GlobeSt.com: What do you find most unique about the Orchard project?

Kyle Paine: The Orchard is the largest permanent supportive-housing project targeting chronically homeless in Orange County of which we we're aware. The project was made possible through the will and support of the City. A new HAP contract for 100% of the units was executed by the City Housing Authority, something you don't see often.

Another unique aspect is that we partnered with Ecology Center, which guided the design of landscaping and led to additional project amenities include services above and beyond case management and counseling. The community garden in particular and the programming for the garden were created with the help of EC. Additional enhanced services at the property include a commercial-grade kitchen for preparing free or low-cost meals to residents and opportunities for onsite job-skill training in the kitchen. All these unique aspects helped us take a blighted motel being used as substandard housing and convert it into something aesthetically pleasing of which the neighborhood can be proud.

GlobeSt.com: How would you characterize Orange County developers' commitment to affordable-housing development?

Kyle Paine The affordable-housing developers in OC are definitely committed to affordable housing and are passionate about the mission of providing safe, quality, affordable housing to vulnerable populations who need it most. In my experience, market-rate developers like to avoid building affordable units since the market rents are so high in OC that the gap between affordable rents and market rate is extremely wide. Affordable housing development is its own niche, and developers that understand the funding programs (LIHTC, Section 8 vouchers, etc.) tend to focus on affordable housing. I should say the market-rate developers that end up paying in-lieu fees to avoid building affordable housing in their projects do provide a beneficial source of funding for affordable developers.

GlobeSt.com: Would you say that Orange County is more affordable-housing friendly than other regions in Southern California?

Kyle Paine: No, not historically. In general, OC is a difficult area to get affordable-housing project completed, simply due to high land/property values. Additionally, local resident opposition to proposed affordable developments that target lower AMI levels can make entitlement a harder process. With the rising rents over the last few years and a noticeable increase in the number of homeless persons in areas like the County Civic Center in Santa Ana, the lack of affordable housing is more obvious than ever. On top of that, media coverage of the problem has led to more cities feeling motivated to find solutions to get affordable housing constructed in their city, especially housing targeting deeper affordability levels or special-needs populations.

Eric Paine: Supportive housing—building housing that serves the needs of people like the chronically homeless and mentally ill, is hard to get approved. There is a strong degree of NIMBYism because you're dealing with a segment of the population who most people would not want living close to them, but it's hard to ignore the problem when you literally have to step over it to get into their offices, so something had to be done. This was the perfect opportunity to make something happen relatively quickly. The units were there, as well as the kitchens, and they could be occupied relatively quickly. From concept to figuring out financially how to make it work and getting people off the street, it's been relatively quick.

GlobeSt.com: What else should our readers know about this project?

Kyle Paine: First, the project couldn't have been completed without the close collaboration of our partners. Mercy House has been an amazing partner offering its expertise in working with the chronically homeless population. The City has been extremely supportive, from working with us on the entitlements to supporting the project financially through providing soft financing and project-based vouchers. Ecology Center has provided us with amazing vision on how to take a blighted over-parked property and turn it into a lush environment with options for education and promoting sustainability. Second, the Orchard is a model for other cities and counties to follow. You can repurpose blighted buildings to provide high-quality, safe, affordable housing with life enhancing amenities.

SANTA ANA, CA—Creative thinking and smart partnering are helping Community Development Partners convert a blighted, two-story, 77-unit motel here into permanent housing for chronically homeless and mentally ill people living in Santa Anta's Civic Center, president Kyle Paine and CEO Eric Paine tell GlobeSt.com. The Orchard (formerly known as Guest House), the firm's most recent and current development, is a permanent supportive-housing project exclusively for 71 individuals and families that meet these criteria. The $18-million project, located at 2151 E. 1^st St., which unites a diverse group of organizations and service providers, is the City of Santa Ana's largest single investment in housing that addresses the homeless crisis facing much of Orange County.

The rehabilitated development, which will feature 72 units (including one manager's unit), consists of 58 studio and 14 one-bedroom units dispersed throughout five two-story buildings. Upgrades include all-new unit interiors, on-site resident services and property-management offices, an outdoor courtyard, a laundry room, resident computers for Internet access and printing, a large outdoor community garden and learning cente and a guava and orange orchard. Additionally, the current leasing office and one unit from the former motel are being transformed into a 1,200 square-foot commercial kitchen and dining room, which will be operated by a non-profit that will provide meals for residents at little or no cost and create onsite job training opportunities.

