PAGE 1 Show Image
 HOUSING ELEMENT     -


                     z
 ADVANCE PLANNING    w
     PROGRAM         z
                     0

                     0
                     C,
ENVIRONMENTAL MANAGEMENT AGENCY


PAGE 2 Show Image
                   COUNTY OF ORANGE

         ENVIRONMENTAL MANAGEMENT AGENCY


                    COMPONENT II

             ADVANCE PLANNING PROGRAM

                   HOUSING ELEMENT


                   MICHAEL M. RUANE
                      DIRECTOR


        ORANGE COUNTY BOARD OF SUPERVISORS


ROGER R. STANTON                 DONALD J. SALTARELLI
 First District                     Third District

 JAMES W. SILVA                   WILLIAM G. STEINER
 Second District                   Fourth District

                   MARIAN BERGESON
                   Fifth District


PAGE 3 Show Image
                     ORANGE COUNTY PLANNING COMMISSION


                 First District              Michael Potts

                 Second District             Shirley Commons-Long

                 Third District              Clarice Blamer

                 Fourth District             Chuck McBurney

                 Fifth District              Thomas Moody


                         Prepared under Direction of:

              Thomas B. Mathews, Director of Planning Function
                Joan S. Golding, Manager of Advance Planning

                         Element Planning Section:
                           Robert Aldrich, Chief
                    Cindy Lomas, Project Manager, H 89-1
                    Mark Morgan, Project Manager, H 93-1
                                 Brian Judd


                               HOUSING ELEMENT
                             September 14, 1993

                         (GENERAL PLAN MODERNIZATION)

                      BOARD OF SUPERVISORS RESOLUTION
                                 No. 93-1006


     Revised:    10/06/71      Resolution No.    71-1136/H 71-1
                 01/31/79      Resolution No.    79-161/H 79-1
                 02/06/80      Resolution No.    80-208/H 85-2
                 05/18/83      Resolution No.    83-759/H 83-1
                 04/25/84      Resolution No.    84-587/H 84-1
                 08/28/85      Resolution No.    85-1284/H 85-1
                 06/11/86      Resolution No.    86-779/H 86-1
                 06/21/89      Resolution No.    89-961/H 89-1
                 09/14/93      Resolution No.    93-1006/H 92-1


BJ:hdCOVER.WP (1/5/96)


PAGE 4 Show Image
                               TABLE OF CONTENTS

                                                                     Page

Chapter One:  Introduction                                           H-i-i

A.  Overview                                                         H-i-i

B.  Purpose and Scope of the Element                                 H-i-i

C.  Relationship to Other Elements                                   H-i-2

    1.  Component I: Long-Range Planning  Framework                  H-i-2

    2.  Component II:   The General Plan Elements                    H-l-2

    3.  Component III:   Community Profiles                          H-l-3

D.  Related Planning Activities                                      H-i-3

    1.  Orange County Projections - 1988 Demographic Forecast        H-l-3

    2.  Federal and State Housing Programs                           H-l-3

    3.  Regional Housing Plan                                        H-l-4

Chapter Two:  Inventory of Existing Conditions and Future Trends     H-2-l

A.  Introduction                                                     H-2-i

B.  County Growth Trends                                             H-2-l

    1.  Overview                                                     H-2-l

    2.  Population, Housing, and Employment Growth Trends
        and Projections                                              H-2-4

C.  Population Characteristics                                       H-2-14

    1.  General Characteristics                                      H-2-i4

    2.  Household Characteristics                                    H-2-15

    3.  Special Needs                                                H-2-17

D.  Housing Stock Characteristics                                    H-2-24

    1.  Structure Type and Tenure                                    H-2-24

    2.  Overcrowding Status                                          H-2-25

    3.  Condition of Housing Stock                                   H-2-25


                                     -1-


PAGE 5 Show Image
                           TABLE OF CONTENTS (cont.)


                                                                     Page

E.  Housing Cost                                                     H-2-26

    1.  Existing Home Prices                                         H-2-26

    2.  Financing Costs                                              H-2-26

    3.  Housing Costs vs. Ability to Pay                             H-2-29

    4.  Residential Energy Costs                                     H-2-29

F.  Regional Housing Needs Assessment                                H-2-34

    1.  Current Needs                                                H-2-34

    2.  Future Needs                                                 H-2-34

Chapter Three:    Potential Constraints on Housing
                  Development and Improvement                        H-3-l

A.  Land Use Controls, Land Availability and Suitable Sites          H-3-l

    1.  Land Use Controls:  Public and Private                       H-3-l

    2.  Adequacy of Residential Land Approvals and
        Inventory of Residential Sites                               H-3-3

    3.  Agricultural Preserves                                       H-3-4

B.  Site Improvement Requirements, Fees and Exactions                H-3-4

    1.  Grading                                                      H-3-5

    2.  Historic Sites                                               H-3-5

    3.  Regional Park and Open Space Requirements                    H-3-5

    4.  Archaeological/Paleontological Sites                         H-3-5

    5.  Landscaping Requirements                                     H-3-6

    6.  Parks and Recreation Requirements                            H-3-6

    7.  Transportation Facilities Requirements                       H-3-6

    8.  Site Development Standards                                   H-3-6

C.  Building Code and Enforcement                                    H-3-6

D.  Processing Requirements                                          H-3-7


                                     -11-


PAGE 6 Show Image
                           TABLE OF CONTENTS (cont.)


                                                                    Pare


E.  State-imposed Requirements                                      H-3-7

    1.   California Environmental Quality Act (CEQA)                H-3-7

    2.   Article 34                                                 H-3-9

    3.   Building Energy Standards for Residential Development
         (Title 24)                                                 H-3-lO

F.  Cost of Land, Construction and Financing                        H-3-lO

    1.   Cost of Land                                               H-3-lO

    2.   Construction Costs                                         H-3-1O

    3.   Financing Costs                                            H-3-ll


Chapter Four:   Goals, Quantified Objectives and Policies           H-4-1

A.  Goals                                                           H-4-l

B.  Quantified Objectives                                           H-4-l

    1.   New Construction                                           H-4-2

    2.   Existing Units Rehabilitated and Conserved                 H-4-4

C.  Policies                                                        H-4-5

    1.   Housing Supply and Residential Choice Policies             H-4-5

    2.   Equal Housing Opportunities Policies                       H-4-7

    3.   Housing Conservation and Neighborhood Preservation Policies H-4-7

    4.   Housing Conservation and Coordination Policies             H-4-8

Chapter Five:   Implementation Programs                             H-5-l

A.  Underlying Principles                                           H-5-1

B.  Program Descriptions                                            H-5-l

    1.   Aftercare Rental Assistance Program                        H-5-2

    2.   Block Grant Home Improvement Program                       H-5-3

    3.   Community Development Block Grant (CDBG) Program           H-5-4

    4.   Consistency Review Program                                 H-5-5


                                    -iii-


PAGE 7 Show Image
                      TABLE OF CONTENTS (cont.)


                                                                Pare


5.   Countywide Homeless Family Transitional Housing Initiative H-5-6

6.   Development Processing System Review                       H-5-7

7.   Federal Housing Programs                                   H-5-8

8.   Homeless Issues Coordination                               H-5-9

9.   Housing Development Finance Program                        H-S-b

10.  Housing Discrimination/Affirmative Action                  H-S-il

11.  Housing Element Periodic Review and Update                 H-5-12

12.  Housing Opportunities Program                              H-5-13

13.  Housing Referral Directory                                 H-S-iS

14.  Infrastructure Provision and Financing                     H-5-16

15.  Intergovernmental Advocacy with HUD/FHA                    H-S-17

16.  Land Acquisition for Housing                               H-S-i8

17.  Neighborhood Development and Preservation Program          H-5-19

18.  Residential Energy and Water Conservation Retrofit         H-S-20

19.  Section 8 Existing Rental Assistance Program               H-5-21

20.  State of California Housing Programs                       H-5-23

21.  Stewart McKinney Homeless Assistance Act                   H-S-24

22.  Tax-exempt Housing Revenue Bonds                           H-S-25

23.  Preservation of Assisted Rental Units Program              H-5-26


                                 - iv-


PAGE 8 Show Image
                           TABLE OF CONTENTS (cont.)


Appendices

A.    List of Abbreviations                                          H-A-i

B.    Land Inventory and Site Availability                           H-B-i

C.    Orange County Agencies Involved in Housing Development,
      Improvement or Assistance                                      H-C-i

D.    Housing Opportunities Program:  Policies and Guidelines        H-D-i

E.    Energy Conservation:  Building Energy Standards (Title 24)     H-E-l

F.    Housing Element Review and Evaluation                          H-F-i

G.    Preservation of Assisted Rental Units Program                  H-G-1

H.    Board of Supervisors Resolution                                H-H-i

Tables
                                                                     Pare

2-1   Population Growth Trends: Orange County,
      California, United States, 1900-2010                           H-2-2

2-2   Projected Population Growth Trends, North County
      vs. South County. 1980-2010                                    H-2-5

2-3   Orange County Population Trends by RSA, 1980-2000              H-2-7

2-4   Projected Housing Growth Trend
      North County vs. South County, 1980-2010                       H-2-8

2-5   Orange County Housing Stock Trends by RSA, 1980-2000           H-2-9

2-6   Projected Employment Growth Trends
      North County vs. South County, 1980-2010                       H-2-10

2-7   Orange County Employment Trends by RSA 1980-2020               H-2-12

2-8   Comparison of Jobs to Housing Balance by RSA, 1983-2000        H-2-13

2-9   Orange County Median Family Income                             H-2-16

2-10  Price Distribution of Existing Single Family
      Detached Home Sales - Orange County,
      July-August 1988                                               H-2-27

2-li  Monthly Payments and Household Income Required to Purchase
      a Median-priced New Home in Orange County, Attached vs.
      Detached                                                       H-2-28

2-12  Residential Rent Index 1978-1988
      Los Angeles/Orange County MSAs                                 H-2-30


PAGE 9 Show Image
                          TABLE OF CONTENTS (cont.)


                                                                     Pare

2-13  Household Income by Selected Monthly Owners
      Costs as Percentage of Income:  Owner-occupied,
      Non-condominium Housing Units, Orange County and
      California, 1979                                               H-2-31

2-14  Household Income by Gross Rent as Percentage of Income:
      Renter Occupied Housing Units:  Orange County
      California, 1979                                               H-2-32

2-15  Tenure by Average Monthly Residential Energy Costs
      as Percentage of Income - Orange County, 1979                  H-2-33

2-16  Regional Housing Needs Assessment for Unincorporated
      Orange County, 1988                                            H-2-35

4-1   Quantified Objectives:  July 1989-June 1994                    H-4-3

B-i   Residential Land Inventory:   Orange County Unincorporated
      Area, 1989                                                     H-B-2

B-2   Residential Land Inventory:   Orange County Unincorporated
      Islands, 1988-1994                                             H-B-7

F-i   Housing Performance Summary:  Orange County Unincorporated
      Area, July 1982 - June 1988                                    H-F-8

F-2   Progress in Implementing Housing Element Program Objectives    H-F-9

F-3   Coastal Zone Housing Approvals with Affordable Housing
      Requirements: Orange County Unincorporated Area, 1982-1988     H-F-iS

F-4   Coastal Zone Demolitions and Conversions: Orange County
      Unincorporated Area, 1982-1988                                 H-F-18

G-1   Inventors of Assisted Low-Income Rental Units with Expiring
      Affordability Restrictions (July 1989 - June 1994)             H-G-3

G-2   Inventory of Assisted Low-Income Rental Units with Expiring
      Affordability Restrictions (July 1994 - June 1999)             H-G-4


                                      -vi-


PAGE 10 Show Image
                          TABLE OF CONTENTS  (cont.)


Maps
                                                                    Page

2-1   Orange County Regional Statistical Areas                      H-2-3

B-l   Planned Communities with Affordable Requirements              H-B-9

B-2   Redevelopment Areas                                           H-B-lO

B-3   Annexations/Incorporations 1987-1994                          H-B-12

Figures

3-1   Comparative Development Processing Time Limits                H-3-8

E-l   Prescriptive Packages for Climate Zone 8:
      Non-coastal Orange County                                     H-E-3


BJ:hdTOC.WP (1/9/96)

                                    -vii-


PAGE 11 Show Image


PAGE 12 Show Image
CHAPTER ONE:  INTRODUCTION

A.  Overview

    The state legislature has found that the availability of housing in a
    suitable living environment is of vital statewide importance and a
    priority of the highest order.  The legislature also charges local
    government with the responsibility to address this priority while
    considering economic, environmental, and fiscal factors and community
    goals set forth in the General Plan.

    The fundamental goal of the Housing Element is to promote the provision of
    a wide variety of housing opportunities to meet the needs of all economic
    segments of the community. While this goal is a high priority, it must be
    achieved while maintaining internal consistency among the other elements
    of the General Plan as required by state law.

    The Housing Element is divided into five chapters.  The first chapter
    provides an overview of the scope and purpose of the Housing Element.
    Chapter Two is an inventory of existing and projected growth,
    growth-related development patterns, and the regional and local housing
    needs assessment.  Chapter Three considers governmental and
    non-governmental opportunities for and impediments to the maintenance,
    improvement, and development of housing. Chapter Four focuses on the
    County's goals, quantified objectives, and policies with regard to the
    provision of housing.  Chapter Five contains descriptions of the County1s
    implementation programs. The appendices provide reference material for
    the Housing Element as well as in-depth discussion of the Housing
    Opportunities Program, a voluntary program for provision of affordable
    housing.

B.  Purpose and Score of the Element

    The Housing Element is the comprehensive statement by Orange County
    government to the public of its broad and specific commitments to
    facilitate the development of housing in the unincorporated area. These
    commitments are expressed within an integrated framework of goals,
    policies, and programs. The goals of the element are primarily based on
    state law, assessment of shelter needs, and identified opportunities for
    and constraints on the development and improvement of housing. The
    policies and programs of the element, taken together, form an
    implementation strategy to meet the goals established. As such, the
    element serves to guide and direct local government decision-making in all
    shelter-related matters.

    It should be noted that the General Plan (each of its nine elements) is a
    land use policy document and does not address social service issues. The
    line between these two areas is not always distinct, however, and it is
    the County's policy to avoid conflicts between land use and social service
    programs whenever possible in order to maximize the overall effectiveness
    of these efforts.


                                    H-i-i


PAGE 13 Show Image
    State Government Code Section 65588(a) provides that each local government
    shall review its housing element as frequently as appropriate to evaluate
    the following:

    o  the appropriateness of the housing goals, objectives, and policies in
       contributing to the attainment of the state housing goal.

    o  the effectiveness of the housing element in attainment of the
       community's housing goals and objectives.

    o  the progress of the local agency in implementation of the housing
       element.

    It is also the purpose of this element to outline the findings of this
    evaluation and any revisions to existing policies and programs that are
    adopted in response to these findings.

C.  Relationship to Other Elements

    The Advance Planning Program is composed of three components each with a
    focused tilne frame and geographic area.

    1. Component I:  Long-Range Planning Framework

       Component I provides the long-range planning framework and general
       goals for the Advance Planning Program. Included within this document
       are broad housing goals that provide a basis for the more specific
       goals and policies contained in the Housing Element.

    2. Component II:  The General Plan Elements

       The General Plan addresses a 15- to 20- year time frame. Component II
       consists of the nine elements of the General Plan, including the
       Housing Element.

       The Housing Element is implemented by developing various coordinated
       programs that support and carry out its goals, quantified objectives,
       and policies.  At the time of its adoption, the Housing Element is the
       most current expression of County housing policies and achieves
       internal consistency with other General Plan elements by:

       a.  Utilization of the same socioeconomic projections and assumptions
           as in other County planning documents.

       b.  The pursuit of major goals such as balanced land use. This goal
           is intended to encourage a balance within each regional
           statistical area (RSA) of housing, employment, shopping,
           recreation, and civic uses to serve the needs of residents. Thus,
           in balanced communities, land use and transportation policies are
           integrated through this common goal.

       c.  Identifying contradictory goals or policies within different
           elements of the General Plan. For example, an Open Space Element


                                   H-1-2


PAGE 14 Show Image
           may strive to preserve maximum acreage for open space or
           recreational uses while the Housing Element may strive to maximize
           acreage available for housing production.

    3. Component III:   Community Profiles

       The Community Profiles are the most detailed portions of the Advance
       Planning Program.  They are short-range in scope and focus on
       community-level policies and programs.  The Community Profiles provide
       general information on housing density which can be used as a
       reference point for identifying areas of possible affordable units.

D.  Related Planning Activities

    1. Orange County Projections-1988 Demographic Forecast

       Orange County Projections-1988 (OCP-88) contains projections for
       population, housing, and employment.  The projections, which are
       adopted by the Board of Supervisors, provide a single data reference
       for policy-making and program planning as directed by the Board of
       Supervisors (Minute Order of August 9 1988).

       OCP-88 is used throughout the General Plan (e.g., Land Use, Housing1
       and Transportation elements). Moreover, the projections are used by
       the Orange County Transportation Commission, Orange County Transit
       District, and other County agencies for all long-range planning and
       budgeting activities.

       Regional statistical areas (RSAs) are the geographic units used for
       the development of these policy projections.  The projections are then
       dissaggregated to community analysis areas (CAAs) for the purpose of
       performing Development Monitoring Program (DMP) analyses. The DMP
       analysis is conducted by the County Administrative Office in order to
       determine the impact of existing and projected development on
       infrastructure facilities and fiscal resources.  The CAA projections
       are then disaggregated by EMA to the traffic analysis zone level for
       transportation planning efforts.

       OCP-88 served as the County's official input to the SCAG Regional
       Growth Forecast Policy.  The Growth Forecast Policy is implemented
       through SCAG's regional planning activities, project review, and
       coordination with city, county, state, and federal governments. The
       adopted growth forecast is utilized in the development of the Air
       Quality Management Program and the Regional Transportation Plan, which
       are mandated by federal and state law.

    2. Federal and State Housing Programs

       In recent years, the federal government has eliminated or
       substantially reduced a number of Department of Housing and Urban
       Development (HUD) programs.  The future role of the federal government
       in housing and community development activities is expected to
       decrease or remain constant at best in the near term due to federal
       budget constraints.


                                    H-l-3


PAGE 15 Show Image
       The County's efforts to provide and maintain housing for low-income
       households is heavily dependent upon federal and state grants since
       direct financial subsidies are generally required to serve this need.

       Federal programs which the County participates in include Section 8
       Existing Rental Assistance (including Section 8 Certificate and
       Section 8 Voucher) and Community Development Block Grant (CDBG)
       State programs include the CDBG Nonentitlement Program, California
       Housing Finance Agency (CHFA) tax-exempt mortgage revenue bonds,
       California Housing Assistance Service Grants, the redevelopment Loan
       Program, and the Aftercare Rental Assistance Program.   These programs
       are discussed in Chapter 5.

   3.  Regional Housing Plan

       The Southern California Association of Governments (SCAG) determines
       regional housing need and the share of the regional need to be
       addressed by Orange County. A key element in SCAG's housing role is
       the Regional Housing Needs Assessment (RHNA). The RHNA identifies
       current and projected five-year housing needs within the SCAG region.

       Factors considered in determining the regional housing need are market
       demand, employment opportunities, the availability of suitable sites
       and public facilities, commuting patterns, and the needs of
       farmworkers. The regional need, once determined is then distributed
       to each jurisdiction in the SCAG region, each of which receives its
       "fair share allocation" of the overall regional need.   The RHNA must
       be considered and incorporated into the Housing Element's assessment
       of housing need.

       As the regional planning and coordinating agency, SCAG prepares the
       Regional Housing Element, which is a plan and strategy for meeting
       housing needs in the region as a whole. The Los Angeles/Orange
       County/Riverside/San Bernardino urbanized area constitutes a single
       housing market and a regional approach such as provided by SCAG is
       essential if the housing elements of local jurisdictions are to be
       realistically related to regional housing market forces.


BJ:hdCHAPl .WP (12/28/95)


                                   H-l-4


PAGE 16 Show Image
CHAPTER TWO:   INVENTORY OF EXISTING CONDITIONS AND FUTURE TRENDS


A.  Introduction

    The purpose of this section of the Housing Element is to examine the
    current conditions and the manner in which future growth is expected to be
    influenced by the policies of the Housing Element and other General Plan
    elements.  This review is divided into several sections. The first
    presents a synopsis of county growth trends and projections of future
    levels of population, housing, and employment.  The following sections
    identify current characteristics of the county's population, housing
    stock, and the local housing market. The final section brief ly touches
    upon current and future needs as presented in the Regional Housing Needs
    Assessment (RHNA).

B.  County Growth Trends

    1. Overview

       One of the most noteworthy attributes of Orange County has been its
       dramatic growth.  From its beginnings as an agricultural region, the
       county's economic emphasis has steadily shifted to high-technology and
       financial operations, first as a suburb of Los Angeles and later as an
       important urban center.

       The County's population growth can best be put into perspective by
       comparing it to California and the nation as a whole (see Table 2-1).
       Between 1900 and 1980, the United States as a whole grew at an average
       compound rate of 1.4 percent per year while the State of California
       increased an average of 3.5 percent each year.  In Orange County,
       however, the population gained an average of 5.9 percent annually,
       more than four times the national average.   The post-war decades
       between 1950 and 1970 were years of spectacular growth for the county.
       In 1950, just over 216,000 persons lived here; by 1970, the population
       had grown to over 1.4 million.

       Since 1970, Orange County's growth rate has dropped off substantially,
       although it still has exceeded state and national growth rates.
       Population projections for the county anticipate this decline in the
       rate of increase to continue through 2010.   After the turn of the
       century, Orange County's growth rate should parallel the state as a
       whole.

       For analytical purposes, the Southern California Association of
       Governments (SCAG) has divided its six-county region into geographic
       units called regional statistical areas (RSAs).  Orange County's ten
       RSAs are shown on Map 2-1.  Most of the demographic and economic
       analyses presented in the following sections refer to data at the RSA
       level.


                                    H-2-1


PAGE 17 Show Image
                                     TABLE 2-1

                             Population Growth Trends
                   Orange County,  California and United States
                                     1900-2010

                        Population                       Annual Growth Rate
Year       Orange Co.   California      U. S.      Orange Co.  California   U.  S.

1900          19,696    1,485,053    75,994,575        -          -           -
1910          34,436    2,377,549    91,972,266        5.7        4.8         1.9
1920          61,375    3,426,861   105,710,620        5.9        3.7         1.4
1930         118,674    5,677,251   122,775,046        6.8        5.2         1.5
1940         130,760    6,907,387   131,669,275        1.0        2.0         0.7
1950         216,224   10,586,223   151,325,798        5.2        4.4         1.4
1960         703,925   15,717,204   179,323,175       12.5        4.0         1.7
1970       1,420,386   19,971,069   203,302,031        7.3        2.4         1.3
1976       1,772,094       N.A.         N.A.           3.8        N.A.        N.A.
1980       1,932,709   23,667,902   226,504,825        2.2        1.7         1.1
1985       2,130,000   26,365,000   239,279,000        2.0        2.3         1.1
1990       2,302,100   28,771,000   250,410,000        1.6        1.8         0.9
1995       2,463,800   30,956,000   260,138,000        1.4        1.5         0.8
2000       2,599,200   32,853,000   268,266,000        1.1        1.2         0.6
2005       2,718,800   34,546,000   275,604,000        0.9        1.0         0.5
2010       2,833,800   36,277,000   282,575,000        0.8        1.0         0.5


Note:    Growth rates represent average annual compound rates of increase.

Sources: U.S. Census
         California Department of finance
         Orange County Preferred-88 Forecast
         EMA/Advance Planning Division


                                        H-2-2


PAGE 18 Show Image
REGIONAL STATISTICAL AREAS                                                                                                                                                                 MAP 2~1


                                                                                                          NOPR(CSE ALIGMEl
                                                                                         V----------------------------------------------------


                   7                                                                        j                                                                                              I


                                                                                          I


                                                                                                  -                 -
                                                                                                                          ---7

                                                                     (


                                                                                                                                                                                            \
                                                                                                                                                      E-                        -
                                                                                                                                        -     ~--~-`        \~~-              --
                                                                                                                                          -- I I       ~


                                                                                                                                                                                  \\


                                                                                                                                                             I             I

                                                                                                                                                                         I   I,       ~             ~    `        I     ~
                                                                                                                                                                         ,  I
                                                                                                                                                                           1~                       `


                                1'                                                                                I                                                        j    ~--
                                                                                                                  I     ~                                                  \    I
                                                                                                                  I     ~


PAGE 19 Show Image
    There are several advantages to using RSA data in planning studies:
    consistent geographic areas are maintained, allowing comparisons
    between different time periods; the RSAs are small enough to ensure
    relative homogeneity within areas and to identify major sub-regional
    differences; and data coordination is possible with other agencies and
    studies such as SCAG, the County Administrative Office's Development
    Monitoring Program (DMP) and Areawide Fiscal Impact System (AFIS), and
    the Air Quality Management Plan (AQMP). This type of
    intergovernmental coordination helps to improve the effectiveness of
    the planning process.

    Most of the demographic projections used in the County General Plan,
    including the Housing Element, are based upon the Orange County
    Preferred-88 (OCP-88) forecast. These projections were adopted by the
    Board of Supervisors on August 9, 1988. The OCP forecast can be
    amended in several ways: concurrent with the processing of a project
    that is inconsistent with the projections; through annual review as
    part of the Development Monitoring Program; or as part of the SCAG
    Regional Development Guide update process.

2.  Population. Housing. and EmDloyment Growth Trends and Projections

    a. Population Distribution Patterns

       During the past 20 years, the focal point of Orange County's
       growth has shifted gradually southward.  In the 1950s and `60s,
       the majority of new development occurred in the northern areas of
       the County such as Anaheim, Fullerton, Orange, Westminster, and
       Fountain Valley. During the 1970s, as vacant land became more
       scarce in these northern areas, the center of growth shifted to
       the south with the rise of new communities like Irvine, Mission
       Viejo, and Laguna Niguel.  For analytical purposes, North County
       is generally considered to be the area north and west of the Costa
       Mesa Freeway (State Highway 55) and contains RSAs 35-J, 36-A,
       37-H, 38-I, 41-B, and 42-G (see Map 2-1 cn previous page). South
       County is represented by RSAs 39-F, 40-D, 43-C and 44-E.

       Table 2-2 highlights the projected population growth trends in the
       north and south portions of the county.  The source of these
       figures is the OCP-88 forecast. During the 30-year study period,
       about 56 percent of the county's net population growth is
       projected to occur in the southern RSAs.  Although the rate of
       growth in North County is declining, this area will still contain
       the tnajority of the county's population throughout the study
       period.  In 1980, 77 percent of the county's 1,932,709 people
       lived in the north.  By 2010, it is expected that this figure will
       fall to 66 percent.

       The difference in growth between north and south is made more
       apparent when the growth rates of the two areas are compared.
       Between 1980 and 2010, the population of the northern portion of
       the county is expected to increase by 393,949, a gain of 27
       percent.  South County will add 507,142 persons during the same
       period representing a growth of 112 percent.


                               H-2-4


PAGE 20 Show Image
                                                            TABLE 2-2

                                               PROJECTED POPULATION GROWTH TRENDS
                                                 NORTH COUNTY vs. SOUTH COUNTY
                                                            1980-2010


                                      North Count~1                   South Countyb~                   County Total

                                  1980      2010      Change      1980       2010     Change       1980      2010     Change

   Total Population            1,478,851 1,872,500       +27%    453,858    961,000     +112%  1,932,709   2,833,800      +47%

   Pat. of Total                     77%        66%      -11%        23%        34%      +11%        100%       100%        --
   Population

   Growth                             --         --   393,949         --         --   507,142          --          --  901,091

 I Pat. of Growth                     --         --       44%         --         --       56%          --          --     100%

   Average                          2.79       2.70     -0.09       2.37       2.34     -0.03        2.68       2.52     -0.16
   Household Size


   Notes:    a!   Includes RSAs 35-J, 36-A, 37-H, 38-I,  41-B and 42-G
             bI   Includes RSAs 39-F, 40-D, 43-C and 44-E

   Sources:  1980 Census
             County of Orange:   OCP-85 Projections
             Orange County EMA/Advance Planning Division


   BJ:hdTABLE22 .WP (1/2/96)


PAGE 21 Show Image
b.  Population Trends by RSA

    Table 2-3 identifies recent and projected growth trends in
    population for each of Orange County1s ten RSAs.  Subtotals are
    also provided for the incorporated and unincorporated portions of
    the county. As can be seen from the table, RSAs 37-H (Anaheim),
    38-I (North Coast), and 42-G (Santa Aria) are the most heavily
    populated areas of the county. The eastern and southern areas
    (RSAs 40-D, 41-B, 43-C, and 44-E) are expected to register the
    largest gains, however, both in percentage terms and raw numbers
    between 1980 and 2010. Even with their larger growth increments,
    these rapidly developing areas are still expected to contain fewer
    people in 2010 than most of the northern and central RSAs.

c.  Housing Distribution Patterns

    The projected increase in the housing stock reflects the
    population trend identified above (see Tables 2-4 and 2-5). Due
    to a decline in average household size from 2.68 to 2.52 persons
    per dwelling unit countywide, the number of new units expected to
    be'built between 1980 and 2010 represents a slightly higher
    percentage increase than for the population itself.  Consequently,
    while the county's population is projected to rise by 47 percent
    (901,091 persons) during this period, the housing stock will
    increase by 53 percent (381,986 units) over the same interval.

    The spatial distribution of new residential construction is
    expected to be skewed toward South County. About 57 percent of
    the new units built in the county between 1980 and 2010 are
    expected to be located in the southern area. Although the
    northern portion of the county is growing much less rapidly than
    the south on a percentage basis, nearly two-thirds (63 percent) of
    housing units will still be found in the northern RSAs by 2010.

d.  Countywide Employment Trends and Distribution Patterns

    Employment trends are extremely important in determining the
    county's overall growth pattern and, therefore, play an important
    role in developing county policies for housing.

    Orange County has enjoyed a strong economy during the past several
    decades due to its advantageous location and climate. Total jobs
    are projected to increase by 103 percent between 1980 and 2010
    (see Table 2-6).

    As of 1980, 72 percent of the county's 915,400 jobs were located
    in North County. This is very similar to the population pattern
    identified in Table 2-2. By 2010, a modest southward shift in the
    employment distribution is projected to occur. However, the
    magnitude of this shift will be somewhat less than the shift in
    population and housing distributions.  Whereas South County is
    projected to receive 56 percent of the county's population growth


                            H-2-6


PAGE 22 Show Image
                                                                 TABLE 2-3
                                                 Orange County Population Trends by RSA
                                                                 1980-2000


                                      1980-83                     1983-88                     1988-95                      1995-2000
        RSA      19801/  19832/      Growth (%)*      1988w'     Growth (%)*    1995w'      Growth (%)*    2000w'         Growth (%)*

        35-J   156,248  161,005      4,757 (0.1%)    161,983      978 (0.1%)   167,800     5,817  (0.5%)   168,600        800   (0.10%)
        36-A   168,782  176,918      8,136 (1.6%)    183,494    6,576 (0.7%)   186,100     2,606  (0.2%)   188,900      2,800   (0.30%)
        37-H   338,682  355,132    16,450  (1.6%)    367,761   12,629 (0.7%)   373,200     5,439  (0.2%)   379,100      5,900   (0.32%)
        38-I   321,137  334,726    13,589  (1.4%)    343,148    8,422 (0.5%)   355,000    11,852  (0.5%)   363,100      8,100   (0.46%)
        39-F   170,644  182,257    11,613  (2.2%)    195,570   13,313 (1.5%)   223,400    27,830  (2.0%)   235,600      12,200  (1.09%)
        40-D   134,696  151,545    16,849  (4.0%)    188,775   37,230 (4.9%)   225,300    36,525  (2.8%)   247,200      21,900  (1.94%)
        41-B   116,686  128,839    12,153  (3.3%)    150,381   21,542 (3.3%)   186,000    35,619  (3.4%)   210,800      24,800  (2.67%)
        42-G   377,316  400,931    23,615  (2.0%)    415,765   14,834 (0.7%)   439,200    23,435  (0.8%)   449,300      10,100  (0.46%)
        43-C    95,954  109,325    13,371  (4.4%)    145,964   36,639 (6.7%)   190,700    44,736  (4.4%)   212,700      22,000  (2.31%)
        44-E    52,564   63,422    10,858  (6.4%)     85,936   22,514 (7.1%)   117,100    31,164  (5.2%)   143,900      26,800  (4.58%)
1
I~ In
     corp    1,665,384 1,777,656  112,272  (2.2%)  1,975,703  198,047 (2.2%) 2,095,033   119,330  (0.9%) 2,146,604      51,571  (0.49%)

   Unincorp    267,325  286,444    19,119  (2.3%)    263,074  -23,370 (-1.6%)  368,767   105,693  (5.7%)   452,596      83,829  (4.55%)


   County
   Total     1,932,709 2,064,100  131,391          2,238,777  174,677 (1.7%) 2,463,800   225,023  (1.4%) 2,599,200     135,400  (1.10%)

   *Growth rates represent average annual compound rates of increase.

   Sources:

        1/  Census data as of April 1,   1980

        2/  Estimates bases on adopted OCP-85 Proje&tions
            EMA/Advance Planning Division


        3/  Orange County Progress Report   1988-89,  Vol.  25; Estimates reflect the March 31,    1988  incorporation of the City of
            Mission Viejo


        4/  Estimates based on adopted OCP-88 Projections and include City of Dana Point

   BJ:hdTABLE23 .wP (1/2/96)


PAGE 23 Show Image
                                                            TABLE 2-4

                                                  PROJECTED HOUSING GROWTH TRENDS
                                                  NORTH COUNTY vs. SOUTH COUNTY
                                                            1980-2010


                                  North Count~1                       South County~b/                   County Total

                             1980        2010     Change        1980      2010      Change       1980       2010      Change

  Total Units             530,324     692,900       +31%     191,190    410,600      +114%     721,514 1,103,500       +53%

  Pat. of Total                74%        63%       -11%          26%       37%       +11%        100%       100%         --

  Growth                        --         --     162,576          --         --   219,410          --         --   381,986

~ Pat. of Growth                --         --        43%           --         --       57%          --         --      100%


  Notes:   al  Includes RSAs 35-J,   36-A, 37-H,  38-I, 41-B and 42-G
           ~/  Includes RSAs 39-F, 40-D, 43-C and 44-E


  Sources: 1980 Census
           County of Orange:   OCP-85 Projections
           Orange County EMA/Advance Planning Division


  BJ:hdTABLE24 .WP (1/2/96)


PAGE 24 Show Image
                                                                TABLE 2-5

                                                 ORANGE COUNTY HOUSING TRENDS BY RSA
                                                                1980-2000


                                    1980-88                    1983-88                     1988-95                     1995-2000
   RSA            19801/     19832/      Growth  (%)     l988~~     Growth  (%)*     1995       Growth  (%)*       2000      Growth


   35-J         52,454     53,382        928   (1.8%)    54,714      1,332  (0.5)   58,400     3,686   (1.0)     59,500   1,000 (0.38)
   36-A         64,578     66,691      2,113   (3.3%)    69,408      2,717  (0.8)   73,500     4,092   (0.8)     75,900   2,400 (0.65)
   37-H        124,875    128,070      3,195   (2.6%)   133,239      5,169  (0.8)  139,200     5,961   (0.6)    142,500   3,300 (0.47)
   38-I        119,038    122,675      3,637   (3.0%)   128,071      5,396  (0.9)  138,900    10,829   (1.2)    143,600   4,700 (0.68)
   39-F         74,920     77,968      3,048   (4.1%)    84,314      6,346  (1.6)   96,900    12,586   (2.1)    102,300   5,600 (1.16)
   40-D         66,072     72,089      6,017   (9.1%)    87,990     15,901  (4.4)  107,800    19,810   (3.2)    117,000  11,600 (1.71)
   41-B         39,276     42,710      3,434   (8.7%)    50,468      7,758  (3.6)   64,300    13,832   (3.9)     73,900   9,600 (2.99)
I  42-G        130,103    134,361      4,258   (3.3%)   139,876      5,515  (0.8)  148,500     8,624   (0.9)    154,000   5,600 (0.74)
   43-C         32,885     37,154      4,269  (13.0%)    51,766     14,612  (7.9)   69,000    17,234   (4.8)     79,400  10,400 (2.96)
~  44-E         17,313     20,905      3,592  (20.7%)    29,410      8,505  (8.1)   42,400    12,990   (6.3)     54,000  12,000 (5.47)

   Incorp      618,899    648,389     29,490   (4.8%)   725,621     77,232  (2.4)  792,711    67,090   (1.3)    823,404  30,693  (0.77)
   Unincorp    102,615    107,616      5,001   (4.9%)   103,635     -3,981 (-0.7)  146,189    42,554   (5.9)    178,696  32,507 (4.45)

   County      721,514    756,005     34,491   (4.8%)   829,256     73,251  (1.9)  938,900  109,644    (1.9) 1,002,100   63,200 (1.35)


   *Growth rates represent average annual compound rates of increase.


