A HOUSING AND COMMUNITY LAND TRUST FUND
California jurisdictions that are producing workforce and
affordable housing adequate to their needs devote other resources
and revenues to that production besides 20% set aside funds. They,
in turn, attract numerous grants, subsidies and loans from a variety
of outside sources. Some of the most successful jurisdictions in
producing workforce and affordable housing have done so through
the creation of housing trust funds to (1) dedicate specific
resources to increased housing production; (2) capture subsidies,
grants and below market loans available to such non-profits; (3)
leverage funds 5-10 times the contributions of participating jurisdiction(s).
Finding: To keep new housing units affordable
in the long-term, some jurisdictions have created community land
trusts, separate nonprofit corporations that retain ownership of the land on which for-sale
affordable housing (and sometimes rental housing) is built, therefore
keeping the dwelling appreciation from pricing future owners (or
renters) out of affordable units.
1: Create a Housing and Community
Land Trust Fund--a hybrid nonprofit corporation based on successful
trust fund models and the unusual needs of the FORA jurisdictions--to
produce affordable and workforce housing on Fort Ord and elsewhere
in FORA jurisdictions. Jurisdictions and local groups and corporations
willing to contribute to its success will dedicate a revenue stream,
land, services, and/or personnel and constitute its core membership.
The first three (or more) years of operation could be focused
on production of mixed income housing at Fort Ord; thereafter,
the fund's services could be expanded to include all of the Monterey
Peninsula (or the entire County).
formula for local funding of the Housing and Community Land Trust
can be devised among the jurisdictions to take into account historical
inequities, and allow jurisdictions with land at Fort Ord to dedicate
land to the Fund for affordable housing instead of a revenue stream.
2: The Housing and Community
Land Trust will need a variety of funding mechanisms and seed
capital. The Clark Group recommends that FORA jurisdictions act
to create a tax increment pool as one of the most significant
Finding: FORA and its jurisdictions
are blessed with several experienced nonprofit developers and experts
in building and managing affordable housing who are available to
assist FORA in developing affordable/workforce housing at Fort Ord.
FORA can use its expertise and capability to greater advantage than
it has historically.
3: Invite local and regional
nonprofit developers to help design the Housing and Community
Land Trust Fund. Invite them to help FORA design financial packages,
down payment assistance programs, employer assisted housing programs,
homeowner information/education programs, and modeling a nonprofit
and for-profit developer partnership to produce mixed income housing.
They can also be tapped to provide administration and management
of dedicated affordable units, i.e. qualifying potential tenants
and administering resale restriction agreements.
nonprofit developers include: CHISPA, Mid-Peninsula Housing
Coalition, South County Housing and the Housing Authority of
is the developer of Moonridge in Half Moon Bay, City Center
Plaza in Redwood City and Open Doors in Los Gatos, all winners
of the American Building Association's awards and other design
and LIHTC Best in the Nation awards.
nonprofit developers include nationally acclaimed BRIDGE, Inc.,
creator of award-winning mixed-income developments and Ecumenical
Association for Housing, who has been instrumental in building
workforce and affordable housing in the San Rafael and San Jose
Housing Authority of Monterey's staff represents decades of
experience in the County and elsewhere in the country in affordable
housing development and brings a nonprofit development perspective
to FORA deliberations which is important to hear out, even when
its conclusions do not match that of for-profit developers.
has developed and can provide a top-notch homebuyer education
and counseling program that FORA (through the Housing Trust
Fund) can incorporate into its own workforce housing, employer
assisted housing or other homeownership programs and services
at Fort Ord.
Finding: The FORA Capital Improvement Plan
(CIP) allocates over $76 million dollars to contingency costs,
including $30.78 million dollars for "potential sound walls for
major streets" and "street landscaping"; $14.40 million for "caretaker
cost contingency"; and $30 million for a contingency reserve.
The plan also projects net revenue of $13.57 million. These contingencies
and revenues total $89,719,569. That figure is the FORA developer
fee equivalent of 2,564 units of residential housing.
4: Instead of devoting the
entire $89 million to contingencies and net reserves, FORA could
allocate some funds to forgive, discount or defer developer fees
on affordable and workforce housing units. This would require
an amendment of the Rate and Method of Apportionment of Special
Taxes for the Community Facilities District (CFD), an affirmative
vote of two-thirds of the current landowners.
FORA'S INTERNAL CAPACITY TO ADDRESS HOUSING NEEDS
Finding: No staff with expertise in Housing
Trust Funds or other affordable housing subsidization methods are
engaged by FORA or the jurisdictions in developing and implementing
a FORA workforce housing strategic plan. FORA's Affordable Housing
Task Force has been given no measurable goals or deliverables, and
has not made the task force or any other group responsible for delivering
an affordable and workforce housing action plan.
