Street Life Project Tiny House Project
Riverside county residents working full-time, at $15 an hour, can afford $720 per month in housing before they qualify as housing burdened, by HUD’s definition. The average rent in Riverside county is $1,245. This reality pushes more people into homelessness who are living on the streets, in shelters, and in transitional housing. The system shuffles the homeless between jurisdictions and from one location to another. Current homeless services in Riverside county maintain long lists of ‘chronically homeless’ individuals authorized for assistance. The few outreach teams stretched to capacity struggle to effectively track people and chronic cycle of homelessness. It is the goal of CAP to formalize the authorization and referral process to regain the confidence of service providers that the wait list is legit and temporary housing beds are available and utilized to full capacity.
Street Life Project is on the front line of responding the explosion of homelessness in the county. Their team has developed plans to create tiny house campuses which include onsite case management, wrap-around services, vocational training and onsite micro businesses. Riverside county has a great need for housing in general and bridge housing is virtually non-existent. Our hope is that the development of a tiny house campus will serve as an example of a more effective and efficient use of resources to serve our homeless residents. Street Life Project developed their plan by visiting several tiny house villages operating throughout the United States and compiling the best practices of each of the communities.
These campuses will offer case management, vocational training, onsite microbusiness opportunities, job placement, rehab placement and permanent housing navigation. Partner agencies will also be providing physical and mental health services. Street Life Project will demonstrate how tiny home campuses compare with Riverside County's existing emergency and bridge housing services. The campuses will complement existing housing first programs, with the potential of saving millions in tax dollars.
Street Life Project: www.streetlifeproject.com
California Enterprise Development Authority
CEDA 501(c)(3) Revenue Bond Financing
501(c)(3) revenue bond financing facilitates land and building acquisition, building construction, and refinancing of prior debt (for eligible capital projects). Benefits of this type of financing include below market interest rates, long-term financing, and it is available statewide without limitations to specific areas or communities.
A 501(c)(3) revenue bond is preferred over a conventional loan because the interest is tax exempt and therefore the interest rate is significantly lower than bank financing. Over a long period of time, this can mean substantial savings to the borrower, depending on the amount financed, and reduces total financing costs so more capital can be invested back into the organization’s operations.
The EIFD provides broad flexibility in what it can fund. No public vote is required to establish an authority, and though a 55 percent vote is required to issue bonds, other financing alternatives exist. Unlike former redevelopment, this tool imposes no geographic limitations on where it can be used, and no blight findings are required. An EIFD can be used on a single street, in a neighborhood or throughout an entire city. It can also cross jurisdictional boundaries and involve multiple cities and a county. While an individual city can form an EIFD without participation from other local governments, the flexibility of this tool and the enhanced financial capacity created by partnerships will likely generate creative discussions between local agencies on how the tool can be used to fund common priorities.
Infrastructure and Revitalization Financing Districts
IRFDs were authorized under AB 229, the primary purpose of which was to give local governments tools and resources to fund public infrastructure, affordable housing, economic development and job creation, and environmental protection and remediation. To that end, IRFDs are authorized to undertake and finance specified activities to meet those goals. IRFDs are governed by the legislative body of the sponsoring local agency. EIFDs are governed by a separate entity known as the Public Finance Authority. Members of the Public Finance Authority are chosen by the sponsoring agency and are to include three members of the legislative body as well as two members of the public. The governing entity oversees the preparation of the infrastructure finance plan, which must specify the boundaries of the district, the projects to be financed, tax revenues to be captured over time, a plan for debt financing, a fiscal analysis, and the district term. The term of an EIFD is 45 years from voter approval of bond issuance. To adopt the plan, there must be a public hearing, a vote of the governing body, and concurring resolutions by the legislative bodies of affected taxing entities. In addition, plans of IRFDs are subject to a public vote of two-thirds of affected voters or landowners. Both structures require a public vote to issue debt. IRFD require ⅔ voter approval to issue debt. EIFDs require the support of 55% of voters or landowners
in order to issue debt.
IRFD and EIFD Distinctions
Since the laws enabling IRFDs and EIFDs were both adapted from Infrastructure Financing District law, IRFDs share many common elements with EIFDs. However, there are some key differences between IRFDs and EIFDs. Mainly, EIFDs have the advantage of not requiring a vote of district residents or property owners to form the district. The key financing benefits of the EIFD are that the district can receive revenue for up to 45 years and the list of tax revenues that can be allocated to the district is broad.
Riverside County is currently using an EIFD for the Salton Sea Restoration project and
(AB-229 Local government: infrastructure and revitalization financing districts: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201320140AB229 )
The Community Revitalization and Investment Authorities
CRIAs law (beginning with Section 62000 of Gov’t. Code) authorizes tax increment to be used in combination with the powers of former redevelopment agencies. A CRIA focuses on assisting with the revitalization of poorer neighborhoods and former military bases. While similar to redevelopment, a CRIA is more streamlined. Accountability measures are included to ensure that the use of the CRIA remains consistent with community priorities, and a 25 percent set-aside is included for affordable housing. Although an initial protest opportunity exists, no public vote is required to establish an authority, and bonds and other debt can be issued after a CRIA is established.