   Sources:

   1/ ~     Census Bureau; Orange County Administrative Office

   M Orange County Administrative Office,     OCP-85 Projection   (Interpolation)

   ji Orange County Administrative Office,    OCP-88 Projections.    Estimates reflect the March 31,    1988 incorporation of
     the City of Mission     Viejo, but include the City of Dana Point.


   BJ:hdTABLE2S.wP* (1/2/96)


PAGE 25 Show Image
                                                             TABLE 2-6

                                                PROJECTED EMPLOYMENT GROWTH TRENDS
                                                  NORTH COUNTY vs. SOUTH COUNTY
                                                             1980-2010


                               North Count~1                      South County~1                        County Total

                           1980       2010    Change          1980       2010     Change          1980       2010    Change

   Total Employment     658,600   1,164,900      +77%        256,800   690,600      +168%       915,400   1,855,500      +103%


   Pat. of Total            72%         63%       -9%            28%        37%       +9%          100%        100%         --
   Employment

z
~  Growth                    --          --   506,300             --         --   433,800             --         --    940,100

   Pat. of Growth            --          --       54%             --         --       46%             --         --       100%


   Notes:    ~/    Includes RSAs 35-J, 36-A, 37-H, 38-I,  41-B and 42-G
             ~b/   Includes RSAs 39-F, 40-D, 43-C and 44-E

   Sources:
             Orange County EMA/Advance Planning Division
             County of Orange OCP-85


   BJ:hdTABLE26 .WP (1/2/96)


PAGE 26 Show Image
    between 1980 and 2010, only 46 percent of new jobs are expected to
    be located in this area. According to a study released by the
    Orange County Transportation Commission, this trend is explained
    by a competitive advantage enjoyed by the established employment
    centers in North County. The major reasons for this advantage are
    access to labor supply, access to markets in the greater Los
    Angeles area, availability of competitively-priced land for new
    office and industrial developments, and the efforts of
    redevelopment agencies to attract new projects.  During the 1990s,
    the focus of growth will shift to the presently less-developed
    areas of the county.  The primary reasons for this shift is that
    by the 1990s, the developing county area will have an increased
    population, and the older established areas will have relatively
    fewer competitive sites remaining for development.

    Overall, the county's employment base is projected to grow
    considerably faster than the population as a whole. This compares
    to a 47 percent population increase during the same period. Two
    trends help to explain this difference: 1) an increasing labor
    force participation rate, particularly among women and 2) more
    Orange County workers commuting from Los Angeles, Riverside, San
    Bernardino, and San Diego counties.

    Table 2-7 contains employment trends by RSA for the period
    1970-1988.

e.  Comparison of Jobs to Housing Balance

    One of the explicit implementation policies of the Land Use
    Element of the General Plan is "to plan urban land uses with a
    balance of residential, industrial, commercial, and public land
    uses."  Table 2-8 summarizes the jobs-to-housing balance between
    different geographic areas and helps in evaluating the county's
    growth trend in terms of the balanced land use policy.

    If there were an equal number of job opportunities and housing
    units throughout the county, the job/housing ratio would be 1.0.
    An examination of Table 2-8 reveals that most RSAs show some
    degree of imbalance between housing and jobs.  Only RSAs 35-J
    (Buena Park), 37-H (Anaheim), and 41-B (Canyon) show a consistent
    balance between housing and employment. The remaining RSAs are
    equally divided between "employment surplus" and "employment
    deficit" areas. Employment surplus areas--those where the
    proportion of jobs is substantially greater than housing--include
    RSAs 36-A (Fullerton), 39-F (Central Coast), 42-G (Santa Ana), and
    44-E (El Toro). On the other hand, RSAs 38-I (North Coast), 40-D
    (South Coast), and 43-C (Trabuco) all contain significant
    employment deficits.


                            H-2-l1


PAGE 27 Show Image
                                     TABLE 2-7

                     ORANGE COUNTY EMPLOYMENT TRENDS BY RSA
                                     1980-2010


RSA               1980            1988            1995            2005         2010

35-J            55,200          70,800          75,800          86,500       93,100

36-A           100,600         115,220         132,600         143,200      146,700

37-H           146,000         186,340         195,800         226,000      241,700

38-I            90,300         114,780         122,600         139,500      150,200

39-F           146,800         192,780         231,300         270,300      282,900

40-D            32,600          52,700          78,900         110,400      119,500

41-B            54,900          72,340          84,500         101,800      107,200

42-G           211,600         273,860         341,600         397,200      426,000

43-C            17,400          26,080          51,200          76,600       85,300

44-E            60,000         100,140         159,500         187,900      202,900


County         915,400       1,205,040       1,473,800       1,613,000    1,855,500
Total


Sources:  OCP-88
          County Administrative Office
          EMA/Advance Planning Division


BJ:hdTABLE27 .WP (1/2/96)


                                      H-2-12


PAGE 28 Show Image
                                                                    TABLE 2-8

                                                COMPARISON OF JOBS TO HOUSING BALANCE BY RSA
                                                                    1983-2000


                         1983                            1988                            1995                             2000
       RSA      Emp         DU      Ratio       Emp        DU       Ratio       Emp         DU      Ratio       Emp         DU        Ratio

      35-J      57,248      53,382   1.07       70,800     55,440     1.30      75,800      58,400    1.30        80,800     59,500     1.36

      36-A      98,262      66,691   1.50      115,220     69,900     1.64     132,600      73,500    1.80      136,600      75,900     1.80

      37-H     150,824    128,070    1.18      186,340    131,880     1.41     195,800    139,200     1.41      208,900     142,500     1.47

      38-I      95,216    122,675    0.80      114,780    130,140     0.88     122,600    138,900       .88     128,000     143,600      .89

      39-F     152,558      77,968   2.00      192,780     85,760     2.24     231,300      96,700    2.39      257,500     102,300     2.52

i~    40-D      43,300      72,089   0.60       52,700     84,260     0.63      78,900    105,400       .75       98,400    117,000      .84

CA)
      41-B      56,538      42,710   1.32       72,340     51,300     1.41      84,500      64,300    1.31        93,000     73,900     1.26

      42-G     218,676    134,361    1.63      273,860    142,360     2.02     341,600    148,400     2.30      367,500     154,000     2.39

      43-C      22,762      37,154   0.61       26,080     47,560     0.54      51,200      69,000      .74       68,400     79,400      .86

      44-E      64,816      20,905   3.10      100,140     28,580     3.50     159,500      42,000    3.80      173,900      54,000     3.22


      Count    960,200    756,005    1.30   1,205,040     827,180     1.46  1,473,800     935,800     1.57    1,613,000   1,002,100     1.61
      Total


      Note:  Ratio represents the number of employment opportunities per dwelling unit.

      Sources:     County of Orange,   EMA-Advance Planning Division
                   OCP-85 Forecast
                   OCP-88 Forecast

      BJ:hdTABLE28 .wP (1/2/96)


PAGE 29 Show Image
           The relationship between housing and employment within the
           county's RSAs should be considered when Housing Element policies
           and programs are being developed with a goal of encouraging
           residential development in areas where an employment surplus is
           projected.

C.  Population Characteristics

    1. General Characteristics

           According to the State of California Department of Finance, Orange
           County's population, as of January 1, 1989 was 2,280,405. The
           cities in Orange County contain 85 percent of this population with
           the remaining 15 percent residing in the county's unincorporated
           areas.

           According to the 1980 census, Orange County contained 687,059
           households in 1980.  It is estimated that the number of households
           will increase to 863,084 countywide by 1994 which represents
           129,463 in the unincorporated area.  This estimation is a straight
           extrapolation based upon a projected annual growth rate of 1.83
           for the years between 1980 and 1995.  The term "household" is
           defined by the Census Bureau as all persons who occupy a housing
           unit. A householder is the person in whose name the home is owned
           or rented.

           Household types in the County are subdivided into three groups:

           (1) Family households: those which consist of a householder
               living with one or more persons related to him or her by
               birth, marriage, or adoption.

           (2) Non-family households: those which consist of a householder
               living alone or with non-relatives only.

           (3) Group quarters:  all persons not living in households are
               classified by the Census Bureau as living in group quarters.
               Two general categories of persons in group quarters are
               recognized: 1) Inmates or institutions and 2) Other, such as
               rooming houses, communes, and workers' dormitories.

           In 1980, persons in family households comprised 85 percent of the
           county's total population and 87 percent of the population in the
           unincorporated area. Non-family households contained 259,691
           persons (13 percent of the total county population) with 30,737
           living in the unincorporated area.  Slightly more of these
           households were headed by women than by men. Applying the same
           percentages to 1994 estimates, non-family households will contain
           314,433 persons with 37,732 living in the unincorporated area.

           Persons occupying group quarters represented less than 2 percent
           of both the county and unincorporated area populations.


                                  H-2-14


PAGE 30 Show Image
2.  Household Characteristics

    a. Household Composition

       In 1980, 72 percent of the county's housing units were occupied by
       family households.  This percentage was substantially higher than
       the statewide figure of 69 percent but below tile unincorporated
       area figure of nearly 76 percent.  Non-family households
       represented 28 percent of the county total, which was
       substantially lower than the statewide figure of 31 percent but
       higher than the unincorporated figure of 24 percent.

       According to the 1980 census, married couples comprised 60 percent
       of the county's total households, and one-half of these had
       children under 18 living with them.  Families headed by women
       represented 9 percent of all county households, with two-thirds of
       these women having children under 18 living with them.

       In 1994, it is estimated that 517,850 households will be comprised
       of married couples with 258,925 of these households with children
       under 18 living with them. Families headed by women would
       represent 77,677 of the County's households, with 51,785 of the
       households with children under 18.

       Countywide, non-family households are almost evenly split between
       male and female householders, each comprising about 14 percent of
       all county households.

    b. Income Characteristics

       Households include all occupied housing units, while families are
       defined as two or more persons related by birth, marriage or
       adoption.

       According to the Chapman College Center for Economic Research, as
       of January 1, 1989, the Orange County median family income was
       $48,123,  which is significantly higher than the California median
       income.

       Table 2-9 shows Orange County median family income statistics for
       the years 1975 through 1989.

       Section F of this Chapter (Regional Housing Needs Assessment)
       further discusses overpayment and the current and future housing
       needs of the unincorporated county.


                               H-2-15


PAGE 31 Show Image
                                   TABLE 2-9

                       Orange County Median Family Income

                           Median Family                 Annual
   Year                        Income                  Chance (~)a/

1975 Actual                    $16,379
1976 Actual                    $17,933                      9.5
1977 Actual                    $20,122                      12.2
1978 Actual                    $22,583                      12.2
1979 Actual                    $25,499                      12.9
1980 Estimate                  $28,705                      12.6
1981 Estimate                  $31,900                      11.1
1982 Estimate                  $32,815                      2.9
1983 Estimate                  $34,371                      4.7
1984 Estimate                  $37,025                      7.7
1985 Estimate                  $39,941                      7.9
1986 Estimate                  $41,537                      4.0
1987 Estimate                  $43,112                      3.8
1988 Forecast                  $45,176                      4.8
1989 Forecast                  $49,916                      10.5

Note:   al Average annual compound rate of increase

Sources: Economic and Business Review, June 1988,
         Center for Economic Research Chapman College.

         Orange County Progress Report 1988-89, Vol. 25 p.149

         County of Orange, EMA/Advance Planning Division


                                    H-2-16


PAGE 32 Show Image
3.  Special Needs

    a. Elderly and Handicapped

       According to the County1s 1988-91 Housing Assistance Plan, there
       are 4,420 lower-income elderly and 4,431 handicapped households in
       need of housing assistance in the unincorporated area.

       The elderly population is comprised of persons who are 60 years of
       age and older. According to the State Department of Finance, 90
       percent of elderly persons are homeowners and 10 percent are
       renters.  Since most of the elderly persons are homeowners, they
       are less affected by housing market conditions. While
       appreciation of a home is a plus, the negative aspect of ownership
       includes lack of funds due to a fixed income to provide needed
       maintenance. Many elderly persons also live in housing too large
       for their current needs.  Though property taxes have been reduced
       due to Proposition 13 for some, taxes and insurance are a
       substantial portion of the elderly household's limited budget.

       The 22,704 elderly renters countywide are most seriously impacted
       by the housing market.  For senior citizens dependent on a fixed
       Social Security allocation, little remains for other necessary
       expenses.  Moreover, 3,503* senior citizens live in mobile homes
       and feel the impact of increased space rental and conversion of
       parks to non-residential use (Note:  *This number has decreased
       due to recent incorporations).

       SB 1553 of 1984 (Govt. Code Sec. 65915) requires that local
       governments grant density bonuses or other incentives to
       developers who construct housing projects in which 50 percent or
       more of the units are for senior citizens. The County will
       encourage the development of housing for the elderly in compliance
       with this legislation, as described in  Chapter Five'(Meeting
       Special Housing Needs).

       According to United Way (1986), there are approximately 330,000
       disabled persons residing in Orange County (approximately lS~ of
       the overall County population). The State Department of
       Rehabilitation estimates that this includes 230,000 physically
       disabled and 130,000 developmentally disabled persons (60,000 are
       both physically and developmentally disabled). This is probably a
       conservative estimate due to the fact that the attractive benefits
       package and mild climate draw a high number of people with
       disabilities to Orange County.

       Another critical subgroup in the disabled classification is the
       mentally ill. As mental illness is not necessarily a visible
       handicap, the mentally ill are often an invisible population
       within the disabled community. As a result, the seriously and
       persistently mentally ill are often overlooked and fail to reap
       their fair share of all levels of low-income housing.


                               H-2-17


PAGE 33 Show Image
What was once thought of as fatal disabling trauma or birth defect
is now often responsive to medical treatment.   As medical science
advances, the probability of disabled persons surviving their
disability is increasing in the same way that longevity for
elderly persons is increasing.  Therefore the needs of disabled
persons will also continue to increase.

The two major housing needs of the disabled--particularly
physically disabled persons- -are affordability and accessibility.

A majority of Orange County1s disabled residents' incomes fall
below 50 percent of the County3s median income.  As recipients of
Supplemental Social Security Income (SSI), many are on a fixed
income, per month, which places them at a disadvantage when faced
with inflation and rising housing costs.  Since most disabled
persons cannot qualify for home ownership, they are forced into
the already-crowded rental housing market.

On January 23, 1989 HUD published final rules implementing the
1988 Federal Fair Housing Act.  Under this law, the disabled have
been added as a protected class.  A big concession was given to
apartment owners in allowing them to collect special deposits for
disabled tenants modifying apartments to make them more
accessible.   The new law gives disabled tenants the right to
demand alterations to units without letting management increase
their security deposits.  Landlords, however, may negotiate with
tenants to set up separate interest-bearing escrows to cover cost
of restoring modifications when tenants vacate.  The following
conditions are also outlined in the HUD final rules:

1.  Escrow payments may be negotiated only where it is reasonable
    to do so.

2.  Disabled residents must obtain landlord's permission before
    proceeding with modifications.

3.  The apartment owner may not require tenants to follow a
    detailed approval process; permission to make modifications may
    be oral.

4.  Owner may withhold permission until renter selects a
    responsible contractor to do the work.

5.  Management may condition approval on renter providing
    reasonable description of planned alterations and assurances
    that necessary building permits will be obtained.

An aid in the provision of housing for the mentally ill has been
HOMES, Inc.  (Helping Our Mentally ill Experience Success). HOMES
is a non-profit corporation organized in 1985 with the goal of
providing an array of housing options for the mentally ill.


                         H-2-18


PAGE 34 Show Image
    HOMES currently provides three houses at the semi-independent
    level with supportive services in Orange County for mentally ill
    adults. The current program is considered transitional, and
    residents move on to independent living when their Section 8
    certificates become available to them.

    Sources: Dayle McIntosh Center
            United Way
            State Dept. of Rehabilitation
            H.O.M.E.S. Inc.
            O.C. HCA, Mental Health Services

b.  Large-Family Households

    Families of five or more members are classified as large families.
    Large-family household need is dictated by three factors:
    (1) size of family; (2) family income; and (3) cost of housing.
    The Housing Assistance Plan (HAP) for 1988-1991 identifies 2,999
    lower-income large families in the unincorporated county area with
    an unmet housing need. The 1980 Census stated that there were
    90,657 large families within Orange County, with 11,496 of these
    in the unincorporated area.

    Sources: Housing Assistance Plan 1988-1991

c.  Single Heads of Household

    The single employed parent typically desires minimal maintenance
    housing, primarily two-bedroom units near place of employment,
    schools, shopping, and recreational activities.  One of the main
    priorities is a safe neighborhood; however, with limited income,
    affordable housing is often available only in less-desirable areas
    of the county. Although data on single male-headed households is
    unavailable, the 1980 Census reported that in the unincorporated
    County, 4,279 female householders had children under 18 years of
    age. Using the same ratios as in 1989, it is estimated that in
    1994, female-headed households with children under 18, in the
    unincorporated areas, will total 5,437.

    HUD published "final rule11 concessions to the 1988 Federal Fair
    Housing Act (January 23, 1989) implementing amendments that add
    families with children as a protected class under the federal
    housing law. Although the regulations offer retirement
    communities more leeway in types of facilities and services that
    they must offer to be exempt from admitting children, this leeway
    is not extended to mobile home park operators.  The act only
    provides exemptions for all-adult communities for pre-retirees at
    least 55 years old and elderly 62 or older.

    Also HUD rejects suggestion that mobile homes and conventional
    multi-family housing be allowed to designate floors or buildings
    in developments for elderly and others for families with children.
    This would be blatantly discriminatory.


                            H-2-19


PAGE 35 Show Image
d.  Military Personnel

    Marine Corps Air Station (MCAS) El Toro is located in
    unincorporated Orange County within Irvine's sphere of influence
    and MCAS Tustin is in the adjoining City of Tustin. As of October
    1988, approximately 1,770 civilians and 6,300 military were on the
    El Toro base, and 130 civilians and 3,900 military were on the
    Tustin base, totaling 12,100 personnel for both bases. The number
    of bachelor units in barracks on the El Toro base is approximately
    4,000, and 1,800 units exist on the Thstin base. The number of
    family units available on the El Toro base is currently 1,252 and
    1,259 are located on the Tustin base.  This means that
    approximately 3,800 military households (both single person and
    family) must seek housing off-base.  There is currently a waiting
    list of six months to three years for on-base housing. Future
    plans include the construction of 100 family housing units in 1989
    and 118 units in 1990, all on the Tustin base. Additionally, 64
    family housing units will be relocated from El Toro to Tustin
    during 1989.

    Over 50% of the military personnel at El Toro and Tustin are
    married. According to the Tustin and El Toro Stations, most
    military personnel are stationed for two or three years, which
    makes them a highly mobile population. Military personnel find
    that with very limited incomes it is increasingly difficult to
    find housing in Orange County. Clearly more available low-cost
    housing is necessary for the military.

    Source: J.M. Wagner, Colonel, U.S. Marine Corps
            Community Plans and Liaison Officer

e.  Farmworkers

    In recent years, there has been a shift from traditional
    agricultural to Special Agricultural Workers (SAWS). This shift
    refers to agricultural workers as defined by the Immigration and
    Naturalization Service (INS) in implementing the Imigration
    Reform and Control Act of 1986 (IRCA).

    The passage by Congress of IRCA was intended to permit
    legalization of individuals who had lived or worked in the United
    States for specific periods of time. It also tightened
    requirements for employers to document the legal status of new
    employees and provided for the sanction of those employers found
    to be knowingly employing undocumented aliens. IRCA, then, was an
    opportunity for eligible illegal aliens to legalize their status
    and eventually become citizens. At the same time, it was intended
    to discourage future illegal immigration by preventing their
    employment in the United States.

    Agricultural employment accounts for less than 1 percent of total
    county employment. The California Employment Development
    Department reported that the agricultural employment average in


                            H-2-20


PAGE 36 Show Image
    Orange County for 1988 was 8,100 employees.  In April 1988, the
    seasonal peak for agricultural employment which usually occurs
    between April and June, was 10,900 employees.  These figures do
    not include those classified as SAWs in the county.  This number
    is unclear. The Department of Health in Sacramento estimates that
    there are 19,195 SAWs in all agricultural pursuits in this county.
    This figure was derived from the demographics created in
    estimating funding and is considered very high by legalization
    staff at INS.

f.  Homeless Individuals and Families

    Existing service agencies indicate that a growing need exists for
    limited-term shelter facilities for individuals and families with
    no available shelter due to the following constraints:
    limited/fixed income (e.g., SSI recipient); unemployment; recent
    eviction, rent raise, or home foreclosure; low vacancy rate;
    emotional/mental problems; family violence; or difficulty adapting
    to a new culture.  The target group (some of whom are chronically
    homeless and some of whom are temporarily homeless) consists of
    men and women of all ages.

    Current Needs

    The most recent statistics regarding the magnitude of homelessness
    and existing resources were compiled by EMA-HCD as part of the
    County's Comprehensive Homeless Assistance Plan (CHAP). The CHAP
    was prepared in 1987 in support of the County's Emergency Homeless
    Shelter Grant application under the McKinney Act (see program
    description on page H-5-25).  It should be noted that the
    following statistics apply to the entire county, not the
    unincorporated area.

    The CHAP indicated that the total number of homeless `in Orange
    County is unknown, but the Homeless Issues Task Force estimates
    this figure to be 8,000 to 10,000. The following information was
    compiled by one service provider based on 5,940 homeless clients
    served during one month:

    o  Of the 5,940 persons assisted, 4,572 (77%) were families with
       children.  42% of the total (2,524) were children.  The
       remaining 23% were individual adults.

    o  60% had lived in Orange County at least 10 years.

    o  40% were mentally disabled, and 10% of those also had physical
       or sensory disabilities.

    o  Many were employed full-time.

    o  Many were not receiving governmental assistance (AFDC, General
       Relief, etc.) due to ignorance of these programs or processing
       requirements.


                            H-2-21


PAGE 37 Show Image
o   Those wishing to work had difficulty finding jobs due to lack
    of a mailing address, phone, bathing facilities, and in the
    case of single parents, low-cost child care facilities.

The Homeless Issues Task Force, in cooperation with the County, is
currently (June 1989) preparing a survey of homeless persons.  The
results of this survey should be available by September 1989.  In
addition, the 1990 Census will aggressively attempt to enumerate
the homeless.

Existing Services and Facilities

The Comprehensive Homeless Assistance Plan includes an inventory
of existing facilities that provide services and shelter to the
homeless.  These facilities are summarized below:

o   Women's Transitional Living Center (domestic violence) 75 beds

o   Christian Temporary Housing Facility                   60 beds

o   Interval House (domestic violence)                     24 beds

o   Orange Coast Interfaith Shelter                        20 beds

o   Dayle McIntosh Center (handicapped)                      6 beds

o   Episcopal Service Alliance, Martha House (women)       10 beds

o   Orangewood Children's Home (dependent children)       186 beds

o   Emergency Shelter Housing (children)                   98 beds

o   Irvine Temporary Housing                               20 beds

o   Brothers of Charity                                    30 beds

o   YWCA (women)                                           20 beds

o   Salvation Army                                         76 beds

o   Alcohol Program (de-tox/recovery)                     154 beds

o   Drug Residential Program                              131 beds

o   Psychiatric Inpatient Hospitalization                 299 beds

o   Transitional Living Center (mentally ill adults)       30 beds

                                                Total   1,239 beds

In addition to these facilities, the National Guard Armories
provide 250 beds during harsh weather conditions.


                        H-2-22


PAGE 38 Show Image
    Two county parks, Featherly and O'Neill, are used for overnight
    camping. Approximately 5 percent of the campsites are used by the
    homeless (3% at Featherly and 2% at O'Neill). Camping stay is
    limited to 15 days maximum within any calendar month. Extension
    of the camping stay limit has been considered but no time frame
    has been established.

    Motels offer a supply of temporary family housing but even modest
    units may cost $30 per day and, in many cases, are not in livable
    condition.

    Orange County Housing Authority maintains an inventory of
    Emergency/Temporary Housing Facilities (see page H 5-16, Housing
    Referral Directory).

    Revenue sharing funds and private donations provide most of the
    funding used for emergency housing.  Community Development Block
    Grant funding has been used for acquisition of two battered
    women's facilities, one family facility, and a facility for
    children.

    Costs incurred by service agencies can be divided into facility
    costs and maintenance costs. The Christian Temporary Housing
    Facility budget states a cost of $10.00 a day per person,
    excluding the retirement of building loan and up-front structure
    costs.

g.  Asian Pacific Immigrants and Refugees

    During the past five years, between 100,000 and 200,000 Asian-
    Pacific immigrants and refugees have settled in Orange County.
    The majority of these people have settled in the northern part of
    the county, specifically in the cities of Anaheim, Costa Mesa,
    Fountain valley, Fullerton, Garden Grove, Huntington Beach,
    Orange, Santa Aria, and Westminster. However, a large number of
    these people have migrated to South County cities and
    unincorporated areas such as Irvine, Mission Viejo, San Clemente,
    Lake Forest, El Toro, Saddleback valley, and Laguna Hills.

    In addition to those immigrants and refugees who have settled in
    Orange County in the past five years, a new influx of Taiwanese
    and Chinese immigrants has begun.  This influx is coming from Los
    Angeles County cities bordering the Orange County line. As
    affordable housing opportunities in these border cities
    (predominantly Cerritos, Hacienda Heights, and La Puente) become
    scarce, the newly arrived immigrants and refugees move into Orange
    County cities, most notably Brea, Cypress, La Habra, and Yorba
    Linda.

    This influx of refugees has exacerbated the tight housing market
    for low- and moderately-low-income families. Immigrants and
    refugees are particularly hard-hit because they tend to have
    larger households than the county as a whole and for most, for an


                           H-2-23


PAGE 39 Show Image
           initial period of time, also undergo a naturalization process.
           The supply of large family houses and apartments affordable to
           low-income households is inadequate, resulting in frequent cases
           of overcrowding and other poor living conditions which result in
           additional personal problems.

           In January 1981, the Orange County Human Relations Commission
           published a `1Report on the Impact of Refugee Resettlement in
           Orange County" that examined the problems of refugees in the areas
           of education, housing, employment, health, criminal justice, and
           public assistance.  In reviewing the housing problems of refugees,
           the report concluded that the housing problems of refugees could
           not be isolated from those of other groups and "that the
           refugee-specific problems could only be solved through a
           comprehensive and aggressive approach to the countywide housing
           situation."

           Overall, the influx of newly arrived Asian-Pacific groups from at
           least 16 different countries in the Pacific Rim will continue to
           exacerbate the lack of affordable low-income housing in all areas
           of `the County.  It is projected that the number of Asian-Pacific
           persons, the fastest growing ethnic group in Southern California,
           will continue to increase over the next few years creating a
           critical need to focus hdusing assistance in provision of
           affordable low-income units.

D.  Housing Stock Characteristics

    1. Structure Type and Tenure

       Large multi-unit structures represent the largest share of annual
       added units in Orange County between January 1, 1987 and January 1,
       1988, followed by single family units. In the unincorporated areas, a
       total of 128,454 residential units were located there as of January 1,
       1988.  Single family detached homes represented the majority of units
       at 76,603. Units in large multi-family structures totaled 25,690,
       followed by single family attached units at 13,156, the duplex to
       fourplex category at 10,703, and mobile homes at 2,302.

       Rentals represent a significant number of the affordable units planned
       and constructed to meet the County's affordable housing requirements.
       This is particularly true as evidenced by recent activity under the
       Housing Opportunity Program (HOP).

       The County's Multi-family Revenue Bond Program has also functioned as
       a stimulus for the production of rentals in Orange County. This
       program was implemented in 1982 to provide below market financing to
       builders for the construction of multiple family rental units in
       participating cities and the unincorporated area of the County.
       Information summarizing the Multi-family Revenue Bond Program is found
       on page H 3-12 of this document.


                                    H-2-24


PAGE 40 Show Image
    The Orange County Assessor File was used to provide an updated
    estimate of the number of rental units in the County as of March 31,
    1988.  Households filing a homeowner exemption with the County
    Assessor were separated from all households in order to obtain an
    estimate of rental units vs. owner-occupied units in Orange County.
    While homeowner exemptions are not filed by every homeowner in the
    County, those that do not file are not believed to be significant in
    number.

    Of the total households reflected on the March 1988 Assessor's roll
    countywide, 47 percent filed homeowner exemptions, while 53 percent
    are assumed to be renters. In the unincorporated area, 43 percent of
    the households are estimated renters, while 57 percent are homeowners.

2.  Overcrowding Status

    The standard measure of overcrowded housing used by the U.S. Census
    Bureau is a ratio of more than one person per room, excluding kitchens
    and bathrooms.  For example, a typical two-bedroom apartment with
    living room, kitchen and one bathroom (three rooms total) would be
    considered overcrowded if it were occupied by more than three persons.

    According to the 1980 Census, overcrowding (1.01 or more person per
    room) is much more prevalent among renters at all geographic levels.
    The Census data also showed that overcrowded housing was much less of
    a problem in unincorporated areas of the county than in the county as
    a whole. Among rental units, almost 10 percent were defined as
    overcrowded countywide, while in unincorporated areas this figure was
    only 6 percent. Overcrowding was almost non-existent among owner-
    occupied units in unincorporated areas (1 percent); countywide, the
    figure was 3 percent.

    It should be noted that for purposes of determining compliance with
    fair housing laws, different definitions of overcrowding.are used.
    For example, the State Department of Fair Employment and Housing
    utilizes a threshold of two persons per bedroom plus one additional
    person, with occupancy limits more restrictive than this raising a
    potential discrimination challenge.  The Uniform Housing Code states:

    "Every dwelling unit shall have at least one room which shall have not
    less than 150 square feet of floor area. Other habitable rooms,
    except kitchens, shall have an area of not less than 70 square feet.
    Where more than two persons occupy a room used for sleeping purposes,
    the required floor area shall be increased at the rate of 50 square
    feet for each additional occupant in excess of two."

3.  Condition of Housing Stock

    A direct measure of housing stock condition is not available. A field
    survey of housing condition is not practical given the size of the
    geographic area involved and staff and budget constraints.


                               H-2-25


PAGE 41 Show Image
       Orange County's housing stock is in better condition than that of
       California as a whole.

       One indicator of housing stock condition is units defined as
       substandard.  The Housing Assistance Plan, in determining the number
       of units suitable for rehabilitation, uses 1980 Census data as
       adjusted by the Southern California Association of Governments.
       Substandard units are those that do not comply with Section 8 Existing
       Housing Quality Standards for occupancy.  The 1988 Housing Assistance
       Plan states that 17,657 units are classified as substandard, broken
       down as follows:

       Substandard dwelling units total:                       17,657

           Owner-occupied:                           -           998
              Vacant:                                            555

           Renter-occupied:                                     7,659
              Vacant:                                            388

       Suitable for rehabilitation and occupied:                8,398

           Low-income occupant:                                 1,446
              Vacant:                                            391

           Renter-Occupied:                                     6,532
              Lower-income occupant:                            2,644
              Vacant:                                            234

       A second definition of substandard units employed by the County is
       "substandard beyond repair."  This includes units that are not
       economically feasible to repair (i.e., the rehabilitation costs exceed
       the appraised value of the property minus the lot). The number of
       substandard units in this latter category is unknown.

E.  Housing Cost

    1. Existing Home Prices

       Data regarding sales prices for existing single family detached houses
       is shown in Table 2-10. Sales price distribution is compiled from
       transactions that occurred during 1988.

       The table indicates that 33 percent of all units were priced at
       $250,000 and over.  Only 45 percent of transactions involved homes
       were priced below $200,000.

    2. Financing Costs

       The full impact of rising mortgage rates upon potential homebuyers
       becomes apparent when hypothetical monthly payment schedules are
       examined.  Table 2-11 shows the monthly payments and annual household
       incomes required to qualify for loans at interest rates ranging from 8


                                    H-2-26


PAGE 42 Show Image
                                TABLE 2-10
                      Price Distribution of Existing
                    Single-Family Detached Home Sales*
                              Orange County
                                   1988

            Price               Sales              Percent

    Under $ 50,000                  6                0.04
    $  50,000  -   59,000          14                0.09
    $  60,000  -   69,000          20                0.14
    $  70,000  -   79,000          58                0.39
    $  80,000  -   89,000          76                0.52
    $  90,000  -   99,000         124                0.84
    $100,000   - 119,000          457                3.10
    $120,000   - 139,000          952                5.45
    $140,000   - 159,000        1,325                8.98
    $160,000   - 179,000        1,797               12.18
    $180,000   - 199,000        1,816               12.31
    $200,000   - 249,000        3,199               21.69
    $250,000   and over         4,905               33.26

    Total                      14,749              100.00

* Based on a monthly sales survey of existing homes conducted by
  California Association of Realtors using data on closed escrow sales
  provided by various boards of realtors.

Sources:
  California Association of Realtors.
  EMA/Advance Planning Division.


                                  H-2-27


PAGE 43 Show Image
                                 TABLE 2-11

                Monthly Payments and Household Income Required
            to Purchase a Average-Priced New Home in Orange County*
                                February 1989


Interest Rate          Monthly Payment al         Annual Income Required bi


    8%                      $1,569                        $65,898
    9%                      $1,696                        $71,232
   10%                      $1,827                        $76,734
   11%                      $1,961                        $82,362
   12%                      $2,097                        $88,074
   13%                      $2,237                        $93,954

*  Average price for recorded new and existing homes sales for the month of
   February 1989 was $224,057, per TRW.

   Notes:

   al  Assumes a 30-year fixed rate mortgage with 20% down payment, property
       tax of 1.2% of home value per year, $30 monthly property insurance.  A
       monthly homeowners association dues is not take into account.

   bi  Assumes 3.5-to-i income to payment qualifying ratio.


   Source:
       TRW Real Estate Market Information
       EMA/Advance Planning Division


                                   H-2-28


PAGE 44 Show Image
    to 13 percent. For example, a family seeking to buy an averaged-
    priced housing unit in Orange County in 1988, with the payment
    required with a 10 percent interest rate would be about $1,827 per
    month; at 13 percent, the monthly payment becomes $2,237. These
    hypothetical cases underscore the critical importance of financing in
    the real estate market.

3.  Housing Costs vs. Ability to Pay

    The spectacular increase in home values in Orange County has not been
    matched in the rental market. As Table 2-12 indicates, rent increases
    have been rather modest by comparison. While homes were appreciating
    at annual rates above 20 percent during the late 1970s, rents were
    typically increasing 8-10 percent annually.

    Home price and rent statistics tell only half the story of housing
    costs.  Although prices and rents in Orange County are high in
    comparison to other areas, incomes are also higher than average. In
    order to accurately evaluate shelter costs, it is important to compare
    monthly housing expenditures to incomes. In general, financial
    advisors recommend that housing expenditures should not exceed 25 to
    30 percent of gross household income. Expense ratios above this
    standard are considered overpayment. In middle- and upper-income
    categories this situation may be only a temporary inconvenience, such
    as when young professionals stretch to buy their first house.  For
    low-income households, however, overpayment for housing may result in
    an inadequate budget for food, clothing, health care, or other
    necessities.

    Table 2-13 presents housing cost to income ratios for owner occupied
    units.  These statistics are derived from 1980 Census data, which
    utilize 1979 calendar year income figures. As Table 2-13 illustrates,
    median monthly housing expenses for owner-occupied units in the
    unincorporated area exceeded 25 percent of income in all but the
    highest ($20,000+) income category. In the county as a whole,
    overpayment was somewhat less common, although still the norm in
    low- income households.

    The 1980 census statistics for renter-occupied units are very similar
    to those for owner-occupied units, although low-income renters
    generally paid a higher proportion of their income for housing than
    owners in similar financial brackets (see Table 2-14). This situation
    was reversed in the upper-income category, however, where renters
    generally paid a slightly smaller portion of their income for housing
    than did owners.

4.  Residential Energy Cost

    The distribution of household energy costs as a percentage of income
    for Orange County residents is presented in Table 2-15. According to
    the 1980 census, in both renter- and owner-occupied categories, the
    median energy cost was 1.5 percent of income. This relationship was
    true for both the unincorporated area and the county as a whole.


                                H-2-29


PAGE 45 Show Image
                                  TABLE 2-12

                       Residential Rent Index: 1978-1988
                         Los Angeles/Orange County MSAs


                                                             Annual
           Year                    Indexal                 Charge (~)b/

           1978                      61.4
           1979                      68.0                      10.7
           1980                      76.6                      12.6
           1981                      85.3                      11.4
           1982                      93.5                       9.6
           1983                      99.6                       6.5
           1984                     106.9                       7.3
           1985                     115.6                       8.1
           1986                     123.8                       7.1
           1987                     130.5                       5.4
           1988c/                   135.8                       4.5

Note:     al This index is a component of the consumer Price Index.
          bi Average Annual compound rate of income.
          ci Through September only

Sources: Real Estate Research Council of Southern California
          Real Estate and Construction ReDort, Third Quarter 1988, p.42.

