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| FUNDING
GOALS |
The
Housing Trust has set specific fund-raising goals. They
are:
2006 – 2007 FISCAL YEAR
• Raise $10,000,000 of capital by June 30, 2007.
• Raise $250,000 of seed money and operating
income by June 30, 2007 to conduct a capital campaign, market
the programs and operate the trust.
• Assist 35 first-time home buyers by providing
a below market 2nd mortgage and/or down payment assistance
grant by June 30, 2007.
• Provide funds for 200 affordable units the
meet program criteria by June 30, 2007.
5-YEAR FUNDING GOALS
• Raise $25,000,000 of capital by December 31,
2008
• Generate $250,000 of operating funds to support
the trust through contributions and program income and an
annual basis.
• Assist 300 first-time home buyers by providing
a below market 2nd mortgage and/or down payment assistance
grant by June 2011.
• Provide funds for 1500 affordable units the
meet program criteria by June 2011. |
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|
Funding
of the Trust |
| As
a program that provides a regional solution to meet the
affordable and workforce housing need of the county, the
Orange County Housing Trust seeks funds from a variety of
stakeholders in the community. These funds are generally
voluntary contributions from local governments, employers,
corporations, foundations and private citizens. Donations
to the Orange County Housing Trust can be deductible as
allowed by law. The Trust also accepts 0% interest deposits
or low interest loans as approved by the Governing body
and NHS OC Board of Directors. (NHS OC is a certified by
the Department of the Treasury as Community Development
Financial Institution.) |
| Funding
Details
|
Donations
to the Orange County Housing Trust are permanently designated
for the purpose of providing capital to provide affordable
housing options to Orange County residents as outlined by
the OCHT governing body. A maximum of 1.5% of the corpus
of the funds may be used to provide operating funds for
the OCHT. All donated fund designated to the Orange County
Housing Trust may not be used to cover operating or unrelated
program expenses of Neighborhood Housing Services of Orange
County. |
| Funding
from local government: Target $12.5 million
|
OCHT
realizes that many of the county’s cities are actively
involved in creating affordable housing units in their communities.
The trust commends those cities and will encourage each
city to continue to provide housing to meet the needs of
their residents to the best of their ability.
The trust will ask each city to participate by providing
funds that will support affordable housing on a regional
or countywide basis. Successful countywide trusts in California
have had 100% participation by cities. The OCHT asks that
cities commitment to providing funds on an annual basis.
The following provides types of funds used to support housing
trust in other cities: general funds, housing mitigation
fees, tax increment funds, linkage impact fees, hotel occupancy
tax, general obligation revenue bonds, condominium conversion
fees, real estate transfer tax, sales tax, property tax,
housing excise tax, sales of units or property, interest,
inclusionary fees, disposal waste fees, user tax, parking
fees, permits fees and property tax levies. |
| Funding
from the corporate community - $9 million
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| OCHT
will seek voluntary contributions from major corporations
and large employers who have an interest in providing affordable
housing options for their workforce. Affordable housing
has become one of the key issues related to attracting and
maintaining a qualified workforce in the county. The OCHT
will work the business community and employee groups in
raising the necessary funds. In addition, the OCHT will
ask developers in the county to participate on a voluntary
basis to provide funds.
Financial institutions - $3 million
OCHT will seek contributions and investments from financial
institutions serving Orange County residents. The institutions
will be able to gain Community Reinvestment Act credit and
tax credits.
Foundations - $500,000
OCHT will also seek funds from
local, regional and national foundations. Affordable housing
issues have come to the forefront of key concerns in the
county. This is especially true in programs that support
homeless and special needs populations.
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| Progress
to date:
|
Since
its inception in April of 2004, the Orange County Housing
Trust through the efforts of Neighborhood Housing Services
of Orange County and the Orange County Affordable Homeownership
Alliance has:
• Received total investments of $3,950,000 from
nine investors including: Merrill Lynch, Wells Fargo, the
CDFI Fund, Western Financial Bank, Fremont Investment, Banco
Popular, First Federal Bank of California, First Bank and
NeighborWorks America.
• The Trust has provided $1,850,000 in low interest
second mortgage allowing 30 first-time buyers achieve their
American Dream. These 30 loans have leveraged over $18,000,000
in first mortgages.
• The Trust provided two predevelopment loans,
one of $943,000 to Cal State Fullerton Housing Authority
to create 42 affordable single-family homes affordable to
the faculty and staff of the University, and a second of
$208,000 supporting a 15 unit rental project serving residents
below 80% of Area Median Income. |
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