County.......................................................................................... 5 SupportiveHousing.............................................................................................................. 5 Needs, Gaps and Special Populations.................................................................................. 6 ChronicallyHomeless Need.................................................................................................. 6 Veterans............................................................................................................................... 7 Supportive Housing Unit Projections................................................................................... 7 Affordable/Supportive Housing Resources..................................................................................10 CapitalFunding Sources..................................................................................................... 10 Operating Funding Sources: ............................................................................................... 14 Services Funding Sources and Partnerships.......................................................................16 Potential Future Funding Sources......................................................................................18 FinancialModeling........................................................................................................................ 21 Financial Model — Capital Resources............................................................................................ 22 Mitigating the Financing Gap............................................................................................. 24 Financing Modeling — Operating/Rental Subsidies............................................................ 25 Total Gap: Capital and Renta [/Operating Funding............................................................. 26 Opportunities................................................................................................................................ 27 Challenges..................................................................................................................................... 27 Recommendations& Next Steps.................................................................................................. 28 Appendices Definitions References Executive Summary Homelessness is currently one of the most urgent issues facing Orange County. With a Point in Time (PIT) count total of 4,792 individuals experiencing homelessness across the County on a single night in January 2017, it is clear that the impacts of homelessness are profoundly felt in the region. This Housing Funding Strategy (HF Strategy) summarizes the need for supportive housing (including the broad 2,700 supportive housing unit goal established by homeless planning groups in Orange County), the need for affordable housing options for people experiencing homelessness (estimated at an additional 2,700 units or subsidies)' the costs of creating, operating and providing services in supportive housing, as well as a range of opportunities, challenges and strategies to maximize the creation of supportive housing in Orange County. The HF Strategy outlines: • Regional Efforts in Orange County • Affordable Housing Overview • Needs Gaps and Special Populations • Affordable/Supportive Housing Resources • Financial Modeling • Opportunities • Challenges • Recommendations & Next Steps The HF Strategy summarizes the resources currently available, as well as those that are anticipated, with recommendations for Orange County to maximize competitiveness in successfully funding projects. The urgent crisis of homelessness requires swift action to create pathways out of homelessness for the most vulnerable in our community and this HF Strategy outlines key next steps to maximize housing options for those who need it most. 1 The estimate of an additional need for 2,700 additional affordable housing options is based on the 2017 Point in Time count numbers and the 2017 Annual Homeless Assessment Report (AHAR) Page 1 Regional Efforts in Orange County The Orange County Board of Supervisors has dedicated significant effort to effectively addressing homelessness in the county. These efforts have been across the region. Through direction from the Board, Orange County Community Resources (OCCR) provides funding, resources and loans for the development of supportive housing throughout the county. OCCR also oversees the Housing Choice Vouchers throughout the 31 cities and the unincorporated areas. Three other cities in the region have their own Housing Authorities and administer their own Housing Choice Voucher resources: Anaheim, Santa Ana, and Garden Grove. Other County agencies also provide housing resources to address homelessness, such as the Health Care Agency through Mental Health Services Act (MHSA) Housing fund's, Whole Person Care, and the Social Service Agency through Housing Support Services Funds, Bringing Families Home and Housing and Disability Advocacy Programs. Affordable Housing Overview What is Affordable Housing? Affordable Housing refers to rental or owner -occupied housing that costs no more than 30 percent of a household's monthly income. Who needs Affordable Housing? Households are considered "cost -burdened" when their housing costs more than 30% of their income. Cost -burdened households may not be able to afford other necessities such as food, clothing, transportation and medical care (United States Department of Housing and Urban Development, n.d.). Affordable Housing could benefit these households. In communities throughout the United States, a family with one full-time worker earning minimum wage cannot afford the local fair -market rent for a two-bedroom apartment. Additionally, there are about 12 Million households in the US that pay more than 50% of their annual incomes for housing. Notably, the typical renter in Orange County pays the nation's largest portion of their household income to the landlord. What is Area Median Income (AMI) or Median Family Income (MFI)? Area Median Income (AMI) or Median Family Income (MFI) generally refers to the median family income of a geographic area estimated by the United States Department of Housing and Urban Development (HUD) for the HUD Housing Choice Voucher (HCV) Program in communities across the country. To calculate HCV Income Limits, HUD first creates MFI estimates. Five-year survey data was used in the 2017 MFI estimates. The survey data is then adjusted by HUD to account for anticipated income growth using the Consumer Price Index (CPI) inflation forecast published by the US Congressional Budget Office. Very Low -Income Limits are calculated using HUD's determination of MFI. Then, the Very Low -Income Limit category is used to calculate income limits for the other income categories that are described in detail below (Seeger, 2017). Page 2 What are the MFI/AMI Income Limit Categories? The income limits for Orange County are defined in the table below, which are defined as follows: • Extremely Low -Income: Extremely Low -Income limits are calculated as 60 percent of the very low-income limits and compared to the most recent update to the federal Poverty Guidelines. If the poverty guidelines are higher, those values are chosen. The value is capped at the Very Low -Income level (Seeger, 2017). • Very Low -Income: The maximum Very Low -Income limit typically reflects 50 percent of median family income (MFI). HUD's MFI figure generally equals two times HUD's 4 - person very low-income limit, except when HUD applies adjustments (Seeger, 2017). • Low -Income: In general, maximum income for low-income households reflects 80 percent of the MFI level. Most low-income limits represent the higher level of: (1) 80 percent of MFI or, (2) 80 percent of State non -metropolitan median family income (Seeger, 2017). • Moderate -Income Levels: The State Housing and Community Development (HCD) Department is responsible for establishing California's moderate -income limit levels. After calculating the 4 -person area median income (AMI) level as previously described, HCD sets the maximum moderate -income limit to equal 120 percent of the county's AMI (Seeger, 2017). What are the MFI/AMI Income Limits for Orange County? The. 2017 Area Median Income (AMI) for Orange County is $88,000. The subsequent income categories and household sizes are in Table A below. It is important to note that a typical supportive housing tenant is an adult receiving a monthly Social Security Income payment of $910.72/month (or $10,928/year). This income is approximately 18% of Area Median Income for Orange County. In addition, many supportive housing tenants may have zero income, or close to zero income and supportive housing projects need to have plans in place to house people with such limited financial resources, including rent payment expectations as well as "move -in" resources. I Page 3 Table A: Income Limits for Orange County (United States Department of Housing and Urban Development, 2017) (Seeger, 2017) FY 2017 Income Limit Category Extremely Low Income Very Low Income Low Income Median Income Moderate Income Persons in Family 1 2 3 4 5 6 7 8 21,950 25,050 28,200 31,300 33,850 36,350 38,850 41,350 36,550 41,750 46,950 52,150 56,350 60,500 64,700 68,850 58,450 66,800 75,150 83,450 90,150 96,850 103,500 110,200 61,600 70,400 79,200 88,000 95,050 102,100 109,100 116,150 73,900 84,500 95,050 105,600 114,050 122,500 130,950 139,400 Affordable Housing Strategic Plan and Accomplishments to Date In 2015, Orange County launched its Affordable Housing Strategic Plan along with an Affordable Housing Implementation Plan. The purpose of the Affordable Housing Strategic Plan was to outline key priorities and strategies that would maximize and prioritize affordable and supportive housing production. Recommendations from this strategic plan included: 1. Aligning available housing resources within a single NOFA/RFP; 2. Leveraging housing resources over several funding cycles in order to maximize project competitiveness when seeking sources of funding; 3. Prioritizing rental subsidy commitments for projects receiving capital investments; 4. Prioritizing investment of County resources within the County jurisdiction and regional initiatives; 5. Targeting resources to create housing opportunities that have the greatest impact on specific priority populations The Plan specified that the recommendations listed above were designed for the next five years in order to create the most housing opportunities. These strategies have opened doors and enabled people experiencing homelessness to leave the streets behind by providing critical supports to important and innovative projects across the County. In addition, the Board of Supervisors has committed $25 Million in Mental Health Services Act (MHSA) Housing funds towards these efforts. Commitments from Orange County (OCCR and the Health Care Agency) have included a range of capital, operating, and services funding commitments to numerous supportive and affordable housing projects, including 688 affordable and supportive housing units that are leased up or in various stages of development throughout the region. Within this total of 574 units, 341 are supportive housing units (which includes 131 MHSA supportive housing units). In addition, there are 1,600 to 1,800 potential units that developers have indicated could be developed given adequate resources, but not yet entitled. Page 4 Housing Needs and Goals Homelessness in Orange County According to the 2017 Point in Time (PIT) Count, there are 4,792 people experiencing homelessness in Orange County. The unsheltered homeless population (2,584) accounts for 54% of the total homeless persons, whereas the remaining 46% (2,208) were sheltered in Emergency Shelter and Transitional Housing programs. This high number of unsheltered households consists mostly of individuals (households without children), which account for 99% of the unsheltered population (2017 PIT). Supportive Housing Supportive housing is more than just affordable housing. Many homeless households have higher needs than other cost -burdened households that need affordable housing. People who need services in order to remain stably housed need supportive housing because it includes tenancy support services and is designed to be affordable for individuals who receive Social Security Income or who may have no income. Supportive housing combines affordable housing with services that help people who face the most complex challenges to live with stability, autonomy and dignity. Supportive housing is affordable housing where supportive services providers actively engage tenants in flexible, voluntary and comprehensive services and work with property and housing management to support tenant stability and ensure that the housing remains a positive community asset for the long-term. Supportive housing is an innovative and proven solution to some of communities'toughest problems. Supportive housing is the scaffolding forthe delivery of more effective and responsive public services. Supportive housing is for people who are highly vulnerable, like those experiencing