          County of Orange, EMA/Advance Planning Division


                                    H-2-30


PAGE 46 Show Image
                                    TABLE 2-13

   Household Income by Selected Monthly Owner Costs as Percentage of Income
                   Owner-occupied Non-Condominium Housing  Units
                           Orange County and California
                                        1979

                     Orange County
                  Unincorporated Area     Orange County         California
Pct.  of Income   Households  Percent   Households Percent  Households   Percent

Less than ~5.000      1,520   100.0       10,476     100.0     219,010    100.0
Less than 20%            47     3.1           826       7.9     29,306     13.4
20 to 24%                54     3.6           626       6.0     18,456      8.4
25 to 34%                94     6.2           788       7.5     25,767     11.8
35% or more             937    61.6         6,206     59.2     114,577     52.3
Not computed            388    25.5         2,030     19.4      30,904     14.1
Median                    Over 35.0%              Over 35.0%          Over 35.0%

~5,000 to ~9.999      1,871   100.0       14,856     100.0     332,502    100.0
Less than 20%           296    15.8         4,243     28.6     144,279     43.4
20 to 24%                89     4.8         1,154       7.8     31.189      9.4
25 to 34%               251    13.4         2,111     14.2      46,354     13.9
35% or more           1,235    66.0         7,348     49.4     110,679     33.3
Not computed             --    --              --     --             --    --
Median                    Over 35.0%                  34.1                 23.2

~10,000 to ~14.999    2,655   100.0       20,271     100.0     390,440    100.0
Less than 20%           721    27.2         7,251     35.8     195,713     50.1
20 to 24%               240     9.0         2,228     11.0      41,110     10.5
25 to 34%               455    17.1         3,035     15.0      56,415     14.5
35% or more           1,239    46.7         7,757     38.2      97,202     24.9
Not computed             --    --              --     --             --    --
Median                         32.6                   26.7      Less than 20.0%

~15,000 to ~19.999    3,576   100.0       25,781     100.0     446,484    100.0
Less than 20%         1,200    33.6       11,421      42.7     236,941     53.1
20 to 24%               381    10.7         2,922     10.9      50,551     11.3
25 to 34%               525    14.7         4,339     16.2      75,044     16.8
35% or more           1,470    41.0         8,099     30.2      83,948     18.8
Not computed             --    --              --     --             --    --
Median                         29.4                   22.9      Less than 20.0%

~20.000 or More      40,119   100.0      236,261     100.0   2,443,058    100.0
Less than 20%        20,606    51.4      145,398      61.6   1,678,993     68.7
20 to 24%             5,295    13.2       29,603      12.5     287,079     11.8
25 to 34%             8,149    20.3       38,046      16.1     323,007     13.2
35% or more           6,069    15.1       23,214        9.8    153,979      6.3
Not computed             --    --              --     --             --    --
Median               Less than 20.0%        Less than 20.0%     Less than 20.0%

Sources:  1980 Census,  STF 3, Table 139
          Orange County Administrative Office
          Orange County EMA/Advance Planning Division


                                      H-2-31


PAGE 47 Show Image
                                    TABLE 2-14

   Household Income by Selected Monthly   Owner Costs as Percentage of Income
                          Renter-Occupied Housing Units
                          Orange County and California
                                       1979

                    Orange County
                 Unincorporated Area      Orange County         California
Pat. of Income   Households Percent    Households Percent  Households   Percent

Less than ~5.000    2,166      100.0     29,869      100.0    673,053    100.0
Less than 20%           6        0.3        173        0.6     11,165      1.7
20 to 24%              28        1.3        393        1.3     21,300      3.2
25 to 34%              64        3.0        923        3.1     43,496      6.5
35% or more         1,681       77.5     23,993       80.3    502,000     74.6
Not computed          387       17.9      4,387       14.7     95,092     14.1
Median                    Over 35.0%            Over 35.0%          Over 35.0%

~5.000 to ~9.999    3,459      100.0     44,429      100.0    794,235    100.0
Less than 20%.        100        2.9        776        1.7     47,839      6.0
20 to 24%             144        4.2      1,365        3.1    160,809      7.7
25 to 34%             471       13.6      4,943       11.1    183,259     23.1
35% or more         2,650       76.6     36,600       82.4    481,665     60.7
Not computed           94        2.7        745        1.7     20,663      2.6
Median                    Over 35.0%            Over 35.0%          Over 35.0%

~l0.000 to ~14.999  4,299      100.0     52,287      100.0    731,277    100.0
Less than 20%         273        6.4      2,659        5.1    139,349     19.1
20 to 24%             346        8.0      5,397       10.3    145,911     20.0
25 to 34%           1,228       28.6     21,561       41.2    257,337     35.2
35% or more         2,367       55.0     22,064       42.2    172,384     23.6
Not computed           85        2.0        606        1.2     16,296      2.2
Median                    Over 35.0%                  32.7                27.3

~15.000 to ~19.999  3,659      100.0     46,150      100.0    550,865    100.0
Less than 20%         609       16.6      8,745       18.9    230,246     41.8
20 to 24%             788       21.5     13,932       30.2    137,500     25.0
25 to 34%           1,374       37.6     17,259      137.5    129,340     23.5
35% or more           819       22.4      5,822       12.6     42,924      7.8
Not computed           69        1.9        392        0.8     10,855      2.0
Median                          27.4                  24.6                21.3

~20.000 or More     9,518      100.0     94,494      100.0    958,021    100.0
Less than 20%       5,551       58.3     62,161       65.7    708,517     74.0
20 to 24%           1,986       20.9     19,165       20.3    142,531     14.9
25 to 34%           1,675       17.6     11,428       12.1     81,066      8.5
35% or more           179        1.9        825        0.9      5,773      0.6
Not computed          127        1.3        915        1.0     20,134      2.1
Median              Less than 20.0%        Less than 20.0%      Less than 20.0%

Sources: 1980 Census, STF 3,   Table 139
         Orange County Administrative Office
         Orange County EMA/Advance Planning Division


                                      H-2-32


PAGE 48 Show Image
                                    TABLE 2-15

  Tenure by Average Monthly Residential Energy Costs as Percentage of Income
                                  Orange County
                                       1979


                                                               Orange County
                                   Orange County            Unincorporated Area
Percent of Income               Households  Percent        Households    Percent

Owner-Occupied                   415,127     100.0           72,088      100.0
    No Charge                      2,127       0.5              380         0.5
    0.1 to 2%                    265,384      63.9           47,951       66.5
    3 to 4%                       85,547      20.6           14,134       19.6
    S to 9%                       41,174       9.9            6,076         8.4
    10 to 14%                      8,817       2.1            1,482         2.1
    15 to 19%                      3,083       0.7              441         0.6
    20% or more                    5,803       1.4              874         1.2
    Not computed                   3,192       0.8              750         1.0

    Median                          1.5%                       1.5%

Renter-Occupied                  271,140     100.0           23,709      100.0
    No Charge                     36,721      13.5            2,880       12.1
    0.1 to 2%                    139,610      51.5           12,138       51.2
    3 to 4%                       45,615      16.8            4,279       18.0
    5 to 9%                       30,274      11.2            2,691       11.4
    10 to 14%                      7,180       2.6              675         2.8
    15 to 19%                      2,778       1.0              256         1.1
    20% or more                    5,011       1.8              445         1.9
    Not computed                   3,951       1.5              345         1.5

    Median                          1.5%


Sources:   1980 Census, STF 4A, Table HA 35
           Orange County EMA/Advance Planning Division


                                      H-2-33


PAGE 49 Show Image
F.  Regional Housing Needs Assessment

    Current and projected housing needs for the unincorporated area are
    derived from the Regional Housing Needs Assessment (RHNA) prepared by the
    Southern California Association of Governments (SCAG). RHNA projections
    are a direct indication of overpayment (i.e., household paying more than
    30 percent of their income for housing). The current RHNA figures, shown
    in Table 2-16, were released in June 1988.

    The RHNA is composed of two parts:  Current needs and future needs.

    1. Current needs

       According to the RHNA, in the unincorporated area, there are currently
       (1988) a total of 123,246 households.  Of these, 12,640 (10%) are
       lower-income households "in need" (households paying an inordinate
       amount for housing) in the unincorporated areas of Orange County
       (Table 2-16).   These households are distributed according to income
       category (low vs. very low) and tenure.

       (Note:~ These figures include the incorporated cities of Mission Viejo
       and Dana Point.)

    2. Future needs

       Projected future needs, presented in Table 2-16, are based upon the
       projected five-year growth in the unincorporated area, adjusted for
       vacancy and the local income distribution. For the 1989-94 period, it
       is estimated that 24,191 housing units will be required in the
       unincorporated area.  This growth need is distributed according to
       income category as follows:

                                               5-Year Growth Need
       Income Category                       Units     Pct. of Total

       Very low (0-50%)                      3,556           14.7
       Low (50%-80%)                         4,620           19.1
       Moderate (90-120%)                    5,008           20.7
       Upper (Over 120%)                    1l~007           45.5
                                            24,191          100.00


                                   H-2-34


PAGE 50 Show Image
                                  TABLE 2-16

                     Regional Housing Needs Assessment for
                          Unincorporated Orange County
                                     1988


       Current Need


         Very Low Income                 Low Income
       Owner        Renter           Owner        Renter          Total

       2,415        4,619            1,828        3,780           12,642


       Future Need

       Very Low       Low             Mod         High            Total

       3,556        4,620            5,008       11,007           24,191


Source:   Regional Housing Needs Assessment for Southern California,
          Southern California Association of Governments, June 1988.


BJ:hdCHAP2 .wP (01/02/96)


                                    H-2-35


PAGE 51 Show Image


PAGE 52 Show Image
CHAPTER THREE:  POTENTIAL CONSTRAINTS ON HOUSING DEVELOPMENT AND IMPROVEMENT

A.  Land Use Controls, Land Availability and Suitable Sites

    1. Land Use Controls: Public and Private

       a.  Public

           Land use controls can pose a potential constraint to development.
           On the one hand, to the extent that such controls reflect
           underlying physical constraints, infrastructure capacity
           limitation and market demand, they do not, in themselves,
           constrain development or add to its cost. On the other hand, to
           the extent that such controls are independent of, or in excess of,
           more fundamental constraints, they can unnecessarily constrain a
           competitive land market and otherwise impede feasible development,
           thus adding to shelter costs. While the extent of such effects is
           controversial, there is general recognition that they may be
           significant.  Identifying, understanding, and addressing these
           constraints is essential in order to carry out the County's
           commitment to facilitate adequate housing development.

           Under state law, local government must plan and control the use of
           all private and public land. With landowner and public
           participation, the County determines broad land use designations
           and specific zoning for the unincorporated area.

           The Land Use Element (LUE) map identifies potential areas for
           development.  Within general public facility constraints, market
           forces will determine the exact location and timing of
           development.

           The Land Use Element has eight land use designations. Residential
           development is permitted in the following categories~at indicated
           densities:

           Categories                    Dwelling Units Per Acre

           Rural Residential                 0.025 - 0.5
           Suburban Residential              0.5 - 18
           Urban Residential                 18 and above
           Urban Activity Center             Per Zoning Regulations

           The Rural Residential category is applied to areas in which
           limited residential use is compatible with the natural character
           of the terrain and availability of infrastructure. The intensity
           of development of these areas is thus severely constrained.

           The Suburban Residential category is characterized by a wide range
           of housing types from estate to attached dwelling units
           (townhomes, condominiums, apartments, and clustered arrangements).
           This category permits considerable flexibility for residential


                                   H-3-l


PAGE 53 Show Image
development.   Site-specific considerations and infrastructure
capacity will determine densities permitted for project proposal.

The Urban Residential category is applied to areas where intensive
residential development is compatible with surrounding urban
development.   Development within this category is characterized by
intensive multiple-family residential uses such as apartment1
condominium, townhouse, and clustered residential units.  Though
this category is the most conducive for affordable housing, it is
also the most demanding on infrastructure capacity.

The Urban Activity Center category is intended to facilitate
high-intensity focal points for the community, with a mix of
residential, business, cultural, and public facilities.  These
centers are located adjacent to major transportation corridors to
allow the most efficient use of the circulation system, including
transit.

Urban Activity Centers, due to their diversity of uses, are, at
times, located in areas significantly impacted by noise.  The
major sources of significant noise in Orange County are aircraft
and highway vehicles.   While both can usually be mitigated to
acceptable levels indoors, aircraft noise cannot be mitigated
outdoors because of its overhead source.   State law and County
policy prohibit residential development and similar uses in
high-noise (+65 CNEL) areas near El Toro Marine Corps Air Station
and John Wayne Airport.   (Residential land use is the most
sensitive because of the nature of activities which occur over a
24-hour period as well as the generally accepted need for, and
design incorporating, outdoor living areas.)   These policies thus
preclude residential development in certain areas or, if approved,
may increase development costs due to required attenuation
measures.

The Orange County Zoning Code enables implementation of the
General Plan through either conventional or planned community
zoning.  The nature and complexity of zoning can be a short-term
constraint to development if project design is inconsistent with
zoning.

The zoning of property is a local option granted to each
jurisdiction by state legislation.  The County of Orange has opted
to zone property and has wide discretion regarding the substance
of its code (e.g., type and intensity of uses permitted, site
development standards, etc.).  It may permit uses outright or by
further discretionary review, e.g., by use permit.  The County has
moved away from a rigid code and, instead, has granted greater
flexibility via use permits and site plans.   Such flexibility
comes at a cost, however, because discretionary review prolongs
processing time and does not assure a specific outcome.


                          H-3-2


PAGE 54 Show Image
    b. Private

       The unincorporated area is characterized by several large
       landowners that plan, develop, market, and, in some cases, build
       housing.  These planned communities have been a widely noted
       feature of the county's development. They have greatly
       facilitated the implementation of many County policies such as the
       General Plan's balanced land use objectives and Growth Management
       Program since the County can essentially work with one large
       developer instead of many small developers.  At the same time,
       planned community owners/developers have independent strategies
       and quality standards for development that may impose constraints
       beyond those contained in County land use regulations.

2.  Adequacy of Residential Land Approvals and Inventory of Residential
    Sites.

    The General Plan Land Use Element commits the County to the following
    policy:

       To provide a variety of residential densities that permit a mix of
       housing opportunities affordable to the county's labor force.

    The Growth Management Program (GMP), described in the Land Use
    Element, implements Phased Development requiring project proponents to
    submit annual monitoring reports (AMR's) which project future
    development activity, identify public service deficiencies, and
    identify mitigation measures. This practice of submitting AMR's is
    intended to enable the County and the private sector to identify and
    resolve potential deficiencies before they restrict development. This
    is essential for continued availability of land for residential
    development. The GMP will be evaluated periodically to determine if
    the goal is being adequately met.

    The County, on August 3, 1968, adopted a new Growth Management Plan
    Element (GMPE) which is the most current expression of county growth
    management policies and is an extension of the LUE Growth Management
    Program. The Element contains County policies on the planning and
    provision of traffic improvements and public facilities that are
    necessary for orderly growth and development.  A major goal of the
    Growth Management Plan Element is to ensure that traffic improvements
    and public facilities are planned and implemented in an efficient,
    timely manner to meet the current and projected needs of Orange
    County.

    The County recognizes that whether projected needs are met will depend
    on many factors in addition to the adequacy of residential development
    approvals. These other factors include market conditions,
    governmental financial constraints, and private development decisions.
    Together with infrastructure availability, interest rates, etc., these
    factors will also determine the pace of housing development.


                                H-3-3


PAGE 55 Show Image
       As required by Government Code Section 65563(a) (3), the County has
       prepared a detailed inventory of land suitable for residential
       development or redevelopment, along with an estimate of the amount of
       growth that can be accommodated during the time frame of the Housing
       Element (1989-94).  This material is contained in Appendix B.  The
       purpose of this inventory is to demonstrate that the County has
       designated and planned for sufficient residential sites to accommodate
       the level of growth indicated in the Regional Housing Needs Assessment
       and the County's quantified objectives for new housing development.

    3. Agricultural Preserves

       The County's agricultural preserve policy implemented in 1969 was
       intended to provide time to plan and develop mechanisms to preserve
       agricultural land.  These policies are contained in the Resources
       Element of the General Plan.

       The state enacted the Williamson Act in 1965 in response to increasing
       land taxes which were forcing agricultural land into more intensive
       uses.  The act assesses agricultural land at a lower rate than
       non-agricultural land.  In exchange, landowners enter an agreement
       with the local jurisdiction to limit uses on the contracted land for
       at least 10 years.  There are approximately 63,000 acres within the
       county held as agricultural preserves under Williamson Act provisions.
       Since 1960, approximately 13,000 acres have been removed from
       agricultural preserves and subsequently planned for urban development.

       The land inventory analysis contained in Appendix B concludes that
       there currently are sufficient residential sites designated for
       development (i.e., General Plan and zoning entitlements) to
       accommodate future 5-year needs, and agricultural preserves do not
       pose a constraint to development.  If this situation were to change in
       the future, the County's agricultural preserve policy may need to be
       reconsidered.

B.  Site Improvement Requirements, Fees and Exactions

    The General Plan, the Zoning Ordinance, planned community regulations,
    coastal plans, and specific plans provide the goals, policies, and
    regulations for planning and development in Orange County.

    The primary purpose of Orange County's planning process is to provide a
    balanced living environment so that all economic segments may enjoy a full
    complement of public services. To achieve this goal, the County imposes
    site improvement requirements upon new development projects.

    As part of its project review and approval procedures, the County
    frequently recommends conditions of approval for General Plan amendments,
    zone changes, discretionary permits (e.g., use permits, site plans, etc.),
    and subdivision maps. These conditions are imposed in accordance with
    state law and County policy, and they address matters of public concern as
    they relate to specific projects. Most development conditions have been
    standardized to ensure equitable administration of the approval process.


                                    H-3-4


PAGE 56 Show Image
Development conditions are reviewed on a regular basis by the County to
ensure that they are applied consistently and that they are reasonably
related to the use for which the property is intended.

The following are examples of development conditions imposed upon
residential projects.   When not precluded by public safety considerations,
modifications of these requirements are granted by the County in order to
reduce project development costs and increase affordable housing
production.

1.  Grading

    These requirements address both geological conditions and aesthetic
    impacts, e.g., preservation/enhancement of views, landforms,
    screening, landscaping, etc. They are usually applied at the site-
    specific level.  Modifications in the form of less contour grading,
    fewer manufactured berms, increased grading area allowances, etc. have
    been approved for affordable housing projects.

2.  Historic Sites

    Requirements addressing conservation of historic resources located
    within proposed projects are usually applied at the site-specific
    level of approval.  Reduction of standards for the size of sites to be
    preserved or restricted from development have been approved for
    affordable housing projects.

3.  Regional Park and Open Space Requirements

    In conjunction with the approval of residential General Plan
    amendments or zone changes, regional park and open space requirements
    are imposed for the dedications of regional and community open space
    and recreation areas. Since the cost of housing may be affected by
    the size and value of such dedication areas, reductions in
    requirements and increases in density have been provided to effect
    cost savings. Reduced park and open space dedication requirements and
    the corresponding cost savings are achieved at the expense of
    environmental quality, however.

4.  Archaeological/Paleontological Sites

    These requirements address reporting, preservation, and salvage of
    sites and artifacts.  Changes to substantive reporting requirements
    and the preservation of sites in lieu of salvage excavation and/or the
    capping and developing of sites have been approved for some projects
    to cut costs.

    Board of Supervisors policy permits the County to pay the cost of
    salvage when funds have been budgeted from building permit fees for
    that purpose. The possibility was explored in 1986-87 for budgeting
    H/CD funds for payment of salvage on affordable housing projects but
    was found infeasible.


                                H-3-5


PAGE 57 Show Image
5.  Landscaping Requirements

    These requirements address screening and scenic enhancement and are
    usually applied at the site-specific level.

    Modifications have been permitted for some projects in the form of
    reduced plant coverage and the use of less expensive species. Lowered
    landscaping costs help reduce the cost of affordable housing.

6.  Parks and Recreation Requirements

    These requirements apply to local parks and park improvements.  County
    exactions for parkland are guided by the appropriate sections of the
    state Subdivision Map Act (California Government Code Section 661-6610
    incorporating provisions of the Quimby Act (SB 1785)), which permit
    local agencies to require developers to provide parkland at the rate
    of up to three acres per thousand population. The County requires two
    and one-half acres of parkland per thousand population, which is less
    than the maximum permitted by state law. In addition, policies
    contained in the Recreation Element allow up to 25 percent of this
    requirement to be satisfied by private recreational facilities within
    planned communities and up to 100 percent of the requirement in other
    areas.

7.  Transportation Facilities Requirements

    These requirements consist of private sector assistance through the
    County's Major Thoroughfare and Bridge Fee Program. Payment of fees
    has been postponed for affordable housing projects resulting in
    development cost savings.

8.  Site Development Standards

    These requirements are established through land use regulations.
    Modification of standards for building height, setback, and parking
    requirements often results in cost savings for affordable housing
    proj ects.

    In response to the need for affordable housing, the County adopted an
    Affordable Housing Incentive Use Permit procedure (Section 7-9-140 of
    the Orange County Zoning Code). The purpose of this ordinance is to
    permit deviations from site development standards that provide
    flexibility for builders in order to deliver a more affordable
    product.

    The extent to which the site development requirements discussed above
    are applied to residential projects is based upon an evaluation by
    decision makers of their effect upon the quality, quantity, and cost
    of housing to be produced.


                              H-3-6


PAGE 58 Show Image
C.  Building Code and Enforcement

    The basic purpose of the Building Code and its enforcement is to protect
    the public from unsafe buildings and unsafe conditions associated with
    construction. However, constantly changing materials and construction
    techniques make it essential to continually review and update the Building
    Code to avoid obsolescence and ensure that health and safety standards are
    maintained. Such code maintenance also provides an opportunity to ensure
    that the code does not mandate unnecessarily costly materials or
    construction techniques.  Accordingly, the Building Code is similar to
    those used by other local agencies in California and does not present any
    special constraints to the development of housing.

D.  Processing Requirements

    The California Government Code establishes permitted time periods for
    local agencies to review and act upon private development prQposals.
    Examples of such restrictions for several discretionary permits are
    identified in Figure 3-1, "Comparative Development Processing Time
    Limits."  Typically, state restrictions, especially those imposed by the
    California Environmental Quality Act (CEQA), are much less stringent than
    those set by County policy. The county strives to complete all project
    reviews within the time limitations defined by County policy regardless of
    state allowances.

    An amendment to the California Government Code (Section 65662) permits
    concurrent processing of applications for general plan amendments and zone
    changes when inconsistency between the general plan and zoning is the
    result of a general plan amendment or element adoption. The Board of
    Supervisors, in 1980, approved a policy to encourage concurrent processing
    of development proposals, when appropriate, in order to reduce processing
    time.  Concurrent processing is permitted for the following actions:

    1.  Zone Change - use permit - tentative tract map

    2.  Zone Change - tentative tract map

    3.  Zone Change - use permit

    4.  Zone Change - site plan

    5.  Zone Change - tentative tract map - use permit - site plan

        (These planning activities may also include a general plan amendment
        as cited in Section 65862 of the California Government Code.)

E.  State-Imposed Requirements

    1.  California Environmental Quality Act (CEQA)

        The environmental review process generally constrains the development
        process by increasing project processing time. CEQA review, which is
        mandated by the state, can cause unavoidable processing delays that
        ultimately result in additional costs to the home buyers.


                                    H-3-7


PAGE 59 Show Image
                                  FIGURE 3-1

                COMPARATIVE DEVELOPMENT PROCESSING TIME LIMITS

   Item                                      State Maximum   County Policy

General Plan Amendments                      None            None

Zone Chances                                 None            None

Subdivisions

   o Action on Tentative Maps                50 days         50 days

Environmental Documentation

   o Additional Data Needed - -
       Notice to Applicant                   30 days         5 working days

   o Determination of Negative Declaration
       or EIR' Requirement for project       45 days         20 working days

   o Completion of Negative Declarations     60 days         14 days

   o Certification of Final EIR              1 year          1 year

Variances. Use Permits. Site Plans,
Grading Permits

   o Additional Data needed - -
       Notice to applicant                   30 days         30 days

   0 Final Action on Project                 1 year          1 year

Building Permits                             None            None


                                    H-3-8


PAGE 60 Show Image
    In an effort to streamline the environmental review process, the
    county implemented the Master Environmental Assessment (MEA) Program
    to achieve the following goals:

    a.  Centralize and improve data accessibility.

    b.  Expedite the environmental review process.

    c.  Minimize development costs.

    d.  Ensure responsible development patterns.

    e.  Develop more specific performance standards from which to assess
        the viability of projects.

    The MEA serves to streamline the environmental review process from the
    research and analysis stage of a project through the decision-making
    phase.  This results in shorter processing times, which is ultimately
    a cost cutting measure resulting in lower unit prices or rents.

    In Fiscal Year 1987-88, projects were submitted to the Environmental
    and Special Projects Division (ESP) for environmental review.  Of the
    total number of projects submitted, 2 were determined to have the
    potential for significant impact on the environment and were required
    to submit an EIR.  In Orange County unincorporated areas, delays
    caused as a result of the EIR process affect a minor portion of
    projects submitted for processing.

2.  Article 34

    Article 34 of the California Constitution requires that any low-rent
    housing projects "developed, constructed, or acquired in any manner"
    by any state public agency receive voter approval. A voter referendum
    must be held whether or not there are local costs associated with
    development and operation.

    The requirements of Article 34 have imposed a barrier to development
    of housing for low-income families by state and local agencies not
    generally incurred by comparable development undertaken by the private
    sector. This requirement has discouraged many communities from
    seeking federal and state housing assistance.  In addition, the
    resulting delays are a major factor in the already difficult task of
    developing affordable housing for those of low income.

    Article 34 was designed by its backers as a mechanism for constraining
    the development of the traditional public housing projects, and in
    most instances has accomplished that end. Although these provisions
    have slowed the development of housing for low-income, aged, and
    handicapped persons, many communities have gone to the electorate and
    received approval for public housing developments.


                                H-3-9


PAGE 61 Show Image
       In June 1980, a general Article 34 authorization was passed in the
       unincorporated county and 11 cities.  The effectiveness of such an
       election is now questionable in light of the recent California Supreme
       Court case of Davis vs. the City of Berkeley (1988) 41 Cat. 3d 512
       which invalidated a general authorization adopted by Berkeley voters.
       That decision is currently being reheard by the Supreme Court.

    3. Building Energy Standards for Residential Development (Title 24)

       On September 25, 1981, the state Building Standards Commission adopted
       revised building energy standards for new residential development.
       These standards, which went into effect on July 13, 1982, established
       energy budgets (maximum energy use levels) for residential buildings
       for each of the 16 established climate zones in California.

       The cost of complying with these standards can range from $500 to
       $17,000 depending on the package type and climate zone.~

       Additional information regarding energy conservation is provided in
       Appendix E.

F.  Cost of Land, Construction, and Financing

    1. Cost of Land

       Residential land prices in Orange County have risen dramatically since
       the early 1980's. According to the Construction Industry Research
       Board, the cost of improved land in 1989 accounts for 35% of the total
       cost of a single family house compared to 27.8% in 1980.

    2. Construction Costs

       Construction costs for residential units have increased rapidly over
       the past decade. Land prices, together with construction costs, have
       pushed up the cost of housing greatly.

       In a market study prepared for the County in 1983, the Land Economies
       Group developed six construction scenarios based on types of units and
       quality of construction.  Square foot costs were translated into
       construction cost by unit adjusted for Orange County.  Average
       construction cost in Orange County during 1963 for a single family
       detached dwelling was $46 per square foot; for a condominium
       townhouse, it was $32 per square foot; and apartments averaged $37 per
       square foot. Mininium prices ranged from $40,670 to $51,640 per unit
       for an apartment, $40,190 to $68,900 for a townhouse, and $58,590 to
       $70,980 for a single-family detached house.

       Lower sales prices could result from a reduction in amenities or
       quality of materials (above a minimum level consistent with health and


      1 Title 24 compliance costs based upon CEC (low end) and Southern
       California builders (high end) estimates.


                                   H-3-l0


PAGE 62 Show Image
    safety and adequate performance). To the developer and home-buyer,
    interest rates have the greatest impact on the ability to construct or
    purchase a home.  Interest rates, however, are determined by national
    policies and economic conditions, and there is little that local
    governments can do to affect these rates.

3.  Financing Costs

    a. Orange County Revenue Bond Program

       The County of Orange has established two revenue bond housing
       programs to increase the supply of affordable housing stock in the
       county.  Under these programs, tax-exempt bonds are issued to
       provide funds for construction and mortgage loans to encourage
       developers to provide both rental and for sale housing which is
       affordable to income qualified families and individuals.

       Authority for use of tax-exempt financing is governed by the
       Internal Revenue Code which sets a ceiling or cap on the volume of
       tax-exempt "private activity bonds" that each state can issue each
       year.  Private activity bonds include qualified mortgage bonds
       issued for private uses and other projects such as Industrial
       Development Bonds and student loans. Each state can choose the
       volume of each bond type it issues, as long as the overall cap is
       not exceeded.  For the calendar year 1988, the statewide ceiling
       was $1,349,050,000. By setting a nationwide volume cap, the
       Federal Government controls the amount of tax-exempt private
       activity bonds available. The volume cap is not an allocation of
       Federal dollars, but rather a limit on the authority to issue
       these types of bonds.

       The funding for these projects comes from the investors who
       purchase these bonds and receive, in return, interest earnings
       that are exempt from Federal Income taxation. Debt service for
       principal and interest payments to the investors is paid back by
       the home mortgage payments in the case of single family issues or
       the rental payments in the case of multi-family bond issues.

       (1) Single Family Residential Mortgage Revenue Bond Program

           The Single Family Residential Mortgage Revenue Bond Program
           has existed in Orange County since 1980.  The program is
           designed to provide mortgage loans to first-time homebuyers
           whose incomes do not exceed maximum Federal limits.  Buyers
           must also intend to live in the homes as their principal
           residence.  Mortgage loans offered under the bond program
           generally have lower interest rates than conventional loans.
           Loans are made available for attached and detached single
           family residences primarily in eligible developments at
           various locations throughout the County.  A smaller portion of
           funds is available for existing or resale units Countywide.


                               H-3-l1


PAGE 63 Show Image
     Since the inception of the Program, lower cost mortgage loans
     have been made available for approximately seven thousand
     single family residences. (Statistics represent data through
     June 1988).

     The following is a summary of the Single Family Residential
     Mortgage Revenue Bond issues by year.

     Year            Number of Issues      Total Bond Issues

     1980                     1              $100,000,000
     1982                     3               129,345,000
     1983                     2               147,800,000
     1984                     1                 55,800,000
     1985                     1                 58,999,870
     1987                     1                 32,194,540
     1988                     1                 27.687.744

     TOTAL                  10               $551,827,154

(2)  Multi-family Revenue Bond Program

     The Multi-family Revenue Bond Program was developed in Orange
     County in 1982. This program is designed to make financing
     available to developers for the construction of multi-family
     residential rental units in the County. In order to receive
     financing through the bond program, developers must reserve,
     for 10 years, 20 percent of the units for rent by families or
     individuals who earn 60 percent or less of the median family
     income in Orange County. In addition, for recent projects,
     half of the designated units must be reserved for occupancy on
     a priority basis for tenants who generally earn 50 percent or
     less of the median income. Furthermore, projects financed
     after the passage of the 1986 Tax Reform Act must commit 20
     percent of the total units for income qualified tenants for a
     period of 15 years. Since the inception of the program, the
     County has issued bonds totaling $1,096,066,876 to develop
     16,706 apartment units throughout the County. Of these, 3,991
     have been designated for occupancy by income qualified
     tenants.  The following is a summary of the Multi-family
     Revenue Bond Program by year:

     Year            Number of Issues      Total Bond Issues

     1982                     4              $ 40,137,200
     1983                     1                 55,500,000
     1984                     8               115,690,000
     1985                   28                856,609,676
     1986                     1                  7,000,000
     1988                     1                 21~150.000

     TOTAL                  43             $1,096,086,876

     Note:  Statistics represent data through June 1988.


                        H-3-12


PAGE 64 Show Image
        The program is designed for new projects that have not begun
        construction before County approval of a bond inducement
        resolution. (The County can issue bonds for existing rental
        developments provided the project is acquired after the date
        of inducement and at least 15% of the bond proceeds are spent
        to rehabilitate the property.)

b.  Tax Increment Funds

    Except as otherwise provided in Health and Safety Code Section
    33334.2, not less then twenty percent (20%) of all taxes which are
    allocated to the Agency pursuant to Health and Safety Code Section
    33670 shall be used by the Agency for the purpose of increasing
    and improving the County's supply of housing for persons and
    families of low or moderate income and very low-income households.
    The housing set-aside funds shall be placed in a separate fund and
    taken off the top of tax increment received each year by the
    Agency prior to establishing an expenditure program for public
    works and other Agency activities each fiscal year. The funds
    available annually will depend upon the rate of property value
    appreciation within the project area. In addition to the
    mandatory set-aside requirement, the Neighborhood Development and
    Preservation Plan (NDAPP) calls for housing improvement and
    development as a central activity of the program.

    (1) Home Improvement Program (HIP)

        The Housing Improvement Program has as its goal the
        rehabilitation of existing homes that have deteriorated
        because of age, use, or deferred maintenance.  The Program
        will provide low-interest loans, deferred payments loans, and
        grants for a variety of improvements aimed at bringing these
        homes to current standards for decent, safe, and sanitary
        housing.

        Assistance will be directed to single-family and multi-family
        rental and ownership units under procedures established by the
        County Housing and Community Development Department (H/CD).
        Loans will be made through private financial institutions
        where appropriate agreements can be developed.  Grants will be
        made directly to property owners.

        Specific activities will include home improvements,
        reconstruction and additions, site improvements, loan
        processing and refinancing, contract administration, and
        construction inspection. Estimated production is based on the
        needs established by the current Housing Assistance Plan
        approved by the Board of Supervisors.


                           H-3-13


PAGE 65 Show Image
          (2)  New Housing Development Program (NHD)

               The County's current H/CD program to promote the production of
               housing for low and moderate income residents of Orange County
               will continue under the Neighborhood Preservation and
               Improvement Plan. The New Housing Program assists private and
               non-profit developers.


BJ:hdCHAP3 .WP (1/3/96)


                                  H-3-14


PAGE 66 Show Image
CHAPTER FOUR:  GOALS, QUANTIFIED OBJECTIVES AND POLICIES

A.  Goals

    The overall goal of the County Housing Element is as follows:

        Provide decent and adequate housing with respect to selection by type,
        price, and tenure in a satisfying environment for all persons
        regardless of age, race, sex, marital status, ethnic background,
        socioeconomic status, or disability.

    More specific goals and policies are described below.

    Goal 1:  HOUSING SUPPLY AND RESIDENTIAL CHOICE

              An adequate supply of housing that varies sufficiently in cost,
              style, tenure, and neighborhood type to meet the economic and
              social needs of every existing and future resident of the
              county; and which provides sufficient housing opportunities for
              employees of county businesses and public service providers to
              ensure the continued economic vitality of the county.

    Goal 2:  EQUAL HOUSING OPPORTUNITY

              Equal housing opportunities available to all persons without
              discrimination on the basis of race, religion, ethnicity, sex,
              age, marital status, or household composition.

    Goal 3:  HOUSING CONSERVATION AND NEIGHBORHOOD PRESERVATION

              A structurally sound and well-maintained housing stock,
              residential neighborhoods with adequate and coordinated public
              and private services and facilities, clean air, quiet and
              pleasant surroundings, reasonable assurances of safety and
              security, and a sense of community identity.

    Goal 4:  HOUSING COOPERATION AND COORDINATION

              Countywide and regional coordination of housing, community, and
              economic development activities with private sector and citizen
              involvement.

B.  Ouantified Oblectives

    The California Government Code mandates specific Housing Element
    requirements, one of which is to establish: "A statement of the
    community's goals, quantified objectives, and policies relative to the
    maintenance, preservation, improvement, and development of housing. It is
    recognized that the total housing needs identified may exceed available
    resources and the community's ability to satisfy this need within the
    context of the general plan requirements. Under these circumstances, the
    quantified objectives need not be identical to the total housing needs.
    The quantified objectives shall establish the maximum number of housing


                                   H-4-l


PAGE 67 Show Image
units by income category that can be constructed, rehabilitated, and
conserved over a five-year time frame."   (Section 65583(b), revised
effective 1-1-92).

The following quantified objectives have been developed in consideration
of the County's goals, its fair share allocation of regional housing
needs, and available financial resources and regulatory mechanisms.

Quantified objectives by income category are established as follows for
the period July, 1989 to June, 1994 and are summarized in Table 4-1.

Note:   The following modifications to the quantified objectives were made
        in 1993: 1) quantified objectives were added for the very-low and
        above-moderate income categories; 2) the existing quantified
        objectives were broken down to show the number of units to be
        constructed, rehabilitated, and conserved by income category; and
        3) the number of units to be conserved was increased to include
        those units to be conserved under the new Preservation of Assisted
        Rental Units Program.

