Development

The Housing Trust’s pre-development lending program is designed to increase the supply of affordable and workforce housing in the county. Ownership, rental and special needs housing may be financed by the Trust. Financing of up to $750,000 may be used for the acquisition of property, or to provide for predevelopment costs associated with new housing, rehabilitating existing housing or preserving affordability in existing projects.

In calendar year 2008-09, the Trust issued pre-development loans totaling $1,250,000 in two housing projects encompassing 152 units. Since its inception, the Trust has provided four pre-development loans total $2.4 million, stimulating an additional $80 million in housing investments. These projects are:

• Cal State Fullerton Housing Authority to create 42 affordable single-family homes affordable to the faculty and staff of the University -- $943,000.
• A 15-unit rental project serving residents below 80% of Area Median Income -- $208,000.
• Habitat for Humanity’s 27-home project in San Juan Capistrano -- $500,000.
• A 125-unit project planned by the Valeo Companies in Laguna Niguel of which 13 units will have 30-year affordability restrictions -- $750,000.

Program Detail

For pre-development loans, the Housing Trust will support projects with 2% - 6% loans for up to 24 months with the following loan amounts:

• Projects with units targeting households at or below 80% of AMI may borrow up to $20,000 per qualifying unit with a maximum loan amount of $750,000.

• Projects with units targeting households above 80% of AMI may borrow up to $15,000 per unit with a maximum loan amount of $750,000.

OCHT realizes that affordable and workforce housing is needed at all income levels in the county. In the project selection process for the Property Development Assistance funds, the Housing Trust’s goal is to target the following categories/income levels:

• 30% of supported units to be affordable to households at 30% to 50% of AMI.

• 30% of supported units to be affordable to households 51% to 80% of AMI.

• 20% of supported units to be affordable to households 81% to 120% of AMI.

• 20% of supported units to be affordable to households 121% to 160% of AMI.

Housing units that are assisted by the Housing Trust must have long-term affordability covenants or guarantees. Ownership units will be encouraged to have a recapture arrangement, such as an equity sharing, or a first-right-of-refusal agreement with the developer when the buyer sells to preserve affordability in the future.

The OCHT will participate in and encourage projects that help create land trusts, limited equity co-ops or other models of permanently affordable housing.

Home Again

The Orange County Housing Trust and Neighborhood Housing Services of Orange County launched the Home Again pilot program in January of 2008. The Home Again Collaborative consists of key Orange County nonprofit housing organizations, local governments, cooperating lending institutions, and the Orange County Home Ownership Preservation Collaborative. The Home Again Collaborative will purchase, rehad and sell (or lease) vacant foreclosed properties to working families and/or nonprofit organizations serving lower income households. To dae, 10 homes have been purchased and returned to market.

The program is now being expanded by partnering with other Orange County nonprofit housing organizations, the Clearinghouse Community Development Financial Institution (CDFI) and local governments. By increasing the program's scope, the Home Again Collaborative will be able to negotiate directly with lenders for the bulk sale of foreclosed and vacant properties as a discount and leverage stakeholder funds utilizing New Market Tax Credits (NMTC). Foreloosed and/or vacant properties will be offered to nonprofit housing organizations such as Habitat for Humanity, Community Housing Resources, Inc., Affordable Housing Clearinghouse, Mary Erickson Community Housing, and NHS OC to refurbish the homes and make them available to qualified households.