Get free professional expertise from the Center for Community
Change to develop a Housing and Community Land Trust Fund.
Center for Community Change's Housing Trust Fund Project--the
only national source of technical assistance on housing trust
funds--works with organizations interested in creating a housing
trust fund, through every necessary stage, including:
of a housing trust fund proposal
to establish a fund
to implement the fund
assistance has saved local groups enormous amounts of time and
expense and helped them develop funds that can benefit from the
lessons learned by earlier trust fund campaigns. For more information,
contact Mary Brooks, Housing Trust Fund Project, Frazier Park,
6: Hire a housing coordinator (or acquire a loaned
housing executive from one of the jurisdictions' housing or redevelopment
authorities) to work for 6-8 months with CCC to (a) to coordinate
solicitation of funds necessary to found the trust fund; (b) organize
a workshop (d) file for 501(c)(3) status for the Housing and Community
Land Trust Fund.
7: Conduct an independent workshop for Board, staff
and interested publics, inviting top
nonprofit and for-profit affordable and workforce housing
developers, lenders, underwriters and advocates (e.g. Enterprise
Foundation, Center for Community Change, BRIDGE, LISC, Santa Clara
Housing Trust Fund, Fannie Mae, Bank of America, FHLBSF as well
as local housing officials) to help construct an action plan and
timetable for overcoming barriers to affordable and workforce
housing production at Fort Ord, including the establishment of
a Housing and Community Land Trust fund.
actions are recommended to be undertaken concurrently in order
to move beyond discussion to action as quickly as feasible.
NEW FUNDING AND APPLY EXISTING AND FUTURE FUNDS
Nearly half ($145 million) of the Base Reuse Capital Improvement
Plan revenues/costs are dedicated to transportation infrastructure.
8: Continue to
seek transportation funding for FORA-related projects
within federal highway appropriations and within the next round
of highway funding, currently dubbed "Next-TEA." Devote any funds
awarded to these projects and no longer needed to underwrite transportation
infrastructure on or off Fort Ord to forgive developer fees on
affordable or workforce housing. Alternatively, place the funds
in a Housing and Community Land Trust Fund to support a variety
of affordable and workforce housing subsidies and services.
Finding: There are a number of free
services which would increase FORA's understanding of affordable
and workforce housing finance. Fannie Mae, for example, has a
variety of special mortgage products designed to increase affordable
and workforce housing. Federal Home Loan Bank, Wells Fargo, Bank
of America and other financial institutions also have special
programs and products which will boost the effectiveness of a
Housing and Community Land Trust Fund. FOR A, through its recently
received credit enhancement grant, can initiate these steps in
a logical follow-up to its previous work.
9: As current escrow funds from the previous grant
become available, they should be reprogrammed for work with Fannie
Mae, especially the Local Partnership Office, and other financial
institutions (listed in the Resources section) to create partnerships
between local or regional lenders and FORA to increase subsidies
and decrease financial constraints to expanding affordable homeownership
on Fort Ord.
Finding: The former Fort Ord made the Superfund
list in 1990. Cleanup will include extracting and treating contaminated
groundwater and capping the landfills to limit future infiltration
and minimize additional leaching. Forty-one sites have been identified
as potentially hazardous sites.
10: Working in coordination
with the Environmental Protection Agency (EPA) and the State of
California Department of Toxic Substances Control (DTSC), invite
self-insured brownfield redevelopment companies with nationally
recognized decontamination expertise to re-evaluate properties
currently believed irremediable for housing and retail development
at Fort Ord. In addition (not in lieu of) increasing production
of workforce housing on clean property, work with the EPA, DTSC
and the Army to transfer land that can be privately remediated
by such companies, selling contaminated land at an appropriate
discount, with stipulations for production of mixed income
Finding: FORA has a grant to research innovative
environmental remediation measures and with FORA's support, the
U.S. Army Corps of Engineers Construction
Engineering Research Lab (CERL), CSUMB and others are engaged in
developing technologies and finding processes to reduce the costs
of FORA building deconstruction and to prevent long-term environmental
impacts from demolition. The potential exists at Fort Ord—and
many other active and retired DOD facilities--for creating a public/private
deconstruction program more cost-efficient than demolition, a program
that could become a national model and provide an income center,
local jobs and training programs. FORA has not factored in the full
cost of disposing of these materials (such as landfill and opportunity
also exists the potential that millions of dollars can be saved through
building deconstruction by companies and/or nonprofits. The materials
that are salvaged can be reused or sold, the donated labor becoming
"sweat-equity," credited towards home ownership and relieving jurisdictions
of some of the financial burden of building removal. Some of the
lumber in old Army installations is more valuable than new lumber
at building supply stores. To take advantage of this situation,
Habitat for Humanity has developed a program called "ReStore," where
deconstructed materials are brought for reuse. Deconstruction also
offers a better long term solution for the environment.