        Other than these modifications, the quantified objectives are the
        same as those established for the unincorporated area as it
        existed in July, 1989.  Since that time, the communities of Dana
        Point, Laguna Niguel, Laguna Hills, and Lake Forest have
        incorporated, and Gypsum Canyon and Aegean Hills have been annexed
        to the Cities of Anaheim and Mission Viejo, respectively.  These
        incorporations and annexations have decreased the unincorporated
        area by 25,402 acres.  The quantified objectives will be proposed
        for amendment in 1994 as part of the five-year comprehensive
        Housing Element update to reflect incorporations and annexations.

1.  New Construction

    a.  Total New Units Added:  24,134

        This forecast is consistent with current County policy and Land
        Use Element assumptions.  It includes only the unincorporated area
        and has and will continue to be affected by annexations and
        incorporations (see note above).

    b.  New Affordable Units Added: 6,033

        Of the 24,134 new units added to the housing stock during the
        1989-1994 time frame, 25 percent are designated as affordable to
        low- and moderate-income households. Low and moderate income is
        defined as 120 percent or less of the county median. Of this 25
        percent, 10 percent (2,413) are designated for households earning
        80 percent or less of the median income ("Low"), 10 percent
        (2,413) are designated for households earning between 81 and 100
        percent of median income ("Moderate I"), and 5 percent (1,207) are
        designated for households earning between 101 and 120 percent of
        median income ("Moderate II").


                                 H-4-2


PAGE 68 Show Image
                                     TABLE 4-1


                              QUANTIFIED OBJECTIVES
                              July 1989 - June 1994


     Income Level
     (% of median)         New Construction        Rehabilitation      Conservation

     Very-low income              150                  375                 400
     (50% and below)
     Low-Income                2,263                   650                 413
     (50.1-80.0%)
     Low Income Subtotal       2,413                 1,025                 813

     Moderate-I                2,413                   200                    0
     (80.1-100.0%)
     Moderate-Il               1,207                    75                    0
     (100.1-120.0%)
     Above moderate           18,101                     0                    0
     (above 120.0%)
     Total                    24,134                 1,300                 813


BJ:hdTABLE24 .WP (1/4/96)


                                        H 4-3


PAGE 69 Show Image
       This affordable housing objective includes units built pursuant to
       the Housing Opportunities Program as well as Community Development
       Block Grant (CDBG) and redevelopment-funded units.   It is
       recognized that significant financial subsidies and incentives
       will be necessary to achieve these objectives, especially in the
       low and very low income categories.

       In conjunction with Housing Element Amendment 1993-1, the Board of
       Supervisors established quantified objectives for the very-low and
       above-moderate income categories (50 percent or less and above 120
       percent of the County's median income, respectively).  The
       very-low income objective is based upon reasonable expectations of
       the financial resources available during the five-year period.

2.  Existing Units Rehabilitated and Conserved

    a. Units Rehabilitated:  1,300

       Programs that assist in the rehabilitation of substandard housing
       include the Community Development Block Grant (CDBG) Home
       Improvement Program, the Rental Rehabilitation Program, and the
       Neighborhood Development and Preservation Program (redevelopment).
       The objective for the number of units to be rehabilitated under
       these programs for the 1989-94 period is 1,300.

       This objective assumes the continuance of federal and state
       funding at current levels.

    b. Units Conserved:  813

       This objective addresses programs that encourage the maintenance
       of affordable housing units. The three major programs that serve
       this function are the Section 8 Existing Rental Assistance
       Program, the Aftercare Rental Assistance Program, and Preservation
       of Assisted Rental Units Program. All three of these programs are
       administered by EMA/Housing and Redevelopment which includes the
       Orange County Housing Authority (OCHA).

       It is estimated that 377 units will be available under the Section
       8 Existing Rental Assistance program (353 Certificates and 24
       Vouchers), and 23 units will be available under the Aftercare
       Rental Assistance Program during this five-year time frame. These
       programs are discussed more fully in Chapter 5. Since these
       programs require certain property maintenance standards, they
       encourage conservation of these existing units.

       The objective of the Preservation of Assisted Rental Units Program
       (see Appendix G) is to conserve all of the 413 units which are at
       risk of converting to market-rate rents due to expiring
       affordability restrictions during the five-year period. All of
       the units at risk during the 5-year period were assisted under the
       County's Inclusionary Housing Program/Housing Opportunities
       Program.


                                H-4-4


PAGE 70 Show Image
           In addition to these government programs to encourage
           conservation, there are private property maintenance agreements
           contained in condominium and planned-unit-development covenants,
           conditions, and restrictions (CC&Rs). According to the Census
           Bureau, 17 percent of all housing units in the unincorporated
           county area were identified as condominiums in 1980. It is
           estimated that the majority of residential units built since then
           are also covered under CC&Rs, and this trend is expected to
           continue. These private maintenance agreements augment the
           County's conservation efforts because they require continuing
           maintenance and repair of the housing stock.

C.  Policies

    The following policies are intended to provide direction in
    decision-making and development of specific programs in support of the
    goals and quantified objectives.

    1. Housing Supply and Residential Choice Policies

       1-A  To continue to support programs aimed at making affordable
            housing units available at a monthly cost no more than 25 percent
            to 30 percent of each households gross monthly income, depending
            on income category. (See definitions in Appendix D, Housing
            Opportunities Program, Policies, and Guidelines.)

       1-B  To continue to encourage coordination and uniformity in all
            regulations relating to housing in order to minimize processing
            times and costs.

       1-C  To continue to provide opportunities for new construction methods
            and housing types to increase the supply of housing for all
            segments of the population.

       1-D  To continue to implement existing financing mechanisms and
            stimulate the development of innovative financial techniques that
            will reduce housing cost.

       l-E  To continue to seek ways to reduce development processing and
            review time by County government to the maximum extent feasible,
            with special processing assistance for affordable housing
            projects.

       1-F  To maintain effective mechanisms for ensuring that the maximum
            feasible housing benefit is realized from public funds used to
            assist builders or consumers of housing and to investigate
            mechanisms to recapture public funds when directly subsidized
            units are prematurely sold or otherwise withdrawn from the
            subsidizing program.

       1-G  To consider a zoning code amendment to allow transitional housing
            facilities as a permitted use in appropriate zoning districts
            without requiring a use permit.


                                  H-4-5


PAGE 71 Show Image
1-H  To continue to pursue land use policies and regulations which
     encourage manufactured housing as a means of reducing housing
     costs.

1-I  To consider a zoning code amendment to amend selective existing
     commercial districts to allow residential use.

1-J  To consider a density incentive for apartments, i.e., grant
     apartments a higher density than condominiums so apartment
     builders can better compete for available land.

1-K  To consider establishing a minimum density "floor" below which
     land suitable for apartments could not be developed.  The intent
     is to discourage the down-zoning of such parcels to lower density
     single-family residential uses.

i-L  To continue to utilize County mortgage revenue bond financing or
     private sector lending for economically feasible apartment
     construction.

i-M  ~o continue to coordinate infrastructure financing measures in
     order to reduce housing construction costs and minimize the
     financial burden on homeowners and renters.

1-N  To continue to pursue all available state and federal financial
     assistance for the provision of very low-, low- and
     moderate - income housing.

1-0  To continue to plan and zone land to encourage a wide variety of
     neighborhoods and housing opportunities affordable to the
     county's labor force.

1-P  To continue to coordinate the location of major housing
     developments, particularly affordable housing and multi-family
     units, with existing and proposed highway and transit routes,
     major employment centers, shopping facilities, and other
     services.

1-Q  To continue to encourage residential infill development to make
     efficient use of existing public facilities.

1-R  To continue to support programs that address the housing needs of
     special groups such as the elderly; physically, mentally and
     developmentally disabled; farmworkers; those in need of temporary
     shelter; single-parent families; military personnel; large
     families; and refugees.

1-S  To develop an in-lieu fee policy as an alternative method of
     complying with affordable housing requirements.

1-T  To work with the BIA and other housing advocates to support
     increased state and federal tax incentives to encourage
     low- income housing construction and handicapped-accessible housing.


                           H-4-6


PAGE 72 Show Image
    1-U  To investigate the feasibility of participating in a regional
         employee/housing linkage program based on a survey of employee
         needs to assist in providing housing affordable to very-low and
         low- income workers.

    1-V  To preserve the affordability of existing low-income multi-family
         rental units assisted through federal, state, and local programs
         which have expiring affordability restrictions and which are at
         risk of converting to market rate units.

    i-W  To identify sites that are now available or easily made available
         for transitional shelters for homeless families.

2.  Equal Housing Opportunity Policies

    2-A  To continue to support actions to reduce regulatory constraints
         to housing which impede equal housing opportunities.

    2-B  To continue affirmative action efforts to provide equal
         opportunity in housing.

    2-C  To continue to support adequate relocation assistance to persons
         and families displaced by demolition or conversion of residential
         structures.

    2-D  To continue to encourage builders to provide ground floor units
         of rental and condominium projects which have one wheelchair
         accessible entrance and at least one bathroom that accommodates
         wheelchairs by:

         o Providing incentives and assistance to builders willing to
           build such units.

         o Distributing information to builders and offering them
           technical support in the design of adaptable/accessible
           building units.

         o Undertaking a demonstration project with a willing builder and
           documenting and disseminating the results to other builders.

    2-E  To consider support of just cause eviction legislation at the
         state and federal level.

3.  Housing Conservation and Neighborhood Preservation Policies

    3-A  To continue to promote the adequate provision of public
         facilities for all residents, especially to those whose needs are
         greatest.

    3-B  To continue to promote new housing that conserves land and
         resources and is cost efficient.


                               H-4-7


PAGE 73 Show Image
       3-C  To continue to support programs designed to encourage the
            maintenance and minor repair of structurally sound housing units
            to prevent their deterioration.

       3-D  To continue to support programs designed to rehabilitate
            deteriorated units

       3-E  To continue to promote development design which provides for
            maximum possible residential security and safety.

       3-F  To continue to ensure that the conversion of rental units or
            mobile home parks to ownership or other uses occurs in a
            responsible manner to protect the rights of both owners and
            tenants.

       3-G  To continue to encourage voluntary compliance with
            weatherproof mg measures to reduce utility costs, specifically:
            water heater insulation blankets, low-flow shower heads, ceiling
            insulation, caulking and weather stripping, and duct insulation.

   4.  Housing Cooperation and Coordination Policies

       4-A  To continue to monitor and participate in the activities of local
            governments, citizen groups, and the private sector, as
            appropriate, to encourage the provision of adequate housing for
            all households.

       4-B  To continue to encourage coordination of housing, community, and
            economic development activities among local governments in the
            county's housing market area.

       4-C  To continue to encourage recommendations from housing industry
            professionals in identifying opportunities for cost savings which
            will not adversely affect public health and safety.

       4-D  To support the establishment of a countywide housing task force
            and trust fund to assist in the development of transitional
            hbusing for homeless families; to assist the production of
            housing for very-low and low-income households; and to support
            the efforts of existing local and regional non-profit housing
            development corporations to implement this policy. Potential
            funding sources could include CDBG monies, employment-housing
            linkage fees, hotel bed taxes, recapture of public funds,
            affordable housing in-lieu fees, state/federal grants, private
            donations, etc.


BJ:hdCHAP4 .WP (1/4/96)


                                  H-4-8


PAGE 74 Show Image
CHAPTER FIVE:   IMPLEMENTATION PROGRAMS

A.  Underlying Principles

    The Orange County Housing Element is based on the following basic
    principles which govern its implementation programs.

    1. The General Plan establishes the basic tenet of the Housing Element
       specifically, a balanced community concept that maximizes the
       availability of housing opportunities. A primary focus of County
       policy is to facilitate an adequate total supply of housing.

    2. The Housing Element must be framed in such a way that it allows the
       public sector and the private sector to contribute to solutions by
       doing what each does best.

    3. It is important to focus energies toward satisfying housing need on
       what can be done most effectively now and programming activities
       beyond existing capability for later resource commitment and
       attention.

    4. It is essential to conserve the valuable existing housing stock
       through a high degree of responsibility on the part of individual
       owners for maintaining the condition of existing housing, regardless
       of age.

    5. It is essential to recognize that it has never been possible to build
       new for-sale housing at affordable prices for all income levels and
       that housing for those households with lower incomes has traditionally
       been provided by the resale and rental market and by various
       government subsidy programs.

    6. Orange County's housing and economic market forces should be used to
       the maximum extent to reach goals dealing with affordable housing.

    7. The major thrust of investment of public fund in solving housing
       problems should be targeted specifically to those households having an
       annual income of less than 80 percent of the county's median family
       income.

B.  Program Descriptions

    In order to make adequate provision for the housing needs of all economic
    segments of the community and meet or exceed the quantified objectives set
    forth in Chapter 4, the programs described on the following pages have
    been established.


                                   H-5-l


PAGE 75 Show Image
1.  Aftercare Rental Assistance Program

    a. Action:  Provide rental assistance to handicapped and disabled
       very-low-income persons.

    b. Discussion: This is the only rental assistance program being
       implemented to serve disabled households earning less than 50% of the
       county median income (as established by HUD). The Aftercare Program
       was established through the state Department of Housing and Community
       Development (state HCD) in conjunction with the state Department of
       Health.  Federal funding is provided to state HCD from HUD. The
       program operates in the same manner as the Section 8 Existing Rental
       Assistance Program (see page H-5-21). Rental assistance is provided
       to eligible handicapped persons as an alternative to institutional
       living.  A total of 166 units are administered by OCHA countywide
       under this program, with 23 of these in the unincorporated area.

    c. Source of Funds:          HUD/State HCD

    d. New or Existing Program:  Existing

    e. Implementation Schedule:  Ongoing

    f. Responsible Agency:       Orange County Housing Authority

    g. Program Objectives:       (1) Maintain and increase, if possible, the
                                     availability of rental assistance to
                                     handicapped very-low-income persons.
                                     The specific objective for the 1989-94
                                     period is 23 units based on current
                                     funding levels.


                                    H-5-2


PAGE 76 Show Image
2.  Block Grant Home Improvement Program

    a. Action:  The Home Improvement Program of the Housing and Community
       Development Program provides low-interest loans and grants to
       owner-occupants and investor-owners to rehabilitate residential units
       and owner-occupied mobile homes in unincorporated county areas and in
       cities contracting with the County for administration of their
       rehabilitation programs.  Cities currently contracting with the County
       are Cypress, Dana Point, Laguna Beach, La Palma, Los Alamitos, Mission
       Viejo, Placentia, San Clemente, Seal Beach, Stanton, Tustin, and Yorba
       Linda.  Specific unincorporated areas that receive housing services
       are Anaheim Island, Ball/Brookhurst, Colonia Independencia, Southwest
       Anaheim, El Toro, El Modena, Midway City, Olive Island, Modjeska
       Canyon, Trabuco Canyon, Silverado Canyon, Santa Aria Heights, and West
       Garden Grove Island.  Additionally, any eligible low/moderate-income
       family living in any unincorporated area may receive assistance from
       the `1spot1 rehabilitation program to correct code or incipient code
       violations.

    b. Discussion: Many tract homes in Orange County are over twenty years
       old; rehabilitation of homes is needed and will continue to be needed.
       Also, given the excessive cost of housing, families that would
       formerly have "moved upward" are having to remain in their homes.
       Energy conservation measures will continue to be a component of all
       home improvement projects.  Rehabilitation of multi-family units is a
       relatively new program, and it will continue to grow in the next five
       years.

    c. Source of Funds:          HUD/CDBG
                                 Lending Institutions

    d. New or Existing Program:  Existing

    e. Implementation Schedule:  Ongoing

    f. Responsible Agency:       EMA/HCD

    g. Program Objectives:       Prevent deterioration of neighborhoods and
                                 preserve existing affordable housing.

                                 Approximately 850 rehabilitated low- and
                                 very-low-income units are expected to be
                                 completed under this program during the
                                 5-year time frame of the element.


                                    H-5-3


PAGE 77 Show Image
3.  Community Development Block Grant (CDBG) Program

    a. Action:  The Community Development Block Grant Program is expedited
       and augmented so that the funds are leveraged or used to the greatest
       possible benefit in meeting low- and very-low-income housing needs.

    b. Discussion: The Community Development Block Grant Program is an
       important part of the County's efforts in meeting low- and
       very-low-income needs.  This program is administered by the EMA/HCD
       Program Office.   CDBG funds are utilized to provide low-income housing
       rehabilitation, community improvements, land writedowns, and .other
       incentives for new low- and very-low-income housing through
       public/private cooperative agreements.

    c. Source of Funds:           Federal Government (HUD)

    d. New of Existing Program:   Existing

    e. Implementation Schedule:   Ongoing

    f. Responsible Agency:        EMA/HCD

    g. Program Objectives:        (1) Construct and rehabilitate housing for
                                     low- and very-low-income households.
                                     Approximately 850 rehabilitated and 500
                                     newly constructed low- and
                                     very-low-income units are anticipated
                                     to be accomplished under this program
                                     during the 5-year time frame of the
                                     element.

                                  (2) Provide community improvements to
                                     prevent neighborhood deterioration.


                                    H-5-4


PAGE 78 Show Image
4.  Consistency Review Program

    a. Action:  Preparation and distribution of General Plan consistency
       manual and subsequent updates and revisions. The manual provides
       uniform basis for General Plan consistency determinations and
       facilitates streamlined processing of housing development.

    b. Discussion:   State law requires that private and public projects be
       consistent with the General Plan.  As the consistency process is
       simplified, development processing time (and holding costs) can be
       minimized.

    c. Source of Funds:           General Fund

    d. New or Existing Program:   Existing

    e. Implementation Schedule:   Ongoing

    f. Responsible Agency:        EMA/Planning

    g. Program Objectives:        (1) Ensure that discretionary approvals are
                                      consistent with the General Plan and
                                      zoning regulations.

                                  (2) Minimize permit processing time.


                                    H-5-5


PAGE 79 Show Image
5.  Countywide Homeless Family Transitional Housing Initiative

    a. Action:  Explore the feasibility of creating a regional pool of CDBG
       funds for the purpose of developing and assisting transitional housing
       programs for homeless families.

    b. Discussion: Homeless families in need of temporary shelter are a
       growing segment of the county's special housing needs.  This program
       would explore the feasibility of a countywide approach to the problem
       by pooling financial resources and coordinating assistance efforts.
       The purpose of this program would be to provide low-cost shelter where
       families could stay a few months while accumulating enough savings to
       move into traditional rental housing.

       For example, if the county and each block grant entitlement city were
       to set aside 7.5 percent of its annual CDBG budget, a total of about
       $1.4 million would be available each year to support these programs.
       State law requires local agencies to address the needs of these
       homeless families.   Since the problem does not follow jurisdictional
       boundaries, this countywide approach would enable each jurisdiction to
       provide meaningful assistance toward addressing this need.

    c. Source of Funds:          CDBG

    d. New of Existing Program:  New

    e. Implementation Schedule:  1989-90

    f. Responsible Agency:       CAO
                                 EMA-Housing/Community Development Office

    g. Program Objectives:       (1) Establish a countywide fund for
                                     assisting the development of
                                     transitional housing facilities.


                                    H-5-6


PAGE 80 Show Image
6.  Development Processing System Review

    a. Action:  Review and evaluate development processing procedures and
       standards on a regular basis in order to minimize delays or
       unnecessary requirements that can result in higher development costs.

    b. Discussion:   Cutting processing time and eliminating unnecessary
       requirements will reduce the developer's holding costs for land,
       design, engineering, and the like which, in turn, directly affect the
       final costs of the housing product.

       Efforts that the County has already undertaken include creation of the
       Development Processing Center, a "one stop shop" for all development
       permits and information, and a simplified Consolidated Planning
       Application Form.  The County also formed the Development Processing
       Review Committee, made up of local building industry representatives
       and County management, for the purpose of reviewing new procedures and
       regulations prior to their adoption and recommending modification or
       deletion of unnecessary standards.

    c. Source of Funds:           General Fund
                                  Development Fees

    d. New or Existing Program:   Existing

    e. Implementation Schedule:   Existing

    f. Responsible Agency:        EMA/Planning (lead)

                                  EMA/Regulat ions
    g. Program Objectives:        (1) Minimize processing time for
                                      development permits.

                                  (2) Modify or eliminate unnecessary
                                      requirements and standards that
                                      increase housing costs.


                                    H-5-7


PAGE 81 Show Image
7.  Federal Housing Programs

    a. Action:  The County of Orange takes every step necessary to encourage
       and connect the developer with the most feasible of the currently
       available housing programs of the federal government which meet the
       needs of Orange County existing and future residents.  The County
       assists developers in pre-design of projects to assure compliance with
       federal minimum property standards.

    b. Discussion:   HUD/FHA currently has a number of programs which can be
       used if the cost of housing can be brought into the affordable range.
       Sections 203(b), 235, 245, 223(f), and the standard 202 and 207 are
       all available.  Except for the 203(b) and 235 programs, all processing
       is accomplished in the Los Angeles area office.

       Other large federal programs such as CDBG and Section 8 are described
       separately in this Chapter.

    c. Source of Funds:           Private Mortgage Lenders
                                  Federal Housing Programs

    d. New or Exiting Program:    Existing

    e. Implementation Schedule:   Ongoing

    f. Responsible Agency:        EMA/HCD

    g. Program Objectives:        Provide financing for purchase,
                                  construction, or rehabilitation of
                                  low- income housing.


                                    H-5-8


PAGE 82 Show Image
8.  Homeless Issues Coordination

    a. Action:  The CAO, with the assistance of the Interagency Coordinating
       Committee, has been directed to identify a series of issues related to
       the coordination of County resources for the homeless and to submit
       conclusions to the Board of Supervisors in June of 1989.

    b. Discussion: Homelessness has become a major concern on a national
       level.  Orange County is not immune to the problem of homelessness.
       Commitment to help address this issue of concern has continued to
       increase throughout the county. The Orange County Homeless Issues
       Task Force, once a group of service providers and involved support
       organizations, has evolved into a cohesive entity with a Task Force
       coordinator, membership structure, and five-year General Plan. In
       January, representatives of the Building Industry Association (BIA)
       began meeting with representatives of Board offices and County staff
       to follow through on their commitment of philanthropic involvement.
       The 1988-89 Orange County Grand Jury identified homeless families as a
       problem which warranted study and recently released a report with
       recommendations on the subject.

       With the evidence of community and private sector commitment and
       governmental participation, it is time for the County government to
       assess present and potential resources and to direct its energies
       toward better coordination.  The County cannot and should not assume
       the full responsibility of serving the homeless. However, it must be
       part of an integrated partnership with nonprofit providers,
       governmental entities, private sector, and others to serve the
       homeless people.  Orange County government has a record of creative
       partnerships which lead to noteworthy accomplishments.

    c. Source of Funds:          General Fund

    d. New or Existing Program:  New

    e. Implementation Schedule:  1989-90

    f. Responsible Agency:       CAO

    g. Program Objectives:       (1) Restructure the Interagency
                                     Coordinating Committee, established on
                                     5/22/84, to include, but not be limited
                                     to, directors from HCA, SSA, CSA, EMA,
                                     and representation from all Board
                                     offices.

                                 (2) To ensure effective coordination the
                                     CAO will serve as Chairman and
                                     designate a staff member to serve as
                                     the County representative on homeless
                                     issues.

                                 (3) Effectively coordinate the County's
                                     limited resources to better serve the
                                     homeless.


                                    H-5-9


PAGE 83 Show Image
9.  Housing Development Finance Program

    a. Action:  Initiated in the spring of 1988, this new Orange County
       Housing Authority (OCHA) activity is designed to stimulate the
       development and preservation of low-income rental housing throughout
       Orange County.

    b. Discussion: The program is based on the Housing Action Strategy, a
       long range framework of OCHA objectives, guidelines, financing
       approaches, and program initiatives approved by the Board of
       Commissioners in February, 1988. The Housing Development Finance
       Program offers financial and technical assistance aimed at producing
       and/or preserving affordable rental housing opportunities, as follows:

       *financial assistance in the form of secondary loans or loan
       guarantees to developers of privately-owned rental housing in which a
       portion of the development is reserved for very-low-income tenants,
       and

       *technical assistance to OCHA member jurisdictions and developers
       regarding available techniques and resources (such as tax credits, tax
       exempt bonds, and redevelopment funds) which support affordable
       housing development.

    c. Source of Funds:          OCHA's surplus operating reserve funds
                                 (accumulated as a result of efficient
                                 management of all OCHA programs).

    d. New or Existing Program:  New

    e. Implementation Schedule:  1988 start-up

    f. Responsible Agency:       OCHA

    g. Program Objectives:       (1) Provide loans to secure new or existing
                                     rental units affordable to
                                     very-low-income households.

                                 (2) Provide ongoing technical assistance to
                                     OCHA's 25 member jurisdictions and
                                     local developers seeking financial
                                     resources for affordable housing.


                                    H-S-b


PAGE 84 Show Image
10.  Housing Discrimination/Aff irmative Action

     a. Action: The County continues to fund a strong and active Fair
        Housing Council, Human Relations Commission, and other organizations
        concerned with the problems of low- and moderate-income households in
        the county.

     b. Discussion: These organizations serve as a necessary county-balance
        insofar as county housing problems are concerned.

     c. Source of Funds:          Community Development Block Grant
                                  Other Subventions

     d. New or Existing Program:  Existing

     e. Implementation Schedule:  Ongoing

     f. Responsible Agency:       EMA/HCD (lead)
                                  Orange County Fair Housing Council
                                  Orange County Human Relations Commission

     g. Program Objectives:       Prevent discrimination and promote equal
                                  housing opportunities.


                                   H-5-l1


PAGE 85 Show Image
11.  Housing Element Periodic Review and Update

     a. Action:  Periodically review and update the Housing Element of the
        General Plan as required by state law.

     b. Discussion:  State Law requires each local jurisdiction to evaluate
        its Housing Element every five years to determine 1) the
        effectiveness of the element in achieving stated goals and
        objectives; 2) the progress in implementing the element's policies
        and programs; and 3) the appropriateness of the element's goals,
        objectives, policies, and programs.  As part of this effort, the
        County reexamines its housing needs; resources available for housing
        production, including the adequacy of the land inventory; and
        constraints on the conservation and development of housing.

     c. Source of Funds:           General Fund

     d. New or Existing Program:   Existing

     e. Implementation Schedule:   1989 and every five years thereafter

     f. Responsible Agencies:      EMA/Planning (lead)
                                   CAO/Bond/Capital Finance Program
                                   CAO/Forecast and Analysis Center
                                   CAO/Management and Budget
                                   EMA/HCD Program Office
                                   OCHA
                                   SSA

     g. Program Objectives:        (1) Maintain the Housing Element of the
                                       General Plan in compliance with state
                                       law.


                                    H-5-12


PAGE 86 Show Image
12.  Housing Opportunities Program

     a. Action:   A key component of the County's overall housing strategy is
        to encourage the production of market-rate housing that is affordable
        to households with incomes of 120 percent or less of the county
        median.   It is recognized that significant financial subsidies are
        generally required in order for new very-low-income housing to be
        economically feasible.   The primary objective of the Housing
        Opportunities Program is the production of 25 percent of all new
        housing units within the affordable category.

     b. Discussion:  A full description of the Housing Opportunities Program
        is included in Appendix D.

     c. Source of Funds:

        (1)  For Housing            Private Mortgage Lenders
             Development:           HUD/FHA Revenue Bonds
                                    California Housing Finance Agency (CHFA)

        (2)  For Program Expertise  General Fund
             and Capability:        Community Development Block Grant

     d. New or Existing Program:    Existing

     e. Implementation Schedule:    Ongoing

     f. Responsible Agency:         EMA/Planning (lead)

                                    CAO/Bond/Capital Finance Program
     g. Program Objectives:         (1)  To ensure that at least 25% of new
                                         housing units in the unincorporated
                                         area are affordable to households
                                         with incomes of 120 percent or less
                                         of the county median, further
                                         prescribed as follows:

                                       - 10% Low (80% or less of median
                                         income)

                                       - 10% Moderate I (81-100% of median
                                         income)

                                       - 5% Moderate II (101-120% of median
                                         income)

                                   (2) Implement appropriate measures to
                                       ensure that permit processing time for
                                       affordable housing developments is
                                       minimized.

                                   (3) Periodically review codes and standards
                                       to ensure that these requirements do


                                    H-5-13


PAGE 87 Show Image
     not pose an unreasonable obstacle to
     affordable housing production.

(4)  Periodically review General Plan and
     zoning designations to ensure that
     sufficient land is designated to meet
     affordable housing production
     objectives.

(5)  Provide sufficient incentives to ensure
     that affordable housing productions is
     financially feasible.


 H-5-14


PAGE 88 Show Image
13.  Housing Referral Directory

     a. Action:   Maintain a resource directory of housing programs and
        services to assist the consumer in securing housing services.

     b. Discussion:  The referral directory provides concise information
        regarding current services available in the county and cities.
        Primarily targeted for renters and homeowners of low to median
        income, it has special emphasis on meeting the needs of the homeless.
        The directory serves as a tool for persons working with the public,
        enabling them to answer questions and direct inquiries to the proper
        sources of service.

     c. Source of Funds:           Orange County Housing Authority

     d. New or Existing Program:   Existing

     e. Implementation Schedule:   Ongoing

     f. Responsible Agency:        OCHA

     g. Program Objectives:        (1) Maintain a resource directory of

                                       housing programs and services.


                                    H-5-15


PAGE 89 Show Image
14. Infrastructure Provision and Financing

    a.  Action: Coordination of infrastructure planning, financing, and
        construction in order to minimize the potential financial burden on
        hoineowners and renters. Two activities will effectuate this
        objective:

        (1)  Analyze existing and potential infrastructure financing measures
             for their ability to meet infrastructure needs without an
             adverse impact on housing costs and modify the existing
             infrastructure planning and financing process as necessary.

        (2)  Evaluate measures which reduce infrastructure demands and,
             consequently, the need for public facilities to serve
             residential development.

    b.  Discussion:  The County's ability to fund or finance the
        infrastructure necessary for residential development through the
        general property tax levy has diminished in recent years. In order
        to satisfy existing and future infrastructure needs, the County
        should consider measures which address these needs without causing a
        significant increase in housing costs.

    c.  Source of Funds:          General Fund
                                  HCD Block Grant

    d.  New or Existing Program:  Existing.  Expand effort and commit new
                                  resources to program.

    e.  Implementation Schedule:  Ongoing

    f.  Responsible Agencies:     CAO/Bond/Capital Finance Program (lead)
                                  EMA/Planning

    g.  Program Objectives:       (1)  Minimize infrastructure costs for
                                       residential development.

                                  (2)  Coordinate and streamline
                                       infrastructure financing programs.


                                   H-S-16


PAGE 90 Show Image
15. Intergovernmental Advocacy with HUD/FHA

    a.  Action: Persuasive and strong effort is undertaken by the County of
        Orange, its staff, congressional representatives, and lobbyist to
        persuade HUD/FHA to:

        (1)  Make multi-year commitments of units for large planned
             communities which have or will make a substantial commitment to
             affordable housing.

        (2)  Liberalize applicability of minimum property standards for local
             flexibility to avoid features which may increase the costs of
             producing the units rather than achieve a more affordable unit.

        (3)  Streamline processing of existing and available programs so that
             developers are less frustrated and more inclined to use the
             subsidy program.

        (4)  Return processing of a wider range of programs to the Santa Ana
             FHA insuring office.

        (5)  Assist in funding preparation of a community-wide economic and
             environmental study to avoid lengthy project reviews.

    b.  Discussion: A great number of units were federally financed and
        mortgage loan guarantees made in Orange County since 1950. This
        intergovernmental advocacy will assist cooperating developers with
        using a variety of tools to build and produce affordable housing.
        The local program coordination will assist in dispersing the units in
        a logical way to meet the most serious needs.

    c.  Source of Funds:          Developer Fees
                                  General Fund
                                  CDBG

    d.  New or Existing Program:  Existing

    e.  Implementation Schedule:  Ongoing

    f.  Responsible Agency:       Board of Supervisors with EMA - H/CD

                                  support.
    g.  Program Objectives:       Maximize the availability of HUD/FHA
                                  programs and funding in Orange County.


                                   H-5-17


PAGE 91 Show Image
16. Land Acquisition for Housing

    a.  Action:  Inventory and make available surplus, publicly-owned lands
        (including state and federal owned land) for low and moderate income
        housing projects.  Provide or otherwise make available sites or land
        acquired previously for development of affordable housing through the
        use of all available funds as appropriate and feasible. Aggressively
        pursue a land banking program to provide sites for development or for
        which trades could be consummated to provide better located low- and
        moderate- or very-low-income housing sites.

    b.  Discussion: The strategic acquisition of land for housing for low-
        and moderate- and very-low-income households should be given a high
        priority to augment the Housing Opportunities Program. The priority
        sites are those already in public ownership which are surplus or can
        be reused. For instance, undeveloped land in tax default or which is
        surplus, might be made available. The local HCD Program also
        addresses the need for providing sites.

        Orange County General Services Agency currently reviews surplus sites
        with interested County offices to determine whether any are
        appropriate for development of low-income housing.

    c.  Source of Funds:          CDBG
                                  Orange County Development Agency

    d.  New or Existing Program:  Existing

    e.  Implementation Schedule:  Ongoing

    f.  Responsible Agency:       EMA/HCD (lead)
                                  GSA

    g.  Program Objectives:       (1) Make surplus government-owned property
                                      available for low-income housing
                                      development where feasible.

                                  (2) Acquire and hold property to be used
                                      for low-income housing development.


                                   H-5-18


PAGE 92 Show Image
17.  Neighborhood Development and Preservation Program

     a. Action: The Orange County Neighborhood Development and Preservation
        Project was adopted by the Board of Supervisors/Development Agency
        Board on June 22, 1988.  this project will bring to bear the tools of
        California Redevelopment Law to address the community needs of
        thirteen areas within unincorporated Orange County.

     b. Discussion:  These areas contain the largest concentrations of
        very-low-, low-, and moderate-income populations.  The funds from
        this project have been targeted for community preservation and
        improvement.  This will include activities directed toward
        facilitating enhancement, rehabilitation, and repair of the existing
        housing stock, most of which is low-income, and the production of
        additional very-low-, low-, and moderate-income housing throughout
        Orange County.  This effort will greatly increase the traditional HCD
        Block Grant efforts in these areas and allow for new and expanded
        projects to make housing opportunities available to the target
        population and other low- and moderate-income households in Orange
        County.

     c. Source of Funds:          Property tax subventions
                                  Development Agency bonds
                                  Other debt

     d. New or Existing Program:  New

     e. Responsible Agencies:     EMA/HCD Program Office

                                  CAO/Bond/Capital Finance Program
     f. Implementation Schedule:  Ongoing

     g. Program Objectives:       Provide funding assistance for very-low-,
                                  low-, and moderate-income housing
                                  rehabilitation and construction, and
                                  neighborhood preservation efforts.
                                  Approximately 200 rehabilitated units and
                                  50 new very-low-income units are expected
                                  to be accomplished under this program.


                                   H-5-19


PAGE 93 Show Image
18.  Residential Energy and Water Conservation Retrofit

     a. Action:  Establish an energy and water conservation program for
        existing residential units in Orange County. This objective will be
        effectuated through the following actions:

        (1)  Monitoring of existing and proposed utility and water district
             program

        (2)  Coordination of existing housing and community development
             activities with energy and water conservation programs for
             existing residential units.

        (3)  Development of a comprehensive utility cost reduction program
             utilizing utility, waster district, and County staff and
             resources, if existing utility programs are not effective.

     b. Discussion: Rising utility bills have caused an increase in the
        monthly costs of owning or renting a home in Orange County.  As a
        result, a utility cost reduction program is an essential component to
        efforts to reduce or maintain monthly housing costs for Orange County
        residents.

     c. Source of Funds:          General Fund
                                  HCD Block Grant
                                  Potential utility, waster district, and
                                  State funding or assistance

     d. New or Existing Program:  Existing.  Integrate efforts and commit
                                  existing resources to program.

     e. Implementation Schedule:  Action 1 and Action 2:  1983.  Action 3:
                                  Uncertain depends on effectiveness of
                                  existing utility programs.

     f. Responsible Agencies:     EMA and CAO

     g. Program Objectives:       Minimize utility costs for existing

                                  residential units.


                                   H-5-20


PAGE 94 Show Image
19.  Section 8 Existing Rental Assistance Program

     a. Action:   Provide rental assistance to very-low-income households.

     b. Discussion:   This is the primary program serving families earning
        less than 50% of the county median income.

        The Orange County Housing Authority (OCHA) offers affordable rental
        housing to qualified county residents through both the Section 8
        Certificate and Section 8 Voucher programs.  Both programs rely on
        the private sector to supply rental units for very-low-income
        families, the handicapped, and elderly. The source of funding is the
        federal Department of Housing and Urban Development (HUD), which is
        used to supplement rent payments of program participants. Payments
        are processed by the Housing Authority and forwarded directly to
        landlords for the subsidized portion of the rent. HUD funding is
        based in population needs and administrative effectiveness of the
        local housing agency.  OCHA administers Section 8 programs on behalf
        of the county unincorporated area and the 24 cities that do not have
        independent housing authorities.   (Anaheim, Brea, Garden Grove, and
        Santa Ana maintain separate programs.)

