There is much debate surrounding the issue of affordable housing in Orange County. However, amidst the discussion, there are those who take action and actually build these affordable housing units.
One such project is Legacy Square, located in downtown Santa Ana. Developed by National CORE, this four-story apartment complex is the first of five low-income rental projects that will add 376 units of affordable housing to Orange County by the end of 2024. The grand opening for the Santa Ana project, which includes 92 new affordable rental residences, is scheduled for Wednesday, June 21. Among these residences, 33 units are dedicated to supporting the homeless.
Legacy Square, situated at the intersection of Santa Ana Boulevard and French Street, will be followed by similar endeavors from National CORE, including partnerships with local Episcopal churches to provide low-income senior housing.
Another example is the collaboration between National CORE and the Church of the Blessed Sacrament, resulting in 64 units at Santa Angelina in Placentia. This project includes 21 units designated for homeless individuals and is expected to open by the end of this year.
In Buena Park, National CORE, in partnership with St. Joseph’s Church, is constructing Orchard View Gardens, which will offer 65 units, including eight for the homeless. Groundbreaking is set for July, with completion anticipated by fall 2024.
Additionally, National CORE is developing Mountain View, a housing project in Lake Forest that will provide 70 units for low-income families, including eight units for the homeless. This project is near completion, with an opening planned for fall 2023. Furthermore, Anaheim will benefit from Miraflores, another National CORE development consisting of 85 units for low-income families and eight units for the homeless. This project is projected to open in mid-2024.
National CORE’s commitment to affordable housing extends beyond these five projects. Currently, the organization owns 9,684 units at 103 developments located in California, Texas, and Florida. This makes National CORE the tenth largest nonprofit portfolio of affordable housing in the nation. In 2021, National CORE ranked as the third-largest nonprofit developer, starting 760 affordable units and completing 101.
Michael Ruane, the President of National CORE, believes that projects like Legacy Square help build momentum for all affordable housing initiatives. As the public witnesses more high-quality projects, resistance towards low-income housing diminishes. Ruane expresses, “These 300 units will help get the next 1,000 built.”
Rent Burden
While these five projects represent a small fraction of Orange County’s rental supply, it is vital to acknowledge the challenges faced by low-income renters. To qualify for Legacy Square, a two-person household cannot exceed an annual income of $65,000, which accounts for 60% of the area’s typical earnings.
Census statistics indicate that a significant portion of low-income renters struggle with housing costs. In Orange County, 95% of the 141,000 renting households earning less than $50,000 per year experience housing cost burdens. In contrast, only 38% of the 304,000 renters making above $50,000 face similar burdens.
These statistics are reflective of the statewide trend as well. Throughout California, 90% of renters earning less than $50,000 are burdened by housing costs, compared to 33% of higher-income renters. Nationally, 79% of renters earning less than $50,000 experience housing cost burdens, while the statistic drops to 20% for those earning more.
Ruane emphasizes that low-income housing is not limited to providing shelter for the homeless but is meant to aid individuals who have regular incomes. He states, “These projects are for workers. It’s not a shelter. These are people who have incomes.”
Tough Challenges
The development of Legacy Square in Santa Ana posed significant challenges. Acquiring land for development is notoriously difficult due to competition with for-profit developers. National CORE overcame this obstacle by partnering with the Santa Ana Methodist Church, utilizing the church’s under-utilized property for the project. The developer rents the land from the church.
Government assistance is often necessary in these projects. Legacy Square’s financial strategy involved a $25 million grant from the state government’s Department of Housing and Community Development and Strategic Growth Council. $10 million of this grant was allocated to local community improvements, including the development of a small park and transit upgrades. Additionally, Legacy Square benefits from its proximity to Santa Ana’s emerging light-rail service.
Filling the units at Legacy Square presents its own set of challenges. While there is high demand for these affordable rentals, National CORE and its partners must meticulously verify the financial qualifications of potential tenants who are selected through a lottery system. Despite these challenges, Ruane is determined to continue their efforts, stating, “We are not done…there’s more to come.”
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
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