chronic homelessness. Someone experiencing chronic homelessness has lived on the streets, in his or her car, in a shelter or somewhere not meant to be lived in for an extended period of time and has a disability. Supportive housing is also an effective intervention for those who cycle through institutions, such as emergency rooms, psychiatric facilities, jails, and hospitals, for example. Supportive housing is for people who without housing, are not able to secure the treatment and supportive services available to them. Because supportive housing provides the stability that we hope everyone can have, somewhere where they can call home, it allows people to start to access non -emergency services like primary health care, mental health care, public benefits and others. I Page 5 There are an estimated 2,700 supportive housing units currently available in Orange County according to the 2017 Housing Inventory Chart. These units are predominantly scattered site supportive housing using rent subsidies such as Housing and Urban Development -Veterans Affairs Support Housing (HUD-VASH) vouchers and HUD SHP rental subsidies in the private market, along with some newly constructed or rehabilitated supportive housing units. Needs, Gaps and Special Populations The County has identified the need for approximately 2,700 new supportive housing units based on information from the 2017 Point in Time Count and the Annual Homeless Assessment Report (AHAR). Using this previously identified unit goal as a guide, and analyzing the demographics of the 2017 Point in Time Count and the AHAR data, CSH estimates a need for 500 family supportive housing units and 2,200 supportive housing units for individuals. Chronically Homeless Need: CSH estimates that 1,000 of the 2,700 supportive housing units will be needed for individuals and families experiencing chronic homelessness,z and 1,700 will be needed for other households experiencing homelessness who also have significant service needs (2017 PIT, 2017 AHAR). Within the 1,700 non -chronically homeless supportive housing units, 1,200 units are projected for individuals and 500 are projected for families. The following chart breaks down the estimated unit needs by population type: Chart A Supportive Housing Unit Goal: 2,700 Supportive Housing Unit Goal Estimated Need by Population 1,200 rnn 1,000 ■ Chronically homeless ■ Homeless (individual) ■ Homeless (family) z There is an estimated need for 10 supportive housing units for chronically homeless families. I Page 6 Veterans For the past eight years, the homeless veteran population has decreased dramatically from 1,282 in 2009, to 856 in 2011, to about 450 in 2013 and 2015, and to 405 in 2017 (Orange County PIT). Eighty eight percent of veterans experiencing homelessness were unsheltered in 2017. This is a significant regional success that can be attributed to effective strategies that have been implemented over the last decade, primarily providing access to both affordable and supportive housing. Chart B Veteran Homelessness in Orange County — Point in Time Count Numbers: Veteran Homelessness -Orange County (PIT) 14nn -- 1282 _ l 1200 -- -- - — 1000 800 - ---- 600 - - -- -- 447 405 400 200_— i 0 - 2009 2011 2013 2015 2017 It is important to note that veterans are approximately 4% of the overall population in Orange County, yet veterans make up 10% of the homeless population locally. More detailed information from the 2017 AHAR shows that about 29% of adults in supportive housing identified as being veterans. According to the 2017 Point in Time (PIT) count, about 2% of those in shelter and transitional housing were veterans, and about 14% of unsheltered people were veterans. Supportive Housing Unit Projections There is an estimated need to create 2,700 supportive housing units to provide housing and services for people experiencing homelessness in Orange County who have disabling health conditions and support services needs. In addition, local data (2017 PIT; 2017 AHAR) showed a need for access to affordable housing for an additional 2,700 people experiencing homelessness in the region. This report focuses on estimated unit goals and recommends that local planning take into account the need to create 2,700 supportive housing units. It is important to note that there is also a need for access to affordable housing options, such as developed affordable housing, Page 7 Section 8 housing vouchers, and rapid rehousing resources for the additional 2,700 people experiencing homelessness who are in need of access to affordable housing. It is recommended that careful planning continues throughout the region to also meet those additional housing needs. The table below projects the unit breakdown to create 2,700 units of supportive housing over the next seven years to meet the housing needs of people with disabling health conditions who are experiencing homelessness in Orange County. Table B: Supportive Housing Unit Goal (by Population and Unit Type): Supportive Housing Goal by Population Studio/1 Bedroom 2 or 3 Bedroom Total Homeless Individual 1200 1,200 Chronically Homeless Individual (+ 10 family units) 990 10 1,000 Homeless Family 500 500 Total 2,190 510 2,700 Housing Models and Development Approaches Supportive housing can be created using a variety of models and approaches. This HF Strategy anticipates that the supportive housing developed across Orange County will include the following models and approaches: Single Site Supportive Housing This is generally a multi -family supportive housing development that exclusively provides housing along with support services to formerly homeless families or individuals. Integrated Housing This model generally refers to multi -family housing developments that have a dedicated percentage of subsidized units that provide housing to formerly homeless families or individuals along with support services. The other units in the development are affordable housing for low-income individuals and families. Development Approaches: Hotel/Motel Conversion, Acquisition/Rehabilitation and New Construction A variety of approaches to development are required in order to achieve the ambitious unit goal of creating 2,700 units of supportive housing. These development approaches include Hotel/Motel Conversion, Acquisition/Rehabilitation, as well as New Construction. Village Model An innovative approach to providing housing for people experiencing homelessness is to create a "village" of homes, offering housing and a community of support for people leaving the streets behind. Page 8 The table below outlines the number of units that could be produced through a development approach, followed by an estimate of the total development costs to create the 2,700 units of developed supportive housing. Table C: Supportive Housing Unit Goal (by Year Placed in Service) Total Supportive Housing Units - Projected Need across Orange County Region 2019 2020 2021 2022 2023 2024 2025 TOTAL Supportive Housing - Single Adults: Acquisition/Rehabilitation 190 200 200 200 200 200 200 1,390 Supportive Housing - Single Adults: New Construction 150 150 100 100 100 100 100 800 Supportive Housing - Families: Acquisition/Rehabilitation 50 50 45 35 35 35 250 Supportive Housing - Families: New Construction 60 50 45 35 35 35 260 Total 450 450 390 370 370 370 300 2,700 Page 9 Affordable/Supportive Housing Resources It is important to understand the full range of potential resources that could be accessed in achieving Orange County's supportive housing unit goals. Supportive housing development requires three types of resources for successful projects: • Capital Funding—to build the housing development. • Operating Funding — to ensure the housing development can operate; pays the difference between what a supportive housing tenant can pay and what it costs to actually operate the unit. • Services Funding—to provide support services to tenants to ensure their stability in housing. Capital Funding Sources The following sources are critical resources to the development of affordable and supportive housing: • 4% and 9% Low Income Housing Tax Credits (LIHTC) • Conventional Financing/ Loans • Federal Home Loan Bank Affordable Housing Program (AHP) • HOME Investment Partnerships Program (HOME) • Community Development Block Grant (CDBG) • Local Continuum of Care Supportive Housing Program (SHP) resources (Homeless Emergency Assistance and Rapid Transition to Housing - HEARTH) • Locally controlled Housing Funds: o Housing Successor Agency (Redevelopment) o Housing Authorities o Mental Health Services Act Housing Program/Special Needs Housing Program (CaIHFA) — includes capital and operating funds • State Funds: o Veteran's Housing and Homeless Prevention Program (VHHP) o Multifamily Housing Program (MHP) o Affordable Housing and Sustainable Communities Program (AHSC) Veterans Housing and Homeless Prevention (VHHP) Program (Proposition 41) Passed by the voters in June 2014, the VHHP program allows the state to sell $600 Million in bonds to fund housing for low-income and homeless veterans. Three NOFAs have been issued under the VHHP Program and the fourth NOFA was released in May 2018. Source of Funding: Initially Proposition 12 in 2008, the Veteran's Bond Act of 2008, authorizing $900 Million in general obligation bonds, intended to help veterans purchase single family homes, farms, and mobile homes through the California Department of Veterans Affairs I Page 10 (Calvet) Home Loan Program. In 2013, AB 639 (Chapter 727, Statutes of 2013, Perez) restructured the Veteran's Bond Act of 2008 authorizing $600 Million in existing bond authority to fund multifamily housing for veterans. With the approval of Proposition 41 by California voters on June 3, 2014, the Department of Housing and Community Development (HCD), in collaboration with the California Housing Finance Agency (CaIHFA) and CalVet, is administering the veteran multifamily housing program pursuant to AB 639 (Chapter 727, Statutes of 2013, Perez). Housing Successor Agency Funds Redevelopment Successor Agencies across Orange County are seeking to maximize the number of new affordable housing units that can be produced with the Successor Housing Entity's remaining housing assets by leveraging their funds with other funding sources. Source of Funding: The 2011 Budget Act dissolved California Redevelopment Agencies, which were funded through property tax revenues. The Housing Successor Agencies administer the funds that remain after the dissolution of redevelopment to meet required payments on existing bonds and other obligations. Cap and Trade - Affordable Housing and Sustainable Communities Program Beginning in Fiscal Year 2014-15, California has implemented a state-wide Cap and Trade program that sets aside a long-term revenue stream for affordable housing, focusing on the reduction of greenhouse gases in the state, including transit -oriented development. Twenty percent of Cap and Trade revenues are dedicated to the Affordable Housing and Sustainable Communities Program, including planning, active transportation, transit and other supportive infrastructure, estimated at $200-$300 Million/year in statewide funding. Source of Funding: the Affordable Housing and Sustainable Communities Program is funded by the California Climate Investments Program (CCIP, formerly the Greenhouse Gas Reduction Fund or GGRF), an account established to receive Cap -and -Trade auction proceeds. The program was initial authorized by Assembly Bill 32 (Nunez), the Global Warming Solutions Act of 2006. The Cap -and -Trade program sets a cap or limit on total GHG emissions that declines over time. Large emitters of greenhouse gases can buy, sell, and trade carbon allowances during quarterly auctions. A variety of legislation governs the implementation of this program. National Housing Trust Fund (NHTF) Since its creation in 2008 under the Housing and Economic Recovery Act, the NHTF funds the building, preservation, and rehabilitation of rental homes that are affordable for extremely and very low income households. The NHTF is a permanent program with a dedicated source of funding that is not be subject to the annual appropriations process. It prioritizes rental housing, with a minimum of 80% of the funds being used for the production, preservation, rehabilitation, or operation of rental housing and up to 10% for home ownership activities. Finally, 75% of the funds for rental housing must benefit extremely low income households (and all funds must benefit very low income households). The NHTF program is administered by State HCD and Page 11 priority is be given to special needs populations. NHTF can be paired with Community Development Block Grant (CDBG) and HOME funds as set forth in the State HCD Annual and Consolidated Plans. Source of Funding: The National Housing Trust Fund was established under Title I of the Housing and Economic Recovery Act of 2008, Section 1131 and the federal department of Housing and Urban Development (HUD) allocates funds annually to states. HOME Investment Partnerships Program (HOME) Orange County and surrounding cities receive varying amounts of federal HOME Investment Partnerships Program (HOME) funds, which are restricted for use within their jurisdictions. In most cities, these funds have not been targeted toward special needs or supportive housing in particular. However, they must be allocated to affordable housing development at the low to moderate income levels. Source of Funding: HOME funds are based on a federal formula grant to states and localities from the federal Housing and Urban Development (HUD) department and the use of the funds is governed through the HOME program regulations as well as locally developed Consolidated Plans and Annual Action Plan Projects. The HOME program was authorized under the 1990 Cranston -Gonzalez National Affordable Housing Act. Community Development Block Grant Program (CDBG) The Community Development Block Grant (CDBG) program enables local governments to undertake a wide range of activities intended to create suitable living environments, provide decent affordable housing and create economic opportunities, primarily for persons of low and moderate income. Orange County receives CDBG funds, along with a variety of other jurisdictions, including: • Anaheim • Buena Park • Costa Mesa • Fountain Valley • Fullerton • Garden Grove • Huntington Beach • Irvine • La Habra • Laguna Niguel • Lake Forest • Mission Viejo • Newport Beach • Orange • Rancho Santa Margarita • San Clemente • Santa Ana • Tustin • Westminster Metro Cities receiving CDBG funds: • Aliso Viejo • Placentia • Yorba Linda Collaborative and coordinated planning with these jurisdictions is critical as the region plans to use Year 2 SB2 funding, which will be received by the CDBG entities (discussed in further detail below). Source of Funding: The CDBG Entitlement Program provides annual grants on a formula basis to entitled cities and counties. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended; 42 U.S.C.-5301 et seq. I Page 12 Special Needs Housing Program The MHSA Housing Program concluded in May 2016. At the request of a number of counties, the California Housing Finance Agency (CaIHFA) created the "Local Government Special Needs Housing Program" (SNHP) which builds upon the successes of the MHSA Housing Program for the development of new MHSA housing. Orange County has allocated a total of $25 Million in funds to the SNHP for additional permanent supportive housing units. These funds are available to supportive housing developers in Orange County and there is a high degree of interest from the development community. Source of Funding: the Special Needs Housing Program (SNHP) is funded with Mental Health Services Act (MHSA) funding that local counties receive. Counties can choose to assign their MHSA funds to the SNHP administered by the California Housing Finance Agency (CaIHFA). The Mental Health Services Act was created through Proposition 63 in 2004 and is funded through a 1% income tax on personal income in excess of $1 Million. State Housing and Community Development Multi -Family Housing Program There are some monies left in this state program and a NOFA is anticipated to be released in 2018 to fully commit these bond funds. Summary of Funding Sources and Commitments to Orange County: The table below outlines various funding sources that are administered by the State of California and the amount that is available/dedicated to affordable/supportive housing: Table D: Summary of Funds Available and Committed in Orange County: Page 13 Affordable Housing & Most recent $255 Million NOFA Approx. $420 Million awarded to 53 projects Sustainable closed January 2018 with awards across the state in two NOFA rounds Communities expected in June 2018. (Cap and Trade) Orange County projects awarded funding: • $3.9 Million for Depot at Santiago by C&C Development in Santa Ana • $12 Million for Santa Ana Arts Collective by Meta Housing in Santa Ana National Housing $10 Million statewide NOFA expected in 2018. Trust Fund Veterans Housing and —$325 Million currently available One Orange County project funded: $1.79 Homeless Prevention statewide. Most current NOFA Million for Potter's Lane (15 units) (VHHP) Program released May, 2018. To date, 3 NOFAs issued with $238 Million awarded statewide, creating 1970 units. Page 13 Operating Funding Sources Affordable housing capital funding sources create projects that are affordable to people earning 30 to 60% of Area Median Income (AMI). As discussed above, individuals experiencing homelessness often have an income that is 18% AMI or less. To cover the difference between what a tenant can pay and the cost of operating the unit, an operating subsidy or rental subsidy is needed to ensure that the project is affordable and financially feasible over the long term. Housing Choice Vouchers The federal Housing Choice Voucher Program provides rental subsidies that are administered by four local housing authorities: • Orange County Housing Authority • Santa Ana Housing Authority • Anaheim Housing Authority • Garden Grove Housing Authority Tenant based housing assistance is provided to participants who find their own housing through a local landlord. The tenant pays the landlord 30% of their income toward rent and utilities directly to the landlord. The housing authority pays the remaining cost up to what is determined to be a "reasonable rent" for the market. Housing authorities have the discretion to "project -base" a portion of their housing choice vouchers by committing them to a specific housing project through a competitive allocation. When capital funders know a project will receive a rental subsidy, this can be used as a powerful development finance tool in the creation of new supportive housing in Orange County, as seen in MHSA Housing developments throughout the region. Housing and Urban Development - Veterans Affairs Supportive Housing (HUD- VASH) The federal Housing and Urban Development (HUD) and Veterans Affairs (VA) have collaborated to provide the HUD-VASH Supportive Housing Program which provides permanent housing subsidies and case management services to homeless veterans with disabling health conditions. The VA Medical Center in Long Beach California screens and selects veterans for participation in HUD-VASH in Orange County and the rental subsidies are administered by the Orange County Housing Authority. The VA and the Housing Authorities who receive HUD-VASH vouchers have the option to Project Base HUD-VASH, providing predictable operating revenue for housing developers, and the federal government is encouraging communities that receive HUD-VASH to focus resources on ending veterans and chronic homelessness. I Page 14 HUD 811 Project Rental Assistance The HUD Section 811 Project Rental Assistance Demonstration Program provides rental assistance to affordable housing developments serving persons with disabilities. The program serves non -elderly individuals with disabilities who have resided in a long-term health care facility for at least 90 days and desire to return to community living, or are at risk of institutionalization because of loss of housing. The Project Rental Assistance funding is managed by CalHFA in partnership with other state agencies. Two notices of funding available (NOFA) rounds have been complete (one state-wide and one specific to Los Angeles). Limited funds are still available under the statewide NOFA for PRA on an "over the counter" basis. SNHP Capitalized Operating Subsidy Reserves The Special Needs Housing Program also provides the possibility of funding a Capitalized Operating Subsidy Reserve (COSR) for projects that demonstrate that they cannot secure an operating subsidy from another source. Page 15 Services Funding Sources and Partnerships As described above, supportive housing requires capital financing to develop a supportive housing project and operating subsidies to ensure the housing is affordable to people with extremely low or no income. In addition, the supportive services provided in supportive housing are what distinguish supportive housing from other types of affordable housing. The support services should be designed to help ensure tenant stability in housing and maximize the ability to live independently. This Strategy does not outline the financial costs of services in the 2,700 units of supportive housing and it is incredibly challenging to identify and secure funding for the range of services needed to meet resident needs. In some cases, agencies that have existing revenue streams are able to partner with supportive housing owners to provide services directly to tenants. In these instances both partners must pay careful attention to the agreements and relationships to ensure ongoing commitments to the tenants. The following programs can provide service partnerships in supportive housing with careful attention to the agreements and relationships that enable services for supportive housing tenants: Mental Health Services Act (MHSA) Services MHSA services provided in supportive housing are designed for low-income adults, or older adults with serious mental illness, and children with severe emotional disorders and their families who, at the time of assessment for housing services, meet the criteria for MHSA services in their county of residence and are homeless or at risk for homelessness. The Orange County Community Supports and Services (CSS) plan is publicly posted and provides details on MHSA funded services across the county. Federally Qualified Health Centers (FQHCs) FQHCs are Medicaid -funded, neighborhood -based health service providers that serve underserved persons in their targeted geographic areas and must provide more than primary health care services, including behavioral health, nutritional counseling and some case management. The mission and service approach of FQHCs are similar to those of supportive housing providers. FQHCs in Orange County provide many of the additional services that high - need populations require, and there are many examples of successfully pairing FQHC resources with housing to promote tenant wellness and stability, and to create pathways out of homelessness. Whole Person Care (WPC) The County of Orange was approved through the State of California's Department of Health Care Services (DHCS) on October 24, 2016 for a five-year project to implement the Whole Person Care (WPC) pilot program. WPC is the coordination of physical, behavioral health, and social services in a patient -centered approach with the goals of improved health and well- being through more efficient and effective use of resources for Medi -Cal beneficiaries struggling with homelessness. WPC promotes increased communication between hospital Page 16 emergency rooms, CalOptima, community clinics, OC Health Care Agency (HCA) Behavioral Health Services and Public Health Services as well as recuperative care providers to improve access and navigation of services for the homeless population. WPC will provide important health and behavioral health supports to individuals and families in supportive housing. Program of All-inclusive Care for the Elderly (PACE) Programs of All-inclusive Care for the Elderly (PACE) provides a comprehensive set of social and medical services to seniors that allows them to continue living in their own homes for as long as possible. PACE serves individuals who are age 55 or older, certified by their state to need nursing home care, able to live safely in the community at the time of enrollment and live in a PACE service area. PACE in Orange County is provided by CalOptima and offers an interdisciplinary team to deliver in-home care, therapies, rehab, social services, transportation, adult day care, meals, respite care and medical care. Seniors may visit a PACE Center a few times a week or the PACE team may bring services to the senior's home. PACE providers also contract with mental health specialists to deliver behavioral health Treatment. There are promising models of pairing PACE supports with affordable/supportive housing developments to create a robust wrap around service model for seniors exiting. homelessness. Additional Service Partners: Health Partners: It is important to identify local health partners (such as hospitals, crisis centers, substance use disorder treatment services, and other health resources in Orange County) who provide responsive services that can assist in maintaining residential stability in housing. Local Philanthropy: In addition, Local Philanthropy will be a critical partner in all of these efforts, providing crucial supports to address funding gaps and spurring innovative approaches to ending homelessness in Orange County. I Page 17 Potential Future Funding Sources No Place Like Home On July 1, 2016, Governor Brown signed landmark legislation enacting the No Place Like Home program to dedicate $2 billion in bond proceeds to invest in permanent supportive housing for persons who are in need of mental health services and are experiencing homelessness, chronic homelessness, or who are at risk of chronic homelessness. The bonds will be repaid by funding from the Mental Health Services Act (MHSA). The program is currently awaiting a court ruling regarding the validity of the program, anticipated later on in 2018. Also, a measure may be placed on the November 2018 statewide ballot to explicitly authorize the use of Mental Health Services Act revenues to repay $2 billion in bond proceeds that will be used to fund