11: Develop and implement
a policy to support federal and local pilot programs in deconstruction
and recycling. Raise the goal for recycling in building removal
activities to 50 percent. Support the creation of a building materials
resale store on the Former Ft Ord.
Finding: The state's recent passage
of Proposition 46 offers FORA the opportunity to solicit funds from
the new Local Housing Trust Funds program and other new programs.
12: Take full advantage of
the provisions of Proposition 46—The Housing and Emergency
Shelter Trust Fund Act of 2002. Programs of note:
Housing development, $800 million annually, Notice of Funding
Availability (NOFA) January, 2003, non-profit and for-profit
developers and public agencies eligible for new construction,
rehab and preservation of rental housing for low income households.
Housing Trust Funds, $25 million in grant funds, NOFA 07/03,
non-profits and public agencies are eligible applicants. If
a public agency is the applicant, grant is conditional on housing
on housing element approval?
Homebuyers Down payment
Credit Teachers' Down payment Assistance Program
low-interest loans up to 3% of purchase price for 1st
time MI and LI homebuyers
to school personnel for down payment assistance
disbursed through mortgage lenders and brokers
available first come, first served beginning 01/03
available beginning 01/03
low income households
Agencies, Non-profit developers
if PA is applicant
Equity and Growth in Neighborhoods
payment assistance to buyers of new homes located in developments
for which the local jurisdiction has reduced regulatory barriers
or provided incentives
PA then loans funds to individuals
points on application is housing element approved
Balance Incentive Grants
capital projects only)
to local jurisdictions that issue new residential building
permits specifically for LI & VLI housing
Must have filed Annual General Plan housing reports
state has a significant home purchase assistance pilot program
to assist first-time homebuyers in high cost areas in California.
The Monterey Peninsula area was the highest housing cost area
in the state in 2002 but it is not included in High Cost Area
Home Purchase Assistance Pilot Program (HiCAP). Currently eligible
counties in the program are: San Francisco, San Mateo, Santa Clara,
Alameda, Contra Costa and Sonoma.
12: Advocate state government inclusion of Monterey County
in any extension of the HiCAP pilot program.
Finding: The housing crisis in Monterey
County is a regional problem requiring a regional solution. The
jurisdictions that currently have the most very low and low income
housing and do not need to create more to achieve a jobs/housing
balance (Marina, Seaside) are the cities that will be responsible,
along with the County, for creating most of the housing on Fort
Ord. If Marina and Seaside are expected to create more affordable
housing (moderate, low and very low income) at Fort Ord, all FORA
jurisdictions who need affordable housing should share in the costs
as well as the benefits of producing that housing on Fort Ord.
13: Following Fair Housing
Act guidelines, (1) expand and instigate Employer Assisted Housing
programs for teachers, university employees, and city and county
public safety employees (in all FORA jurisdictions) through the
Housing and Community Land Trust Fund. (2) Use the availability
of employer-assisted workforce housing programs in recruitment
of business and industry to Fort Ord. (3) Use recruitment in Employer
Assisted Housing programs as the backbone of the first workforce
housing development on the former Fort Ord. Housing Trust Fund
Employer Assisted programs could be used by the jurisdictions
to offer 1) preference in Fort Ord affordable housing or 2) housing
subsidies inside their jurisdictions.
Monterey County, in its East Garrison option announcement, gives
its developer the flexibility to reduce developer fees on affordable
units (increasing fees for above-market units as a cross subsidy).
This is the most straightforward way to increase affordable housing
in developments at Fort Ord given current redevelopment cost-recapture
15: FORA's planned mixed use projects that include mixed income
housing should develop a flexible development fee structure based
on the goals and strategies for the redevelopment of Fort Ord.
LEGISLATORS TO ACHIEVE LONG-TERM GOALS
Some of the regulatory hurdles that FORA faces can be overcome
by enabling legislation. Workforce housing challenges at Fort Ord
are understood by most legislators, and they are willing to help
either by seeking funding or relaxing barriers.
16: FORA should develop a long term legislative strategy and
work closely with the California legislature and its Congressional
delegation, two of whom sit on committees that directly affect
appropriations and the reuse of military installations.
to Fort Ord Issues and Actions]