The development of the Orchard has created a unique partnership, bringing together a mission-driven private company (CDP), non-profit organizations Mercy House, the Ecology Center and Integrity Housing) and a public entity (the City of Santa Ana). The team will provide permanent supportive housing utilizing a Housing First model for individuals experiencing chronic homelessness. Housing First is a housing approach that assists people experiencing homelessness in finding and maintaining housing as quickly as possible, removing typical barriers to entry. Stable housing is seen as the foundation that allows individuals to pursue other health and independence goals. PSH is a combination of housing and services for people who need support to maintain housing. Services may include case management, substance abuse counseling and assistance with locating necessary community services. Housing First and PSH have been successfully used on a national scale as two complementary tools for ending chronic homelessness.

We spoke exclusively with Kyle Paine and Eric Paine about what makes the Orchard unique and how they view the commitment to affordable housing in Orange County.

GlobeSt.com: What do you find most unique about the Orchard project?

Kyle Paine: The Orchard is the largest permanent supportive-housing project targeting chronically homeless in Orange County of which we we're aware. The project was made possible through the will and support of the City. A new HAP contract for 100% of the units was executed by the City Housing Authority, something you don't see often.

Another unique aspect is that we partnered with Ecology Center, which guided the design of landscaping and led to additional project amenities include services above and beyond case management and counseling. The community garden in particular and the programming for the garden were created with the help of EC. Additional enhanced services at the property include a commercial-grade kitchen for preparing free or low-cost meals to residents and opportunities for onsite job-skill training in the kitchen. All these unique aspects helped us take a blighted motel being used as substandard housing and convert it into something aesthetically pleasing of which the neighborhood can be proud.

GlobeSt.com: How would you characterize Orange County developers' commitment to affordable-housing development?

Kyle Paine The affordable-housing developers in OC are definitely committed to affordable housing and are passionate about the mission of providing safe, quality, affordable housing to vulnerable populations who need it most. In my experience, market-rate developers like to avoid building affordable units since the market rents are so high in OC that the gap between affordable rents and market rate is extremely wide. Affordable housing development is its own niche, and developers that understand the funding programs (LIHTC, Section 8 vouchers, etc.) tend to focus on affordable housing. I should say the market-rate developers that end up paying in-lieu fees to avoid building affordable housing in their projects do provide a beneficial source of funding for affordable developers.

GlobeSt.com: Would you say that Orange County is more affordable-housing friendly than other regions in Southern California?

Kyle Paine: No, not historically. In general, OC is a difficult area to get affordable-housing project completed, simply due to high land/property values. Additionally, local resident opposition to proposed affordable developments that target lower AMI levels can make entitlement a harder process. With the rising rents over the last few years and a noticeable increase in the number of homeless persons in areas like the County Civic Center in Santa Ana, the lack of affordable housing is more obvious than ever. On top of that, media coverage of the problem has led to more cities feeling motivated to find solutions to get affordable housing constructed in their city, especially housing targeting deeper affordability levels or special-needs populations.

Eric Paine: Supportive housing—building housing that serves the needs of people like the chronically homeless and mentally ill, is hard to get approved. There is a strong degree of NIMBYism because you're dealing with a segment of the population who most people would not want living close to them, but it's hard to ignore the problem when you literally have to step over it to get into their offices, so something had to be done. This was the perfect opportunity to make something happen relatively quickly. The units were there, as well as the kitchens, and they could be occupied relatively quickly. From concept to figuring out financially how to make it work and getting people off the street, it's been relatively quick.

GlobeSt.com: What else should our readers know about this project?

Kyle Paine: First, the project couldn't have been completed without the close collaboration of our partners. Mercy House has been an amazing partner offering its expertise in working with the chronically homeless population. The City has been extremely supportive, from working with us on the entitlements to supporting the project financially through providing soft financing and project-based vouchers. Ecology Center has provided us with amazing vision on how to take a blighted over-parked property and turn it into a lush environment with options for education and promoting sustainability. Second, the Orchard is a model for other cities and counties to follow. You can repurpose blighted buildings to provide high-quality, safe, affordable housing with life enhancing amenities.