a competitive county grant program to create permanent supportive housing units for people with severe mental illness via the No Place Like Home (NPLH) program. In current planning estimates, Orange County is included in the Large County category and local projects will compete against an estimated 9 other Large Counties for a pool of $386 Million in funding over a four year period. An additional $7 Million in NPLH funding will be available on an over the counter/non-competitive process for Orange County developments. Local sources for affordable and supportive housing financing will be critical for Orange County projects to be competitive in the NOFA rounds for NPLH funding. The No Place Like Home program requires a County Plan that meets State HCD's requirements. In working to achieve that goal, OCCR has formed a No Place Like Home Advisory Committee. Several of the key elements of the NPLH Plan requirements are aligned with this HF Strategy. The required NPLH Plan elements are: • Affordable Housing in Orange County • Needs and Barriers to Affordable Housing • Evidence Based Practices • Permanent Supportive Housing In Orange County • Plans, Goals, Strategies, and Activities to Reduce Homelessness in Orange County. Source of Funding: Mental Health Services Act (described above) SB2 - Building Homes and Jobs Act This program is funded through a $75 document recording fee and provides a dedicated source of funding for housing related activities, as described below. The program is expected to receive up to $250 Million/year on an ongoing basis and is designed in two phases: Year 1 and Year 2 and beyond. In the first year: • 50% of the funds will made available to local governments to update planning documents and zoning ordinances in order to streamline housing production, including, but not limited to, general plans, community plans, specific plans, sustainable communities' strategies, and local coastal programs. Page 18 • 50% made available to the Department of Housing and Community Development to assist persons experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, navigation centers, and the new construction, rehabilitation, and preservation of permanent and transitional rental housing. The department shall ensure geographic equity in the distribution and expenditure of funds allocated. In the second year funds will flow to CDBG jurisdictions throughout the state and it is critical that Orange County work with the local CDBG jurisdictions to align priorities related to housing and homelessness. In year two and beyond, the following requirements will be in place: • 20% of all moneys in the fund be expended for affordable owner -occupied workforce housing. This will be calculated across all of the programs below: o 70% of the moneys deposited in the fund be provided to local governments in accordance with a specified formula for the purposes listed below ■ 90% of these monies will follow the entitlement formula specified in Section 5306 of Title 42 of the United States Code for federal FY 2017 ■ 10% of funds would be competitive for non -entitlement areas 0 5% for state incentive programs 0 10% housing for agricultural workers 0 15% for Cal HFA financing for multi -family housing For the 70% of funds available (note that 20% of overall Year 2 funding will be for owner - occupied workforce housing), funds can be used for: (i) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live -work, rental housing that is affordable to extremely low, very low, low-, and moderate -income households, including necessary operating subsidies. (ii) Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas. (iii) Matching portions of funds placed into local or regional housing trust funds. (iv) Matching portions of funds available through the Low and Moderate Income Housing Asset Fund pursuant to subdivision (d) of Section 34176 of the Health and Safety Code. (v) Capitalized reserves for services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Bond Act of 2014. (vi) Assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. (vii) Accessibility modifications. (viii) Efforts to acquire and rehabilitate foreclosed or vacant homes. (ix) Homeownership opportunities, including, but not limited to, down payment assistance. I Page 19 (x) Fiscal incentives or matching funds to local agencies that approve new housing for extremely low, very low, low-, and moderate -income households. Source of Funding: Document Recording Fee. SB3 - Veterans and Affordable Housing Bond Act of 2018 S133 authorized the legislature to place this Act on the ballot in November 2018 and would provide $4 billion in bond financing for various existing housing programs as well as infill infrastructure financing and affordable housing matching grant programs, to be administered by State Housing and Community Development and California Housing Finance Agency. If successfully passed, up to $300 Million of S133 funds would be available statewide for local jurisdictions to apply to fund local Housing Trust Funds. This Act would bring significant new resources to the State of California for the creation of affordable and supportive housing. Source of Funding: General obligation bond. SB912 Housing: homelessness programs and affordable housing SB912 would require $2 billion in funding be allocated from the General Fund to the Department of Housing and Community Development to assist in the new construction, rehabilitation, and preservation of permanent and transitional rental housing and address homelessness, particularly homelessness among members of vulnerable populations. Source of Funding: State General fund. I Page 20 Financial Modeling A financial model was developed based on the estimated need of 2,700 units of supportive housing that would be financed over six years (and produced over a seven year period), maximizing the range of capital and operating resources outlined above. This financial model is a projection of how these developments may be financed over time and is based on current estimates and assumptions. A financial model is useful in describing the general assumptions about what it will take in terms of both time and resources to develop the number and types of units projected, however, it is certain that the results will vary greatly depending on resource availability. The model should be re-evaluated, updated and revised on a regular basis as projects are funded and new funding resources become available. Modeling Considerations The table below outlines the Development Costs for the 2,700 supportive housing unit goal. The capital funding commitments are assumed over a six year timeframe as the funding must be committed to projects at least one year prior to the project opening in order to take into account time to develop the project. Table E: Supportive Housing Unit Goal - Development Costs per Unit: Housing Development Costs Per Unit 2.5% annual escalator 2019 2020 2021 2022 2023 2024 Supportive Housing Single Adults- $ 300,000 $ 307,500 $315,188 $ 323,067 $ 331,144 $ 339,422 Acquisition/Rehabilitation Single Adults - New $ 375,000 $ 384,375 $ 393,984 $ 403,834 $ 413,930 $ 424,278 Construction Supportive Housing - Families: $ 350,000 $ 358,750 $ 367,719 $ 376,912 $ 386,335 $ 395,993 Acquisition/Rehabilitation Supportive Housing - Families: $ 425,000 $ 435,625 $ 446,516 $ 457,679 $ 469,120 $ 480,848 New Construction Total Supportive Housing Development Costs (2,700 units) _ $ 930,000,000 Page 21 Financial Model — Capital Resources The following tables outline a very high level financial model which identifies potential sources of capital resources required to generate 2,700 units of supportive housing, with funding commitments made over the next six years (and units produced over seven years), along with the funding gap to achieve that goal. It is important to note as outlined above, that Orange County will need to identify a significant source of rental/operating subsidies as well as innovative strategies to provide effective services in supportive housing, discussed below. Table F: Capital Financing By Year: Capital FinancingBy Year Dedicated to Supportive Housing Developments Financin Commitments b Year 2019 2020 2021 2022 2023 2024 Local Financing — $34,200,000 $5,700,000 $5,700,000 $5,700,000 $5,700,000 $5,700,000 $5,700,000 HOME' Local Financing (all jurisdictions) — Year $39,600,000 $6,600,000 $6,600,000 $6,600,000 $6,600,000 $6,600,000 $6,600,000 2 of SB2 funding Local City/County $12,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Pro erties2 Housing Successor Funds (all $45,000,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 jurisdictions 9% Low Income Housing Tax $48,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 Credits3 4% Low Income Housing Tax $120,000,000 $20,000,000 $20,000,000 $20,000,000 $20,000,000 $20,000,000 $20,000,000 Credits4 Local MHSA Housing/Special $70,000,000 $11,666,667 $11,666,667 $11,666,667 $11,666,667 $11,666,667 $11,666,667 Needs Housing Program' No Place Like $48,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 Home MHSA 6 VHHP (Prop 41)7 $11,250,000 $2,250,000 $2,250,000 $2,250,000 $2,250,000 $2,250,000 AHSC' $4,500,000 $1,500,000 $1,500,000 $1,500,000 Mortgage/Bonds9 $132,000,000 $22,000,000 $22,000,000 $22,000,000 $22,000,000 $22,000,000 $22,000,000 Other Sources (e.g. Deferred Developer $12,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Fee; AHP; etc. Total (all sources) $576,550,000 $97,216,66T $95,716,667 $97,216,667 $95,716,66T $97,216,66T ; $93466,667 Total Needed to $930,000,000 $135,625,000 $139,015,625 $122,791,797 $125,861,592 $129,008,132 $277,053,586 reach unit oafs: Capital Gap: $(353,450,000) $(38,408,333) $(43,298,958) $(25,575,130) $(30,144,925) $(31,791,465) $(183,586,919) Page 22 Assumptions 1 Based on HOME allocation estimate for all jurisdictions 2 Based on 8 sites identified for supportive housing 3 Based on maximum estimated annual dollars available for Supportive Housing in Orange County 4 Based on 30% of per unit cost and estimated production capacity 5 Based upon projections of local MHSA Housing/Special Needs Housing Program funds 8 Based upon an estimated up to $65M in NPLH for Orange County projects. This assumes 213 of NPLH funds are invested as capital for the development of units and 113 of the funds will be committed as Capitalized Operating Subsidy Reserve. 7 Based upon 3% of five additional rounds of $75M per year 8 Based upon maximum projected available funding for SH projects (e.g. one project every other year) 9 Based on 30% of total unit cost for 4% units and 15% for 9% The following table highlights the source of funds listed above, the potential amount of funds that are available, and level of government that manages and administers those funds. Table G: Funding Source and Administering Level of Government — 2019 to 2024 Source City County State Private Investment $30 Million $4.2 Million Local Financing: HOME Up to $30 Million (all county HOME available based on funding will be FFY17 HOME dedicated) allocation Local Financing: SB2 — Year 2 (Anticipating approx $13 Million/year to ✓ ✓ Orange County region for shelter & $36 Million $3.6 Million housing, including navigation centers. Estimates % of funds dedicated to SH) (Up to $45 Million `/ Housing Successor Funds available based on (County has $1 Million current estimates of in available funds) available funds Local City/County Properties ✓ ✓ 9% Low Income Housing Tax Credits ✓ 4% Low Income Housing Tax Credits ✓ Local MHSA Housing/Special Needs ✓ Housing Program $7 Million ✓ No Place Like Home (MHSA) NPLH non-competitive Up to $65 Million estimated allocation (competitive) VHHP (Prop 41) AHSC Mortgage/Bonds J Page 23 Mitigating the Financing Gap A number of sources of capital funding may become available in 2018 as the legislature contemplates a variety of funding sources to address homelessness and the electorate will consider several key propositions in the fall. These include significant potential funding sources such as: • SB3: the Veterans and Affordable Housing Bond Act of 2018 (described above). SB3 could potentially bring $300 Million in capital funding to supportive and affordable housing developments in Orange County. • State Budget request: local, county and state legislators have all identified the critical need to address the crisis of homelessness in California. A range of significant budget requests are under consideration in May 2018 that would dedicate a portion of the $9 billion state budget surplus towards addressing homelessness. A budget request is expected to be finalized by June 30, 2018 and it is anticipated that a portion of these funds could be committed to supportive and affordable housing in Orange County. Another approach could be to identify a source of local funding for supportive and affordable housing that would serve as a critical resource in meeting the need to create 2,700 units of supportive housing dedicated to people experiencing homelessness with disabling health conditions. A local funding source could be in the form of a local housing trust fund and a dedicated local revenue source. The availability of local financing for supportive and affordable housing will have a significant impact on the potential feasibility