HomeMy WebLinkAboutSS2 - Local Housing Trust - PowerPointJanuary 10. 2023
Item No. SS2
Introduction to the Newport Beach Housing
Trust
Addressing our
Community 's
Housing Crisis = -
Together
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Newport Beach Housing Trust
A Unique Collaboration to Meet the Moment
• The Newport Beach Housing Trust was formed as a result of a unique
collaboration between Still Protecting Our Newport (SPON) and the
owners/developers of the Ritz Carlton Residences at the VEA Hotel
Newport Beach.
• The two groups agreed that there was a need for an additional effort from
that of the City's to meet Newport Beach's affordable housing needs.
• The goal was to complement the City's affordable housing efforts.
• As a result, a formation group was established to determine feasibility and
the approach best suited for Newport Beach.
• Our first step was to retain a consultant team to assist the formation group.
Housing Trust Formation Group
A Unique Collaboration to Meet the Moment
Initial Formation Group Members:
Charles Klobe — Still Protecting Our Newport
Nancy Scarbrough — Still Protecting Our Newport
J ea n Watt — Still Protecting Our Newport
Kory Kramer — Eagle Four Partners
Peter Zak — Lyon Living
Kevin Martin — Lyon Living
Ed Selich — Former Mayor
Additional Formation Group Members:
Julie Heggeness — Hoag Hospital Foundation
Rick Robinson — Farmers & Merchants Bank
What is a Local Housing Trust?
• A Local Housing Trust acts as an intermediary to fund and provide
technical assistance to meet community -centered housing needs that
are not fully met by others.
• Operating in one of California's most expensive real estate markets,
there is tremendous unmet need for housing that is affordable to the
workforce, seniors, and others with special needs.
What is a Local Housing Trust?
A Housing Trust contributes to opportunities for generations of families and the workforce
to live and work in the community by:
• Working closely with community partners to ensure there are housing opportunities for
everyone, with a focus on rental and ownership housing for low income and missing
middle households;
• Providing nimble, low-cost pre -construction financing for developments that offer rental
and ownership housing that's affordable to the local workforce; preserving and
extending the life of existing housing through low-cost loans; as well as education and
technical assistance; and
• Working in partnership with other housing providers, financial institutions, corporations,
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sts, foundations, and governmental entities to carry out our purposes,
including receipt of revenue from dedicated fundingsources such as
endowments and ublicpfunding .
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Housing Challenges
Affect Everyone
• Employers struggle to recruit and
retain workers
• Long commutes exacerbate
greenhouse gas emissions, tax our
roads, and stress families
• Health outcomes and educational
attainment — both key measures of
community well-being — are worsening
• Too many people are forced to sleep
on our streets
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Newport Beach is one of California's Most Expensive
Housing
REDFIN
Markets
Newport Beach Median
Home Price $3.3 Million
November 2022
California housing affordability
slides to lowest level in nearly ,-
15 years in second-quarter
2022 as home prices set record
CALIFORNIA
highs and interest rates surge, ASSOCIATION
OF REALTORS'
C.A.R. reports
NEWS PROVIDED BY SHARE THIS ARTICLE
CALIFORNIA ASSOCIATION OF REALTORS@ (C.A.R.) + O 00000
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Aug 11, 2022,10:00 ET
Orange County Home Values
$190369263
+9.2% 1-yr
Zillow
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�oFa� ioas California Housing Affordability 02 2022
AEFPrice •
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�883,37r • • •
median -priced home*
of California households required to make
could afford to purchase a monthly payments
of $4,980 o 30-
median-priced home* year fixed-rate
WjAmortgage of 5.39%.
y% Price YTY Growth
$883.370
$817,950 L100k70
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500k 0
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Wages Aren't Keeping Pace
Orange County Median Family Incomes
4-person households
$40,650 $67,750 $108,400 $119,100 $142,900
(30% of MFI) (50% of MFI) (80% of MFI) (100% of MFI) (120% of MFI)
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Elementary
Bus Driver Teacher Architect Physician's Information
$53,300 $91,989 $101,170 Assistant Systems Manager
$129,077 $177,972
Data Sources: State of California Housing & Community Development Department; State of California Employment Development Department
Newport Beach Housing Trust
Catalyzing new rental and ownership housing by
• Serving as an intermediary between investors and developers
• Assembling capital from public, private, and philanthropic sources
• Extending flexible loans on housing developments that otherwise
would not be funded
• Providing technical assistance to developers of affordable and
missing -middle housing
• Nurturing community partnerships to increase impact
Housing Trust Focus
Examples of Trust Products
• Land banking
• Predevelopment
• Construction
• Down Payment Assistance
Julie Heggeness, Hoag Hospital Foundation —
"The idea of a non-profit Housing Trust to work
alongside the City to bring additional resources
and creative solutions to provide affordable entry
level housing is a welcome one."
Housing Trust Focus
Housing Types Targeted
• Accessory Dwelling Units
• Senior Housing
Missing middle rental and
ownership
Permanent Supportive Housing
Walt Howald, Oasis Senior Center - "I see
firsthand the otherwise invisible need for
community housing options for our seniors
who are struggling to make ends meet as
health challenges emerge and the cost of
living keeps getting higher."
Accomplishments
• Retained Consultants to assist Formation Group.
• Inventoried Local Housing Trusts in California.
• Analyzed the inventory to determine which model best fits
Newport Beach.
• Determined that a model which provides financial assistance
for local projects and complements the City's efforts works
best for Newport Beach.
• Prepared Bylaws and Articles of Incorporation
Next Steps
• Secure an incubator organization
• Finalize formation documents & prepare 501(c)(3) filing
• Appoint a Board of Directors
• File for Spring 2023 State Grants
• Raise operating capital
• Hire an Executive Director
• Raise loan capital
For More Information
www. newportbeach housi ngtrust.or