Identifying Sites for Affordable Housing
Attention Commercial Brokers: Unlock Opportunities in Affordable Housing with OCHFT
Are you a commercial broker with access to properties? The Orange County Housing Finance Trust (OCHFT) is seeking commercial brokers to partner with. OCHFT is a regional government entity committed to creating affordable housing for Orange County residents with very low and low income. Over the next seven years, OCHFT aims to achieve significant affordable housing production and offers capital subsidy dollars to active developers working on affordable housing projects.
To assist commercial brokers and developers in identifying prime opportunities for affordable housing sites, OCHFT has developed a powerful online mapping tool packed with invaluable resources and data. Once it is launched in the Fall of 2023, you’ll be able to enter an address and see the suitability for tax credits for any parcel in Orange County, which will assist in determining if there is a reasonable path to financing for your property.
Why Partner with OCHFT?
Developers specializing in affordable housing have access to substantial public funds and incentives from various sources, including cities, county, state, federal government, private equity, and debt. This presents a unique opportunity for commercial real estate brokers, realtors specializing in land sales, and property owners to sell or partner with these developers and transform their properties into affordable housing.
General Criteria for Potential Affordable Housing Projects:
Financing: Most affordable housing projects require complex funding arrangements involving tax credits, bonds, grants, and other sources. Properties with a clear path to financing or existing funding tied to the property are highly desirable. Proximity to valuable community amenities, such as transportation, grocery stores, libraries, community centers, and medical facilities, is also a significant advantage.
Size: Ideal new construction size ranges from 0.5 to 4 acres, with some flexibility depending on financing and project commitments. Unit density is a key consideration, with an optimal average of 50 units per acre.
Government Support: Some cities are more active in funding and supporting affordable housing. Properties demonstrating strong governmental support (city or county) for affordable housing will be prioritized. The Housing Element of the jurisdiction overseeing the property provides insights into preferred development sites for affordable housing.
Time: Affordable housing deals can be complex and may take longer to close. Properties offered by patient, motivated sellers with a clear commitment to the project's mission have a smoother path to success.
Zoning: Recent changes in California state law have expanded opportunities for high-density affordable housing in various zoning categories, including commercial, medium-density residential, and retail. Developers seek sites that provide desirable housing to residents, so industrial areas and hazard sites are less likely to be considered.
Join the Solution Orange County faces a critical need for affordable housing, including permanent supportive housing for the homeless. Be part of the solution in our community by exploring an unexpected development option for your property or your clients.
Ready to Explore Opportunities? Are you interested in learning more about our new mapping tool and how aligning your efforts with OCHFT could lead to commission opportunities? We invite you to schedule a 30-minute in-person or Zoom meeting with us to discuss this exciting initiative.
Let us know your availability, and we'll find a date and time that works for both of us. Together, we can make a difference in addressing Orange County's affordable housing challenges.