of projects throughout the Orange County region. I Page 24 Financing Modeling — Operating/Rental Subsidies Supportive housing tenants have extremely low incomes and often receive Social Security Income as their only source of income. This means that tenants do not have sufficient income to afford the rent of a "typical' affordable housing development. Supportive housing projects must receive operating income that covers the costs of operating supportive housing. In order to meet this need, projects pursue commitments of Project Based Section 8 vouchers that enable the supportive housing tenant to pay 30% of their income towards the rent payment. The table below outlines the projected availability of Project Based Section 8 subsidies that could be committed to supportive housing projects, representing 2,700 supportive housing units. Tahlp {-I- Rpntal Suhsidv Summary and Gan: Rental Subsidy Summary 2019 2020 2021 2022 2023 2024 2025 Total Rental Subsidy Need 450 450 390 370 370 370 300 2,700 Project -Based Section 8 (needed for SH units) 200 200 150 150 150 150 150 1,150 Capitalized Operating Subsidy Reserve COSR - MHSA Project 25 25 25 25 25 25 25 175 Total (Gap) -225 -225 -215 -195 -195 -195 -125 -1,375 Assumptions: PBS8 estimated at 150/year across all Housing Authorities in Orange County, plus 50 HUDNASH Vouchers/year in 2019 and 2020, and 1/3 of No Place Like Home funds will be committed as COSR. Operating/Rental Subsidy Gap: There is a clear need for additional operating/rental subsidies to successfully develop 2,700 units of supportive housing in Orange County. Outlined above, there is a current estimated gap of 1,375 rental/operating subsidies for supportive housing units. Based on the estimated operating subsidy commitments required for these projects to be financially feasible, the projected operating/rental subsidy gap is estimated at approximately $350 Million over the minimum 15 year timeframe required for operating commitments. It will be important to plan for the exhaustion of any locally funded operating/rental subsidy at year 15, such as committing Project Based Section 8 vouchers to projects over that 15 year period in order to ensure the ongoing financial feasibility of the projects. Page 25 Total Gap: Capital and Rental/Operating Funding In planning to create 2,700 units of supportive housing over seven years, there is a funding "gap" estimated at $703 Million (representing $353 Million in funding needed for capital expenses to develop the properties and $350 Million in rental/operating subsidies to ensure the supportive housing units are affordable to people with histories of homelessness), along with an additional gap in resources to provide services in supportive housing. There is a potential significant future funding (e.g. SB3 and California budget surplus request) that could become available to finance supportive and affordable housing in Orange County. These are the critical resources required to generate a pipeline of supportive housing in Orange County that meets the level of need across the region. There will need to be significant planning regarding the services required to meet the health and behavioral health needs of supportive housing tenants while also supporting their residential stability and ensuring they do not return to homelessness. Page 26 Opportunities This HF Strategy identifies a significant goal of producing 2,700 units of supportive housing (plus the need for an additional 2,700 affordable housing options for people experiencing homelessness). In working to achieve those goals, it is important to take advantage of the following opportunities: • Enable a broad approach to development strategies, including hotel/motel conversions that may be able to generate units in a shorter timeframe. • Identify properties that are appropriate for acquisition/rehabilitation across the region. • Explore creative approaches to expanding housing options, such as exploring zoning and planning alternatives that could be implemented to expand housing options for people experiencing homelessness. • Maximize partnerships with the private sector interested in addressing homelessness. • Identify opportunities to address housing needs regionally, aligning resources with and among cities. • Maximize funding and policy opportunities presented through the recently passed Housing Package at the state level. • Establish new services and housing partnerships designed to support people with histories of homelessness in housing. • Implement a strategic approach to prioritize housing resources for those experiencing homelessness in Orange County by ensuring direct access through the Continuum of Care regional Coordinated Entry System. The Coordinated Entry System is now integrated within the Homeless Management Information System software, to ensure effective response coordination of regional efforts. Challenges There are significant challenges that must be addressed in order to meet the unit goals for the region. Creative solutions are needed to address the following challenges which pose barriers to creating supportive and affordable housing in Orange County. • Significant funding gaps in capital, operating and services resources. • Specific concerns regarding the status of federal funding for Section 8 vouchers as well as funding for services though mainstream programs. • Impact of recent tax reform on the value of investing tax credits in affordable and supportive housing, creating an additional funding gap. • Neighborhood opposition ("Not In My Backyard") to affordable and supportive housing projects. Page 27 Recommendations & Next Steps A variety of strategies and approaches can be implemented in Orange County to work towards the goals outlined in this plan. The following recommendations are specific steps that can be taken that will enable progress towards the HF Strategy's goals. • Work with 34 cities to align regional policies to prioritize supportive housing for local and regional resources, including existing funding sources as well as new funding opportunities. • Explore the possibility of creating regional housing funds that can be invested in supportive and affordable housing projects collaboratively. • Collaborate across all four housing authorities in the region to increase the availability of Project Based Section 8, a critical resource in supportive housing development. • Identify land that can be used for development across the region (in partnership with cities). • Proactively plan with 22 CDBG partners in the region who will be receiving 5132 funding as the impact of the funds will be maximized if the local CDBG jurisdictions align their priorities for investing this significant new source in solutions to homelessness, and dedicate at least 50% of the funding to supportive and affordable housing. • Address the gap in funding needed by exploring a local source of supportive/affordable housing funding. • Given the County investments in the creation of housing for homeless populations in this initiative, housing referral preference will be given to the Orange County Continuum of Care Coordinated Entry System, for homeless persons who meet project specific eligibility criteria and are prioritized within the Service Planning Area of the projects location. I Page 28 Appendices Definitions References Definitions Chronically Homeless Family A chronically homeless family is defined as a household with at least one adult and one child under the age of 18, or a minor Head of Household under the age of 18 and minimum of one child. The Head of Household must meet the definition of a chronically homeless person (see below). Chronically Homeless Individual An unaccompanied individual who: (i) is homeless and lives or resides in a place not meant for human habitation, a safe haven, or in an emergency shelter; (ii) has been homeless and living or residing in a place not meant for human habitation, a safe haven, or in an emergency shelter continuously for at least 1 year or on at least 4 separate occasions in the last 3 years where total time homeless sums to at least 1 year; and (iii) has an adult head of household (or a minor head of household if no adult is present in the household) with a diagnosable substance use disorder, serious mental illness, developmental disability (as defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002)), post-traumatic stress disorder, cognitive impairments resulting from a brain injury, or chronic physical illness or disability, including the co -occurrence of 2 or more of those conditions, which prevent them from holding a job or living in stable housing. A person who currently lives or resides in an institutional care facility, including a jail, substance abuse or mental health treatment facility, hospital or other similar facility, and has resided there for fewer than 90 days shall be considered chronically homeless if such person met all of the requirements described above prior to entering that facility. Coordinated Entry System Coordinated Entry System is designed to coordinate program participants' intake assessments based on a system -wide acuity prioritization that targets resources to match client needs. In Orange County, the Coordinated Entry System consists of regional resource HUBS within three Service Planning Areas: North, Central and South County regions. It is easily accessed by individuals and families seeking services and housing, and includes coordinated among service providers utilizing a standardized approach to targeting resources to meet needs of those experiencing homelessness in the jurisdiction. Literally Homeless (Category 1 HUD definition): (1) Individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: (i) Has a primary nighttime residence that is a public or private place not meant for human habitation; (ii) Is living in a publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state and local government programs); or (iii) Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution References Orange County Affordable Housing Strategic Plan 2015. Seeger, J. (2017, June 9). State Income Limits for 2017. Retrieved from Department of Housing and Community Development: http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal- income-limits/docs/inc2k17.pdf United States Department of Housing and Urban Development. (2017). FY2017Income Limits Summary. Retrieved from FY 2017 Income Limits Documentation System: https://www. h uduser.gov/portal/datasets/il/i l2017/2017su m ma ry.odn?states=6.0&data=2017&input name=M ETRO31080M M5945 *0605999999 % 2BOrange+County&stname=Ca i iforn is&statefp=06&yea r =2017&selection_type=county United States Department of Housing and Urban Development. (n.d.). Affordable Housing. Retrieved from HUD.GOV: https://www.hud.gov/program_offices/comm_planning/affordablehousing/ ORANGE COUNTY BOARD OF SUPERVISORS MINUTE ORDER March 12, 2019 SubmittingAgeencv/Department.• OC COMMUNITY RESOURCES Approve Orange County Housing Finance Trust Joint Powers Authority Agreement; and receive and file draft bylaws to facilitate the establishment of the Orange County Housing Finance Trust to provide and receive funds for housing the homeless population and persons and families of low income under certain conditions- All Districts Thefollowing is action taken by the Board of Supervisors: APPROVED AS RECOMMENDED ® OTHER ❑ Unanimous ® (1) DO: Y (2) STEEL: Y (3) VACANT: (4) CHAFFEE: Y (5) BARTLETT: Y Vote Key: Y=Yes; N=No; A Abstain; X=Excused; B. O. =Board Order Documents accompanying this matter: ❑ Resolution(s) O Ordinances(s) ❑ Contract(s) Item No. S22C Special Notes: Copies sent to: I certify that the foregoing is a true and correct copy of the Minute Order adopted by the Board of Supervisors, Orange County, State of California. Robin Stieler, Clerk of the Board By: Deputy March 7, 2019 To: From: Subject: County Executive Office Memorandum Clerk of the Board of Supervisors ' 1 Frank Kim, County Executive Officer Exception. to Rule 21 The County Executive Office is requesting a Supplemental Agenda Staff Report for the March 12, 2019, Board Hearing. Agency: OC Community Resources Subject: Orange County Housing Finance Trust joint Powers Authority Agreement Districts: All Districts Reason for supplemental: This item needs to go to the Board as a supplemental item to advance the progress made from the collaborative efforts of Orange County cities and the County of Orange towards the financing and continued development of supportive and affordable housing. This Agenda Staff Report and attachments were finalized after the filing deadline to the Clerk of the Board. Concur: Chairwoman Lisa A. Bartlett, Supervisor, Fifth District cc: Board of Supervisors County Executive Office County Counsel Agenda Item p� Clerk's Use Only U. MEETING DATE: SUPPLEMENTAL AGENDA ITEM AGENDA STAFF REPORT 3/12/19 LEGAL ENTITY TAKING ACTION: Board of Supervisors BOARD OF SUPERVISORS DISTRICT(S): All Districts SUBMITTING AGENCY/DEPARTMENT: OC mm i Resources DEPARTMENT HEAD REVIEW: bepAaoentfread Sign ature DEPARTMENT CONTACT PERSON(S): Dylan Wright (714) 480-2788 Julia Bidwell (714) 480-2991 SUBJECT: Orange County Housing Finance Trust Joint Powers Authority Agreement CEO CONCUR COUNTY COUNSEL REVIEW CLERK OF THE BOARD A Discussion -� Action 3 Votes Board Majority C Signature County Counsel Signature Budgeted: N/A Current Year Cost: N/A Annual Cost: N/A Staffing Impact: N/A # of Positions: N/A Sole Source: N/A Current Fiscal Year Revenue: N/A Funding Source: N/A County Audit in last 3 years: No Prior Board Action: 6/12/2418 #S2A, 6/12/2018 #1 RECOMMENDED ACTION(S) 1. Approve the Orange County Housing Finance Trust Joint Powers Authority Agreement and delegate authority to the Chairwoman or her designee to sign and execute the Agreement upon the approval and signature of three cities within the Orange County within 12 months of this Agreement's approval by the Board of Supervisors. 