        In order to participate in the Certificate or Voucher programs,
        tenants may earn no more than 50 percent of the HUD-determined median
        income, adjusted for family size (for Fiscal 1989, $46,900 for a
        family of four).  Families who are determined to be eligible for
        rental assistance are issued either a certificate or a voucher,
        depending on their choice and funding availability. As of January 1,
        1989, 5,200 tenants countywide were being assisted by OCHA under the
        Section 8 Certificate Program. By comparison, 440 tenants were being
        assisted under the Section 8 Voucher Program.  Vouchers were offered
        to applicants from OCHA1s waiting list for the first time in April
        1987.

        Section 8 Certificate Program

        Landlords who are willing to offer units within HUD-established fair
        market rent limits and meet certain minimum property standards are
        eligible to participate in this program. Landlords list their vacant
        units with the Housing Authority and select tenants who have received
        a certificate.  Tenants pay 30 percent of their income toward rent
        with the difference paid by OCHA.  Under this program, tenants are
        free to move to any qualified unit within OCHA1s jurisdiction.  As of
        January 1, 1989, about 340 Certificate families resided in the county
        unincorporated area.


        Section 8 Voucher Program

        The Voucher Program differs from the Certificate Program in three
        significant ways:  1) there are no rent limits established by HUD for
        the program; 2) families may pay either more or less than 30 percent
        of their net monthly income for rent, but never less than 10 percent


                                   H-5-21


PAGE 95 Show Image
    of their gross income; 3) families may move to any jurisdiction that
    participates in the Voucher Program.

c.  Source of Funds:           Federal Government (HUD)

d.  New or Existing Program:   Existing

e.  Implementation Schedule:   Ongoing

f.  Responsible Agency:        Orange County Housing Authority

g.  Program Objectives:        (1) Maintain and increase, if possible, the
                                   availability of rental subsidies to
                                   very-low-income families. Specific
                                   objectives for the 1989-94 period area:

                                   (a) Section 8 Certificates: 353

                                   (b) Section 8 Vouchers: 24


                                H-5-22


PAGE 96 Show Image
20.  State of California Housing Programs

     a. Action: The County of Orange uses all available California
        Department of Housing and Community Development and California
        Housing Finance Agency programs in the systematic approach to solving
        the County's housing problem.

     b. Discussion:  The state housing programs and activities are more
        limited in scope and funding than federal housing programs. One
        organization closely involved in housing is the California Department
        of Housing and Community Development (CHCD). It currently sponsors
        or operates the Urban Predevelopment Loan Fund, Home Management
        Training and Counseling, and the Aftercare Rental Assistance program
        directed at disabled persons.  The other state agency directly
        involved with housing is the California Housing Finance Agency (CHFA)
        which currently offers direct loans and purchase of single-family
        mortgages.

        Specific state programs the County will apply for will be determined
        upon availability of the programs and the specific need of each
        project.

     c. Source of Funds:          California Housing & Community Development
                                  Department
                                  California Housing Finance Agency

                                  The County is also pursuing State grant
                                  funds under the Proposition 77 and 84 bond
                                  program.

     d. New or Existing Program:  Existing

     e. Implementation Schedule:  Ongoing

     f. Responsible Agency:       EMA/HCD
                                  OCHA

     g. Program Objectives:       (1)  Provide financial assistance for low-
                                       and moderate-income housing.

                                  (2)  Pursue funding for homeless assistance.


                                   H-5-23


PAGE 97 Show Image
21.  Stewart McKinney Homeless Assistance Act

     a. Action: This act made a limited amount of federal funds available to
        help improve the quality of emergency shelters for the homeless, make
        available additional emergency shelters, and meet the costs of
        operating emergency shelters and providing essential social services
        to homeless individuals.  This act helps individuals to have access
        not only to safe and sanitary shelter, but also to the supportive
        services and other types of assistance they need to improve their
        situations.

     b. Discussion:  These funds first became available in 1987.  The County
        of Orange has received 100% of its allocation fixed by HUD and has
        distributed these monies to provide non-profit agencies and to the
        Armory Shelter effort sponsored by the County. These funds are
        administered by EMA/HCD and the United Way.

     c. Source of Funds:          HUD under McKinney Act

     d. New or Existing:          New

     e. Responsible Agency:       EMA/HCD
                                  United Way

     f. Implementation Schedule:  On-going

     g. Program Objectives:       Provide development and operation funding
                                  assistance for emergency shelters for the
                                  homeless.


                                   H-5-24


PAGE 98 Show Image
22.  Tax-Exempt Housing Revenue Bonds

     a. Action:   The County continues to use its authority to issue tax
        exempt revenue bonds to finance both single- and multiple-family
        developments which provide defined affordable housing.

     b. Discussion:  This is an existing program.  Over $1.6 billion in bond
        proceeds have been issued to finance more than 11,000 affordable
        units.   Subject to federal and state legislation and bond market
        conditions, the program can continue to support the Housing Element's
        new construction policies to increase the supply and affordability of
        modestly priced for-sale housing and apartments.

     c. Source of Funds:           Tax-exempt single-family mortgage revenue
                                   bond issues

                                   Tax exempt apartment revenue bond issues

     d. New or Existing Program:   Existing

     e. Implementation Schedule:   Ongoing, conditioned upon federal and state
                                   authority and the status of the bond
                                   market.

     f. Responsible Agencies:      CAO/Bond Capital Finance Program

     g. Program Objectives:        (1) Provide tax-exempt bond financed
                                       mortgages for low- and moderate-income
                                       first-time home buyers.

                                   (2) Provide tax-exempt bond financed loans
                                       to developers of mixed-income, rental
                                       housing, which includes at least 20
                                       percent very-low-income units.


                                    H-5-25


PAGE 99 Show Image
23.  Preservation of Assisted Rental Units Program

     a. Action:  Initiated in 1993, as required by Government Code 65583,
        this program is designed to provide for the continued affordability
        of low-income, multi-family rental units which received governmental
        assistance.  Projects included in this program are those which
        received assistance through any federal or state programs, the
        County's Multi-family Housing Revenue Bond Program, the County's
        Inclusionary Housing Program/Housing Opportunities Program,
        redevelopment programs, and projects which received a density bonus
        with direct governmental financial contribution per Government Code
        Section 85916.  The program includes an inventory of assisted
        multi-family rental units with restrictions expiring during the next
        10-years.  This inventory will be updated as part of each 5-year
        comprehensive Housing Element update.

     b. Discussion:  A full description of this program is included in
                     Appendix G.

     c. Source of Funds:          Federal and State Housing Programs
                                  OCHAs Surplus Operating Reserve
                                  Orange County Development Agency
                                  Tax Exempt Multi-family Revenue Bonds

     d. New or Existing Program:  New

     e. Implementation Schedule:  Ongoing, dependent on when affordability
                                  restrictions on individual projects expire

     f. Responsible Agency        EMA/Housing and Redevelopment
                                  Orange County Housing Authority
                                  Orange County Development Agency
                                  CAO/Public Finance and Advocacy
                                  EMA/Advance Planning Division

     g. Program Objectives:       (1)  Maintain an inventory of multi-family
                                       rental projects which receive
                                       governmental assistance and which have
                                       expiring affordability restrictions.

                                  (2)  Utilize all potential funding sources
                                       and strategies to ensure the continued
                                       affordability of these units (see
                                       Appendix G).


BJ:hdCHAP5 .wP (1/4/96)


                                    H-5-26


PAGE 100 Show Image
APPENDIX A


PAGE 101 Show Image


PAGE 102 Show Image
                                APPENDIX A
                           LIST OF ABBREVIATIONS


AC     Acre

AFIS   Areawide Fiscal Impact System

AHIS   Affordable Housing Information Supplement

AHIUP  Affordable Housing Incentive Use Permit

AMR    Annual Monitoring Report

AQMD   Air Quality Management District

AP     Area Plan

ARB    Air Resources Board (State)

B/S    Board of Supervisors

BIA    Building Industry Association

CAA    Community Analysis Area

CAO    County Administrative Office

CDBG   Community Development Block Grant

CT     Census Tract

CEQA   California Environmental Quality Act

CDBG   Community Development Block Grant

CHFA   California Housing Finance Agency

DMP    Development Monitoring Program

DPC    Development Processing Center

DU     Dwelling Unit

EAD    Environmental Analysis Division

EIR    Environmental Impact Report (State)

EIS    Environmental Impact Statement (Federal)

EMA    Environmental Management Agency

FAC    Forecast and Analysis Center


                                   H-A-l


PAGE 103 Show Image
FHA    Federal Housing Administration

FHLBB  Federal Home Loan Bank Board

FHLMC  Federal Home Loan Mortgage Corporation ("Freddie Mac")

FNMA   Federal National Mortgage Association ("Fannie Mae")

GNMA   Government National Mortgage Association ("Ginnie Mac")

GPA    General Plan Amendment

GMP    Growth Management Program

GMPE   Growth Management Plan Element

HAP    Housing Assistance Plan (County)

H/TAG  Housing Technical Advisory Group

H/CD   Housing/Community Development

HE     Housing Element

HIP    Housing Implementation Plan/Home Improvement Program

HOHI   Home Ownership and Home Improvement

HOP    Housing Opportunities Program

HRC    Human Relations Commission

HUD    Housing and Urban Development (U.S. Department of)

IHDO   Information and Housing Development Office

IHP    Inclusionary Housing Program

LCP    Local Coastal Program

LUE    Land Use Element

MEA    Master Environmental Assessment

MMTS   Multi-Modal Transportation Study

MPAH   Master Plan of Arterial Highways

MSA    Metropolitan Statistical Area

ND     Negative Declaration

NDAPP  Neighborhood Development and Preservation Project


                                  H-A-2


PAGE 104 Show Image
NEPA   National Environmental Policy Act

NHD    New Housing Development Program

OCDA   Orange County Development Agency

OCFHC  Orange County Fair Housing Council

OCHA   Orange County Housing Authority

OCHC   Orange County Housing (Finance) Corporation

ORCHID Orange County Housing Information Directory

OCP-92 Orange County Projections-1992

PA     Planning Area

P.C.   Planning Commission

PC     Planned Community

PCMS   Planned Community Monitoring System

RFP    Request for Proposals

RHNA   Regional Housing Needs Assessment

RPAA   Residential Processing Assistance Agreement

RSA    Regional Statistical Area

SCAG   Southern California Association of Government

Sec. 8 Section 8 (of the U.S. Housing Act)

SMSA   Standard Metropolitan Statistical Area

TPM    Tentative Parcel Map

TT     Tentative Tract

UDAG   Urban Development Action Grant

UP     Use Permit

VA     Variance

ZC     Zone Change


BJ:h~PPA.WP (1/4/96)

                                   H-A-3


PAGE 105 Show Image


PAGE 106 Show Image
APPENDIX B


PAGE 107 Show Image


PAGE 108 Show Image
                                 APPENDIX B

                    LAND INVENTORY AND SITE AVAILABILITY

A.  Introduction

    The purpose of this appendix is to provide a land inventory and identify
    suitable sites for housing development as required by Government Code
    Section 65583. This discussion also highlights key aspects of the
    County's affordable housing program and provides an overview of
    significant "sites" (which at the geographical scale of the county
    includes: planned communities, redevelopment areas, and Community
    Development Block Grant areas).

B.  Residential Land Inventory

    1. Overview

       Most of the buildable land currently zoned for development in the
       unincorporated area is found within planned communities, which are
       usually large parcels planned and developed by a single landowner with
       a unified set of zoning regulations covering the entire project. For
       most of these large projects, the County requires the developer to
       submit "annual monitoring reports" (AMR's) to discuss the existing and
       anticipated level of development along with an analysis of public
       services and infrastructure availability.  Because of this unified
       planning, zoning, and monitoring system, it is relatively easy to
       maintain a land inventory for these areas as required by state housing
       element law.

       In addition to these large planned communities, which are mostly
       located in the southeastern portion of the county, there are several
       unincorporated "islands" in the older areas in the northwestern
       portion of the county. These islands are conventionally~zoned (R-2,
       C-l, etc.) and are made up of thousands of separate parcels. It is
       much more time-consuming to compile a detailed inventory of land in
       these areas.

    2. Planned Community Inventory

       Table B-l on the following page contains an inventory of existing and
       potential residential development within the planned communities in
       the Orange County unincorporated area.  This table indicates that
       there are a total of about 11,800 acres of undeveloped land zoned for
       residential use within these planned communities, which can
       accommodate about 34,000 single-family units and 50,000
       multiple-family units. The allowable density range for single-family
       development is generally less than 6 units per acre, although some
       projects may be as high as 8 to 9 units per acre. The density for
       multiple-family project is generally from 10 to 30 units per acre,
       although higher density may be permitted in designated areas such as
       urban activity centers (see discussion under "Land Use Controls" in
       Chapter 3).


                                   H-B-l


PAGE 109 Show Image
                                                                    TABLE B-i


                                                           RESIDENTIAL LAND INVENTORY
                                                       ORANGE COUNTY UNINCORPORATED AREA
                                                                       1989


                                  Existing Development                      Maximum Development                  Potential New Development
Planned Communities       SF Units SF Acres MF Units MF Acres SF Units SF Acres MF Units MF Acres SF Units SF Acres MF Units MF Acres


Alicia Creek1                  88      22.3    1,011   1,346          88     22.3       1,063  1,349             0     0         52      2.9
Aliso Viejo2                  774     225.4    2,107      182.4    7,995  1,230        19,062  1,059        7,221 1,004.6    16,955    876.6
Bear Brand3                   165      70.7      543       40        679    290.8       1,028     755         514   220.1       485     35.5
Bear Brand   (Parcel 5)4       40      64         79       24         50     80            79      24          10     16          0      0
Bear Brand Hill5              239      51          0        0        518    119             0       0         279     68          0      0
Borchers6                       0       0          0        0        113     46.7           0       0         113     46.7        0      0
Colinas de Capistrano7        961     379.8    1,397       94.9    1,058    418.1       1,397      94.9        97     38.3        0      0
Country Home Properties8        0       0          0        0        142     92.9           0       0         142     92.9        0      0
Country Villaqe9            1,203     273j       989      129.8    1,984    375.6j      3,115     185.9       781   102.6     2,126     56.1
Coto de Caza10              1,222     742.5      462       69.3    3,239  1,968         3,180     477       2,017 1,225.5     2,718    407
Dove Canyon11                   0       0          0        0        683    200           738     109         683   200         738    109
Foothill Ranch12                0       0          0        0      1,231    238         2,669     292       1,231   238       2,669    292
Holtz13                         0       0          0        0         67     67.0           0       0          67     67.0        0      0
Irvine Coast14                  0       0          0        0        800  1,672         1,800     240         800 1,672       1,800    240
Laquna Laurel15                 0       0          0        0        956    227           697     217         956   227         697    217
Laquna Heiqhts1£                0       0          0        0        108     35.47          0       0         108     35.47       0      0
Laquna Niquel17 Includes:
  Area A                      969     160.5        0        0      1,460    241.8       1,590      81.4       491     81.3    1,590     81.4
  Areas D-1,   D-2, D-3,
    G,  0-3,  0-4           1,431     363.8       24        3.4    9,365    625.95      1,846     187.6     7,934   262.15    1,822    184.2
  Area D-4   (Marina Hills)   200      74.1      128       46.0      815    234.5       1,500     142.3       615   160.4     1,372     96.3
  Area E-2 & E-3               76      12.9      353       76.8      235     39.0       1,070     232.6       159     26.1      717    155.8
  Area 1/1-10,   11 & 16
    (Stein-Brief)             161       2.0       86       30.2      328     32.3         250      59.3       167     30.3      164     29.1
  Area I/il and 14
    (B.H.  Mortqaqe)            0       0         45        3.6        0      0         1,542     124.8          0     0      1,497    121.2
  Area M                      166      44.9       98       26.5      376    101.6         318     41.82       210     56.7    2,120     15.32
Lyon Ranch18                    0       0          0        0         78     60j            0       0          78     60j         0      0
Mort Hermann19                  0       0          0        0        173     43.3          57       7.0       173     43.3       57      7.0
Moulton Ranch20               150      43        100       15        525    150.6         100      15.0       375   107.6         0      0


                                                                      H-B-2


PAGE 110 Show Image
                                                                    TABLE B-i


                                                           RESIDENTIAL LAND INVENTORY
                                                       ORANGE COUNTY UNINCORPORATED AREA
                                                                       1989


                                 Existing Development                      Maximum Development                Potential New Development
Planned Communities       SF Units SF Acres MF Units MF Acres SF Units SF Acres MF Units MF Acres SF Units SF Acres MF Units MF Acres


Portola Hills21               275      33        407       40      1,215   114            985     96          940    81         578     56
Rancho Cielo22                  0       0          0        0        240     56.0           0       0         240    56.0         0      0
Rancho de Los Alisos23      1,186     155      2,644      328      1,264   180         3,560     334           78    25         916      6
Rancho Santa Margarita24      557      62.8      804       76.6    2,943   228.9       8,138     378.8     2,386    166.1     7,334    302.2
Ranch Trabuco25                 0       0          0        0      1,618   465.7       2,126     218.6     1,618    465.7     2,126    218.6
Robinson Ranch26              689     200j       184       27j     1,216   318+           184     27+         527   118+          0      0
Saddleback Meadows27            0       0          0        0        714   148.8            0       0         714   148.8         0      0
Santiago Estates28              0       0          0        0         25     45.0           0       0          25    46.0         0      0
Santiago Ranch29                0       0          0        0        162   102              0       0         162   102           0      0
Serrano Highlands30           129      46.8      365       97.1      129     46.8         866    142.8          0     0         501     45.7
Telega Valley31                 0       0          0        0      2,197   355.1       3,068     432.2     2,197    355.1     3,068    432.2
Watson32                        0       0          0        0         80     49.6           0       0          80    49.6         0      0
Zadeh33                         0       0          0        0         20     22.0           0       0          20    22.0         0      0
4S Ranch   (Edgar)34            0       0          0        0        178     91.3           0       0         178    91.3         0      0


Total                      10,681 3,027.Sf    11,826   2,656.6f   45,067 10,835.1      62,028   7,324j    34,386  7,808.6j  50,202   3,987.1


BJ:hdTABLEBl .wP (1/1/96)
                                                                      H-B-3


PAGE 111 Show Image
                                  ENDNOTES FOR TABLE B-i


1.    Alicia Creek - Annual Monitoring Renort (AMR) for Alicia Creek Planned Community, County of
      Orange 1987.  January 1988 aerial photographs show that all of the planned community is
      built-out except for planning area "D'3.

2.    Aliso Viejo - Telephone conversation with Alison Martin of the Mission Viejo Company, March
      21, 1989.

3.    Bear Brand - Annual Monitoring ReDort (AMR) for Bear Brand Planned Community, County of
      Orange, 1987.  "1987 AMR Socioeconomic Data Summary", March 22, 1988. Existing acreage was
      determined by taking the proportion of units to build-out.

4.    Bear Brand (Parcel 5) - Annual Monitoring ReDort (AMR) for Bear Brand (Parcel S) Planned
      Community, County of Orange, 1987.

5.    Bear Brand - Annual Monitoring ReDort (AMR) for Bear Brand Planned Community, County of
      Orange, 1987.  "1987 AMR Socioeconomic Data Summary", March 22, 1988. Existing acreage was
      determined by taking the proportion of units to build-out.

6.    Borchers - Orange County Planning Commission Staff Report for ZC 87-19 and Community
      Profile Amendment CPA 87-11.

7.    Colinas de Capistrano - Annual Monitoring ReDort (AMR) for Bear Brand Planned Community,
      County of Orange, 1987. "1987 AMR Socioeconomic Data Summary", March 22, 1988.  Existing
      acreage was determined by taking the proportion of units to build-out.

8.    Country Home Properties - Land Use Amendment 83-2, November 16, 1983.

9.    County Village - Annual Monitoring ReDort (AMR) for Country Village Planned Community,
      County of Orange, 1987. Multi-family categories include rental units.

10.   Coto de Caza - Annual Monitoring ReDort (AMR) for Coto de Caza Planned Community, County of
      Orange, 1987.  "1987 AMR Socioeconomic Data Summary", March 22, 1988. Existing acreage was
      determined by taking the proportion of units to build-out.

11.   Dove Canyon - Annual Monitoring ReDort (AMR) for Dove Canvon Planned Community, County of
      Orange 1987.
12.   Foothill Ranch - Foothill Ranch Planned Community. Area Plan. Planning Areas 1. 2. 17. 18.
      19. 20. 21, Development Plan, Statistical Summary, County of Orange, April 1988.

13.   Holtz Ranch - Zone Change 87-14, March 21, 1989.

14.   Irvine Coast - Annual Monitoring ReDort (AMR) for Irvine Coast Planned Community, County of
      Orange, 1987.

15.   Laguna Laurel - Annual Monitoring ReDort (AMR) for Laguna Laurel Planned Community, County
      of Orange, 1987. Laguna Laurel Feature Plan, September 26, 1986.

16.   Laguna Heights - Annual Monitoring ReDort (AMR) for Laauna Heights Planned Community,
      County of Orange, 1987.

17.   Laguna Niguel - There are seven planning areas in the Laguna Niguel Planned Community which
      are currently required to submit AMRs. For the purposes of Table B-i it is assumed that it
      is within these planning areas that future residential development will occur.

      Area A - Annual Monitoring ReDort (AMR) for Laguna Niguel Planned Community. Area A County
      of Orange, 1987.

      Areas D-1, D-2, D-3, Annual Monitoring ReDort (AMR) for Laguna Niguel Planned Community.
      Areas D-1. D-2. D-3, County of Orange, 1987.

      Area G - Annual Monitoring ReDort (AMR) for Lacuna Niguel Planned Community. Area G County
      of Orange, 1987.

      Area 0-3, 0-4 - Annual Monitoring ReDort (AMR) for Lacuna Niguel Planned Community. Areas
      0-2. 0-3, County of Orange, 1987.

      Area D (Marina Hills) - Annual Monitoring ReDort (AMR) for Lacuna Niguel Planned Community.
      Area D-4. (Marina Hills), County of Orange, 1987. Multi-family categories include rental
      units.


                                             H-B-4


PAGE 112 Show Image
      Areas E-2, E-3 - Annual Monitoring ReDort (AMR) for Lacuna Niguel Planned Community. Areas
      E-2. E-3, County of Orange, 1987. Existing acreage was determined by taking the proportion
      of units to acre at built-out. January 1988 aerial photographs show that area E-2 is
      approximately 33~ built.

      Areas 1/1-10, 11, 16 (Stein-Brief) - Annual Monitoring ReDort (AMR) for Laguna Niguel
      Planned Community. Areas I/1~10  11. 16, County of Orange, 1987.

      Areas 1/11, 14 (B.H. Mortgage) - Annual Monitoring Renort (AMR) for La~na Niguel Planned
      Community. Areas 1/11, 14, County of Orange, 1987.

      Area M - La~na Niguel Planned Community. Area M Area Plan, County of Orange, Approved July
      16, 1987. Acreage for existing categories was calculated as a proportion of build-out.

18.   Lyon Ranch - Annual Monitoring ReDort (AMR) for Lvon Ranch Planned Community, County of
      Orange, 1987.

19.   Mort Herrmann - Land Use Element Amendment 1984-3, December 12, 1984.

20.   Moulton Ranch - Annual Monitoring ReDort (AMR) for Moulton Ranch Planned Community, County
      of Orange, 1987.

21.   Portola Hills - Annual Monitoring ReDort (AMR) for Portola Hills Planned Community, County
      of Orange, 1987.

22.   Rancho Cielo - Annual Monitoring ReDort (AMR) for Rancho Cielo Planned Community, County of
      Orange, 1987.

23.   Rancho de Los Alisos - Annual Monitoring ReDort (AMR) for Rancho de Los Alisos Planned
      Community, County of Orange, 1987.

24.   Rancho Santa Margarita - Correspondence to Peter Hersh, EMA/Advance Planning, from Kari
      Kilstrom, Santa Margarita Company, "Subject:  Annual Review of Development Agreement (DA
      87-1)", March 30, 1989.

25.   Rancho Trabuco - Annual Monitoring ReDort (AMR) for Rancho Trabuco Planned Community,
      County of Orange, 1987.
26.   Robinson Ranch - Annual Monitoring ReDort (AMR) for Robinson Ranch Planned Community,
      County of Orange, 1987.

27.   Saddleback Meadows - Saddleback Meadows Planned Community Develonment Plan, June 25, 1984.

28.   Santiago Estates - Land Use Element Amendment 1978-2, December 1978, and Zone Change 81-S,
      June 1981.

29.   Santiago Ranch - Land Use Amendment 82-1, June 6, 1982.

30.   Serrano Highlands - Annual Monitoring ReDort (AMR) for Serrano Highlands Planned Community,
      County of Orange, 1987.
31.   Telaga Valley - Annual Monitoring ReDort (AMR) for Te1a~a Vallev Planned Community, County
      of Orange, 1987.

32.   Watson - Land Use Amendment 83-2, November 16, 1983.

33.   Zadeh - Zoning Map, Tentative Tract 12365.

34.   4S Ranch (Edgar) - Land Use Amendment 83-2, November 16, 1983.


BJ:hdENDNOTES .wP (1/4/96)

                                            H-B-5


PAGE 113 Show Image
3.  Infill and Redevelopment Inventory

    In addition to the inventory of land in planned communities, a smaller
    inventory exists within the unincorporated islands. An evaluation of
    these sites is summarized by community analysis area in Table B-2.
    This analysis indicates that 8,446 new units are anticipated within
    these areas during the 1989-94 period. Although no detailed breakdown
    is available, it is expected that the majority of these will be
    multiple-family units. For further information regarding potential
    redevelopment sites, please refer to Section C, below.

4.  Infrastructure Capacity and Financing

    a. Capacity

       The Land Use Element's Growth Management Program implements the
       Phased Development and Land Use/Transportation Integration
       policies of the LUE by requiring proponents of major land use
       projects to submit annual reports that project future development
       activity, identify public service deficiencies, and provide
       mitigation measures.

       The primary purpose of this program is to enable the County to
       anticipate potential shortfalls in infrastructure capacity so that
       steps can be taken to correct imbalances before they hinder
       development.

    b. Financing

       The growing cost of public facilities combined with reductions in
       state and federal funding for public facility development have
       made the provision of infrastructure a difficult task for local
       government. The tax revolt of the late 1970s and the resultant
       tax and expenditure limitations (Propositions 4 and 13) have
       further constrained the ability of local governments to provide
       the regional and sub-regional public facilities necessary to serve
       existing and future developments.

       As a result of these factors, local governments have canceled or
       deferred many essential public facility projects and shifted the
       responsibility for the provision of major public facilities to
       developers. While developers historically have provided local
       improvements (e.g., local streets, sidewalks), their
       responsibility for the provision of major regional public
       facilities has increased significantly.

       The additional burden of infrastructure financing increases the
       risks and costs for residential developers in Orange County.  Some
       of the increased costs of infrastructure financing will be borne
       by new homebuyers both directly (e.g., homeowners association
       fees, assessments) and indirectly as costs reflected in house
       prices.


                               H-B-6


PAGE 114 Show Image
                                    TABLE B-2

                           RESIDENTIAL LAND INVENTORY
                      ORANGE COUNTY UNINCORPORATED ISLANDS*
                        BY COMMUNITY ANALYSIS AREA (CAA)

                                    1988-1994

            CAA                                Potential New Dwelling Units

              1                                              64
              2                                             313
              3                                             799
              4                                             208
              5                                               4
              7                                               4
              9                                           1,481
            10                                                0
            11                                                0
            13                                               15
            14                                                0
            16                                                0
            17                                                0
            18                                              499
            19                                               16
            20                                               16
            22                                                3
            24                                               59
            25                                                1
            26                                                8
            28                                              429
            29                                              963
            32                                               63
            34                                            11336

            37                                               39
            42                                              383
            43                                              391
            44                                               10
            45                                               77
            46                                              365
            47                                              970


         TOTAL                                            8,446

* Excludes Planned Communities and major developments.

Source:   OCP-88 Population & Housing Projections, CAO.
          EMA/Advance Planning.


                                      H-B-7


PAGE 115 Show Image
           In order to facilitate the provision of community and regional
           facilities, the County has an active public infrastructure finance
           program to debt-finance needed facilities through mechanisms such
           as Mello-Roos Community Facilities Districts.  County-issued
           tax-exempt bonds enable facilities to be financed at lower
           interest rates with repayment made over a number of years by
           property owners who use or are benefited by the facilities.  These
           special tax payments are also tax-deductible.  The County supports
           the formation of Mello-Roos CFD's in order to minimize the impact
           of infrastructure costs on housing prices.

C.  Affordable Housing Sites

    In 1979, the County adopted the Inclusionary Housing Program (IHP), which
    essentially required developers to provide 25% of all new dwellings within
    the affordable category (i.e., 120% or less of median income). In 1983,
    the IHP was replaced by the Housing Opportunities Program (HOP), which
    phased out mandatory requirements over a three-year period in favor of
    voluntary compliance with affordable housing objectives encouraged by
    County incentives and market forces.  The adoption of the HOP did not
    alter the existing mandatory affordable housing requirements placed on
    projects as conditions of approval under the IHP.

    A total of 26,907 mandatory affordable units have been required to date as
    part of General Plan amendments or zone changes. The vast majority of
    these (24,268) are found within planned communities, with the remainder
    scattered in conventionally-zoned parcels. Map B-i shows the location of
    these planned communities along with the number of affordable units
    required in each.

    Of the 26,907 affordable units required, 12,274 had been built as of June
    30, 1988, with 14,633 additional units remaining to be built. These
    remaining units represent designated sites for affordable housing
    development.

    Planned communities contain most of the available affordable housing
    sites, as they account for 90% of the total new affordable housing
    requirement for the unincorporated areas (26,907 total vs. 24,268 for
    major planned communities).

    In addition to these affordable housing requirements, two redevelopment
    projects have been adopted with a combined area of 13,167 acres. Within
    these projects, individual project areas vary in size, composition, and
    potential for affordable housing sites. However, redevelopment law
    requires that not less than 20% of the taxes collected by the Orange
    County Neighborhood Development and Preservation Agency shall be used for
    increasing the supply of affordable housing in the county.  This program
    is intended in part to compensate for the anticipated reduction in the
    levels of Community Development Block Grant (CDBG) funding.  Map B-2 shows
    the location of the redevelopment areas along with an inventory of the
    dwelling units and acreage within each area.


                                  H-B-8


PAGE 116 Show Image
* PLANNED COMMJNITIES                                                                                                                                                            MAfr BI
                                                                                                                8 *esiueea LEISUIS 35835  34 8£8538 3333318           48 W3. -~
        PLANNED COMMUNITIES                                                                                    33 muse viuje              38 NI:'. UIIL               4. MUKUIII p5888
                                                                                                               38 LUIFImY                 38 auw ~3i88                43 88813885SU88
        WITH AFFORDABLE REQUIREMENTS                                                                           2. IKISAl I. C£Pt315138    31 UUftY ULAN               45 811155N£81
                                                                                                               84 TDU.*331U8              NMKNLSIAUW                  N I£Nfl?3£8~
                                                                                                               88 8153Pe1111£8853         38 .145 3341. 3~            81 M*IUI£uT33UMuTi
           PLANNED CWI~ITY:         REQUIRED:                                                                  88 USual
                                                                                                                                          48 SIRUIS 33335533 CIITIS   .1 IMESIn.
         36 ALECIA CREEK                 289                                                                   3. IliUm 34888             43 £834834388               51 UWUIg :88ms1£11Y88
         33 ALISO HILLS                  296                                                                   33 N*~8£UU                 48 ftTm                     54
         45 ALISO VIEJO                 5000
         35 BEACON HILLS                 231
 *       54 BEAR BRAND                   171
         39 BEAR BRAND HILL               50
         20 COLINAS DE CAPISTRANO        844
         17 ColD DE CASA                1472
         56 COUNTRY HONE
         3? COUNTRY VILLAGE             1038            1,
         49 IRVINE COAST                 `48


         44 PORTOLA HILLS ((LENN)        370
         13 NISSION VIEJO               3000
 ,,\`    51 RANCHO SANTA ~URITA         3165
½.       38 RANCHO BE LOS ALISOS         848


k3       50 ~HD TRABUCO                  939
         31 FODThILL RANCH (lilITING)   1365


                                                                                             ll-B-9


PAGE 117 Show Image
                       REDEVELOPMENT AREAS                                                                                                                                     MAPB2
                       COUNTY OF ORANGE


                                                                                                                   ft..~P.UVwLopMENT ARflA8                          ACREA&E: ~      ~81LE
                                                                                                                                                                     SIPELE-
                                                                                                                   PI.JECT AREA 1:  _____                     l(LLJN&S ~MI1LT FMIILY DUlIES   VACANT  TOTAL
                                                                                                                   1. SANTA AMA NEIIIITS                        £140.00 110.00  23.00   0.00     7.00  1018.00
       ~                                                                                                           PIOJECT AREA II: m
                                                                                                                   1. NIWAY CiTY                                2092.00 192.29  35.50   21.22    0.23   373 oo
                                                                                                                   2. NEST SAROEN GROVE ISLAl.                  317.00  53.58    1.36   0.00     0.48   69:00
6                                                                                                                  3. MIWEIN ISLAW                              413.00  76.19    0.17   0.00     0.00   `9.00
                                                                                                                   4. $01,111 NEST MWEIK ISlND                  126.00  23.71    0.00   0.00     0.00   40.00

                                                                                                                   6. COLONIA 1NDEl~1A                          1705.00 260.59   8.04   0.00     2.33   382.00
                                                                                                                   7. CYPRESS ISLAi*                            310.00  52.58    0.81   0.00     0.69   81.00
                                                                                                                   8. DEIUIIS STREET 1SLM~                      `03.00 101.74   12.74   0.00     1.62   172.00
                                                                                                                                                                 16.00   5.81    0.28   0.00     2.40    9.00
                                                                                                                   9. OLIVE 1S~                                 129.00  13.22    3.84   0.00     1.41   37.00

                                                                                                                   11.NORTNEASTELNOOENA                         "3.00   40.05   23.12   0.00     1.68   102.00
                                                                                                                                                   H16II~5      7171:.0000 23.98 0.00   0.00     0.00   34.00
                                                                                                                   12. I(11;~T NE16~ITSICOSTA NESA                 .   108.43   31.50   0.00     0.41   301.00
                                                                                                                                                                2254.00 216.50  29.50   `5.57    1.46   856.00
                                                                                                                   14. 1N1ER~CMiYONS                            719.00 6022.42   0.06   81.52  1137.00 9528.00
                                                                                                                                                                10122.00 7191.01 152.98 168.31 1169.7112089.00

                                                                                                                                                                11262.00 1301.01 175.98 168.31 1116.7113167.00


                                                                                 H-        `


PAGE 118 Show Image
D.  Annexations uncorporations

    An important factor which affects site availability (and Housing need) in
    the county unincorporated area is the continued incorporation and
    annexation of formerly unincorporated areas. Over the past few years, the
    communities listed below have been annexed or incorporated which has
    resulted in a reduction of 43,700 acres in the county unincorporated area.
    These areas are shown on Map B-3.

    Community      Year of Annexation/Incorporation   Approximate Acres*

    South Laguna                 1987                          1,300

    Mission Viejo                1988                        17,000

    Dana Point                   1989                          3,200

    Laguna Niguel                1989                          9,400

    Laguna Hills                 1991                          3,200

    Lake Forest                  1991                          6,600

    Gypsum Canyon                1992                          2,340

    Aegean Hills                 1992                            662


    Total                                                    43,702


    *Source: Orange County Local Agency Formation Commission


E.  Low-Income Housing Sites

    Site identification for low-income housing development is an ongoing
    program of the EMA Housing and Redevelopment (H/R) Function. All property
    to be acquired with Community Development Block Grant funding requires HIR
    site review and approval. This includes environmental, land use, and
    financial feasibility considerations. In addition, CDBG program
    regulations require "principal benefit" to low- and moderate-income
    households (80 percent and less of the HUD-published median income).


                                   H-B-il


PAGE 119 Show Image


PAGE 120 Show Image
F.  Surplus Government Property

    Surplus properties of federal, state, and county governments and local
    school districts are periodically monitored for potential housing use, as
    are County Public Guardian estate real property, sales, and tax-deeded
    properties offered by the County's Assessor's Office. There are special
    problems applicable to each of these areas.  For example, surplus school
    properties are generally located in highly urbanized districts where the
    potential enrollment is deemed to have already peaked. Such cities are
    generally in older Orange County cities that are not under County zoning
    control and are often surrounded by established single-family
    neighborhoods whose residents may strenuously oppose any multi-family
    intrusion. Lastly, school districts want "top dollar" for their resources
    and often expect bids above fair market value.

