Item 23 - Third Amendment to the Joseph House Loan Agreement and Affordable Housing Covena_20240530010439363

Home Browse Search

EXHIBIT 1 Program Manager on a regular basis and will make adjustments on spending as necessary. We utilize a fund accounting system designed specifically for non-profit agencies. We use a cash -basis accounting system. Our CFO prepares the following reports on a monthly basis: balance sheet, profit and Loss statement, general ledger, grant general ledgers, a functional expense report, and other reports as needed and required. A Certified Public Accountant who is a member of the Board of Directors is responsible for reviewing all financial statements on a monthly basis, presenting the organization's financial status at monthly Board meetings, securing Board approval of financials and preparing the annual tax returns. Keys to Organizational Success • Build and leverage strong, active board of directors. • Only engage in projects and services that support identified primary strategic programs. • Continue to design and implement strict financial controls and accountability. • Align programs and services to national best practices to ensure effective service delivery, better housing outcomes and increased cost effectiveness. Market Analysis Orange County Housing Challenges According to the Orange County Community Indicators Report (2024), the following present key indicators of homelessness and housing stability challenges for Orange County residents: RENTAL AFFORDABILITY The hourly wage needed to afford a one -bedroom apartment in Orange County increased from $36.63 per hour ($76,190 per year) in 2022 to $40.63 per hour ($84,510 per year), a significant increase of 10.9 percent. An Orange County minimum wage worker would need to work 105 hours per week to afford a one -bedroom apartment in 2023, compared to 98 hours in 2022. Fair market rent for a one -bedroom apartment in the region increased from $1,905 in 2022 to $2,113 in 2023, an increase of 10.9 percent. Meanwhile, fair market rents for two- and three -bedroom units increased by 9.3 percent and 8.5 percent, respectively. Along with inflation and high consumer costs, these rental increases have offset recent wage increases, therefore increasing financial hardship for many county residents, especially impacting the county's disadvantaged communities. As demand to both live and work in the region remains high, policymakers and developers must focus and strategize on how to best improve the supply of housing — especially affordable workforce housing — in the county. Page 8 of 16