2. Receive and file the draft bylaws, which are subject to formal adoption by the Orange County Housing Finance Trust's Board of Directors following its creation through the execution of the Orange County Housing Finance Trust Joint Powers Agreement by the County and three cities. SUMMARY: Approving the Orange County Housing Finance Trust Joint Powers Authority Agreement and receiving the draft bylaws will facilitate the establishment of the Orange County Housing Finance Trust to provide and receive funds for housing for the homeless population and persons and families of extremely low, very low and low income within the County of Orange. " Page 1 public and private financing and funds. This Agreement allows OCHFT to consider the issuance of debt in the future through amendments to the Agreement. The Agreement also preserves certain powers for the participating parties. The Agreement does not authorize OCHFT to do any of the following: (1) regulate land use in cities or in the unincorporated area of the County; (2) serve as an owner or operator of housing units, (3) levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition for approval of a development project; (4) require or incentivize inclusionary zoning requirements; (5) require the Parties to this Agreement to dedicate or assign funding far any OCHFT obligations or programs; (6) approve a housing project or program that is not supported by the governing body of the jurisdiction (a City or the County) in which the project is proposed to be sited; or (7) require the Parties to this Agreement to accept or provide any number of housing units as a prerequisite to joining or remaining a member of the OCHFT. The Agreement establishes a governing board comprised of two members of the Board of Supervisors, two county -wide elected officials and five city council members. FINANCIAL IMPACT: NIA STAFFING IMPACT: NIA ATTACHMENTS): Attachment A - Orange County Housing Finance Trust Joint Powers Authority Agreement Attachment B — Orange County Housing Finance Trust Joint Powers Authority Bylaws Attachment C — Assembly Bill 448 Attachment D - Section 50093 of the Health and Safety Code Page 3 i a. vs THIS INSTRUMENT IS A CORRECT COPY OF i' THE ORIGINAL ON FILE IN THIS OFFICE ig `4 AL ATTEST (DATE:) CLEPK OF THE R)ARL) ROBIN STIELERAivQ�uE Y CLERK OF THE BOARD JOINT EXERCI AGREEMENT THIS JOINT EXERC SE OF POWERS AGREEMENT (the "Agreement") is made this&"ay of` ilu1 , 2019 (the "Effective Date"), by and between the following public entities (collectively, the "Parties"): . and (collectively, the "Cities") and the COUNTY OF ORANGE (the "County"). RECITALS A. The Parties are responsible for the health and safety of the residents within their geographic boundaries. B. Each Party has the individual power to implement affordable housing projects and programs generated within its jurisdictional boundaries, as well as to create and issue development agreements for such activities. C. The parties find it in their mutual economic interest to address work force housing, affordable housing, and supportive housing issues on a regional level. D. A countywide adequate supply of housing will provide social and economic benefits to residents and taxpayers of the parties. E. The Parties desire to act in the public interest to lessen the burden of government by reducing the need for each party to act individually, and to provide charitable support for affordable housing in Orange County. F. California Government Code section 6500 et seq. ("Joint Exercise of Powers Act" or "Act") permits two or more public agencies to create joint powers authorities for the purposes cited herein, and permits the agencies to exercise jointly any power that the public agencies could exercise separately, and further grants certain additional powers to such joint powers authorities. G. California Government Code section 6539.5 authorizes the County of Orange and any of the cities within the County of Orange to create a joint powers agency known as the Orange County Housing Finance Trust ('OCHFT'), which may do any of the following: (1) fund the planning and construction of housing of all types and tenures for the homeless population and persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing; and (2) receive public and private financing and funds. H. California Government Code section 6539.5 also authorizes the parties to a joint powers agreement, which is executed pursuant to its provisions, to grant OCHFT the power to authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by OCHFT. However, at this point in time, it is the consensus of the Parties to the Agreement not to grant OCHFT the power to authorize and issue bonds or other debt instruments. This Agreement may be amended in the future to grant OCHFT the power to issue bonds or other debt instruments. J. Local land -use decisions remain solely with each party. Nothing in this Agreement deprives any party of its sovereign powers with respect to land -use or transfers such powers to the joint powers authority. NOW, THEREFORE, in consideration of the mutual promises set forth below, the parties agree as follows: Section 1. Creation and Purpose. (a) Creation of OCHFT. Pursuant to the Joint Exercise of Powers Act, including Section 6539.5 of the Government Code, there is hereby created a public entity to be known as, the "Orange County Housing Finance Trust." OCHFT shall be a public entity separate and apart from the Parties, and shall administer this Agreement. (b) Purpose. This Agreement is made pursuant to the Joint Powers Act for the purpose of creating OCFHT as a public entity separate from the Parties to: (i) exercise Common Powers with respect to providing funding for the planning and construction of housing of all types and tenures for the homeless population and persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing; and (ii) receive public andprivate financing and funds. The purpose of this Agreement shall be accomplished and common powers exercised in the manner set forth in the Agreement. Nothing contained in this Agreement shall preclude the Parties from establishing, maintaining or providing social programs or services to its residents as it deems proper and necessary. Section 2. Term and Termination. (a) Term. This Agreement shall become effective, and OCHFT shall come into existence, on the Effective Date, and this Agreement shall thereafter continue in full force and effect until terminated pursuant to subdivision (b) of this section. . (b) Termination. This Agreement may be terminated by agreement of the Parties. Upon termination of this Agreement, OCHFT shall be dissolved and, after payment or provision for payment of all liabilities, the assets of OCHFT shall be distributed to the Parties in proportion to the contributions of each Party to OCHFT and the amounts paid by each Party in connection with OCHFTs activities. Section 3. Powers and Duties of OCHFT. (a) General Powers. OCHFT shall have all the powers common to the Parties to this Agreement necessary or convenient, specified or implied, to accomplish the purpose of this Agreement as set forth in Section 1, subject to the restrictions set forth in Section 3, subdivision (c) below. Said powers shall be exercised in the manner provided in the Joint Exercise of Powers Act and, except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are unposed upon the Parties in the exercise of similar powers. (b) Specific Powers. Without limiting the generality of the powers conferred in subdivision (a) of this Section 3, OCHFT is hereby authorized, in its own name, to do all of the acts necessary or convenient to the accomplishment of the 2 purposes of this Agreement and the full exercise of the powers conferred in subdivision (a) of this Section 3, including but not limited to the following: (1) to make and enter into contracts; (2) to contract for staff assistance; (3) to sue and be sued in its own name; (4) to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States of America or of the State of California; (5) to invest any money in the treasury pursuant to Section 6505.5 of the Joint Powers Act that is not required for the immediate necessities of OCHFT, as OCHFT determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code; (6) to apply for letters of credit or other forms of financial guarantees in order to enter into agreements in connection therewith; (7) to carry out all the provisions of this Agreement; (8) to purchase obligations of any Party; (9) to engage the services of private consultants to render professional and technical assistance and advice in carrying out the purposes of this Agreement; (10) to employ and compensate counsel including bond counsel: financial consultants, and other advisers determined appropriate by OCHFT in the accomplishment of the purposes of this Agreement; (11) to contract for engineering, construction, architectural, accounting, environmental, land use, or other services determined necessary or convenient by OCHFT in connection with the accomplishment of the purposes of this Agreement; (12) for the purposes of enforcing affordable housing covenants or holding security interests for loans, to take title to, and transfer, sell by installment sale or otherwise, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which OCHFT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement; (13) for the purposes of renting space for OCHFT to operate, to lease to, and to lease from, a Party or any other person or entity lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which OCHFT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement; (14) to solicit charitable contributions from private sources; 3 (15) to propose amendments to this Agreement, including amendments that would allow OCHFT to authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by OCHFT; and (16) to exercise any and all other powers as may be provided for OCHFT in the Joint Powers Act or any other applicable law. (c) Limitation on Powers. Neither this Agreement nor section 6539.5 of the Government Code authorize OCHFT do any of the following: (1) regulate land use in Cities or in the unincorporated area of the County; (2) serve as an owner or operator of housing units; (3) levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition for approval of a development project; (4) require or incentivize inclusionary zoning requirements; (5) require the Parties to this Agreement to dedicate or assign funding for any OCHFT obligations or programs; (6) approve a housing project or program that is not supported by the governing body of the jurisdiction (a City or the County) in which the project is proposed to be sited; or (7) require the Parties to this Agreement to accept or provide any number of housing units as a prerequisite to joining or remaining a member of OCHFT. Section 4. Members The members of OCHFT shall be the parties to this Agreement who have not withdrawn from OCHFT, and such other parties as may join OCHFT after execution of this Agreement. New members may join on the terms and conditions set forth in Section 10 hereof. Only the County of Orange and cities within the County of Orange may be a party to this Agreement and a member of OCHFT. Section 5. Board of Directors (a) Selection of Directors. OCHFT shall be governed by a Board of Directors consisting of nine Directors selected as follows: (1) Two members of the Board of Supervisors of the County of Orange selected by the Board of Supervisors. (2) Two countywide elected officials selected from the following six Orange County elected officials: Assessor, Auditor -Controller, Clerk -Recorder, District Attorney -Public Administrator, Sheriff -Coroner, and the Treasurer Tax - Collector by the Board of Supervisors of the County of Orange. 