    With estate sales, the Public Guardian is legally obligated to secure the
    maximum return to potential heirs and creditors and sets a minimum bid.
    Also, most estate properties are older single-family detached homes or
    small businesses that are not suited to more intensive residential use.

    On tax-deeded properties, those few properties that are more than strips
    of land resulting from subdivision surveying errors may be redeemed by
    their owners up to the date of sale or auction. Also, properties on which
    people refuse to pay their taxes are generally not developable without
    substantial time and money to provide infrastructure or improve access.

    Despite all of these problems, the County has managed to make surplus
    property available for potential housing sites. Of the current County
    surplus properties, several have limited potential for multi-family
    housing. A 21-acre inactive solid waste disposal site between the Santa
    Ana River and Riverside Freeway is at the end of an industrial road and is
    still settling, but remains a possibility--subject to the zoning authority
    of the City of Anaheim in which it is located. Many County-owned parcels
    are similarly located within independent cities exercising their own
    responsibilities as to zoning requirements.  For example, a 1.43-acre site
    between the San Diego Freeway Edison Company powerline easement and a
    flood control channel in Westminster is not feasible to develop because
    the City insists on an access road constructed to standard width- - to serve
    about five units.

    Every other remaining parcel under County control presents serious
    development obstacles. A 0.34-acre site suitable for a duplex above the
    Chapman Avenue road cut in Orange Park Acres has an irregular slope of
    volcanic bedrock. A small parcel in Capistrano Beach adjacent to San Juan
    Creek is subject to flooding and has no public road access.  Lastly, 16.51
    acres between Santiago Canyon Road and Santiago Creek within the City of
    Orange is another inactive disposal site that is still settling, but has
    long-term possibilities.

    Among County-owned properties not previously considered for housing are
    parcels or portions of parcels acquired for parks but not yet developed.
    Some of these have been suggested as sites for less permanent housing
    types such as manufactured or mobile housing for 5 to 20 years. However,


                                   H-B-13


PAGE 121 Show Image
    land acquired for recreation use may not be available for other uses due
    to legal prohibition, public resistance, and lack of infrastructure
    availability.

G.  Mobile Homes and Manufactured Housing

    As provided by state law and the Orange County Zoning Code, mobile or
    manufactured homes are permitted in all single-family zoning districts
    subject to certain minimum development standards.  These standards are
    only intended to insure that such units meet health and safety standards
    and are compatible with surrounding neighborhoods.

    Mobile and manufactured housing developments are also permitted in
    multiple-family districts subject to the prevailing density or minimum
    site area regulations.

H.  Transitional Housing and Shelters for the Homeless

    The Orange County Zoning Code establishes siting requirements for these
    types of uses under the definition of 31community care facilities." Such
    facilities'serving 12 or less persons are permitted in any residential
    district subject to the prevailing site development standards.


BJ:h~PPB.WP (1/4/96)


                                 H-B-14


PAGE 122 Show Image
                     APPENDIX C


              Orange County Agencies
           Involved in Housing Provision


This appendix contains descriptions of County agencies
or agencies with specialized services which aid in the
provision of housing.  These agencies administer a
variety of programs which, to some degree, are part of
the County's efforts to achieve its 5-year quantified
objectives while implementing this element.


PAGE 123 Show Image


PAGE 124 Show Image
CO)0WNITY SERVICES AGENCY (CSA)

A.  Human Relations Commission (HRC)

    Address:              1300 5. Grand, Bldg. B, Santa Ana, CA  92705
    Phone:                (714) 567-7470
    Executive Director:   Rusty Kennedy

    Summary of Purpose and Function

    HRC promotes socioeconomic and political opportunity including equity in
    housing. The Housing Committee:   "Advocates for decent shelter and a
    suitable living environment for every person in Orange County, regardless
    of socioeconomic status."

    The HRC Housing Committee objectives are:

       To work toward provision of local programs that increase and/or
       preserve low-income housing.

       To increase public and private sector awareness and involvement in
       implementation of programs to assist the homeless in the County.

       To increase public awareness and involvement in programs aimed at
       preventing residential displacement in low-income and/or minority
       neighborhoods.

    The population served by the HRC Housing Committee is Orange County
    residents with emphasis on the low-income and minority population. An
    estimated 500 persons are served each month.  Fifty persons are given
    direct personal assistance; an estimated 450 persons are assisted
    indirectly by technical advice and help of the housing specialist.

    HRC Housing staff works with County staff from CSA, the Environmental
    Management Agency (EMA), Health Care Agency (HCA), County Administrative
    Office (CAO), and the Social Services Agency (SSA) as well as numerous
    agencies and community groups.  Community groups include:  Housing
    Coalition, Community Development Council, Interfaith Housing Association,
    American Association of University Women, Dayle McIntosh Center for the
    Disabled, Fair Housing Council, Share Ourselves, Orange Counter Renters
    Association, Coalition for the Homeless, League of Women Voters, Feedback
    Foundation, and St. Anselm's Refugee Center.

    Funding

    Appropriation
    General Fund


                                    H-C-l


PAGE 125 Show Image
B.  Orange County Housing Authority (OCHA)

    Address:             2043 N. Broadway, Santa Ana  92706
    Phone:               (714) 836-3033
    Executive Director:  Sandra J. McClymonds

    Summary of Puroose and Function

    The Orange County Housing Authority was created by the Board of
    Supervisors on November 24, 1971 (Resolution #71-1366), to address the
    problem of shortage of rental dwelling units and financial resources to
    assist low-income persons residing in Orange County.

    The powers which a housing authority may exercise are set forth in the
    California Health and Safety Code, Section 34200. Broadly stated, an
    authority may acquire, lease, and operate housing projects for persons of
    low-income; provide counseling, referral and advisory services to person
    and families of low- or moderate-income in connection with purchase,
    rental, occupancy, maintenance or repair of housing; and administer rental
    assistance programs.

    An authority may also investigate living conditions and means and methods
    of improving such conditions. Finally, an authority may issue bonds for
    any of its purposes.

    The Orange County Housing Authority is governed by a five-member Board of
    Commissioners comprised of the elected members of the Orange County Board
    of Supervisors. A seven-member, Board-appointed Housing Commission, which
    advises the Board of Commissioners, is comprised of two tenant
    representatives and two League of Cities' representatives; the three
    remaining representatives are selected at-large by the Board of
    Supervisors.

    Under cooperative agreements and authorizing resolutions, the Housing
    Authority services twenty-four (24) of the Counts's twenty-eight (28)
    cities and the County unincorporated area (Anaheim, Brea, Garden Grove,
    and Santa Ana have their own housing authorities). An Advisory Committee,
    comprised 6f one representative from each city and the unincorporated area
    of the county, meets monthly and makes recommendations to the Housing
    Commission on housing-related matters.

    Funding

    The Housing Authority administers Section 8 Programs, the Housing
    Development Finance Program, and other housing support service programs.
    The primary funding source for the Orange County Housing Authority is the
    U.S. Department of Housing and Urban Development. The Authority
    administers over $30,000,000 in rental assistance payments annually.
    Administrative costs of the Authority are paid from administrative fees
    earned. Other programs of the Authority are financed through direct fee
    charges, rental income, and the use of Authority reserves.


                                    H-C-2


PAGE 126 Show Image
C.  Area Agency on Aging

    Address:  1300 5. Grand Avenue, Building B, Santa Ana, CA 92705
    Phone:    (714) 567-7418
    Manager:  Peggy Weatherspoon

    Summary of Purpose and Function

    The Area Agency on Aging is responsible for developing a comprehensive and
    coordinated system of services for older adults (age 60+) within the
    County of Orange.

    The agency contracts with 26 service provider organizations for congregate
    and home delivered meals and a myriad of social and supportive services
    including transportation, legal, case management, homemaker, minority
    outreach, employment, social day care, long term care ombudsman, and
    information and referral. Services operated directly by theArea Agency
    include a 200 client case management program called MSSP and the Senior
    Shared Housing Coordination Program which coordinates shared housing
    intakes and matches for 18 city-based Senior Shared Housing Programs. The
    Senior Shared Housing Coordinator also staffs the Senior Citizens Advisory
    Council Housing Committee, comprised of senior advocates and professional
    personnel from the mobile home industry and housing community.  The
    primary focus of the committee is to advocate for affordable housing for
    older adults.

    With over 325,000 individuals residing in Orange County age 60+, 8% are
    estimated to be minority persons, and about 25% are at or near the poverty
    level. Individuals on fixed incomes residing in this high-cost-of-living-
    county struggle against soaring housing and rental increases. Thus, the
    Housing Committee serves as a chief advocate for this growing population
    of older adults.

    Funding

    The annual budget of $8,000,000 is derived from Older Americans Act funds,
    state general funds, a Health Care Financing Administration waiver, and
    client donations for services.


                                   H-C-3


PAGE 127 Show Image
D.  Special Programs Division

    Address:            1300 S. Grand Avenue, Building B, Santa Ana, CA 92705
    Phone:              (714) 567-7370
    Division Manager:   Jane O'Grady

    Summarv of Purpose and Function

    The Community Services Agency (CSA), Special Programs Office is charged
    with administering three housing-related programs:  General Revenue
    Sharing Housing-Related Programs, Domestic Violence Program, and the
    County Justice System Subvention (AB 90).

    Under the General Revenue Sharing Program, County federal revenue sharing
    dollars available, with few restrictions, are allocated to social programs
    and County land, capital, and operation expenditures at the discretion of
    the Board of Supervisors. The Special Programs Office is responsible for
    administering Revenue Sharing Funds and for contract development and
    monitoring of social programs funded through Revenue Sharing.  Projects
    completed under this program since its inception in 1980 include:
    Feedback Foundation Inc. - hotel relocation; CPC-Juvenile Alternative Care
    Center; C.S.P. Inc. - South County Youth Shelter, Laguna Beach; Child or
    Parental Emergency Services (C.O.P.E.S.); Casa de Bienvenidos; Turning
    Point/Amparo - Shelter Care Program; and South County YMCA (Residential
    Hotel).

    Domestic Violence funds are generated from a special assessment fee for
    the issuance of a marriage license and for the filing of a Certificate of
    Marriage. Senate Bill 1364 (Presley) enacted May 10, 1984 authorizes a
    fee of $19.00 to be collected for Domestic Violence Centers. The
    legislation imposes restrictions on the use of funds which include: 24
    hour per day shelter, temporary housing, food, psychological support and
    peer counseling, and referral and emergency services.

    Victims of domestic violence and their children are provided the above
    services via three 24 hour per day shelters and a motel voucher program.
    Ninety-three beds are available for the former and motel beds are
    available as needed. Victims sheltered July 1, 1987 to June 30, 1988
    numbered 944; victims estimated to be sheltered July 1, 1988 through
    June 30, 1989 are 1,032.

    AB 90 provides funding for programs relating to crime and delinquency
    prevention. Community-based programs include youth shelters for youth who
    are in crisis (runaways, abused, incorrigible), emancipation training for
    youth ages sixteen to seventeen who cannot live at home, and a residential
    community corrections program designed as an alternative to County jail
    and as a resource for probationers in transition from institutionalization
    to society. In FY 1987/88, 757 youth and 181 adults received residential
    services. In FY 1988/89, it is projected that 944 youth and 175 adults
    will receive residential assistance.

    A final housing-related program which CSA/Special Programs Office helps to
    administer is emergency shelter and services as provided through the
    Federal Emergency Management Agency (FEMA).  The FEMA Local Board consists
    of individuals affiliated with United Way, the Salvation Army, National

                                   H-C-4


PAGE 128 Show Image
Council of Churches, National Council of Catholic Charities, Council of
Jewish Federation, American Red Cross, and the highest ranking local
government official, who is Chairman of the Board of Supervisors, and is
represented on the local FEMA Board by Joan Connery of the Special
Programs Office.

FEMA provides to low income persons emergency food and shelter assistance.
The Local Board sets local priorities, reviews RFP's, recommends
allocation levels to National FEMA Board, and monitors local programs
receiving funds.  The FEMA funds appropriated for 1988 provided 112,278
nights lodging.  Nights lodging projected for 1989 is 97,132.

                                          1988          1989

Mass Shelter (large facility)           21,681 nights 26,536  nights
Other Shelter (motel, camp, park)       32,633        36,996
Rent and mortgage                       57.964        33.600
                             Total     112,278 nights 97,132  nights

Funding

1.  General Revenue Sharing Programs:         Revenue Sharing Funds
2.  Domestic Violence Program:                Marriage License Fees
3.  County Justice System Subvention Program: State Appropriation (AB 90)
4.  Federal Emergency Management Agency:      Federal Appropriation


                                 H-C-S


PAGE 129 Show Image
COUNTY ADMINISTRATIVE OFFICE (CAO)

A.  Bond/Capital Finance Program

    Address: 10 Civic Center Plaza, 3rd Floor, Santa Ana, CA  92701
    Phone:   (714) 834-4775
    Manager: Stephen V. Kozak, Jr.
    Housing Program Contact:  Susan Steinfeld

    Summary of Purpose and Function

    The CAO Bond Capital Finance Program identifies, evaluates, implements,
    and manages unique or alternative financing programs to meet the County's
    long-term financing needs.

    The County of Orange has established two housing revenue bond programs to
    increase the supply of housing stock in participating cities and the
    unincorporated areas of the County.  Under these programs, tax-exempt
    bonds are used to provide funds for construction loans and mortgages to
    encourage developers to provide both rental and for-sale housing which is
    affordable'to lower income families and individuals.

    Single Family Residential Mort~a~e Revenue Bond Program

    The Single Family Residential Mortgage Revenue Bond Program has existed in
    Orange County since 1980.  The Program is designed to provide mortgage
    loans to first-time home buyers whose incomes do not exceed maximum
    federal limits. Buyers must also intend to live in the homes as their
    principal residence. Mortgage loans offered under the bond program
    generally have lower interest rates than conventional loans. Loans are
    made available for attached and detached single family residences
    primarily in eligible new developments at various locations throughout the
    county. A smaller portion of funds is available for existing or resale
    units countywide. Since the inception of the program, approximately $532
    million has been made available to finance mortgage loans for
    approximately 7,103 new and resale residences.

    Multi-Family Apartment Revenue Bond Program

    The Multi-Family Apartment Development Revenue Bond Program was developed
    in Orange County in 1982.  This program is designed to make financing
    available to developers for the construction of multi-family residential
    rental units in the county. In order to receive financing through this
    program, developers must reserve 20 percent of the units for 15 years for
    rental by families or individuals who earn 50 percent or less of the
    federal median income. Since the inception of the program, the County has
    issued bonds totaling $1.1 billion to develop 16,726 apartment units
    throughout the county. Of these, 3,991 apartments have been designated
    for occupancy by income qualified tenants.

    The Tax Reform Act of 1986 significantly changed the requirements and
    procedures for the issuance of tax-exempt multi-family bonds. Since 1986,
    the increased restrictions imposed at the Federal and State level have
    significantly slowed the interest on the part of apartment developers for
    this program.

                                    H-C-6


PAGE 130 Show Image
Additionally, the single family bond program has also experienced
decreased activity.  The single family program is patterned after the
Federal Housing Authority (FHA) Home Mortgage Program because of the
government backed securities that insure these mortgages.  The FHA maximum
loan limit for 1989 is $101,250.  The rising cost of land in Orange County
has reduced the number of single family units available within this price
range and accounts for the reduced activity in the single family bond
program.

FundinQ

The financing for the housing revenue bond programs comes from the sale of
municipal revenue bonds to investors.  Investors receive interest on their
investment which is tax-exempt at the Federal and California State levels.

The bonds are repaid from the mortgage loans originated under the single
family housing bond program and loan payments from the developers of the
multi-family apartment units.  The County, State, or Federal Government
provides no repayment obligation nor any pledge of its revenues, taxes, or
assets.


                                H-C-7


PAGE 131 Show Image
ENVIRONMENTAL MANAGEMENT AGENCY (EMA)

A.  Advance Planning Division

    Address: 12 Civic Center Plaza, Room 243, Santa Ana, CA  92701
    Phone:   (714) 834-5380
    Manager: Joan S. Golding

    Summary of Purpose and Function

    EMA/Advance Planning Division, Element Planning Section is charged with
    the updating of all elements of the General Plan (excluding the
    Transportation Element). State law requires a comprehensive 5-year review
    and update of the County's Housing Element.  This review must include the
    following:

       o  The appropriateness of the housing goals, objectives, and policies
          in contributing to the attainment of the state housing goal.

       o  The effectiveness of the housing element in attainment of the
          community's housing goals and objectives.

       o  The progress of the County in implementation of the housing
          element.

    One of the key components of the process is a public participation program
    that seeks to involve all economic segments of the community in the
    Housing Element evaluation and update. A technical advisory committee is
    established and public workshops are held in order to solicit suggestions
    regarding the Housing Element.

    Another function of the Advance Planning Division is the administration of
    the Housing Opportunities Program. A key component of the County's
    overall housing strategy is to encourage the production of market-rate
    housing that is affordable to households with incomes under 120 percent of
    the County median. In undertaking this program, the County commits itself
    to the following:

       o  Ensuring that it has authorized development of all types of housing
          in areas appropriate for residential development and at sufficient
          densities to permit the program's performance objective to be met;

       o  Developing the necessary program capability and expertise to carry
          out its role and meet its commitment to the Housing Opportunities
          Program; and

       o  Developing and implementing support and incentive mechanisms to
          assist private developers in achieving the program's performance
          obj ectives.

    Finally, the Advance Planning Division is responsible for the
    incorporation into its affordable housing program of data from the Housing
    Affordability Monitoring System (HAMS) Report. This document, in previous
    years prepared by the County Administrative Office, provides the Board of
    Supervisors with a periodically updated data source regarding the state of

                                   H-C-8


PAGE 132 Show Image
 housing in Orange County. The main focus of the report is to present
 information pertaining to the production of affordable housing within the
 County's unincorporated area.  The HAMS Report provides a convenient
 reference document for decision-makers to assess the progress achieved
 toward meeting specific objectives included in the Housing Element of the
 County's General Plan.

 This report was created in response to Resolution 83-184, which directed
 the compilation of an objective data base and monitoring system in order
 to ascertain the progress attained toward meeting the following goals:

 -  The production of housing units affordable to households with a broad
    range of income levels.

 -  The need and provision of housing for all segments of the population.

 -  The establishment of communities with a balance of jobs and housing.

 The HAMS Report presents data reflecting affordable housing production
 under the County's Inclusionary Housing Program (IHP), adopted in 1979,
 and the Housing Opportunities Program (HOP) which replaces the IHP under
 revised Housing Element H 83-1.

 Funding

 (1) For General Plan Update    County General Fund

 (2) For Housing Development    Private Mortgage Lenders
     (HOP)                      HUD/FHA
                                Revenue Bonds
                                California Housing Finance Agency (CHFA)

 (3) For Program Expertise      County General Fund
     and Capability (HOP)       Community Development Block Grant


                                H-C-9


PAGE 133 Show Image
B.  Housing and Community Development (H/CD)

    Address:   1200 N. Main, Suite 600, Santa Ana, CA  92701
    Phone:     (714) 568-4199
    Director:  Dhongchai (Bob) Pusavat

    Summary of PurDose and Function

    The Housing and Community Development (H/CD) Program is a federally funded
    program developed to address some of the low and moderate income family
    needs related to housing and community development. The County of Orange
    prepares the application annually for submittal to the U.S. Department of
    Housing and Urban Development (HUD).  Typically, these funds are used for
    basic programs including:

    1. Rehabilitation of Homes

       The County has a Home Improvement Program for low-moderate income
       areas.  The Home Improvement Program provides low interest loans,
       deferred payment loans and grants (when necessary) to assist qualified
       low income homeowners, tenants and landlords to correct code
       violations, repair hazards, and provide necessary home improvements.
       Properties should be located in target areas within the unincorporated
       County or contracting cities.

       Typical financing may include:

           LOW INTEREST LOANS - 15 year loan term
           DEFERRED PAYMENT LOANS - Zero interest, due in full only upon sale
               or transfer.
           OWNER REBATES - for necessary improvements
           GRANTS - Emergency repairs, health and safety hazards
           RENTAL REHABILITATION PROGRAM ONLY - To benefit low income renters
               3% to 9% interest, 15 year loan term
               Deferred payment loans, 2% interest, 10 year loan term
               50% Cash Rebate up to $5000 per rental unit

    2. Public Improvements in Support of Neighborhood Preservation

       These projects can consist of:

       a.  Street improvements, lights, traffic signals
       b.  Sidewalks, curbs, gutters, storm drains

    3. Community Facilities in Support of Neighborhood Preservation

       These projects can consist of:

       a.  Rehabilitation or construction of community centers
       b.  Improvements to playgrounds and parks


                                 H-C-b


PAGE 134 Show Image
4.  Grant Assistance to Non-Profit Organizations/Groups

    Direct and staff assistance may be provided to non-profit
    organizations serving low-income persons in the areas of
    discrimination, housing, employment, training, health care, day care,
    and community activities.

The primary participants and beneficiaries of the H/CD Program are low-
and moderate-income residents.  It is the intent of the program, however,
that all segments of the affected community participate in community
revitalization and the housing programs.

The unincorporated areas which submitted proposals for the thirteenth
Block Grant year (Fiscal Year 1988-1989) were:

Anaheim Independencia, Anaheim Island, Brookhurst/Ball, Capistrano Beach,
Cypress Island, Denni Street, Dana Point, El Modena, El Toro,
Inter-Canyons (Modjeska, Silverado, Trabuco), Mac Island, Northeast El
Modena, Orange-Olive, Rustic Lane, Southwest Anaheim, Sherwood Forest,
Santa Aria Heights, and West Garden Grove.

Participating cities with populations under 50,000 include:

Brea                Los Alamitos         Seal Beach
Cypress             Placentia            Stanton
Laguna Beach        San Clemente         Tustin
La Habra            San Juan Capistrano  Villa Park
La Palma                                 Yorba Linda

Residents within participating cities may contact their city administrator
for specific city H/CD information.

Funding

1.  Annual Federal Block Grant (CDBG) allocation for unincorp9rated Orange
    County and participating cities.

2.  Tax Increment Funds from the newly adopted Orange County Neighborhood
    Development and Preservation Project under California Predevelopment
    Law.


                                H-C-il


PAGE 135 Show Image
HEALTH CARE AGENCY (HCA)

A.  Adult Community Mental Health Services

    Address:  515 No. Sycamore Street, Santa Ana, CA 92701
    Phone:    (714) 834-5904
    Manager:  Doug Barton

    Summary of Purpose and Function

    Adult Community Health Services administers three housing-related
    programs:  Homeless Mentally Disabled Program, the Transitional Living
    Center and Case Management Services (Placement Services).

    The Homeless Mentally Disabled Program is a comprehensive system of
    services for homeless mentally disabled adults which has three basic
    components:  Case Management/Outreach, Housing, and Multi-Service Centers.
    A centralized County staff of outreach workers links homeless persons with
    seven contracted shelter facilities and three multi-service centers. The
    centers provide socialization, laundry and shower facilities, hot meals,
    transportation, and vocational services. Services may be accessed by
    contacting the program at (714) 568-4252.

    The Transitional Living Center is a 29-bed licensed adult residential care
    facility which provides a supportive home environment, 24-hour
    supervision, daily activities, and transportation for mentally disabled
    adults. Services may be accessed by contacting Anaheim Case Management at
    (714) 447-7200.

    Case Management or placement services are services which provide for
    continuity of care for severely and persistently mentally disabled adults
    within the Mental Health system and related social service systems.
    Services include placement, hospital discharge planning, development of
    individual service plan, crisis intervention, and assistance in daily
    living. Placement services may be accessed by cdntacting the Mental Health
    Case Management unit nearest to the clients residence:

    Fullerton         (714) 447-7000
    Anaheim           (714) 447-7200
    Santa Ana         (714) 834-8250
    Westminster       (714) 896-7540
    Garden Grove      (714) 636-7300
    Costa Mesa        (714) 850-8461

    Funding

    Short-Doyle Funds
    Homeless Categorical Funds


                                   H-C-12


PAGE 136 Show Image
SOCIAL SERVICES AGENCY (SSA)

A.  AFDC Homeless Assistance Program

    Address:   1055 N. Main Street
    Phone:     (714) 541-7700
    Director:  Larry Leaman

    Summary of Purpose and Function

    This program assists homeless families with children who are AFDC
    eligible.  Families who meet AFDC criteria may receive up to 4 weeks of
    payments (based on family size) for temporary shelter and last month's
    rent and deposits for permanent shelter if the rent is no more than 80~ of
    an AFDC grant for the family. No family may receive this assistance more
    than once in 12 calendar months. All of the offices listed below take and
    process applications for AFDC Homeless Assistance.

    East District                        Refugee District
    2020 W. Walnut                       1619 W. 17th Street
    Santa Ana, CA 92703                  Santa Ana, CA  92706
    (714) 834-8902                       (714) 834-7073

    South District                       West District
    290 Fisher Avenue                    9191 Westminster Avenue
    Costa Mesa, CA 92626                 Garden Grove, CA 92644
    (714) 850-8500                       (714) 896-7799

    San Juan CaDistrano District         North District
    32118 Paseo Adelante, Suite 1-A      1133 Homer Street
    San Juan Capistrano, CA 92675        Anaheim, CA  92801
    (714) 496-3514                       (714) 490-5160

    Funding

    This statewide program was implemented February 1, 1988 and utilizes funds
    according to the AFDC sharing ratio of approximately 50~ federal, 45~
    state, and 5~ county dollars. Although the program is proposed for
    continuance through January 31, 1990, federal participation is not
    assured. Under current state law, this program would have to be
    discontinued if federal funds become unavailable.


                                    H-C-13


PAGE 137 Show Image
B.  Emergency Shelter for the Homeless

    Address:    1055 N. Main Street
    Phone:      (714) 541-7700
    Director:   Larry Leaman

    Summary of Purpose and Function

    In 1987, the governor authorized the use of National Guard Armories to
    house the homeless on an emergency basis when night temperatures dropped
    to 40 degrees or below or temperatures were 50 degrees accompanied by
    rain.  SSA has the lead role in arranging armory operations, but active
    participation by other agencies and community groups has been the key to
    keeping this service functional.

    When evening weather forecasts indicate a need for opening the armories,
    agencies who provide for the homeless are notified. Bus transportation
    from a series of pick-up points is provided. The shelters open at 6:00
    p.m. and close at 7:30 a.m. Dinner and breakfast are provided by Feedback
    Foundation. Volunteers assist in serving meals and clean-up activities.
    Red Cross provides cots, blankets, and towels. Shower facilities are
    available on site.  SSA and other County agencies and certain city
    managers provide on-site supervision throughout the night.  SSA also
    handles laundry, storage, and security arrangements.

    In 1988-1989, the armories have accommodated 5,821 homeless people and
    churches, which are used on an emergency overflow basis, have accommodated
    another 1,165 persons.

    National Guard Armory          National Guard Armory
    612 E. Warner                  400 5. Brookhurst
    Santa Ana, CA 92707            Fullerton, CA  92633

    Funding

    Homeless Shelter Charitable Trust Fund
    Federal Emergency Management Act Funds
    Stewart Mc~inney monies

    Donations and Contributions by:

       Feedback Foundation
       California National Guard
       O.C. Chapter of the Red Cross
       O.C. Sheriff 5 Department
       O.C. Marshal's Office
       City of Santa Ana Park Rangers


                                   H-C-14


PAGE 138 Show Image
ORANGE COUNTY HOMELESS ISSUES TASK FORCE

   Address:   13252 Garden Grove Blvd., Suite 200, Garden Grove, CA 92643
   Phone:     (714) 740-1157

   Executive Board (1988-1989):

      Chairman:  Scott Mather (S.O.S., Orange Coast Interfaith Shelter)
      Vice-Chairman:   Alison Klakovich (Rainbows to End Hunger)
      Secretary:  Kelley Sullivan (Food Distribution Center)
      Committee Chairmen:
         By-Laws and Membership: Janie Arnold (Sen. Marian Bergeson's Office)
         Education:  Dianne Russell (YWCA)
                     Kathie Murtey (Public Guardian)
         Housing: Jim Miller (Housing)
         Research:  Alison Klakovich (Rainbows to End Hunger)
         Resource:  Maria Mendoza (County Administrative Office)
         Fiscal: Dan Harney (St. Vincent de Paul Society)
         Legislative:  Lee Podolak (League of Women Voters)
         Staff: Susan Oakson

   Summary of Purpose and Function

   Founded in 1985 by Senator Marian Bergeson (R-Newport Beach), the purpose
   of the Task Force is to provide regional leadership and direction in
   creating a working coalition and partnership between homeless persons,
   service providers, advocates, government, and public representatives as
   they identify and address the issue of homelessness.

   Further, the Task Force aims to be a catalyst in securing positive
   solutions for homelessness that use the financial and human resources of
   Orange County's public, non-profit, religious and private organizations
   and groups.

   The Task Force will address homelessness through emergency care,
   transitional shelters, and low-income housing.

   Finally, the Task Force strives to end involuntary homelessness in Orange
   County.

   Funding

   Hands Across America Grant
   Private donations


                                   H-C-15


PAGE 139 Show Image
H.O.M.E.S., (HELPING OUR MENTAL iLL EXPERIENCE SUCCESS)

   Address:   1905 East 17th Street, Suite 217, Santa Ana, CA 92705
   Phone:     (714) 836-6543

   Board of Directors (1989):

      President:  Ramona Schneider (California Council on Mental Health,
                  Alliance for the Mentally Ill - Orange County)
      Vice President: Marie McNabola, Ph.D. (Orange County Mental Health
                      Advisory Board)
      Secretary-Treasurer:  Nancy Weir (Alliance for the Mentally Ill -
                            Orange County)

         Beverly Cunningham (Alliance for the Mentally Ill - Orange County)
         Mildred Garcia (Board & Care Quality Assurance Committee for the
                         Mentally Ill)
         Pat Lenard (Consultant)
         Eileen Miller (Orange County Mental Health Advisory Board)
         Jim Nantais (Developer)
         Allan Rawland (Professor, Graduate School of Social Work - Cal
                State, Long Beach)
         Chris St. Clare (Partner, Accounting firm)

   Summary of Purpose and Function

   HOMES is a non-profit corporation organized in 1985 with the goal of
   providing an array of housing options for the mentally ill.  HOMES
   currently provides three houses at the semi-independent level with
   supportive services in Orange County for mentally ill adults.  The current
   program is considered transitional, and residents move on to independent
   living when their Section 8 certificates become available to them.

   FundinQ
   (Fiscal year 1988-89)

   Private donations
   Revenue Sharing
   Rent from residents


BJ:h~PPC.WP (1/5/96)


                                   H-C-16


PAGE 140 Show Image
        APPENDIX D


       ORANGE COUNTY

HOUSING OPPORTUNITIES PROGRAM


  Policies and Guidelines


PAGE 141 Show Image


PAGE 142 Show Image
                               TABLE OF CONTESTS


Section                Title                                         Pare

  A.       Program Rationale                                         H-D-1

  B.       Guiding Principles for the Housing Opportunities Program  H-D-2

  C.       Definitions                                               H-D-3

  D.       Program Description                                       H-D-5

  E.       County Support and Incentives to Affordable Housing       H-D-7


PAGE 143 Show Image


PAGE 144 Show Image
A.  Program Rationale

        WHEREAS, the price of housing in Orange County has increased rapidly
in the past several years; and,

        WHEREAS, substantial numbers of Orange County low-income households
are paying in excess of 35% of their limited incomes for housing; and,

        WHEREAS, as a result of the above, there is a high demand for low-
and moderate-income for-sale and rental housing in the County; and,

        WHEREAS, there are significant and expanding industrial and service
employment needs and opportunities for workers with incomes at or below the
County median who cannot find affordable housing in reasonable proximity to
their work and thus must commute excessive distance; and,

        WHEREAS, such commute distance has had and will have an increasing
negative impact on the County's transportation system, air quality, and energy
consumption; and,

        WHEREAS, public housing and housing subsidy programs can meet only a
small portion of the need for low- and moderate-income housing; and,

        WHEREAS, the vast majority of housing units have been and will
continue to be produced by the private housing industry; and,

        WHEREAS, this industry has the knowledge and ability to produce
housing in the affordable range given supportive government policies and
incentives; and,

        WHEREAS, pursuant to state law, the County has an obligation to make
adequate provision for the housing needs of all economic segments of the
community; and,

        WHEREAS, the County has required the provision of affordable housing
through the Inclusionary Housing Program (IHP) from 1979 to 1983 and the
Housing Opportunities Program (HOP) from 1983 to the present; and,

        WHEREAS, the County has met and exceeded previous low- and
moderate-income production objectives, and,

        WHEREAS, it is the goal of the County to continue the production of
housing units affordable to households in a broad range of income levels; and,

        WHEREAS, the County has established commitments under both IHP and
HOP for a majority of the unincorporated area that remains to be developed,
and the commitments will remain in effect assuring a continued supply of
affordable housing in the short- and long-term future consistent with this
goal; and

        WHEREAS, County efforts to encourage construction of affordable
housing should be focused on the segment of the population with the greatest
need, i.e., low- and very-low-income households.


                                  H-D-l


PAGE 145 Show Image
        NOW, THEREFORE, BE IT RESOLVED, for those areas of the County not
covered by affordable housing commitments, the County will continue to pursue
a voluntary program for affordable housing consistent with the County
objective and will evaluate it to assure that the County objective continues
to be met.

        BE IT FURTHER RESOLVED, the County will continue to monitor the
provision of affordable housing to insure compliance with existing
requirements and program objectives.

        BE IT FURTHER RESOLVED, the Housing Opportunities Program shall
include the policies, guidelines, objectives, arid criteria stated below and
shall supersede any earlier adopted Resolutions regarding affordable housing.

B.  Guiding Principles for the Housing Opportunities Program

    1.  A joint and balanced commitment by developers and the County to
        affordable housing objectives is essential to a successful housing
        program. Therefore:

        a.  Program emphasis is placed on engaging the resources of the
            private housing industry in devising workable methods for
            achieving affordable housing objectives;

        b.  The program is based on recognition that housing projects must be
            economically feasible, i.e., the developer should have an
            opportunity to make a reasonable profit;

        c.  The County should seek affordable housing commitments, whether
            voluntary or mandatory, at the largest possible scale and at the
            earliest possible stage of the development process so that housing
            types, densities, etc., can be planned to support and implement
            the program's affordable objectives. Concurrently, it should
            identify and apply those incentives and support programs, which
            will be provided to complement developer commitments.

    2.  The program should contain strategies to reduce housing costs through
        all available techniques.

    3.  The objective of the Housing Opportunities Program is that at least
        25~ of the new housing built in the unincorporated area be affordable
        to households earning no more than 120% of the County Median Income
        and be further allocated as follows:

        10% - Low
        10% - Moderate I
          5% - Moderate II

    4.  Primary emphasis in the investment of public funds should be to
        provide housing for households in greatest need, i.e., 80% of median
        income and below.


                                  H-D-2


PAGE 146 Show Image
    5.  Depending on project scale, the affordable units should be designed
        to satisfy the widest possible range of housing needs: e.g.,
        singles, elderly, disabled, couples, and families with children.

    6.  Affordable units should be located and designed so that they are
        compatible with their surroundings. Adequate provision should be
        made for imaginative architectural and site design, landscaping, and
        maintenance of common areas to meet this objective.

    7.  Affordable units should be distributed throughout the community in
        such a manner that undue concentration of such units is avoided and
        buyers/ renters have reasonable access to community employment
        opportunities, services, facilities, and public transportation.

    8.  Since economic integration of diverse income groups is not the
        program1s purpose or goal, it is not necessary that every planning
        area or development project contain a mix of affordable and
        11non-affordable" units, provided that a plan for the dispersal of the
        required affordable units over a larger project area has been
        adopted.

    9.  The program should be sensitive to changing market conditions and be
        designed to minimize County and private industry overhead
        expenditures.

    10. The County should provide technical information to cities that wish
        to undertake affordable housing programs and offer them an
        opportunity to participate in joint programs when feasible, e.g.,
        revenue bond financing and the Community Development Block Grant
        Program.

    11. Although state law permits affordable housing requirements to be met
        by rental units, developers are encouraged to satisfy at least
        one-half of a project's Moderate I requirement and three-quarters of
        the Moderate II requirement with for-sale units in order to provide
        appropriate home ownership opportunities for households of moderate
        means.

    12. To implement the Housing Opportunities Program, the Director, EMA,
        shall prepare appropriate standard conditions for the Manual of
        Standard Conditions of Approval.

    13. Families of five or more persons should be given priority in buying
        or renting affordable units with three or more bedrooms.

    14. The County requires that an affordable unit be owner occupied.
        However, blood relatives not living in the affordable unit may co-
        sign a loan to allow a buyer to qualify.

C.  Definitions

    Affordable Housing Implementation Plan (AHIP): A document which defines
    the method(s) of compliance with the mandatory affordable housing


                                  H-D-3


PAGE 147 Show Image
requirements of a residential development.  Also known as Housing Element
Implementation Plan.   AHIPs may include/require Housing Program Reports,
Rental Agreements, and Transfer of Credit Reports.

Affordable Unit:

o  Rental:  Any multiple-family structure built pursuant to the
   Inclusionary Housing Program or Housing Opportunities Program for
   rental purposes.

o  For-Sale:

   Income Based - A unit that is sold to and occupied by a household in an
   income category established by the Housing Affordability Table.

   Cost Eased - A unit whose cost after a 10% down payment, given the best
   available fixed-rate fully amortized 30-year loan, including principle,
   interest, taxes, insurance, and homeowner association dues, would not
   exceed the maximum monthly mortgage payment established by the Housing
   Affordability Table, regardless of occupant income. Alternative
   financing mechanisms (e.g., adjustable rate mortgages) may be used by
   purchasers, but calculations for purposes of certifying affordability
   shall be based on prevailing fixed-rate terms.

Density Bonus:  An increase in the density of a residential project above
that normally permitted by zoning in order to facilitate the provision of
affordable housing.  The standard density bonus is 25% above zoning.  No
additional density bonus shall be granted where increased density has been
approved and specifically conditioned in writing to facilitate affordable
housing as part of a previous Land Use Element amendment or zone change.

Excess Affordable Unit Credit:  An affordable unit which is not needed to
satisfy the affordable unit requirements of the Inclusionary Housing
Program of Housing Opportunity Program.  These credits may be transferred
only within the Planned Community in which they were generated to satisfy
affordable housing requirements.

Housing Affordability Table:  A computation of maximum income levels and
maximum monthly mortgage or rental payments based upon the County Median
Income prepared by the Manager, Advance Planning Division according to the
following methodology:

o  Income-Based Calculation:  Affordable income-based definitions are
   calculated by using 80% of the median income as the maximum allowable
   income for Low-income households, 100% of the median income as the
   maximum allowable income for Moderate I households, and 120% of the
   median income as the maximum allowable income fob Moderate II
   households.

o  Cost-Based Calculation:  The cost-based portion of the Housing
   Affordability Table (HAT) indicates the maximum monthly payment
   permitted in each affordable income category (see definition under
   "Affordable Unit'1).  The maximum monthly payment is calculated by


                                 H-D-4


PAGE 148 Show Image
       taking 30% for rental units or 33% for for-sale units of the maximum
       income permitted for each category and dividing by 12.

    Housing Program Report: A detailed report regarding the provision of
    mandatory affordable housing in a residential development which specifies
    the affordable requirement, on-site or off-site compliance, and the type
    of housing product.

    Inclusionary Housing Program:  The mandatory affordable housing program
    adopted in 1979 and superseded by the Housing Opportunities Program in
    1983.

    ~me     Median: That figure published and periodically updated for Orange
    County as a whole by the Chapman College Center for Economic Research or
    another source determined to be more appropriate by the Director, EMA.

    Income. Very Low:   50% or less of median income.

    Income. Low:        51% to 80% of median income.

    Income, Moderate:   81% to 120% of median income.
                        This income range is further subdivided as follows:

       Moderate I:      81% to 100% of median income.

       Moderate II:     101% to 120% of median income.

    Rental Agreement: An agreement to satisfy affordable housing requirements
    by providing rental units.

    Vested Excess Affordable Unit Credit:  An "excess affordable unit credit"
    created prior to July 17, 1986 and part of a tentative tract map, use
    permit, or site plan approved prior to July 17, 1983. Vested credits may
    be transferred anywhere within the unincorporated area regardless of where
    they were generated.

D.  Program Description

    The Housing Opportunities Program consists of both mandatory and voluntary
    components in which County regulatory powers are combined with specified
    incentives to achieve program objectives.

    1. Mandatory Component:  The County recognizes that there is a committed
       supply of mandatory affordable housing in previously approved
       Inclusionary Housing Program and Housing Opportunities Program
       projects. Applications to amend those commitments with respect to the
       number or percentage of affordable housing units required under those
       previous approvals will be discouraged.

       a.   Although the dispersal of affordable units is desirable, it is not
            required that every protect provide affordable units on-site.
            Developers may transfer excess affordable unit credits of any


                                    H-D-5


PAGE 149 Show Image
     income category from other projects which have produced excess
     affordable credits.

b.   It is recognized that development phasing depends on available
     infrastructure and physical constraints and that affordable
     housing sites may not always be appropriate for the initial phase
     of development. However, to the extent feasible, the desired
     percentage of affordable units should be constructed as early as
     possible and prior to the last development phase of the
     `1non-affordable" units.

c.   Provision will be made for the certification of affordable units
     produced under the program.  The Director, EMA is responsible for
     establishing administrative mechanisms for this purpose and will
     ensure that these mechanisms are as simple and inexpensive to
     apply as possible.

d.   Implementation of the mandatory component is via Affordable
     Housing Implementation Plans.  When such documents are clearly
     consistent with all provisions of the Housing Element, they may be
     approved by the Director, EMA.  Otherwise, they shall be
     considered by the Board of Supervisors.

e.   If a new unit has been offered for sale to eligible buyers
     pursuant to both income-based and cost-based criteria and the unit
     remains unsold after 90 days, then:

     (1) The unit may be sold to anyone at the same price it was
         offered to eligible buyers, and

     (2) The builder will be given affordable credit for the unit
         within the applicable affordability category based on cost
         based criteria only.

f.   If a new unit has been offered for rent £0 eligible renters
     pursuant to both income-based and cost-based criteria and the unit
     remains unrented for 30 days, then:

     (1) The unit may be rented to anyone at the same rate that it was
         offered to eligible renters.

     (2) If the builder is able to document that a good faith attempt
         was made to rent to target income groups for 30 days, then
         affordable credit will be given for the unit at the level of
         rent or the gross income of the renter, whichever is lower.

g.   If there are no subsidy programs available and other incentives
     are not sufficient to make compliance economically feasible, all
     or a portion of mandatory low-income units may be satisfied by the
     provision of units at the Moderate I level. This provision should
     be utilized as a last resort once all avenues of assistance,
     incentives, and marketing considerations have been adequately
     explored and found not feasible for a particular project.


                            H-D-6


PAGE 150 Show Image
       h.   Families of five or more persons shall be given priority in buying
            or renting units with three or more bedrooms.  If after 90 days
            (for-sale) or 30 days (rental) such units remain unsold or
            unrented, then they may be sold or rented to households of any
            size.

    2. Voluntary Component: This component is intended to complement the
       mandatory requirements of the Housing Opportunities Program. Any
       affordable units provided in excess of requirements are voluntary
       affordable units. A unit may not be counted as voluntary if it is
       used or transferred to meet mandatory requirements.

       In order to monitor the provision of voluntary affordable units,
       builders will be required to provide information on buyer incomes and
       selling prices or rents of all residential developments of 5 units or
       more.  The Director, EMA, is responsible for establishing
       administrative mechanisms for this purpose and will ensure that these
       mechanisms are as simple and inexpensive to apply as possible.

       The information received in compliance with this condition will be
       kept confidential except for its annual use in compiling aggregate
       affordable housing production statistics.

E.  County Support and Incentives to Affordable Housing

    Developers agreeing to provide units affordable to households earning not
    more than l20~ of the median income will be evaluated on the basis of need
    for County incentives outlined below.  Special consideration for County
    incentives will be made for developers agreeing to provide units
    affordable to households earning 80~ of median income or less.

    1. Criteria for which affordable housing will be evaluated for County
       support include the following:

       a.   Affordability - The extent to which the project provides
            affordable dwelling units responsive to the needs defined in the
            Housing Element.

       b.   Infrastructure Capacity - The degree to which infrastructure
            components within the area in which the project is located are
            capable of accommodating the proposed densities.

       c.   Speculation Control/Continued Affordability - The extent to which
            the project prevents first buyer speculation gain and/or provides
            for the long-term availability of the affordable units.

       d.   Location - The proximity of the project to public services and
            facilities, employment centers, and commercial centers required
            for the expected needs of project residents of affordable units.

       e.   Accessibility to the Disabled - The extent to which projects
            incorporate accessible design configurations in excess of minimum
            standards.


                                  H-D-7


PAGE 151 Show Image
   2.  Increased incentives may be provided to developers in exchange for
       additional public benefits such as the following:

       a.   Providing more than the minimum required residential units
            proposed as Low Income.

       b.   Providing low-income senior citizen housing.

       c.   Providing very-low-income units (50w or less of the county median
            income.

       d.   Providing low-income three- and four-bedroom rental units.

       e.   Maintaining the affordability of rental units for a period greater
            than the minimum required.

       f.   Providing handicapped-accessible low- and very-low-income units in
            excess of minimum requirements.

       g.   Combinations of the above public benefits.

   3.  The specific incentives to be provided for a project will be
       determined on a case-by-case basis. Incentives which may be made
       available include the following:

       a.   County housing revenue bond financing for all of the affordable
            units to be constructed, as needed in times of high interest
            rates.

       b.   Density bonus or relaxation in site development standards per
            Zoning Code Section 7-9-140.

       c.   Land write-down through use of CDBG funds or other revenue
            sources.

       d.   Elimination or reduction of non-park open space requirements on
            land which is not environmentally sensitive.

       e.   Elimination or reduction of off-site improvements and public
            facility requirements or fees which are not generated by or
            essential to the proposed project or necessary for the public
            health and safety such as libraries, trail improvements,
            landscaping, etc.

       f.   Provide public financing of residential infrastructure and form
            special assessment districts.

       g.   Secure federal or state housing program funds.

       Consideration shall be given to other incentives not listed which are
       feasible, do not create a burden on other housing projects, and which
       do not jeopardize the public health and safety.

BJ:h~PPD.wP (1/1/96)


                                  H-D-8


PAGE 152 Show Image
           APPENDIX E


Energy Conservation:  Building Energy
Standard for Residential Development
            (Title 24)


PAGE 153 Show Image


PAGE 154 Show Image
                                 APPENDIX E

       Energy Conservation:   Building Energy Standard for Residential
                            Development (Title 24)

Building energy standards for new residential development establish `1energy
budgets11, or maximum energy use levels, for three types of residential
buildings applicable to each of 16 climate zones within California.  These
standards supersede local regulations, and state requirements mandate their
implementation by local jurisdictions.  Consequently, any further analysis of
energy conservation beyond the Title 24 standards is unnecessary.
Furthermore, any locally adopted conservation measures to achieve energy
savings beyond the Title 24 Standards would conflict with housing cost
reduction objectives.

In meeting the standards, builders can use either the "performance" or the
"prescriptive" approach.

Performance Approach:  The performance approach provides the builder with the
greatest flexibility in that the builder determines which mix of design and
equipment technologies will be used in meeting the specified energy budget.
The builder, however, must be able to demonstrate, through the application of
state-approved calculation methods, that the proposed building will consume no
more energy than the energy budget allows.

Prescriptive Approach:  The prescriptive approach will probably be the most
common because it does not require computerized calculations.  The
prescriptive approach involves the use of one of five packages which can be
characterized as the simplest and least flexible compliance path.  The only
choice involved in the prescriptive approach is the selection of which package
to use within the designated climate zone.   Each package may be generally
described according to the conservation strategy it emphasizes in meeting the
budget:

   Package A:  A passive solar building that is designed to take advantage of
   the direct rays of the sun for heating purposes or to be protected from
   the sun for cooling purposes through proper solar orientation, appropriate
   selection of building materials, and a moderate amount of insulation;

   Package B:  A non-active solar building which allows a fairly small area
   of total glazing and requires R-19 walls in most climate zones.   On the
   other hand, no thermal mass is required, and minimum IWAC efficiencies may
   be used.   "Light mass11 wall and "heavy mass'1 wall R-value requirements are
   available as alternatives to the frame wall insulation requirements;

   Package C:  This package essentially exchanges a requirement for solar hot
   water for less insulation as compared with Package B;

   Package D:  This package is tailored to slab floor buildings and trades
   higher HVAC efficiencies and exposed thermal mass area for more glazing
   and R-ll wall insulation in most climate zones.   No slab edge insulation
   is required except in Climate Zones 1 and 16;


                                    H-E-l


PAGE 155 Show Image
   Package E:   This package applies to raised floor buildings and is
   identical to Package D except that it requires R-19 floor insulation and
   less exposed thermal mass area.

(See Figure E-l for the application of each package to the non-coastal area of
Orange County.)

Additionally, all new residential buildings must include minimum levels of
wall and ceiling insulation (R-19 ceiling and R-ll wall insulation for frame
construction), infiltration control measures, vapor barriers (in certain
climate zones), duct insulation, proper sizing of space conditioning
equipment, setback thermostats, and energy-efficient lighting.

The cost of complying with the new standards ranges from $500 to $17,000 per
unit depending on the package type and climate zone.  (See Chapter Three:
Constraints and Opportunities, section E:  State-Imposed Requirements.)

The costs of compliance associated with the Title 24 Building Standards will
influence the costs of constructing and purchasing or renting a new home in
Orange County.  However, as energy prices rise, homeowners and renters will
most likely spend an increasing proportion of household income for utility
bills.  This may cause housing to become even less affordable than it is now
and further constrain residents' ability to meet monthly mortgage or rental
payments.


                                   H-E-2


PAGE 156 Show Image
                                   FIGURE E-l:
                    PRESCRIPTIVE PACKAGES FOR CLIMATE ZONE 8
                            (Non-Coastal Orange Co.)

                           Package     Package   Package   Package     Package
Component                     A           B          C        D          E
BUILDING ENVELOPE
Insulation Minimums:
  Ceiling                            R-30     R-30     R-30    R-30      R-30
  Wall1                              R-ll     R-l9     R-ll    R-11      R-11
     `1Heavy" Wall                   (R-l.6)   (R-1.6) (R-l.4) N/A       N/A
     "Light Mass" Wall               "R-4.0"   "R-4.5" "R-3.5" N/A       N/A
  Slab Floor Perimeter               R-7      R-7      R-7     NR        N/A
  Raised Floor                       R-ll     R-19     R-ll    N/A       R-19
GLAZING
  Maximum U-Value                    1.10     0.65     1.10    0.65      0.65
  Maximum Total Area                 NR       14%      14%     20%       20%
  Max. Total Nonsouth Facing Area    9.6%     N/A      N/A     N/A       N/A
  Minimum South Facing Area          6.4%     NR       NR      NR        NR
SHADING COEFFICIENT
  South Facing Glazing               0.36/    0.36/    0.36/   0.662     0.662
                                     Opt.Ov.  Opt.Ov.  Opt.Ov.
  West Facing Glazing                0.36     0.36     0.36    0.36      0.36
  East Facing Glazing                NR       NR       NR      0.36      0.36
  North Facing Glazing               NR       NR       NR      0,66      0.66
THERMAL MASSE                        REQ      NR       NR      25%       10%
INFILTRATION CONTROL
  Continuous Barrier                 NR       NR       NR      NR        NR
  Air-to-Air Heat Exchanger          NR       NR       NR      NR        NR
SPACE HEATING SYSTEM4
  If Gas, Seasonal Efficiency=       71%      71%      71%     72%       72%
  If Heat Pump51 ACOP                MIN      MIN      MIN     2.5       2.5
SPACE COOLING SYSTEM
  If Air Conditioner6  SEER-         MIN      MIN      MIN     8'. 9     8.9
DOMESTIC WATER HEATING TYPE
  System must meet budget,           ANY      ANY      Solar w/ ANY      ANY
   sec §2-5351(b) and 2-5351(f) (8)                    Any Backup

     LEGEND:  ~ = Not Required; N/A = Not Applicable; REQ = Required

   1.   The value in parentheses is the minimum R-value for the entire wall
        assembly excluding interior and exterior air films if the wall weight
        exceeds 40 pounds per square foot.  The value in quotation marks is
        the minimum R-value for the entire assembly if the heat capacity of
        the wall meets or exceeds the result of multiplying the bracketed
        minimum R-value by 0.65.   The insulation must be integral with or
        installed on the outside of the exterior mass.   The inside surface of
        the thermal mass, including plaster or gypsum board in direct contract
        with the masonry wall, shall be exposed to the room air.   The exterior
        wall used to meet the R-Value in parentheses cannot also be used to
        meet the above thermal mass requirement.


                                     H-E-3


PAGE 157 Show Image
   2.  No specific shading must be installed with double glazing to meet the
       0.66 shading coefficient requirement which assumes light drapery.

   3.  To calculate the amount of thermal mass required fob Package A, use
       the method set forth in ~2-535l(f)4.  Package D (for slab floor
       buildings) requires 25 percent of the ground floor area directly
       exposed to the conditioned space.   Uncarpeted (e.g., linoleum or
       tiled) ground floor area, such as entry ways, kitchens, bathrooms, and
       conditioned utility rooms or closets may all be counted towards this
       requirement.  Package E (for raised floor buildings) requires a
       thermal mass area equal to 10 percent of the ground floor area.  To
       qualify for thermal mass, the material used must have a performance
       equivalent to a two inch thick mass element with a volumetric heat
       capacity of 28 Btu/ft3-0F., a thermal conductivity of 0.98 Btu/ft0-F.,
       and a surface area directly exposed to the room air of the required
       percentage of the ground floor.

   4.  The 71% SE requirements are superseded by the Appliance Efficiency
       Standards which require that all non-weatherproof control gas furnaces
       of less than 175,000 Btu/hr. manufactured on of after January 1, 1988
       have a'rating of 72% SE or higher.  Automatic setback thermostats must
       be installed in conjunction with all space heating systems except
       those noted in Section 2.3.

   5.  Heat pumps must meet the minimum 6.6 HSPF (Heating Seasonal
       Performance Factor) value specified in the Appliance Efficiency
       Standards as well as the ACOP (Adjusted Coefficient of Performance)
       listed in the table.

   6.  Both air conditioners and the cooling cycle of heat pumps must meet
       the listed SEER (Seasonal Energy Efficiency Ratio) listed in the
       table.  Any equipment which meets the Appliance Efficiency Standards
       also meets the 11M1N11 package requirement for cooling.


BJ:h~PPE.WP (1/5/96)


                                   H-E-4


PAGE 158 Show Image
APPENDIX F


PAGE 159 Show Image


PAGE 160 Show Image
                                  APPENDIX F

                     HOUSING ELEMENT REVIEW AND EVALUATION


California Government Code Section 65588 requires each local government to
review its Housing Element at least once every five years to determine the
appropriateness of the element1s goals, objectives, and policies; the
effectiveness of the element in attaining the community's goals and
objectives; and the jurisdiction's progress in implementing the element.   This
appendix contains a summary of the County's Housing Element Review.

State law specifies that jurisdictions within the Southern California
Association of Governments (SCAG) region must complete their Housing Element
updates by July 1, 1989.  In late 1988, County staff prepared a work program
for the project and submitted it to the Planning Commission for approval.   The
work program included a technical advisory committee made up of County
agencies, private organizations, housing interest groups, and building
industry representatives.  This technical advisory committee held a series of
public workshops intended to solicit information and recommendations from all
economic segments of the community, as required by Government Code Sec.
65583 (c).  A list of technical advisory committee members is provided on the
credits page inside the front cover of the element.

Following the technical advisory committee public workshops, County staff
prepared a new draft Housing Element which was circulated to the state
Department of Housing and Community Development and to local organizations and
persons for review and comment.  A series of public hearings was held before
the Planning Commission and Board of Supervisors to discuss the revised
element.   The following sections describe the analysis that was conducted
prior to final adoption of the new element.

A.  Appropriateness of Goals, Objectives. Policies and Programs

    In drafting the revised element, staff evaluated the appropriateness of
    existing goals, objectives, policies, and programs to determine what
    modifications were needed in response to new circumstances and the
    County's performance during the previous five years. The significant
    changes and the rationale in support of these changes are discussed below.

    1.  Goals (Page H-4-l)

        The five previous goals have been consolidated into four goals to
        avoid duplication. Goal 1 also includes a new statement regarding
        adequate housing for employees of county firms and public service
        providers.  This reflects the increased public concern over the rapid
        escalation in housing costs in the county during the past few years,
        making it increasingly difficult for employers to attract and retain
        qualified workers. This is especially true for the growing service
        sector of the economy.


                                     H-F-l


PAGE 161 Show Image
2.  Objectives (Page H-4-l)

    Quantified objectives are broken down into three components:  new
    housing construction, housing conservation, and rehabilitation.  The
    new objective for total housing production is based on the most recent
    Board-adopted growth forecast, Orange County Projections - 1988
    (OCP-88). This objective reflects anticipated growth in the
    unincorporated area for the period of 1989-1994.

    A separate objective is stated for new affordable housing production,
    which is defined as housing affordable to households with incomes of
    120 percent or less of the County median. This objective is 25
    percent of new housing units built, unchanged from the previous
    element. The new element also retains the previous objectives for 10
    percent of all new units in the Low category (80 percent or less of
    median income), 10 percent in the Moderate I category (81-100 percent
    of median income), and 5 percent in the Moderate II category (101-120
    percent of median income).  The element was revised in conjunction
    with Housing Element Amendment 1993-1 to establish a new objective for
    very-low-income housing (50 percent or less of median income). This
    objective was determined based on an evaluation of available
    resources. A key assumption of the Housing Element continues to be
    that the majority of very low-, low- and moderate income needs are met
    by existing, rather than new housing.

    The previous element contained a quantified objective for new units
    assisted with federal Community Development Block Grant (CDBG) funds.
    Since these units must be affordable to low- and moderate-income
    households, this objective is now included within the affordable
    housing quantified objective.

    The quantified objective for rehabilitation and conservation of
    existing units has been updated to reflect the most current funding
    expectations.

    Finally, the program objectives for Chapter 4 of the previous element
    have been reformatted and are included either as policy statements
    (Chapter 4) or in the individual program descriptions (Chapter 5) of
    the revised element.

3.  Policies (Page H-4-4)

    Policy statements have been reviewed and updated to reflect the
    revised goals and changes in circumstances. Many policy statements
    were consolidated or revised to eliminate duplication or ambiguity.
    In addition, the following new policy statements have been added in
    response to needs identified during the amendment process:

    a. Policy 1-F includes a provision for the recapture of direct public
       subsidies if units are prematurely withdrawn from the subsidizing
       program.


                                H-F-2


PAGE 162 Show Image
    b.  In response to a recommendation from the technical advisory
        committee, Policy l-G has been revised to initiate consideration
        of a zoning code amendment that would allow administrative
        approval of transitional housing in appropriate districts.

    c.  Policy 1-I commits the County to consider a zoning code amendment
        to allow residential uses in appropriate commercial districts to
        facilitate the production of affordable housing and transitional
        shelters close to employment opportunities and major
        transportation routes.

    d.  Policy 1-S directs staff to develop an in-lieu fee policy as an
        alternative method of complying with affordable housing
        requirements.

    e.  Policy l-T commits the County to support increased state and
        federal tax incentives to encourage low-income housing
        construction and handicapped-accessible housing.

    f.  Policy 1-U indicates the County will investigate the feasibility
        of participating in a regional employment/housing linkage program
        that would assist in providing housing affordable to low- and
        very-low-income workers.

    g.  Policy I-V commits the County to continue to inventory and
        preserve existing low-income housing units that were assisted
        through federal, state, and local programs and which are eligible
        to convert to market-rate housing due to expiring affordability
        restrictions.  (Note: This program has been established in
        conjunction with the adoption of Housing Element Amendment 1993-1.
        See Appendix G: Preservation of Assisted Rental Units Program.)

    h.  Policy 1-W directs staff to identify sites for transitional
        shelters for homeless families that are now available or easily
        made available.

    1.  Policy 2-E directs the County to consider support of just cause
        eviction legislation at the state and federal level.

    ~.  Policy 4-D supports the establishment of a countywide housing task
        force and trust fund to assist the production of low-income
        housing and transitional housing for homeless families.

4.  Programs (Chapter 5)

    In the previous element, individual program descriptions were listed
    in Appendix C.  The revised element contains a complete listing of
    updated programs in Chapter 5.

    a.  New Programs

        The revised element contains the following new program
        descriptions:  (Note: With the exception of the Preservation of


                                H-F-3


PAGE 163 Show Image
Assisted Rental Units Program which was added in 1993 in
conjunction with Housing Element Amendment 1993-1, all of these
programs were added in 1989 in conjunction with Housing Element
Amendment 1989-1.)

o   Aftercare Rental Assistance Program (page H-5-2)

    This is an existing program that was inadvertently omitted from
    the previous element's catalogue of programs.

o   Countywide Homeless Family Transition Housing Initiative
    (page H-5-6)

    In response to the growing need for temporary shelter, the
    Board of Supervisors recently directed County staff to explore
    the feasibility of creating a Countywide pool of CDBG funds to
    support a joint city-county program to assist the development
    of transitional housing facilities for homeless families.

o   Homeless Issues Coordination (page H-5-2)

    This new program was created to provide a mechanism to
    coordinate the activities of various County departments in
    their programs to assist the homeless.

o   Housing Development Finance Program (page H-S-il)

    This new program administered by the Orange County Housing
    Authority is intended to support the production and
    preservation of low-income rental housing. It is funded
    through OCHA's surplus operating reserve.

o   Housing Element Periodic Review and Update (page H-5-13)

    This is an existing activity mandated by state law.  The new
    element elevates this activity to program status, and other
    previously incorporated programs such as the Housing
    Affordability Monitoring System, Land Availability, and
    Economic Analysis of Land Use.

o   Neighborhood Development and Preservation Project (page H-5-20)

    This new program will utilize redevelopment financing
    mechanisms to support construction, rehabilitation, and
    neighborhood improvement efforts in selected areas.

o   Stewart McKinney Homeless Assistance Act (page H-5-25)

    This program was recently established to utilize federal grants
    for improvement and operation of emergency shelters for the
    homeless.


                        H-F-4


PAGE 164 Show Image
    o  Preservation of Assisted Rental Units Program (page H-5-27 and
       Appendix G)

       This program was established in conjunction with Housing
       Element Amendment 1993-1 to provide for the continued
       affordability of dwelling units assisted through federal,
       state, and local programs which have expiring affordability
       restrictions and are at risk of converting to market rate
       units.

b.  Programs Discontinued or Redesignated

    Several Programs have been deleted from the new element to
    eliminate redundancy. These programs are identified below.

    o  Building Code Review and Revision

       This activity is incorporated within both the Development
       Processing System, Review Program (page H-5-6) and the Housing
       Opportunities Program (page H-5-12, Appendix D).

    o  Controlling Speculation

       This activity is included within the Housing Opportunities
       program (page H-5-12, Appendix D)

    o  Economic Analysis of Land Use

       This activity is included within the Housing Element Periodic
       Review and Update (page H-5-13).

    o  Housing Affordability Monitoring System

       This activity has been incorporated into the Housing Element
       Periodic Review and Update program (page H-5-13).

    o  Housing Outreach and Education

       This activity is included within other programs such as CDBG
       (page H-5-4), other federal housing programs (Page H-5-8), the
       Housing Development Finance Program (page H-5-ll), and the
       Housing Referral Directory (page H-5-16).

    o  Housing Program Performance Report

       This activity is included within the Housing Element Periodic
       Review and Update (page H-5-13) and the Community Development
       Block Grant Program (page H-5-4).

    o  Land Availability

       This activity is included within the Housing Element Periodic
       Review and Update (page H-5-13)


                            H-F-5


PAGE 165 Show Image
           o   Liaison With Other Local Agencies

               This activity is included within each of the programs that
               involve other agencies, such as the Countywide Homeless Family
               Transitional Housing Initiative (page H-5-6), the CDBG program
               (page H-5-4), and the Housing Element Periodic Review and
               Update (page H-5-13)

           o   Master Environmental Assessment

               This activity is included within the Development Processing
               System Review Program (page H-5-6) and the Housing
               Opportunities Program (page H-5-12, Appendix D).

           o   Meeting Special Housing Needs

               These efforts are included within the CDBG program (page
               H-5-4), the Aftercare Rental Assistance Program (page H-5-2),
               and various state and federal programs.

           o  `Modification of Development Standards

               This activity is included within the Development Processing
               System Review Program (page H-5-6) and the Housing
               Opportunities Program (page H-5-12, Appendix D).

           o   Housing Information System

               This activity is included within the Housing Element Periodic
               Review and Update Program (p. H 5-13).

           o   Reduction of Processing Time

               This activity has been incorporated into the Consistency Review
               Program (p. H 5-5) and the Development Processing System Review
               program (p. H 5-7).

    The descriptions of remaining programs have been updated to reflect
    current activities and funding levels.

B.  Effectiveness of the Housing Element in Attainment of Housing Goals and
    Objectives.

    Table F-i summarizes the County's performance compared to quantified
    objectives during the period 1982-1988. As indicated in this table, all
    of the new housing production objectives were exceeded by a considerable
    margin. Even construction of new low-income units, which is the most
    difficult to achieve, exceeded the objective by 50 percent.

    Construction of new CDBG units was slightly less than the objective (85w),
    but this was attributable to a cut in federal funding in 1984.


                                   H-F-6


PAGE 166 Show Image
    Conservation and rehabilitation efforts exceeded the objectives by
    24 percent.

C.  Progress in Housing Element Implementation

    In addition to evaluating the County's performance with respect to the
    quantified objectives, the previous element's program objectives were
    reviewed to determine the level of progress in achieving these objectives.
    The results of this review are presented in Table F-2.

D.  New and Replacement Units in the Coastal Zone

    For localities with territory in the coastal zone, Government Code
    Sec. 65588 (c) and (d) require that the housing element report on housing
    production activities within the coastal zone.

    Table F-3 contains statistics regarding new housing production in the
    coastal zone during the 1982-1988 period. During this time, a total of
    3,746 new affordable units were required. Table F-4 provides information
    on demolitions and conversions within the unincorporated coastal zone for
    the years 1982-1988.  According to records kept by the County
    Administrative Office, a total of 9 units were added due to conversion, 4
    units were deleted due to conversion, and 29 units were deleted due to
    demolition or fire.


BJ:h~PPF.wP (1/8/96)


                                    H-F-7


PAGE 167 Show Image
                                   TABLE F-i

                           HOUSING PERFORMANCE SUMMARY
                        ORANGE COUNTY UNINCORPORATED AREA
                              JULY 1983 - JUNE 1988


                                           Housing Element     Performance
                           Total Units      Objective 5/     (% of Objective)

1. Total Units Built         29,l94j~         22,638              129%

2. Affordable Units
   Built and Certified       10,0142/          5,660              177%

   Low7~                       3,402           2,264              150%
   Mod-I                       3,597           2,264              159%
   Mod-Il                      3,015           1,132              266%

3. New CDBG Units BuiltM         424             500               85%

   New                           413             375
   Inf ill61                      11             125

4. Units Conserved
   or Rehabilitated          l,l99~½~~           965              124%

      CDBG Funded~1              812             600
      HUD Funded41               364             345
      AftercareM                  23              20


Sources/Notes:

  1/
  -  CAO, Housing Inventory System
  2/ EMA, Advance Planning Division
  3/
  - EMA, Housi,~ng/Community Development Office
  4/
  - Orange County Housing Authority
  5/
  -  County of Orange, Housing Element H-86-l, Page H 4-1
  6/ The Urban Infill Program was projected to accomplish approximately 25 new
     units per year in 1983.   H/CD had 30 units in process during 1984 when a
     federal CDBG regulation amendment sequestered future funds for this
     activity.   H/CD finished 11 units prior to the federal determination.
  7/ Includes CDBG units.


BJ:hdTABLEFl .wP (1/5/96)


                                     H-F-8


PAGE 168 Show Image
                                                       TABLE F-2

                               PROGRESS IN IMPLEMENTING HOUSING ELEMENT PROGRAM OBJECTIVES

Program Obj ectives                                             Progress


 1.1.   Completion and operation of a Housing Information       In February 1983, the Board of Supervisors
        System satisfying all local, state and federal          established the Housing Affordability Monitoring
        requirements for data compatibility, currency,          System (Resolution No. 83-184), which serves as a
        updating capability and retrieval to document and       comprehensive data source for evaluating the
        monitor housing needs.                                  County's housing needs and progress in implementing
                                                                goals. This document is updated annually and
                                                                serves as the County primary housing data
                                                                reference source.

 1.2.   Implementation of Consistency Assessment.               The Consistency Review Section has been created
                                                                within the Planning Function to evaluate
                                                                consistency of permit applications with the
                                                                General Plan and zoning regulations.

 1.3.   Implementation of a New Construction Housing            See discussion under Section B(l) and Table E-l.
        Program yielding 25 percent of new units
        constructed in the affordable price range.

 1.4.   Definition of Community Development Block Grant         Housing and Community Development Block Grant
        Programs and related budgets which respond to           funds have been used as seed money in financing
        appropriate policies in the Housing Element.            rehabilitation, replacement of deteriorated housing,
                                                                and development of new units for low- and
                                                                moderate-income families.

 1.5.   Continuation of Section 8 Existing Program.             The Section 8 Existing Program has been expanded
                                                                in funding levels, staffing, numbers of projects
                                                                processed, and types of projects utilizing these
                                                                funds.


                                                         H-F-9


PAGE 169 Show Image
                                                 TABLE F-2 (Continued)

Program Objectives                                              Progress


 1.6.  Implementation of a coordinating mechanism to            As part of the Housing Element periodic review and
       directly involve business and industry in solving        update, representatives of the business community
       the housing needs and problems of their employees        and building industry were invited to participate
       and involving the building industry in satisfying        in the development of programs to address employee
       the need.                                                housing needs.

 1.7.  Transportation Element interface (e.g., employer-        This program objective is implemented through the
       residence proximity, encouraging balanced                Balanced Land Use Policy of the Land Use Element.
       communities, implications of high density                All communities in the unincorporated area are
       residential development on transportation                planned with a mix of land uses so that residents
       facilities).                                             have the opportunity to work, shop, and play within
                                                                a short distance of their homes.

11.1.  Housing Information System                               See comment 1.1.

11.2.  Maintain a land inventory of all government- and         An inventory has been completed and additional
       publicly-owned surplus sites (including state-           sites deemed surplus are evaluated and added to
       and federally-owned land) in the county, which           the inventory by HCD.
       have potential for residential development for
       low- and moderate-income households.

11.3.  Consistency Assessment                                   See comment 1.2.

11.4.  Establishment of a system for continuous building        A Planning Regulation Review Committee has been
       code and regulatory review for flexibility in            established to oversee streamlining of the zoning
       building standards and pilot projects.                   code and other regulatory mechanisms (e.g.,
                                                                specific plans, planned communities).

11.5.  Housing Opportunities Program                            See comment 1.3.


                                                         H-F-lO


PAGE 170 Show Image
                                                 TABLE F-2 (Continued)

Program Objectives                                              Progress


11.6.  Continue reduction of processing times program           With recent revisions to the Zoning Code (#3499)
       under way with continued monitoring of                   which streamlined the regulations and with
       performance.                                             concurrent processing of project approvals,
                                                                processing times have been reduced.

11.7.  Secure funds provided by federal, state, and local       The County has issued over $1.6 billion of
       housing and revenue bond programs.                       tax-exempt revenue bonds to provide below-market
                                                                loans for more than 11,000 units.

11.8.  Continue to implement and expand the Land                The Land Acquisition Program has continued at the
       Acquisition Program (HCD activity) so as to              same scope and funding level.
       provide additional sites for residential
       development for low- and moderate-income
       households.

11.9.  Contingent upon funding availability, initiate           No federal funding has been available for this
       Section 8 projects under both new and substantial        program.
       rehabilitation provisions.

11.10. Consider revisions to the Zoning Code to allow           In 1984, a comprehensive zoning code amendment was
       mixed uses and temporary housing facilities and          approved (#3499), which contained provisions to
       facilitate apartment construction.                       permit mixed-use development and community care
                                                                facilities (temporary housing) with a use permit or
                                                                site development permit. This revision also
                                                                increased permissible density and building height
                                                                and reduced processing time and fees for apartment
                                                                construction.


                                                         H-F-il


PAGE 171 Show Image
                                                  TABLE F-2 (Continued)

Program Objectives                                              Progress


11.11. Review and revise speculation control and                To control speculation, in the grant deed of each
       continuing affordability mechanisms to conform to        bond-financed unit is a statement of owner intent
       modified policy.                                         to occupy the unit. Continued affordability is
                                                                facilitated by restricting loans to low- and
                                                                moderate-income buyers only and by requiring
                                                                pre-payment penalties on bond-financed units.

11.12. Pursue alternative financing mechanisms for              The County has explored possible funding
       Infill Program if HUD funds are reduced.                 alternatives, however none have been found to date.

11.13. Continue implementation of Tax Exempt Revenue            See comment 11.7.
       Bonds Program.

11.14. Prepare and adopt the Public Facilities Element          The Public Services and Facilities Element was
       as a new element of the general plan.                    adopted by the Board of Supervisors on
                                                                January 9, 1985 (Resolution No. 85-54).