4 (3) One city council member for the city member with the greatest population in the North Region Service Planning Area as depicted in Exhibit A. (4) One city council member for the city member with the greatest population in the Central Region Service Planning Area as depicted in Exhibit A. (5) . One city council member for the city member with the greatest population in the South Region Service Planning Area as depicted in Exhibit A. (6) Two city council members who are each selected from member cities, which are not already represented on the Board of Directors. The selection of these Directors shall be made by a City Selection Committee from votes cast on a one -city -one -vote basis by representatives of the city members that are not already represented pursuant to Section 5, subdivisions (a)(3), (g)(4) and (a)(5). (b) Board Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of OCHFT shall be -vested in and exercised by and its property controlled and its affairs conducted by the Board of Directors. (c) Advisory Board. In accordance with OCHFT's bylaws, the Board of Directors may convene an ex officio advisory board that may include a public member, city managers or assistant city managers, the County Executive Officer, a representative from law enforcement, and a representative from a housing authority. (d) Compensation. Members of the Board shall serve without compensation but shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a Director. Any obligation to pay expenses pursuant to this paragraph shall be a charge against any unencumbered funds of OCHFT available for the purpose. (e) Meetings of the Board of Directors. (1) Call. Notice and Conduct of Meetings. All meetings of the Board of Directors, including without limitation, regular, adjourned regular, special meetings and adjourned special meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act. (2) Regular Meetings. Regular meetings of the Board of Directors shall be held at such dates and times as the Board may fix by resolution from time to time. If any day so fixed for a regular meeting shall fall upon a legal holiday, then such regular meeting shall be held on the next succeeding business day at the same hour. No notice of any regular meeting of the Board of Directors need be given to the individual Directors. (3) Special Meetings. Special meetings of the Board of Directors shall be held whenever called by the Chairperson of the Board or by a majority of the Directors. (4) Quorum. A majority of the seated members of the Board of Directors shall constitute a quorum at any meeting of the Board except that less than a quorum may adjourn a meeting to another time and place. Every act or decision done or made by a majority of the Directors present at any meeting at which a quorum is present shall be the act of the Board of Directors. (5) Minutes. The Board of Directors shall keep minutes of all regular, adjourned regular, and special meetings, and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Director and to the Parties. (6) Officers. The Board of Directors shall elect a chairperson and a vice chairperson from among its members at the first meeting held in each fiscal year. In the event that the chairperson or vice chairperson so elected ceases to be a Director, the resulting vacancy shall be filled at the next regular meeting of the Board of Directors held after such vacancy occurs or at a special meeting called for that purpose. In the absence or inability of the chairperson to act, the vice chairperson shall act as chairperson. The chairperson, or in the chairperson's absence, the vice chairperson, shall preside at and conduct all Board of Director's meetings. (7) Rules and Regulations. The Board of Directors may adopt, from time to time, by resolution, such rules, regulations and bylaws for the conduct of its meetings and affairs as the Board determines is necessary or convenient. Section 6. Additional Officers and Employees (a) Officers and Contract Staff. (1) OCHFT may contract with a Party to this Agreement for officers and staff pursuant to Section 6, subdivision (d), or retain independent contractors, agents, or volunteers as the Board of Directors may deem necessary to carry out any of OCHFT's powers, upon such terms and conditions as the Board may require,. including the retaining of professional and technical assistance, provided that adequate funds are available in OCHFT's budget and are appropriated by OCHFT therefore. (2) None of the officers, agents or staff, if any, directly contracted by OCHFT shall be deemed, by reason of their roles or duties or contracted status, to be employed by the Parties. (b) Treasurer and Auditor/Controller. Pursuant to Government Code Sections 6505.5 and 6505.8, the Board of Directors shall appoint an officer or employee of OCHFT, an officer or employee of a public agency that is a Party to this Agreement or a certified public accountant to hold the offices of treasurer and auditor for 0 CHFT. Such person or persons shall possess the powers of and shall perform the treasurer and auditor functions for OCHFT required by Sections 6505, 6505.5 and 6505.6 of the Government Code, including any subsequent amendments thereto. Pursuant to Government Code Section 6505.1, the auditor and treasurer shall have charge of certain property of OCHFT. The treasurer and auditor shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of OCHFT. The treasurer and auditor of OCHFT shall be required to file an official bond with the Board of Directors in an amount, which shall be established by the Board. Should the existing bond or bonds of any such officer be extended to cover the obligations provided herein, said bond shall be the G official bond required herein. The premiums on any such bonds attributable to the coverage required herein shall be an appropriate expense of OCHFT. (c) Attorney_ The Board of Directors shall have the power to appoint one or more legal advisors to OCHFT who shall perform such duties as may be prescribed by the Board. The County Counsel of the County shall be OCHFT's counsel unless and until the Board of Directors appoints other counsel to serve such function. (d) Administrative Services and Reimbursement of Costs. (1) The Board of Directors may contract with a Party to this Agreement to provide necessary administrative services to OCHFT, including the services described in Section 6, subdivisions (a), (b) and (c). The amount charged by the Party to provide such services to OCHFT shall be fixed by agreement between the Board of Directors and the governing board of the Party providing such services. In the absence of an agreement on costs, the Party providing services to OCHFT under this Section 6 may charge OCHFT the amounts necessary to recover the direct and indirect costs of such services. (2) If OCHFT contracts with a Party to this Agreement to provide OCHFT with administrative services through persons who are employees and officers of the Party, then any retirement liabilities associated with that Party's employees and officers shall not constitute a liability of OCHFT or any other Party to this Agreement. This Section 6, subdivision (d)(2), shall not preclude a Party providing administrative services to OCHFT pursuant to a contract with OCHFT from accounting for such salary and benefit costs when negotiating the rates that the Party will charge OCHFT for providing such services. Section 7. Financial Provisions (a) Fiscal Year. The Fiscal Year of OCHFT shall, unless and until changed by the Board of Directors, commence on the 1st day of July of each year and shall end on the 30th day of June of the next succeeding year except that the initial Fiscal Year of OCHFT shall commence on the effective date of this Agreement and end on the immediately following 30th day of June. (b) Budget. (1) General Budget. Within one hundred and twenty days (120) after the first meeting of the Board of Directors, a general budget for the first fiscal year shall be adopted by the vote of a majority of all of the Directors. The budget shall distinguish between administrative costs (i.e., the cost of operating OCHFT) and Program costs (i.e., the financing of the programs funded or sponsored by OCHFT). Thereafter, at or prior to the last meeting of the Board of Directors for each fiscal year, a general budget shall be adopted for the ensuing fiscal year or years by a vote of at least a majority of all of the Directors of the Board. (2) Expenditures for the Approved Budzet_ The payment of all OCHFT obligations is limited to the amount of appropriations allowed in OCHFT's approved budget, except as it may be revised with the approval of a majority of all of the Directors of the Board of Directors. 7 (c) Contributions by the Parties. (1) Administrative Cost Contributions. The County shall be responsible for 0CHFT's administrative costs for one year following the creation of OCHFT. After this initial year, and in consideration of the mutual promises contained herein, the Parties agree that they shall make annual contributions towards the budgeted administrative costs of OCHFT in accordance with a cost allocation formula to be approved by the Board of Directors. By unanimous vote, the Board of Directors may waive a parties' contribution toward OCHFT's administrative costs. A Party's contribution to OCHFT's administrative costs shall be in the form of money, unless the Board approves another form of contribution such as services, personal property or use of real or personal property, or other in- kind contributions. The acceptance and valuation of any such non -monetary contributions shall be as determined by the Board. (2) Program Cost Contributions_ The particular programs and program budget, funded, sponsored or operated by OCHFT, as well as the level of, and mechanisms for, the involvement of OCHFT and each Party, in such programs and program budget, shall be determined and approved by the Board of Directors. A Party's individual contribution, involvement and role in any particular program or the budgeted program costs shall be as may be mutually agreed between the Party and OCHFT. (d) Accounts and Reports. (1) Books and Records. There shall be strict accountability of all OCHFT funds and accounts and report of all OCHFT receipts and disbursements. Without limiting the generality of the foregoing, OCHFT shall establish and maintain such funds and accounts as may be required by good accounting practice. The books and records of OCHFT shall be open to inspection at all reasonable times by each Party and its duly authorized representatives. (2) Annual Audit. The person appointed by the Board of Directors to perform the auditor function for OCHFT shall cause an annual independent audit of the accounts and records of OCHFT and records to be made by a certified public accountant or firm of certified public accountants in accordance with Government Code section 6505. Such audits shall be delivered to each Party and shall be made available to the public. (3) Annual Financial Report. Pursuant to section 6539.5 of the Government Code, OCHFT shall publish an Annual Financial Report that shall describe the funds received by OCHFT and the use of such funds by OCHFT. The Annual Financial Report shall describe how the funds received by OCHFT have furthered the purpose of OCHFT. (e) Funds. Subject to the applicable provisions of any instrument or agreement which OCHFT may enter into, which may provide for a trustee or other fiscal agent to receive, have custody of and disburse OCHFT funds, the person appointed by the Board of Directors to perform the treasurer function for OCHFT shall receive, have the custody of and disburse OCHFT funds as nearly as possible in accordance with generally accepted accounting practices, shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement. 8 Section 8. Amendments and Additional Parties. (a) This Agreement may not be amended or modified except by a vote of two-thirds of all of the Parties through formal action approving such an amendment by the Parties' respective governing bodies. (b) No addition to, or alteration of, the terms of this Agreement, whether by written or oral understanding of the parties, their officers, employees or agents, shall be valid or effective unless made' in the form of a written amendment which is formally adopted and executed by the Parties in the same manner as this Agreement. Section 9. Non -Liability for Obligations of OCHFT. The debts, liabilities and obligations of OCHFT shall not be the debts, liabilities and obligations of any of the Parties or personal debts, liabilities and obligations of the Directors, officers or employees of OCHFT,; provided that a Party may, by an agreement separate from this Agreement: contract for, or assume responsibility for, specific debts, liabilities, or obligations of OCHFT. Section 10. Admission and Withdrawal of Parties (a) Admission of New Parties. It is recognized that additional parties other than the original parties, may wish to join OCHFT. The County of Orange and any Orange County city may become a party to OCHFT upon such terms and conditions as established by the Board of Directors. An Orange County city shall become a party to OCHFT by the adoption by the city council of this Agreement and the execution of a written addendum thereto agreeing to the terms of this Agreement and agreeing to any additional terms and conditions that may be established by the Board of Directors. (b) Withdrawal from OCHFT. Parties may withdraw from OCHFT at any time upon their governing board's adoption of a resolution that so states the party's intent to leave OCHFT. The withdrawal of any party, either voluntary or involuntary, unless otherwise provided by the Board of Directors, shall be conditioned as follows: (1) In the case of a voluntary withdrawal, written notice shall be given to OCHFT six months prior to the effective date of withdrawal; and (2) Unless otherwise provided by a unanimous vote of the Board of Directors, withdrawal shall result in the forfeiture of that party's rights and claims relating to distribution of property and funds upon termination of OCHFT as set forth in Section 2 above. Section 11. Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the persons and entities listed herein at the following addresses, or to such other address as may be designated to OCHFT for formal notice: VE (a) County of Orange: Santa Aria, California (b) City of Section 12. Miscellaneous. (a) Section Beadings, The section headings herein are for convenience only and are not to be construed as modifying or governing or in any manner affecting the scope, meaning or intent of the provisions or language of this Agreement. (b) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one and the same Agreement. (c) Lays Governing. This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California. (d) Severability. Should any part, term, portion or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, it shall be deemed severable, and the remainder of this Agreement or the application thereof to other persons or circumstances shall continue to constitute the agreement the Parties intended to enter into in the first instance. (e) Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Parties hereto. - No party may assign any right or obligation hereunder without the written consent of .a majority of the other Parties. IN WITNESS THEREOF, the parties hereto have caused this Agreement to be executed and attested by their duly authorized officers as of the date first above written. Dated: 10 COUNTY OF ORANGE, a political sub 'visi -of the State of California Chairwom of the Board o Sup disors SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THEBOARD Clerk of the Board of Supervisors County of Orange, California NOTICE TO COUNTY OF ORANGE TO BE GIVEN TO: FRANK KIM COUNTY EXECUTIVE OFFICER 10 Civic Center Plaza SANTA ANA, CA 92702-4062 APPROVED AS TO FORM: LEON PAGE COUNTY COUNSEL By: tj Sc -r .ir�� S �r-r w�s� J eY 7 Dated: .[n . c L 0 t 5 11 CITY OF ALISO VIEJO Dated: -11 n / n f By: Ross Chun, Mayor ATTEST: City CI rk [. NOTICE TO CITY TO BE GIVEN TO: City Manager: David A. Doyle City of Aliso Viejo Street Address: 12 Journey, Suite 100 Aliso Viejo, CA 92656 Phone: (949) 425-2510 Fax: (949) 425-3899 APPROVED AS TO FORM: By: S c�tf-r City Attorney Orange County Housing Finance Trust — Joint Powers Agreement Signature Page Dated: 10 12-& 12-0) 5 ATTEST: �7� - l� n The s, ity Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: Chris Zapata City of Anaheim 200 S. Anaheim Boulevard, 7th Floor Anaheim, CA 92805 Phone: (714) 765-5165 Fax: (714) 765-5164 APPROVED AS TO FORM: By: Robert Fabela, City Attorney CITY OF ANAHEIM Orange County Housing Finance Trust — Joint Powers Agreement Signature Page Dated: April 9, 2019 ATTEST: O&a 11r --j AK. Adria M. Jimenez, V4C, City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: Jim Vanderpool City of Buena Park Street Address: 6650 Beach Boulevard Buena Park, CA 90621 Phone: 714-562-3550 Fax: 714-562-3559 APPROVED AS TO FORM: By: 4Cr�igsto6phe�r G. Cardinale City Attorney CITY OF LN Orange County Housing Finance Trust — Joint Powers Agreement Signature Page Dated: 6 - 2-1 cl ATTEST: 3t" arfle� City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: City of Q 1(Y� L�SCt� Street Address: 1 `1 F:tLt Y' Dyiye- Phone: g -- 5000 Fax: CITY OF C04a- Me60- Orange County Housing Finance Trust — Joint Powers Agreement Signature Page CITY OF DANA POINT Dated: JOSEPH . MULLER, MAYOR ATTEST: THY KINARD, NOTICE TO BE GIVEN TO: Mark Denny, City Manager City of Dana Point 33282 Golden Lantern Dana Point, CA 92629 APPROVED AS TO FORM: Dated: A) - %3' ZGZ-( ATTEST• Q,4�- Rick Mi er, City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: Rob Houston City of _Fountain valley Street Address: _10200 Slater Ave _Fountain Valley_, CA _92708 Phone: _714-593-4445 Fax: 714-593-4494 APPROVED AS TO FORM: Harper & Burns LLP 0 Colin Burns, City Attorney CITY OF _Fountain Valley r By: _Steve NageL , Mayor_ Orange County Housing Finance Trust - Joint Powers Agreement Signature Page CITY OF FULLERTON Dated: ty I B esus J. Silva. Ma or NOTICE TO CITY TO BE GIVEN TO: City Manager: Kenneth A. Domer City of Fullerton Street Address: 303 E. Commonwealth Avenue Fullerton, CA 92832 Phone: 714-738-6310 Fax: 714-738-6758 'AS TO FORM: -51 Orange County Housing Finance Trust — Joint Powers Agreement Signature Page f Dated: Z? 1 c ATTEST: /f C/ f City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: Scott Stiles City of Garden Grove 11222 Acacia Parkway Garden Grove, CA 92840 Phone: (714) 741-5100 Fax: (714) 741-5044 APPROVED AS TO FORM: By:,- ty Attorne , CITY OF GRDEN GROVE 9t6� By: Steve Jones, Mayor Orange County Housing Finance Trust — Joint Powers Agreement Signature Page CITY OF HUNTINGTON BEACH REVI WED AND APPROVED: City Manager NOTICE TO CITY TO BE GIVEN TO: APPROVED AS TO FORM: City Manager: Oliver Chi City of Huntip.,gton Beach 2000 Main Street Huntington Beach, CA 92648 City Attorney Phone: 714-536-5202 Fax: 714-536-5233 Orange County Housing Finance Trust - Joint Powers Agreement Signature Page COUNTERPART NOTICE TO CITY TO BE GIVEN TO: City Manager: Oliver Chi City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Phone: 714-536-5202 Fax: 714-536-5233 CITY OF HUNTINGTON BEACH REVIEWED AND APPROVED: City Manager APPROVED AS TO FORM: gt/r City Attorne. MVc COUNTERPART Orange County Housing Finance Trust - Joint Powers Agreement Signature Page Dated: Wtqbq(q ATTEST: .t L11clerk ieSwindell, C NOTICE TO CITY TO BE GIVEN TO: JIM SADRO, CITY MANAGER CITY OF LA HABRA 110 E. LA HABRA BLVD. LA HABRA, CA 90631 PHONE: (562) 383-4010 FAX: (562) 383-4474 12 Dated: 4 — /3— ATTEST: 3 — ATTEST: CITY OF LAGUNA BEACH By: John Pietig, C' nager 0 y: Ze�tte Chel, City Clerk NOTICE TO CITY TO BE GIVEN TO: Assistant City Manager Christa Johnson City of Laguna Beach 505 Forest Avenue Laguna Beach, CA 92651 Phone: (949)497-0797 Fax: (949) 497-0771 Phil Kohn, City Attorney Orange County Housing Finance Trust — Joint Powers Agreement Signature Page CITY OF Laguna Hills Dated: August 27, 2019 ` jMavorl Don Sedgwick ATTEST: City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: Don White City of Laguna Hills Street Address: 24035 E1 Thro Road Laguna Hills , CA 92653 Phone: 949-707-2610 Fax: 949-707-2614 APPROVED AS TO FORM: By: City Attorney Orange County Housing Finance Trust - Joint Powers Agreement Signature Page Dated: April 16, 2019 ATTEST: J a I. Laur, Deputy City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: Kristine Ridge City of Laguna Niguel 30111 Crown Valley Parkway Laguna Niguel, CA 92677 Phone: 949-362-4300 Fax: 949-362-4340 APPROVED AS TO FORM: Kevin G. Ennis, Esq.,City Attorney CITY OF LAGUNA NIGUEL Orange County Housing Finance Trust — Joint Powers Agreement Signature Page Dated: ATTEST: Maria Hvizar, City Clerk NOTICE TO CITY TO BE GIVEN TO: City Manager: Debra D. Rose City of Lake Forest Street Address: 100 Civic Center Drive Lake Forest, CA 92880 Phone: 949-461-3400 Fax: 949-461-3511 APPROVED AS TO FORM: By: Matthew Richardson, City Attorney CITY OF LAS FOREST A-�7. t_ By: N•Zi Moatazedi, Mayor Orange County Housing Finance Trust — Joint Powers Agreement Signature Page Resolution No. 2020-16 Page 22 of 22 Dated: S 7 5 ATTEST: Isar n Hammanr ecretary NOTICE TO CITY TO BE GIVEN TO: City Manager: Dennis Wilberg City of Mission Viejo Street Address: 200 Civic Center Mission Viejo, CA 92691 Phone: (949) 470-3051 Fax: (949) 859-1386 APPROVED AS TO FORM: By: - William P. Curley, City At r ey CITY OF MISSION VIEJO F/n' By: Greg Raths, Mayor Orange County Housing Finance Trust — Joint Powers Agreement Signature Page Dated: _ q - ,n ATTEST: NOTICE TO CITY TO BE GIVEN TO: City Manager: 6-trAr g-- City of mzvv MY--,, .-py�IC-1-, Street Address: l Ga n yr i c. C�,r,¢cs- Nfd,vl= r --t I�e��-. , CA 9-2-6(,o Phone: chi /&zw - 3 0 Fax: APPROVED AS TO FORM: By: I 'e,f �--- V 11 .t v l?), S�ii Y7lfff�t Ity Attorney CITY OF 1-0 Orange County Housing Finance Trust - Joint Powers Agreement Signature Page Section 11(b). Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the persons and entities listed herein at the following addresses, or to such other address as may be designated to OCHFT for formal notice: City of Orange Attention: City Manager - 300 E. Chapman Avenue Orange, CA 92866 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written. • «ClW, CITY OF ORANGE, a municipal corporation By: PL 11 �—/ � ga-rk A. Murphy, ATTEST: Pamela Coleman, City Clerk APPROVED AS TO FORM: A Mary E. )Inning Senior Assistant City ATTEST: W&46�w Robert M. McKinnell, City Clerk NOTICE TO CITY TO BE GIVEN TO: City Administrator: Damien R. Arrula City: Placentia Street Address: 401 E. Chapman Ave Placentia, CA 92870 Phone: (714) 993-8117 Fax: (714) 961-0283 APPROVED AS TO FORM: By: / ��` a.— - Ch is Bettenhausen, City Attorney CITY OF PLACENTIA By: Rhonda Shader, Mayor Orange County Housing Finance Trust — Joint Powers Agreement Signature Page CITY OF SAN JUAN CAPISTRANO Dated: � - y: Benjamin Si gel, City Manager ATTEST: 0�� CRY C erk NOTICE TO CITY TO BE GIVEN TO: City Manager: Benjamin Siegel City of San Juan Capistrano Street Address: 32400 Paseo Adelanto, San Juan Capistrano, CA 92675 Phone: (949) 493-1172 Fax: (949) 493-1053 APPROVED AS TO FORM: 1 � - Orange County Housing Finance Trust — Joint Powers Agreement Signature Page ATTEST DAISY GOMEZ CLERK OF THE COUNCIL APPROVED AS TO FORM Sonia R. Carvalho City Attorney RECOMMENDED FOR APPROVAL /} ;G W% teven Z M o Executive Di.� or Community Development Agency 12 CITY OF SANTA ANA Kristine Ridge City Manager Dated: NOTICKTO CITY TO BE GIVEN TO: City Manager:.] T62 City of Sfan Fav►, Street Address: �7700 9a4e,11A CA 7 Z FO Phone: (N) SQD- y-2 R Fax: 0qj yfp-14ry3 APPROVED AS TO FORM: CITY OF STANTON , Im ligFRI t l ix,NEr / ' • Orange County Housing Finance Trust — Joint Powers Agreement Signature Page ( "CITY" DATED: �n� �_ ` CITY OF TUSTIN / BY: APPROVED AS TO FORM BY 9/71�.. _ l ATTORNEYDAVID E. KENDIG, CITY 1 "4,/ ,�t,, CHARLES E. PUCKETT MAYOR ATTEST BY: L � - a�a, ERICA N. YAS A, CITY CLERK 12 CITY OF WESTMINSTER Dated: By: Tri Ta, Mayor ATTEST: ow�— Christine. Cordon, City Clerk NOTICE TO CITY TO BE GIVEN TO: Eddie Manfro, City Manager City of Westminster 8200 Westminster Blvd Westminster, CA 92683 Phone: (714) 548-3172 APPROVED AS TO FORM: B City Attorney Orange County Housing Finance Trust — Joint Powers Agreement Signature Page Orange County Housing Finance Tru st FY 2022-23 Administrative Budget ADMINISTRATIVE REVENUES 21-22 BUDGET 21-22 BUDGET 21-22 As Of 04/30/22 ° /° Est 21-22 06130/22 Est 21-22 06130/22 % GENERAL OPERATING COSTS 22-23 BUDGET REAP Grant $ 310,000 $ - 0% $ 130,000 42% $ 470,000 County of Orange Administrative Grant $ 200,000 $ 200,000 100% $ 200,000 100% $ 200,000 City Memberhip Contribution $ - $ - 0% $ - 0% $ - Local Housing Trust Fund Administrative Grant $ 105,384 $ 21,457 20% $ 99,264 94% $ 341,367 Interest Earned $ - $ 43,386 0% $ 52,000 0% $ 52,000 Carryover funds from previous year $ - $ 207,372 0% $ 207,372 0% $ 188,466 Annual Project Compliance Monitoring Fee $ - $ - 0% $ 4,295 0% $ 19,765 TOTAL ADMINISTRATIVE REVENUES $ 615,384 $ 472,215 77% $ 692,931 113% $ 1,271,598 ADMINISTRATIVE EXPENSES 21-22 BUDGET 21-22 ASO' 04130/22 % Est 21-22 06130/22 % 22-23 BUDGET GENERAL OPERATING COSTS Memberships/Subscriptions/Dues/Website/Email $ 2,500 $ - 0% $ 307 12% $ 1,000 Office Supplies/Mailing/Equipment/Software/Copying/Misc Fees $ 2,000 $ 427 21% $ 427 21% $ 1,500 Conference -Registration Fees/Travel Expenses/Business Meeting $ 4,000 $ - 0% $ - 0% $ 4,000 Insurance (Affiant) (this budget item approved mid -year) $ 16,000 $ 12,581 79% $ 12,581 79% $ 14,500 TOTAL GENERAL OPERATING COSTS $ 24,500 $ 13,008 53% $ 13,315 54% $ 21,000 CONSULTANT COSTS Management and Administration (CivicStone) $ 240,000 $ 189,708 79% $ 285,000 119% $ 260,000 County Counsel (County MOU) $ 40,000 $ 65,484 164% $ 82,000 205% $ 110,000 County Clerk of the Board (County MOU) $ 6,000 $ 1,796 30% $ 2,500 42% $ 6,000 County Sheriff (Board Meeting AudiolVideo) (County MOU) $ 1,803 $ 463 26% $ 1,000 55% $ 2,000 County Treasurer (County MOU) $ - $ 5,142 0% $ 6,250 0% $ 6,000 County Auditor Controller (County MOU) $ 7,500 $ 8,957 119% $ 12,000 160% $ 15,000 County Community Resources (County MOU) $ 80,000 $ 36,592 46% $ 45,000 56% $ 50,000 Financial Consultant (CSH) $ 35,000 $ - 0% $ - 0% $ 18,000 Auditing Consultant (Edie Bailly) $ 17,000 $ 15,400 91% $ 15,400 91% $ 17,000 Advocacy/Lobbying Services $ 72,000 $ 36,000 50% $ 42,000 58% $ 72,000 Marketing & Communication Services $ 20,000 $ - 0% $ - 0% $ 25,000 Website and GIS Mapping Consultant $ 71,581 $ - 0% $ - i 0% $ 65,000 TOTAL CONSULTANT COSTS $ 590,884 $ 359,542 61% $ 491,150 83% 1 $ 646,000 ESTIMATED ANNUAL EXPENSES $ 615,384 $ 372,550 61% $ 504,465 1 82% 1 $ 667,000 REVENUE MINUS EXPENSES 1 $ - 1 $ 99,665 1 1 $ 188,466 1 $ 604,598 Dated: �/ l io�09 CITY OF SEAL BEACH k ) ffWv1441,J By Joe Kalmick Mayor NOTICE TO CITY TO BE GIVEN City Manager: Jill Ingram City of Seal Beach 2118th Street Seal Beach, CA 90740 Phone: 562-431-2527 Fax: 562-493-9857 APPROVED AS TO ORM: By: 4raigg *Steele., City Attorney Orange County Housing Finance Trust — Joint Powers Agreement Signature Page