11.15. Conduct Infrastructure Studies.                          The County conducts several programs to ensure
                                                                that adequate infrastructure is available to
                                                                support new development. The CAO's Development
                                                                Monitoring program annually evaluates the capacity
                                                                of key systems, including water, wastewater,
                                                                schools, roads, libraries, flood control, and fire
                                                                protection. In addition, the Public Services and
                                                                Facilities Element of the General Plan establishes
                                                                the policy frame-work for the development of
                                                                infrastructure systems.

111.1. Maintain housing affirmative action -                    H/CD funded the Fair Housing Council to monitor
       nondiscrimination program at existing resources          both for-sale and rental units for affirmative
       and staff levels.                                        action and discrimination.


                                                         H-F- 12


PAGE 172 Show Image
                                                 TABLE F-2 (Continued)

Program Objectives                                              Progress


111.2.  New Construction Housing Program                        See comment 1.3.

111.3.  Community Development Block Grant Programs              See comment 1.4.

111.4.  Implement housing outreach and education program        Outreach and education programs operate
        to inform the public of housing opportunities           continuously through flyers and community
        available to eligible households.                       meetings.

111.5.  To support and undertake programs which reduce          No new programs have been initiated.
        housing costs by making better use of existing
        housing resources.

111.6.  Consider a Zoning Code amendment to permit second       The Zoning Code has been amended to allow second
        units on lots zoned single-family.                      units in single-family districts (Sec. 7-9-146.5).

111.7.  To provide the extension of the camp site time          In 1984, the Harbors, Beaches and Parks Commission
        frame to 30 days for a specific number of               rejected this proposal as an inappropriate use of
        available camp sites.                                   park facilities.

IV.1.   Maintain rehabilitation support in target areas         The Housing and Community Development Block Grant
        under Housing and Community Development Block           Program has continued rehabilitation support at
        Grant Program.                                          the same funding level, scope and scale.

IV.2.   Implement Residential Energy and Water                  All housing rehabilitation coordinated through
        Conservation Retrofit Program.                          H/CD implement energy-saver improvements including
                                                                windows, faucets, toilets, insulation, and
                                                                electronic ignitions.

IV.3.   Implement Block Grant Home Improvement Program.         The Block Grant Home Improvement Program has been
                                                                implemented (see program description on page H-5-3).


                                                         H-F-i3


PAGE 173 Show Image
                                                 TABLE F-2 (Continued)

Program Ob~ ectives                                             Progress


IV.4.   To consider revision of the Zoning Code to secure       The State Government Code (Section 65863.7)
        tenant relocation safeguards when a mobile home         addresses this subject.  The Board of Supervisors
        park is converted to a commercial use.                  has determined that no additional County zoning
                                                                regulations are necessary.

IV.5.   Earmark a portion of available rehabilitation           The Dale McIntosh Center for handicapped persons
        funds for use in modifying (retrofitting)               was completed in early 1985 with H/CD
        existing rental or ownership units to make them         rehabilitation funds.  The Center provides
        accessible.                                             emergency housing for the handicapped.

 V.1.   Interface with industry and business                    See comment 1.6.
        organizations, especially those composed of
        employers.

 V.2.   Interface with cities in the forum provided by          The County is a member of the Southern California
        the SCAG Sub-Regional Planning Council.                 Assoc. of Governments (SCAG), the regional council
                                                                of governments for Los Angeles, Orange, Riverside,
                                                                San Bernardino, Ventura, and Imperial counties.
                                                                The County participates in any SCAG programs that
                                                                relate to Orange County planning issues.

 V.3.   Share with cities information and experience            See comment V.2.
        regarding special topics (e.g., granny housing).

 V.4.   Identify the Shared Emergency housing Task (SET)        In 1984, OCHA subsidized the computerization of
        force as the clearinghouse for information and          SET's Shared Housing Directory. This directory
        referral.  Recommend OCHA interface with SET as         lists clients, sponsoring agencies, rent, and other
        the public sector liaison.                              information so that compatible roommates can be
                                                                matched. The target group is seniors.  SET is also
                                                                updating its Emergency Housing Referral
                                                                Directory. The SET Director is appointed by the
                                                                Director of the OCHA.

BJ:hdTABLEF2 .WP (1/8/96)


                                                         H-F-14


PAGE 174 Show Image
                                         TABLE F-3

                            COASTAL ZONE HOUSING APPROVALS WITH
                              AFFORDABLE HOUSING REQUIREMENTS
                             ORANGE COUNTY UNINCORPORATED AREA
                                         1982-1988


                            New Protects
                  Total Units       Affordable
Project           Authorized      Units Required                 Comments

1982

TT 11632                  9                3

TP 82-114/UP 82-8P        1                0     Exempt from replacement requirement

TT 11711/UP 82-3P        46               12     Transfer affordable credits used

UP 82-72P/SP 82-70P       4                0

SP 82-56P                 1                0

TT 11594                119                0     Afford. units not reqvd; CAA object met

TT 11799                384              225

TT 8735  (2nd rev.)      80               20

TT 82-138/UP 82-12P       4                0

TT 82-108                 2                0

TT 82-160                 2                0

TP 82-148                 2                0

1982 Subtotal           654              260


1983

UP 83-8P/VA 87-4P/
  GPI 83-iP               2                0

TT 11843/UP 82-81P/
  SP 82-77P              40               40

TT 11985/SP 83-68P       32                8     Transfer affordable credits used

Up 83-41P/SP 83-44P/
  CD 83-7P/TP 83-121     24               24

TP 82-158                 1                0

1983 Subtotal            99               72


                                           H-F-iS


PAGE 175 Show Image
                                        TABLE F-3

                            COASTAL ZONE HOUSING APPROVALS WITH
                              AFFORDABLE HOUSING REQUIREMENTS
                             ORANGE COUNTY UNINCORPORATED AREA
                                        1982-1988


                              New Prolects
                    Total Units       Affordable
Project             Authorized      Units Required             Comments

1984

Up 84-90P/SP 84-llOP/
  CD 84-52P               1                0

SP 84-86P/CD 84-41P      29                0    Timeshare project

SP 84-60P/VA 84-llOP/
  CD 84-23P              68                0    Timeshare project

Ap 84-18P/FP 84-8A      450             113     Not all units are in coastal zone

Up 84-65P/CD 84-40P       2                0

TT 8735  (6th rev.)     119              30     Transfer affordable credits used

UP 83-95P/SP 83-118P/
  CD 83-51P               2                0

Up 84-85P                                  -    Exempt from replacement requirement

Up 84-62P                                  -    Exempt from replacement requirement

1984 Subtotal           671             143


1985

TT 9702                  35                4

TT 110802/SP 83-156P    108              11     Transfer of vested coastal credit

TT 11578                 63                -    Affordable objective met alternative

CD 85-56P/VA 84-20P      71              71     On-site

TT 12366/SP 85-9P       450             125     On-site

TT 11578                180              45     Transfer coastal excess affordable credit

TT 12376                190              48     Transfer coastal excess affordable credit

TT 12604                111              27     On-site or transfer

1985 Subtotal         1,208             331


                                           H-F-16


PAGE 176 Show Image
                                 TABLE F-3   (Continued)


                              New Pro7ects
                     Total Units       Affordable
Protect              Authorized      Units Required                  Comments

1986

TT 12577                 68                17          Transfer or on-site

TT 8551/CD 86-06P/
  YA 86-06P             100              100           Laguna Sur Rental Agreement

TT 12709/CD 85-48P/
  SP 86-90P             116                29

TT 12764                 76                19

TT 12765                112                28          Compliance with AHIP

TT 12590/CD 86-58P
  SP 86-hOP              70                18

TT 12666                 65                16

1986 Subtotal           607              227


1987

TT 12708                 82                20

1987 Subtotal            82                20


1988*

TT 13434                325              125

TT 8551/VA 88-OSP       100              100           Density Bonus

1988 Subtotal           425              225


1982-1988 Total       3,746            1,278


*1988 information is through July 1,  1988.

Sources:  EMA/Advance Planning
          EMA/Current Planning & Development Assistance


                                           H-F-17


PAGE 177 Show Image
                                         TABLE F-4

                         COASTAL ZONE DEMOLITIONS AND CONVERSIONS
                            ORANGE COUNTY UNINCORPORATED AREA `D
                                         1982-1988


              Units Added               Units Deleted             Units Deleted
Year       Due to Conversion          Due to Conversion     Due to Demolition or Fire

1982                                                                      3

1983              2                            1

1984                                                                      2

1985

1986              3                            1                          3

1987                                                                     12

1988              4                            2                          9

TOTAL             9                            4                         29


Note:    The above information is recorded by transportation analysis zone which is
         some cases extend inland or beyond the coastal zone.    Therefore, there may
         actually be fewer demolition and conversions than reflected in this table.

Sources:      CAO/Forecast and Analysis
              EMA/Advance Planning


BJ:hdTABLEF3 .WP (1/8/96)


                                         H-F-18


PAGE 178 Show Image
             APPENDIX G


PRESERVATION OF ASSISTED RENTAL UNITS PROGRAM


PAGE 179 Show Image


PAGE 180 Show Image
                                APPENDIX G

                PRESERVATION OF ASSISTED RENTAL UNITS PROGRAM

A.  Background

    In October 1991, SB 1019 (L. Greene) amended Government Code Section 65583
    to require local jurisdictions to include within their Housing Elements an
    analysis of assisted housing developments that are eligible to change from
    low-income use during the next 10 years due to termination of subsidy
    contracts, mortgage prepayment, or expiration of restrictions on use.
    "Assisted housing developments" are defined as multi-family rental housing
    that received governmental assistance under any federal programs, state
    and local multi-family revenue bond programs, local redevelopment
    programs, local in-lieu fees, local inclusionary housing programs, and
    projects which obtained a density bonus with direct governmental
    assistance pursuant to Government Code Section 65916 (participation in the
    cost of infrastructure, write-down of land costs, or subsidizing
    construction costs).

    The following is a summary of the components which are required to be
    included in the Housing Element.  These requirements were added to
    Government Code Section 65583 in October 1991 by SB 1019 (Greene).

    o  An inventory of units at risk of losing affordability restrictions.

    o  A cost analysis of preserving the at-risk units versus replacing them.

    o  A listing of non-profit entities capable of acquiring and managing
       at-risk projects.

    o  Potential funding sources for preserving at-risk units.

    o  Quantified objectives for the number of at-risk projects to be
       preserved.

    o  Program efforts to preserve assisted units.

B.  Inventory of Units At Risk of Losing Affordability Restrictions

    For purposes of the County's Housing Element, the inventory includes
    assisted projects which have affordability controls which may expire (or
    have expired) during the period from July 1, 1989 (the date of the last
    comprehensive Housing Element Amendment) through June 30, 1999.  The
    inventory includes projects in the unincorporated area which were assisted
    under federal programs, the Multi-Family Housing Revenue Bond Program, or
    the County's former Inclusionary Housing Program. There are no projects
    within the unincorporated area with use restrictions which may expire
    during the 10-year period which received government assistance through
    redevelopment, in-lieu fees, or a density bonus with a direct governmental
    financial contribution per Government Code Section 65916.


                                     H-G-l


PAGE 181 Show Image
    Tables G-l and G-2 include an inventory of each development by project
    name, project address, the type of governmental assistance provided, the
    earliest possible date of conversion from low-income use, and the total
    number of elderly or non-elderly units that could be lost from the
    County's low-income housing stock. Government Code Section 65583 requires
    the inventory to be broken down into two, five-year increments. Table G-l
    includes those projects with affordability restrictions expiring during
    the period from July 1, 1989 through June 30, 1994, while Table G-2
    includes those projects with affordability restrictions expiring during
    the period from July 1, 1994 through June 30, 1999. A particular project
    may appear in the inventory more than once since the project has
    affordability restrictions under more than one federal, state, or local
    housing program and since the affordability restrictions expire at
    different points in time.

C.  Analysis of Program Restrictions and Peak Periods of Affordability
    Expiration

    To understand the various program restrictions, one must first gain an
    understanding of how affordability is defined under each of these
    programs. `All housing assistance programs other than the County's IHP/HOP
    Program (e.g., state and federal housing programs, redevelopment,
    Multi-Family Revenue Bond Program, etc.) use a definition of affordability
    as established by the Federal Department of Housing and Community
    Development (HUD). A low-income household as defined by the IHP/HOP has a
    higher income than a low-income household as defined by HUD.  While the
    HUD median income is higher then the median income as determined by
    Chapman University for the IHP/HOP, HUD uses adjustments for family size
    which result in lower income limits than those for the IHP/HOP.

    The current HUD-estimated median income for Orange County for Fiscal Year
    1993 is $56,500, compared with the Chapman University median income of
    54,380 (for the period July through September 1993). The HUD definition
    of a low-income household is based on 80 percent of the area median income
    with adjustments for family size. Currently, HUD defines an Orange County
    family of four earning $39,700 or less as a low-income household, compared
    with $43,504 under the IHP/HOP. In addition, since 1986, 20 percent of
    the units financed through Multi-Family Revenue Bond financing must be
    affordable to very-low-income households, as defined by HUD.  Currently,
    HUD defines an Orange County family of four earning $28,250 or less as a
    very- low- income household.


                                    H-G-2


PAGE 182 Show Image
             TABLE G-l:  LOW-INCOME MULTI-FAMILY RENTAL UNITS WITH AFFORDABILITY RESTRICTIONS EXPIRING FROM
                                           JULY 1. 1989 THROUGH JUNE 30. 1994


                                                                            Earliest Possible
                                                   Type(s) of Government    Expiration of     Number of Low-Income Units
Project Name           Project Location/Address    Assistance Used          Restrictions      Elderly      Non-elderly


Las Colinas             25631 Indian Hill Ln.          IHP/HOP               10-13-89             0             14
                        Aliso Viejo

Villa La Paz            2 Via Amistosa                 IHP/HOP               11-12-90             0             25
                        Rancho Santa Margarita

Aliso Creek Villas      24152 Hollyoak                 IHP/HOP               06-10-91             0            143
                        Aliso Viejo

Trabuco Highlands Apts. 31872 Joshua Dr.               IHP/HOP               11-15-93             0             51
                        Trabuco Canyon

Villa Aliento           114 Aliento                    IHP/HOP               12-31-93             0            180
                        Rancho Santa Margarita

SUBTOTALS                                              IHP/HOP                                    0            413

TOTALS                                                                                            0            413


Key to abbreviations:  IHP/HOP - Inalusionary Housing Program/Housing Opportunities Program


BJ:hdTABLEGl .WP (1/8/96)


                                                         H-G-3


PAGE 183 Show Image
             TABLE G-2:  LOW-INCOME MULTI-FAMILY RENTAL UNITS WITH AFFORDABILITY RESTRICTIONS EXPIRING FROM
                                             JULY 1. 1994 THROUGH JUNE 30. 1999


                                                                              Earliest Possible
                                                     Type(s) of Government    Expiration of      Number of Low-Income Units
Project Name             Project Location/Address    Assistance Used          Restrictions       Elderly      Non-elderly


Villa Serena             111 Via Serena                  IHP/HOP                11-30-94             0             301
                         Rancho Santa Margarita

Foothill Oaks            Foothill Ranch PC,  PA 2A       IHP/HOP                02-13-95             0             106
                         Foothill Ranch

Barcelona                23592 Windsong                  IHP/HOP                06-05-95             0              52
                         Aliso Viejo

Paloma Summit            26371 Paloma                    IHP/HOP                06-05-95             0             140
                         Foothill Ranch

Innsbruck                23412 Pacific Park Dr.          IHP/HOP                06-05-95             0             124
                         Aliso Viejo

St. Moritz               23411 Summerfield               IHP/HOP                06-05-95             0             239
                         Aliso Viejo

Pacific Terrace          15000 Pacific                   HUD Section 8          05-21-96            97               0
                         Midway City

Aliso Creek Villas       24152 Hollyoak                  MFR Bond               11-11-96             0             107
                         Aliso Viejo

Villa La Paz             2 Via Amistosa                  MFR Bond               02-15-97             0             100
                         Rancho Santa Margarita

(Continued on next page)


                                                            H-G-4


PAGE 184 Show Image
                                                 TABLE G-2 (continued)

                                                                          Earliest Possible
                                                   Type(s) of Government  Expiration of     Number of Low-Income Units
Project Name           Project Location/Address    Assistance Used        Restrictions      Elderly      Non-elderly


Trabuco Highlands Apts.   31872 Joshua Dr.         MFR Bond               01-01-98             0             37
                          Trabuco Canyon

Villa Aliento             114 Aliento              MFR Bond               07-30-98             0             45
                          Rancho Santa Margarita


SUBTOTAL                                           IHP/HOP                                     0             9G2
                                                   MFR Bond                                    0             289
                                                   HUD Section 8                              97              0

TOTAL                                                                                         97           1,251


Key to Abbreviations:  HOP - Housing Opportunities Program
                       HUD - U.S. Department of Housing and Urban Development
                       IHP - Inclusionary Housing Program
                       MFR Bonds - Multi-Family Revenue Bonds
                       PA - Planning Area


BJ:hdTABLEG2 .wP (1/8/96)

                                                          H-G-5


PAGE 185 Show Image
1.  Federal Programs

    The Pacific Terrace Apartment project is the only federally assisted
    project within the unincorporated area which has affordability
    restrictions expiring during the 10-year period.  This project
    utilized Section 8 Rental Assistance.  The affordability restrictions
    on the Pacific Terrace Apartments expired on May 21, 1991 but were
    automatically renewed for an additional five years since the owners
    did not provide a 1-year notice of intent to opt out of the program.
    The owners will be required to provide a 1-year notice of intent in
    1995 if they intend to opt out of the Section 8 Rental Assistance
    Program in 1996 and convert the units to market-rate rents.

2.  Multi-Family Revenue Bond Program

    Prior to 1986, bond-financed developments were required to provide at
    least 20 percent of the total units for lower-income households,
    although the rents for these units were unrestricted. All of the
    projects included in the inventory were financed prior to 1986.
    However, the market rents for all of the bond-financed units currently
    meet the HUD affordability standard for a low-income household of four
    persons. On January 1, 1986, the Tax Reform Act of 1986 required the
    bond-financed developments to provide at least 20% of the total units
    for very-low-income persons at affordable rents as defined by HUD.

    Developers utilizing bond financing were required to enter into
    regulatory agreements with the County to retain the units as
    affordable for a period of 10 to 15 years after 50 percent of the
    units were first occupied.  For purposes of this analysis, the
    expiration date in the regulatory agreement was considered to be the
    earliest possible date for the expiration of affordability
    restrictions.  Between July 1989 and July 1994, no bond-financed units
    are at risk (see Table G-l). Between July 1994 and July 1999, 289
    bond-financed units are at risk of converting to market-rate rents
    (see Table G-2).

3.  Inclusionary Housing Program/Housing Opportunities Program

    The County's Inclusionary Housing Program (IHP) was a mandatory
    affordable housing program which was in effect from 1979 until 1983.
    It was superseded by the Housing Opportunities Program (HOP) which
    incrementally phased out the mandatory requirements. No mandatory
    affordable housing requirements have been in effect since 1986;
    however, protects approved under the mandatory requiretrtents in effect
    prior to 1986 are still subject to those requirements. (For a
    complete description of the Housing Opportunities Program, see
    Appendix D.)

    Developers of projects with mandatory requirements under the IHP/HOP
    were required (through conditions of approval) to enter into
    agreements with the County to ensure the continued affordability of
    these units for a 5-year period. Only those units which have
    low-income affordability restrictions (as opposed to Moderate I and


                                H-G-6


PAGE 186 Show Image
        Moderate II) are included in the inventory.

        As defined by the HOP, low-income units are those which are affordable
        to households earning 80 percent or less of the County's median
        household income.  The County1s median household income, as published
        and periodically updated by Chapman University, is currently $54,380
        (for the period from July through September 1993). Currently rents
        which do not exceed $1,088 per month are considered to be affordable
        to low-income households under the IHP/HOP.

        Since July 1989, the affordability restrictions have expired on 182
        low-income IHP/HOP units.  The affordability restrictions on 231 units
        will expire between July 1993 through June 1994, while the
        restrictions on 962 units will expire between July 1994 and July 1999.
        The peak period for potential conversion is June 1995 when 555 units
        are at risk. Even though these units are technically at risk of
        converting from low-income use, it should be noted that market-rate
        rents within the county currently average $784 per month (Research
        Network Limited).  In addition, County staff has contacted the
        management of each of the 3 apartment complexes on which the
        affordability restrictions have already expired (182 rental units).
        The following is a listing of the current market-rate rents at each of
        these projects:

        Project Namel         Monthly Rent (Range)       Monthly Rent (Range)
        (Number of Units)        1-bedroom units           2-bedroom units

        Las Colinas (14)          $810 to $830             $930 to $975
        Aliso Viejo

        Villa La Paz (25)         $595 to $690             $775 to $875
        Rancho Santa Margarita


        Aliso Creek Villas (143)  $700 to 725              $925 to 970

        As demonstrated above, these rents are below the current IHP/HOP
        low-income rental restriction of $1,088 per month. Even if the units
        with affordability restrictions that have not yet expired convert to
        market-rate rents, under current market conditions, the units would
        continue to be affordable to low-income households per the definition
        of affordability included in the IHP/HOP (see Appendix D).

D.  Cost Analysis of Preserving vs. Replacing At-Risk Units

    EMA/Housing and Redevelopment staff have estimated the cost of subsidizing
    a low-income rental unit for 15 years to be approximately $15,000, while
    the estimated cost of producing a new, low-income rental unit is
    approximately $85, 000.

    During the period from July 1, 1994 to June 30, 1999, 289 units financed
    through the Multi-Family Revenue Bond Program are at risk of converting
    from low-income use.  The County may potentially refund (refinance) the


                                     H-G-7


PAGE 187 Show Image
bond issues which financed these developments and extend the regulatory
period to maintain these units as affordable for low-income households.
As previously noted, all of these units were bond-financed prior to 1986
and had no rent restrictions.  These projects could potentially be
refunded under the current Multi-Family Revenue Bond Program requirements
which stipulate that 20 percent of the units be reserved for
very-low-income households, thereby strengthening the affordability
restrictions on these units.  Since the bond issues include the costs of
issuance, such refunds would result in no net costs to the County.   The
cost of replacing these units with new units would be approximately
$24,565,000.

During the period from July 1, 1989 through June 30, 1994, the
affordability restrictions on 413 units under the IHP/HOP will expire.  Of
this total, the restrictions on 182 units have already expired, and the
units have converted to market-rate rents.  The cost of replacing these
413 units with new units would be approximately $35,105,000.   Between July
1, 1994 and June 30, 1999, the affordability restrictions on 962 IHP/HOP
units will expire.  The cost of replacing these units would be
approximately $81,770,000.

As noted above, market-rate rents for the IHP/HOP units are currently
lower than the low-income affordability restriction.  Since the low-income
affordability restriction for IHP/HOP units (currently $1,088.00 per
month) is based upon the county's median income, it is unlikely that
market-rate rents will increase so as to exceed the low-income rental
restriction.  Even if market-rate rents were to increase to exceed the
current rental restriction of $1,088.00 per month, it is likely that the
low-income rental restriction will also experience a commensurate increase
since it is based on the county's median income.

Although market-rate rents could increase due to market conditions and,
thereby, exceed the affordability restriction, it is not feasible to
estimate the cost of preserving these units as affordable since the
potential difference between the future market-rate rents and the future
low-income rental limit is unknown.   (See additional discussion below
under Section H:  "Program Efforts to Preserve Assisted Units:   Monitoring
Market-Rate Rents.")

During the period from July 1, 1994 to June 30, 1999, 97 federally
assisted units are at risk of converting from low-income use.   The cost of
preserving these units as affordable would be approximately $1,455,000
assuming a $15,000 subsidy per unit.  The cost of replacing these units is
approximately $8,245, 000.

In summary, the least costly approach to preserve the federally assisted
and bond-financed units with expiring affordability restrictions would be
to refinance the units and extend the affordability controls for another
10-15 years.  The most costly approach would be to replace the units with
new rental units.


                                 H-G-8


PAGE 188 Show Image
E.  Resources for Preservation

    As required by Government Code Section 65583, the following is a list of
    public and private nonprofit corporations which are known to have legal
    and managerial capacity to acquire and manage the housing developments
    with expiring affordability restrictions.  (It should be noted that State
    law currently precludes the Orange County Development Agency from using
    redevelopment set-aside funds outside of the redevelopment area unless the
    Board of Supervisors adopts a resolution finding that the use of funds
    outside the redevelopment area will benefit the redevelopment area
    itself.)

    Orange County Housing Authority         Orange County Development Agency
    2043 N. Broadway                        1200 N. Main Street, Suite 600
    Santa Ana, CA 92706                     P.O. Box 4048
                                            Santa Ana, CA  92702

    Civic Center Barrio Housing Corp.       Colonia Service Committee
    431 5. Bristol                          10871 Garza Ave.
    Colonia Community Center                Anaheim, CA 92804
    Santa Ana, CA 92703

    Dayle McIntosh Ctr. for the Disabled    Episcopal Service Alliance
    150 W. Cerritos, Bldg. # 4              23421 5. Pointe Drive, Ste. 130
    Anaheim, CA 92805                       Laguna Hills, CA   92653

    Habitat for Humanity of O.C., Inc.      Home Aid
    P.O. Box 7086                           2001 E. 4th Street, #224
    Orange, CA 92613                        Santa Ana, CA  92705

    O.C. County Community Housing Corp.
    1833 E. 17th Street, Suite 207
    Santa Ana, CA 92701


F.  Estimates of Available Funds

    As required by Government Code Section 65583, the following is a
    discussion of potential funding sources which could be used to preserve
    assisted units with expiring affordability restrictions.

    1.  Multi-Family Revenue Bond Program

        Since there are many influencing factors affecting bond financing, the
        County cannot estimate the amount `of funding which may be available to
        finance new units or refinance existing units in order to extend the
        affordability restrictions.  Initially, a developer must apply to the
        County to utilize multi-family revenue bond financing.  The County
        must then apply to the California Debt Limit Allocation Committee
        (CDLAC) for individual allocations for all new financing through
        private activity bonds, including housing revenue bonds. According to
        CDLAC staff, the annual State limit for private activity bond
        authority totals $50 per capita, currently about $1.5 billion, of


                                     H-G-9


PAGE 189 Show Image
    which about $1.2 billion (80%) will be annually available for housing
    revenue bonds

    The critical factor for this type of financing is that the project
    must meet loan-underwriting standards and obtain credit support for
    the bond issue from a private lender/guarantor or mortgage insurer.
    Generally, revenue bonds cannot be rated solely on the basis of the
    security provided by the value of the apartment development but must
    have some form of third-party guarantee. It has become increasingly
    difficult for developers to obtain the necessary credit enhancement to
    support a bond issuance. Recently, lenders are often unwilling to
    offer support in amounts sufficient to finance larger apartment
    developments.

2.  Federal Programs, State Programs, Redevelopment Funds, and OCHA
    Operating Reserves

    The following is an estimate of funds (other than Multi-Family Revenue
    Bonds) available from federal, state, and local programs to address
    new and continued housing affordability. The funds apply to the
    unincotporated area only and are estimated in two, five-year
    increments. A portion of these funds could be used to preserve units
    with expiring affordability restrictions or to provide replacement
    units. It should be noted that the estimates for the state and
    federal programs are based on the assumption that funding for these
    programs will continue at current levels.


                                    ESTIMATED FUNDS AVAILABLE1
    PROGRAM                 7-1-89 TO 6-30-94        7-1-94 TO 6-30-99

    CDBG                     $20,075,000.               $27,075,000.

    Redevelopment
    Agency                    35,000,000.               45,000,000.

    Federal HOMES              9,125,000.                9,125,000.

    OCHA Reserve               2,450,000.                1,750,000.

    Other2                     1.825£000.                1.825.000.

    Total                     68,475,000.               84,775,000.


    1 Source: EMA/Housing and Redevelopment

    2 Other funds include those available through other state and federal
      housing assistance programs.


                               H-G-l0


PAGE 190 Show Image
G.  quantified Obiectives:  Number of At-Risk Units to be Preserved

    Government Code Section 65583 requires jurisdictions to establish
    quantified objectives for the number of units to be constructed,
    rehabilitated, and conserved over a five-year period. The quantified
    objectives are included in Chapter 4. The objective for units to be
    conserved includes a subtotal for the number of at-risk units to be
    preserved.

    As noted above, the restrictions on 413 IHP/HOP units will expire during
    the period from July 1989 through June 1994. Of this total, the
    affordability restrictions on 182 units have already expired and the units
    have converted to market-rate rents. The County's objective is to
    conserve all of these units as affordable per the criteria of the IHP and
    HOP programs. Currently, market-rate rents for the IHP/HOP units are
    lower than the low-income rental restrictions for these units.  Should
    market-rate rents rise above the limit for low-income rental units, the
    County will examine the potential to extend the affordability controls on
    these units through refinancing, use of rent subsidies, or other
    incentives. No bond-financed or federally assisted units are at risk
    during the five-year period.

H.  Program Efforts to Preserve At-Risk Units

    1. Provision of Rental Assistance

       Prior to the expiration of the affordability restrictions on projects
       included in the inventory (with the exception IHP/HOP projects and
       projects financed with Multi-Family Revenue Bonds), EMA/Housing and
       Redevelopment shall coordinate with affected owners to determine the
       owners intent with regard to the assisted units.  For those projects
       where the rents will convert and will no longer be affordable to
       low-income households, EMA/Housing and Redevelopment will examine the
       possibility of providing rental assistance or economic incentives to
       the apartment owners in order to retain these units as affordable.
       Potential funding sources for these incentives or rental assistance
       include federal HOME funds, OCHA Operating Reserves, and redevelopment
       set-aside funds.

    2. Multi-Family Revenue Bond Program

       CAO/Public Finance and Advocacy will survey owners of those units
       financed through the Multi-Family Revenue Bond Program which have the
       potential to convert to non-low-income use and examine the feasibility
       of refunding (refinancing) these projects with Multi-Family Revenue
       Bonds.  CAO/Public Finance may issue tax-exempt housing revenue bonds
       to retain the supply of rental housing for low-income persons.
       Existing, bond-financed units may be refunded to extend the
       affordability restrictions.

       Bond financing or refunding may also be used for projects which have
       additional funding, such as redevelopment tax increment, CDBG or
       Section 8 Operating Reserve funds. This additional funding may assist


                                   H-G-ll


PAGE 191 Show Image
       developers to secure the necessary credit support and increase the
       number of affordable units developed or retained for low- and
       very-low-income persons. CAO/Public Finance may also request that
       EMA/Housing and Redevelopment consider providing rent subsidies or
       incentives for the bond-financed projects upon expiration of the
       affordability restrictions.

   3.  Monitor Market-Rate Rents

       As discussed above, units with affordability restrictions under the
       IHP or HOP are technically at risk; however, market-rate rents are
       presently well below the low-income rental restriction of $1,088 per
       month.  No programs are necessary at this time to preserve these units
       for low-income households (as defined by the IHP/HOP).  However,
       EMA/Advance Planning Division will continue to monitor market-rate
       rents on an annual basis. Should market-rate rents rise above the
       limit for the low-income units then at risk, the County will consider
       the use of other programs (CDBG, Operating Reserves, etc.) to preserve
       these units as affordable to low-income households.

   4.  Notification of Nonprofit Entities

       Pursuant to state law, all of the projects included in the inventory
       (with the exception of bond-financed and IHP/HOP projects) are
       required to submit notices of intent to the local government one year
       in advance of the expiration of the affordability restrictions. Upon
       receipt of these individual notices, EMA/Housing and Redevelopment
       shall notify the listed nonprofit entities to determine if they are
       interested in acquiring and managing such projects. EMA/Housing and
       Redevelopment shall also consider the possibility of acquiring and
       managing these projects.

   5.  Update Inventory of Projects with Expiring Affordability Restrictions

       In conjunction with each comprehensive 5-yea? Housing Element update,
       EMA/Advance Planning Division will update the Inventory of Assisted
       Rental Units (Tables G-l and G-2) to include those projects assisted
       through federal, state, and local programs which are eligible to
       convert from low-income use during the following 10-year period. Any
       necessary revisions to the Preservation of Assisted Rental Units
       Program (Appendix G) will be made in conjunction with these updates.


BJ:h~PPG.WP (1/8/96)


                                  H-G-12


PAGE 192 Show Image
                APPENDIX H


Board of Supervisors' Resolution No. 93-1006

             September 14, 1993


PAGE 193 Show Image


PAGE 194 Show Image
      2

      3                           RESOLUTION OF' TRE. BOARD OF' SUPKRVISORS'

      4                                 ORANGE COUNTY, CALIFORNIA

      5                                      ~~eptember 14, 1993

      ()            On the motion of Supervisor   Wieder      , duly seconded and carried,   the
             foudwing Resolution was adopted.
      7

                    WHEREAS, pursuant to California Government Code Section 65000 et seq.,
      8      the County of Orange has an adopted General Plan; and

      9             WHEREAS,  SB 1019 (L. Greene, 1991) amended Government Code Section 65583
             to require local jurisdictions to include within their Housing Elements:     1) an
      10     inventory of government-assisted,  low-inconie, multi-family rental units which
             have affordability restrictions expiring during the next ten years;    2) program
      [1     efforts to preserve these assisted units as affordable for low-income
             households; and 3) a breakdown of the quantified objectives for the number of
      12     housing units to be constructed,  rehabilitated and conserved by income category;

      13            WHEREAS,  in conformance with State law and the Orange~County Zoning Code,
             a legally noticed public hearing was held by the Orange County Planning
      14     Commission to consider Housing Element Amendment 1993-1 on July 27,    1993; and

 ~z   ~5            WHEREAS,  the Planning Commission acted on this project on July 27,   1993
WOOS         and adopted Planning Commission Resolution No.   93-10 recommending the Board of
      16     Supervisors adopt Housing Element Amendment 1993-1;
  z
oz~
      17            WHEREAS,  in compliance with the California Environmental Quality Act
             (California Public Resources Code Sections 21000,    et seq.) and the State CEQA
      18     Guidelines (California Administrative Code Sections 15000,    et~seq.), Negative
             Declaration IP 92-52 has been prepared to address the potential adverse
      19     environmental impacts of the' proposed project.    It was posted for public review'
             on January 20,  1993;
      20
                    WHEREAS,  in compliance with~California Government Code,   the Environmental
             Management Agency transmitted Draft Housing. Element Amendment 1993-1 to the
             State Department of Housing and Community Development for review and report of
      22     its advisory findings; and

      23            WHEREAS,  the Department of Housing and Community Development's comments
             on Draft Housing Element Amendment 1993-I were reviewed and considered by the
      24  `  Board of Supervisors.   The Draft Housing Element was revised to address these
             comments;
      25
                     NOW, THEREFORE BE' IT RESOLVED, that the Orange County Board of
      26      Supervisors finds that Negative Declaration No.   IP 92-52 satisfies the
              requirements of CEQA for this project and is therefore approved.     It was
  ~   27      considered and found adequate in addressing the environmental impacts for the
              project prior to its approval.   The Negative Declaration            the
  J   28      independent judgment of the Lead Agency.                   r~lEecCtsE  V ED
            Resolution No.    93-1006
            ?ublic Hearing - Housing E1~r~rit ~r~~nt                        SEP 22 1993
            No.1993-i (H93-l) -- Negative Declaration      1.
            No.92-52           B?D:ep          `                                EMA


PAGE 195 Show Image


PAGE 196 Show Image
    1        BE IT FURTHER RESOLVED that the Orange County Board of
        Supervisors finds, pursuant to Section 711~4 of the Fish and Game
    2   Code, that the project is exempt from the required fees as it has
        been determined that no adverse impact to wildlife resources will
    3   result from the project.

    4        BE IT FURTHER RESOLVED that the Orange County Board of
        Supervisors adopts Housing Element 1993-1.
    5


    6

    7                                 _______________

                                      Chairman of the Board of Supervisors
    8

    9   SIGNED AND CERTIFIED THAT A COPY
        OF THIS DOCUMENT HAS BEEN DELIVERED
  10    TO THE CHAIRMAN OF THE BOARD

  11

  12           YLLIS A. HENDERSON
        Cler  of the Board of Supervisors
  13      Orange County, California

  14
        AYES:    SUPERVISORS  HARRIETT N. WIEDER, WILLIAM G.  STEINER, ROGER
  15                          R. STANTON, GADDI H. VASQUEZ, AND THOMAS F.

  16                          RILEY
        NOES:    SUPERVISORS  NONE
  17
        ABSENT:  SUPERVISORS  NONE
  18

  19    STATE OF CALIFORNIA

  20    COUNTY OF ORANGE       ss.

  21         I, PHYLLIS A. HENDERSON, Clerk of the Board of Supervisors of

  22    Orange County, California, hereby certify that the above and
        foregoing Resolution was duly and regularly adopted by the said Board
        at a regular meeting thereof held on the 14th day of September,   1993,
  23    and passed by a unanimous vote of said Board.

  24         IN WITNESS WHEREOF, I have hereunto set my hand and seal this

  25    14th day of September, 1993.

~ 26

~ 27

  28                                  Clerk 0  the Board of Supervisors of
                                          Orange County, California
                                        2.